Lafley’s P&G Brand Cull and the 80/20 Rule
Harvard Business Review
AUGUST 4, 2014
Indeed, companies focusing on those 20% customer segments that generate 80% of sales and/or profitability and/or sustainable growth markets and innovate differently from those who seek to serve everyone well. The demands of 80/20 criteria shifts the innovation emphasis away from more traditional financial metrics around DCF , IRR , and NPV and toward better understanding of how novelty preserves, protects, and extends the 80/20 franchise.