The 80/20 Principle: The Secret to Achieving More with Less

Book Preface

This has been the most painful and well-researched book I have ever written. There is a certain irony here, since the 80/20 Principle tells us that I could have obtained a book 80 per cent as good in 20 per cent of the time. This would certainly have been my inclination and only the reader can tell whether the extra effort has been worthwhile. I think it has, but I have lost all objectivity. The effort involved has been much more collective than for any of my previous books. 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. But I want to thank some individuals without whom this book would either not have existed or would have been vastly inferior. First is Mark Allin, then at Pitman Publishing and now my partner in Capstone Publishing, who first had the idea of the book. Second is Nicholas Brealey. He has put terrific insight into the book. I am glad that the sales are rewarding this! According to the Von Manstein principle (see Chapter 13), people like Nicholas who are smart and industrious will not be as successful as those who are smart and lazy. To become a real star, Nicholas must work a great deal less. I have a theory that if he published half the number of books, and put all his effort into these, he’d make even more money. I hope my next book will not be one to get the axe! I am very grateful for his persistence on this book. Sally Lansdell has been the ‘third person’ collaborating to get the structure and text right. She is clearly a gifted publisher in her own right. Next, my researcher on the book, Nick Oosterlinck, did a terrific job of reconstructing the history of the 80/20 Principle from 1897 to 1997. He has now disappeared from my radar screen, but if he would like to get in touch I would be delighted to dispense some champagne his way. I should also thank not only Mr Pareto for originating the 80/20 Principle, but also Mr Juran, Mr Zipf, Mr Krugman and the unsung heroes at IBM in the 1960s for elaborating it. And also the hundreds of people from all walks of life and disciplines who have written magazine articles about the 80/20 Principle, many of whom I have quoted extensively as evidence of the way in which the principle can be used. I have made every effort to acknowledge these people in the references, but if there are any omissions please accept my apologies and let me know so that correction can by made in any future editions. I am particularly grateful to David Parker, lecturer in managerial economics and business strategy at the University of Birmingham Business School, whose work on the application of chaos theory to business strategy is full of brilliant insights, many of which I have appropriated. Finally, every true believer needs his trusted sceptics. Patrick Weaver and Lee Dempsey have fulfilled this role admirably, and it is much appreciated.

Richard Koch

Cape Town

January 1998

Contents
Revised Acknowledgements ix

Part One. Overture
1 Welcome to the 80/20 Principle 3 2 How to Think 80/20 21

Part Two. Corporate Success Needn’t Be a Mystery
3 The Underground Cult 45 4 Why Your Strategy is Wrong 61 5 Simple is Beautiful 89 6 Hooking the Right Customers 108 7 The Top 10 Business Uses of the 80/20 Principle 124 8 The Vital Few Give Success to You 136

Part Three. Work Less, Earn and Enjoy More
9 Being Free 147 10 Time Revolution 158 11 You Can Always Get What You Want 179 12 With a Little Help From Our Friends 191 13 Intelligent and Lazy 204 14 Money, Money, Money 224 15 The Seven Habits of Happiness 238

Part Four: Crescendo
16 Progress Regained 257 Notes and References 285 Index 299