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Summary: The 80/20 Principle Richard Koch

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This ebook offers a summary of the book «The 80/20 Principle» by Richard Koch. Richard Koch argues persuasively in The 80/20 Principle that 80percent of the results in any system will flow from just 20percent of the efforts. Trying to eliminate the 80 percent is usually ineffective; therefore, try to expand the 20 percent. He gives the reader 10 techniques for increasing productivity in the 20 percent, explaining why they are valuable.

For example, he suggests that identifying the top 20 percent of profitable business can help shrink the 80 percent, because if you realise an area of your business is inefficient, you can establish short cuts. Businesses should focus marketing on their top 20 percent of products. Understand that only 20 percent of decisions will be the vital ones, and act accordingly. 20 percent of every salesforce will be the best: analyse and comprehend why this is so, and act accordingly. In negotiation, remember that again, you are probably only disputing about 20 percent of the issues being discussed: it's in your interests to always be aware of this.

The 80/20 Principle is an exceptionally useful paradigm to understand and put into practice, because it encourages continual selfawareness and prioritisation, which is how successful businesses flourish.
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