The 80/20 Rule says that most of the results in any situation are determined by a small number of causes. Stated another way, the Rule says that about 80 percent of your outcomes will come from about 20 percent of your inputs.

The numbers of “80” and “20” aren't absolute. The important point is that a small proportion of your activity always accounts for a large portion of your productivity.

The Rule has been labeled with a variety of names, like the “Law of the Vital Few.” But most accounts suggest that it was first applied as a business principle about a century ago as “Pareto's Law.” Economist Vilfredo Pareto wrote that a small portion of the resources applied in any situation tends to yield most of the outputs. In other words, he said, it is predictable that similar inputs will yield significantly unbalanced outputs. For example, he said, if a government were to give a number of poor people money to invest in a small business the investors wouldn't all be equally successful. A small group (the 20 percent) would make most of the return on the investment (the 80 percent).

The Rule has been explored more recently in the context of Chaos Theory, which relies on computer modeling to demonstrate that the Universe isn't just hopeless disorder. Part of the idea is that the world operates according to some self-organizing logic, and patterns – like that of the 80/20 Rule -- play out with a predictable nonlinearity.

It isn't necessary, however, to understand why the Rule seems to work. If you look around you'll see numerous applications:
•  In any organization, a few of the leaders may deliver most of the results.
•  If you have many clients, a few of them may produce most of your income.
•  If you offer many products, a few may deliver most of your profits.

The Rule may also hold true in your personal life:
•  Of your many activities, a few may deliver most of the satisfaction.
•  Of all your skills, a few may deliver most of the rewards you receive.
•  Of the many people you know, a few may bring you the most joy.

One implication of the Rule is that it is important to recognize your core competencies, your most significant opportunities, and your greatest passions. Here are more suggestions to consider when applying the 80/20 Rule:

Below is a brief description of three books, as well as links that will allow you to buy the books directly from Amazon.com. For reviews of these and other helpful books, along with Amazon links go to: ClearWays Books and Services. If you make a purchase after entering Amazon in this way, it will contribute to the cost of distributing Bev’s Tips, and be much appreciated.

The 80/20 Principle: The Secret to Success by Achieving More with Less, by Richard Koch, 1998.

Management consultant Richard Koch has written a series of books about the 80/20 Rule. This book briefly describes the evolution of the Rule, from Pareto’s early attempts to describe why the rich get richer. The book’s strength is a broad overview of how to apply the Rule in business, from decision-making and analysis to project management and negotiation.

Koch writes that a “few things are always much more important than most things.” The problem is that “most things always appear more important than the few things that are actually more important.” He advises you to “keep the ‘vital few’ in the forefront of your brain. And keep reviewing whether you are spending more time and effort on the vital few rather than the trivial many.”

Koch's other books on the Rule include The 80/20 Individual, which says that you are most likely to be successful if you start with an understanding of what you do best; and Living the 80/20 Way, which suggests that your life will be most satisfying if you focus on your passions.