The 80/20 Rule To Give You an Edge
’80 / 20 Management’
80% of your results will be obtained by 20% of what you do every day.
Most people are tactical and not strategic and that is a BIG problem
Therefore, to give you a list of 80 / 20 rules for sales (yesterday) and not follow it up with ’80 / 20 rules for management’ seems disingenuous.
DATA is of critical importance.
But not the amount of data… it’s the quality of the DATA that matters.
We have a ton of digital marketers that work with us.
As in, the Facebook Guy / Gal.
We teach them to become FULL STACK consultants rather than delusional enough to keep thinking FB ads are the solution to everything.
Example: if a client has a cashflow problem or an accounts receivable issue…
thinking FB ads will solve it is like having a hole in your boat and going further out into the lake to plug the hole.
Another example.
The digital marketer will drive traffic to a landing page… make changes and see an increase in “conversion” (number of email addresses entered) and decide they’ve succeeded.
PROBLEM: they don’t follow the new lead to see what the more important conversion to SALE is.
Quality DATA.
In other words… you can increase conversion on your landing page and actually make fewer sales.
*Fewer sales and money to pay you "cough cough*
Here are some 80 / 20 management hacks:
1. The decisions a business owner makes… not many make that much of a difference. Time-consuming analysis is not necessary, make a decision, and move on.
Course correct where necessary.
Example I have changed the format of this newsletter numerous times until it delivered the results I was looking for.
I ALWAYS want my coaches to be able to earn their 12-month coaching fees in the first 30 – 90 days so it doesn't come out of the clients pocket… Probably seems like a straightforward decision, to add the new category, but
many factors were affected.
An important decision was made in an instant.
We also needed to hire new staff recently… not the easiest decision in the world when you consider the 2nd and 3rd order consequences.
We knew who we wanted, we decided QUICKLY, hired him, and moved on accepting that we’ll course-correct if and where necessary.
2. If and when you decide something isn’t working decide sooner rather than later.
3. When something is providing a positive return, double your resources in that area… and keep re-upping for as long as you can.
Pour gasoline on fires that keep your company warm.
4. An extension of number 3 is to not settle for modest growth / return. Look for 10 X, 50 X and 100 X returns. They’re easier than you think.
5. An A+ staff member is worth ten B staff members… hire and recruit accordingly.
6. Simplify projects so that you and your staff can focus on the 20% of activity that’ll garner 80% of the result.
7. Spend time creating a detailed plan prior to execution, with an 80 / 20 mindset. The 80% will become obvious prior to starting and you’ll have a much more successful / quicker project.
8. 20% of the problems will result in 80% of the wastage / cost overruns.
9. Companies that have inventory… carry too much of it and crushes profitability.
10. Eliminate inventory that is not moving and move high volume inventory into the most easily accessible areas.
No doubt there are many more… but when you and your clients start operating businesses with an 80 / 20 mental model, MAGIC can happen.
What do you think happens to your business when you have those ten fundamentals running like a Swiss watch....YOUR BUSINESS EXPLODES! If not now folks, when will you take the action steps that you know that you need to take? When will you make the time to invest in yourself and your business?
Click here to schedule a complimentary business strategy session to see specifically how we can help you gain an edge
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