With the first quarter of the year now completed, we encourage you to examine your company’s efficiencies. What’s working and what isn’t? Where is the most time and dollars being spent and is it resulting in proportionate sales?
Applying Pareto’s Principle as a management effectiveness tool can be a stunning awakening or a good confirmation of how every facet and profit center of your business operates.
Is 80 percent of your budget and activities bringing in only 20 percent of sales? If so, your marketing-to-sales ratio is out of whack and needs realignment.
Thinking about this now will save you from having to ask at the year-end, “Why did we spend all that money and get so few results?” The Pareto Principle is a reminder to focus your time and dollars on only what matters and what brings maximum profits.