Judge Rules in Consultant?s Favor with 80-20 Rule
I opened the registered letter and was shocked. My best clients were joining together in a class-action suit against me. The letter stated that I had promulgated a false illusion of success by having them follow the 80-20 rule. It alleged that I brainwashed them into thinking that the 80-20 rule was a basic law of business and nature. They followed my advice and many of them had gone bankrupt.
I confess, I do quote the 80-20 rule like it is divinely ordained. Called by whatever name, the 80-20 rule reminds us that the relationship between input and output is not balanced. The rule states that a small number of causes is responsible for a large percentage of the effect, in a ratio of about 80-20. For example, it could be said that 80 percent of your profits come from 20 percent of your customers or 80 percent of your budget comes from 20 percent of the items and so forth.
The 80-20 rule is definitely biblical in its origins. It's my mantra. I start all my training sessions with a simple question. Although there are Ten Commandments, which ones do you think generate most of our sins? "Do not covet? " is obviously No. 1. The group usually argues over No. 2. Lately "Honor thy father and mother" has been the runner-up. (I guess with the increase in life expectancy, it has become much more difficult to follow this commandment.) We have a few laughs, and I make my point. Each commandment does not generate an equal amount of sins. "Do not covet" and at least one more could well make up 80 percent of our daily transgressions.
My audience loves the story. True, they would initially argue that the 80-20 rule does not apply to them. Their businesses are unique and such sweeping rules could not include them. However, I show them data and a lot of anecdotal evidence. I can be very persuasive. Finally they succumb and buy my book, training tapes, and subscribe to my Web site in order to follow my latest advice.
I reread the letter. I'm flabbergasted. I call my best customers, but they won't talk to me. They refer all my calls to their attorneys. My attorney warns me that this is not a frivolous lawsuit. I need to have a strong defense. We live in times when consultants are being sued by their clients for a lack of ethics, conflicts of interests, and down right plain stupidity. Consultants are paying hefty fines, even getting jail time.
I started working on my defense at the library. I researched the great scientific discoveries of the Renaissance. I believed that the 80-20 rule could be found in the footnotes of Sir Isaac Newton's manuscripts on the universal laws of gravitation. I was wrong.
An alternative, for sure, would be Charles Darwin's law of the survival of the fittest. The 80-20 breakdown seemed like a natural outgrowth of his studies of competition, genetic mutation, and the animals of the Galapagos Islands. Again no luck. I was starting to worry.
I did find some stuff on an Italian economist of the late 19th century, Vilfredo Pareto. He developed "Pareto's Law" which he presented as: log N = log A + m logX. When dumbed down it is the 80-20 rule. I was very excited. I showed it to my lawyer. "Forget it." I would lose the jury with any math beyond third grade.
I decided to tell my lawyer the truth.
My pals in high school promulgated the 80?20 rule. We were trying to figure out the probability of getting dates on any given Saturday night. We collected data from our classmates. Surprisingly a small percentage of the guys (20 percent to be exact) dated most of the girls (80 percent to be exact). These guys were considered the "in crowd" and always had dates. On the other hand my friends and I, "the nerds," the other 80 percent of guys, were always competing to get one of those few girls (the 20 percent that would date a nerd) to go out with us.
The rule applied in college too. Eighty percent of the beer cans could be found in front of only 20 percent of the dorm rooms. We knew because we collected them for recycling. (OK, we did it to get the five-cents refund available in politically correct California). It just seemed that everywhere I went this 80-20 thing worked.
My lawyer sounded encouraging for the first time. He could use this type of information to convince a jury. Initially, his strategy was to plea bargain and ask the judge for community service. Now he was ready to go for an acquittal and threaten to counter sue my former clients for defaming my professional name and character.
Did you see me on Court TV? Not only did I win, I got the judge and 80 percent of the jury to buy my book.
Hesh Reinfeld writes a syndicated business humor column. You can read additional examples of his columns on his website: http://www.heshreinfeld.com Or contact him at hesh1@comcast.net
 Google News Updated : Fri, 10 Oct 2008 23:49:19 GMT John McCain, Barack Obama on healthcare - Los Angeles Times
Los Angeles Times - How workable are the presidential candidates' health reform plans? Here's a summary of their proposals and a list of online resources for more information. In this economy, don't count on comprehensive health reform Fact Check: Would Obama fine businesses that don't offer health care? Publ.Date : Fri, 10 Oct 2008 23:27:40 GMT Notes on a Milk Scandal - Wall Street Journal
Wall Street Journal - By JOSEPH STERNBERG | FROM THE WALL STREET JOURNAL ASIA It's a question I'd never expected to spend much time thinking about. France pulls tainted Chinese food Tainted milk prompts new Chinese standards Publ.Date : Fri, 10 Oct 2008 18:28:15 GMT Wall Street, markets continue roller coaster - Bizjournals.com
Bizjournals.com - A roller coaster week on Wall Street ended with the Dow Jones Industrial Average down 128 points Friday after bouncing back from almost 700 points down in the day. Video: Wild Swings Drive Morning Trading Worst Week on Wall Street Ends Down Publ.Date : Fri, 10 Oct 2008 21:29:25 GMT GOP Alleges Nonprofit Voter Fraud - CBS News
CBS News - (CBS) This week Sen. John McCain and his running mate, Gov. Sarah Palin, went after one of the nation's leading voter registration groups which focuses its efforts minorities and low-income families and now being investigated for voter fraud. McCain Campaign Calls for Investigation of ACORN-Obama Ties Voter fraud accusations mar presidential campaign Publ.Date : Fri, 10 Oct 2008 23:21:41 GMT Emptying the Pac-10 notebook - ESPN
ESPN - USC is a perfect 8-0 vs ASU this decade, last losing to the Sun Devils in 1999. Over the 8 wins, USC has averaged 39.8 PPG. The Trojans are going for their 400th victory at the Coliseum. Trojans sense an opportunity with Arizona State USC, ASU to avoid second Pac-10 loss Publ.Date : Fri, 10 Oct 2008 22:31:02 GMT Two Banks in Midwest Fail - Wall Street Journal
Wall Street Journal - By JEFF BATER WASHINGTON -- The Federal Deposit Insurance Corp. on Friday announced the closings of two banks, bringing to 15 the number of federally insured banks that have failed this year. Two banks fold, bringing total to 15 failures this year Regulators shut small banks in Mich., Ill. Publ.Date : Fri, 10 Oct 2008 23:14:00 GMT Conflict Resolution Marked Career of Nobel Laureate Martti Ahtisaari - Voice of America
Voice of America - By Andre de Nesnera Conflict resolution marked the career of former Finnish president Martti Ahtisaari who has received this year's Nobel Peace Prize for his efforts to secure peace in various regions of the world. Video: Ex-Finland President Wins Nobel Peace Prize Martti Ahtisaari gets a deserved Nobel Peace Prize for a (failed) plan Publ.Date : Fri, 10 Oct 2008 21:23:27 GMT RSS Software |
PARLOT::Ebooks, Scripts,
Websites, and more... Here's a proven, and truly easy way to start increasing... Read More Opportunity Assistance Business Resource Center http://www.opportunityassistance.comAt first you... Read More A seasoned networker knows the real meaning of networking --... Read More In today's highly competitive business environment it is critical to... Read More Direct Mail CampaignsDespite the proliferation of communication facilitators--mobile phones, faxes,... Read More Value proposition is treated as the standards or service that... Read More This newsletter is full of opportunities staring you in the... Read More Do it Right.I receive postcards all the time. The other... Read More As a self-employed professional, you have two basic strategies for... Read More Everyone wants to feel like they're getting a good deal.... Read More If the promotional items you give out end up in... Read More One of the biggest mistakes we could make as business... Read More Behold! He with the light cometh!He shall light thy darkest... Read More The writing of good classified ads truly is an art... Read More When you attend networking functions, what kind of name tag... Read More Grant Businesses have a love-hate relationship with the Yellow Page... Read More If I were to ask you right now, what marketing... Read More What is a company profile? ... Read More Quit spreading those chain letters, nothing is going to happen... Read More Unless you've been in a dimly lit cavern for the... Read More As a professional service provider, you're paid for what you... Read More Websites have replaced the brochure as the "must have" marketing... Read More If anyone was to ask me what my greatest strength... Read More Multi-level marketing is the biggest growth industry in the 1980's.... Read More I recently drove by a business that had a sign... Read More
Adsense
websites
Large One?
Blowing Your Own Horn
Nine Advance Networking Skills for Seasoned Networkers
Standing Above The Crowd
Direct Mail Still Works!
Value Proposition is the Key to Success
Good News Travels Fast
2 Step Marketing
Marketing Messages: Your 10 Most Important Business Principles
Ditch Coupons Before Customers Ditch You
Business Promotional Items ? How to Stimulate Word of Mouth Advertising
Keep Costs Down and Keep the Marketing Strategy Simple
Wealth Knowledge & Power ? Lost Secrets From Ancient Masters
The Art Of Writing Classified Ads
Hello, My Name Is . . . What Your Name Tag Says About You
Do Not Consider Running the Same Yellow Page Ad until You Read This
The 5 Minute Marketing Plan
How to Develop an Effective Company Profile -- and Why
More Scams! Do you Really Believe It?
Baby Boomers - Marketing to the Me Generation
Your Secret Marketing Weapon
Putting Your Website to Work
Develop Your Curiosity And Increase Profits
The Bare-Bones Basics Of Multi-Level Marketing
In Sickness And In Health
Affordable and Reliable Web Hosting Starting at $4.49/Month
10 Elements Every Direct Mail Piece Should Have
Don't want your direct mail to end up in the... Read More
Send Postcards To Save Money and Cut Through E-mail Clutter
Use your computer to send personalized color postcards in quantities... Read More
How Architecture Rendering is Part of the Impact
Cartoons have gone from celluloid to digital. Movies have gone... Read More
The Marketing Plan and the Four P?s
The Marketing Plan section of the business plan demonstrates how... Read More
Gift Cards - Is It Time to Use Them for My Business?
You're probably thinking, here we go again somebody is trying... Read More
Loyalty Cards ? Tips To Consider Before Committing To One
Loyalty marketing has been around for as long as retailing... Read More
If My Work is Good Enough
"If My Work is Good Enough, I Shouldn't Have to... Read More
CD ROM Business Cards - Offline Marketing For Online Promotion
It's a great concept, - and it has a 'cool... Read More
These Four Things Will Make Your Direct Marketing Successful
Direct marketing is built on four things. The other way... Read More
Encouraging Contact
The small time promoter has to work hard and on... Read More
Package Your Products for Thunder Thigh Women - Big Butts Too
Wake up women (and you men too). I think we... Read More
Build Relationships
Personal marketing makes it easier to sell, by building relationships... Read More
The Easiest Small Business Direct Marketing Tip You?ll Ever Get
This really and truly is the easiest (and most profitable)... Read More
Work Backward And Make More Sales!
It goes against the grain, especially for those of us... Read More
The Real Marketing Genius
I spend a lot of my time reading books and... Read More
10 Packaging Tips That Will Make Consumers Buy Your Product
The customer is king/queen. We have all heard this mantra.... Read More
How To Be A First Class Marketer?
Did you now how to follow up a new customer... Read More
Effective Marketing for Small Businesses
Effective marketing for the small business begins with market researchIf... Read More
Your Secret Marketing Weapon
As a professional service provider, you're paid for what you... Read More
Do You Have This Important Tool in Your Marketing Arsenal?
Many business owners do not understand the authenticity and validation... Read More
Why Cutting Prices Is Like Cutting Your Own Throat
Why cutting your prices is like cutting your own... Read More
Adapting Blog Technologies To Corporate E-Newsletters
Every January, trade publications put out a list... Read More
Your Elevator Speech ? Have You Updated Yours Recently?
Do you have an elevator speech? Does it get people's... Read More
Online Mentorship Programs: Cash in on Your Expertise
Whether you're a former retail store owner known for your... Read More
Build a Dynamic Business - 10 Steps to Start You Off
It's where your employees are in a 'special place' when... Read More
Marketing |