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Sustainable Service, Part 2

posted Jul 27, 2011, 3:02 PM by Andrew McCoy   [ updated Jul 27, 2011, 3:07 PM ]
[The following is an excerpt from a Column in Electrical Contractor Magazine that is written by Fred Sargent, of Sargent Electric and me]

Beginning the Journey

Vilfredo Pareto loved to garden. One day he realized that 80 percent of the peas from his patch came from 20 percent of the pea pods. That proportion matched the ratio that he had already uncovered elsewhere in his investigations as the economist who gave the world the 80/20 rule. Whether they have known the Pareto Principle by that name or simply as a rule-of-thumb fraction, people have understood it as an axiom in countless applications for decades since, and it is alive and well in the electrical contracting industry.
Electrical contractors would agree that a majority of their revenue comes from a small number of their customers. Large electrical contracting corporations that have publicly traded stock dutifully point out in their annual reports—which should be a warning to potential investors—that they also depend on a relatively small number of their customers for the biggest part of their total income. Most of the contractors we know, who are not compelled to make such legally mandated disclosures, would cautiously admit to the same kind of over dependency. The 80/20 rule might not apply exactly, but it fits closely.

Read the full article online in Electrical Contractor Magazine: