The law of the vital few, known more formally as the Pareto Principle, helps people focus on the things that make the biggest difference. It is also known as the 80/20 rule. Here are some examples of this rule:

1. Eighty percent of your revenue comes from 20 percent of your customers.
2. Eighty percent of your sales come from 20 percent of your products.
3. Eighty percent of your sales are made by 20 percent of your sales staff.
4. Eighty percent of your employee turnover comes from 20 percent of your departments.

These are always approximations, of course, but the important point is the principle generally holds true.

Here is an example from Larry's experience:

Here is one more example:

You will achieve more impressive results faster if you focus your efforts—and the efforts of your team members—on the 20. However, to do that, you must first be clear about your goals and the results you are trying to achieve—your definition of success. Only then can you identify the vital few activities that will contribute the most to your results.

Different goals will produce different answers to the question, “What is the 20?” Often, like knocking on more doors, it is not that complicated. But you must first establish clear goals.

Then, you must relentlessly ask the next question, “Are we working on the 20?” You cannot spend all your time on the 20. But it is so easy to get out of focus and wind up spending time on the easy and the apparently urgent rather than on the vital few activities that make the biggest difference. You wind up working really hard, but on the wrong things.

Nobody can get everything done these days. Working on the 20 ensures that the things you spend time on are more important than the things you do not work on.