“Pareto’s Principle”

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Having just read Tim Ferriss “The 4 Hour Work Week” whilst undertaking the quarterly review of our business I was reminded once again that Pareto’s Principle is our top strategic imperative.

Our top performers (the $1m plus consultants) get 80% of their revenues from the top 20% of their clients…FACT!

An equation backed by a simple desire to focus hard on getting deep relationships across a small number of clients. This creates trust, opportunity and therefore competitive advantage. Whilst it may take a little longer to show returns, given time,  your returns will be far greater.

Yet just about every new consultant I meet seems determined to build a long client list. Maybe this stems from the desire to get a few early wins but I reiterate that this strategy is flawed. Slow down, invest in  fewer clients and aim to build cultural and institutional knowledge, which in turn creates trust. It’s this trust that will leverage you into big returns and protect you from competitive pressures. You will also find yourself enjoying your work a lot more!

Next meeting you have with your manager tell them you want fewer clients!