New Tools Explain How the 80/20 Rule Predicts Results: Dr. Betsy Kruger Coached Business Leaders at Her "Spark Your Profit!" Workshops to Focus Their Marketing Decisions.

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Dr. Betsy Kruger used intuitive tools to convey the 80/20 rule predicts results at her "Spark Your Profit!" Workshops in The National Entrepreneur Center on March 20, 2015.

Aesop's Keys to Profitable Marketing

Dr. Betsy Kruger

Use your noodle to predict results.

Vilfredo Pareto, a Professor of Political Economy at the University of Lausanne, Switzerland, discovered how inputs predict results in 1897. For over a century, scientists have confirmed the 80/20 rule predicts results, but few people realize it is a universal law of results. Dr. Betsy Kruger created innovative teaching tools to convey how to improve decisions with the 80/20 rule.

Pareto discovered how inputs predict results by plotting various types of data on a graph. The data points consistently traced the same upward bending curve that scientists call the Pareto Distribution.

His students coined the phrase, the 80/20 rule, to explain the point where the curve changes its direction. This point predicts that the top 20% of the inputs will produce 80% of the results and the bottom 80% of the inputs will produce 20% of the results."

The 80/20 rule applies to other points on the Pareto Distribution. The square of the 80/20 rule predicts that the top 4% of the inputs will produce 64% of the results. Near the tail of the distribution, the cube of the 80/20 rule predicts that .8% of the inputs will produce over half of the results.

Pareto suspected that the Pareto Distribution was log linear so he plotted various types of input and output data on log-log scales. As a result, Pareto confirmed that the square of the Pareto Distribution traces a straight line.

Many scientists, researchers, and business leaders have confirmed that the Pareto Distribution predicts results, but the most impressive was published in 2005.

Mark E. J. Newman, a physicist at Bell Laboratories, drew a large random sample of numbers and counted the repetitions among the numbers. His experiment verified that the top 20% of the numbers produced 80% of the repetitions.

Despite irrefutable evidence that the 80/20 rule predicts results, few people intuitively understand this universal law. During her "Spark Your Profits!" workshops, Dr. Betsy Kruger used swimming noodles to convey that the 80/20 rule predicts results.

Kruger represents inputs on the horizontal axis by putting 20% of a green noodle and 80% of a red noodle on a 1-inch dowel. She represents results on the vertical axis by putting the remaining pieces on the other dowel.

Dr. Kruger holds the dowels at right angles so that the short lengths of the noodles are touching. The green noodles show that the top 20% will produce 80% of the results, whereas the red noodles show that the bottom 80% of inputs will produce 20% of the results.

Then Dr. Kruger ties a cord to the far ends of the noodles and pulls the cord toward the intersection of the axes. The cord is the right length when her hand marks where the two axes change colors. When Dr. Kruger tilts the axes by 45 degrees, the cord drops between the long noodles and represents the Pareto Distribution.

Finally, Dr. Kruger separates the two dowels to represent log-log axes and stretches the cord into a straight line. The noodles intuitively convey that the 80/20 rule is a universal law that predicts results.

In summary, scientists have confirmed since 1897 that the 80/20 rule is a universal law that predicts results. Dr. Betsy Kruger uses swimming noodles to help people intuitively understand the 80/20 rule.

Her workshop was inspired by Dr. Betsy Kruger's award-winning bestseller. "Aesop's Keys to Profitable Marketing" shows small business leaders how to predict results with the 80/20 rule.

Kruger’s first academic book, "Top Market Strategy: Applying the 80/20 Rule," enriches graduate marketing courses, whereas, "Aesop's Keys to Profitable Marketing" enriches entrepreneurs.

Her next marketing supplement, Marketing Plan Templates for Enhancing Profits," shows students how to profit from the 80/20 rule. They learn to develop profitable marketing plans for several types of businesses.

In addition to her books, Dr. Betsy Kruger writes articles, speaks to groups, and coaches businesses to revamp their marketing plans. For over 25 years, Kruger has conducted marketing research, commercialized her software, and taught business courses. On a regular basis, "Enterprising Women" publishes her articles and posts.

Her consultancy, Strategic Power, is rated A+ by the Better Business Bureau and is certified as a women-owned small business by WBE and WOSB. Kruger has coached more than 2000 start-ups to succeed. Her mission is to spark profits with the 80/20 rule.

Kruger and her husband live in Daytona Beach, Florida, and love outdoor activities like snow skiing and swimming.

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Strategic Power
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