The document discusses the 80/20 principle, also known as the Pareto principle, which states that roughly 80% of consequences come from 20% of causes. The principle is applied to various areas of life: 80% of results come from focusing on the top 20% of tasks, friends, experiences, etc. It encourages identifying the high impact 20% and focusing efforts there. Management consultants and entrepreneurs have used this principle to achieve significant success. The document provides examples of applying 80/20 to personal life, business, and gives action steps to evaluate current activities and focus on the most impactful 20%.

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Everything is 80/20

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80/20 Will Change Your Life
• School has taught us that humans get similar
results everywhere
• That a couple of points better on a test is just
a couple of points – “no big deal”
• So…
– Just focus on trying

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The Goal of this
• Always ask yourself, Am I focused on the 20%
getting 80% of my results

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AKA: Pareto Principle
• An Italian Economist
• In the early 1900s
• Discovered the 80/20 rule

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Management Consultants and Successful Entrepreneurs
• Have been using it for years, making billions off of it
• Concept has started to go mainstream in 1997 when
Richard Koch wrote the book 80/20
• Note on Richard Koch: He has 80/20 his life so much.
He makes around $400,000 a day working 1 hour a
day.
– I know this b/c Bought a course by Richard Koch

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Concept

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• Source: Salesforce.com

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The Power Curve Revisited

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The Difference is Huge
• The difference in abilities is huge
• Being at the top is 16 times or more better
• So if you are making $50,000 (average) now ,
there is a kid or two in your class making at least
$800,000
• By the way, this is not a guess. It always happens
• This is basically 100% true

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How to 80/20 Personal Life• Do the 20% of your work that leads to 80% of your results
• Prioritize the 20% of your friends who provide 80% of your support and
enjoyment
• Fill your life with the 20% of your experiences that provide 80% of your
happiness
• Do the 20% of your workouts that lead to 80% of your physical gains
• 20% of the food you eat damages 80% your energy
• 80% of your muscle gains come from 20% of the effort
• 80% of your income goes to 20% of things in your budget
• 20 percent of your investments will yield 80 percent of returns

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80/20 in Business
• 80% of sales come from 20% of your clients
• 80% of company results come from 20% of your
employees
• 80% of sales come from 20% of your products
• 80% of sales come from 20% of your salespeople
• 80% of your complaints come from 20% of your
customers

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If You Ignore 80/20
• Usually, the effort to get in the 20% that is
producing 80% of the results is not much
harder than being in the 50%
• If anything, it’s probably easier –if you have
the right mindset- to get into the top 20%
than it is to stay at the top 50%
• Why?

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Back to Tidying
• The concept is that you train your brain to
keep what is working and good for you
• And remove what is not working and not good
for you
• Therefore, if your brain is only looking for
good, you will find good.

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Action Step
• Make a list of all the key goals, activities,
projects and responsibilities in your life today.
Which of them are, or could be, in the top
10% or 20% of tasks that represent, or could
represent, 80% or 90% of your results?
– Keep these in your life

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Tidy Up
• Start to tidy up the 80% of the effort and stuff
in your life that doesn’t bring you the results
of where you would like to go

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Must To Do
Do not let more than 3 months go by without
performing a full 80/20 breakdown of all areas
of your life

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Ask Yourself
• What is the most impactful thing I can be
doing on a daily basis that gets me all the
results and I do nothing else?

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In Week 5
• We are going to go over how to use the 80/20
in all aspects of life
• Use 80/20 now to realize what you should
focus on