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Atricle Dump - Top Ten Business Uses of the 80 - 20 Principle
Consulting salaries are an important factor in your ability to hire the type of talent you will need as your business expands. You will probably do much of the work yourself, but as your business scales up you will need to employ others to help you. The consulting salary and payment scheme you offer will be key to attracting and retaining top talent.You need to ask yourself very early on in your business operations, "Will I be able to afford the kind of technical person that has the skills that are needed for sweet spot clients?" If your business is only generating enough revenue to cover a consulting salary of $27,000 per year, you might be in for a shocking answer.Consulting Salaries and Scenario AnalysisWhen we think about consulting salaries we have to use the triple billing rule: 1/3 of revenue goes to sal
Information technology
Computer programs become more efficient when 80 percent of the processing time is used on 20 percent of the need. This results in functions that are use
How often do you wish you were more proficient at public speaking? Public speaking or giving presentations can take you places you might not ever get to go otherwise. It gives you the opportunity to meet people outside your circle and it opens doors that might have remained closed.Did you have a chance to speak at an event or meeting in 2004? Did you take advantage of it or did you decline? Were you given an interview opportunity? Did you capitalize on it or defer to another?What stopped you? • Afraid of public speaking • Embarrassed that you will seem too brash or unprofessional • Feel like you might not look or present your best • Concerned no one will take you seriouslyThese are not legitimate reasons for passing up a valuable chance to enhance your visibility and credibility.
Strategy
Using the 80/20 profit analysis, determine a segment strategy by dividing your business up into as many categories as are relevant to your business. Compare the profit and loss of each segment to find the 20 percent that are accounting for 80 percent of the profits and the 20 percent that are accounting for 80 percent of the losses. Redirect your efforts to the areas where you can gain the most benefit. Reduce your efforts in the areas where you are having the most losses.
Quality
Using the 80/20 principle to focus your efforts on the least 20 percent causing most of the problems, instead of trying to tackle all the problems at once. As the least 20 percent that are causing the most problems become resolved, reevaluate your list again and start over.
Cost reduction and service improvement
Simple is cheaper and better, make the simplest 20 percent of your products as high quality and consistent as possible. If something is complex, simplify it or eliminate it.
Marketing
Identify your core 20 percent of your best customers and do everything possible to keep them. Provide exceptional and outrageous service to them even if it has a short-term cost, the payback later will be worth it.
Selling
Have all of sales focus on the core 20 percent of customers in their business line. Resort to less expensive phone or mail support for the remaining 80 percent. The core 20 percent are the customers that are providing you with 80 percent of your business profits. Reward you best sales people and hire more with the same personality and attitude.
Information technology
Computer programs become more efficient when 80 percent of the processing time is used on 20 percent of the need. This results in functions that are used
When you must take on employees for your business, you will have to go through the hiring process. After preliminary interviews, you should be able to narrow the field to three or four top candidates. And that is the time to do a little detective work to insure you have the right (and honest) employees coming in.It's estimated that up to one-third of job applicants lie about their experience and educational achievements on their resumes or job applications. No matter how sterling the person seems in the interview process, a few phone calls upfront to check out their claims could save you a lot of hassle - and even legal battles - later on. Today, courts are increasingly holding employers liable for crimes employees commit on the job, such as drunk driving, when it is determined that the employer could have been expected to know
Quality
Using the 80/20 principle to focus your efforts on the least 20 percent causing most of the problems, instead of trying to tackle all the problems at once. As the least 20 percent that are causing the most problems become resolved, reevaluate your list again and start over.
Cost reduction and service improvement
Simple is cheaper and better, make the simplest 20 percent of your products as high quality and consistent as possible. If something is complex, simplify it or eliminate it.
Marketing
Identify your core 20 percent of your best customers and do everything possible to keep them. Provide exceptional and outrageous service to them even if it has a short-term cost, the payback later will be worth it.
Selling
Have all of sales focus on the core 20 percent of customers in their business line. Resort to less expensive phone or mail support for the remaining 80 percent. The core 20 percent are the customers that are providing you with 80 percent of your business profits. Reward you best sales people and hire more with the same personality and attitude.
Information technology
Computer programs become more efficient when 80 percent of the processing time is used on 20 percent of the need. This results in functions that are use
If you’ve got a difficult boss or too demanding clients, it’s important to remember how things couldo be much worse. Almost every legal job going is better than the seven jobs below. Whether you are solicitor, paralegal or legal secretary it’s read about these roles and make a cup of tea and realise it could be a lot worse.Poultry Processor – even for the most ardent meat eater it’s difficult to think about working in a poultry processing plant. The combination f raw meat, the mechanical nature of the operation and the bodily fluids it’s easy to see why it’s a role with a high employee turnover. Generally very repetitive, not hugely mentally engaging and the pay aren’t even that good. And it would probably put you off chickenSewing Machine Operator – working in a factory as a sewing opera
Cost reduction and service improvement
Simple is cheaper and better, make the simplest 20 percent of your products as high quality and consistent as possible. If something is complex, simplify it or eliminate it.
Marketing
Identify your core 20 percent of your best customers and do everything possible to keep them. Provide exceptional and outrageous service to them even if it has a short-term cost, the payback later will be worth it.
Selling
Have all of sales focus on the core 20 percent of customers in their business line. Resort to less expensive phone or mail support for the remaining 80 percent. The core 20 percent are the customers that are providing you with 80 percent of your business profits. Reward you best sales people and hire more with the same personality and attitude.
Information technology
Computer programs become more efficient when 80 percent of the processing time is used on 20 percent of the need. This results in functions that are use
Sales is still a must for any company who wishes to stay in the marketplace. A recent Internet search uncovered over 471,000,000 hits on the words sales or selling. Visiting an Internet bookstore revealed similar interest with almost 11,400 titles including the key word of sales, over 8,208 titles with the key word of selling and 4,700 titles with the key words of sales and marketing.Extensive research conducted by the American Society for Testing and Development (ASTD) discovered direct training expenditures were 2% of payroll costs with another 10% of more in indirect costs. With all of this interest and dollars being invested in training and development for improved sales, possibly now is the time to assess your sales development.The following evaluation is for you, your manager, or your organization to determi
Marketing
Identify your core 20 percent of your best customers and do everything possible to keep them. Provide exceptional and outrageous service to them even if it has a short-term cost, the payback later will be worth it.
Selling
Have all of sales focus on the core 20 percent of customers in their business line. Resort to less expensive phone or mail support for the remaining 80 percent. The core 20 percent are the customers that are providing you with 80 percent of your business profits. Reward you best sales people and hire more with the same personality and attitude.
Information technology
Computer programs become more efficient when 80 percent of the processing time is used on 20 percent of the need. This results in functions that are use
Businesses involved in B2B transactions need extensive IT integration with the partners or exchanges in order to benefit from participating in B2B networking. One of the major hurdles for business in practicing B2B e-commerce is the expensive software and the extremely costly process of integrating IT infrastructure. Costs can range from $5 million to about $25 million for any business to install and integrate necessary framework needed for B2B e-commerce. Businesses are faced with the option of participating in private or public B2B exchanges. Public exchanges are relatively cheaper but security of data exchanged is a major concern, private exchanges are extremely costly to set up and operate and not viable options for small businesses.Software required for B2B processes: The software required for B2B business depends on wheth
Information technology
Computer programs become more efficient when 80 percent of the processing time is used on 20 percent of the need. This results in functions that are used the most often, being faster and easer to use. Most advances in the last 50 years have been due to the 80/20 principle being applied to technology. There is no end to the refining processes that use of the 80/20 principle will bring to businesses relating to information technology.
Decision making and analysis
Since 1950, business has increasingly been blessed, or if you prefer plagued, by management, scientists, and analytical managers. Analysis has probably been the greatest U.S. growth industry in the past half-century, and instrumental in some of the greatest U.S. triumphs. But analysis has had its darker side: the escalation of corporate staffs that are only now being properly dismantled. The 80/20 Principle is analytical but puts analysis in its place.
Five rules for decision making:
Rule one. Not many decisions are very important. Only one in twenty will be important.
Rule two. The most important decisions are often those made only by default.
Rule three. Gather 80 percent of the data and perform 80 percent of the relevant analyzes in the first 20 percent of the time available. Then make a decision 100 percent of the time and act decisively as if you were 100 percent confident that the decision is right.
Rule four. If what you have decided isn't working, change your mind early rather than late.
Rule five. When something is working well, double and redouble your bets.
Inventory management
Stock almost invariably follows some sort of 80/20 distribution, around 80 percent of stock only accounts for 20 percent of volume or revenues.
Point one. Cut down radically on your unprofitable product.
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