Warranty Processing Services
– 80/20 Inspired
– 80/20 Inspired
Improve your effectiveness by applying the Pareto Principle
In 1896, long ago before warranty processing services were a concept, Vilfredo Pareto discovered the 80/20 principle. Pareto observed that there exists a universal occurrence where incidences, activities, and results naturally divide themselves into 80% and 20% groupings. Later In 1999, the principle was revived in the classic business novel written by Richard Koch. The rule as applied by Koch, states that 80% of our efforts and time spent in a pursuit generally result in only 20% of success and that the remaining 20% of our efforts result in a whopping 80% of our success! The formula mysteriously appears in almost all categories of career and life.
Koch concludes that most successful people have determined their most effective activities and efforts. They attempt to allocate more of their time to those items while reducing their efforts (wherever possible) in the more extensive less effective areas. Thus, modifying the results of the formula. For instance, the rule dictates that a mere 5% transfer of energies from less effective efforts, would result in an 18.75% overall increase. A 10% transfer should deliver outcomes of an astounding 37.5%, while still allocating 70% of energies for less efficient tasks.
These realizations among business professionals are one of the driving forces behind the outsourcing trend of the new millennium. Outsourcing, like warranty processing services, has proven to be a useful tool for companies to enhance the results of the 80/20 rule. Successful dealers understand that the objective of their entire business is to sell cars, parts, and service customers. These activities result in 80% of your success! Now consider the time that is spent by key employees and managers towards all sorts of nonproducing activities – activities like warranty administration (To learn more Click Here). Contemplate the hours spent reviewing, hiring, training, and motivating warranty administrators, or worse processing and evaluating claims. Adequately handled warranty administration is essential at avoiding costly expense that seeks to erode your capital and even threaten your business. However, increased efforts and time in warranty administration may improve your collections, but it will never take your dealership to the next level. Warranty administration is, at best, a secondary and reactive source of income. It is only driven by outside influences and your success with primary objectives.
While outsourcing is a useful tool, it is best to consider a couple of things before an activity is outsourced. The questions to ask before seeking an outsourcing solution is; “Does handling this activity help us maintain our competitive edge, or help us achieve our primary objectives?” If no, “Can someone else do it better?” If yes, then it is one you really should consider outsourcing. Thanks to TBF Enterprises, Inc. and Jupiter Warranty Management, warranty administration is exactly one of those activities. We handle the entire process from start to finish. We make it simple and seamless, and yes, we even do it for less! It really is a “no-brainer.” Contact us today; we would love to help you rediscover your focus with a warranty processing service that delivers consistent and reliable results!