80/20 RULE

The 80/20 rule asserts that 80% of outcomes (or outputs) result from 20% of all causes (or inputs). When applying this to business, the goal of the 80/20 rule is to identify the inputs that are potentially the most productive and make them the priority.

A majority of results tend to come from the minority of causes. This applies to multiple facets of business.

• Employees
• Personal actions
• Customers
• Products & services

More Productive Tasks = Greater Output

20% EFFORT = 80% RESULTS

Example

• 20% of your CUSTOMERS create 80% of your REVENUE
• 20% of EMPLOYEES produce 80% of the RESULTS
• 20% of MARKETING represents 80% of OUTCOME

80% EFFORT = 20% RESULTS

80% of the PRODUCT built in 20% of the TIME

(keep in mind, the 20% of fine tuning can take the most work)