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Whether to grow the top line, expand margins, create cash, or some combination of the three, 80/20 is fundamentally designed to unlock growth. 80/20 recognizes that not all growth is good growth which is why we use the 80/20 principles to drive outsized improvement in our businesses by delivering profitable growth (i.e., increased profitability on incremental revenue compared to an actual baseline period), fanatical focus on the customer, which leads to product and/or service innovation, and superior resource allocation approaches that enable us to create fulfilling and impactful experiences for our teams. It’s, therefore, not a project or an implementation or something that you’re ever done with; it’s an ongoing methodology for continuously improving your business month after month, year after year! In so doing, 80/20 enables our flywheel at Madison. It enables us to move closer to the point of impact with our largest existing and target customers, innovate faster than our competition, provide more opportunities for committed talent and generate more cash which enables more mission. By adopting 80/20, we make fast, educated decisions that drive our results while giving us a way to measure success and pivot quickly when needed.

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80/20 tools and KPIs to consider with this principle

• One Thing
• Moat creation/innovation
• Reverse-engineer the key ratio
• Top five accounts you wish you had
• Target selling
• Trade focus

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