80/20 = Pareto's Principle
Most of us have heard of the "80:20 Rule and it is evident in quality management and customer service. Like me, you've probably heard "80% of sales come from 20% of customers" or 20% of employees produce 80% of all absences." and the list goes on and on (see list below). How did this philosophy come to be?
Vilfredo Pareto observed in 1906 that 80% of the land in Italy was owned by 20% of the population and went on to develop a principle that even explained that 20% of his pea pods held 80% of the peas. Joseph Juran is noted for applying this to the business world. To understand the math behind Pareto's Principle, check out wikipedia Pareto Principle
To get a general understanding of how it may apply to your own business and life think about it this way:
80% of the objectives are achieved with 20% of the means.
In layman's language this means that to achieve 80% of your business goals will require 20% of your resources (time, staff, money). Furthermore, this means that perfection (more than 80%) is very expensive. As a manager or owner, identifying and focusing on the vital 20 percent that matters in terms of cost or occurrences will lead to better time management, delegation and results. With 2010's second half upon us, take a look at your unfinished goals for this year and analyze which are doable with the current resources and for those that are not, what resources will be needed? Sometimes you can achieve the same result with a different plan.
Copyright 2010 Linda Fayerweather
Changing Lanes LLC
419-897-0528
http://www.changinglanes.biz/
Top 5 Ways to Maximize Your Chamber Membership
REFERRAL MARKETING STRATEGY #1: Set networking goals so you can attend chamber functions with purpose. Start by determining how many qualified referrals you need on a weekly basis to generate the revenue you expect. Then decide how many events you'd like to attend and how many people you should meet (as potential prospects and referral sources) to make it happen!
REFERRAL MARKETING STRATEGY #2: Block out time to network. How much time? If sales are only part of your role, about 8 hours each week should do the trick. If sales is your full time responsibility you should invest at least half of your work week (20 hours) into getting out and about to meet new people. Visit the chamber website, mark your calendar and make it happen!
REFERRAL MARKETING STRATEGY #3: Profile your preferred client. Who are your ideal clients? You know, the ones you love to work with? When you begin working with the people that you are most qualified to serve based on your experience, skills and abilities you will position yourself to become a specialist in your industry! These are the people you want to be introduced to at chamber events.
REFERRAL MARKETING STRATEGY #4: Recruit your word of mouth team. I agree with Jack Canfield. You are the average of the 5 people you spend the most of your time with. Make a list of the 5 people you should be spending your "golden" time with (Mon-Fri 8 to 5). Your net worth is directly related to the strength of your network when you're building your business by referral. Invite your colleagues to attend chamber events with you to make priceless strategic introductions.
REFERRAL MARKETING STRATEGY #5: Get involved. The chamber offers an incredible service to the business community and creates networking opportunities by bringing us together in professional venues. Remember to give back. Demonstrate your leadership and the strength of your network by participating as an Ambassador, chairing a committee or sponsoring a chamber event.
Copyright 2010 Paula Frazier is a referral marketing expert for BNI & Referral Institute and has helped thousands of business people create millions of dollars in qualified referrals for nearly 10 years! She is part of an exclusive team of international Master Trainers and collaborates with the leaders in her industry to continually develop cutting edge referral marketing concepts for the organization. As a published author she's also acknowledged in the New York Times best seller, Truth or Delusion - Busting Networking's Biggest Myths. Check out #33, Delusion with a twist! Paula can be contacted at paula@referralinstitute-va.com .
More 80/20
-- 80 percent of results come from 20 percent of efforts
-- 80 percent of activity will require 20 percent of resources
-- 80 percent of usage is by 20 percent of users
-- 80 percent of the difficulty in achieving something lies in 20 percent of the challenge
-- 80 percent of revenue comes from 20 percent of customers
-- 80 percent of problems come from 20 percent of causes
-- 80 percent of profit comes from 20 percent of the product range
-- 80 percent of complaints come from 20 percent of customers
-- 80 percent of sales will come from 20 percent of sales people
-- 80 percent of corporate pollution comes from 20 percent of corporations
-- 80 percent of work absence is due to 20 percent of staff
-- 80 percent of road traffic accidents are cause by 20 percent of drivers
-- 80 percent of a restaurant's turnover comes from 20 percent of its menu
-- 80 percent of your time spent on this website will be spent on 20 percent of this website
