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Managing to Make a Difference by Larry Sternberg

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Chapter 71Spend More Time on the 20

The law of the vital few, known more formally as the Pareto Principle, helps people focus on the things that make the biggest difference. It is also known as the 80/20 rule. Here are some examples of this rule:

  1. Eighty percent of your revenue comes from 20 percent of your customers.
  2. Eighty percent of your sales come from 20 percent of your products.
  3. Eighty percent of your sales are made by 20 percent of your sales staff.
  4. Eighty percent of your employee turnover comes from 20 percent of your departments.

These are always approximations, of course, but the important point is the principle generally holds true.

Here is an example from Larry's experience:

Here is one more example:

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