Serving Simplification

Hello everyone, I'm Bill Canady, the 80/20 CEO. It's great to be with you today, and I thought we'd talk a little bit about serving simplification. 80/20 is a powerful instrument for understanding aspects of the real world, business included. Now, there is a danger of losing sight of the realities when it's applied. 80/20 can tell you a lot about your business, But it is more than a diagnostic instrument. It is a tool in service of simplification, which is a process for strategically focusing on business— for what products produces profitable growth rather than waste your investment. 80/20 guides you to simplifying your business. That does not mean it makes it easier or dumber. Even less does it mean firing a bunch of people or discarding a load of product lines willy-nilly. It is about identifying the products and customers who matter most to your business so that you can focus on over-resourcing them. 80/20 reveals that roughly 80% of your revenue comes from the intersection of 20% of your customers and 20% of your products. If, as proven by the 80/20 analysis, 100% of your company's input— that's your investment in products and personnel and cost to acquire customers— yields just 20% of your gross revenue, then 80% of your investment input is essentially Put another way, only 20% of your effort is critical to your success. The rest of what you do is expand on trivial activity, work that not only fails to build revenue but actually costs you money. It would be to your advantage to reallocate resources from that misspent 80% to overserving that critical 20% of your customers and product. Thank you again for taking time to learn more about VGOS, the 80/20 Operating System. And remember, together we will fly. Together we will fly.