The value of the Pareto Principle for a manager is that it reminds us to focus on the 20% that matters. Of all the things we do during our day, only 20 percent really matter. Those 20% produce 80% of our results, so we should identify and focus on those things. When our ‘time robbers’ begin to sap our time, we need to remind ourselves of the 20% we need to focus on. If something in the schedule has to slip, if something isn’t going to get done, we have to make sure it’s not part of that 20%.

However, there is a management theory that proposes to interpret Pareto’s Principle in such a way as to produce what is called ‘Top Gun Management’

Those advocating this theory suggest that since 20% of our people produce 80% of our results, we should focus our limited time on managing only that 20% – the so-called “superstars”.

In my opinion, the theory is seriously flawed because it overlooks the fact that 80% of our time should be spent doing what is really important, and that includes developing all of our people.

Helping the good to become better is much more important than helping the great become terrific, because in actual fact, those superstars actually require less managing, and flourish by being given space to succeed.

As managers, we should be involved in every stage of sales team development, from recruitment, training, coaching, mentoring, and hopefully succeeding.

Their success or failure is our success or failure — this is our primary responsibility, and is how we should be judged.

I have no time for any company that adopts a “hire and fire” mentality: Not only is it an incredibly irresponsible way of treating other human beings, it is also financially and commercially naïve. It ignores the initial costs involved with locating and recruiting new personnel, as well as the remuneration outlay, with no, or very little return. This strategy becomes a self-perpetuating cycle of failure, and any success relies on luck.

Making the right decisions at the front-end, the recruitment stage, have become critical, but that is only part of it: Having the ability to coach a sales team is now a pre-requisite for any sales leader, and sadly, 80% are not qualified to do so, which is precisely why their average tenure is less than two years.

News: Lots of news this week, including the launch of “Leading from the Front” – a new initiative from JFA – more tomorrow.

Source: Jonathan Farrington’s Blog