80 20 principle other name series#

As Pareto demonstrated with his research this “rule” holds true, in a very rough sense, to an 80/20 ratio, however in many cases the ratio can be a lot higher – 99/1 may be closer to reality. What Exactly Is The 80/20 Rule?īy the numbers it means that 80 percent of your outcomes come from 20 percent of your inputs. At the time I sometimes accused myself of being lazy for not “working hard” but I realized what I was doing was living an 80/20 lifestyle and in fact probably being a lot more productive than those working harder than myself. Living The 80/20 Way fit me well because it discussed living life productively seeking maximum satisfaction by focusing on your passions (Koch has written other books focusing on the 80/20 Rule for business and managers that I didn’t enjoy quite as much).

80 20 principle other name series#

Koch took the 80/20 Rule and made it his own by writing a series of books on the topic. I was in my local bookshop and I picked up a copy of Living The 80/20 Way by Richard Koch.

I can’t remember exactly when I was first exposed to the 80/20 Rule but I know when it first really hit home. The assumption is that most of the results in any situation are determined by a small number of causes. It was named after the Italian economist Vilfredo Pareto, who observed that 80% of income in Italy was received by 20% of the Italian population. The principle was suggested by management thinker Joseph M. Here’s what the Wikipedia has to say about it: Yes it has foundations in economics and yes, it was “proven” using statistical analysis by a man named Pareto, but it is not meant to be understood only by economics professors. The good thing about the 80/20 rule is that you don’t have to understand statistics to be a believer. I work better with feelings, ideas and concepts. Personally I’m not a big fan of maths and beyond basic web statistics like pageviews, impressions, unique visitors – and when I stretch myself – conversion rates and split testing, I try and avoid all complex numbers. The 80/20 rule sounds like a statistic and in some ways it is. I believe it’s fundamental to every business person – to every human being – so if you have never heard of this rule, please read on and absorb everything I’m about to tell you, it could potentially change your life. I mention the 80/20 rule frequently in my writings so I thought it was about time to write a proper introduction to the concept.