What is 80/20 Rule about?


The principle was named after Italian economist Vilfredo Pareto, who observed that roughly 80% of the land in Italy was owned by 20% of the population. (1896). A common rule of thumb in business is that “80% of your sales come from 20% of your clients”.

80/20 rule is not just for business or only for certain scenario, it’s applicable to any aspect/sector. It tells much about focus into certain actions, which produce much result in a little time.


The 80/20 rule suggests that a small amount of inputs contributes to a much larger amount of outputs. Using this rule means to minimize time spent in the unproductive 80%. In application, you can’t simply cut everything that doesn’t directly contribute to your bottom line. Some things, however trivial, still need to get done. The purpose of 80/20 is to force you to be more ruthless in cutting time in areas that contribute little. Like cutting off e-mail time to invest more in larger projects kind of a productive scenario.

Basically, 80/20 rule is for effective action and working smarter, not harder. It’s important to make these actions a habit.  The 80/20 rule is about saving your time so you can get more done with less. 20% of your actions create 80% of your results.  When you take effective action, you’re acting in the 20% that produce 80% of your results. Acting ineffectively gets you 20% of your results with 80% of your actions. If 20% of your actions will produce 80% of your results, then consider this formula to build your credibility as an expert.  It could take you 1/4 the time to become an expert in your field if you focus on effective actions.

I recently read an interesting article from BBC, titled The firm that starts work at 9.06 a.m, that says how this firm Pivotal Software cares its employees for productivity by making everybody start work on time and finish on time and not letting anyone to work overtime. Pivotal Software emphasizes efficiency in employees’ limited timework produce more results than what overtime work produce and long timework slow down the brain functionality and reduces productivity. For many people, a successful work/life balance is frustratingly elusive. Monday mornings fill us with dread, as we face increasingly long hours, constant stress, and the struggle to maintain a decent quality of life. Work/life balance is typically seen as a time-management issue, but that’s not it. Working harder in the little time you have won’t help. What’s needed is a change of attitude and approach, where you can stop tearing your hair out, and go home feeling happy, confident and stress-free. In the process, you will become much more productive, relaxed and an asset to your business. WORK LESS, ACHIEVE MORE shows you how. Achieve more by working less is the psychology today. This is all about productivity with less effort.

Leadership and peak performance expert Anthony Robbins has applied the 80/20 rule to the study of success. He states that in almost every circumstance, “80 percent of success is due to psychology—mindset, beliefs, and emotions—and only 20 percent is due to strategy—the specific steps needed to accomplish a result”.

Although skills and strategies are of course essential, the rule suggests that they only form 20 percent of what is necessary to achieve results. Therefore, without the other 80 percent and without the proper psychology in place, strategy will be of very limited use. To become a successful entrepreneur, more than a killer product, a plan, or a market; you need the ability to see opportunities, to be creative, innovative, to overcome fears, and the willingness and persistence to turn ideas in your head into physical reality.

Entrepreneur Chad Mureta quotes “80% of business is the psychology of the business owner and 20% is the skillset. If you have the psychology, you can get the skillset”. He says that this rule made him success who created more than 50 apps and netting more than $500,000 in revenue in just one app.

The Pareto Principle, or more often, the 80:20 principle, suggests that 80% of your sales usually comes from only 20% of your products, services or clients.  It’s the reason a First Class ticket to New York costs £7,000 when an economy class ticket costs only £400 for an example. There are business examples such as 20 percent of employees are responsible for 80 percent of a company’s output or 20 percent of customers are responsible for 80 percent of the revenues (or usually even more disparate ratios). These are not hard rules, not every company will be like this and the ratio won’t be exactly 80/20, but chances are if you look at many key metrics in a business there is definitely a minority creating a majority.


This one is brilliant for time management, analyzing and decision making in general. It can be combined with impact:effort to help us to realize how, actually, all that time we spend trying to make super nice PowerPoints probably falls into the 20% impact for 80% effort category. Basically, the effort is to analyze which actions produce much results and focus on it much to work less and achieve more. The important thing to understand is that in your life there are certain activities you do (your 20 percent) that account for the majority (your 80 percent) of your happiness and outputs.

The 80/20 split is not perfectly accurate. In fact, it’s often anecdotal, sometimes misunderstood and in many cases, it’s difficult to measure at all. But the accuracy of the 80/20 split isn’t important. What is important is the recognition that some activities are more likely to boost your success than others are. The crucial “20%” tasks should be prioritized over the less crucial “80%” ones.

80/20 rule is to become productive from less actions. Work Less Achieve More!

















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