Vilfredo Pareto, CardioCel and Admedus

The 80/20 rule, discovered by the Italian economist Vilfredo Pareto, dictates that for many events 80% of the results come from 20% of the causes. This realisation first came to him when he was in his vegetable garden where he found that 80% of his produce came from just 20% of his plants... Although when he applied this principle more broadly (such as land ownership in Italy, 20% of the population owned 80% of the land) he found that it was true there also and there are many other such examples.

You might be wondering now what the hell has happened to Stonemasonn? Has he finally lost it?

Perhaps, although hasn't Pareto's rule also been true of CardioCel sales in The US? That 3 of the 12 sales people (25%) we had working there were basically responsible for the great majority, perhaps 80%+ of sales? Which is why Wayne Paterson had to take a broom to the whole outfit and reduce the sales team there from 12 to 3 before scaling it back up again?

(CardioCel sales from September quarter to December quarter, $1.6 to $1.9 million with drastically reduced sales teams.)

This is where it gets exciting and why I am so optimistic about ADAPT sales going forward....

The dead wood is gone whilst the company kept the 3 (25%) stars producing 80% plus of sales. They have now added another 9 high quality members to the sales team who have undergone specialised, high performance training to get them to the same level as the 3 stars...

+ a new marketing campaign has been formulated

+ brought in Eileen Peterson (Vice President Field Force Optimisation) who has had an incredible career holding senior leadership roles at Synovis/Baxter.

+ brought in Natalee Kestler (Vice President North America) another star from Baxter

+ new systems by which to measure essential sales criteria/performance.

+ 15 solo/individual sale reps, not directly employed by Admedus but who'll be selling ADAPT products.

So Wayne Paterson, confronted by Pareto's law has turned it on it's head and the results going forward will be outstanding.