What is the 80/20 rule?

Pareto's principle: 80/20 rule

The 80/20 rule is a tool used in project management to prioritize tasks. Commonly known as the Pareto principle, the 80/20 rule states that 80% of outcomes are a result of only 20% of causes. Italian economist Vilfredo Pareto, after his initial observations of the farms in Italy, came to the conclusion that 80% of the land was owned by only 20% of the population. 

In theory, this sounds probable, but in practical terms, the figures are not that strict but rather merely indicative. In some scenarios, the ratio would be 70/30, in others, 60/40, and yet the results wouldn’t always round up to a total of 100%. The main point of the matter is that there exists an imbalance where a minority of causes produce the majority of results.  

Benefits of 80/20 rule 

The 80/20 rule plays a crucial role in helping companies determine tasks on the basis of priority. This method ensures that the focus of the team is maintained on the tasks that generate the most impact. There are benefits of applying the 80/20 rule to the dev teams. Here are the key advantages of the 80/20 rule:

• Enhanced focus on tasks

• Resource optimization

• Better decision-making

Enhanced focus on tasks

With the help of the 80/20 rule, dev teams are better able to navigate through the heaps of tasks that require their attention which improves developer productivity. The product development process becomes streamlined as the dev team is quickly able to deal with urgent bug fixes and other important features of the product. In this manner, the company fortifies its position as a strong model in the competitive job market. Additionally, developers feel a sense of achievement when they are immersed in meaningful tasks that not only produce solid results but also aid in the success of the organization. 

Resource optimization

The successful completion of projects can only be guaranteed when resources are properly allocated. Usually, technical projects suffer from a lack of resources. This can be addressed by using the 80/20 rule, through which dev teams can identify the tasks that yield maximum results and prioritize the expenditure more efficiently, which leads to cost savings in the long run. In this manner, they can channel their efforts into tasks that matter more instead of spreading the resources thinly. 

Better decision-making

Dev teams can harness the 80/20 rule to derive data on the projects and then use these data-driven insights to make informed decisions regarding the projects at hand. Teams can focus on 20% of tasks and yield 80% of the results. This can ensure that developers utilize their time on more important projects leading to efficient completion of deliverables.   

Example of the 80/20 rule 

Not all technical projects produce the same results. Some tasks take too much time and still do not bring in the desired value. The 80/20 rule provides a structured approach to organizing tasks based on priority and offers a strategic guide for decisions. By doing so, dev teams can avoid heavily investing both time and money in projects that offer minimal results.  

For example, almost 80% of the bugs in many software projects are found in 20% of the code. Developers can leverage this information to perform root cause analysis and identify the problematic areas in the code batch. In this manner, the dev team can address areas that require urgent attention through testing and reviewing.  

Criticism

While this priority tool has numerous advantages to offer, the 80/20 rule has also faced criticism toward its approach.     

Lack of precision: The 80/20 rule is merely indicative, the ratios tend to change from project to project. Dev teams should be cautious of relying strictly on single ratios because this could lead to inaccuracies.

Not always actionable: The 80/20 rule can pinpoint balances, but it does not provide any guidance on what steps to take next. 

Risk of complacency: It is vital for organizations to not blindly follow the 80/20 because this can reduce their focus solely on the major 20% of the problems. When developers ignore 80% of the issues, they give way to potential long-term challenges, which invariably lead to an increase in technical debt. 

Overgeneralization: Although the 80/20 rule has been proven quite effective in many areas, it cannot universally fit in every context. There are multiple variables at play in every project, so solely relying on the 80/20 rule can lead to oversimplification of problems. 

Final words

The 80/20 is a useful tool for making informed decisions in technical projects. With the help of the 80/20 rule, project managers can prioritize their tasks to achieve maximum results. In this manner, organizations can channel their efforts and resources more strategically, which will inevitably lead to effective outcomes.