The world's greatest get rich bible

Chapter 63: First things first: Achieving effective self-management 5
Volume Three Chapter 3 First Things First: Achieving Effective Self-Management 5
Make good use of the 80/20 rule
As long as you can determine your own second-class priorities, and you can do it as soon as you know it, you can get twice the result with half the effort.In time management jargon, this is called the Plato Principle - 20% of the results are achieved with 80% of the activities.

— Stephen Covey
In 1897, the Italian economist Pareto accidentally noticed the wealth and income patterns of the British, so he conducted a painstaking research.Pareto found that most of the wealth in British society is only in the hands of a few people, and the relationship between the proportion of this part of the population in the total population and the amount of wealth owned by these people is extremely unbalanced.Pareto also found that this pattern of imbalance emerges in all areas of society.

Through a large number of specific facts, Pareto concluded that 20% of the people in the society probably own 80% of the wealth in the society. This is the famous 80/20 rule, that is, the [-]th rule.

In addition, there are many situations in the real world that conform to the 20/80 rule: 20% of criminals account for 80% of all crimes; 20% of careless drivers cause 20% of traffic accidents; Products, or 80% of customers, provide 20% of a company's profits: salesmen who account for 80% of the company's population account for 20% of the company's total turnover; The speaking rate accounts for 80% of all speaking.

That is to say, in many cases, what is important is often only a small part of the whole, but it plays a big role.This seems to mean that 80% of the effort we usually put in, that is, most of the effort, does not create benefits and effects, or does not directly create benefits and effects, while 80% of the gains come from only 20% of the efforts .

The 20/80 rule reveals a truth to people, that is, there is generally an unbalanced relationship between input and output, effort and gain, cause and result.A small part of effort can achieve big gains; a small part that plays a key role can usually dominate the output, profit and loss, success or failure of the entire organization.This fact can give a helpful hint: just focus on the important [-]% of your work, and you can solve the whole [-]%.

Many high-efficiency people have realized the important role of the 80/20 rule and have applied it reasonably in their work.For example, they know that 20% of growth, profit and satisfaction generally come from [-]% of customers.While other companies make it a priority to acquire new customers, they place a high priority on maintaining as long a relationship as possible with existing large customers.These [-]% "key customers" are an important source of company profits, so it is wise to always stay with these most important customers and provide them with thoughtful services.

In addition, efficient managers will also use the [-]/[-] rule when formulating the company's development strategy.

IBM is famous all over the world, and its success is no accident.As early as the 20s, IBM's managers were familiar with the 60/80 law and applied it in the company's development.

In 1963, IBM's computer system experts found that about 80% of a computer's usage time was spent on executing instructions for 20%.Based on this important discovery, the company's management immediately decided to rewrite the computer's operating software to make it easier for most people to access the 20%, and then use the computer easily.Therefore, compared with the computers of other competitors, the computers made by IBM are easier to operate, more efficient and faster.This made IBM computers popular all over the world for a while, becoming a leader in the computer industry.

Whether it is for entrepreneurs, businessmen, computer enthusiasts, technical engineers, or anyone else, the 20th rule is of great significance.This rule can promote enterprises to improve efficiency and increase profits; it can help individuals and enterprises to obtain more profits in the shortest time; it can make everyone's life more efficient and happier; it is also a way for enterprises to reduce service costs and improve service quality key.When doing anything, as long as you grasp the 80% of the key points, you can grasp [-]% of the success.

(End of this chapter)