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Saturday, March 18, 2006

Computer Networking Business: Operating with the 80-20 Rule

Owning a computer networking business requires many new management skills. Just because you own a networking business doesn’t mean these skills come naturally to you; they must be refined and shaped to fit the particular business. Using the useful tool of the 80-20 rule will help owners better run a computer networking business.


This rule means that 80 percent of the work is done by 20 percent of the people and can be applied to even the aspects of the computer networking business that do not relate directly to employee output.


Eighty percent of profits in a computer networking business typically come from twenty percent of the customers. This means that most of your time should be devoted to these twenty percent, as they offer the most profit potential.


A computer networking business needs to focus on twenty percent of the expense categories, because typically this twenty percent created eighty percent o f the waste. Controlling these expense categories can help owners discover new profit potential.


The 80-20 rule also relates to employee problems. Typically if you are experiencing employee problems they are coming from twenty percent of the employees. If you address issues with this twenty percent by either motivating them or replacing them, you can help resolve the problem. Employees doing eighty percent of the work should be rewarded for a job well done.


A computer networking business manager should identify strengths and talents, and give jobs that aren’t related to them should be given to employees strong in other aspects. Only eighty percent of the business successes will be due to twenty percent of your efforts.

Blogged By: Computer Consulting 101