The 80/20 Principle
by Richard Koch
If you want to understand ‘waypointing’ your whole life, this is the book! Koch takes the Pareto principle that 80% of every output comes from 20% of the energy of every input, and extends it to work and play! The book was originally written in 1998 and has had multiple printings. It is truly a classic and thought provoking. We have utilized much of the same logic in utilizing the Waypoint analytics model to determine where we should be putting our energies. We consistently ask our sales people to trim their customer roster and devote their limited time and attention to the more rewarding opportunities. We look at inventory, vendors and even internal activities with the same critical eye. Koch asserts that the Pareto 80/20 law is universal. As disturbing as some of the implications may be, I agree!
Recommended for: those interested in altering their lives to gain greater satisfaction and achieving more!
by Scott McKain
Well written and easy to read with good relatable stories. The main theme is that in today’s ultra-competitive crowded environment, we must create distinction to differentiate ourselves. I found myself stopping often and pondering how our businesses can do that. McKain cites four critical components: Clarity, Creativity, Communication, and Customer-Experience Focus.
One without the others is incomplete. The Clarity piece is one which we often struggle to do; who are we? It’s as important as who we are not! Our Purpose: Creating Relationships to Best Serve Customers is a good start to define our focus; we strive to deliver a ‘unique’ personalized experience to our customers. It’s not a one size fits all. We look for larger opportunities and certainly, looking after our customers’ packaging machinery needs provides an opportunity for ‘hand-holding’ and delivery of value.
The book made me think about crafting stories about our successes; that is part of the communication piece. People respond to stories, not facts. I have learnt that before but often fail to use that communication tool.
Recommended for: those interested in business strategy, marketing, leadership