It's Like Magic

But before we go there…

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1. The Vital Few

Last week, we shared the cumulative framework.

And it got me thinking more deeply about how and when I’ve used it, and more importantly – why it’s so powerful.

My first experience learning the cumulative framework was on one of my first cases with BCG, with a second-year consultant I looked up to as a mentor. He described the impact his team had on our client. And to me, it felt like magic. 

Picture it. A dirty office next to Gate A28 at a major U.S. airport, working for a leading U.S. airline.

Two consultants hunched over a ThinkPad.

The team shared the analysis that they used to uncover the most frequent causes of airplane delays caused by maintenance issues. Imagine a spreadsheet: each row is a delayed flight with columns that code the maintenance issue, the time of delay, the duration of delay, etc.

They analyzed how frequently each type of delay happened. And from that, they saw that some reasons were far more prevalent than others.

What did they use to visualize this? The cumulative curve.

Using the curve, they illustrated that a small percentage of maintenance codes were driving a large percentage of flight delays - the vital few.

Digging into the vital few, they learned many fixes were quick and easy, like a replacement coffee maker or a critical lightbulb in the cockpit. In fact, many of the delays wouldn’t have occurred if the mechanic had quick access to the part. Going deeper, they learned that these fixes only needed access to about one hundred parts, and, most of these parts were already in stock at the airport.

The problem? Parts storage was inside a maintenance hangar across 2 active runways. In the best-case scenario, it will take about 45 minutes to get the parts from the hangar to the airplane. But for most times, it took over an hour.

So to accelerate access to these parts, they created ‘Hot Shot’ – a van parked at the terminal that contained a small stock of these specific parts.

With the Hot Shot on standby, the mechanic could radio for the van to meet him at the aircraft within 5 minutes along with the needed part.

Like I said, it was like freaking magic to me. 

Since then, I’ve applied that principle across many different industries. And I think anyone who has a job of figuring out why something is broken, delayed, or returned, can always use this tactic and look at the 80/20.

This could look like:

• 80% of profit comes from 20% of customers

• 70% of airline delays are caused by 10 types of maintenance issues

• 68% of service deliveries come from 10% of product SKUs

And to make it easier for you, here’s a template you can plug your data set into.

Would you use this? Please let me know how it worked for you.

Email it to me at [email protected].

2. What Am I Into Right Now?

I had a great summer. And I thought I’d take a minute and share what I’m really into right now.

First, I’m reading (and by reading, I actually mean listening to) a book called “The 2-Hour Cocktail Party” by Nick Gray.

I love throwing parties, it’s something I think I do well. But this guy has taken it to the next level.

Now, I’m thinking about how to use this concept and host events that help me and other people build our network.

The second thing I’ve been thinking about recently: the opportunity cost of our residential real estate investments.

We have a portfolio of rental properties and development properties in Austin.

I think the market has reached a steady state of low growth, and the property taxes are killing me.

What I’m looking into is industrial flex space development. I’m in the early stages of research, looking into land on the corridor between Austin and San Antonio. I have a hypothesis that demand for flex space warehouses + offices will grow as businesses supporting population growth grow.

Lastly (and on a mindless note), it’s football season and I’m surviving by binge-watching Below Deck.

How did I sleep on this for this long? I don’t know but it’s amazing.

Remember, the path to success is paved with continuous learning and embracing fresh perspectives.

Let's stay connected, share ideas, and elevate your consulting business.

Stay curious, friends.

TheConsult.co brought to you by Keenan Reid Strategies

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