TIOL-DDT 206 · Wednesday, 21 September 2005 · story 2 of 5

The 80 – 20 phenomenon

• 20 percent of your sales force produce 80 percent of revenues
• 20 percent of your products account for 80 percent of product sales
• 80 percent of your visitors see only 20 percent of your Web site pages
• 80 percent of delays arise from 20 percent of the possible causes of delay
• 80 percent of customer complaints arise from 20 percent of your products or services
• 80 percent of complaints come from 20 percent of the employees
• 20 percent of you stock takes up 80 percent of your warehouse space
• 20 percent of your staff will cause 80 percent of your problems
• 20 percent of your staff will provide 80 percent of your production

And now Government has realized that 90% of the revenue comes from 10% of the assessees and may be 10% of your staff is responsible for this 90% revenue. Then do you need the rest of 90% of the staff and shouldn’t you pay this 10% a fat salary?

See our special column today for an interesting analysis of the LTU scene with reference to the 80 – 20 phenomenon.