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Manage What Matters: The Pareto Principle, ABC Analysis and How to Manage by Exception

There aren't many surprises when managers see a ranking of their top-selling products. What often is surprising, however, is how dramatically sales are concentrated.

"The 80-20 rule" is a commonly used phrase and a common expectation. When managers see it objectively applied to different slices of their business, the idea that "perhaps we shouldn’t manage all of our products by the same rules" begins to register.

When you begin to apply exceptional strategies and policies to the stratified product segments that the ABC Analysis process identifies, you'll begin to make an exceptional impact on each segment.

In addition to numerous examples of how the 80-20 rule applies in the real world, and thoughts on what the Pareto Principle can mean for your business, our free white paper lists the 7 steps that are required to run and regularly update your ABC rankings, as well as 10 innovative tips on how to apply ABC Analysis to manage what matters.

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