Beware of experts

[Andy Peters]

It takes 20 minutes for this ...financial analyst to explain that 80% of the company's customers generate only 20% of the business. He wants to turn this around so 20% of the customers generate 80% of the business. And that's his three-year goal.

http://www.computerworld.com/article/2479710/shark-tank--the-value-of-erp.html

So what that means is when one of his big customers drops him, he's screwed.

 

[DaveP]

So what that means is when one of his big customers drops him, he's screwed.

Exactly, that is the most stupid business model to have, I have personal experience of that happening.

DaveP

 

[john12ax7]

I think you guys kind of missed the point of the 80 / 20 thing. It's more a commentary on the math skills of the analyst.

 

[Phrazemaster]

If 80% of customers are generating 20% of revenue, mathematically, then the remaining 20% of customers are already generating the remaining 80% of revenue so...yeah...good call PRR.

But this is rather normal in business - that's why it's called "The 80-20 Rule."

 

[JohnRoberts]

If 80% of customers are generating 20% of revenue, mathematically, then the remaining 20% of customers are already generating the remaining 80% of revenue so...yeah...good call PRR.

But this is rather normal in business - that's why it's called "The 80-20 Rule."

The Pareto principle (also known as the 80/20 rule, the law of the vital few, or the principle of factor sparsity) states that, for many events, roughly 80% of the effects come from 20% of the causes. ... Pareto developed both concepts in the context of the distribution of income and wealth among the population.

The law of the "virtual few" has many implications for business management and economics (like why there is poverty or uneven wealth distribution).

In business this gets applied to managing cost/benefit of individual customers and even employees (many are not worth the effort), and in product management the profit contribution from each SKU. Of course applying this requires consideration of more factors.  Sometimes low profit, low volume products help sell other high profit high volume products (AKA line leaders), and some problematic customers or employees can become your strongest advocate after you satisfy their demands.

JR

 

[Phrazemaster]

The law of the "virtual few" has many implications for business management and economics (like why there is poverty or uneven wealth distribution).

In business this gets applied to managing cost/benefit of individual customers and even employees (many are not worth the effort), and in product management the profit contribution from each SKU. Of course applying this requires consideration of more factors.  Sometimes low profit, low volume products help sell other high profit high volume products (AKA line leaders), and some problematic customers or employees can become your strongest advocate after you satisfy their demands.

JR

Good points. It's not always so straightforward to analyze things like this, is it?

 

[iomegaman]

I am a little confused...since I have been a project manager on US government jobs, military and housing, while you CAN sort of get away violating SOME building codes if you are the government, there are basic safety codes that NO ONE is exempt from, not even the almighty USA...

How do you build a high rise apartment building with inadequate safety egress and no sprinkler system? That shit falls under criminal negligence here and heads roll both government and NGO when it ever happens (and it almost never does anymore)...

The Feds here outsource the inspection process to the general contractor on projects over 2 million...in other words the general contractor is RESPONSIBLE for doing their own building inspections...no county or city inspectors EVER step on the property UNTIL the final walk through and then the FIRE FUCKING MARSHALL steps in and says yes or no to the whole damn thing.

The last project I did for the Feds was at the Grand Canyon and we had remodeled some training quarters for the Park Rangers...they had called for VOIP in all the apartments and thus had engineered to pull all the twisted pair and install fibre optic to the five dorm building...Fire Marshall showed up and said "Nope" you need a hard wired twisted pair from the fire alarm to the fire station and you have taken it out the ground...do it over, no certificate of occupancy...and the Feds HAD TO COMPLY...

Do they not have safety building codes over there? How does this happen?

 

[Jarno]

Apparently, they  were advised to go with a different type of cladding, but chose a cheaper one and saved 300k GBP that way......
The cheaper one can apparently only used for buildings up until 10m in height, but wtf man, even for those cases you don't want to use anything flammable. And to think polystyrene ceilings were used indoors in the 70's, horrendous if anything happens (dripping burning plastic, like coating a ceiling in napalm).

 

[fazer]

And to think polystyrene ceilings were used indoors in the 70's, horrendous if anything happens (dripping burning plastic, like coating a ceiling in napalm).

Not to mention PCB smoke.  Very dangerous fumes.  Also vinyl siding creates same problem in a house fire. 

 

[benb]

How do you build a high rise apartment building with inadequate safety egress and no sprinkler system? That sh*t falls under criminal negligence here and heads roll both government and NGO when it ever happens (and it almost never does anymore)...

I don't know, I can only imagine criminal-level kickbacks (well, they're all criminal, but in this case I'm thinking done to egregious levels) to the officials who approved it.

This may be the biggest thing since the Shirtwaist fire. That was over a hundred years ago, and it promoted stronger fire and other safety regulations, at least in the USA.
https://en.wikipedia.org/wiki/Triangle_Shirtwaist_Factory_fire

 

[emrr]

I just came back from Scotland....as with all of the EU, I'm amazed they let you put doors on public buildings so they open inward rather than outward.  As well the cross section of the burnt tower:  one elevator and one stairwell in a 24 story building, both in the same central space?!?!  No secondary exit!?!!  Mind boggling.

 

[sahib]

I just came back from Scotland....

Where have you been?

  as with all of the EU, I'm amazed they let you put doors on public buildings so they open inward rather than outward.  As well the cross section of the burnt tower:  one elevator and one stairwell in a 24 story building, both in the same central space?!?!  No secondary exit!?!!  Mind boggling.

That building was built at a time when a lift/stairwell layout of that kind was thought to be safe.

The internal doors can open inwards or outwards depending on the human circulation and the use of the space. However, the emergency doors with push-bar always open outwards.

 

[emrr]

Where have you been?

That building was built at a time when a lift/stairwell layout of that kind was thought to be safe.

The internal doors can open inwards or outwards depending on the human circulation and the use of the space. However, the emergency doors with push-bar always open outwards.

Dangit....you're in Glasgow.  I was there one night with a family group.  Don't know that I could have gotten away but if I'd remembered I'd have tried to catch you.  Otherwise, bases in Stirling/Inverness/Stornoway/Portree/Edinburgh, over 2 weeks.  Very interesting landscape differences.  Nice to catch summer solstice in the north. 

As far as I can think of in the US any commercial or public building door must open to the outside.  As evidenced by every American trying to use European restaurant/store/museum doors incorrectly. 

Never did sort the walking standard on sidewalks and stairways in Scotland....seems a free-for-all on sidewalks, stairs sometimes appearing to drive on the left like the roads, other times not. 

 

[currentstatus]

What happened in London has nothing to do with experts!

It has EVERYTHING to do with money and status.. the poor get the dregs and are mistreated.. they always have.

It's called hierarchy.. a playground for inhumane decisions.

 

[DaveP]

What happened in London has nothing to do with experts!

It has EVERYTHING to do with money and status.. the poor get the dregs and are mistreated.. they always have.

It's called hierarchy.. a playground for inhumane decisions.

Sorry, that is trying to bring politics into poor choices made by architects and planners  who had a duty to sign off on the project.

These are first generation tower blocks in need of renovation.  As designed they were safe as pure concrete does not burn and previous fires in the flats were contained.  They put plastic on the outside which allowed fire to spread, they made an illegal choice as the panels are not permitted to be used over 10M, so prosecutions will follow.  That's why I titled the post about experts.

If the poor do not have the means to house themselves, then other people are expected to pay for it, right?  My generation and those before me were brought up not to expect a free lunch.  I got married AFTER I had bought a 2 up 2 down in the East End of London with no bathroom and didn't have kids until we moved to a better place for them to grow up in.  To me that was called common sense, but I guess that's very old fashioned now.

I moved to France with my own resources built up after a lifetimes work and no company pension, I did not expect social housing.  I bought a wreck in need of renovation and it will be finished when I'm 70, so no instant gratification there.  I guess I must be some kind of weirdo?

DaveP

 

[sahib]

.........

It has EVERYTHING to do with money and status.. the poor get the dregs and are mistreated.. they always have.

......

Sorry.

That argument has sooooo passed its sell-by-date, at least in this country.

 

[sahib]

Dangit....you're in Glasgow......

Indeed.

Hopefully next time.

I am glad you enjoyed your visit.