Instead of focusing on one solution that might be the best and go through all the details. This feedback gives you the chance to take it and improve it. You will get a feedback anyway during the pitch. Instead of spending a whole night to prepare a presentation and thinking about where to start > focus on one topic and do it. Some examples that might help you for a better understanding: To bring it to the point > focus on the 20% and not on everything at the same time. This means:Ģ0% of input creates 80% of the output > try to reduce those non value adding activitiesĢ0% of customers create 80% of your revenue > install a key account manager that the customers knows he/she is important to your company > your customers success is your companies successĢ0% of causes create 80% of failures > Focus on fixing those failures firstĢ0% of your employees create 80% of sales > get those employees a reward The Pareto Principle in first place supports you on realizing that most of the outcome are based on a minority of inputs. So what can we use it for this 80/20 rule? The key point is that most things are not in a 1/1 actio = reactio relationship. Of course you are focusing first on the most failures and most of the time - not always - the other failures will disappear as well.īut most important of all, your customer gains trust in you that you have the competencies to do the job. Or think about failures and finding the root cause, where to start to take actions? This is great when you think about a Failure Pareto and you want to satisfy your customer as quick as possible. When we talk about value adding activities and the final product is 100% What is with all the necessary tasks, that are not adding any value to the final product but have to be done to run the company. The whole idea behind it is that most things in life are not distributed evenly! So before you fire 80% of your employees keep in mind that the Pareto Principle only gives you an idea on the distribution. Make a deep analysis before making such statements! 20% of your employees can also make only 20% of sales or 60%. With the 80/20 rule you might tend to say that it always have to be 100 - it’s not. But before you run away now and think you have the answer hold a second.
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