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Think Beyond the 80/20 Rule

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.

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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