Management Background

Chris Tunnicliffe - Director and Managing Consultant

Chris has a degree in Construction Management and is a Certified Six Sigma Black Belt Practitioner and Trainer as well as a safety trainer.

During his career, he has held key positions in Project Management, Construction Management, and Internal Consulting. Having worked on large multi-million pound Construction Projects both in the UK and Internationally for both the Client Project Management Organisation and Principal Contractor, he is well placed to understand the needs of the Client as well as the difficulties faced by businesses in achieving success factors in areas of safety, cost, quality and time.

As a certified Six Sigma Practitioner working as an Internal Consultant within Bechtel he has undertaken a number of successful Projects in subjects ranging from rail infrastructure to safety initiative implementation. As part of this business improvement role, Chris has been extensively coached by experts in the science of behavioural management, this ensures he understands the best methods for effecting change in an organisation as well as the associated pitfalls and has demonstrated success in these areas.

Chris is able to draw on a network of Consultants to assist in the implementation of 80twenty services although experience has shown that providing a more personal smaller scale approach yields more profits as the outturn cost of a large scale management improvement initiative is often counter-productive.
Why 80twenty?

Many business improvement systems such as Six Sigma rely heavily on the management of data to accurately define business problems and monitor performance improvements when changes are introduced.

At 80twenty we ensure we target the right improvements for your business by analysing data and the 80/20 principle described below fitted perfectly with our key success factors hence the name.
The 80/20 Rule Historical Background

In 1906, Italian economist Vilfredo Pareto created a mathematical formula to describe the unequal distribution of wealth in his country, he observed that twenty percent of the people owned eighty percent of the wealth. after further study he discovered 80 percent of the land in Italy was owned by about 20 percent of the population, and so the rule was born.

The Quality Management expert Dr. Joseph Juran, working in the US in the 1930s and 40s recognised a universal principle he called the "vital few and trivial many which adapted Pareto's economic observations to business applications and in 1950; he published "The Quality Control Handbook," which included the term 'The Pareto Principle' in referenced the early work of Wilfredo Pareto.

The principle that 20 percent of something always are responsible for 80 percent of the results, became known as Pareto's Principle or the 80/20 Rule.
The Business Benefits of the 80/20 Rule

The 80/20 Rule means that in business many activities are trivial and do not account for the business making a profit. In Pareto's case it meant 20 percent of the people owned 80 percent of the wealth. In Juran's initial work he identified 20 percent of the defects causing 80 percent of the problems. Many mathematical theories and IT principles are based upon the 80/20 rule based upon years of historical data proving the theory.

The 80/20 rule has been and continues to be applied to many different business areas, it can be to almost anything we do in life however in business some of the possible applications are listed below:

  1. 20% of footballers account 80% of the goals
  2. 20% of criminals account for 80% of crime
  3. 20% of accidents are caused by 80% of motorists (under 21 year olds)
  4. 80% of absenteeism is caused by 20% of the employees
  5. 20% of roads account for 80% of the traffic
In order to prove the Pareto Principle you need DATA. The Pareto Chart is used to graphically summarise and display the relative importance of the differences between groups of data, or to visually represent the Vital Few versus the Trivial Few.

An example of a pareto chart that can be produced in Microsoft Excel is as below:-
pareto graph