I suspect you’ve heard of the Pareto principle, also known as the 80/20 rule.
In its simplest form, it states that 80% of the results come from 20% of the efforts made. Further studies on the principle have shown that it often extends to far more than efforts made, and frequently describes the results produced by a team or a group of people.
If you look closer, you’ll find that the root of the 80/20 split of results is often based solely on differences in things members of the group do and do not do. If you review the habits, techniques, tactics and strategies regularly used by the 20% who get 80% of the results vs. the habits, techniques, tactics and strategies regularly used by the 80% who get 20% of the results, you should find some causative differences. I suspect some of them will be obvious, while others will require further study to determine why those behaviors contribute to a major difference in outcomes.
Some have postulated that of the 20% who are most successful, there is a 5% that leaves the remaining 15% behind, despite the success of the 15% group. I think you might find yet another set of behavioral differences between the 5% and the 15%. This doesn’t mean any of these behaviors are bad, though they certainly could be.
That the 80% is behaving differently from the 20% (and especially the 5%) doesn’t mean that they are unsuccessful. In my experience, their level of success tends to be closely related to their mindset and their belief in what they can accomplish.
If you’re part of that 80% and don’t want to be, you have some decisions to make. You have to decide that you won’t remain in the 80%. You have to decide to learn from those who are achieving the things you want to achieve. This may seem obvious, but I can tell you that this is a most difficult choice to make and a decision that many people think they make, but infrequently stick to. It’s too easy to keep doing things the way you’re doing them. It’s easier to not have to explain what you do and why, particularly since most of the people you interact with will seem to need a justification for why you do things differently. You’ll hear it from your staff, your contractors, your vendors, your family, your clients and your prospects.
Clinging to the behavior of a group you don’t want to be in is what keeps you in that group. More often than not, it’s central to what’s holding you back.
In any group of similar people, the behaviors of that group are substantially different. Whether you’re in a room of professional pool players, professional skeet shooters or “self-made” billionaire business people, history has proven that 20% of the people in that room are making the majority of the advances and having the majority of the successes – DESPITE the fact that everyone in the room is a member of that group. Perhaps more telling is that 5% of the people in that room are far ahead of the remaining 15% in that 20% group – even though they’re peers.
Why? Because the 5% is doing something different. That 5% will likely be the first to leave the group behind, because they’re already pulling away.
Markets are groups too
Your market is no different. No matter where you are in your market, I’ll bet you can identify who the leaders are, who’s in the middle and who is near the bottom.
When you see someone in your market do something that works, do you see if it works for you? When you do something that works, does anyone else in your market try it?
When you see something in another market that you appreciate, do you try it – even if you have to put a twist on it to make it work for you? Do others in your market do this?
Can you easily identify things that competitors in your market are doing that are holding them back? If you shine that light back on your own business, are you doing any of them?
If you aren’t a leader in your market, can you identify things that the leaders in your market are doing that you aren’t doing? If so, what’s holding you back from implementing them?
Improvement is a choice. Your place in your market is a point in time, it isn’t a foregone conclusion.