Some books are more important than others. That’s because they contain an irrefutable truth. And once you know that truth and what it means to you, and how you need to use it in order to change things, then it is indeed life changing.
Many, many books claim that. But few really are.
‘The 80/20 Principle’ by Richard Koch is one of those rare books that you can indeed call life-changing. And business-changing too. It has a simple premise: 80% of the results come from 20% of the causes. This thinking originally came from an Italian economist called Vilfredo Pareto. In 1906, he created a mathematical formula to describe the unequal distribution of wealth in his country, observing that twenty percent of the people owned eighty percent of the wealth. It became known as Pareto’s law. But it was actually an American Dr. Juran's observation of the "vital few and trivial many" that gave the principle a broader spectrum. And so the principle that 20 percent of something always are responsible for 80 percent of the results came to be.
If you think about your business, and apply the 80/20 principle, you will see that how uncannily accurate it is. 80% of your businesses revenue comes from just 20% of your customers. 80% of your businesses biggest successes come from just 20% of your people. Once you are aware of this truth, you can start to focus and spend more time on what matters: The 20% of the vital few.
Just imagine if you spent more time on the things that made the biggest difference and not on the other stuff that really doesn’t matter as much to your business. So anyway, go buy the book. It’s great. But the reason to write this today is he has a new book out called the 80/20 manager. So watch out for that.
Here is Richard’s blog: Find your horse to ride, which is a great read. And gives you an idea how good the book is going to be.