Definition:

A rule of thumb that states that 80% of outcomes can be attributed to 20% of the causes for a given event. In business, the 80-20 rule is used to help managers identify problems and determine which operating factors are most important and should receive the most attention based on an efficient use of resources. Resources should be allocated to addressing the input factors have the most effect on a company's final results.

Also known as the "Pareto principle", the "principle of factor sparsity" and the "law of the vital few."

Rule:

Simply put, the 80/20 rule states that the relationship between input and output is rarely, ifever, balanced. When applied to serves, it means that approximately 20 percent of your effortsproduce 80 percent of the results. Learning to recognize and then focus on that 20 percent isthe key to making the most effective use of your time.

Procedure:

Take a good look at the people around you. Twenty percent of your colleagues probably give you 80 percent of the support and satisfaction you need. They are your true advocates. Take good care of them. Likewise, you can probably name several friends and family members who would be there for you under any circumstances. Try not to put them on the back burner.Examine your Task. Ask yourself, "What do I really want to do with my life and my time?What 20 percent of my efforts should I be focusing on?"Implementing the 80/20 ruleEven if you're skeptical, follow the 80/20 principles for a few days just to see what happens.You can start by implementing these "20percent" tasks right now:Read less. Identify and read the 20 percent of the study materials you get that is the most valuable.Keep current. Make yourself aware of new information and innovations. [For example: Rick Warren’s Book The Purpose Driven Life: What on Earth am I Here

For?] At the very least, you may be moved to challenge established routines that could be shifting your focus away from your 20 percent.Remember the basics. As you grow in your life’s journey, remember your ethics and values.Let them guide your decision making process, and you're bound to end up focusing on your 20 percent.

Advantages & disadvantages:

Would such arrangements work for your organization? Here are some advantages.

1. For some employees time off is more sought after than financial and health benefits. This is particularly true of people who need to stay home to look after sick children or older relatives.

2. It's well known that some employees take more sick days than others do. Someone even suggested that Pareto's Principle (the 80-20 rule) applies: 80% of sick leave is taken by 20% of the staff! A PTO restores some balance to time off by allowing employees to label their days off as they see fit (if that's how the plan is structured).

3. Employers can lower their contributions to other benefits to account for the drop in productivity that inevitably would occur as employees take more time off with pay.

4. A PTO reflects the ability of employees to be away from the workplace while occasionally being in contact anyway, as happens already quite frequently.

Then there are some disadvantages.

1. If the number of eligible days off is allocated according to length of service, with long term employees receiving a higher number than more recent hires, then more experienced staff will be away from work more than those with less experience. This has implications for productivity.

2. A PTO may exacerbate a situation that is reportedly happening already. When subsidies for prescription drugs are lowered, people tend to fill the prescriptions less frequently, even though their health care providers judge them to be necessary.

3. Further along these lines, with fewer people available to get the work done on a given day, those who are at work have more of the work to do on that day. The stress of doing the work of more than one person contributes to negative health outcomes, i.e. high blood pressure, resulting in prescriptions for medications to help reduce them. So the money that employers save on reduced drug use initially

(the front door) is instead spent on addressing the results of overwork (the back door).

4. Employees who are ambitious and eager to prove themselves will probably make less use of PTOs than others will. There is already a problem in North America with people not taking their full vacation entitlement; PTOs will only make it worse.

5. And let's face it, PTOs will put pressure on women to take time off more than on men, because of women's traditional care giving role.