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 to make their computers faster, more efficient and easier to use.
The redesign had the 80/20 principle at its heart, using the benefits to their advantage thus stealing an early march on all their competition.
So how do YOU apply the 80/20 rule to your accountancy firm and start to think like IBM?
Your work time is precious… no one likes wasting time. Everyone wants to be more productive.
Using the 80/20 principle, it follows that 80% of your time produces 20% of your results.
This suggests 2 actions:
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, managing your calendar, opening post and do you need to attend every internal meeting?
Spend more time on the high value work – the tasks that currently take up your 20%:
High value client calls, visits and meetings, pursuing new customers and business, high value strategic work, networking, 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.
Click here to be like IBM and change the software of your firm. Implement actions today to give your firm an 80/20 payoff!