This presentation tells about the 80/20 principle, it is the rule which states that in any situation 20% of the inputs are responsible for 80% of the outcomes. Moreover I had explained about it in the presentation with examples.

1. Leadership Development
Presentation
Topic: The 80/20 Principle

2. What is 80/20 Principle?
The 80/20 Rule means that in any situation, 20 percent of the inputs
or activities are responsible for 80 percent of the outcomes or results
The principle was named after the Italian economist Vilfredo
Pareto, who observed that 80% of income in Italy was received by
20% of the Italian population.
The assumption is that most of the results in any situation are
determined by a small number of causes.

4. For Example
 80% of revenues are generated by 20% of customers.
 80% of complaints come from 20% of customers.
 The richest 20% of the humans have 80% of worlds income.
 Microsoft reported that 80% of the errors and crashes in windows and office are
caused by 20% of the bugs involved.
 People wear around 20% of their clothes 80% of the times.
 More than 80% of food comes from far less than 20% of land.

5. A ratio of 50:50 makes sense in relation to effort put in and results
gained. This mentality has driven society for generations. A clear
work/reward equation creates a stable society in which mediocrity is
accepted and conformity rewarded. Unfortunately, as Koch illustrates,
this is no longer the world in which we live.
The new world says that ‘keeping up’ will not be enough, that
competence can no longer be rewarded with success. You must do
something that comes easily to you and that you love, so you have a
tremendous advantage over others and can rise to the top of your field.

6. In the 80/20 world, those who apply its logic can expect exponentially greater returns
compared with input. However, that input must be of a uniquely high standard and
reflect the uniqueness of the giver.

7. Becoming a time revolutionary
Most of what we consider valuable comes from a fraction of how we spend
our time. To increase our effectiveness or happiness or what we earn, we
must expand that fraction beyond 10% or 20% to a much greater share of our
time. Koch says our society’s appreciation of time is poor. ‘We don’t need
time management,’ he says. ‘We need a time revolution.’

8.  Conventional time management is about increasing the efficiency of what
we do and becoming better at prioritization. Koch believes the failing of
all types of time management is the assumption that we know what is and
what is not a good use of our time. Its second fault is the assumption that
time is short. Koch says bluntly:‘Most people try too hard at the wrong
things.’

9. To seek improvements of 15%-25% in our use of time (as time management organisers
promise) is ‘tinkering around the edges’, says Koch. There is a lot of time once we start
spending it on the 20% that matters. Instead of being always short of time, the
dangerous truth is that we are waste out time doing unnecessary things.

10. Money
Best way to get it is to do something you enjoy
– If you enjoy something, you are likely to be good at it
– If you are good at something, you can create something to satisfy others and they will
pay you for it
– Aim to become self-employed as soon as possible and to start employing others.

11.  Money is overrated.
– Once you have adjusted to a higher standard of living, it may give you
little to no happiness.

– More wealth also requires more management of money!

12. What could you achieve that would make you proud, that no one else
could with the same ease?
1) Clarity of Your Desires, Goals, and Vision
2) Improve your Talent
3) Concentration

13. What achievements would fulfill both of these conditions:
1.) What would you enjoy more than 95% of your peers?
2.) What would you do better than 95 out of 100 of your peers?
Focus on what you find easy!
– Pursue those things where you are amazingly better than others and that you
enjoy most.

14. When someone else can do it for you, why do it yourself?
So delegate the work you can’t do yourself or can outsource without any
damaging effect on your business, to save your time.
Have fewer goals and to-do things, so not to waste your precious time chasing
many goals. Find shortcuts and use them.

15. Isolate the goals that are important and are showing more promise over
others. Then work to achieve those goals, but strategically not exhaustively.

16. THANK YOU