Book Summary: The 80/20 Principle
Richard Koch’s The 80/20 Principle is based around his study of The Pareto Principle. Applied mostly to a business context you could look at it as 20% of your actions or clients create 80% of your results.
Related Book Summaries:
Napoleon Hill’s Golden Rules – Napoleon Hill
Quotes:
The way to create something great is to create something simple.
Being mostly correct and decisive typically yields better results than taking the time to figure out what is perfectly correct.
It may be that you will be happiest in the rat race; perhaps, like me, you are basically a rat.
The 80/20 Principle Book Summary Notes:
- Do you use your time in the most effective ways possible?
- Elimination, removing as many different tasks as possible is one of the greatest productivity hacks.
- Often a disproportionately large amount of the results are generated by only a small percentage of the work.
- The 80/20 Principle is great but don’t take it literally. Sometimes it’s represented as 90/10, 99/1 or even 70/30. The basic idea still stands correctly though.
- People often expect balance and proportionality as a result of their efforts. The 80/20 Principle stands directly opposite that.
- If you run a business and can identify which products are your 20% then you can double down on those and not worry about the rest. Focus on selling more and even trying to further boost profit margins if possible.
- Keep your business as simple as possible to keep costs down.
- Enhance your daily to-do list by assigning priorities to the various tasks and begin your work with the most important.
- You can also use the 80/20 Principle to apply to your own happiness. What makes you the happiest to do? Can you find a way to do more of it?
