Saturday, 19 May 2012

Remember Pareto

The Pareto curve (or effect) is always worth remembering ... remember it suggests that often 80% of the benefits can be achieved by applying 20% of the effort in any situation.

For example, 80% of your inventory value is probably represented by 20% of your inventory items.  If you control these 20% effectively, you have 'control'.

80% of your turnover might come from 20% of your customers.  Make sure you treat these customers well and learn from them.

Then think ... "Where else can I maximize my gains by focusing on the important 20%?"

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