Thursday, November 16, 2006

Powerful Management Skill-20/80 concept

There was end of the year 2003 where I just promoted as senior assistant manager and HQ had made a cross changes between the managers among the operating centers. He was posted to Kerling estate as Acting Manager and I still can remember the first day, he had emphasized on 20/80 concept to all the staff because he noticed that this operating centre was not well managed. But none of us understood what message he wanted to channel to us. Everybody just knotted their head and pretend understood including me.

What is 20/80 concept? Basically, the concept is simple and I used 2 easy examples as below:-

1. Use 20% our time to gain 80% information (just like all the internet users use internet to look for information without going out)

2. Use 20% effort to gain 80% result or objective.

Talk is easy but how to apply to our management environment? There was my big question mark appeal in my mind when I was a planter. If you are planter or work in huge company, I think you will face the decision making problem. Everybody will consult with you for decision. Planter is the worst. Even the worker family problem you need to solve also. We don’t have a personal time for our self unless you take the vacation and forget the estate life. But you still can’t escape, once you back to estate. Similar problem will appear. Everybody is depending on you. There why people used to say planter is the king of estate.

Ok. Let me continue what is 20/80 concept. I found the answer from Chinese paper on yesterday 15 November 2006. The article emphasize why a lot of top management fail in their management team and these group do not realize that workers are main asset to hit the objective (profit). Here they related the 20% is the manager or leader and the others 80% is workers. So, you are the 20% and are the vital part in your company. But how are you going to tackle your workers? Buy them lunch?

The article had advised the management to avoid by making decision by said there 2 phases
1. ‘Yes’ or ‘No’,
2. ‘Right’ or ‘Wrong’.

This is not a primary school where you can’t say you are right or you are wrong. Thus, as a responsible leader, you need to ensure you have good reason to support your decision before people queering you.


Below is my case study on handling decision.

Handling problematic worker

Ø Most of the oil palm or rubber plantations are facing labor shortage and recruitment from foreign country is normal to a planter. Similar to me when I was in Kerling Estate, I was short of rubber tapper during that period and HQ had sent a batch of foreign Indian workers to my operating centre. I need to train them before they were able to tap and this was a normal producer in my management team. Wages will be low compare with tapper. However, this batch of foreign Indian was cheated by their agent because the agent claimed that they will earn high income when in Malaysia. The worst part was the agent said that they will be working in air-condition factory and when they reach at estate, they just realized they are cheated. We were pity of them.
Ø Most of them do not want to work at estate environment but I as a leader I need to change their mindset of estate environment. I need to make fast decision to keep them. For them money is important because they spent plenty of money to come over and their family need money too. I went down to the ground and met this batch of workers and told them if they were willing to earn high income. I can provide them with a condition. Learn how to tap the rubber tree where the price was increasing everyday and I foresee it was an opportunity for them to earn good income in estate. Finally, they listened to me and started learning the skill of tapping. Before I left the estate, they were well paid with they effort and my farewell party also was organized by them.


This is a win-win situation for both parties. I was respected by the estate workers and this 20/80 concept should be shared among the young planter. Even through I had left the plantation, I think I still can contribute my knowledge and share with your all.


Thank you for read my article.

4 comments:

Norazihan said...

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Carol said...

you know this sounds to me like it applies to all areas of life not just in management. Sometimes feels like 80% - 20% here at home too! Great post thanks.

Carol said...

This is a great post...I personally have the 60 - 40 thing going on at home!

Anonymous said...

Hi Lai,

How are you? I am sure you are happy with what you are doing
now. The following are my views in respond to your 20/80
concept.

1. Most of the time people spend 80% of their effort to get
20% result which is dissapointing, right. But, why people
don't realize that? The reasons are :

1. They do not know how to prioritise, and they
don't give enough thoughs into problems ( no brain?).
2. It is so easy to give excuses and everybody has
learnt that when something has failed ( attitude problem?).
3. Lack of passion for what they are doing ( always
think that they are victimised ?).
4. Poor leadership quality from their immediate
superior who provides poor guidance ( company fault?)

2.When you received that batch of "mis-match" workers, you
did not provide any excuse because you know if they left you
are the loser. Due to your passion to you job, you re-design
to change that "mis-match" workers' mindset and become a
group of "matching" workers. Your perseverance and
innovativeness has reflected on your high degree of passion
towards your job which to me is the biggest positive
attitude one must have.

3. Now, the question is how to breed leaders with the
ability to realise the concept of 20/80? To me, everything
lies on how passionate are they towards their profession and
not just because of the pay cheque. So, you see choose the
right people with right attitude is so important instead of
academic preference.

4. Anyway, is nice to know you as a person/friend.

Regards,

Kei Yoong