Maximise Your Success: How Account Managers Can Leverage the 80/20 Principle

The best leaders and organizations in the world utilize one principle above all others for achieving success. This one principle helps these leaders and organizations to be incredibly effective and efficient in everything they do. The rule was originally developed in 1906 and 100 years later it is still relevant today. It’s called the '80/20 Principle' - or the 'Law of the Vital Few'.

The 80/20 Principle was observed by French-Italian economist and sociologist Vilfredo Pareto. As part of his work, he spent time analyzing land and wealth ownership in Italy at the turn of the last century. His research revealed that 80 percent of Italy's land was owned by 20 percent of the population. Pareto was intrigued and began looking at other neighboring countries. He found the same imbalance applied. After further exploration, Pareto discovered that the 80/20 Principle did not just apply to wealth but also to everything else.

In essence, the 80/20 Principle refers to an imbalance between input and output. For example, '80 percent of sales come from 20 percent of your customers' or '80 percent of your happiness comes from 20 percent of your activities'. The lesson is to focus on what is most important and minimize time and effort on less important items. Because leadership involves focusing on that which is most important, the principle can be applied.

Sometimes, as an account manager, you can feel overwhelmed by the number of things you need to do or know. The key is to focus on what Joseph Juran deciphered from the 80/20 Principle as the 'Vital Few'. By applying the 80/20 Principle, you can begin to focus on the vital few tasks that really matter to you, your team, your agency, and your client.

Identifying the Vital Few

To start applying the 80/20 Principle in your role as an account manager, you need to ask yourself what are the vital few tasks you do at work that add the most value. Make a note of all the things you do during the week and then highlight those tasks which you feel have the biggest impact on your job. It could be things like 'researching your client's industry' or 'spending face-to-face time with them'. It could also be 'making sure you have clear meeting agendas' or 'sitting with creative more to discuss ideas'. Whatever they are, make note of them and start to focus your attention there as opposed to the less important jobs.

Prioritising Client Relationships

Strong client relationships are often the cornerstone of success in advertising account management. By leveraging the 80/20 Principle, you can identify which clients and interactions yield the most significant benefits. Invest more time and resources into these high-impact relationships. For example, if 20 percent of your clients contribute to 80 percent of your revenue, prioritise nurturing these relationships through personalised service, strategic insights, and proactive problem-solving.

Streamlining Workflows

Efficiency in workflow is another area where the 80/20 Principle can be invaluable. Evaluate your daily processes and identify bottlenecks or repetitive tasks that do not significantly contribute to your goals. Implement tools and automation where possible to reduce time spent on these low-impact tasks. This could involve using project management software, automating email follow-ups, or delegating administrative duties.

Enhancing Team Collaboration

As an account manager, fostering collaboration within your team is crucial. Apply the 80/20 Principle to team dynamics by focusing on the top 20 percent of collaborative efforts that lead to 80 percent of your successes. This might involve regular brainstorming sessions, cross-departmental meetings, or team-building activities that enhance communication and creativity.

Continuous Improvement

The 80/20 Principle is not a one-time strategy but a continuous improvement process. Regularly review your tasks, client interactions, and workflows to ensure you are focusing on the most impactful areas. Solicit feedback from your clients and team members to identify new opportunities for applying the 80/20 Principle. This iterative process helps in maintaining efficiency and effectiveness in your role.

Applying the Principle Beyond Work

Don’t just apply this rule to your day-to-day job. It can apply to your whole career, sports, and life outside of work. Focus on the 'Vital Few' and you will be surprised by the results. For instance, in personal development, identify the 20 percent of habits that contribute most to your growth and well-being. This could be daily exercise, reading, or quality time with family. Similarly, in sports or hobbies, focus on the 20 percent of techniques or practices that yield 80 percent of your improvement.

If you want to learn more, a number of leadership experts recommend reading Richard Koch's book 'The 80/20 Principle: The Secret to Achieving More with Less'. This book delves deeper into the concept and provides practical examples and strategies for applying the 80/20 Principle in various aspects of life and work.

By embracing the 80/20 Principle, you can transform your approach to account management, leading to greater efficiency, effectiveness, and ultimately, success.