Here's what's not changing . . .
A disproportionately small number of people/organizations are responsible for a majority of the production.
Pareto theorized that 20% of the people (The Vital Few) yielded 80% of the production while 80% of the people (The Trivial Many) yield only 20% of the production . . . 20% of what you do yields 80% of the results . . . and the construct from there is that to be successful , you've gotta know what your 20% activities are - and what your 80% activities are . . .
Knowing the difference is not quite enough ... You've also got to have FOCUS, accountability and rituals which keep you in your 20% (and out of your 80%).
It's a great theory, and done right it'll boost the productivity of anyone who pays attention to the principle.
Now . . , Here's what IS changing relative to the 20/80 Principle . . .
It ain't 20/80 any more . . . the gap is increasing (seemingly) daily as operations and efficiencies improve. The internet is a major contributor as it gives us all a layer of leverage that is extremely powerful and infinitely available . . . at very low cost. With the internet, we can now make contact with EXACTLY the right people at the "right" times (instantly).
So Pareto's theories of Trivial Many and Vital Few still hold . . . 80/20 is out the window.
If that's true . . . What's the new definition of 80/20?
85/15? - 90/10? - 95/5? - 99/1?
and who are these vital few and Trivial Many?
Are the vital few the biggest, baddest, multi-gazillion dollar producers in the market?
and the Trivial Many are simply everyone else, right?
I've been doing a lot of reading (mostly Seth Godin's "Meatball Sundae") . . .a ton of thinking . . . and even more observation and talking/communicating with people . . . and here's where I see things going:
The Vital few aren't just the megas any more.
Megas are those iconic producers with the HUGE presence in the market. These are the HIGH DOLLAR, multi-level, complicated organizations (Walmart, Target, Home Depot) or the mega-team in your market . . .
The Vital few also represent the businesses which have carved out special niches and are delivering (most likely) higher cost, higher quality, and more unique goods and services. These players in the market are (by themselves) insignificant in size and substance as compared to the megas, BUT they represent a HUGE number of niches (This is the Long Tail) and thereby collectively represent a relatively equal share of the market as the Megas.
I believe the Vital Few (including both the megas and the long tail) are capturing even as much as 99% of the production in most markets (99/1) . . . This is TOTALLY noticeable (and statistically provable) in the internet world.
So - to be "successful", if you're not wired to be a mega, that's OK . . . as long as you "get" the Niche concept. Read lots of Seth Godin's books to more fully understand - Meatball Sundae is a good start, A niche is the fulfillment of unique needs/wants of a very targeted group of consumers . . . People who will pay more for less because it gives them something more than a widget . . . Buying from you means feeling good and worthy - IMPORTANT - Part of the "club"
enough about the Vital few (my time is running out) - Who are the Trivial Many?
The trivial many are the "mid-Level" producers. These folks are plain vanilla and not "big" enough to capture sufficient market share to thrive. The consumers just don't notice them because the Megas are SCREAMING at them and Niche players are "COOL" . . . and so the Trivial Many whither away . . . perhaps burn themselves out marketing a not very exciting product or service and scratching and clawing for survival.
In good economic times, these Trivial Many can eke out a living even as they practice mediocrity . . . In rough seas, they sink.
FINALLY . . . Stand up and look at yourself in the mirror . . . Are you a MEGA?
If not - OK . . . Where's your niche?
Do you have the energy and creativity within you to find that slice of the market that no-one else is serving well?
Now!
Go fill that gap in your market and grab your share of the 1% :-)
Best,
b
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Barry Owen
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