For most aspects of your business, a majority of your results (good and bad) are driven by a minority of something else:
- 80% of problems can be attributed to 20% of causes.
- 80% of profits come from 20% of customers.
- 80% of complaints come from 20% of customers.
- 80% of profits come from 20% of a CEO’s time.
- 80% of sales come from 20% of products.
- 80% of sales are made by 20% of sales staff.
80/20 thinking helps you focus on the few things – a customer segment, your leadership tasks, your true market advantage – that matters most to the success of your business. The data is there to tell you what you have to do. You just have to look.
List your company’s top major activities and rank them based on impact. Or, run the numbers to find where 80% of your results are coming from. Then create a mini action plan to increase a good result or reduce or eliminate a bad result. If you want, send me your plan by Friday. I’ll send you my thoughts.