What happens to the profits of your business when you start to think like IBM?
In 1963 IBM achieved a competitive advantage by applying 80/20 thinking to their business.
They realised that 80% of a computer's time was spent executing 20% of the operating code.
So, IBM redesigned the entire operating software. The redesign had the 80/20 principle at its heart.
They changed the software to make their computers faster, more efficient and easier to use.
The took all the benefits of the 80/20 rule and used them to their advantage thus stealing an early march on all their competition.
Your work time is precious… No one likes wasting time. Everyone wants to be more productive.
So, if 80% of your time produces 20% of your results it suggests 2 actions:
1) Spend less time on low value work – the tasks that currently take up your 80%
- Admin, answering the general office phone, signing for deliveries, managing the spam in your inbox, even managing some of your calendar
- I am sure you don’t have to attend every internal meeting or open your own post…
2) Spend more time on the high value work – the tasks that currently take up your 20%
- High value customer calls, high value customer visits and meetings, pursuing new customers and business and following up on new leads…
- You can delegate the low value work or train someone else to do it or simply not do it (if you stop answering the phone, someone else in the team will).
- This leaves you free to focus on the high value work that brings in most of your profits.