20/80 Principle

80/20 principle

What is the 20/80 principle?.It means nothing but that 80 % of benefits is derived from 20 % of the inputs generating that benefit.It is true in my experience. The 20 and 80 numbers may be just numbers and do not exactly mean the measurement. It is always seen that a small percentage of employees generate maximum income , a small number of customers bring in the maximum revenue and finally a small number of activities you do daily are the most important.This is one area where an outstanding CEO will concentrate.A CEO who is sitting in office from 7 am to 11 pm doing all activities of his company and involving in all the activities is not an outstanding CEO.An outstanding CEO will concentrate on strategic decisions and policy making.He will leave the rest to his subordinates thereby delegating authority effectively.
This is effectively letting go and trusting your subordinates to do a work better than you.

An effective CEO sees his family and children more than his 12 hour a day on the job counterpart .He lives a happier and well balanced life.