With over 30 years of experience as a global business executive, I’ve had the privilege of working across a variety of industries and markets, primarily focused on industrial and consumer products and services. Throughout my career, I’ve come to realize that success in business often hinges on a few critical factors—a concept that aligns closely with the 80/20 principle, also known as the Pareto Principle.
The 80/20 principle 80 20 suggests that 80% of results often come from just 20% of efforts. This idea has proven invaluable in my journey as a leader, particularly in my current role as Chief executive officer of OTC Industrial Technologies. Overseeing a private equity-sponsored company with thirty operating entities, $1 billion in annual sales, 2000+ employees, and over seventy sites, I’ve seen firsthand how focusing on the most impactful initiatives can drive significant growth and profitability.
Setting a Vision and Aligning Stakeholders
One of the most important aspects of leadership is setting a clear and compelling vision that aligns with key stakeholders—whether they are customers, employees, suppliers, or shareholders. In doing so, you can rally an organization to focus on the initiatives that truly move the needle. This is where the 80/20 principle comes into play. By identifying the 20% of efforts that yield 80% of the results, leaders can concentrate resources on the most impactful areas, driving growth while controlling costs and increasing profitability.
Developing Strong Leaders and Management Teams
Another critical element of success is developing strong leaders and management teams. In my experience, fostering deep relationships and building a culture that emphasizes value creation is essential. This approach is embedded in the Profitable Growth Operating system (PGOS) that i developed. PGOS is a time-tested set of simple tools and processes designed to create value for all stakeholders. It emphasizes increasing the productivity of assets, boosting profits, and enabling better decision-making at every level of the business.
Driving Significant Growth at OTC Industrial Technologies
Since taking on the role of CEO at OTC Industrial Technologies, we have experienced significant growth—revenues have increased by more than 43%, and earnings have grown by over 78%. This success is a testament to the power of focusing on the right areas and applying the 80/20 principle. By concentrating our efforts on the most critical opportunities and challenges, we’ve been able to navigate complex regulatory, investor, and media environments, ultimately driving substantial growth.
The Profitable Growth Operating system (PGOS)
PGOS has been a cornerstone of our success. This system is designed to foster a common culture that prioritizes value creation across all aspects of the business. By applying the 80/20 principle within PGOS, we ensure that our efforts are concentrated on the most impactful areas—whether it’s increasing asset productivity, making strategic decisions, or developing leadership talent.
Education and Military Service: The foundation of My Approach
My approach to business and leadership is deeply influenced by my educational background and military service. I graduated summa cum laude from Elmhurst University with a Bachelor of Science in business Administration and earned my MBA from the University of Chicago, Booth School of Business. Additionally, my time as a veteran of the united states Navy instilled in me the discipline and strategic thinking that have been crucial in my career.
Conclusion
In business, as in life, focusing on the right things can make all the difference. The 80/20 principle has been a guiding force in my career, helping me to identify and prioritize the most impactful efforts. By aligning stakeholders around a clear vision, developing strong leadership, and applying the principles of PGOS, I’ve been able to drive significant growth and profitability in every organization I’ve led. As i continue to apply these principles, I remain committed to helping other owners and operators around the world achieve similar success.
