Friday, October 25, 2019

Quotes from Richard Koch's The 80/20 Principle

It’s a book that inspires you to rethink the way you do your business. The book explores the idea of doing less and achieving more by finding out 20 percent of work that’s responsible for 80 percent of profit.

"Don't believe the false modesty of those who write generously that their books have been 'team efforts.' In the end only an author (or authors) can write a book." ~~ Richard Koch (Book: The 80/20 Principle)

"The 80/20 Principle tells us that, at any one point, a majority of any phenomenon will be explained or caused by a minority of the actors participating in the phenomenon, Eighty percent of the results come from the 20 percent of the causes, A few things are important, most are not." ~~ Richard Koch (Book: The 80/20 Principle)

"Conventional wisdom is not to put all your eggs in one basket. 80/20 wisdom is to choose a basket carefully, load all your eggs into it and then watch it like a hawk." ~~ Richard Koch (Book: The 80/20 Principle)

"Application Of 80/20 Principle Implies That We Should Do The Following: celebrate exceptional productivity, rather than raise average efforts; look for the short cut rather than run the full course;  be selective, not exhaustive; delegate and outsource as much as possible; choose our careers and employers with extraordinary care, and if possible employ others rather than being employed ourselves;  only do the thing we are bets at doing and enjoy most; calm down, work less and target limited number of very valuable goals where the 80/20 Principle will work for us, rather than pursuing every available opportunity."  ~~ Richard Koch (Book: The 80/20 Principle)

"If you make most of your money out of small part of your activity, you should turn your company upside down and concentrate your efforts on multiplying this small part." ~~ Richard Koch (Book: The 80/20 Principle)

"Where a chunk of business is simple, the chances are that it is closer to the customers. There is less management to get in the way. Customers can be listened to and feel that they are important. People are willing to pay a lot more for this. For customers, the quest for self importance is at least as important as the quest for value. Simplicity raises prices as well as lowering cost." ~~ Richard Koch (Book: The 80/20 Principle)

"The road to hell is paved with the pursuit of volume. Volume leads to marginal products, marginal customers and greatly increased managerial complexity." ~~ Richard Koch (Book: The 80/20 Principle)

"The way to create something great is to create something simple. Anyone who is serious about delivering better value to customers can easily do so, by reducing complexity." ~~ Richard Koch (Book: The 80/20 Principle)

"Do more of what makes best use of time and money." ~~ Richard Koch (Book: The 80/20 Principle)

"Success is undervalued, under celebrated and underexploited. Often it is dismissed as a lucky streak. But luck, like accidents, doesn't happen as often as we think. 'Luck' is our word for success which we cannot fathom. Behind luck there is always a highly effective mechanism, generating surpluses regardless of our failure to notice it. Because we cannot believe our luck we fail to multiply and benefit from value -- creating virtuous circles." ~~ Richard Koch (Book: The 80/20 Principle)

"Insight requires reflection and introspection. Our objective as 80/20 thinkers, is to leave action behind, do some quiet thinking, mine a few small pieces of precious insight and then act: selectively, on a few objectives and a narrow front, decisively and impressively, to produce terrific results with as little energy and as few resources as possible." ~~ Richard Koch (Book: The 80/20 Principle)

"80/20 Thinking is hedonistic--- seeks pleasure. It believes that life is meant to be enjoyed. It believes that most achievement is a byproduct of interest, joy and the desire for future happiness. This may not seem controversial, but most people do not do the simple things that would be conducive to their happiness, even when they know what they are." ~~ Richard Koch (Book: The 80/20 Principle)

"Most people fall into one or more of the following traps, They spend a lot of time with people they do not much like. They do jobs they are not enthusiastic about. They use up most of their 'free time' (incidentally an anti-hedonistic concept) on activities they do not greatly enjoy. One could say that it is the triumph of experience over hope, except that 'experience' is self created construct that usually owes more to our perception if external reality than to objective external reality itself. It would be better to say that it is the triumph of guilt over joy, of genetics over intelligence, or predestination over choice, and in a very real sense, of death over life." ~~ Richard Koch (Book: The 80/20 Principle)

"To be strategic is to concentrate on what is important, on those few objectives that can give us a comparative advantage, on what is important to us rather than others and to plan and execute the resulting plan with determination and steadfastness." ~~ Richard Koch (Book: The 80/20 Principle)

"We have more than enough time. We demean ourselves, both by lack of ambition and by assuming that ambition is served by bustle and busyness. Achievement is driven by insight and selective action. The still, small voice of clam has a bigger place in our lives than we acknowledge. Insight comes when we are feeling relaxed and good about ourselves. Insight requires time --- and time- despite conventional wisdom is, there in abundance." ~~ Richard Koch (Book: The 80/20 Principle)

"The trouble is that we do enjoy hard work, or at least the feeling of virtue that comes from having done it. What we must do is to plant firmly in our minds that hard work, especially for somebody else, is not an efficient way to achieve what we want. Hard work leads to low returns. Insight and doing what we ourselves want lead to high returns."   ~~ Richard Koch (Book: The 80/20 Principle)

"Work is a key part of life, one which should neither over done nor underdone. Almost everyone needs to work, whether it is paid or not. Almost no one should allow work to take over their lives, however, much they claim to enjoy it." ~~ Richard Koch (Book: The 80/20 Principle)

"The inspirationalist quote such worthies as T.J. Watson, who said that 'success lies on the far side of failure'. My view is that normally failure lies on the far side of failure. Also, success lies on the near side of failure. You are already very successful at something and it matters not a whit if those things are very few in number." ~~ Richard Koch (Book: The 80/20 Principle)

"People help you because, there is a strong relationship between you. The best relationships are built on five attributes: mutual enjoyment of each other's company, respect, shared experience, reciprocity and trust." ~~ Richard Koch (Book: The 80/20 Principle)

"For alliances to work, each ally must do a great deal for the other party --- repeatedly, consistently, over a long period of time. Reciprocity requires that the relationship is not one sided." ~~ Richard Koch (Book: The 80/20 Principle)

"Seriously flawed relationships, when you spend a lot of time together but the result is unsatisfactory, should be terminated as soon as possible." ~~ Richard Koch (Book: The 80/20 Principle)

"Enthusiasm drives personal achievement and also infects others with enthusiasm, creating a multiplier effect. You cannot feign or manufacture enthusiasm." ~~ Richard Koch (Book: The 80/20 Principle)

"Those who are happy with most of their lives are more likely to be happier over all. Those whose happiness is highly concentrated is short bursts are likely to be less happy with life overall." ~~ Richard Koch (Book: The 80/20 Principle)

"Identify the times when you are happiest and expand them as much as possible. Identify the times when you are least happy and reduce them s much as possible." ~~ Richard Koch (Book: The 80/20 Principle)

"To succeed, you must aim for the top. To get there, you must turn yourself into a business." ~~ Richard Koch (Book: The 80/20 Principle)

"You will not become an acknowledged leader in anything that cannot command your enthusiasm and passion." ~~ Richard Koch (Book: The 80/20 Principle)

"Nothing is more important than your choice of alliances and how you build them. Without them you are nothing. With them you can transform your life, often the lives of those around you and occasionally, in small or large ways, the course of history." ~~ Richard Koch (Book: The 80/20 Principle)

"In almost any sphere of achievement, you can identify a small number of key collaborators, without whom individuals could not have succeeded but with whom individuals have had massive impact." ~~ Richard Koch (Book: The 80/20 Principle)

"80 percent of the value of your allies comes from fewer than 20 percent of their number. You don't need many allies you need the right ones, with the right relationships between you and each of them and between themselves. You need them at the right time, in the right place and with a common interest in advancing your interests. Above all, the allies must trust you and you must be able to trust them." ~~ Richard Koch (Book: The 80/20 Principle)

"Without relationships we are either dead to the world --- or dead. Although banal, this is true: our friendships are at the heart of lives. It is also true that our professional relationships are at the heart of our success." ~~ Richard Koch (Book: The 80/20 Principle)

"You may be able to work in an area that is your hobby or even turn your hobby into a business. Remember that enthusiasm can lead to success. It is often easier to make an enthusiasm into a career than to become enthusiastic about a career dictated by others." ~~ Richard Koch (Book: The 80/20 Principle)

"Those who achieve the most have to enjoy what they do. It is only by fulfilling oneself that anything of extraordinary value can be created." ~~ Richard Koch (Book: The 80/20 Principle)

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Hope you enjoyed reading this collection of quotes.