Do you like this blog? Share with others!

Saturday, 31 October 2015

Sometimes the 80/20 percent rule is just not appropriate

Having worked in large business corporations for many years, I have observed a that many people blindly follow the "80/20" rule when strategically planning their services and operations. Many times I had problems with this approach, as sometimes the inability to serve one particular clients request, or frustrating their expectations, caused very serious negative impact on the business relationship (and, as a result, the loss of repeat business). Similarly, as a customer, I was often frustrated by the inability of banks, insurance companies, cable TV companies (and so on) to address my specific requests in a sensible way. Perhaps I do not even expect them to be able to address my expectations - all I need is them to acknowledge and understand my needs, making them valid and legitimate, rather than dismissing them with a "we do not provide this service because no one else ever requests something like that." Hearing such response makes me feel alienated, or even accused of trying to undermine the normal order of things. Not a pleasant feeling.

But there are exceptions, and these exceptions actually proof to me that 80/20 rule needs to be applied with much caution. Here is an example: I am often travelling on business, I must have stayed in various hotels more than 1000 nights. It happened to me only very recently that I had a little accident: my business suit trousers ripped on the side seam, and I had no other pair to wear ton he following day. I immediately recalled that many hotels provided sewing kits, which I usually ignored as a useless item. But at that time, such a thing would not be useless! I checked in the drawers and in the bathroom - I could not find one. I went down to the front desk and asked for one - and I was given one at once. My sewing skills are rather rudimentary, yet I was able to stitch the opening reasonably well, so I could wear this pair of garments on the next day.

And that event prompted me to think: how often the customers of the hotels need to use the sewing kit? For me, it was one time in 1000. Or 0.1%. Perhaps I am unusual, and perhaps the real need is around 1%. Had the hotel chain management wanted to apply the 8020 rule, they would have preferred to cut the costs and not keep the item that may be needed by such small number of customers. But they did not apply the rule, and I was happy that I did not have to spend half of the evening trying to work out how to mend my trousers.

The same applies to all other areas of life. If you are managing a business, or running your own, or just doing anything for other people, make sure you apply the 80/20 rule with caution. Sometimes the other person may need to mend their ripped trousers.


No comments:

Post a Comment

Please post your commments - include your own thoughts and considerations! (All comments will be moderated and, once approved, will appear on the blog withing a short time. I reserve the right to reject comments that are offensive, of commercial character, or simply inappropriate.)