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To: Satish C. Shah who wrote (11142)12/12/1997 9:29:00 PM
From: Night Writer  Respond to of 97611
 
Satish,
I found a little higher percentage on my book of business. 20% of clients accounted forabout 65 to 70% of business, A closer examination over several years disclosed an even more interesting fact. The 20% of clients that accounted for the lions share of business were not the same 20% of clients ever year. Therefore we could not just focus on the 20% and expect to prosper.

We reviewed clients once a year and rated them into 5 catagories. They ranged from Nucleus to No Opportunity. It was a way to allocate our time and expense appropriately. It was a little more complex then this simple explanation. but it worked really well.

Senior management never seemed to understand that the 80/20 rule was a guide and not a rule. Consultants sold it so hard everyone believed it was true without checking the actual numbers.

NW