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The 80/20 Principle
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How anyone can be more effective with less effort by learning how to identify and leverage the 80/20 principle--the well-known, unpublicized secret that 80 percent of all our results in business and in life stem from a mere 20 percent of our efforts.
The 80/20 principle is one of the great secrets of highly effective people and organizations.
Did you know, for example, that 20 percent of customers account for 80 percent of revenues? That 20 percent of our time accounts for 80 percent of the work we accomplish? The 80/20 Principle shows how we can achieve much more with much less effort, time, and resources, simply by identifying and focusing our efforts on the 20 percent that really counts. Although the 80/20 principle has long influenced today's business world, author Richard Koch reveals how the principle works and shows how we can use it in a systematic and practical way to vastly increase our effectiveness, and improve our careers and our companies.
The unspoken corollary to the 80/20 principle is that little of what we spend our time on actually counts. But by concentrating on those things that do, we can unlock the enormous potential of the magic 20 percent, and transform our effectiveness in our jobs, our careers, our businesses, and our lives.
- Original language: English
- Dimensions: 8.50" h x 1.18" w x 5.31" l,
- Binding: Paperback
Review
From The 80/20 Principle:
"The 80/20 Principle can and should be used by every intelligent person in their daily life...It can multiply the profitability of corporations and the effectiveness of any organization. It even holds the key to raising the quality and quantity of public services while cutting their cost... The 80/20 Principle asserts that a minority of causes, inputs, or effort usually lead to a majority of the results, outputs, or rewards. Taken literally, for example, 80 percent of what you achieve in your job comes from 20 percent of the time spent. Thus for all practical purposes, four fifths of the effort--a dominant part of it--is largely irrelevant."
To learn how you can tap the hidden potential of the 80/20 principle in your life, read Richard Koch's exciting new book.
From the Hardcover edition.
From the Inside Flap
How anyone can be more effective with less effort by learning how to identify and leverage the 80/20 principle--the well-known, unpublicized secret that 80 percent of all our results in business and in life stem from a mere 20 percent of our efforts.
The 80/20 principle is one of the great secrets of highly effective people and organizations.
Did you know, for example, that 20 percent of customers account for 80 percent of revenues? That 20 percent of our time accounts for 80 percent of the work we accomplish? The 80/20 Principle shows how we can achieve much more with much less effort, time, and resources, simply by identifying and focusing our efforts on the 20 percent that really counts. Although the 80/20 principle has long influenced today's business world, author Richard Koch reveals how the principle works and shows how we can use it in a systematic and practical way to vastly increase our effectiveness, and improve our careers and our companies.
The unspoken corollary to the 80/20 principle is that little of what we spend our time on actually counts. But by concentrating on those things that do, we can unlock the enormous potential of the magic 20 percent, and transform our effectiveness in our jobs, our careers, our businesses, and our lives.
About the Author
Richard Koch, who is based in London, is a highly successful entrepreneur and investor who has also worked in the United States with Bain & Company and the Boston Consulting Group. He rescued the Filofax company from near death and has started several restaurants.
Most helpful customer reviews
14 of 15 people found the following review helpful.
THE most pivotal book I've read in my business career
By Perry Marshall
Some people have cynically commented that you only need to read 20% of this book, and the rest is all repetition.
Those people do not actually understand the fractal nature of the 80/20 principle - how pervasive it is, or the extent to which you really need to immerse yourself in these concepts. Their opinions are worthless.
I first read this book in 2003. I got to page 14 and Richard was explaining how 80/20 is closely related to chaos theory. I suddenly had an epiphany - making realizations that weren't even explicitly stated - and realized that inside every 80/20 is another 80/20, and another and another. 80/20 is fractal!
Suddenly I looked out the window and saw 80/20 EVERYWHERE - in the trees, in the street, in the carpet in my house, in nearly every column of every spreadsheet in my business. Before I'd barely seen it at all, and even then only in the rear view mirror. After, I saw it everywhere all around me.
At the time I was just starting to crack the code on Google AdWords, and I realized 80/20 is the key to pretty much everything in AdWords. And in marketing itself. 80/20 became my secret weapon. It was the backbone of AdWords and I included an 80/20 chapter in my very first ebook, "Definitive Guide to Google AdWords" which eventually became Entrepreneur Press's "Ultimate Guide to Google AdWords" which is the world's #1 book on internet advertising. It also inspired my book "80/20 Sales and Marketing."
Richard makes a key observation, which is the difference between 80/20 ANALYSIS and 80/20 THINKING. Analysis is backward-looking. 80/20 Thinking is forward looking. When you know, in advance, that whatever you do is going to be 80/20 and nothing you do can change that, you artificially stack the deck to favor early successes. You kill your runts faster. You search for patterns that most people miss, and shortcut months or years of failure.
Richard also delves into many subtleties of how 80/20 manifests in business, and how most businesses are losing money every time they sell 20% of their product line. This is a very big deal.
I'm now reading this book, 13 years later, AGAIN (not sure how many times I've cracked it) and it's still producing new jewels. Yes, you can read 20% of this book and it could still potentially change your life. But if you understand 80/20, you should read that kind of book 5 times and you can be nearly certain that you'll get 10X your time investment back every single time.
When Richard starts getting philosophical near the end about this applying to relationships and whatnot, don't give in to the temptation to think he's over-reaching. He's not. 80/20 is a fundamental axiom of cause and effect, one of the great secret laws of the universe.
I've read a LOT of great books but this one tops the list. It's been worth many millions of dollars to me in my career.
3 of 3 people found the following review helpful.
The 20% That Matters
By Steve Burns
This book does an excellent job explaining the importance of focusing on what gets the most results in any outcome driven system. From the initial work of Pareto we see that in most things 20% of actions lead to 80% of results. The percentages can be more like 5/95 or 10/90 in some things but the key to the principle is to discover where the majority of results come from. This a great book that really gets the reader's mind focused on filtering what matters and what does not matter in any life situation whether business, sports, relationships, health, or your personal life. This is a key principle that has lead many people to success whether they knew they were using it or not. What really matters? What actions make all the difference? This book explains how to put the principles in action. How do you develop a good filter to know what matters and what doesn't.
8 of 8 people found the following review helpful.
A survival manual for an increasingly complex, noisey, overwhelming world
By Carl B. Nelson
The greatest challenge people face today is the tsunami of data, information, options, media, etc. on and off the Internet. A giant wave of trivia submerges truly important things like family time, thinking time, selective study time, and time for creating something uniquely of value for the world with the energy, talents and skills we have been given.
It would be mistake to brush off the 80/20 Principle as just another book and the principle just another strategy, method or principle. Given the challenges we all face I would classify it as an essential survival manual (for business or the individual) in an increasingly complex twenty first century.
This isn't a book to place on your shelf or to just casually read. It's a book and principle to study, review and internalize until it becomes a part of automatic thinking and action.
If you don't have or run a business you can ignore the business portions. You'll still get value from the rest.
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