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Useful Tools – Pareto and the 80:20 Principle
“We couldn’t get our heads out of the trench for long enough to see which way the bullets were coming from”. The speaker was one of the many people I worked with; in my younger days, almost all of my male colleagues had been in the armed services. I thought that the expression was wonderful and much better than not seeing the wood for the trees. Over the years that I have been at work it has been very apt because, so often, people are fire fighting the small stuff so much that they can’t work on the things that would deal with the cause of all that small stuff.
My colleague’s problem would have been solved by what we call in management speak the helicopter view, but it is one of the reasons why the military always like to capture the high ground; they can see what is going on and that makes it so much easier to manage.
In business we have that dreadful expression “If you can’t measure it, you can’t manage it”. I say dreadful, because I’ve heard it parroted so many times by people who want to spend so much time measuring and pondering over the results that they rarely ever get round to managing anything, but the expression is true. The trick in making it work is in what we mean by measuring.
If you are under constant fire you don’t have enough time to do the job properly let alone start producing all sorts of statistics, but measurement doesn’t always have to be so formal. Try this as an example: Walk into one of the working areas at your firm and just stand to one side for two or three minutes. What do you see and hear? Is it quiet and calm, or are people looking harassed with ‘phones ringing and high levels of noise? Is it tidy or is there stuff piled all over the place?
What you have just done is measure with your eyes and ears and you will have formed a pretty accurate assessment of that team. This may well be one that you would not have got from their numbers, because the performance statistics may well show that the chaotic team are hitting their targets, but observation is every bit as powerful a measurement tool as the graphs that come off the computer: There is nothing wrong with measuring by rule of thumb.
If you are a young manager wanting to make things work better then start by using those eyes and ears that you got as standard equipment when you came into the world. Even when you are under terrific pressure there will be information that you can use to help you. You will know where your biggest problem area is, so think a bit about why. Pareto’s 80:20 principle suggests that 80% of your problems come from 20% of what you do, so try putting that to work. Say you are getting 10 calls a day from Finance about invoice queries. If you can put that one thing right that could mean those 10 calls stop, and then you suddenly have that time free to look at another problem. You won’t solve every one, but if you can start to give yourself time to stick your head up and have a look around you are on the way to gaining control.
And if your boss is into formal measurement, just tell them that you are working to the Pareto principle, the 80:20 rule. Pareto is a probability distribution, but also works as a rule of thumb.
It’s about 1150BC, and an FM in darkest Wessex has just taken a call
It’s about 1150BC, and an FM in darkest Wessex has just taken a call from an Egyptian pal he met at the recent FM conference. In the best traditions of the wonderful Bob Newhart, we can only hear one end of the conversation:
Hey Jabari, when did you get back?
Four months? Took me nearly that. Too bad the Romans haven’t started their road building programme yet eh? So how’s that pyramid project going?
Just started. So how big is this thing?
Wow! That’s going to take a lot of labour.
OK, so you can get plenty of people in from overseas? You must have a great benefits, healthcare and welfare package down there to bring them in, right?
Slaves! Can you do that?
You do it all the time? OK, so if that’s how it is. I guess you don’t have a socialist government then? Say, Jabari, how do you do with accidents working with stone?
About 10% of the workforce? How many of those are serious?
That’s just the fatalities! Ouch! Good job liability lawyers haven’t been thought of yet. So, tell me, how do you get involved as an FM while the place is being built?
Trying to head off hand over problems? Yes, we get them too, and FMs do spend a lot of time trying to make new buildings work. Who’s your architect on this one?
No, I wouldn’t know him. How many of these jobs has he done?
This is his first! Why not go for someone with experience?
You kill them at the end of the job? I know I’ve felt like murdering one or two myself, but you must have been pretty dissatisfied right?
Client policy, eh? Rather you than me. I wouldn’t want to be failing my KPIs down your way!
Right. So how long are you going to be using this building when they hand it over?
All eternity? Goodness! Now I’m into future proofing, but this is in a different league. Sooner or later someone will invent stuff we can’t even imagine, so you might want leave some sort of access, and maybe carve some instructions into the stone to say what you’ve done?
OK, well, look: this pyramid shape, it’s not great in terms of user friendliness you know? Over here we’re still strong on the roundhouse for now, but what you need are vertical walls, right? But stick with the pointy roof on top; believe me you do not want to go with a flat roof. So your square shape with walls would give you a great useable space.
Yes, we’re still on open plan, but we have this great new concept; you have interior walls to break up that space, and then you can separate the masters from the animals and the workers.
You already do that? How does that work for you?
OK, so you call them chambers. So how are your occupancy numbers on these pyramids with chambers?
That’s terrible! With that floor plan, even as a pyramid, you need to be getting a lot more people in than that. I know! This some sort of scam to keep the rates down right?
Oh! It’s a tomb for the king! Yes, I get it, so you’re thinking security. We just pile tons on earth on ours so no one can dig through fast enough to not get spotted, but if you’re all sand down there I see why you need so much stone.
Talking about stone buildings, I told you we’re trying to build some over here? Well, I managed to get a couple of big piles of decent stones assembled down in Wessex ready for when we get some demand. Funny thing though, you remember that craze for crop circles we talked about at conference?
That’s right. Well, some crazies got into our storage yards and spread all the stones out into circles and patterns!
No, I’m not joking. They even hoisted some of the damn things up and stood them on top of each other. Goodness knows how, but those Celts are strong lads, especially when they’ve been on the mead.
No, it’ll cost a fortune to tidy it all up again, so I’m going to leave them as they are and just take the odd stone when I need it. Mind you, there’s some religious group want to rent one of the sites for a festival.
Good point! I’ll put a clause in about no sacrifices. They make such a bloody mess.
Your money’s running out? OK Jabari. Good talking to you. Maybe see you again next conference.
great customer service starts from the top
Customer service has been prominent in my thoughts this week, especially as I have experienced some really good service, together with someone trying to put right something that had gone wrong.
Many years ago I came up with something that I called the Ghent Agenda, named in honour of some really good service I had experienced from hotel people first in Brussels and then in Ghent. It was a blueprint for our facilities management team to raise our game, and it did make a difference, but it is how you make these things happen that intrigues me.
It is the leader that sets the tone for the way their team will work, and various old and new adages describe this; setting the tone, leading by example, walking the talk and so on, and these are, like all such sayings, very true. More so than many realise, because the way a leader acts and behaves will have a huge influence on their team (very much in the way that children are influenced by their parents).
It is all very well to try and influence your team towards providing a high level of service, but how do you yourself behave? Is the example that you set one that you would like your team to follow as they deal with your customers? For example, how do you treat people? You may be good with your team, but how about others?
My premise here is that leading by example, or whatever we want to call it, comes from setting a personal standard first. If you truly want to be a role model then you have to become that model and apply the standard. There is a wonderful quote attributed to Sir Laurence Olivier during the making of the 1976 film Marathon Man. Dustin Hoffman’s character had to portray levels of exhaustion commensurate with having being awake for 24 hours or so, and kept himself up to experience the effects. When Olivier asked him what he was doing Hoffman explained his need for accuracy in portrayal, only for the former to suggest “Why not try acting, dear boy, it’s much easier”.
And that is the issue, acting is much easier, but leadership is not acting. If all you are portraying to your team is an act then you will be found out at some point, so you do need to live the role.
If your team here you tell them about the importance of giving good customer service, of treating people with respect, but then see you behave poorly towards others then how can they truly believe in the message when the person delivering it lets them down? And if you do not strive to apply the standards to yourself in everything that you do, are you not applying double standards?
We can’t be perfect. We are, after all, only human, but if we are going to try to achieve the highest standards then we have to raise our game. A record of continuous success does not come without constantly pushing yourself and your team, and that is what the better leaders do, and they push themselves hardest.
If you want to be that great role model for your people then try to apply the highest levels of behaviour in everything that you do; be polite and show respect to others, regardless of who they are. If you treat the ticket collector on the train or the barista in the coffee shop the way you want your people to treat your customers then you are setting the right tone for them. Lead from the front.
does your meeting space facilitate good decisions
Meetings are a fact of modern business life; they are one of the catalysts that help move business forward by getting people together sparking ideas, planning strategy and similar dynamic activity, or at least they should be, but all too often they are nothing more than a waste of everyone’s time.
Some of the reasons for meetings failing are in poor planning, preparation, chairing and team issues, but what I want to look at here is the room itself because that is something that facilities teams can influence and make a bigger contribution to business success that we might realise.
Often meeting space is fitted in around the office as best as we can rather than consciously designed and I’ve seen some horrors over the years. As an example, let me first set the scene: We were bidding to win the outsourcing of a service for an international business. On offer was a 3 year deal with options for extension, but the basic contract was worth around £5m. We were invited to present for 40 minutes plus 20 for questions, told we could bring 4 people and use an SVGA presenter. All pretty standard for such a session and we turned up prepared and rehearsed.
We were taken up to the room on an upper floor and on the corner of the building. As the door opened we could see that it was long and narrow. Three tables were end to end down the middle with 6 chairs either side and one at each end, and 11 of these were occupied. The door was in one of the short walls and one long wall and short wall opposite the door were windows through which the low winter sun streamed.
So basic maths will show that there weren’t enough seats, and common sense will tell you that we couldn’t project onto the door with any degree of success and to project on to the one possible wall meant that half the people would have to turn around and, in any case, the sunlight would wash out the slides.
As Bid Director I had covered for not being able to run the presentation; it’s always a risk, so you prepare for it. I’m also used to standing to present, so standing against the door for the hour that we were there was not really an issue even if it was unusual. As for the outcome, well, we got into the final two, so we did OK in difficult circumstances, but what was the point in making use of such a room for the buying team? The people facing the windows were covering their eyes a lot of the time to avoid being blinded and the solar gain was making the room like a sweatbox. We were only there for an hour, but they had five presentations to sit through and debate on, and I would question the quality of the decision making under such conditions of discomfort.
This is an extreme case, but I’ve encountered poor facilities in many offices and hotels that I have visited over the years. The point is that meetings are about human interaction, so having the right sort of space for people to interact in is crucial to making meetings successful. As FMs we can look at providing spaces that can be used flexibly and provide an environment in which people can be productive and contribute.
Decent meeting space is an investment, but it costs about the same to do it right as to do it wrong, so it’s well worth looking at if you can.
Showing courage when the chips are down delivers trust
Engendering the trust of your people is crucial to leadership and, without it, they will not follow for long, but it is also a key factor for those that the leader will be answerable to, for most business leaders are, themselves, answerable to a board, shareholder and investors amongst others. Each of these groups will have different agendas and serving each requires a division of loyalty that, in turn, is an area where many leaders fail.
What you need to be able to do is to do what is right. That is what is right to achieve the objective that you are expected to deliver.
Your people will have had this explained to them as you have sold them on what they need to do and when they need to do it by. You will have explained the importance of that deliverable and, if you have done your job well enough, they will have bought into it. They will trust you to be right but, more importantly, they will trust you to protect them from interference in their efforts to succeed.
Every business will have a way of working that may not be something that a functional or divisional leader can influence. We tend to call these things office politics and they are a fact of life for most of us. Now a leader needs to be on top of these things and be able to ensure that they are able to fight their team’s corner, but this is something that not all leaders are good at.
It is so easy to lose sight of what is right for the organisation when office politics come into play. Good leaders know when to fight these battles and when not to. They know what their priorities are and how to juggle these against their resources. They know what they have to do when things get tough; to make the right call every time.
There will be times when they have to go to their people and explain that the rules have changed and what was the goal is no longer so. They understand that they need to be truthful with their people because that is what will retain their trust.
Equally, those above the leader will need to trust the person that they have placed in a position of responsibility. There will be times when they have their own hard decisions to take and require the leaders of their businesses to deliver. This is another potential pitfall for the leader; when pressed to deliver something from above that could threaten their people, how do they call it?
Take someone with a long term project to deliver, but who is then faced with a requirement to cut headcount. This is a time for hard truths: You have to be able to look at the overall position and make the right call. Now that might be to accept the cuts, knowing that it will mean failing your project objectives, but in the knowledge that there is no other way that will work for the business. In that case there will be a hard sell to your team, but explaining the what and why and making sure that people understand is the right thing to do.
On the other hand you might dig your heels in and fight to show that there is another way to those above you. This might be a personal risk, but it is a better risk to go with what is right than to fold when to do so is wrong.
Showing courage when the chips are down delivers trust.
First impressions count, but you can’t judge a book by its cover
Two very conflicting statements, but both are encountered pretty much daily in business, so which is true?
We talk a lot about the first 10 seconds, the 30 second elevator pitch, the 6 word pitch and we micro blog in under 140 characters. We talk in sound bites and all know people who have the attention span of a gnat. Novelists have to grab their readers with a killer opening sentence or the book will go back on the shelf. A lot of things have that immediacy these days, so there is a lot to being able to grab attention.
Being able to do this is a good discipline anyway; to be able to scope a project or business plan on one side of A4 means that you have thought it out and, probably, have it right. To be able to put a point across in three or four sentences in a meeting is effective and saves everyone time. If you can cut to the chase and avoid all of the peripheral, often irrelevant, issues it is a great business skill and well worth practising.
I am a great fan of the three minute presentation as a discipline. To be able to report on your work area’s KPIs, to update on project progress, run through your plans for the next month or whatever in 180 seconds makes you focus on the important points. It also steers you away from bogging down with the worst excesses of visual aids and presentation tools. A three minute presentation is also easier to learn by heart, or maybe with just a few crib notes, and so it provides a great way of improving your skills at talking on your feet.
Making the right first impression may well get you hired for that job or win your company that piece of business, and there are a lot of sources of help geared to pointing you in the right direction. From the view point of the person selling, whether it is themselves a product or a service, I always recommend trying to master the approach.
But when you are the person hiring or buying, why are you allowing yourself to be so shallow? Why are you risking your business (and your reputation) on what can only be a kneejerk reaction? Let’s face it, would you really want to hire someone who made important business decisions without thinking things through? Sure experience helps you reach decisions quickly, and there are times when you need to make a snap decision, but are we really willing to accept that decisions are routinely made on gut reactions?
Yes, you can judge a book by its cover, but to do so is to run the risk of missing out on a gem, hence the adage being that you can’t. Perhaps it should really be that you shouldn’t, but my point is that, when you are making a choice, you should make as thorough as possible evaluation of your choices to give yourself the best chance of reaching the right decision.
My buying background influences that thinking, but so does my general management experience, the number of industrial accidents I have investigated, the number of disciplinary cases I have examined, the strategic and tactical plans I have evaluated let alone the hundreds of prospective employees or promotees I have interviewed and assessed.
Of course we have to sift, but the later stages of evaluating anything or anyone should be thorough. Making snap decisions at that stage makes very little sense, and I suggest that those that do are taking an unnecessary risk.
Is the customer king? Or is it the client? Why is the difference important?
Recently I’ve been doing some work with clients on the joys of customer service, in one case the delivery of product direct to those that have ordered it and in the other the delivery of service to various sites where the contract, and therefore the service level, has been placed with a central client.
In the former case things are straightforward; the product is requested and the customer advised as to when it will come. As long as the promise is kept the customer is happy and will come again, or at least in theory, because there are times when the customer doesn’t take account of the fact that what has been ordered has to be put somewhere when it arrives, and they don’t always realise quite how large a delivery might be. Back in my logistics days I had software developed to flag exceptional order quantities; “Do you really want 1000 boxes or did you mean 10 boxes of 100?” Far better to check than to send a lorry load out knowing it might all come back. It is all good customer service.
Where you are dealing with a centrally placed contract though things can get more difficult. Let’s call the contract placer the client and the recipient of the service the customer here. Now the client will specify a service level and this will probably be fairly well stripped down on price grounds, but what do they tell the customers to expect? It should be the client/customer organisation that ensures that they are able to play their part in the contract and sometimes the communication is good, other times it is nonexistent, but in most cases there is no effort whatsoever to make a connection between the two parts of the business and it is left to the contractor to be the interface.
One of the great benefits that I have enjoyed in my managerial career is to have worked in sales, operations and purchasing and so have seen how these three disciplines interlink (or not) and maybe I have a greater sense of perspective as a result, but I still recall a career low point when I took over an FM contract that had been centrally placed with no thought to what was going on at the sharp end.
Off I went to the first Quality of Service quarterly meeting of my tenure. We sat either side of the table with the client as they ran through the KPIs. Most were within the required standard, but a couple were not and we got the required dressing down. That dealt with what was actually contractual and relevant to what we were paid, but then we got on to “end user feedback” (complaints). Now there we got pretty well hammered by the people we were serving on a day to day basis in every area except for the ones where we were failing the KPIs, but it didn’t matter to the client because it wasn’t in the contract. They still went through the motions of giving us a hard time, but it was pretty half hearted.
We turned that contract round in spite of the intransigent client team by talking to the people at the top of the organisation about what they really needed from us, not to deliver just for them, but to enable them to deliver what their customers wanted. You have to think down the line.
Contracts should be about what a business needs to succeed, and should be flexible enough to adapt to changing needs. You should never paint yourself into a corner, should you?
Why am I so keen on planning and preparing for crisis management? I was born to it
I’ve written here a few times about various aspects of incident management and, as one or two have remarked, maybe I’m a bit of an anorak about these things. They may have a point because, to some extent, incident management has been with me since I was in short trousers.
My childhood was spent living on country estates, more that usually with a farm attached. We didn’t own these places, my parents worked there so that explains my interest in customer service; I was, in fact, born into service. But the incident management side of things comes from that background too. In recent years risk assessments have become a fad in many ways, but they are just a formalisation of what I was taught to do in the late 1950s by people who understood such things intuitively.
So how does what I learned all those years ago down on the farm fit with the management of modern property? Well take one sort of incident management that a typical facilities management team should have down pat, that of fire. One of the things that we handled with considerable frequency was fire. Not just the risk of fire (and I have seen a barn fire at close quarters), but managing fires that we would start on purpose. We would have at least one managed conflagration a week as we burned refuse, burned off fields, bracken or whatever. And when I talk about burning refuse I mean bonfires that the average village would be proud of on November 5th; you can create a huge weekly pile from a 50+ acre estate.
These things are not done willy nilly, they are carefully arranged, taking into account the wind, time of day and nature of what you are burning. A compost heap large enough to keep Time Team busy excavating it for a week will burn for days if it spontaneously combusts. Siting the bonfire, compost heap or whatever is carefully thought through. Precautions are taken and what you’ll do if things don’t go as planned are worked out. We were taught to understand consequences and about accepting responsibility.
On a farm or large country estate there is a lot of serious kit and danger lurks all around. As kids we were brought up to understand and respect things, so maybe it should be no surprise that it is so ingrained in me. That’s not to say that I don’t take risks; I do, but I think about it first. From what I learned as a child I got to think about things like always checking my escape route(s) when I stay somewhere away from home, like counting the seat rows between me and the nearest two exits when I fly, like my winter survival kit that I carry in the car from November through March.
I had the benefit of learning about these things to the degree that it became automatic. It was only later in life when I became responsible for large numbers of people that I began to think about it and to analyse what I was doing and why as part of developing drills and desktop run throughs. When you have a bloody great fire every week on purpose you are doing it for real, but when you are running big buildings, thankfully, you don’t, so you need to have dummy drills.
Practice does make perfect which is why I have ridden my teams hard on these things, and that is why we coped so well with some of the incidents that have described in these columns. It’s in my blood.
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