This well known principle holds that 80 percent of your outcomes come from 20 percent of your inputs.Â In practice, the concept of focusing on a few options that provide the greatest benefit is applied to management (defects, staff, project management, etc.), economics (wealth distribution), information architecture and marketing.Â
Here are questions to ask yourself as a small business owner / operator or marketing professional.
- Which key (20 percent) customers and key products or product lines generate 80 percent of your revenue?
- Which few sales staff or employees are responsible for the majority of your revenue?
- When youâ€™re seeking new customers, do 20 percent of those also generate 80 percent of your new revenue?
- Which 20 percent of your customers or products generate 80 percent of your complaints?
- When it comes to marketing,Â are you focusing roughly 80 percent of your time and energy on the 20 percent of your work thatâ€™s really important?