The 100/25 Rule

The 80/20 rule states that “roughly 80% of the effects come from 20% of the causes.” ⁽¹⁾ This rule (the Pareto principle) was named after Italian economist Vilfredo Pareto (1848–1923) who famously observed that approximately 80 percent of the land in Italy was owned by approximately 20 percent of the people. He also noted this phenomenon in agriculture observing that “20% of peapods in his garden contained 80% of the peas.”⁽²⁾

Anecdotally in my consulting practice, my observations corroborate Pareto's. I have observed that, as a maxim, the majority of sales come from a minority of the customers and a majority of the work of an organization is performed by a minority of the workers. Furthermore, a majority of the problems come from a minority of the workers.

The 80/20 rule is, at best, a rule of thumb that seems to generally describe reality as experienced in the tangible world. The rule is based on observations in the physical world (general revelation). This begs the question, does special revelation (Scripture) address this phenomenon?

Biblically, the tangible world is in a state that theologians call fallen. A consequence of this condition is that mankind’s work is impaired. This means that sin is disruptive to mankind’s efforts to work with excellence (to efficiently produce quality products and services). The disruptive reality of sin in the tangible world is due both to the fallen state of man and the resulting curse on the physical world ⁽³⁾. This suggests that the 80/20 pattern is simply a characteristic of the fallen state of mankind and the physical universe.

Speaking of the kingdom of God, Jesus noted a comparable pattern (Matthew 13). In the parable of the sower, there were four soil conditions. Seed was sown into each ⁽⁴⁾. The first condition was hard ground that did not allow the seed to germinate. The next two conditions were, respectively, stony ground and thorns. In the former, the seed germinated but could not develop a sound root system. In the latter, the seed germinated but the ability to receive sunlight was impaired. Neither condition was conducive to producing a crop. The last soil condition was good soil that enabled the seed to germinate and bear a crop.

This parable speaks of conditions in a fallen world and, arguably, intimates that 25 percent of the seed produced 100 percent of the crop—slightly different from Pareto’s principle, but close. Could one infer from this parable a principle, similar to the 80/20 rule—perhaps the 100/25 rule? Could this rule have broad application in life? And could the 100/25 rule be a more biblical way to describe what Pareto observed?

Were it not for the principle of common grace ^(5), the 100/25 rule would be absolute. But common grace allows even rebellious people to obey, on a rudimentary level, some of God's principles and therefore to have a level of productivity. But productivity facilitated by common grace is not as profound as productivity facilitated by special grace (the empowering presence of the Holy Spirit). Special grace enables people to live aligned with the will and ways of God, which is the predicate for fruitfulness.⁽⁶⁾

If you are seeking to live based on a biblical worldview, then principles extracted from Scripture (special revelation), rather than just human observation of the tangible world (general revelation), will be more credible to you. And if you agreed that the parable of the sower is a principle that has broad application and the seed represents the truth of the kingdom of God, ⁽⁷⁾ it suggests that the most productive people will be true disciples of Christ (those in whom the truth of the kingdom of God has germinated and bears a crop).

Here is your business tip. Management must recognize the context for work. Work is performed in a fallen world that will disrupt the organization’s ability to efficiently deliver its value proposition. As a maxim, the minority of the people will produce the majority of the work. Therefore to overcome this maxim, it is essential for management to find the right workers, that is, people who possess a biblical view of work as demonstrated by their actions. Such people will progressively grow and mature in their ability to overcome sin both in themselves and in the physical world. Furthermore, these people will seek to find and fulfill the call of God on their lives in the workplace. In other words, these people will seek to find work that they have C4 to do.⁽⁸⁾ As a maxim, C4 people will produce the results that enable organizations to deliver world-class value to those served.

__________________________________
1 https://en.wikipedia.org/wiki/Pareto_principle
2 Ibid.
3 Genesis 3:17–19
4 Matthew 13:1–9; 18–23
5 http://strategieswork.net/publications/BusinessTips/2012/2012-09.htm
6 Psalms 1
7 Matthew 13:19
8 http://strategieswork.net/publications/BusinessTips/2013/2013-07.htm

_____________________________________________________________

Listen to the teaching titled: