The 80/20 Principle: The Secret of Achieving More With Less – 20th Anniversary Edition

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The 80/20 Principle: The Secret of Achieving More With Less – 20th Anniversary Edition

 “A few things are important. Most are notRichard Koch
 

In 1897 Vilfredo Pareto – an Italian economist – first discovered the 80/20 rule after looking at patterns of wealth and income in nineteenth century England. At the time he could not have possibly predicted how many ways his principle could be applied. Pareto’s formula has been shown to be true in everything from quality control, the distribution of accidents or crime amongst criminals, and was even used as a focus for the development of early IBM computers.

Author Richard Koch is himself an excellent example of Pareto’s principle – 80 per cent of your success will come from focussing on 20 per cent of your output. Having sold over a million copies of his book – first published 20 years ago and in print in 36 languages – he now lives the 80/20 way, dividing his time between countries and the things that interest him most. Koch started early with this approach. He earned his first class degree from Oxford University by analysing past papers and working out that at least 80% (sometimes 100%) of an exam could be answered well with knowledge from 20 per cent or fewer of the subjects. This efficient way of studying meant he could know an awful lot about relatively little, instead of a fair amount about a great deal. His subsequent fortune was amassed from picking the right investments to start with and then concentrating even more funds into those shareholdings.

In this new anniversary edition, Koch breaks his book into five parts, with the first section explaining 80/20 analysis and 80/20 thinking. The second part looks at how to apply the principles in business, with section three looking at how to work less, earn and enjoy more, including a new chapter on how your subconscious mind can help you. A new fourth section in this special edition discusses how networks (like Facebook, Twitter or Uber and Ebay) have become increasingly prevalent, making the principle even more relevant and more extreme – tending towards ratios of 90/10 or 99/1 rather than 80/20. The final part considers reader feedback and how the author’s thinking has developed since the first edition.

 

Key points:

While we all may have used lack of time as an excuse for not achieving greater things, Koch says that his application of the principle would suggest the reverse. His view is that we are actually awash with time and profligate in its abuse. Now, more than ever, it may be a wise move to start thinking about where we direct most of our focus and if that’s bringing the results we really want.

 

 

About the author

Richard Koch is a highly successful author, investor and entrepreneur, having made large returns from businesses as diverse as MSI hotels, Belgo restaurants, Filofax personal organisers and consulting. A former partner at consulting firm Bain & Co, and co-founder of The LEK Partnership, the fastest growing and most profitable ‘strategy boutique’ of the 1980s, Richard now lives the 80/20 way between Gibraltar, Spain, Portugal and South Africa.

Book Details

Author: Richard Koch

ISBN: 978-1857886849