Using the 80/20 Rule in your Business
by using the 80/20 Principles to achieve success.
an integrated Book Review 07 Aug 15 by Peter/CXO Wiz4biz
A new 21st century individualism is overtaking “corporation-as-king” capitalism, transforming the way we work & live. Today, real power rests in the hands of creative individuals like Bill Gates, Warren Buffett, Oprah Winfrey, & Steven Spielberg – who are changing the world one great idea at a time.
In “The 80/20 Individual” book, author Richard Koch reveals the secret of their success: they have discovered what they do, better than anyone else and rode it for all its worth. In this inspiring sequel to his classic bestseller “The 80/20 Principle”, Koch shows how to maximize success in your business & life by using the proven principle that 80 % of changes in the world result from the most powerful 20 % of actions & ideas. He’ll show you how to use your own powerful “20 % spike” – by using your most creative ideas & unique skills – to measure the amount of value you bring to your clients or customers. For most people, there is a huge disparity between their intrinsic value and the compensation they receive for their efforts. “The 80/20 Individual” shows you how to narrow that gap.
Examples. Drawing from his own success as an entrepreneur – as well as from the stories of scores of companies & individuals who have flourished as a result of an 80/20 mind-set – Koch offers a step-by-step method to remodeling your existing business, or creating a new one – one that most benefits you. He provides valuable insights on finding 80/20 partners, hiring 80/20 employees, & running an 80/20 business.
Benefits. By building a team that supports your efforts and excels in areas where you lack experience or knowledge, you’ll be able to focus your time & energy on your strengths. Productivity & profits will soar, because you’ll be doing what you do best – and enjoy the most. By using the 80/20 strategies outlined in the book, you can take control of your career and financial future.
20% Notes on 80% of the Book – A Brief Journey: Most people want happiness, not wealth. Wealth is a means to happiness, but it is not the best. People want control over their lives. If you know and can demonstrate you add great value, then you can reasonable set the agenda and context in which you provide it, because whatever you choose to take, is so much less than what you realize.
Three (3) common Characteristics of any Conscious Creation:
1. Creation is a matter of re-arranging already existing things, which . . .
2. Leverages the most powerful forces available (breakthrough: most productive way of doing something is enhanced by most powerful force changing to more powerful) and . . .
3. Occurs when ideas & individuals collide & collude
A business innovation, in order to survive, must enhance customer satisfaction.
The 9 Essentials of 80/20 Success in Business:
1. Use your most Creative 20 % to find your spike, grow it, milk it, & stick with it
2. Spawn or Mutate (modify to the Customer’s needs) Great Ideas
3. Find the “vital few” Profit Forces/ Features – that the Customer is willing to pay for, because they’re getting good Value.
4. Enlist Einstein – relativity/ecology: less time + superior product = success
5. Hire a great Team – only hire highly motivated people: 20% people; value oddballs (= diversity of ideas)
6. Do a small Trial to see how this 80/20 works – build confidence. Next, expand to a bigger project
7. Network and get to know other Business Leaders – to find out how they do it
8. Get Funded by having your processes running for awhile. Present your case on how you can use the Capital to expand
9. Progress is sometimes Zig Zag. We try something. It doesn’t work. How can we do it different, better? Try & re-try – until you succeed.
Comments: What is your experience using the 80/20 rule?