Has anybody heard of the Pareto Principle? According to wikipedia, known also as the 80-20 rule, it states that in many events, 80 percent of the effects come from 20 percent of the causes. It's a common rule of thumb in many aspects of business.
For example, 80 percent of a call center team's performance comes from only 20 percent of the team members. Make a stack ranking of your agents and notice that the top 20 percent are the ones pulling your team stats up. It also works in reverse, 80 percent of your team's performance is being dragged down by only 20 percent of the team. Make a stack rank of your team again and see that the bottom 20 percent is pulling your quality, AHT, Sales and what have you's.
How is this any relevant? In many cases when you do a stack rank, you are shown data which you can customize your approach to your team. Knowing the top 20 percent and bottom 20 percent should make you understand you who need to focus, help, coach and make action plans for to get your team performance higher. As a fair principle and fair leader, one should always have the time for each and every subordinate one has. But in reality, you only have one body and the demands of being a leader/manager does not allow you to be at many places and attending to the needs of everybody. In my humble opinion, a leaders slash manager's main responsibility rests on his/her own team performance. Therefore, it is good management when you know focus on areas where your team performance needs help. It is good leadership when you make your people understand why you are doing more for people who need help rather than giving everybody equal attention.
3 comments here!:
Hi,
By profession I am in callcenter. The 80/20 principle is very new to me. After reading this principle, I am thinking to test it. My personal thinking is the key player of the call center is the team leader of the team. Sometime it happen in the call centers that to give extra time to some special candiadte to get the best performance of the team. This 80/20ratio is also depands on the performace of the candidates.
Vaibhav Pandey
http://www.callcentersindia.com
India’s one and only end to end CISCO based IP network.
I work for one of the biggest call centers in the Philippines and, yes, we have begun using the 80-20 rule (or 70-30 for some instances) during to improve various arease of the business.
Actually, the Pareto principle is one of the parts of the Six Sigma methodology which really assists in determining the appropriate areas to care for and improve.
Yes indeed. Most large call centers in the Philippines have been trending on using Six sigma as a Quality and performance tool. Although the trend has been going on for at least a couple of years already.
Sykes, HSBC, Sitel and only a few of the call centers I know personally that have integrated Six Sigma in their processes.
Thanks for the comment.
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