Would you like a very simple formula to raise revenue, sales, profit, and leadership effectiveness?
Just 20 percent of your company’s business efforts result in 80 percent of the revenue and profit. There are literally thousands upon thousands of data case studies supporting this practice.
Let me explain this idea with a few examples.
• If you have 10 sales people, 2 of them are responsible for 80 of all sales.
• If you have 10 projects, 2 of them create 80 percent of your revenue (then 20 percent of those amass 80 percent of total profit).
• 20 percent of your leadership efforts comprise 80 percent of your impact.
• 20 percent of your staff receive 80 percent of the promotions given.
These statistics can very a bit (90/10, 75/25, etc), but the strict average is 80/20 and iron clad in business, life, love, food and everything in between.
So… Do you know which sales staff is generating your 80 percent? And which of their 20 percent sales techniques are responsible for their high sales? AND, are you investing 80 percent of your sales and marketing budget into the 20 percent who are driving your business success? How successful could you be when you are armed with these answers?
Do you know the key project profile, (demographics, psychographics, your avatar) that draws 80 percent of your revenue? And are you strictly stacking your sales funnel with your high revenue potential clients? How amazing would it be to duplicate again and again your key revenue driving clients? You can at anytime and you’re already sitting on the information to do it.
Do you know which 20 percent of your leadership qualities and actions elicit 80 of the inspiration, motivation and change among your staff? You do / say / demonstrate only a precious few things that elicit results; do you know precisely what they are? And what could you accomplish if you did know and leveraged this information more profoundly?
Now that you’ve glimpsed this insightful idea, begin using it as an incredibly profound tool! I practice 80/20-ing my business, life and relationships constantly- as there is always a next level of growth and development. The 80/20 strategy is one of the most impactful strategies I’ve implemented, and teach my clients to implement as well.
There are three key actions (20% impact actions) that will allow you to use the 80/20 principal effortlessly and strategically. Simply select a facet (one facet at a time) of business (or life) and apply this 80/20 principle, here’s how…
1) Research & Data Collection
Ok, don’t get freaked out about words like “research” and “data collection”, this need not be a difficult endeavor. In fact, all the data you need is already available and simply needs to be organized and put to use. If you’re applying the 80/20 to your sales department for example; pull your sales records from the past 12-24 months and reveal who is responsible for the majority. Now find the top profit earning clients/customers and outline a client profile to tailor your sales efforts around, and so on. You can apply this process with the top 20 percent of leaders, the top 20 percent who receive 80 percent of the promotions. Are you getting the picture? This way you will know “who”, “what”, and “where” to invest company resources, and do so wisely and profitably. It’s really quite simple.
Now the fun part begins. When you subtract strategically, you’re left only with that which is beneficial to your company. The good stuff is not usually in what you add, it’s almost always in what you eliminate. Think about this simple example to illuminate the idea of subtraction. Emotions: When you subtract collections of emotions like anger, frustration and stress, you’re left with space to be happy, creative and caring. When you subtract the 80 percent of sales techniques that are not working- you save and reinvest 32 hours of a sales person’s 40 hour work week- and yes, most people waste 32 of 40 hours (this is how I so easily teach business owners and executives how to work only 2-6 hour days with ease and achieve FAR superior results!
What can you begin subtracting in an effort to be left with only that which is useful at the highest level? You have the data that shows you the 20 percent of “what, who and where anything is responsible for 80 percent of… everything”; now it’s time to eliminate, delegate and strip away all that's not included in the 20 percent of the juicy, fantastic results you really want to sustain, develop, and grow.
It’s time to narrow your focus and deepen discipline; but only on that which is the 80 percent goldmine. You can begin with your personal efforts if you like or experiment with others’ roles and output.
An exciting new mode of operation is opening up to you. You may choose to shift your entire sales model based on your 80/20 findings. You might begin investing 80 percent of your training and development into the 20 percent of leaders and managers who are really kicking butt. It’s possible that you’ll find your strategic plan morphing to support a great deal of extremely useful 80/20 findings. Have fun with this idea, it’s highly profitable when utilized.
I wish I could take credit for this idea, but I cannot! It’s been gladly borrowed, and adapted- I have a fantastic knack for applying and teaching it; so hit me up if you want some help getting started.
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Cheers to Liberate Living! Shawn