What is the 80/20 Rule?
According to Vilfredo Pareto, 80% of the outcomes come from 20% of the causes. From this statement, we can derive that if we only focus on 20%, which is the Key Area of Concern, we can derive up to 80% of the result. To make it easier for you, 20% of the output is produced by 80% of the input if facilitated correctly.
In the corporate world, to derive the maximum results, you need to find your Key Area of Concern (KAC) and work on it; this alone will derive a top result for you, and you can observe growth in your organization. It is often observed in business that if we try to attract new customers and ignore those we already have, we will lose our customer base because we cannot apply the 80/20 Rule.
If we had put 80% focus on retaining the customer and 20% on bringing new customers, we would have marketed our product in a much better way and with fewer resources. It would not only give us a better result but also ensure our optimum utilization of resources.
The 80-20 Rule (Pareto Principle) Explained
Do you consider enhancing your organization’s management system to derive the best result? Do you want to create a network of people who can serve as potential customers? Do you have a top-notch quality product but suffer from low sales? Want to know what can solve your problem? This blog will give you a pathway to success in the shape of a simple and flexible rule which is famously known as the Pareto Principle, and in management, we call it the 80/20 Rule.