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Ready to learn the most important takeaways from The 80/20 Principle in less than two minutes? Keep reading!
Why This Book Matters:
The 80/20 principle says that 80% of your results come from 20% of your efforts.
Richard Koch shows you how to identify the 20% that is disproportionately more impactful than all your other efforts so you can exponentially increase your personal and professional success.
- Don’t buy into the myth that there is a linear relationship between input and output
- The biggest rewards are often generated by a disproportionately small amount of effort, whether it be in business or our personal lives.
- Example: 20% of motorists cause 80% of accidents. 20% of sales generate 80% of profits.
- The 80/20 rule says that 80% of your positive results (happiness, sales, etc.) come from 20% of your time (effort, work, etc.)
- Take a close look at how you spend your time and remove the activities that have the smallest impact on success or happiness.
- Example: Companies with a large product range can increase profits by focusing only on top-performing products.
- Every aspect of your business can benefit from the 80/20 rule
- Whether it’s marketing, logistics, or HR, examining existing processes and eliminating the least productive tasks can increase output greatly.
- Example: Famous broker Nicholas Barsan earns $1 million annually in commissions because he focuses on pleasing his top repeat clients.
- Use 80/20 thinking to make key changes in your personal life
- Unlike in business, there’s no need for solid statistical data to inform the analysis of your personal life. Just cut out the things that have the least value.
- Example: Someone with many casual friends can increase their personal fulfillment by focusing on fostering relationships with only their closest friends.
- Practice time revolution instead of time management
- Time management strategies fill your day with more things to do, while “time revolution” optimizes time by focusing on the 20% of tasks that are the most important in your day.
- Example: At his consulting firm, the author’s colleagues responded to an inundation of client needs by focusing on the most important 20% of issues, which led to improved performance compared to the competition.
- Use the 80/20 rule broadly to increase your quality of life
- Use the 80/20 rule to pinpoint where to deepen your focus and where to reduce your focus to exponentially increase the positive outcomes in your life.
- Example: Think about the 20% of your life that brings you the most joy and be creative about ways you can increase the amount of time in that space.