80/20 Profit Improvement Strategies
The 80/20 tool box has improved hundreds of companies over 30 years through:
- increased profits
- more focused businesses
- reduced overhead
- improved processes
- strategic growth.
Evalution Management partners with Compass Advisors to work with clients who are ready for a revolution in their business.
The success of an 80/20 implementation depends on 2 things: top down support and clear, measureable goals. To achieve these goals, implementations consists of three steps:
Step 1: Analyze Your Business
Step 1 includes analysis of customers and products, interviews with the business unit manager and top level team, a review of financials, walk-through of facilities, review of organization structure and compensation, sales and customer service including go-to-market strategies, production process and inventory controls. Unless there are remote locations, this step takes about 2 weeks to complete.
Step 2: Train You and Your Executives
Step 2 is a 2-day training seminar for senior management and 1 organizational layer down, with a maximum of 25 attendees. The purpose is to introduce the 80/20 concepts with the clear understanding that overhead reduction is not only a goal of the parent company, but a tool to make your business more customer focused, stronger and more profitable. Attendees will work in groups and develop task lists, deadlines and work assignments.
Step 3: Implement 80/20
This is the most important step and is the tool through which 80/20 is adopted by the organization. It is critical to the successful implementation of 80/20. Step 3 consists of 2 monthly meetings, one with the business unit manager (about 2 hours), and a 4 hour meeting with the management team as soon as possible after each monthly income statement is finished and the scorecard is prepared. The 80/20 advisor is available throughout the month to review plans and answer questions.