In recent years, organisations have faced unprecedented challenges from various directions — economic uncertainty, technological disruptions, shifting consumer behaviours, and more. For business leaders, the question isn't if they will face change, but rather how they can develop a clear strategy to navigate it and support their teams through turbulent times.

In this series, we will explore four guiding principles for leading change. Today, we begin by examining where leaders should focus their time and energy.

Change is an Essential Part of Business Growth

Whether a business is expanding within its current market or venturing into new territories, one constant remains: successful businesses are always evolving. However, change can be unsettling. Employees may have questions or hesitations, and it is crucial to address these with transparency and clarity. A clear vision, simply communicated, is a critical starting point for any change initiative.

Yet, while it is natural for team members to seek reassurance, leaders must also be adept at distinguishing between temporary hesitance and deeper-rooted resistance. This is where the 20/60/20 Rule comes in.

Understanding the 20/60/20 Rule

The 20/60/20 Rule offers a helpful framework for understanding how different groups within an organisation react to change:

• Top 20%: These are the high performers — those brimming with energy, creativity, and enthusiasm. They are passionate about their work, always ready to go the extra mile, and generally thrive on change and new challenges.
• Middle 60%: This group consists of employees who steadily get on with their jobs without much fuss. They tend to follow the lead of whichever group — positive or negative — commands the most attention from management.
• Bottom 20%: These are the disengaged or lower performers. They are often resistant to change, prone to complaints, and can drag down the morale of those around them.

Unfortunately, many leaders end up spending a disproportionate amount of time on the bottom 20%, trying to manage complaints or coax better performance out of them. This often results in the middle 60% feeling disengaged or even alienated, which can foster a "them vs. us" mentality between employees and management — a common issue highlighted in numerous studies.

Reframe Your Focus for Maximum Impact

To lead change effectively, leaders must shift their focus to the top 20%. By investing time in listening, communicating, coaching, and supporting these high performers, leaders can create a positive ripple effect throughout the organisation. When the middle 60% see the shift in leadership behaviour, they will naturally gravitate towards the high performers, wanting to be part of this new, positive focus. Suddenly, 80% of the organisation is aligned and driving performance forward.

Pace the Change

With this new alignment, change can occur at a faster pace. Some of the bottom 20% may opt to leave the organisation if they find the changes too difficult to adapt to, but many will stay, recognising that the grass isn’t always greener elsewhere. As the "unwritten rules" of the workplace culture evolve, even those who were initially resistant may start to see the benefits of the new direction. The bottom 20% will begin to follow the middle 60% and gradually improve their performance as well. It's important to address poor performance when it crosses the line, but otherwise, avoid getting bogged down by negativity.

The First Principle of Leading Change: Focus on the 20/60/20 Rule

The first principle for leading change is to evaluate the 20/60/20 dynamic within your team, department, or business. Concentrate on those who can help to foster a positive change and demonstrate the desired behaviours. By doing so, you will create a culture that motivates and engages the majority of your workforce.

To Read More

To dive deeper into the 20/60/20 Rule and how to implement it, click here for your free download.

Next Week: The Change Curve

Stay tuned for next week’s article, where we will explore the "change curve" and how even the most optimistic top 20% can experience the highs and lows of adapting to change.

Discover More on Leading Change

Leading Change is a core theme of our LEAD™ program, where we guide business leaders on how to drive high performance and navigate challenges effectively. To learn more about the program, please contact us here.

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