Can You Make New Product Development 19 X More Effective?

Making new product development 19 X more effective might seem oddly specific. There's a reason for that number.

Most folks know that the top 20% of your new product efforts will deliver 80% of your results. The so called Pareto Principle. But few realize what else is embedded within that same 80/20 distribution.

The top 5 % generate 50% of the results – Wow

The bottom 50% deliver only 5% of the results – Ouch

That means the top 5% is 100 times more effective than the bottom 50% – Stunning

Comparing the productivity of the top 5% of your efforts to everything else the math is (50/5) / (50/95).

That works out to 19 so 19 X more effective!

Of course, the question is how can you determine which of your efforts are in the top before you start. That way you can double down and focus all your efforts on the winners. That’s what a good assessment process and good prioritization can do for you.

And if you’d like to learn more about 80/20, here are several suggestions.

Additional Resources:

The 80/20 Concept: The Secret to Achieving More with Less by Richard Koch

Like 80/20 on steroids for new products

This article originally appeared in the Pipeline Accelerator Blog