Vadim Kotelnikov, founder of 1000ventures - personal logo

Vadim Kotelnikov

80/20 Principle

How to achieve more with less


Success Secrets

Apply 80/20 Rule

80/20 Analysis






The 80/20 Principle asserts that there is an inbuilt imbalance between inputs and outputs, causes and consequences, and effort and result. A minority of causes, inputs or effort usually lead to a majority of the result, outputs or rewards. A few things are important; most are not.




"If we did realize the difference between the vital few and the trivial many in all aspects of our lives, and if we did something about it, we could multiply anything that we valued."
~ Richard Koch, the author of The 80/20 Principle


80/20 Principle of the Firm

Top 10 Business Uses

Higher Profits








Two Ways to Use the 80/20 Principle

80/20 Analysis: precise; quantitative; requires investigation; provides facts  >>>

80/20 Thinking: fuzzy; qualitative; requires thought; provides insight

How To Get More from Less

Main Lessons

80% of your resources are producing only 20% of value this ratio always creates arbitrage opportunities for genuine entrepreneurs and innovators. It helps also evaluate ideas quickly.

Focus on exceptional productivity, rather than raise average efforts. Make the most of your creativity peaks and your time.

Only do things you are best at doing. Delegate or outsource the rest. Exercise control with the least possible effort.



10 Golden Rules for Successful Carriers

Identify where 20% of efforts gives 80% of returns... More

Top 10 Business Uses of the 80/20 Principle


Unless you have used the 80/20 Principle to look carefully at the different chunks of your business and to redirect your strategy, it is almost inevitable that you are doing too many things for too many people. The principle is of enormous value in identifying the next leaps forward for your business... More

80/20 Thinking

80/20 Thinking, applied to your daily life, can help you change behavior and to concentrate on the most important 20%.

Action resulting from 80/20 Thinking should lead you to achieve much more with much less. To engage in 80/20 Thinking, you must constantly ask yourself: what is the 20% that is leading to 80%? Never assume that you automatically know what the answer is, but take some time to think creatively about it. "For every ounce of insight generated quantitatively, there must be many pounds of insight arrived at intuitively and impressionistically," says Richard Koch.

Achieving Progress by Applying 80/20 Principle

80/20 Principle is inherently optimistic because it reveals a state of affairs that is seriously below what it should be and shows the direction towards a better state. To achieve progress and multiply your output, you must give power to the 20% of resources that really matter in terms of achievement, and get the remaining 80% up to a reasonable level. "Progress takes you to a new and much higher level. But, even at this level, there will still typically be an 80/20 distribution of outputs/inputs. So you can progress again to a much higher level."

Simple is Beautiful

To succeed in managing change and transforming your organization or business by applying the 80/20 Theory of the Firm, you need to demonstrate that simple is beautiful and why. Unless you understand this, you will never be willing to give up underperforming 80% of your current business and overheads... More

80/20 Analysis

80/20 Analysis examines the relationships between two sets of comparable data and can be used to change the relationships it describes... More

80/20 Principle and Innovation

Innovation is absolutely critical to future competitive advantage. With creative use of the 80/20 Principle innovation can be both easier and more effective if you consider the following ideas... More


Don't apply 80/20 analysis and strategies in a linear way. "Like any simple and effective tool, 80/20 Analysis can be misunderstood, misapplied and, instead of being the means to an unusual insight, serve as the justification for conventional thuggery. 80/20 Analysis, applied inappropriately and in linear way, can also lead to the innocent astray you need constantly to be vigilant against false logic".