80-20
Weapons-Grade Wisdom
Short Slaughters, Permanent Profits
The 80/20 Rule: Simplify Your Portfolio
Executive summary: The 80/20 rule in business says a small fraction of your products and customers generates almost all of your profit, while the long tail consumes a disproportionate share of your capacity, attention, and working capital. Most companies know this and act on it anyway only at the margins, because the tail is defended […] Read More
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Customer Concentration Risk: NVIDIA’s 92% Lesson
What Did NVIDIA’s Q2 Actually Reveal About Concentration? Why Is 92 Percent of Revenue Not the Same as 92 Percent of Resources? What Does 80/20 Squared Actually Tell You to Concentrate? Why Did NVIDIA Line Up $500 Billion to Build a Long Tail? What Happens When Operators Get the Split Backwards? How Do You Run […] Read More
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Apple Just Ran 80/20 Squared on Its Own Books
What Did Apple Actually Cut? The ITW 80/20 Rule: Subtracting the Product Tail What 80/20 Squared Does Differently The Three-Move Exit Nobody Connected The Price Tag on the Tail: $1B and $2.2B Why the Offer Got Wider While the Work Got Narrower What 1,847 Combinations Taught Me About Ranking How to Run 80/20 Squared on […] Read More
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4 Profitability Myths Killing Your P&L
Proprietary Strategy Framework: The Four Deadly Myths That Kill Profitability STAGNATION ASSASSIN / CHAPTER 4 / TARGET SELECTION THE FOUR DEADLY MYTHS Before you build the 80/20 Matrix, kill four myths that are probably destroying your profitability right now. Not just wrong — deadly. 01 THE MYTH “All revenue is good revenue.” THE TRUTH Revenue […] Read More
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Portfolio Optimization: 6 Subtraction Tools
Strategic Portfolio Optimization: 6 Framework Comparisons That Unlock Growth Through Subtraction Winners Win. Losers Linger. Resources are finite. Attention is finite. Capital is finite. The only thing that is infinite in modern business is the number of mediocre opportunities competing for your finite resources, and the executives who try to fund all of them are […] Read More
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Customer Product Profitability Matrix
Proprietary Strategy Framework: The 80/20 Matrix of Profitability — Customer × Product Diagnostic STAGNATION ASSASSIN / CHAPTER 4 / TARGET SELECTION THE 80/20 MATRIX OF PROFITABILITY Analyze customer–product combinations, not customers or products alone. This is where your profit engine and your value destroyers finally become visible. CUSTOMER VALUE TOP 20% BOTTOM 80% QUADRANT 3 […] Read More
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Fire Your Worst Customers: 5 Article Manual
Pruning Profits. Subtraction Scales. Every revenue dollar is not created equal. Some customers fund your growth. Others fund their own dysfunction with your margin. The conventional wisdom — acquire and retain at all costs — is the single most expensive piece of received corporate wisdom in modern business, responsible for trillions in unrealized enterprise value […] Read More
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SKU Rationalization Without Losing Sales
SKU Rationalization: How to Kill 80% of Your Product Line Without Losing Revenue Todd’s Takeaway Every B2B company I have walked into has been paying a Complexity Tax nobody measured. The tax sits in the changeover time consuming 20-26% of productive capacity. It sits in the engineering hours supporting SKUs that generate less than 5% […] Read More
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Why Your GM Ignores Your Strategy
You Told Your GM to Kill the Unprofitable Long Tail. You Also Pay Him on Total Revenue. Guess What Didn’t Happen. You told the GM in the January strategy offsite. You told him again in the Q1 review. You told him a third time in April when you pointed at a 2,400-SKU portfolio that had […] Read More
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