80-20 Rule

Why Is This Useful?

Originally, the 80-20 rules referred to the observation that 80% of Italy’s wealth belonged to only 20% of the population. The 80-20 rule helps you realize that the majority of results come from a minority of inputs. Knowing this, if…

• 20% of workers contribute 80% of results: Focus on rewarding these employees.
  
• 20% of bugs contribute 80% of crashes: Focus on fixing these bugs first.
  
• 20% of customers contribute 80% of revenue: Focus on satisfying these customers.

The examples go on. The point is to realize that you can often focus your effort on the 20% that makes a difference, instead of the 80% that doesn’t add much.