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

by Richard Koch

calm down, work less and target a limited number of very valuable goals where the 80/20 Principle will work for us, rather than pursuing every available opportunity

you need to provide quite exceptional or even ‘outrageous’ service to them. To create a super insurance agency of the future, advises consultant Dan Sullivan, ‘you’d build 20 relationships and cover them like a run with service. Not regular service, not good service. Outrageous service. You’d anticipate their needs when you could and you’d rush like a SWAT team when they asked you for anything else.’10 The real key is to provide surprising service, above and beyond the call of duty and quite out of line with prevailing industry standards. This may have a short-term cost but it will have a long-term reward.

it is not surprising that in large firms the top performers get less than they should and the mass of mediocre managers end up with more than they deserve.

Think about the few, most important achievements that are yours in your whole life and seek more of the same, if necessary switching jobs or even careers. Do not look for causes, especially not for causes of failure. Imagine, and then create, the circumstances that will make you both happy and productive.

Pursue those few things where you are amazingly better than others and that you enjoy most.

For the individual, too, it is better to know a few things well, or preferably one thing exceptionally well, than it is to know many things superficially.

Find your niche. It may take you a long time, but it is the only way you will gain access to exceptional returns.

Arguably, you should work for one of the average firms, then for one of the very best, and observe the differences.

risk minimization is overrated. If you want to become rich enough to change your future lifestyle, you need to attain above-average returns. The chances of doing this are much higher if you adopt an unbalanced portfolio. This means that you should have few investments: those that you are convinced will give high returns. And it also means that you should invest in one medium

Self-employed people who can determine their working hours and work scheduling are happier than employed people who cannot.