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Forbes - Business

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The Harsh Realities Of The 80/20 Rule
Paul Perreau · 2026-05-13 · via Forbes - Business
80/20 rule graphic. Pareto principle.

80 percent of results usually come from 20 percent of people.

getty

The 80/20 Rule says that 80 percent of results usually come from 20 percent of people. Early in my management career, I ignored this truth. Instead, I spent my time trying to “save” the bottom 80 percent.

I thought my job as a manager was to “fix” them. Instead, I wasted endless hours and burned myself out. Meanwhile, I unwittingly ignored my Top 20 Percent People, leaving them feeling unseen and unappreciated.

My regional manager finally set me straight. He said, “Paul, you already know who your bottom performers are. Yes, give them some time and direction to course correct, but it has to have a limit. Then you let them deal with the consequences. Your job is to focus on your top performers, the ones who are actually adding value.”

That conversation changed the way I led. I started focusing my energy where it mattered most: on the people who were contributing, growing, and eager to improve. That’s where impact could compound the most.

One of the hardest lessons I had to learn was to stop trying to save everyone. Instead, I had to accept the harsh reality:

Not every part of a business—or every person in it—is worth saving.

That sounds cruel at first. But it’s far more cruel to leave someone in a place where they aren’t thriving and give them false hope that they can figure it out.

Years later, I ran into one of the bottom performers—and she thanked me for letting her go. Turns out our conversation helped her realize she didn’t dislike sales, just the type she had been doing. She had thrived in a different sales role and had even met the love of her life because of it!

Add & Subtract

Years later, as CEO, I repeated the same mistake. I gave senior leaders far too much time to get their act together, even though it was clear they had grown complacent. See, I assumed that because they were experienced, they must still be “80/20 people.”

But the second harsh truth? People aren’t static. High performers can plateau. They can lose their edge. Just because they have been an 80/20 person in one role or phase of their career doesn’t mean they always will be.

When people are no longer willing to grow, they won’t take the company where it needs to go. They have to keep adding skills, knowledge, and drive.

Sometimes leadership means making the tough cut so you can keep investing in the people and pieces that truly add value. That might mean restructuring a division, sunsetting a product line, or cutting a leader who’s no longer aligned.

Painful? Yes. But it’s far more painful to pour resources into a productivity void while starving the people and systems that have momentum.

If you want to be a leader who adds value, you can’t just add; you also have to subtract.

Add value, time, and attention to your 80/20 People. Subtract the energy and resources you’re pouring into the people who don’t want to be saved. Take that energy and double down on the people who are already proving themselves.

In my book The Detour CEO, there’s a deeper discussion about finding your 80/20 People. But you also need to start with yourself: Are you still an 80/20 Person? Are you still producing, or have you plateaued?

Let’s make sure

you are adding and subtracting in the right areas.