5% Impact Rule
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A key principle for standing out in a company is to work on projects that can meaningfully impact core metrics. Here's how to apply the 5% rule.
Core Concept
- Only work on projects that can move company-level metrics by at least 5%
- Avoid projects that, even if successful, won't meaningfully impact key metrics
- Use this as a filter to decide which projects are worth your time
How to Apply It
- Look at the company's main dashboard/KPIs
- Ask yourself: "If this project succeeds, which metrics will it change?"
- Go through subdivisions and departments to find impactful opportunities
- If a successful project won't move metrics by 5%, reconsider if it's worth doing
Real World Example
- At Twitter post-acquisition:
- Team was assigned to work on project X
- Reviewed company dashboard metrics
- Realized even complete success wouldn't move key metrics significantly
- Pivoted to more impactful projects that could drive meaningful change
Benefits
- Forces focus on high-impact work
- Helps avoid getting stuck on low-value projects
- Makes you more valuable to the company
- Positions you as someone who drives meaningful results
Key Mindset
- Carry yourself like someone who can move company metrics
- This mindset becomes self-fulfilling
- Raises your standards for what projects you take on
- Helps you become the person who delivers significant impact
20:16 - 22:24
Full video: 48:44SP
Shaan Puri
Host of MFM
Shaan Puri is the Chairman and Co-Founder of The Milk Road. He previously worked at Twitch as a Senior Director of Product, Mobile Gaming, and Emerging Markets. He also attended Duke University.