The 10-80-10 Principle

by: Michael Jordan

As far as I knew, encountering the Pareto Principle many years ago represented the pinnacle of understanding influence and decision making as a sales professional. I was wrong. 

According to Investopedia, “The Pareto Principle, named after esteemed economist Vilfredo Pareto, specifies that 80% of consequences come from 20% of the causes, proving an unequal relationship between inputs and outputs. This principle serves as a general reminder that the relationship between inputs and outputs is not balanced. The Pareto Principle is also known as the Pareto Rule or the 80/20 Rule.” As an example, top-notch client service and sales models reflect a keen awareness that typically 80% of the revenue is generated by 20% of the clients. The precious asset of time must then be distributed unevenly with clients. If not, you’ll likely risk both deterioration of meaningful service and growth.

The 80/20 rule was my guiding principle as a sales professional until the moment I finished reading Above The Line by then Ohio State Football Head Coach, Urban Meyer. I realized that while the 80/20 rule was a valuable tool, it never lent itself to the idea that you can actually expand the circle of high-quality clients by influencing the 80%. Now a New York Times bestseller, Above The Line gives unparalleled insight into the culture of the 2015 National Championship team. Part of that culture was driven by what Urban Meyer describes as the 10-80-10 Principle. 

Urban explained that 10% of the team is dialed in at all times. They are committed and self-motivated. The top 10% understand the higher cause and will work tirelessly to achieve that goal. They need no motivation. Their positive habits are sticky and their will power has been switched to automatic.  

The middle group is the 80% of your team that is all average. They'll do a good job and are relatively reliable but their habits need reinforcement. Any of the 80% have a chance to join the 10% through training, leadership and sometimes just an understanding of the greater cause. They need to have a selfless commitment to the team. It’s only after they understand the power of gratitude and the greater mission that they join the ranks of the elite. 

Urban Meyer guesses his top 10 circle swelled to about 30% during Ohio State's 2014-2015 national championship season. The key for him was to establish ground rules. Core disciplines that produce positive outcomes for the individual and consequently the team. Not a commitment to some disciplines but ALL disciplines. These disciplines drive action and are rooted in the outcome of the greater good.

The 10% at the bottom are disinterested and at times defiant.  They are not worth spending any meaningful time with and should be delegated accordingly. It would take a 90% majority just to have an impact on the bottom 10%. Do you know anyone like this? Possibly a few people?

Urban Meyer talking to Michael Thomas in 2013 - “it’s up to you. I know you have big dreams. I want to help you fulfill them. But if your habits don’t reflect your dreams and goals, you can either change your habits or change your dreams and goals”

As best I can tell, the 10-80-10 Principle is the actual brainchild of Sunjay Nath. According to Nath, “the Key to implementing the 10-80-10 Principle is to A.C.T. It is through Awareness, Conscious Choice and Time that we are able to shift our behaviors that allow us to achieve our desired results”. 

Personally, I'm top 10 all day. I value my time and ask others to do the same. I need no daily motivation and I understand that my choices directly impact the greater mission. But I wasn't always this way. At different inflection points I’ve needed people in the top 10% to pull me out of the 80%.  

I’ve since applied my understanding of the principle to influence my sales success. By identifying my top 10%, I seek to understand their unique drivers in an effort to “move the needle” so to speak with the average client. 

So how do we actually influence the 80%? How do we get the average teammate, client or maybe even employee to be elite? Urban Meyer has four proven approaches for the 80%:

1.    Mastery and Belief

2.    Harness the Power of 10%

3.    Build Ownership

4.    Positive Peer Pressure

These four approaches probably deserve their own blog post but for the sake of brevity, I’ll table that for now.

I would argue that most of us are not naturally wired to be in the top 10%. Positive habits are really created through hard work, training, repetition and physical triggers over a relevant time domain. In the book Mindset, Carol Dweck explains that "growth-minded" people know how to adapt such core disciplines while “fixed minded” people cannot.

Here’s my challenge to you. Are you working with the right people? Do you have people in your 80% you can save? The question really isn't are you capable as much as it’s can you get others to buy into your greater calling? Do they know why you do what you do? Can you influence behavior?

As Charles Duhigg writes in The Power of Habit: Why We Do What We Do in Life and Business, "change might not be fast and it isn't always easy. But with time and effort, almost any habit can be reshaped".  Working on the 10-80-10 Principle in your professional life is certainly worth the time and effort.

Side note: I have heard of the 10-80-10 Principle being used for Project Management but that probably warrants its own post.