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04/07/2004 - The 20:80 Rule
MCEI Tokyo, Tokyo, Japan
 
The standard rule of thumb is that 20% of your customers account for 80% of your sales and profits
 

Yet the same 20:80 rule also holds in other things as well. In personal performance, for example, the most important 20% of your skills get 80% of your results. What is this most important 20%? It is the skills you are especially good at. It is the things you can do better than other people can. It is what really fascinates you. It is, in short, what makes you you.
  
Yet even though we realize this intellectually, we seldom live our real lives this way. Instead, we end up spending most of our time on daily routine, and we end up putting off the really important things until later. We find wasteful pursuits crowding critical tasks out. Corporate management has the same problem. In meeting after meeting, we spend our time on the 80% that is mundane instead of the 20% that will make a difference. We end up checking and rechecking the same old things instead of breaking new ground.
  
In the Internet economy, this 20:80 rule is moving to a 10:90 rule -- which makes it all the more important that we be consciously aware of and internalize our priorities -- that we focus on the important 10% instead of getting bogged down by the unproductive 90%.
  
Ono Toshihiro
Hiromori

 


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