How is 80/20 applied? I can see if you're combining businesses and running a bigger business that it's easier, probably, in the end, to apply 80/20. But when you've got lots of little businesses, how do you apply it? And it's so decentralized and quite autonomous.

The short answer is you apply it per rooftop or per individual business. You perform a product and customer analysis for each business, graphing and tabulating all the data around customer products and the margins they represent. Then, you categorize them into the four quadrants of the 80/20 analysis.

How is 80/20 applied? I can see if you're combining businesses and running a bigger business that it's easier, probably, in the end, to apply 80/20. But when you've got lots of little businesses, how do you apply it? And it's so decentralized and quite autonomous.

Quadrant one customers are the ones you definitely keep. Quadrant four customers are those you're willing to let go. There's a subset of customers you hold onto but increase pricing for, and another set that are necessary evils you must keep for various reasons. This analysis is done by rooftop and is relatively straightforward, with clear definitions and KPIs to ensure correct analysis.