| Rest in peace Joseph Juran, inventor of the 80/20 | | | | needs to be done that week in one day. Does that |
| rule. Your 80/20 rule saved many careers. | | | | mean you get to take the other four off? Not really. |
| How can that be? | | | | Look at it this way. |
| If you managed for any period of time and were an | | | | The most important task you have as a manager is to |
| effective manager, you have used the 80/20 rule. | | | | achieve the corporate goals. These goals are |
| Simply stated, the 80/20 rule says that 80% of your | | | | normally a mix of performance/financial goals and |
| results will come from 20% of your efforts. | | | | MBO’s (Management by Objective) set by your |
| If you have 10 people on your team, 80% of your | | | | boss. If goal attainment is your top priority, then most |
| results or production will come from your top 2 reps | | | | of what you do should be directed towards achieving |
| (20%). | | | | that goal. I am a strong believer in weekly check in |
| If you own a restaurant, 80% of your revenue will | | | | funnel update calls to keep a pulse on the reps |
| most likely come from 20% of the time you are open. | | | | mindset, expand my relationship with that rep and |
| If you have 10 accounts 80% of your revenue will | | | | update the sales funnel and forecast. Every week, |
| come from the top 2 (20%) of your accounts. | | | | that time with the reps was a priority. |
| The beauty of the 80/20 rule is that it applies in a | | | | Back to the example with your region and ten reps. |
| myriad of industries, settings and applications. When | | | | Doing check in calls (budgeted at about an hour each) |
| you first hear it, you may be a bit skeptical, but is really | | | | will take all of one day and some of the next |
| true. | | | | morning. So doesn’t that work out to you |
| How can I get 80% of my revenue from 20% of my | | | | spending 20% of your time (one day) to accomplish |
| accounts? As many times as you challenge and | | | | 80% of your goals/objectives? Yes it does. |
| question the rule, you’ll find it still holds true. Sure | | | | I know you could split hairs (as you can with most rules |
| there may be a few exceptions, but it most cases it | | | | or theories) about the exact numbers, i.e. , is it really |
| rings true. | | | | 20% or it is closer to 25% and if I did that would that |
| Ok great, I understand the rule, how does it apply to | | | | really reflect 80% of my productivity or closer to |
| line management? | | | | 60%? The answer is all of the above. Kinda. |
| I already mentioned the rep application. You have 10 | | | | As a manager meeting production goals and hiring and |
| people in your region and 80% of your revenue will | | | | developing future leaders for the organization are your |
| come from two reps. Wouldn’t that mean that it | | | | only goals. All of the other things you do in pursuit of |
| would be wise to spend your travel time with your top | | | | those goals are a “means to an end”. |
| performers, the 20% producing the 80%? The | | | | Certainly, the things you do on the other four days of |
| obvious answer is yes. You may have heard this | | | | the week are important and contribute to your |
| rule stated another way “Feed the eagles and | | | | success, but if you did all of those other things without |
| starve the turkeys”. The eagles represent the top | | | | spending 20% of your week on check in calls, would |
| 20% of your team and the turkeys the balance. | | | | those other things you did they other four days of the |
| What about looking at the 80/20 rule from a time | | | | week put you 80% of the way on the path to |
| perspective? | | | | success? |
| You spend 80% of your time on 20% of your tasks. | | | | The answer is no. |
| To make the math simple, let’s think of a week (5 | | | | By spending 20% of your time you will put yourself |
| working days). | | | | 80% of the way “there”. |
| The rule says that you will accomplish 80% of what | | | | |