20/80 Principle

From Richard Koch’s 20/80 Principle

• Principle of keeping your life clear for the important things
• Be unconventional and eccentric in how you use time
• Attend the most important meetings
• Do the most important things/activities
• Be there at the most important times
• Know the most important people
• For both professional and personal relationships, fewer and deeper is better than more and less deep
• As early as posslbe, develop a consistent, long-term investment strategy, based on principles that have worked well in the past
• Continue to accumulate
• Make yourself happier by changing the people you see most
• Be aware of the snake pits: write them down
• B

My happiness Islands:

• Him
• Sleeping
• Accomplishing what I set out to do
• Exercising

My Unhappiness Islands

• waking up with little sleep
• useless, irrational thinking, daydreaming, fantasizing
• Getting nagged about money
• Runing out of money, asking for money

My Aachievement Islands

• Exercising in Year 1/2
• Deans List Sem
• Time when early sleep/wake up with morning exercises

10 Low value uses of time

1. Things other people want you to do
2. Things that have always been done this way
3. Things you’re not unusually good at doing
4. Things you don’t enjoy doing
5. Things that are always interrupted
6. Things few other people are interested in
7. Things that have already taken twice as long as you orginally expected
8. Things where your collaborators are unreliable / low qualit
9. Things that have a predictable cycle
10. Answering the phone

10 Highest value uses of time

1. Things that achieve your overall purpose in life
2. Things you have always wanted to do
3. Things already in the 20/80 relationship of time  to result
4. Innovative ways of doing things that promise to slash the time required and/or multiply the quality of results
5. Things other people tell you can’t be done
6. Things that use your own creativity
7. Things other people ahve done successfully in a different arena
8. Things that you can get other people to do for you with relatively little effort on your part
9. Anything with high-quality collaborators who have already transcended the 80/20 rule of time, who use time eccentrically and effectively
10. Things for which is now or never

When thinking about potential use of time

1. Is it unconventional?
2. Does it promise to mutiply effectiveness?

10 Golden rules for Career Success

1. Specialize in a very small niche; develop the core skill
2. Choose a niche that you enjoy, where you can excel and stand a chance of becoming an acknowledged leader
3. Realize that knowledge is power
4. Identify your market and your core customers and serve them the best
5. Identify where 20% of effort gives 80% of returns
6. Learn from the best
7. Become self-employed early in your career
8. Employ as many net value creators as possible
9. Use outside contractors for everything but your core skill
10. Exploit capital leverage

Koch’s 10 Commandments of Investment

1. Make your investment philosophy reflect your personality
2. Be proactive and unbalanced (invest in a few investments your convinced will give high returns)
3. Invest mainly in the stock market
4. Invest for the long term
5. Invest most when the market is low
6. If you can’t beat the market, track it
7. Build your investments on your expertise
8. Consider the merits of emerging markets
9. Cull your loss makers (>15%)
10. Run your gains

Daily Happiness Habits

1. Exercise
2. Mental stimulation
3. Spiritual/Artistic stimulation/mediation
4. Doing a good turn/deed
5. Taking a pleasure break with a friend
6. Giving yourself a treat
7. Congratulating yourself

Medium-term Strategies

1. Maximize your control
2. Be flexible
3. Set attainable goals
4. Have a close relationship with your partner
5. Have a few happy friends
6. Have a few close professional alliances
7. Evolved your ideal lifestyle

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