The 80/20 Principle:The Secret of Achieving More With Less

This 80/20 principle maintains that a minority of antecedents, inputs, or accomplishment usually leads to a majority of the results, outputs, or rewards. Something like 80 percent of what you achieve at work comes from 20 percent of the effort and time put in. Hence for all commonsensical purposes four-fifths of the effort is considerably insignificant. This is such a revealation, quite contrary to what we expect. The point is not the precise numbers but the consistently lopsided relationship between time and effort, on the one hand, and results on the other. In business, around 20 percent of products account for about 80 percent of sales; so do 20 percent of customers. The 20 percent of most profitable products or customers typically give us 80 percent of profits. 80/20 Principle is intrinsically optimistic because it reveals a state of affairs that is seriously below what it should be and shows the direction towards a better state. To attain progress and multiply your output, you must give power to the 20% of resources that really matter in terms of achievement, and get the remaining 80% up to a reasonable level. Progress takes you to a new and much higher level. But, even at this level, there will still typically be an 80/20 distribution of outputs/inputs. So you can progress again to a much higher level.
For those running a small business or home office, one finds that they have more things pulling at them then ever before. Consistent application of this rule will lead to dramatically improved productivity. While this may not be absolute, one should use it as a lead and reference point to ask whether or not they are truly focusing on the 20% - the vital few, or the 80% - the trivial many. True progress results from a consistent convergence on the 20% most critical objectives. The 80/20 principle has two almost opposite appeals. On the one hand, it is a demographical observation, a proven pattern - solid, quantitative, reliable. It pleases those who want to get more out of life, to get ahead of the crowd, to increase profits or decrease effort or costs in the chase of gain, to cogently raise efficiency, defined as output divided by input. If we can spot the few cases where the results relative to effort are so much greater than usual, we can become so much more competent in any task we want to achieve. The 80/20 principle allows us to enhance our achievement while escaping the tyranny of over-work.
This book is written by a consultant and therefore about half of the book describes how to analyze corporate numbers and find good products, customers, places to broaden market share and more. This in itself is interesting, but the 2nd part of the book also gives advice on your personal career, entrepreneurship, relationships with friends and romances and the rest of life. It's an amazingly powerful concept. Although there are several authors that discuss the 80/20 Principle as the main element of their time management and self-development programs, Richard Koch provides an entertaining and practical application of the theory in his book The 80/20 Principle: The Secret to Success by Achieving Less.This book has outrightly revealed the secret on how to achieve more with less. It teaches us to take averages apart and concentrate on the small parts of the system that have extraordinary power to generate wealth. Clearly explains the relevance of being selective, not exhaustive. In every important sphere, work out where 20% of effort can lead to 80% of returns. Strive for excellence in the few key areas, rather than for good performance in many.It also emphasizes the need do things that you are best at doing or outsource the rest. Exercise control with the least possible effort.This a beautifully scripted and inspiring book.

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David Stirzaker helps you succeed in making money online, primarily marketing a highly profitable personal development product, find out more at www.davidstirzaker.co.uk

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