Friday, February 19, 2010

the 80/20 rule

In Business School the Pareto Principle, more commonly known as the 80/20 rule, is a basic rule of thumb that you are taught to strategically assume across many different situations in business. 80% of the world’s goods are consumed by 20% percent of the world’s population, 80% of your business will come from 20% of your clients, and 80% of your time should be dedicated to 20% of your tasks. The list goes on and is quite extensive, as somehow the 80/20 rule seems to apply to almost anything in the corporate world.

Interestingly enough, however, the most intriguing application of the 80/20 rule that I’ve ever heard was not presented to me by one of my professors, but instead by a cheesy Janet Jackson movie that I came across while channel surfing one night. While the movie was terrible, as one would expect a Janet Jackson movie to be, it did offer an extremely enlightened version of the theory.

It arises when a character in the movie is discussing his infidelity with his friend and is justifying his affair with the fact that he believes this new woman is everything that his wife is not. To this his friend replies with an ingenious application of the Pareto Principle. He explains to his cheating friend that when in relationships, we can only expect that our partners will fulfill 80% of whatever we perceive to be ideal. Over time, when the missing 20% begins to escalate in importance and wear the relationship down, our perception tends to become skewed.

Then along comes the 20. The 20s, my dear friends, are people we have all met. They step into our lives when we are at the peak of our frustration with our current relationship and offer to us exactly what we’ve been lacking: the missing 20%. In this moment, the 20 radiates with perfection. In utter delusion and a bit of temporary insanity, we begin to regard the 20 as our ideal 100%.

And in this way, many of us make the mistake of leaving more for less. Blinded by the temporary fulfillment, we are unable to see that the 20 is purely just that: only 20% of what we desire. Soon enough you discover that you have forsaken someone who gave you 80% of what you needed for someone who will disappoint you far more than you’ve ever been disappointed in your life.

In business, that’s called a bad investment.

Since watching this movie, I have reflected quite extensively upon this version of the 80/20 rule. While the theory is technically not a correct application of the economic principle, it was surprisingly insightful for a horribly b-list film.

In the case of the 80/20 in relationships, hindsight is definitely 20/20.

5 comments:

Ghina said...

you just gave me a clear answer to something I've been thinking about since forever..thnx

Maya said...

Hayete inti I'm glad that Janet and I were able to help you out ;)

Love you!!
Maya

Hass said...

I think that too many of us believe that the person that we are "destined" to be with is supposed to be 100% compatible with us. I completely agree with the 80/20 rule. I also believe that there are multiple people in the world who are compatible with us but of that group one person is fulfills the 80% role.

Great post! I look forward to reading more :)

~Ballet shoes~ said...

Maya.. where to start...
a spot on article, I’d have to say...
The “80/20” rule explains so much but in so little words...
having experienced it.. and maybe still dealing with it, if not yet in denial, I don't believe it has ever been so clear to me as this morning after I read your article..
I think for once I won't sleep with a tear on my pillow and a heartache but rather with a smile of understanding and a tear to turn the page, once and for all..
“ 20s” are dangerous my ladies far more than our “80s”..
Trust me..

Even though miles away, today, in few of your words, you made me reach “a zone of comfort, acceptance and understanding” that I was nowhere near reaching..

Thank you

Je said...

I might be a bit late on posting my comment, but better late than never.
I'd have to say, I'm quite impressed by that 80/20 rule considering I've only thought of it from a business perspective.
I do agree with you on that and completely relate to what you're saying. Yet, we should never disregard the fact that, in some cases, the 20 ends up growing and giving you the 80 you're looking for - and this would then make you notice that the 80 you had was not really an 80..anyway this is very subjective and can be argued forever.
Overall, nice article..where's the 'like' button? :)