Pareto principle

So I'm going to wrap up now with striking at the root.

I believe in the Pareto principle, that you focus on the 20% of the things that will give you 80% of the benefit.

So what would I personally prioritize? Well, I drew this little tree.

I'm not very artistic.

And if this sounds familiar or you can tell where this is going, I won't be surprised.

Like this is Pareto's principle perfectly in place.

So Pareto's principle essentially suggests that 20% of what we do drives 80% of our results.

Or said another way, like what small slice of what it is that you're doing is carrying the heaviest load relative to ROI and the things you need to get done.

Then which big chunk is barely moving the needle for you? Like that's probably got to go.

maybe you can find out what do I need to do? What are the two or three things that we do need to do today and and move things forward? We make the most difference.

And that's very much also a principle that I've always kind of followed, the Pareto principle, 80% of your revenue comes from 20% of your clients, 80% of your trouble comes from 20% of your clients, and all sorts of finance numbers that you could put around that as well.

So it is about prioritising and saying, well, what will move the needle the most? Here we have five of our clients giving us most of our revenue.

Let's make sure that we really stick close to them and look after them.

Let's make sure that the people in the practice or the people in the business know what their names are, have developed a rapport with them.

You know, beyond that person who might come in every three years for a vaccine or whatever.

That's funny that you would say that because I did mention the Pareto principle and one of the first places that I used that was in the feline practice for exactly what you said.

I was taking over the satellite clinic that was failing.

They show up and they do what they're supposed to do, when they're supposed to do it, how they're supposed to do it, regardless of how they feel, right? It's really that simple.

And what'll happen is, and this is what happens is, as a leader, it's called the Pareto principle.

20% of my organization is going to deliver 80% of the results, right? 20%, so if I have, let's just say 10 reps, Two of those reps, maybe three, but typically around two of those reps are going to deliver 80% of my results every week.

If I have 20 reps, four of them are going to deliver 80% of my results every single week.

But there are shortcuts to figuring this out.

And I always like to think of the 80-20 rule.

And there was a famous Italian economist, Wilfred Prado.

And back in 1896, he roughly figured out that about 80% of Italy's land was owned by about 20% of people.

I love that.

I mean, as you were talking, that made me think of the Pareto principle, the 80-20 rule, where 20% of what you do achieves 80% of the results.

But if you actually keep going a little deeper, so you do 80-20 and then go down to 20% of the 20%.

and then you do that one more time, what you find is there's 1% of what you do that achieves 50% of the results.

And Shopify has a report for it.

And it's based on the Pareto principle, which is that 80% of the outcome is by 20% of the effort.

And it's remarkable how often it comes true.

You can go into your Shopify, go into reports and look at your ABC analysis.

There's a principle that people maybe should study.

It's called the Pareto principle.

And it's the 80-20 rule or 20-80 rule.

So you have to decide what you're good at and what you like to do and stick with that and then allow other people to do the rest 80%.