Continuous Improvement (Rule of 1%)

Continuous Improvement (Rule of 1%)

Business is the world’s most competitive sport where the game and season never end. It is 7 x 24 x 365 x Forever. Why? Because every hour of every day someone is out there playing hard to beat you – take your best customers, go to market faster, etc. The only constant is change. Staying ahead of the competition then requires continuous and never-ending improvement. In reality, if you are not growing, you are not staying the same, you are atrophying. Commitment to improving something by 1% every day is the easiest and most effective way to maintain an edge.

Example: As part of their annual development plan, a sales professional commits to improving their consultative selling skills to executives. If the seller starts at 1 and improves their skills by 1% every day, by the end of the year, they will be 38 times better than when they started. The equation is 1 * (1 + 1%) ^ 365. Improving your effectiveness at something (consultative selling skills to executives) by 38 times is a substantial increase in performance. If everyone in the organization did the same thing, imagine the compounding effect for the company.

Lessons Learned

  • The only constant in business is change.
  • Maintaining an edge and staying ahead of the competition requires continuous improvement.
  • If you improve something by 1% every day, by the end of the year, you will be 38 times better at it.

All contents copyright © 2012, Josh Lowry. All rights reserved.

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