the 80/20

Testimonials

European ICT Company

This detailed testimonial covers the impact that Richard Koch and Robin Field had on this organisation. Short description of our company The company is an ICT services provider, specialised in supplying PC software and ICT services with 420 staff members, working in various operating companies in 10 countries.

The services include deployment, recruitment and selection, training courses, tailor-made software, satellite communications and the publication of magazines. The company also provides integrated software solutions for the textile industry at home and abroad, and Geographic Information Systems to Dutch local government bodies. The company has been listed on the Official Market of Euronext Amsterdam N.V. since 21 May 1999 and has been included in the Next economy segment as from 1 January 2002.

Most of the operating companies hold leading positions in their market segments. The operating companies work under their own name and with a high level of autonomy. The directors of the operating companies are responsible for the commercial and financial developments within their company and report to the Board of Directors. The presentation On 22 November 2002 the Board of Directors had a meeting with all Managing Directors of our operating companies. Therefore we invited Richard Koch and Robin Field for giving a presentation about the 80/20 principle. The presentations have caused a move in our organisation.

Before the meeting the participants had red the book “The 80/20 Principle – the secret to success by achieving more with less” on advice of Richard Koch. When Richard Koch and Robin Field gave their presentation; the participants were already a bit familiar with the 80/20 principle. Through this the both presentations had a very good elaboration. The examples which were used in the presentations were very clear. The participants recognize themselves in the examples. The presentations (and the book) worked like a “mirror” for the participants. They all thought they:

• were effective in their work
• were effective in time-spending
• were aware of the clients/products which are responsible for the greatest part of the income of their company; etc.

But after the presentations and reading the book; they all know better. The participants were very enthusiast about the presentations and have all practised it in their organisation. Through the book and the presentations the participants are waken up to the value of focussing to the right products; using their time more effective then they did before; etc. Based on the 80/20 principle the focus of the company has been changed.

How the 80/20 principle is used in the organisation

• The 80/20 principle has helped us to decide to devote itself fully to marketing CAD/CAM solutions and related services. By concentrating on these core activities, the organisation will be more tightly focused and the average quality of the turnover will improve. The company accordingly intends in the near future to seek partners to which all its non-CAD/CAM activities will be transferred. Our company has taken the first step in this direction by selling its general PC software distribution activities to an external investment company. The activities of the companies which have been sold will be supported in the coming years by the operating companies, under a service and profit-sharing agreement. This will enable the company to continue for several years to receive profit-related revenue from these businesses which it acquired in the past.
• We analysed our company-costs. Based on 80/20 principle we applied a cost-saving program for p.e. GSM use; external services (p.e. catering; cleaning) – we now have our own staff for this kind of activities.
• The 80/20 principle helped the Board of Directors to focus their management attention.
• We analysed our company-costs. Based on 80/20 principle we applied a cost-saving program for p.e. GSM use; external services (p.e. catering; cleaning) – we now have our own staff for this kind of activities.
• One manager has delegated the management of his mailbox to his personal assistant. She answers on 80% of the e-mails by herself. The other 20% will be done by the Manager himself.
• Some of our software distribution companies decided to change their product range. It seems that 80% of the business was caused by 20% of the products they had in their assortment. Now they only sell the products which are responsible for the 80% of the profit of the company.