The 80/20 Principle (book summary)

2007-07-25T11:09:00.000-07:00

Intro

The 80/20 Principle says that 20 percent of something produces 80 percent of the results. This can be generalized as the principle of imbalance. Richard Koch's research on the 80/20 Principle found many examples of how to apply this knowledge to create increased results.

The critics of the book say his examples of 80/20 get weaker the farther from business he applies it. This does seem true. I think 80% of his examples will be useful to 20% of his readers. Everyone will find examples that can be applied directly in their life. Even better you can generate many indirect ideas from the examples.

Key Concepts

The principle of imbalance: for all of the effort toward a goal, whatever the goal may be, some things will be much more affective at getting results. Although 80/20 is common, sometimes there are other relationships.

80/20 analysis consists of gathering the data to clarify the cause and effects, and those which will have the highest returns when changed. It is important to gather data in many areas because the results you don't expect can be the most valuable.

80/20 thinking is useful for many decisions not important enough to spend time on analysis. Gathering the data is not necessary when you are generally familiar with the subject matter.

Taking Action

What's Working?
Figure out what works and keep it up, even increase it. There is not much sense in focusing on a new process without looking at what is working.

Enjoy Life

1. Get flashcards, or pieces of paper
2. Write down a bunch of your achievements
3. Write down a bunch of times you were happy
4. Sort out the top 20%
5. Decide to spend more time doing those things

Get Better Results

1. Determine the most important results to you
2. Take a look at what is leading to the best results
3. Expand those efforts
4. Look for the factors leading to only minor results
4. Reduce in these areas

What's Not Working?
Identify ways to cut back efforts on things that are not working. A customer costing your money can be strategically "lost" to your top competitor.

• Outsourcing anything not in your primary business
• Cut out a business segment not bringing in much money
• Delegate things not in your top priorities that another person can do

80/20/100 Decision Making

1. Get 80% of the data in 20% of the time
2. Make a decision 100% of the time
3. Move forward with full confidence
4. Verify your results, if not satisfied make a change

80/20 Examples

• 20% of your diet will result in 80% of your fat
• 81% of your time is spent on 15% of your customers
• 3 of your 16 projects will take the most time
• 80% of products make 20% of your sales
• 8 out of 32 salespeople will make 80% of the sales
• 20% of your products result in 80% of your sales
• 5% of your profit comes from 50% of your products
• 19% of your time results in 81% of your happiness
• 20% of your cost cutting effort results in 80% of your savings
• 80% of your energy will be spent on 20 percent of your results
• 80% of this list is read by 20% of readers
• 5 out of 34 calls will result in 80% of your leads

Mastery (book summary)

2007-07-17T08:49:00.000-07:00

Intro
In the book Mastery George Leonard has laid out as best he can the tools for making change in your life as it concerns the long path to mastery. This applies to anything which you seek to be better at, that requires continued practice.
His experience with the subject comes from practicing and teaching Aikido, and applying the principles of Aikido to all aspects of his life.

Key Concepts
Spurts and Plateaus; the process of mastery consists of periods of quick improvement and slow improvement. Throughout the book these are called spurts and plateaus. The ability to appreciate the plateau is essential to mastery.

Exploring the edge; sometimes you must change the way you do something in order to get to a higher plateau, the result is often a drop in your results or effectiveness.

Homeostasis; When you make a change to your life in the pursuit of mastery you will encounter what the author terms homeostasis.

Taking Action
Choose a first rate instructor
Someone who is a master may not have mastered instruction. Choose someone who is a student and a teacher. Learning on your own does often work, but learning from a master you may avoid many mistakes. The path of mastery is long, and longer alone.
• evaluate credentials and lineage
• observe their interactions with their students
• check that they pay attention to the slowest students

Surrender to the master
The master knows what he asks of you. Follow the instruction before asking questions. Understanding comes as a result of doing what you are asked.
• follow instructions
• let go of your own thoughts and beliefs

Practice
To really move easily in a skill you must practice the fundamentals extensively and fully. When it comes time execute the skill it can be done without thinking, while at the same time noticing everything.
• Mastery is practice
• Practice is as much about doing, as about being
• Be mindful

Homeostasis
Have you ever noticed when you finally set an important goal something happens to impede your progress. George considers this part of homeostasis. Homeostasis is the natural tendency to keep in harmony with the status quo. Sometimes it is friends and family talking you out of your ideas, or an injury preventing your new exercise routine. Also it can come from your own subconscious desire to avoid new challenges, or failure. This is important to prepare for and you can do so in the following ways.
• Be aware
• Develop a support system
• Regular practice
• Dedicate to lifelong learning

Ideas and notes
A spurt is the result of the continued learning throughout the plateau finally coming to the conscious part of the mind.

• Practice the skills of mastery with something you know
• To learn is to change
• Know that you will never reach a final destination
• After you reach the top of the mountain, climb another one
• Be willing to practice, even when you seem to be getting no where
• Practice for the sake of practice
• Be fully in the present moment
• Be willing to look foolish
• Maintain flexibility in your strategy, and in your actions
• Long-term dedication to the journey - not the bottom line

Low Budget Philosopher

The 80/20 Principle (book summary)

Mastery (book summary)