Musings of the Sundarman

The 80/20 Principle

Is it really possible to do less and achieve more? We're all aware of the 80/20 principle, that 80% of our results come from 20% of our actions. This is counter-intuitive to most of our conditioning by our families and by society, however.

"Work hard, keep your nose to the grindstone, and you will eventually achieve the result you seek."

"No one ever died from hard work."

"The harder you work, the luckier you get."

"If you don't get the job you like, LIKE the job you get!"

Most of us have heard some version of the above from our parents, elders and mentors. In that case, why is it that CEOS of companies make 400 times what the line worker makes?

Why is it that 20% of a carpet gets the majority of it's wear and tear?

Applied to our personal lives, we cannot argue with the fact that 80% of happiness comes from how we spend about 20% of our time -- with children, grandchildren, spouses, significant others, on vacation, with our pets, etc., not at the "ball and chain" of corporate America.

While these ratios may vary, the 80/20 principle aims to show us the fundamentally unbalanced way that the world works. Originally pointed out by the Italian economist Pareto (the principle is known as Pareto's Law), this principle has been the mainstay of strategic management consultants, and the secret to the success of 1000s of organizations the world over.

It's results may seem like magic, because it defies conventional economic theory. I personally like it because it is also called 'The Law of Least Effort'. Yet, the principle is not an economic theory in itself, but merely an observation of reality.

The 50/50 belief vs. the 80/20 rule:

At an intellectual level, a ration of 50/50 makes sense, in terms of effort put in, to results gained.
"If you put in a good effort, you will get a good result". "If you work hard, you can expect a certain level of reward".

A belief in the 50/50 rule maintains harmony in society and keeps the worker bees buzzing around, looking for honey for the hive. The GDP of a country depends on this maxim of 50/50 being adopted and believed by a large percentage of its population. A clear work/reward equation creates a stable society, within which mediocrity is accepted, and conformity, rewarded.

Unfortunately, this is no longer the world we live in. Merely 'keeping up' will no longer do. Notice the 10s of 1000s of people being laid off by financial institutions in the past 6 months. Many, many of them with children in private schools, large mortgages, teenagers in college, and their retirement at stake. Their story shows that mere competence at something will no longer be rewarded with success in the new era of globalization.

The solution:
I. Do something that comes EASILY to you and that you ENJOY, so that you have a tremendous advantage over others and can rise to the top. Only this type of effort, that does not really seem like WORK, compared to that which others do, can lead to great rewards.

II. Your INPUT must reflect the UNIQUELY HIGH QUALITY that only YOU can create and this UNIQUENESS in idea and solution -- give people much more in USE VALUE compared to the CASH VALUE they give you -- this leads to exponentially increasing rewards.

III. Try to spend more time doing that thing or things that cause you to be 'in the ZONE'. By this, I don't mean zoning out in front of the tube, eating a whole bar of Godiva, or consuming that whole bottle of 2001 Veuve Cliquot. (though these can certainly put some of us in the zone!! ).It is not a matter of optimizing what we are already doing, but a matter of EXAMINING if what we're doing is WHAT WE LOVE & COMES EASILY, WHILE ADDING INCREDIBLE VALUE to others.

IV. The key to becoming a star is to stimulate, manufacture and deploy LAZY INTELLIGENCE. Instead of setting goals that we think will get us respect from others and approval, we should focus on what comes easily and naturally. Amazingly, I observe in this country, that capitalism allows people to become successful and wealthy, just by being themselves.

By expressing themselves COMPLETELY, they occupy a highly profitable, albeit, small niche. This is completely congruent with an information economy, that demands ever-greater specialization from us. When NO-ONE DOES WHAT WE DO, QUITE LIKE WE DO, game over and we have won! Enthusiasm, inveterate curiosity, and continual learning is the key. Yet, none of these three things is work.

V. ALLOW INSIGHTS TO COME. Use a hedonistic philosophy (do what makes you happy) and an unconventional use of time, at least one day a week.

The 80/20 principle is a recipe book for getting out of the rat race and achieving FULFILMENT.

Work WITH the grain of the universe, instead of against it. Rig the odds in your favor, by doing something you love, and that which comes easily, while adding value.

As the Bhagavad Gita says, "Much better do YOUR dharma imperfectly (what you love) than to do SOMEONE ELSE's dharma perfectly."