The key to earning more and working less is to pick the right thing to do and to do only those things that add the highest value. It follows that the best people are always underpaid and the worst people always overpaid. Workers who are above average will tend to be paid more than those who are below average, but nowhere near enough to reflect the differential in performance. 80/20 at WorkĨ0% of the value in any organization or profession comes from 20% of the professionals. However strong relationships between X and Y, the ones that really matter for you are your with X and yours with Y. A chin is as strong as it’s weakest link. If you have a strong alliance with both X and Y and they have one between each other, that is excellent. You alone cannot make yourself successful (in any area of life). Focus on your attention on nurturing the key alliances of your life. You need them at the right time, in the right place and with a common interest in advancing your interests.ĭo not assume your friends and allies are all of roughly equal importance. You don’t need many allies but you need the right ones, with the right relationships between you and each of them and between themselves. Let those good investments compound: Nobody ever went broke by taking a profit, but many people never got rich by following the same procedure. It is crucial to pick this 20% well, and then concentrate as much investment as possible into it. Typically, 80% of the increase in wealth from most long-term portfolios comes from fewer than 20% of the investments. They seek indirect goals like money or promotions that may be difficult to attain and will prove when they are attained to be extremely inefficient sources of happiness. Few people spend enough time and thought cultivating their own happiness.Most of our successes come from races we want to enter. Most of our failures are in races others enter us into.You are hugely more productive at some things than others, but dilute the effectiveness of this by doing too many things when your comparative skill is nowhere near as great. The key is not effort, but finding the right thing to achieve. Everyone can achieve something significant.We can improve our lives dramatically by recognizing the turning points and making the decisions that will make us happy and productive. Our lives are profoundly affected (for good or ill) by a few events and decisions.80% of our achievement and happiness takes place in 20% of our time - and these peaks can be expanded greatly.80/20 thinkers know what generates their happiness and pursue it consciously, cheerfully, and intelligently, using happiness today to build and multiply happiness tomorrow. Happiness, like the mind, will atrophy if not exercised. But, happiness not spent today does not lead to happiness tomorrow. Money not spent can be saved and invested and, through the magic of compound interest, multiplied. Happiness is not money, and it is not even like money. The most valuable insight from 80/20 analysis will always come from examining nonlinear relationships that others are neglecting. Scientists and historians have long ago abandoned linear thinking. The trouble is that it is a poor description of the world and an even worse preparation for changing it. Linear thinking is attractive because it is simple, cut and dried. Traditional thinking is encased in a powerful but sometimes inaccurate and destructive mental model: It is linear. To be strategic is to concentrate on what is important, on the few objectives that give us comparative advantage, on what is important to us rather than others. The power of the 80/20 principle lies in doing things differently based on unconventional wisdom. 80/20 thinking is unconventionalĨ0/20 thinking discovers where conventional wisdom is wrong, as it generally is. Our objective is to leave action behind, do some quiet thinking, mine a few small pieces of precious insights, and then act selectively, on a few objectives and a narrow front, decisively and impressively, to produce terrific results with as little energy and as few resources as possible. The latter is usually rushed, opportunistic, linear, and incrementalist. 80/20 thinking is reflectiveĨ0/20 thinking is different from the type of thinking that prevails today. It teaches us to see the woods for the trees.Ĩ0/20 thinking is reflective, unconventional, hedonistic, strategic, and nonlinear in that it combines extreme ambition (in the sense of wanting to change things for the better) with a relaxed and confident manner. Thinking 80/20Ĩ0/20 thinking requires, and with practice enables, us to spot the few really important things that are happening, and ignore the most unimportant things. The 80/20 principle (aka the Pareto principle) states that 80% of the results come from 20% of the causes.
0 Comments
Leave a Reply. |
Details
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |