Tag: Career advancement

The 95:5 Rule

The 95:5 rule

Have you heard of the 95:5 Rule? Based on research by Professor John Dawes, this rule states that at any given time, only about 5% of buyers are actively in-market for a particular product category. The remaining 95% represent future buyers who will enter the market when the need arises.

But what does this have to do with your career? Turns out, quite a bit.

Think of your career journey like a long hike. At any given point, you’re actively exploring a small number of opportunities – maybe 5% of what’s out there. These could be new roles within your company, a promotion you’re chasing, or skills you’re actively developing. This is your “in-market” 5%.

However, the vast majority of potential paths are not yet on your immediate radar. They represent the 95% of future possibilities that will become relevant as your circumstances and goals evolve over time. Just like a hiker can’t see the entire trail at once, you can’t pursue every career option simultaneously.

To make the most of the 95:5 Rule in your career:

  1. Actively invest in the 5% – Give your full energy to the opportunities you’re currently pursuing. Whether it’s crushing your current role, learning a new skill, or interviewing for a dream job, be “in-market” with gusto.
  2. Keep an open mind to the 95% – Don’t get tunnel vision. Keep scanning the horizon for new possibilities, even if you’re not ready to pursue them yet. This could mean attending industry events, growing your network, or simply staying curious.
  3. Trust in the journey – Just like a hiker has faith that the trail will open up new vistas, trust that your 95% of future possibilities will become clearer with each career step. Each role, project, and connection is shaping your path.
  4. Regularly reassess – As the “in-market” 5% shifts, periodically reevaluate your career priorities. Are you still energized by your current focus? Is it time to bring some of that 95% forward into active exploration? Pausing for self-reflection keeps you agile.

By embracing the 95:5 Rule in your career, you can balance active pursuit with open-minded exploration. Focus on the most impactful 5% while trusting that the 95% will continue to reveal new opportunities as you grow. Your career hike may be long and winding, but it’s all part of the adventure.

Executive Communication: Five Immutable Rules

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Effective communication is not a one-size-fits-all endeavor; it’s a nuanced skill requiring adaptability and precision, especially when interacting with executive leadership. In corporate hierarchies, effective communication with executives sets the tone for a relationship marked by trust, value, and long-term engagement. This blog post elucidates five rules that are critical for mastering the art of executive communication.

Rule #1: Elevate Your Perspective – Escape the Minutiae

Executives often operate at an altitude where minutiae blur into the backdrop, overshadowed by overarching goals and strategic imperatives. The daily grind might be crucial to operational effectiveness, but when communicating with executives, it’s pivotal to rise above the operational details.

In one of my early career interactions with a C-suite executive, I started explaining the nuances of a project. Within minutes, the executive interrupted, saying, “Give me the 30,000-foot view.” That incident was a paradigm shift in how I approached executive communication thereafter.

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Rule #2: Exude Confidence

Nothing builds credibility faster than a demeanor marked by unshakable confidence. Executives are more likely to invest their trust and resources in individuals who radiate assurance and poise.

I remember walking into a high-stakes meeting where multimillion-dollar decisions were on the table. When I presented our department’s strategy, I conveyed absolute confidence. The result? Our budget got approved without a single alteration.

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Rule #3: Align with Financial and Strategic Objectives

To resonate with executives, frame discussions in terms of ROI, profitability, and market relevance. Articulate your plans by highlighting their contributions to the organizational bottom line.

When I had to pitch a new initiative to our CEO, I chose to focus on its impact on market penetration and shareholder value. This alignment instantly grabbed the CEO’s attention, cutting through the noise of other competing initiatives.

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Rule #4: Adapt to Their Time Frames

Executives think in terms of quarterly results, yearly achievements, and multi-year strategies. Understand this elongated time frame and frame your contributions accordingly. Alignment in time frames builds rapport and facilitates trust.

During a strategy meeting, our COO was looking 5 years ahead. When I presented my department’s 3-year plan in that context, the entire room felt a palpable alignment.

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Rule #5: Exercise Business Acumen

Being tactically skilled is a given; what sets you apart is strategic foresight. Exhibit your grasp on market trends, profitability drivers, and value addition to align with executives’ overarching business goals.

When our company was at a strategic crossroads, I was asked for an opinion. Instead of picking sides, I presented a SWOT analysis showing how each option would affect the company’s market position. My business acumen was appreciated and became a crucial part of the decision-making process.

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Final Thoughts

In the world of executive communication, there is no room for mediocrity. It demands a specialized set of skills—conciseness, confidence, and alignment with both financial goals and time frames, bolstered by a deep-seated understanding of business imperatives.

If you find yourself making common mistakes in executive interactions, such as being overly verbose or failing to align with financial objectives, consider executive coaching. It’s an investment that pays dividends in enhancing your career trajectory.

To discuss personalized coaching opportunities, please book a call with the speaker.

Your mastery in communicating with executives could be the defining factor in propelling you into their inner circle, thereby unlocking avenues for influence, impact, and career progression.

What rule resonated the most with you? Share your thoughts in the comments below.

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Video: Tips for Effective Executive Communication

Disclaimer: All experiences shared are based on personal observations and are intended to aid readers in improving their communication skills. Names and specific situations have been altered to protect confidentiality.