The Pareto’s Rule Will Make Your Business Seamless
The Pareto’s Rule
Organizations benefit from the 80-20 rule
Managing The Pareto’s Rule
The Pareto’s Rule, should serve as a daily reminder to focus 80 percent of your time and energy on the 20 percent of you work that is really important. Don’t just “Work Smart”, work smart on the right things.
In every walk of life (including business) the Pareto’s Rule seems to hold dominance.
So how do you use it in your business?
Who are your core 20% of customers?
They should definitely deserve more than 20% of your time. What about using the formula - your top 20% of customers deserve 40% of your time? When it comes to marketing 40% of your budget should be allocated to the top 20%.
What about the time spent discussing and debating issues?
Most meetings and time spent focus on the 80% that is not important. Again analyse your time spent on each issue.
If it is not that important to you or your business then halve the time you spend on in it. Double the time you spend on critical issues which will have long term affects on your business.
What about staff?
20% of your staff will bring in 80% of your business.
80% of your profits will come from 20% of your products. Spend more time and resources to developing your main products and less on trivial products that will never generate any useful income.
Therefore
Don’t try to do more. Just do more of the right thing.
Written by Spike on April 10th, 2008 with
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