I recently read “The 80/20 principle (the secret of Achieving more with less) by Robert Koch. It was first published in 1997 in the United Kingdom. Considering its popularity, it is now being sold worldwide. I bought it from a guy at a red light who said – “bhaiya aap ye kitab lelo aapko achi lagegi”. He quoted me Rs. 250 and I bought it. This book runs into 400 pages and I am going to sum it up in two pages as everyone does not have time to read 400 pages. Hope it helps you.
This book is divided into five parts.
- Corporate Success Needn’t be a Mystery
- Work Less, Earn and Enjoy More
- The 80/20 Future
- The Principle Revisited.
Broadly the author tries to convince you that the world runs over 80/20 principle but to save himself from criticism, also suggests that not to follow and believe this principle firmly as it is a very flexible principle. Somewhere it can be 77/23, 70/30, 99/01, etc. but if you closely monitor the world around yourself, you will realise that little efforts give you bigger results.
Example- 80% of your happiness comes from 20% of your actions. 80% of your income comes from 20% of your work. 80% of your wealth is created by 20% of your portfolio. 80% of your works are done with the help of 20% of your networks.
The author again and again insists that you must lead a simple life by focusing on 20% of your work and slowly and gradually outsourcing 80% of your work. Your focus must be on your core skill which runs your bread and butter. This 20% will eventually give your abundance of wealth if you do it right.
How to Work less and Earn more and Enjoy more?
- The first and initial step for working less is to identify your core skill and focus on it and master it. No one must be better than you at this skill. It can be website building, blog writing, coding, any sports, motivational speaking, trading, public speaking etc. If we relate it to my field- one must focus on one field of law like- Taxation, Intellectual Property Rights, Service matters, Criminal Law, Company and related laws, etc. Legal enthusiasts understand it better how developing a niche rewards in the long run.
- Learn to utilize time by making your day’s schedule. Identify how you can manage your time efficiently. I believe that you can earn anything except time. Time is limited for everyone(obviously till biotechnology advances to the next level). Till then identify the 20% of your daily time which gives you 80% of output.
- It is emphasized by the author that you can achieve anything if you learn to apply the 80/20 principle. Nothing new, we are tired of listening to this from our elders and teachers. I would also reaffirm that “Yes you can achieve anything but you need to put efforts for that”.
- Always give importance to networking. Learn the art of networking. Learn to stay in touch with your friends. You would agree with me that many works can be done easily with the help of your friends and networks. The authors apply 80/20 principle here as well where he suggests that 80% of your help comes from 20% of your networks/friends. He further asks to make a list of all your friends and networks and then focus on the top 20% of them.
- The Author states that he loves people who are lazy and intelligent. Given the choice to hire between a hardworking-average person and Lazy-intelligent person, he would choose the later one.
- Just like you and me the author also loves money. He says that like you, your money also works according to the 80/20 principle. Author loves the compounding effect of money and says that this miracle can be witnessed and enjoyed in the stock market. Each person must have a knowledge of the stock market and must invest his money after thorough research. Here also 80% of your wealth will be compounded by the 20% of the stocks. I am sure if this book was written 4-5 years back, the author would have mentioned cryptocurrency.
- 80% of your happiness comes from 20% of your actions. Here the author focuses on the part of donation. One must donate a part of his wealth as it gives true happiness which in return helps you to live longer. Author gives various examples of people who donate a part of their wealth in donation.
- At last the Author talks about our hidden friend. The hidden friend is the subconscious mind. You must talk to yourself everyday and remind yourself of your goals. You should imagine once in a day that you have achieved your goal and you are living the desired life. In short it is a way to awaken your subconscious mind.