Apply Apply thethe

80/20 Principle 80/20 Principle

in Business in Business Development &Development &

LeadershipLeadership

Darren SmithCEO

Cima Strategic Services

AssumptionsAssumptions

Pareto Pareto PrincipalPrincipal

The The Quality Quality

RevolutionRevolution

The The Information Information RevolutionRevolution

The The Business Business

RevolutionRevolution

Top 10 Top 10 Business Applications Business Applications

StrategyQualityCost reductionMarketingSellingInformation technology

Decision making and analysisInventory managementProject managementNegotiation

80/20 Analysis80/20 Analysis

PreciseQuantitativeRequires investigationProvides factsHighly valuable

80/20 80/20 ThinkingThinking

Principle Applied toPrinciple Applied toStrategy ImprovementStrategy Improvement

Do you have an accurate picture of where you make the most money?

Do you have an accurate picture of where you lose the most money?

Are you doing too many things for too many people?

Choosing a Car

400 or 71%285/Totals

704977Maintenance Costs

10080108Gas Mileage

1001001010Resale Value

801628Style

504085Reliability

Possible Score

Raw Score

Score 1-10

scale =

Weight X

Criteria

Buying a Home

400 or 81%324Totals

7070107Nearby Amenities

1006488Property Taxes

100100910Stable Neighborhood

804058Quality of Schools

5050105Distance From Job

Possible Score

Raw Score

Score 1-10

scale =

Weight X

Criteria

Choosing a SchoolChoosing a SchoolSchoolSchool AA

Criteria Weight X

Score = Raw Score

Possible Score

Distance 5 8 40 50

Sports Program 8 2 16 80

Academic Ranking 10 10 100 100

Tuition Cost 8 10 80 100

Facilities 7 7 49 70

Totals 285/ 400 or 71%

Choosing a SchoolChoosing a SchoolSchoolSchool BB

Criteria Weight X

Score = Raw Score Possible Score

Distance 5 10 50 50

Sports Program 8 5 40 80

Academic Ranking 10 9 100 100

Tuition Cost 8 8 64 100

Facilities 7 10 70 70

Totals 324 400 or 81%

Examples of Filter CriteriaExamples of Filter Criteria

Competition

Geographic location

Reputation

Size of Project

Type of Project

Prospect/Client Filter

380 or 85%321/Totals

8080108Type of Project

705687Size of Project

504595Reputation

804058Geographic location

1001001010Competition

Possible Score

Raw Score

Score 1-10 scale

=

Weight X

Criteria

Your Prospect/Client Filter

Totals

Possible Score

Raw Score

Score 1-10

scale =

Weight X

Criteria

Principle Principle Applied toApplied to

Project Project ManagementManagement

5 Rules 5 Rules for for Decision Decision

Making Using Making Using 80/20 Principle80/20 Principle

Personal 80/20 ExamplesPersonal 80/20 Examples

The Vital Few–Planning–Face time with key players

The Meaningless Many–Checking email–Answering phone calls

–Meetings in excess of 1 hour

1010High ValueHigh Value

Uses of TimeUses of Time

1010Low ValueLow Value

Uses of TimeUses of Time

Darren Smith, CEO214-353-9333

darren@cimastrategic.com

Cima helps executives develop edges to win easier through consulting on strategy &

business development and through executive coaching & speaking.

Cima Strategic ServicesCima Strategic Services

Other seminars and keynote topics include:

Learn The Art of Questioning and Improve Business Development, Negotiation Skills and Conflict Resolution

Practical Leadership Skills for Any Environment

Business Development, Leadership & the 80/20 Principle

Learn the Strategic and Tactical Business Model and Sharpen Your Edge

The Ultimate Leadership Skill: How to Coach and Propel Your People

80/20 Principle80/20 Principle

Simple is better

Our goal is success, not perfection