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The 80/20 Principle: The Secret of Achieving More with Less, by Richard Koch
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The Secret of Success by Achieving More With Less.
Learn how you can tap the hidden potential of the 80/20 principle in your life.
Richard Koch is a highly successful entrepreneur and investor. The 80/20 Principle―that 80 per cent of results flow from just 20 per cent of the causes―is the one true principle of highly effective people and organisations.
In one of the decade’s most original, provocative and powerful books, The 80/20 Principle shows how you can achieve much more with much less effort, time and resources, simply by concentrating on the all-important 20 per cent.
Astonishingly, though the 80/20 Principle has greatly influenced today’s world, this is the first book which shows you how to use it in a systematic and practical way.
“Through multiple examples, and a punchy down-to-earth commentary, Koch offers the first really useful advice we've seen in a management book for years.” ―Business Age
“Congratulations! The 80/20 Principle is terrific.” ―Al Ries, bestselling author of Focus and Positioning
- Sales Rank: #2470074 in Books
- Published on: 2007
- Format: Import
- Original language: English
- Number of items: 1
- Dimensions: 8.43" h x .91" w x 5.35" l, 1.10 pounds
- Binding: Paperback
- 304 pages
Amazon.com Review
In 1897, Italian economist Vilfredo Pareto, in his study of the patterns of wealth and income, observed that the distribution of wealth was predictably unbalanced. He first discovered this pattern in 19th-century England and found it to be the same for every country and time period he studied. Over the years, Pareto's observation has become known as the 80/20 principle.
Now in 1998, Richard Koch takes a fresh look at the 80/20 principle and finds that the basic imbalance observed by Pareto 100 years ago can be found in almost every aspect of modern life. Whether you're investing in stocks, analyzing company sales, or looking at the performance of a Web site, you'll find that it's usually 20 percent that produces 80 percent of the total result. This means 80 percent of what you do may not count for much. Koch helps you to identify that 20 percent and shows you how you can get more out of your business, and life, for less.
From Booklist
The Pareto Principle--in Koch's words, "a minority of causes, inputs, or effort usually lead [s] to a majority of the results, outputs, or rewards" --is hardly new; Vilfredo Pareto discovered it in 1897. But London-based investor, entrepreneur, and author Koch traces Pareto's insight through the past century (George K. Zipf, Joseph M. Juran, IBM and other computer firms) and adds a bit of chaos theory to make the 80/20 principle a way of life. He spells out essential characteristics of "80/20 analysis" and "80/20 thinking," then explores application of this "Vital Few" approach, first in business, then in achieving personal success and happiness. Koch closes with a chapter on the social implications of the Pareto Principle, urging that this predictable imbalance between inputs and outputs is "not inherently right wing," and that steps such as spreading best practices in education to all students and giving those currently excluded from the market economy a stake in the game would generate less inequality as well as greater productivity. Mary Carroll
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.
Most helpful customer reviews
5 of 5 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.
1 of 1 people found the following review helpful.
Book review and analysis
By Steve
Richard Koch is a shrewd person. He basically HYPED the used the well known Pareto analysis/chart/principle (which is taught in middle and high school). The writing this book is scented strongly like those unscrupulous diet books that promises something amazing and secret-revealing that would change your life and yet what is offered is something rather trivial, minor and few. He is reluctant to attribute where credits are due (Pareto and others) and re-brands someone else work as his own "80/20".
Granted that he connected business management practices (which are also well know) to Pareto analysis; however, such connections are fairly intuitive for anyone with any business training. The subtitle "The secret to achieving more with less" is just a hook to get you to buy the book, the implied promise of "achieve more with less" is flawed. Because in real life "there is no substitute for hard work" (Edison), and of course we are "to work smarter not harder". Therefore, you will work hard, smarter. You will work just as hard and be effective and ethical.
Ethics is not this books' strong suit. I can't resist but feel the tones of the book strikes me as greedy, selfish and even Machiavellian.
The book should be a reasonably useful readers lack business training. However, don't be "bedazzled" by the hype. It is common knowledge that you work on what is most rewarding or impacting to be efficient. Just open your analytical eyes and see, and that is all.
4 of 4 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.
See all 217 customer reviews...
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