80-20 Rule Applications
Pareto's Principle, the 80-20 Rule, should serve as a daily reminder to focus 80 percent of your time and energy on the 20 percent of you work that is really important. Don't just "work smart", work smart on the right things.
He also emphasizes that the 80-20 principle should not only be seen as method for making decisions or selections, but it should be combined with W. Brian Arthur's concepts of positive feedback and increasing returns.
In his second book on the phenomenon, The Power Laws, he discusses the 80-20 principle as a basic principle for how the universe works, and sees the process of evolution, as described by Charles Darwin, as a special case of the 80-20 principle at work.
Richard Koch is a former management consultant, entrepreneur, and writer of several books on how to apply the Pareto principle (80-20 rule) in all walks of life. Koch has also used his concepts to make a fortune from several private equity investments made personally.