The 70:20:10 Model – BusinessBalls.com (2024)

What is the 70:20:10 Model?

The 70:20:10 model is a simple formula, created in the 1980s by leadership researchers Morgan McCall, Michael M. Lombardo and Robert A. Eichinger, and is commonly used within the learning and development sector to describe the sources of successful managers' educational experiences.

  • 70:20:10 is the ratio of knowledge obtained from three sources:
  1. Job-related experiences
  2. Interactions with others
  3. Formal education events

These are illustrated in the chart below.

The 70:20:10 Model – BusinessBalls.com (1)

70:20:10 often forms the basis of organisational development programmes, and should also be at the forefront of managers' minds when planning training or educational activities. It goes against the typical 'learning' approach to development (i.e. the '10'), which has fallen out of fashion in many employers in recent years.

Below we will outline a comparison of some traits of each approach, as cited by proponents of 70:20:10.

Learning Approach

  • Focuses on learning approaches to tackle skill deficits
  • A response to analyses of learning needs
  • Delivers formal learning plans for specific solutions
  • Focuses on theoretical knowledge, written content, and learning goals
  • Often facilitated through formal "classroom" situations
  • Learning is often entirely separated from work

70:20:10 Approach

  • A blended approach, designed to tackle performance problems within the organisation
  • Designed as a continual process of organisational performance enhancement
  • Focuses on performance goals and objectives, and can be regularly updated using feedback
  • Learning is based on practical knowledge
  • Programmes are based on employees and their needs
  • Learning and working are ongoing and integrated

Each individual's learning and development are dependent on innumerable different factors. However, 70:20:10 is growing in traction within organisations across the globe and is a useful guideline during the formation of development programmes.

Implications of the 70:20:10 Model

70:20:10 clearly emphasises the importance of practical learning and job-related experiences when planning individual development in a professional sphere, and therefore this on-the-job experience is something which team members are encouraged to be regularly exposed to.

  • By highlighting new opportunities for learning within the workplace, leaders can encourage the continuous development of their team members.

It is a job-related experience that provides opportunities for individuals to make independent decisions, address regular challenges and themes, and work with natural mentors such as bosses and experienced colleagues.

  • Leaders and managers can encourage this by offering their team members new and challenging tasks, and unique problems, and valuing innovation within the workplace.
  • Progress reviews and appraisals can be used to discuss new opportunities with said team members and ensure they are still being challenged and developed by their day-to-day activities.

However, employees can learn from a number of different sources, including from others (the 20%). That can include numerous different activities, including coaching and mentoring programmes, collaborative learning, giving and receiving feedback, group work, project reviews, or just simple social interactions (learning from colleagues/peers).

Proponents of the 70:20:10 model suggest that only 10% of individual development comes from formal programmes, qualifications, workshops and lessons, which can often take many who come from academic backgrounds by surprise.

  • However, it is often the case that school, college and university qualifications can form the skill and knowledge base that individuals build when they move to a new job.

Others offer the counter-argument that formal programmes can often be used to move individuals past sticking points, and offer the opportunity for organisations to design unique learning journeys, specific to the desired skills and capabilities of employees at any individual level.


Designing Development Programmes

In the 70:20:10 model, the following questions should be considered in decreasing order of priority, and individuals should be predominantly exposed to new opportunities for on-the-job training and experience.

  • What opportunities are there for job-related learning? Am I/are they getting the support they need to facilitate development in the role?
  • How many opportunities are there for social interaction? Is there a coaching and mentoring programme set up? Are there chances to collaborate on projects?
  • Are there formal qualifications which will benefit their role and desired capabilities?

See this video from the 70:20:10 Institute for more tips on integrating learning into the workflow:

Implementing a 70:20:10-Based Learning Model Within Your Organisation

When trying to implement a 70:20:10-based learning model within your organisation, senior leaders may need to first enact a culture change. Many companies are still organised around formal learning and specific development programmes, which often can have little bearing on the ability of employees to perform well in their day-to-day tasks and to meet overall performance objectives.

Senior leaders and managers first need to convince executives and managers at all levels to prioritise learning on the job and to embed said learning within day-to-day activities in the form of new challenges and problems.

Please note that a new school of thought suggests that 70:20:10 is outdated in the digital age, as workers are now exposed to many new informal methods of learning through online media.

Next: SMART Goal-Setting Templates

The 70:20:10 Model – BusinessBalls.com (2024)

FAQs

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. 10% is down to formal training like courses, reading and online learning.

What is the 70 20 10 business model? ›

According to this school of thought, individuals acquire 70% of their knowledge through personal experience with challenging tasks, 20% through collaboration with colleagues, and 10% through formal education and reading.

Is the 70:20:10 model outdated? ›

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.

How effective is the 70/20/10 model? ›

The 70-20-10 learning model is considered to be of greatest value as a general guideline for organizations seeking to maximize the effectiveness of their learning, and development programs through other activities and inputs.

What is the 70 20 10 formula? ›

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 explanation? ›

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.

How to apply the 70/20/10 model? ›

70 percent by "Experience," through day-to-day tasks, challenges and practice. 20 percent by "Exposure," through social learning, in person or online. 10 percent by "Education," through formal learning including courses.

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 the alternative to the 70:20:10 model? ›

A Better Model for Learning: 3-to-1

My humble suggestion is that we replace the 70-20-10 model with something I call the 3-to-1 learning model. It's a simple, actionable model: for every one formal learning event, you should design and facilitate three on-the-job application exercises.

Where does the 70/20/10 rule come from? ›

The 70:20:10 model for learning and development (also written as 70-20-10 or 70/20/10) is a learning and development model that suggests a proportional breakdown of how people learn effectively. It is based on a survey conducted in 1996 asking nearly 200 executives to self-report how they believed they learned.

What is the 70 20 10 rule as a manager? ›

The researchers (Morgan McCall, Michael Lombardo and Robert Eichinger) identified the optimal ratio of different types of learning: 70 per cent from job-related experiences. 20 per cent from developmental relationships. 10 per cent from formal coursework and training.

What is the 70 10 10 rule? ›

This principle says for each dollar you earn or are given, you should save 10%, share 10%, invest 10% and spend 70%. A key part of this formula is “paying yourself first” which means the first 30% of your earnings are paid to you, for your benefit … for your retirement, for emergencies, and for sharing with others.

What is the 70 20 10 color rule? ›

Use Three Colors: The 70/20/10 Rule: This rule of three is as easy as choosing one neutral color, one rich color, and one accent color. To make this work, use the lightest color for 70 percent of the room's décor, the second lightest for 20 percent, and the boldest for 10 percent.

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%.

How to implement 70/20/10 learning model? ›

How to get started with the 70:20:10 learning model
  1. Introduce employees to new projects that broaden the scope of their role.
  2. Expand their decision-making authority.
  3. Provide opportunities for employees to manage people and projects.
  4. Include them in more strategic leadership meetings.
Mar 14, 2021

What is the 70 20 10 method of money? ›

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.

How to implement 70/20/10? ›

70 percent by "Experience," through day-to-day tasks, challenges and practice. 20 percent by "Exposure," through social learning, in person or online. 10 percent by "Education," through formal learning including courses.

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