80/20 PRINCIPLE BY RICHARD KOCH

In this book Richard Koch explain how individuals and groups can achieve more with much and less effects and bring us happiness.Richard Koch is a british author,investor and entrepreneur.The 80/20 Principle was discovered for the first time in 1897 by Italian economist Vilfredo Pareto.

A good benchmark for this imbalance is 80% of output result from 20 % of inputs

The 80/20 Principle is used in business and investments IBM was one of the first company which discovered that that 80% of  computer time is spent executing about 20 % of operating codes.

A startup company called Belgo and MSI a hotel company realised that 20 % of the net worth come from 80 % of the investment gains.

General speaking  some business are inefficient and wastefull they not focus on what they should be doing, the 80/20 principle can reduce the complexity and raise profits.The 80/20 principle can easy move to 90/10,95/5 or 99/1, I have in mind some companies like Nokia,Motorola,Ericson have  lost their market share when Apple intoruduced the new concept of smartphone.

I deeply recomand everyone to read this book Kock show how working  and worrying less can transform our lives.