Page 121: The 60% Rule

Page 121

GO IT ALONE!

to plan an activity that you know you will always need to undertake as opposed to one that you can anticipate automating or outsourcing as the business evolves.

There is something in the human spirit that cries out against the philosophy of the 60% Rule. Few people are comfortable saying “It’s good enough, and I need to focus over there.” Yet the focus that the 60% Rule can engender is a powerful force. If the basis of your firm’s competitive success will exist in one area, it is absolutely essential that you find the time and energy to focus on this area, even if that means that other functions are handled less well.

Are there exceptions to this rule? Yes, of course—primarily with front-office activities. When customers are involved, it’s important not to let things slip through the cracks. Good customer service and follow-up are essential for the success of any business. But it may be that a system that is following the 60% Rule will not be as convincing in attracting a small group of customers. This is in essence a failed sales effort, as opposed to poor service for an existing customer. Here, the 60% Rule should apply. It cannot be a priority to spend large amounts of time ensuring that the sales effort targeted at a small group is superb, when the same time could be put into increasing your total profitable sales on a far larger scale.

There are several other aspects to the 60% Rule that are worth noting:

  • The value of just getting your business going is enormously high, as detailed in Chapter 10. Once you start, you begin to establish crucial learning. If you recognize that no matter what you do at the outset you will probably be substantially changing the business after the first few days, then flexibility becomes more important than perfection.

  • Speed to market is in itself a virtue. Time becomes a value that overrides perfection. If the priority is speed, then it

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GO IT ALONE! Copyright 2004 by Bruce Judson. Reprinted by permission of HarperCollins Publishers. All rights reserved.