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Master the Art of Business

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This is a preview of a key idea from The Personal MBA: Master the Art of Business by Josh Kaufman. Order your copy now...

The Critical Few

“Typically, causes, inputs, or effort divide into two categories: (1) the majority, that have little impact, and (2) a small minority, that have a major, dominant impact.” — Richard Koch, author of The 80/20 Principle

Key Ideas:

  • The Critical Few is also known as Pareto’s principle, or the 80-20 rule, which explains that in many areas of life 20% of the input produces 80% of the output, and viceversa.
  • You can achieve great results by focusing on the critical inputs that produce most of the outputs that you want.
  • The same can be applied for the results that you don’t want. Sometimes eliminating certain sources of input is the smart choice, because they are significant Opportunity Costs.
  • Find the inputs that produce the desired outputs and focus on them. Weed out the rest.

Questions for Consideration:

  • What 20% of inputs are causing 80% of your desired results, and how can you spend more time and energy doing those things?
  • What 20% of inputs are causing most of your frustrations and problem, and how can you eliminate them quickly?

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