When we look deeper into situations, we may become aware of things that can help us be better at what we do. I have lived in the Santa Clarita Valley since 1953. Just prior to moving to the Santa Clarita Valley, I attended Robert Fulton Junior High School in Van Nuys. Being an entrepreneur, I owned my first business at this time. I noticed things that could help people be more effective.
At Robert Fulton Junior High School, there was a dirt area at the back of the school that was fenced in. One semester we had a class where each one of us had a plot of this land a grew vegetables. We had to cultivate the land, plant seeds, water, weed and maintain our individual area of the vegetables.
During this process, I noticed that there were plots that obtained much better results than others. At the time I did not realize it, but I was being exposed to the 80/20 rule. Approximately 20 percent of the plots were achieving better results than the others. This observance started me on a life-long journey.
I began noticing that some businesses do better and are more effective than others. Likewise, some employees are more effective than others. Being a curious person, I always ask questions like “Why is this,” and “How can I use this information?” Over the years I became aware of Vilfredo Pareto, the 80/20 rule and looked at the many ways that this analysis process can be used in business.
What 20 percent of products provide 80 percent of your profits? What 20 percent of your customers provide 80 percent of your income? What 20 percent of the training provides 80 percent of the benefit to employees? What 20 percent of your time provides 80 percent of the benefit obtained? What 20 percent of your competitors can provide 80 percent of your competition?
How can you apply to this? The list is endless. Once you can measure something, you can then look at how to manage it for improvement. For example, do you wear 20 percent of your wardrobe 80 percent of the time? How can you use the 80/20 rule?
Garry Haggart, CPC, is a management, marketing and performance development consultant and facilitator. He can be reached at 661-259-2530.