2. Using the 80/20 principle to help you become
more productive
The 80/20 Principle says that the majority of outcomes in life are the result of just a few causes.
If you think about your own life you will recall situations where a relatively small amount of focussed
effort lead to significant outcomes. This presentation will help you understand the 80/20 Principle
and put it to better use in your work and personal life.
This ‘universal law’ was first made famous by Wilfredo Pareto, who in 1906 made the observation
that 80% of Italy’s wealth was held by just 20% of the population. As a result it is often referred to
as the Pareto Principle.
This presentation will help you to understand the significance of the 80/20 Principle and how
to use it to your advantage.
You are free to use this presentation however you wish, providing that it is not altered in any way
and that the credits are not removed.
For further reading on the 80/20 Principle, you make be interested in the book ‘The 80/20 Principle:
The secret of achieving more with less’, by Richard Koch. This book has inspired our presentation and
is available at good bookstores or here.
13. • The 80/20 rule tells us that, in any • For example Isaac Pitman found that 700
population some things are likely to be common words make up two thirds of everyday
much more important than others. language and these account for 80% of
• A good benchmark is that 80% of common speech. Therefore fewer than 1%
outcomes are the result of only 20% of inputs of words are used 80% of the time.
and often from a much smaller proportion • When used well the 80/20 Principle will help
of powerful forces. individuals and groups achieve more with
less effort.
14. Where do you see it in everyday life?
Statistics tell us that: 80% of accidents are caused by
20% of drivers (which is why no-claim policies were introduced)
15. Where do you see it in everyday life?
20% of clothes will be worn 80% of the time
16. Where do you see it in everyday life?
20% of carpet is likely to get 80% of the wear
(which lead to the invention of carpet tiles)
17. Where do you see it in everyday life?
80% of personal telephone calls are to 20%
of the people in an address book
18. 80% of wealth is held by 20% of the population. Interestingly, if all wealth
were distributed evenly, it would take less than 10 years for the 80/20
principle to work its magic and for the wealth to be re-distributed again....
19. Quintile of Population Income
Richest 20% 82.7%
Second 20% 11.7%
Third 20% 2.3%
Fourth 20% 1.4%
Poorest 20% 1.2%
Source: www.wikipedia.com
24. All customers are equally valuable
All phone calls are equally important
25. All customers are equally valuable
All phone calls are equally important
Every opportunity is of equal value to us
26. All customers are equally valuable
All phone calls are equally important
Every opportunity is of equal value to us
All friends should be treated the same
27. Where do you see it in everyday life?
Most of the significant achievements and The chances are that only a few specific days,
value that a person adds is achieved in a weekends or events stand out in your life when
minority of their time. There is a profound you look back.
imbalance between what is created and
the time taken to create it.
28. Time…
It is because we have so
much time that we squander it.
80% of what we achieve is the result of just
20% of our time (and often less than this).
If we only use 20% of our time properly, there can be
no shortage of it!
As an example, think of everything you do every day
that adds no value to your goals and objectives, but
uses lots of time... (making coffee, surfing the internet,
talking to colleagues about the weekend, wondering
what to do next)
29. Time…
The most productive time on a project is usually Productivity on most projects could be doubled
the last 20%, simply because the work has to be by halving the amount of time for their
completed before a deadline. completion.
30. Time…
If we can do anything about this, we should do something radical.
There is no point tinkering around the edges or making use of our
time a little more efficient.
Time management courses implicitly imply that we know what is
and is not good use of our time. The secret is to prioritise the most
important things we do and spend 80% of our time doing these.
Don’t allow things that are important to be at the mercy of things
that are urgent (but not important).
Realise that you can’t do everything, and that your most productive
time is spent thinking, planning and directing.
Eliminate things from your life which take time, effort and
resources for little or no reward.
31. Face time…
• In most businesses, it is apparent that the most • In these meetings, it usually comes down to a
critical and important time is in face to face few minutes where we discuss key directions and
meetings with the customer. strategy. During this time we set expectations,
• These meetings have an overwhelming sell our ideas and gain (or lose) respect.
influence on the whole business • Therefore, it makes sense to focus on what we
(both good and bad). can achieve during these meetings, and spend
a lot of time working out how to do it!
32. do we plan & direct
or
do we let things
happen ?
33. People
Some people are critical to us, others have little influence,
even though we may see them a lot. Understand the difference and
do something about it.
34. 80/20 Learning
sentation,
0 /20 princ iple in this pre
So, if we follow the 8 so far?
learned
what have we exists.
ccept it, or not, this rule
1.Wheth er you like it, a d use it!
e wise to le arn about it an
2.Therefor e, you would b
36. 1 The doctrine of the vital few and trivial many – there are only
a few things that ever produce important results
2 Simple is beautiful, complex is ugly
3 What you see is generally not what you get – there are
subterranean forces at work
4 Most good events happen because of a small minority of highly
productive forces; most bad things happen because of a small
minority of highly destructive forces
5 Most activity, en masse and individually, is wasteful and does not
contribute to desired results! Note that this does not mean leisure
is wasteful but that it should be considered and used well!
38. Make the difficult step of dissociating effort and reward.
Give up guilt.
3 4
Free yourself from obligations imposed by others.
5
Be unconventional and eccentric in your use of time.
Identify the 20% that gives you the 80%
6 Multiply the 20% of your time that gives you the 80%
7
Eliminate or reduce the low value activities.
39. Make the difficult step of dissociating effort and reward.
Give up guilt.
3 4
Free yourself from obligations imposed by others.
5
Be unconventional and eccentric in your use of time.
Identify the 20% that gives you the 80%
6 Multiply the 20% of your time that gives you the 80%
7
Eliminate or reduce the low value activities.
40. Make the difficult step of dissociating effort and reward.
Give up guilt.
3 4
Free yourself from obligations imposed by others.
5
Be unconventional and eccentric in your use of time.
Identify the 20% that gives you the 80%
6 Multiply the 20% of your time that gives you the 80%
7
Eliminate or reduce the low value activities.
41. Make the difficult step of dissociating effort and reward.
Give up guilt.
3 4
Free yourself from obligations imposed by others.
5
Be unconventional and eccentric in your use of time.
Identify the 20% that gives you the 80%
6 Multiply the 20% of your time that gives you the 80%
7
Eliminate or reduce the low value activities.
42. Make the difficult step of dissociating effort and reward.
Give up guilt.
3 4
Free yourself from obligations imposed by others.
5
Be unconventional and eccentric in your use of time.
Identify the 20% that gives you the 80%
6 Multiply the 20% of your time that gives you the 80%
7
Eliminate or reduce the low value activities.
43. Make the difficult step of dissociating effort and reward.
Give up guilt.
3 4
Free yourself from obligations imposed by others.
5
Be unconventional and eccentric in your use of time.
Identify the 20% that gives you the 80%
6 Multiply the 20% of your time that gives you the 80%
7
Eliminate or reduce the low value activities.
44. Make the difficult step of dissociating effort and reward.
Give up guilt.
3 4
Free yourself from obligations imposed by others.
5
Be unconventional and eccentric in your use of time.
Identify the 20% that gives you the 80%
6 Multiply the 20% of your time that gives you the 80%
7
Eliminate or reduce the low value activities.
45.
46. Take time to think about how to get the best results with
the least effort.
Nurture key relationships.
Lean your ladder against the right wall.
Make a list of 3 things to do at the start of each day, then do
these things.
Spend a lot of time at the start of a new project planning,
collaborating and organising the strategy. Ensure that you
understand the outcome before you start the project.
