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The Vital Few: Using 80/20 Principles to Guide Boards and Presidents

Strategic Tools - Week 1

By Rick Aman
on

Efficiency is doing things right; effectiveness is doing the right things. The Pareto Principle teaches us that effectiveness comes from focusing on the small number of things that really make a difference. – Peter Drucker

This article begins a new series on leadership and governance tools. Over the years I have discovered that leaders are often less in need of more information and more in need of clarity. Author Dennis Prager has said, “Clarity over Agreement.”  We live in a time when disruption is constant, and the ability to focus on what matters most has never been more important. Each article in this series will explore a leadership tool that helps CEOs and boards cut through complexity and guide their organizations with greater impact.

The first tool is the Pareto Principle, also known as the 80/20 rule. Simply put, 80 percent of results often come from 20 percent of effort. When applied well, this principle is not just about efficiency, it is about leadership discipline and focus.

I saw this firsthand during a trustee retreat when the agenda included nearly twenty items. At first, the board wanted to move evenly across each one. But when asked which three would most shape the future of the college the point was made. The conversation changed. Instead of twenty competing items all seemingly of the same value, trustees gave their time to the few that truly carried weight. That is the heart of 80/20.

The 80/20 Rule as a Strategic Lens

The Pareto Principle was first observed in economics, but it has proven useful across many fields. A classic example comes from retail: in a typical grocery store, 20 percent of the items account for 80 percent of the value of inventory. The few products that sell the most carry the bulk of the store’s revenue, while the rest, though useful, contribute far less.

The same imbalance shows up everywhere in higher education. A handful of programs enroll the majority of students. A few donors provide most of the funding. And in student success, barriers like childcare or financial aid explain the majority of attrition. These patterns remind leaders that while everything matters, only a few things truly determine outcomes.

For CEOs and boards, the value of the 80/20 lens is not simply in recognizing imbalance, but in asking where leadership attention should rest. The principle brings focus. It reminds leaders that while everything has some importance, only a few things have enduring impact.

Applying 80/20 to Futuring Decisions

Futuring is the practice of looking ahead, recognizing patterns, themes and preparing for what is coming. The difficulty is that the future contains too much information. Technology, demographics, policy shifts, and global change all compete for attention.

At a recent board retreat, I watched a leadership team generate a list of more than thirty possible opportunities for new programs and services. The brainstorming was energetic, but the sheer volume of ideas quickly felt overwhelming. I paused and asked, which three or four of these will matter most in shaping the college over the next three years? The participants grew more focused. Instead of preparing for thirty different futures, the team began concentrating on the vital few. Not surprisingly, retention, completion, and the rise of artificial intelligence rose to the top of the list.

This is where 80/20 is most useful. Not every trend will shape the future equally. Artificial intelligence, demographic shifts, and workforce realignment may account for the majority of disruption facing colleges today. Dozens of other trends exist, but only a few will alter the path of an institution in meaningful ways.

Using 80/20 as a filter allows leaders to avoid paralysis. Futuring is not about reacting to everything, it is about preparing intentionally for the small set of forces that will define tomorrow.

Governance and Leadership through the 80/20 Lens

Boards and presidents both benefit from applying the principle, but they use it differently.

For boards, the challenge is to focus oversight on the handful of issues that determine long-term viability and represent constituents. Mission, financial health, reputation, and leadership succession are part of that 20 percent. The rest, while important, should not consume the majority of board time. I worked with one chair who regularly asked, “Is this one of the vital few?” That single question kept the board anchored on strategy rather than drifting into operations, with a flying analogy – 30,000 feet vs. in the weeds.

For presidents, the challenge is time and attention. A college leader can easily become consumed by the flow of meetings and reports. Yet the true leverage of the presidency lies in vision, culture, and partnerships. These are the few responsibilities that no one else can carry. When I was serving as president, I learned that unless I gave my best hours to those areas, the college would miss opportunities to shape its future. The 80/20 lens gave me permission to release the less vital tasks and invest in what mattered most.

Building a Preferred Future with 80/20 Discipline

Futuring is about defining a preferred future, not predicting the exact future. The Pareto Principle helps leaders move toward that preferred future with discipline.

It reminds boards and CEOs to identify the 20 percent of today’s decisions that will shape most of tomorrow’s outcomes. It guides them to invest in the programs and partnerships with the greatest leverage. It also highlights the 20 percent of risks that, if ignored, could undermine nearly everything else.

When I facilitate retreats for boards and leadership teams, I often ask three questions:

The answers provide clarity. They allow leaders to cut through the clutter of reports and competing priorities and focus on the vital few.

Closing

For boards and CEOs, the 80/20 lens is not just about efficiency, it is about clarity. It frees leaders to focus their limited time and attention on what shapes the preferred future. In an era of disruption, the discipline of the vital few is what allows organizations to move forward with confidence and purpose.

As I launch this series on leadership tools, I begin with 80/20 because it shapes both governance and leadership. It provides a simple, powerful discipline for futuring. By identifying the vital few, leaders position their organizations not only to survive disruption, but to move with confidence toward a preferred future.

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Aman and Associates partners with boards and CEOs to bring clarity to leadership and governance. Through purposeful retreats and leadership training, we help boards move beyond oversight to alignment, vision, and momentum. Using proven futuring and strategy tools, we guide leaders in clarifying organizational identity and charting a preferred path forward. The result: boards and executives equipped to lead with clarity, confidence, and purpose.

Rick Aman, PhD – Aman and Associates rick@rickaman.com | rickaman.com/articles