29 Nov The 80/20 Rule of Scaling: Cut Complexity, Unlock Growth

Imagine cutting 80% of your processes tomorrow. Would your business collapse—or run better?

For many companies, the surprising answer is that things might actually improve. That’s because when it comes to scaling, not all processes are created equal. In fact, the Pareto principle applies: 20% of your processes often drive 80% of your results. The rest? They’re extra weight—layers of complexity that create drag instead of momentum.

Why Businesses Fall Into the “More Is Better” Trap

As companies grow, the instinct is to add structure. Every decision gets a workflow. Every task gets a checklist. Every new problem introduces a new tool. Leaders believe they’re creating order, but what they’re really building is bureaucracy.

The result? A “lean” startup suddenly feels heavy, bogged down by processes that no longer add value—or never did in the first place.

The 20% That Actually Matters

The key to scaling isn’t adding more processes—it’s identifying and strengthening the critical few that create leverage. These are the workflows that:

• Directly impact revenue and margins–like your sales cycle or billing system.
• Shape customer experience–such as onboarding, support, or fulfillment.
• Prevent major breakdowns–risk management, financial forecasting, or compliance.
• Remove bottlenecks across teams–clear approvals, defined roles, and communication rhythms.

Get these right, and the rest of your business gains speed, clarity, and focus. Neglect them, and no amount of additional “process” will keep the machine running smoothly.

The Hidden Cost of the Wrong 80%

Focusing energy on low-value processes creates friction everywhere. Teams get bogged down in unnecessary steps. Leaders spend more time managing tools than driving strategy. Employees feel like they’re working harder, but output doesn’t improve.

In short: complexity masquerades as progress, while actually stalling growth.

Fractional Leadership: A Smart Step Towards Clarity

One of the most valuable things a fractional COO does is help CEOs identify the critical 20% and strip away the rest. By auditing existing systems and mapping processes against outcomes, fractional leaders uncover where effort actually drives impact—and where it doesn’t.

In practice, that might mean:

• Simplifying a bloated tech stack to eliminate redundancy
• Clarifying decision-making so approvals don’t bottleneck growth
• Redesigning customer onboarding to cut churn and speed up time-to-value
• Building reporting systems that highlight meaningful KPIs, not vanity metrics

When leaders focus on the right 20%, scaling becomes smoother, faster, and far less stressful.

Do the Right Thing(s)

Scaling isn’t about doing everything. It’s about doing the right things—consistently and at scale. The companies that grow strongest aren’t the ones with the most processes. They’re the ones with the clearest ones.

Question for you: What’s one process in your business that created an outsized impact once you fixed it? Are there still gaps in operations? I can help. You can contact me here via my website or email me directly at michael@consultstraza.com.