Source Text

Author: [[Richard Koch]] Full Title: Beyond the 80/20 Principle Category: #books These principles fit the following criteria: They are acute observations, hypotheses, or ‘laws’ that frequently or always apply. They are not obvious, and are often counterintuitive. They are of great value in business, careers, and/or our personal lives. They are not as well known as they should be, and not used anywhere near as often as they should be. They have hidden depth and are worth exploring beyond their surface value. The key elements of the new approach are clearly visible, although they are at odds with prevailing practice: Work is about insight, not hours put in. Wealth creation is 1 percent perspiration and 99 percent inspiration. Intuition is more important than rational analysis. Business is driven by ideas and information. The best ideas create the most money. The best ideas are infinitely recyclable. What is key is not management or finance or clever strategies – it is the product. Nothing is more important than improving or reimagining the product, and developing a unique new business system to support it. Less is more. Businesses make breakthroughs when they subtract enough, when everything is taken away except the core. In theory this is easy, but in practice it is rarely done. When it is done the result is a landmark product – the printing press, bicycle, Model T Ford, aspirin, Coca-Cola, television, McDonald’s, Disneyland, microchip, personal computer, internet, smartphone, iPod – that shapes the future. Innovation and natural selection create the vast majority of new value in any economy. Walled gardens create fortunes for a decade or so; open networks create fortunes forever. Only exponential growth creates interesting new markets and fortunes. Exponential growth usually comes from simplifying a product, market, or business system that has great sophistication but too little simplicity. Take plenty of breaks. The Natural Laws are there to provoke thoughts and your business and life, so allow plenty of time for rumination and making random links to the challenges and opportunities you face. Overture On Appreciating a Wonky World You don’t see something until you have the right metaphor to let you perceive it. Thomas Kuhn In search of a few universal principles My power laws have to justify three criteria for inclusion here: The power law must be a coherent theory of how things work, with wide acceptance among scientists. The power law must transcend the discipline where it originated, and be used in more than one scientific discipline. The power law must be capable of application to business.

AI Summary

Beyond the 8020 Principle by Richard Koch presents wisdom from the contemplative traditions.

This entry was generated from Readwise highlights.