Richard John Koch is a British author, speaker, investor, and entrepreneur. He has written more than 20 books on business and ideas including. The 80/20 Principle which discussed applying in management and life.
The 80/20 Principle
What is the 80/20 Principle? The 80/20 Principle tells us that in any population some things are more important than others. A good benchmark or hypothesis is that 80 percent of results or outputs flow from 20 percent of causes. And,it leads to sometimes from a much smaller proportion of powerful forces. Everyday language is a good illustration. We could call this an 80/1 principle. Similarly, over 99 percent of talk uses fewer than 20 percent of words: we could call this a 99/20 relationship. The movies illustrate the 80/20 Principle. A recent study shows that 1.3 percent of movies earn 80 percent of box office revenues, producing an 80/1 rule. The 80/20 Principle is not a magic formula. Sometimes the relationship between results and causes is closer to 70/30 than to 80/20 or 80/1. But it is very rarely true that 50 percent of causes lead to 50 percent of results. The universe is unbalance. Few things matter. Effective people and organizations batten on to the few powerful forces at work. So, they are in their worlds and turn them to their advantage.
This has been the most painful and well-researched book. There is a certain irony here. Since the 80/20 Principle tells us that we could have obtained a book 80 percent as good in 20 percent of the time. This would have been an inclination and the reader can tell whether the extra effort has been worthwhile. The effort involved has been much more collective than for any of previous books.
Find the book here: