70-20-10 RULE

The 70-20-10 rule is a popular principle for allocating time and resources, often used in the context of learning and development, and innovation. It suggests that:

• 70% of effort should be focused on core business activities - This includes incremental improvements and enhancements to existing products, services, and processes.

• 20% should be dedicated to projects related to the core business - This involves exploring adjacent opportunities, expanding into new markets, or developing new features that complement existing offerings.

• 10% should be allocated to completely new and unrelated projects - This is where true innovation and disruption happens, exploring uncharted territories and experimenting with novel ideas.

How Google uses the 70-20-10 rule:

Google, under Eric Schmidt's leadership, adopted the 70-20-10 rule to foster innovation within the company. Employees were encouraged to:

• Spend 70% of their time on their core job responsibilities, ensuring the smooth operation of Google's existing products and services.

• Dedicate 20% to projects related to their core work, allowing them to explore new ideas and improvements within their domain.

• Use 10% of their time on projects completely unrelated to their core work, promoting experimentation and breakthrough innovations.

This approach allowed Google to maintain a balance between its core business and innovation initiatives. It empowered employees to explore new ideas and contribute to Google's growth while ensuring that the company's core operations remained strong.

Benefits of the 70-20-10 rule:

• Balances stability and innovation: It allows companies to maintain their core business while fostering a culture of experimentation and innovation.

• Promotes employee engagement: It empowers employees to explore new ideas and contribute to the company's growth beyond their regular duties.

• Encourages risk-taking: It creates a safe space for employees to experiment and pursue innovative ideas without fear of failure.

• Drives continuous improvement: It fosters a culture of learning and development, encouraging employees to acquire new skills and knowledge.

While the 70-20-10 rule is a useful guideline, it's important to remember that it's not a rigid formula. Companies should adapt the ratios based on their specific needs, goals, and industry.