Author: Frank V. Cespedes
You see Pareto’s Principle applied to sales all the time — the top 20% of a sales force produces 80% of a company’s revenues and margins — and it’s applicable in a variety of sectors. In B2B contexts, for example, rep performance in similar territories often varies by 300% between top and bottom quintiles, and in retail stores selling productivity typically varies by a factor of three to four. So it’s no surprise that a company’s usual response to stalled growth is to hire more stars.
There are a few problems with the hire-stars approach, however.
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