“Should you find yourself in a chronically leaking boat, energy devoted to changing vessels is likely to be more productive than energy devoted to patching leaks.” – Warren Buffett
On my last share, I discussed the 80/15/5 principle from the standpoint of 80% of people being the “just enoughers”, 15% hitting “just above bar”, and the top 5% being the pioneers of growth and the world changers! If you’ve yet to read it, I encourage you to take a few minutes to check it out here before diving into this new content.
I’ll admit, this post was a lot to come together as it hits very personal to my early years of development, and also reflects on recent mistakes I know I have made in my growth journey. Let’s go!
The largest group of the earth’s population, roughly 80%, are those who do “just enough” to get by in the day-to-day. They follow the path of least resistance, maintain their comfort zones, and rarely step out of them. Ironically, as leaders, the 80% grouping takes up the bulk of our time, energy and resources! Leaving just enough energy left(maybe) for those that truly deep down want to get better.
What if we flipped the ratio around? What if we took 80% of our time, energy, and resources and poured that into the 5% of people that WANT more? The small group of world changers that are right there, doing their best day in and day out. Yet we are so busy putting out fires and catering to the 80%, that we fail to have any energy left for the others. We think that they are all set in their journey and where they are in life, they don’t need any extra attention or efforts from us, so we let them run on their own!
Here is what we miss. The 5% group is rarely going to ask for help and guidance. They are intrinsically motivated. They want it. They are constantly on the look for growth and opportunity. But over time, if they see they are not being acknowledged, and you are constantly catering to the lowest common denominators around you, they will look for a new mission to apply their energy, value, and drive to. To drive my point deeper, speaking to my fellow parents, this same principle applies to our children.
To get a bit vulnerable here. When I was growing up, I was a pretty good kid. I would spend my time fishing, bowling, playing baseball, riding my bike all over town, you name it, just to stay out of trouble. We lived in a bad neighborhood on the north end of Flint. So the thing to do was find trouble to get in to. I didn’t want to go down that road. My siblings on the other hand, were the queens of mischief. Numerous times, they would be getting dropped off at home from a police cruiser, or by the school officers for getting into some kind of trouble. Here is the kicker… I never saw my dad or mom discipline them. But yet there were numerous occasions where for minimal things I might have screwed up on, or talked back disrespectfully, my dad would spank me to oblivion! As time went on, I started working early and moved out of my parents home when I was 17 years old. I told myself, I’ll never go back there!
How often are we guilty of that with our problem team members? Little do we realize, inside they are just waiting for the day when they will eventually leave for a different environment. One where they can shine!
This principle is near and dear to my leadership. I am a recovering people pleaser! I spent way too much time, energy, and resources pouring into the wrong individuals that deep down inside were toxic, hardhearted, and truly no matter what I did for them, they were never going to grow. The second part of the reflection I have there is I kept them around for far too long thinking that over time I could change them into something different. Meanwhile, I had other great people all around me that were ignored because of my efforts into the “louder” and higher maintenance majority.
I want to drive this powerful point and principle and leadership investment home.. This ideology can transform the way we lead and nurture our teams!
The 80% Investment – Focus on Your Rock Stars: These are your top notch team members that want more out of life and to grow. These are the ones who consistently exceed expectations and inspire others. Invest your time, energy, and resources in their growth and development. Their success propels the entire team forward.
The 15% Investment – Support the Middle Ground: Your mid-level performers have potential waiting to be unlocked. You just have to work on them. But don’t mistake them for the 5 percenters. You need to provide guidance, coaching, and show them the opportunities for growth. Work to elevate them to join the ranks of your core stars!
The 5% Investment – Address the Strugglers: It’s vital for us as leaders to support everyone under our charge, but don’t spend disproportionate time on the average, lowest performers. Identify their needs, offer them support, but remember that focusing too much here can hinder progress for the overall mission.
When you invest the majority of your time and resources into your top performers, you’re essentially putting your efforts where they will yield the greatest returns. Top performers are the backbone of any organization, consistently delivering excellent results and setting high standards for the team. By nurturing and supporting them, you can help them reach even greater heights, which can have a significantly positive impact on your organization’s overall performance.
By focusing on your top performers, you send a clear message to your team that excellence is not only recognized but also rewarded. This creates a culture of excellence, healthy competition, and motivation, where team members strive to be among the top performers. In such an environment, mediocrity is less likely to thrive, and everyone is encouraged to constantly improve and excel in their roles.
The 15% of your resources allocated to promising individuals is a strategic investment in the future of your organization. These individuals may not be top performers YET, but they have demonstrated potential and a willingness to learn and grow. By providing them with mentorship, training, and opportunities, you can help them evolve into top performers over time, further strengthening your team.
The 5% allocation for average or underperforming team members may seem minimal, but it’s essential for maintaining a balanced approach to team management. Ignoring underperformance can lead to a decline in team morale and overall productivity. By addressing these issues promptly and constructively, you can either help these individuals improve or make more informed decisions about their future within the organization.
Effectively managing your time is crucial for any leader. By following this 80/15/5 principle, you streamline your efforts, allowing you to focus on what truly matters. This approach prevents the common mistake of spreading yourself too thin across all team members, which can lead to burnout and reduced effectiveness as a manager.
Remember this – Not all team members are the same, and this principle acknowledges the fact. Leading is not a “one-size-fits-all”.
This powerful strategy emphasizes the importance of prioritizing your top performers, developing potential stars, and addressing underperformance efficiently. By allocating your time and resources strategically, you can create a high-performance culture that drives your organization toward greater success. While it can (and most likely will) require some adjustment in your leadership style, the long-term benefits far outweigh the initial challenges. So, consider implementing this principle in your leadership approach, and watch as your team’s performance skyrockets to new levels. Be mindful of those under your charge and keep track of metrics to show truly which group your people belong to. The goal should be that you are creating more rock stars and world changers over time! As you create this culture, eventually your team will consist of 80% world changers and pioneers of growth, 15% of people that want to get better but are a work in progress, and 5% that you should consider promoting to your competition! And when that happens, watch out!