![]() It really doesn’t matter what numbers you apply, the important thing to understand is that in your life there are certain activities you do (your 20 percent) that account for the majority (your 80 percent) of your happiness and outputs. 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). 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.
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