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What would your bottom line look like if your profits grew by 1% of revenue every single year?

What is 80/20?

Diagram illustrating the Pareto Principle.

While the Pareto principle was originated by Vilfredo Pareto regarding Italian Land ownership, it was Joseph M. Juran that brought it into business quality circles before it matured into a holistic enterprise process.

What companies/organizations get the greatest benefit from its application?

  • Complex businesses
  • A company with many customers
  • A company with many products or services

What are typical results?

  • Significant margin gains upon implementation
  • SKU and complexity reduction delivering widespread benefits
  • The equivalent of 1% of sales moved directly to the bottom line annually

A Phased Approach

Data Integrity Icon

Data Integrity & Understanding True Profitability

Validate the performance of the business and understand the nuances of your market

  • Historical reviews
  • Quartiles
  • Quads
  • Functional meetings
Segmentation Icon

Segmentation & Market Understanding

Identify components of the business that align from a strategy viewpoint

  • Outside-in views
  • Market attractiveness
  • Segmented P&Ls
  • A view through ROA
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Strategic Direction

Develop a clear and easy-to-articulate strategy for each identified segment

  • Gap analysis
  • GAP closure plans
  • KPI design & targets
  • Create a comprehensive multi-year plan
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Execution

Establish KPIs to ensure goals are met while supporting the mindset shift and company culture

  • Establish effective review systems to enable resource deployment for critical KPIs
  • Align incentives with KPIs
  • Monthly reviews
  • Course correct when need

80/20 brings results across the Enterprise in ways Lean and Six Sigma did for Operations!

We work with your leadership teams to enable them to understand, leverage, and deploy the phased 80/20 process

We work up and down the organization to introduce and educate associates on how to look at the business through an 80/20 lens

We ensure data integrity at each step of the process to establish a strong foundation is created through every phase

We coach team members privately if needed

We make sure there is transparency to senior leadership about buy-in, progress, and execution

We can help with:

  1. Full deployment – strategic planning and execution
  2. Phased approach - start with what is most critical, and build along the way
  3. Executive coaching

Our Team

We have lived the power of 80/20