Written by Bill Canady, the creator of the Profitable Growth Operating System, The 80/20 CEO: Take Command of Your Business in 100 Days is a detailed playbook for aspiring or accomplished senior-level executives who want to lead organizations in profitable strategic growth and to do so on demand, on track, on pace, and without surprises.
The reason that 80/20 is so valuable is that it is counterintuitive. We tend to expect that all causes will have roughly the same significance, that all customers are equally valuable, or that every bit of business, every product, and every dollar of sales revenue is as good as another.
The 80/20 Management Practice
Also known as the Pareto principle, 80/20 is a management concept based on a natural law: 80% of results come from 20% of causes. It is a tool used to prioritize and manage resources, focusing on the most important and impactful activities that generate the majority of results. The principle suggests that organizations can achieve significant improvement by focusing their efforts on the 20% of activities that generate 80% of their results, rather than spreading their resources non-strategically across all activities.