Think Beyond the 80/20 Rule – Julian Summerhayes

Pareto still holds good as a general principle.

But the trouble is for most firms they don’t look hard enough at why it is or what it is that determines the 80% from the 20%.

It is not just a case of finding more like the 20% but rather in understanding what it is that you can do more of for the 21%, 22%, 23% etc to grow the percentage of clients that you would prefer to have as clients.

Have you done a review of:

  1. Your sector expertise?
  2. Your ability to grow the sectors where more of the 20% are based (I would be surprised if that was not some slack in the system)?
  3. Your non-sector experience? How many of your clients or how much of your turnover is outwith a sector? You need to look always at the edges for growth;
  4. The demographic?
  5. The psycho-graphic?
  6. The people dealing with the clients – do they do something different to the rest of the team?
  7. Your service standards?

That should be more than enough to keep you busy for a day or two.

And if you need someone to dig about in the weeds, then appoint a Chief Profitability Officer with the simple brief to find more of the 20%.

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