BOOK REVIEW

ON

THE 80/20 PRINCIPLE
BY RICHARD KOCH

Presented by: Cefi Johnkutty 1021041

. ‡ is a former management consultant. entrepreneur.RICHARD KOCH ‡born 1950 ‡Koch graduated from Oxford University and received an MBA from the Wharton School of the University of Pennsylvania. ‡Famous books are:- The 80/20 Principle. and writer of several books on how to apply the Pareto principle (80/20 rule) in all walks of life. 2002.1997 The Power Laws. 2004 . published in the US as The 80/20 Individual Living the 80/20 Way. He lives mainly in Portugal. 2000. published in the US as The Natural Laws of Business The 80/20 Revolution.

 This is present in all aspects of life. or effort usually leads to a majority of the results.Brief summary  Richard Koch thoroughly examines Pareto s Law a minority of causes. outputs. inputs.  While Pareto s Law is typically used for sales. or inventory analysis. including priority setting and work/life balance. . The 80/20 Principle examines personal and management applications as well. customer. and by paying proper attention you can identify major opportunities for improvement in every aspect of your life and business. it is possible to realize enormous gains in productivity in a short time period.  By identifying the critical 20% of causes and focusing time and resources on optimizing them. or rewards.

Main points  To identify the critical 20% in every area of your life  Giving up the guilt of not working as hard as you think you re       supposed to Make the 80/20 Principle work for you in your job. actually.  And much more! . There s no value. Insight and doing what we ourselves want lead to higher returns. How the 80/20 principle can multiply your money Hard work leads nearly always to low returns. We should free ourselves from obligations imposed by others. in doing things that you don t enjoy. even when you don t have total control over your time What the 80/20 Principle can teach you about who to hire .

Organizations point of view  Find a narrow niche and develop core competency  Find a niche where you have the chance to become a       recognized competency or market share leader Recognize that knowledge is power Find your market. find your main customers and make them happy Find out what 20% of your efforts lead to 80% of your results Learn from the best Try to find as many valuable people as possible to help you Outsource everything except your core competency to outside contractors .

 Things that are already producing super-productive       results. Things that use your own creativity. Things that other people have done successfully but in a different field. Things for which it is now or never.20% critical high value things  Things that advance your overall purpose in life. Things other people tell you can t be done. Innovative ways of doing. .  Things you ve always wanted to do. Things that you can get other people to do for you with relatively little effort on your part.

 Answering the telephone.  Things you don t enjoy doing.  Things that have already taken twice as long as you originally expected.  Things that you are not unusually good at doing. .  Things that have a predictable cycle.  Things that have always been done this way.  Things that are always interrupted.80% Unimportant low-value things  Things other people want you to do.

STYLE: The Good and the Bad  Reader friendly  Easy language  Easy to understand  Too many points  Confusing  More of theory  Lack of examples .

while doing less. . and focus on the few things that matter uniquely to each individual.Conclusion  Koch focuses exclusively on how to succeed personally as well as professionally. enjoy life more.  He pioneered the idea that we can achieve more if we relax. to make a good life as well as a living .

Things that matter most Must never be at the mercy of things that matter least. -Johann Wolfgang von Goethe .