Thursday, December 04, 2008

80-20 Rule Pereto Principle

Knowing vs. Doing from Dan Kennedy

We know the Rules: 80-20, 95-5. But how zealously do we apply them?

You know that 80% of your problems, aggravation, grief, etc. come from 20% of the people in your world – customers, vendors, associates, employees. But how often do you purge the 20%?

You know that 80% of your success comes from 20% of your activity. How viciously do you fight off the unproductive activities? You should read my NO B.S. TIME MANAGEMENT book.

You know that 80% of your profit comes from 20% of your customers. Do you take them for granted or nurture them? Gold/VIP Member John Davis has an excellent program – and makes serious investment – in nurturing his top customers. I spend a lot of money with a lot of businesses, I over-tip a lot of people repeatedly. Not one is treating me like royalty. And I feel no loyalty to any.

The 95/5 Rule is at work inside the 80/20 in every case.

The fat doctor who smokes knows. It isn't that he didn't get the memo.

It's just not enough to know. It's not good enough to occasionally or casually or selectively apply these rules. This IS where rubber meets road.

One of the things evident watching Trump throughout 'The Apprentice' was his impatience. Say what you want about us Type-A's, but nothing much'd get accomplished without us. One of my favorite Mike Vanceisms, his caution against sanctioning incompetence. Mike says we have a moral responsibility not to do so.

Patience is virtue with children, elderly folk, horses, and easily broken, costly electronic items – otherwise, in the land of the entrepreneur, it is vice; it is sense of urgency that is virtue. The majority operate on 'tomorrow if not today' and the majority are poor. Not coincidence. FOCUSING RELENTLESSLY on identifying, keeping, doing, nurturing, rewarding the 5% of everything, and on identifying and ruthlessly ridding yourself of the 95% of everything, there's THE game worth playing well.

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