#80/20 Principle October 2

We may earn money or products from the companies mentioned in this post.

It has been over a month since I listened to a podcast. I had a couple of long drives to make this week and I decided to revisit the Tim Ferris Podcast.

I choose the episode where he has a conversation with Richard Koch the author of the book The 80/20 Principle.

Many of you are familiar with this concept. One of the first post I ever wrote on January 4 2014 was about Vilfredo Pareto and Joseph Juran and touched on this principle..

The oversimplification is that 80 percent of all our results in business and in life are caused by 20 percent of our effort and time. Some examples might include the following:

• On a committee, in the workplace, and in volunteer organizations 80% of the work is done by 20% of the people
• Twenty percent of motorists are responsible for 80 percent of automobile accidents.
• In business 80% of your sales comes from 20% of your customers. In fundraising 80% of your gifts come from 20% of your donors.
• In relationships 20% of the people you know provide you 80% of your happiness.

So how can this principle change our outlook on life? Let’s start with the importance of priorities. Stephen Covey talks about this in his book “The 7 Habits of Highly Effective People”. His 3rd Habit is to “Put First Things First”. We need to keep in mind that whatever gets us 80% of our results we need to put it at the top of the list.

“The key is not to prioritize your schedule but to schedule your priorities.”

Richard Koch has also written about a concept called “Happiness Islands” I suggest you give it a read at the link above.

A Happiness Island are the moments, hours, or days when we seem to be removed from all the worries and stresses of life. This occurs when we indulge ourselves in the activities that bring us joy. Those will be different for each of us.

When you are not on your Happiness Island you may find yourself wandering thru a Happiness Deserts. There is no joy. You may find in your life that is where you are spending 80% of your time.

So the key is to spend more time doing what makes you happy. It is also important to remember that just a small increase on what to spend time on will result in high rates of return.

Here is a brief review of the 80/20 Principle