Most of us have heard of the Pareto Principle known as the 80/20 rule which states that approximately 80% of the effects come from 20% of the causes.
Examples include:
80% of sales come from 20% of sellers
80% of customer complaints come from 20% of customers.
80% of the work is done by 20% of the employees.
……. and so. It has been surprising to see, over time, how accurate this has been when analyzing customer activities.
Another rule that I found accurate is a variation of the Pareto Principle and it is just as powerful. It’s called the 20/60/20 rule. Its application to leadership, time management and generation of results is priceless.
The 20/60/20 rule applies to people and relationships. This could be employees, customers, vendors, a church congregation, PTA … even family and friends.
The rule states that approximately:
20% of people will immediately agree with what you are saying.
20% of people will immediately object to what you are saying.
60% of people can be influenced in one way or another depending on future interactions.
Let’s expand on each of these.
20% positive – This group already has an understanding or point of view that is completely aligned with what they are saying. You don’t have to “sell” them! They already get it. This could be the customer who is ready to buy, the employee who agrees with the new vision, or the family member who has wanted you to change jobs for a long time.
Food to go: Leave this group alone or you could screw something up! Don’t over-communicate with them or spend a lot of time influencing or persuading them … they already have it!
Negative 20% – This group has already decided even before you open your mouth that they are against it. Typical responses from this group are, “I’m too busy for this”, “It will never work”, “It doesn’t make any sense”, “This is a waste of time”.
No matter what you do, you won’t be able to convince this group that whatever you’re doing is a good idea or that it’s a great product / service they need to buy. Do you know someone like that? I bet they are, and I bet they are in every relational group in your life: prospects, employees, neighborhood associations, family, and friends.
Food to go: Ironically, the bottom line here is the same as the positive 20%. Leave this group alone! All your efforts to persuade this group will be in vain. The only result for you will be frustration and wasted effort. Wasted effort that could have been applied to the next group.
The medium, viable 60% – This is where you can make a difference! The sixty percent in the middle can be influenced in one way or another after the initial interaction. It will depend on future communications, the environment and your own individual processing. This is where you want to spend your time.
Identify this group and then spend most of your time with them to find out why they are “on the fence.” Create a safe environment where they can give honest answers to your questions without fear of retaliation. What do they like, dislike? How would you approach it? Incorporate your comments so you can get their participation. In most cases, people don’t expect all of their ideas to be incorporated. They just want to be heard and know that leadership values their views and opinions.
Food to go: With focused attention Y genuine interest In your opinion, you should be able to get the majority of the 60% into the positive category.
Effective leadership, in any organization, implies knowing how to use your time efficiently to generate the best results. Applying the 20/60/20 rule is a great tool for determining where to spend that time and with “who” to make the most impact in your organization.