In real life, organizations struggle with identifying and managing 20% of the causes. For many years, I struggled to find a better theory to address this challenge. Then one day, it struck me. Why not apply the Pareto Principle to itself for identifying the root cause of organizational problems?
So, I twice applied the 80% and 20% respectively to 80% and 20%. It left me with an approximate ratio of 50:1. 50% of the business goals are achieved by customer satisfaction. It is a no-brainer. But identifying one root cause that significantly impacted customer satisfaction was difficult. Product Quality, Service Standard, Pricing, many more factors impact customer satisfaction. I researched many companies and dug into my experience to identify what delighted the customer most.
I think delivering the product expeditiously to the customer is the single most critical factor.
Most organizations invest their time to save money. The great ones invest money to save time. Companies like Dominos and Amazon leverage the speed of service to achieve customer satisfaction. Time is a non-renewable resource. It makes sense to leverage it as a competitive advantage. It also provides a single metric to align all business processes and business decisions.
The rationale is straightforward. Investing in any factor other than time yields incremental results. Investment in speed results in exponential growth. Find ways to deliver faster to the customer, cut down cycle time, save time by eliminating/automating business processes. The impact on the top and bottom line would be phenomenal.
Comments