Using the 80/20 Rule to Increase Profits | Peter Philippi
Consultants often advise C-Suite executives on the best ways to navigate and simplify the complexities of their organizations and industries. Many leaders are convinced they need help sifting through the complicated details of business in order to untangle the web and get back to basics. The fact of the matter is, complexity means cost, and there are many companies dealing with unnecessary spending that can be avoided with the right processes in place.
Our guest this week is Peter Philippi, CEO and founder of Strategex, Inc, a Chicago-based research and consulting firm that focuses on supporting businesses toward sustainable and profitable growth. Peter has more than 30 years experience working with leaders to drive change and focus in their organizations. He says most businesses treat all customers equally and strive to deliver an exceptional experience to each and every one. The truth is only 20% of a company’s clients create 80% of the profit. When businesses are able to identify their star customers — whom he calls “raving fans” — they will become better aligned to create and sustain profitable growth.
Change begins in the C-Suite; when leaders are open to new policies, strategies and structures, they will truly transform their businesses. Paring down resources is the first step, and empowering a small team to drive the change necessary will increase profits. Once the right rules and policies are put in place and practiced regularly, companies will grow, brand loyalty will soar and raving fans will support the organization through and through.
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