What does the 70 20 10 rule mean? | Inchainge (2024)

The 70 20 10 model

The 70 20 10 model was created in the 1980s by three researchers who worked at the Center for Creative Leadership, in Greensboro, N.C. The three, Morgan McCall, Michael M. Lombardo and Robert A. Eichinger, were researching the key developmental experiences of successful managers.

The ratios 70, 20 and 10 are not set in stone, they merely tell us that most learning takes place on the job as opposed to in a formal learning setting. The model is helpful for organizations who want to yield a bigger benefit from their learning and development initiatives.

70 20 10: experiential learning

The creators of the 70 20 10 learning model claim that employees learn the most from job-related experiences. This is referred to as experiential learning. Employees complete daily tasks, have regular practice and resolve issues. This type of learning is informal and self-directed. Workers learn by doing, and that is how they become more knowledgeable. They can learn from mistakes, they need to overcome challenges, and they are encouraged to ask questions and feedback. As a result, workers refine the skills needed to do their jobs and get ready for future tasks at hand.

70 20 10: social learning

Employees learn from others by interacting with co-workers and managers. This part of the 70 20 10 model is called social learning. When workers complete tasks with others, they learn how to collaborate and solve issues together. They experience what it is like to work on a common goal. Mentoring and coaching are also very much a part of social learning, as are encouragement and feedback.

70 20 10: formal learning

The remaining 10 percent in the 70 20 10 model is called formal learning, and it is probably the most well-known to many people. It is learning delivered in a structured way. In the past this learning was taken care of mainly face-to-face and typically in a classroom-like setting. In recent years online learning has also very much become part of formal learning, supported by web-enabled delivery methods. Formal learning lends itself well for creating baseline knowledge for a wide variety of topics.

What does the 70 20 10 rule mean? | Inchainge (1)

The 70 20 10 model at Inchainge

Learning with the business simulation games created by Inchainge combines experiential, social and formal learning altogether. This creates a complete and powerful learning experience. Below we explain how the different learnings are experienced in our online business simulation games.

The experiential learning part in the 70 20 10 rule is covered by immersing learners in a very lifelike virtual company in need of a turn-around. They become a management team member in the role of a Director or VP for a functional area, like – Finance, Purchasing, Operations, Supply Chain and Sales. It will feel like a first day on a new job for them: they need to take important decisions for their own functional area. They learn by doing and they learn from their mistakes as they go through several sessions and scenarios, in which the consequences of their decisions will become clear, whether good or bad.

The social learning part is included since the learners need to collaborate for the greater good of the team. If they want their virtual companies to thrive, learners will come to realize that first they need a common goal, or a shared strategy. With the strategy in mind, they need to align their decision-making in their own functional areas, so all areas contribute to the company’s success. At the same time learners will have to deal with trade-offs that exist within their own role, but especially across roles. And that again reinforces the need for alignment and collaboration.

Finally, the formal learning part is taken care of by instructor-led interventions or by means of e-learning. This part can be easily blended with the use of our business simulations.

Want to know more?

The 70 20 10 model demonstrates how effective experiential learning is in comparison to standard formal learning. At Inchainge we use these education principles in all of our business simulation games to create a deeper understanding of topics like supply chain management and sustainability.Do you want to learn how to revolutionize your university curriculum or incompany training? Sign up for one of our free webinars!

What does the 70 20 10 rule mean? | Inchainge (2)Now you know

Now you know that the 70 20 10 framework was created to demonstrate what is the most effective source of learning. The ratio of 70 20 10 means that people get 70 percent of their knowledge from experiential learning, or 'learning by doing'. 20 percent of learning is achieved by interacting with co-workers and managers, which is called social learning. The final 10 percent of knowledge is obtained from formal learning in a classroom-like setting.

You might want to learn more about

What does the 70 20 10 rule mean? | Inchainge (3)

Business games

A high-performing value chain needs the collaboration of team members from across the organization. Tearing down silos and creating the right cross-functional mindset, however, can be a serious challenge. So, what do you need in order to achieve success? Ideally, you’d like your team to experiment with different scenarios wherein they learn to overcome various obstacles.

What does the 70 20 10 rule mean? | Inchainge (4)

Experiential learning

Experiential learning is a powerful way of education that fosters numerous benefits. We truly believe that going through an experience, will result in a better and longer lasting understanding. What is experiential learning exactly? And why should it be implemented? In this article, Inchainge discusses everything you need to know about experiential learning.

What does the 70 20 10 rule mean? | Inchainge (5)

Learning cycle

Learning can be defined as the acquisition of abstract concepts that can be applied in real life situations. Experience plays an important role in this learning process.

What does the 70 20 10 rule mean? | Inchainge (2024)

FAQs

What does the 70 20 10 rule mean? | Inchainge? ›

The 70-20-10 budget formula divides your after-tax income into three buckets: 70% for living expenses, 20% for savings and debt, and 10% for additional savings and donations. By allocating your available income into these three distinct categories, you can better manage your money on a daily basis.

What is the 70 20 10 rules? ›

The 70-20-10 budget formula divides your after-tax income into three buckets: 70% for living expenses, 20% for savings and debt, and 10% for additional savings and donations. By allocating your available income into these three distinct categories, you can better manage your money on a daily basis.

What is the 70/20/10 model with examples? ›

With the 70:20:10 model you learn 70% from “on the job” experience and from doing. You learn 20% from others in the way of observing, coaching and mentoring and 10% is down to formal training like courses, reading and online learning. You never forget how to ride a bike!

What is the 70 20 10 strategy? ›

In fact, it states that: 70% of learning happens through on-the-job experience. 20% of learning happens socially through colleagues and friends. And 10% of learning happens via formal training experiences.

What is the 70 20 10 rule of good conversation? ›

Behavior: Ask good questions in use a simple formula of the 70-20-10 rule in conversations: 70 percent listening, 20 percent inquiring with just the right amount of advocacy, and 10% tracking ( summarizing and synthesizing information, and providing possible courses of action).

Is the 70/20/10 rule good? ›

The 70-20-10 rule helps you manage your finances and plan for the future. It is an excellent opportunity to maintain the luxuries you enjoy and still pay the bills, while evening putting some cash aside for a rainy day.

How do you write a 70/20/10 development plan? ›

A 70 20 10 development plan prioritizes on-the-job learning as it accounts for 70% of learning and development. Then mentoring with colleagues and superiors, which accounts for 20%, and finally, formal learning making up the last 10%.

What is 70 20 10 simplified? ›

Based on the principle that: 70 percent of learning comes from experience, experiment and reflection. 20 percent derives from working with others. 10 percent comes from formal interventions and planned learning solutions.

Is 70/20/10 effective? ›

The researchers who made it clear that the ratio isn't fixed, and the numbers are rounded only to make it easy to remember. Plus, not all learning activities have to fit into one of the three categories, and it won't be as effective for all workers. More importantly, the 70-20-10 learning model isn't 'anti-training'.

What does the 70 20 10 principle of learning implies ____? ›

The 70-20-10 rule reveals that individuals tend to learn 70% of their knowledge from challenging experiences and assignments, 20% from developmental relationships, and 10% from coursework and training.

What is the 70 20 10 answer? ›

It's main premise is that people obtain about 70 percent of their knowledge from experiences related to their job (on-the-job), 20 percent from interacting with co-workers and managers (near-the-job), and 10 percent from formal education in a structured ways (off-the-job). 3.

What is the 20 10 rule briefly explain? ›

However, one of the most important benefits of this rule is that you can keep more of your income and save. The 20/10 rule follows the logic that no more than 20% of your annual net income should be spent on consumer debt and no more than 10% of your monthly net income should be used to pay debt repayments.

What is the alternative to 70 20 10? ›

A revamped 50:25:25 professional development model offers a flexible yet effective way to do so. By shifting some of the focus towards coaching and formal training sessions, companies can take advantage of the digital tools available to them while fulfilling employee desires for greater flexibility and inclusivity.

What is the 70 10 20 rule of learning? ›

It holds that individuals obtain 70% of their knowledge from job-related experiences, 20% from interactions with others, and 10% from formal educational events.

What is the 70-20-10 rule social? ›

70% of Facebook posts should be proven content that supports building your brand. 20% should be content from others, such as promoting another's business or sharing interesting articles written by another and tagging. 10% should be call-to-action in nature such as sales, discounts, introduction on new offerings, etc.

What is the golden rule of conversation? ›

Say the right thing, or say nothing.”

What is an example of a 70 20 10 budget? ›

Let's say your income is $5,000 a month after taxes. By this rule, $3,500, 70% of your income, would be for all expenses. Then 20%, or $1,000, is for saving. Last, $500, or 10%, is for giving or debt payoff.

Is the 70/20/10 model still relevant? ›

Despite its rise in popularity and the fact that many people believe it is 70:20:10 is still relevant, many people and organizations point to problems. A big part of the 70 20 10 model criticism has to do with the lack of empirical supporting data and the use of absolute numbers.

Is 50/30/20 or 70/20/10 better? ›

The 70/20/10 Budget

This budget follows the same style as the 50/30/20, but the percentages are adjusted to better fit the average American's financial situation. “70/20/10 suggests a framework of 70% of your income on essentials and discretionary spending, 20% on savings and 10% on paying off your debt.

What is the 70 20 10 testing rule? ›

Senior Marketing Manager-Global… 🌟 Have you heard of the 70:20:10 rule in workplace learning and development? It's a model that suggests 70% of learning happens through on-the-job learning, 20% through social learning, and the remaining 10% through formal education.

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