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Tip Of The Day #54 - Pays To Pay Attention To The % That Pays

Barbara Steckly

Barbara Steckly

Pays To Pay Attention To The % That Pays

The 80/20 rule, prevalent in business today, is based on the idea that 20% of a company’s clientele consistently bring in more revenue while requiring less time and effort than the other 80%, so why not simply focus on cultivating these stellar clients more and more, instead of devoting all your resources trying, and frequently failing, to bring the other 80% up to their level.

Actually, I’ve noticed the same concept holds true for human resources within an organization as well. In fact, it’s common to see 20 percent of an employee base ultimately responsible for 80 percent of a company’s output.

Obviously, this is a theory, not a hard rule or a proven percentage, but the takeaway is that if you look at many key metrics in a business, there is definitely a minority creating a majority.

In both cases, whether the productive 20% refers to clients or staff members, it just makes sense to make the most of what you’ve got going in your favor, thereby raising the bar, in essence, for the 80% to hopefully step up to the plate.

Gradually reducing your time with the non-profitable clients and the non-productive team members may cause some to move on, of course, but with less impact to your business big picture than if you lost any of your golden 20% through inattention and neglect.

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