80/20 Executive Introduction — Preview Transcript
Automatically transcribed; unclear speech is marked.

[00:00:00.000–00:00:00.720] Hello, everyone.
[00:00:01.400–00:00:03.760] Welcome to the executive introduction to 80/20.
[00:00:04.740–00:00:05.760] My name is Bill Canady,
[00:00:06.240–00:00:08.600] and I'm the author and creator of the 80/20 CEO.
[00:00:09.460–00:00:10.480] And I'm so glad you're here.
[00:00:11.340–00:00:13.140] Today, we will help you take the first step
[00:00:13.140–00:00:15.000] in leading your business to success,
[00:00:15.560–00:00:17.220] offering you the tools and knowledge
[00:00:17.220–00:00:19.520] needed to become an 80/20 [unclear].
[00:00:20.140–00:00:22.400] We'll cover, what is 80/20?
[00:00:23.340–00:00:24.760] Segmentation and simplification.
[00:00:25.980–00:00:28.320] Zero-Up impact process and examples.
[00:00:28.320–00:00:33.380] Zero-Up enablement and growth. Expanded implementation and timelines.
[00:00:34.760–00:00:39.420] Now let's start learning how to fly. If you haven't used 80/20 before, you've
[00:00:39.420–00:00:43.740] come to the right place. First, let's cover a brief history on how this
[00:00:43.740–00:00:49.680] principle came to be. Discovered in the early 1900s by Vilfredo Pareto, the law
[00:00:49.680–00:00:54.540] of imbalance, also known as the Pareto principle, finds roughly 80% of
[00:00:54.540–00:00:57.040] consequences come from 20% of causes.
[00:00:58.120–00:01:00.960] In 1980, ITW became the first business
[00:01:00.960–00:01:02.280] to adopt this mindset.
[00:01:03.140–00:01:04.540] Their great success resulted
[00:01:04.540–00:01:07.120] in numerous other businesses following suit.
[00:01:07.760–00:01:09.400] When we apply 80/20 to business,
[00:01:09.880–00:01:11.800] we find that 20% of our customers
[00:01:11.800–00:01:13.480] generate 80% of our revenue.
[00:01:14.140–00:01:15.580] The same holds true for products.
[00:01:16.280–00:01:18.860] 20% of our products account for 80% of our sales.
[00:01:19.500–00:01:20.980] These are the basics of 80/20.