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.
This Week:
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.
~Tony Collins