…birth rate ratio in China in the year 2,000 (male to female) was 117:100, compared with a normal expectation of 105:100. This is all the more startling because the one child policy only applies to about 40% of the population. There are something like 30 million Chinese men looking for a wife, one big stag party. A rather extreme demonstration of the effects of target setting. Target driven behaviour Given a target to hit, (particularly a hard or…
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Mistakes on Death Row
…at large. Two horrible mistakes One man imprisoned for a crime he didn’t commit One man walking free for a crime he did Two types of error, false positive and false negative. Double trouble. And there is the problem… It is easy to fix one problem It is easy to make sure no criminals walk free. Arrest everybody. It is easy to make sure nobody is wrongly convicted. Arrest nobody. Fixing one problem is never too difficult, but fixing two problems …
Pink Shirts and Bullwhips
…solution, run a promotion, 2 for 1, give free shirts away. Customers love free things, they buy like crazy, they will buy twice what they need. Because customers buy like crazy, the retailers order like crazy, they don’t want to run out of stock, the customers might go to another retailer for their free pink shirt, so, they will buy twice what the customers buy, just to be on the safe side. Because the retailers are buying like crazy the manufac…
Call Centre Metrics the Zappos Way
…iness. 4. Attendance and Punctuality Zappos uses a program called Panda to combat absenteeism. Employees receive a point for every day they miss work or come in late. Staff with zero points in any given period receive a number of paid hours off. These hours can be accrued and taken as an entire day. How These Metrics Impact Customer Service My primary take away is that Zappos have created metrics that emphasize building a relationship with the c…
Can You Buy Better?
…. Which change is best? Spending money is easy. If you want to install the latest computer system, acquire a competitor or to build a spacious new warehouse, there are plenty of people who will help you do it… Provided you sign a check. But anybody with a big enough bank balance can copy what you do. Spending money won’t give you a long-term advantage. Changing behaviour is difficult. It takes management clarity, relentless reinforcement, positive…
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