Introducing the 80/20 Principal
The 80/20 Principle asserts that a minority of causes, inputs or effort usually lead to a majority of the results, outputs or rewards.
Taken literally, this means that 80 percent of what you achieve in your job comes from 20 percent of the time spent.
This implies that:
- 80% of your sales will come from 20% of your products.
- 80% of your time produces 20% of your gain.
- 20% of your time produces 80% of your gain.
- 80% of your problems will come from 20% of the people
- if you focus on the 20% that count rather than the 80% that don’t you will improve 16 times faster!
Read More on the History and Using the 80/20 Principle Here
Go Straight to 80/20 Applications on the Menu Below
We believe so strongly in the 80/20 Principle (AKA Pareto’s Principle) that we commissioned a gold signet ring worn every day as a reminder. The wedge is the 20% and the diamond indicates its value.
Did it work?
80/20 played a very big part in making one of our businesses Australian National Small Business of the Year and appearing 4 years in the Top 100 Fastest Growing Australian Businesses list.
Just image what 80/20 could do for your business!
Drill Down for More
To learn more about the 80/20 Rule in specific situations, click on any of the following links.
For more on Prioritisation in general visit this link
This article was provided by Scott Williams AO FAIDC. It describes the way best practice in many management areas has been brought together in the 12Faces GamePlan System. The Goal is to provide an easy to use and repeatable “flywheel” to improve small business owners’ outcomes. Scott is the Founder of NFP small business support services 12Faces and MentorSME and has a Philanthropic Foundation supporting students in education. Scott’s business Petals Network was National Small Business of the Year and 4 times in the Top 100 Fastest Growing Australian Businesses LinkedIn