The Eighty Twenty Rule
It has been said that 80% of the work is done by only 20% of the people. While that is often true, I would like to make another application of the Eighty Twenty Rule. According to David Salyers of Spark, and other business leaders, 80% of the work you do is the exact same as that of your competitor. It is what you decide to do with the remaining 20% of your energy that will make or break a business.
If 20% of your work determines the majority of your results, then you had better choose wisely what you decide to do with that 20%.
In my neighborhood there are two fast food restaurants side-by-side. They literally share the same parking lot. 80% of what those two restaurants do are the same. They both have recently built buildings, both have drive-thru take out, both serve fast-food, and both obviously have the same location. However, one of those restaurants has double lanes of cars surrounding the building, while the other only has a couple of cars in their line. You might have guessed that one of those restaurants is Chick-fil-A, while the other I will not name. Why is Chick-fil-A always busy, and the other one not? One could argue that maybe people just like chicken! I’m sure some do. It likely is not price, since Chick-fil-A is certainly not the cheapest fast food available. Since most of what these two restaurants do is the same, it is the 20% that makes all the difference. One has created a culture of service, friendliness, and value. One has figured out this drive through process, even during a pandemic. One has employees running around everywhere, and the other doesn’t have enough employees.
This is not an advertisement for Chick-fil-A (although I must admit I am a fan). There are other companies out there who do the same thing, or similar things, that Encore does. Most of what we do will be the same. It will be the 20% that we do differently, and better, that will make the difference. What we do must add value to our employees, our customers, our suppliers, and our community. Value is the gap between what you pay for something and what you believe it is worth. Value is created by eliminating or reducing pain points. If what we do with our 20% can eliminate or reduce pain points for our customers, then we will create value. The purpose of a business is to create value for its customers.
Let’s strive to make the 20% we do differently count. Let’s strive to add value to all the stakeholders in our business, which includes our employees, our clients, the patients we serve, and our community. We must focus on getting better… not getting bigger. If we get better, customers will demand that we get bigger!
Written by Eddie Hauser
Eddie Hauser is a Data Analytics Manager at Encore Exchange. His experience as a Corporate Trainer, IT Consultant, Data Analyst, and Excel Expert has allowed him to pursue passions focused on helping a variety of companies and industries improve efficiency and productivity.