Veteran CEO Jack Truong has built his remarkable career on a consistent approach to business transformation that centers on what he calls the “80/20 rule.” This principle, which has guided his successful tenures at companies like 3M, Electrolux, and James Hardie, suggests that 20% of operational factors drive 80% of a company’s value.
When Jack Truong joins a new organization, his first priority is spending time in the marketplace rather than the office. “You’ve got to get into the market and really understand what’s going right and what’s not going right for your company from different constituents — consumers, customers, employees, and owners,” Truong explains. This hands-on approach helps him identify the critical levers that will create maximum impact.
Unlike many executives who make decisions based solely on financial reports and office perceptions, Truong invests significant time observing real-world operations. This comprehensive understanding allows him to develop strategies that focus on the vital 20% driving most of a company’s success.
This approach has yielded impressive results. During his leadership at James Hardie Industries, Truong increased market capitalization by more than $13 billion (up 370%), grew organic annual revenue by over $1 billion (up 45%), and boosted net profits by more than $260 million (an 85% gain) in just three years.
Truong’s methodology isn’t just about identifying key drivers but also ensuring proper execution. He emphasizes that creating business consensus is crucial for implementation success, using what he calls the “foreman and Norman” approach to communication that encourages open dialogue at all organizational levels.
For CEOs looking to drive significant transformation, Truong advises regular meetings to track results and make necessary adjustments. “You’ve got to be able to meet on a regular basis to really understand where we are with the results to make adjustments so that you can stay on course,” he notes.
The transformational leadership style that Jack Truong embodies demonstrates that business success requires both strategic vision and operational understanding. By focusing on the vital few factors that drive most results, executives can achieve remarkable business transformations even in challenging markets.
