The 80/20 rule states that 20% of your efforts will yield 80% of your results. In other words, out of every 10 things you do, there are only two things that will give you the most results. This is true in many instances including business.
So today, I want to share with you some of the things I think should be in the 20% of things you do to create most of the results you will get.
1. Strategic thinking:
As an entrepreneur, you shouldn’t be in the place where you’re fighting fires every day. If that’s your current reality, then find a way to get out of it because it will rob you of being able to do perhaps the biggest task of a CEO, which is to think strategically about the business. This refers to thinking about how to win considering the various changes in your operating environment at every point in time.
Strategic thinking is about being 2 steps ahead of everyone else. It’s about thinking 5 years when others are thinking 6 months. If this is missing, you will mismanage all your resources and make the wrong prioritization resources.
2. Engaging with customers:
Dear CEO, if you’re not speaking with customers regularly, you’re losing touch with the realities of your business. You hear of organisations that mandate everyone to engage directly with customers once every year or two.
Some CEOs talk directly to customers every Thursday for example. Why? Your people may miss something you will see. It also provides a great source of feedback to understand what is happening in your business.
You always want your customers to have the impression that you’re reachable just in case they need to escalate an issue. No matter how small, connect with customers once in a while.
3. Engaging mentors and getting feedback:
Any person’s mistake you refuse to learn from is bound to be repeated. Never be too busy to engage with those who have gone ahead of you. Ask questions. Each one of us is blind to ourselves so we need someone to tell us objectively what we’re not seeing because feedback is the breakfast of champions.
4. Strategic marketing initiatives:
Several activities can be put in this category. This includes building relationships with key suppliers, customers, bankers and lawyers. Extrapolating the 80/20 rule, 20% of your customers give you 80% of your revenue. Build relationships with them. Attend their events as well as other events where you can build relationships with key people in your industry.
One key activity for me is building relationships with potential investors and financiers especially if you don’t think you need them. Remember this: you will always need cash, a relationship with an investor or financier is one you will forever need, trust me.
5. Holding meetings and reviewing reports:
The CEO’s job is to make it easier for everyone in the business to do their jobs. The CEO designs systems and removes bottlenecks.
The way the CEO gets feedback about what is going on in their business is through meetings and reports. Whatever is not checked does not happen in the way the owner wants it. Whatever is not measured cannot be managed.
As long as there are 2 people in an organisation, you would have weekly meetings where you review and agree on what is to be done. In these meetings, you also hold people accountable for results otherwise you will run a mediocre company at best.
