Look away from the average: in business the extremes rule

Business is not done on the average. In business, the exceptions, the extremes, rule.
(Richard Koch, brilliant author of The 80/20 Principle)

Have you ever noticed how relevant achievements in business are usually very far from having a regular, ordinarily approached, source of inputs?

It’s not by looking at what’s average that your business will elevate itself to success.
Even if traditional business analysis does focus quite heavily on average patterns, try and adopt the very different take, both for yourself as a manager and for your company.

Instead of focusing on the processes or the sales that generate average results, start investigating on what is generating peak performances. Start asking yourself questions like:

  • What’s causing the biggest positive impact on the business?
  • What’s causing the lowest performance on the operations level?
  • What’s the very major source of profits for the business? What’s the very minor?

You’ll soon find that, by looking away from the average pattern, you can gain a much useful perspective:

you’ll magically find yourself focused on the few elements that generates the most outcome, in terms of revenue, of productivity, of customer satisfaction and so on, touching any area of the business.

You can start doing more of what’s extremely relevant and you can steer your whole company in this sharply focused direction.
It might come as a bit of a surprise at first, but you’ll soon notice that even if you take some energy out of the ‘average’ processes and sales, they’ll still be producing the same average results.

In turn, the more energy devoted to what’s really important will produce exponential results.

Most of the times, you lose nothing but your own chains (aka, limitations deriving from ineffective approach to things).

Category:

business gems

Time to Read:

5 min