Tuesday, December 9, 2008

Pareto's law and the 80 % maxi rule

You probably have heard about the Pareto principle (also known as the 80-20 rule) that states that, for many events, roughly 80% of the effects come from 20% of the causes.This principle was named after Italian economist Vilfredo Pareto, who observed that 80% of income in Italy went to 20% of the population.It is a common rule of thumb in business; e.g., "80% of your sales come from 20% of your clients."
We can apply this principle to the software demonstration : 80% of the deal you win are the result of 20 % of the demo and presentation you give, 80 % of the impact you have on the demonstration audience is a result of 20 % of the message and features you provide to them. That means 20 % of your preparation work will cause this 80 % emotional impact that at the end will drive their decision and your revenue.
And as 20 % of your work provides 80 % of the result you get, the corollary of this for software demonstration is that 80 % of the work preparation is generally enough for success. In the majority of the cases, once you have done the 80% of your work ,all the 20 % stuff you are going to add in order to be "perfect" won't be necessary,this additional work will be probably useless and may be boring with too much details.
Many time software demonstrations and presentations would have been better if their authors have stopped their work at the 80 % of their home work. Very often, the additional 20 % time turns to be not only a wasting time but a destructive one.

That's the 80% maxi rule that works for outstanding demo but also for many aspects of life : Never exceed 80 % of your time or 80 % of your own capacity !!!!
it is true for food because it is healthy to eat only until 80 % full
it is true also for running : each time you go beyond the 80 % of your own cardiac capacity, not only you do not improve your stamina but on the contrary you decrease it.

In order to be more efficient and to avoid negative improvements, we need to learn how to identify when we have reached our own 80% level of capacity and we have to learn to stop a work when the result is enough : that means when we already have made 20 % of the job that will drive 80% of the expected results and furthermore we have made a 60 % additional work for the other 20% upcoming results
ps : slides above comes from the presentationzen website

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