The 80/20 Rule
Introduction
Not all efforts create equal results. Some actions bring massive impact, while others barely move the needle.
This truth is captured by the 80/20 Rule, also known as the Pareto Principle.
It states: 80% of results come from 20% of actions.
Understanding the Rule
The rule doesn’t always mean exactly 80/20—it could be 70/30 or 90/10.
The real insight is this: a small percentage of causes often drive the majority of outcomes.
Examples:
- In business: 20% of customers generate 80% of revenue.
- In academics: 20% of topics often cover 80% of exam questions.
- In daily life: 20% of habits create 80% of your growth—or your problems.
Why This Matters for Strategy
A strategist knows that time and resources are limited. The 80/20 lens helps identify where to focus energy for maximum return.
Instead of spreading yourself thin, you double down on the activities that matter most.
Everyday Application
- Students: Identify the key chapters or concepts that dominate exam weightage. Focus on them first.
- Professionals: Prioritize the few tasks that drive results instead of drowning in busywork.
- Personal Life: Recognize which relationships or habits bring the most joy and energy—and nurture them.
Activity: Finding Your 20%
Take one area of your life—studies, work, or personal.
👉 List all the activities you do.
👉 Now ask: which 2–3 activities bring the biggest results or happiness?
That’s your 20%. Focus on them, and reduce or delegate the rest.
Conclusion
The 80/20 Rule teaches us that not everything deserves equal attention.
Strategy is about identifying the few things that truly matter—and putting most of your effort there.
✨ Remember: “Being busy is not important. Being effective is.”
In the next lesson, we’ll learn about Scenario Planning—how to prepare for best case, worst case, and most likely outcomes.