The Universe is Wonky – The 80/20 Principle by Richard Koch

Richard Koch’s The 80/20 Principle is about much more than just the 80/20 principle.

The first part of the book applies the 80/20 principle to business. 20% of a business’ activities brings in 80% of its profits. 20% of the customers are responsible for 80% of the profits. The trick is to find which 20% this is. Koch provides the guidelines.

The 80/20 Principle

The second part of the book is where the fun is. Here Koch applies the 80/20 principle to your personal life. He approaches this from various angles. Koch describes self-help topics in an excellent concise manner. He limits himself to the bare description of advice. Where many self-help authors often stretch single topics to a full book, Koch keeps it short and to the point. Very elegantly and entertainingly.

Our lives can be improved applying the 80/20 principle. We can be happier and more effective.

The majority of input in our lives have little impact on our outputs, or a small minority of inputs have a dominant effect on our output.

Seek excellence in a few things, rather than being average in many things. Delegate everything that you are not good at or do not want to do. Target a limited set of goals.

Simple is beautiful.

In decision making:

  • Not many decisions are important.
  • Many important decisions are made by default (nothing else is possible realistically).
  • Gather 80% of data in 20% of the time.
  • Make a 100% decision.
  • Change you mind early.
  • If it works, double the bets.

80/20 thinking: think skewness, expect the unexpected, everything. Look for the invisible 20%, focus on the 20% activities, ignore the 80% activities.

80/20 is unconventional, hedonistic, non-linear.

Combine extreme ambition with a relaxed manner.

20% of your activities give you 80% of your happiness. Seek these activities, expand them.

Take objectives seriously.

20% of activities lead to 80% of achievements. Focus on these (a la The 4-hour Work Week by Tim Ferriss).

Hard work leads to low returns.

Do the things you like doing.

Be extreme.

How far could you deviate from the norm without being thrown out of your world?

Prioritize things that can advance your life, things you have always wanted to do, invest in innovative things that can slash wasted time, things that can’t be done, according to others.

Be radical. Screw time leaking activities.

Do things you are much better at than others – and that you like.

Friends: 20% of friends give 80% of joy.

Specialize in a very small niche, one you enjoy.

Manage money 80/20. But stock when people are pessimistic, sell where there is general optimism.

Trust your subconscious. Set goals, let these sink in your subconscious and your subconscious will be put to work to achieve these goals.

Networks and platforms are 80/20 or 90/10 forces.

Work in networks, work in small size, high growth teams.

Find the 80/20 idea.

About Polaroids by Douglas Coupland

In a Douglas Coupland burp, I reread Shampoo Planet and now Polaroids.

What strikes me now: Coupland’s style and subject matter could never be European.

The description of “stuff”

Bret Easton Ellis exaggerated it in American Psycho with the overly exuberant description of the brands of Bateman’s stuff. But even in Coupland you notice that strange for us Europeans yet somewhat exotic way of describing consumer goods.

Polaroids, Douglas Coupland

His world is so unimaginably young to us

A legacy of a few hundred years is already immeasurably deep. After the freedom struggle, suddenly the most important event in the history of the United States (yes I know Coupland is a Canadian) is 9/11. And 9/11 is described as an attack on the United States. European history is teeming with 9/11 events. In the US, a president is assassinated every now and then, but Delaware, Arizona or even Texas did not secede from the US. In a documentary on illegals, I hear Americans talk about “our country” as something based on centuries of history. But most Americans have immigrated to the country in the last hundred years.

Rehab

Coupland (paraphrasing – I lost the exact quote):

When there is an electricity outage, we sing songs, but as soon as electricity is back, we disappear in a haze again.

So it is during this vacation. For example, there is no television. You find that you read a book more easily and chat more, and feel much freer than when that blue eye demands its attention. It’s like quitting drinking or smoking: a TV addiction is in your daily pattern, and it takes a paradigm shift to get rid of it.

About legacy: a little further on, I read that Palo Alto is 100 years old. I rest my case.

The Creativity Leap – Natalie Dixon

Via Seth Godin’s podcast. He called The Creativity Leap “even better” then his own, at that time not yet published book The Practice.

The Creativity Leap

The Creativity Leap is about activating the creative process in individuals and in organizations, and how creativity can transform people and organizations.

Invest in hobbies. Learn new things, cultivating a childlike, open outlook.

Seek out ideas from outside your normal world.

Creative ideas are formed during daydreaming, during doing nothing. On the other hand: practice makes perfect, without a lot of practice there is no mastery.

Learn to ask better questions. Start with “big picture” questions and then descend to specific questions.

Open-source collaboration and informal structures lead to cross-pollination and better solutions.

Research leads to better questions.

Practice improvisation and out-of-the-box thinking.

Have explicit attention to intuition; intuition is also a data point.

Work in communities.

Facilitate hybrid thinking; combine tech and artistic thinking, analog and digital.

Reuse, remix what is already there.

Make things within the constraints that are there. Creativity works best within constraints.

Get out of your brain. Look at yourself and things from a different angle. Get messy. Combine deep specialization with broad experience. Combine rationality with ambiguity. Combine a tight organization with a loose network organization.

Drift.

Unreasonable Success and How To Achieve It – Richard Koch

I think it was Tim Ferriss’ podcast episode with Richard Koch that put me on Richard Koch’s trail. First I read The 80/20 Principle, then bought Unreasonabe Success.

In the book, Koch describes the wisdom he has extracted from the lives of amazing people such as Nelson Mandela, Bob Dylan, Winston Churchill, Jeff Bezos, Albert Einstein, Victor Frankl, Leonardo Da Vinci, and others. Including, of course, Bill Bain and Bruce Henderson. Who. Bill Bain and Bruce Henderson, former Koch bosses at Bain and company and BCG, respectively. Of course, it is totally out of place in this list, but let’s just say this is Koch’s tribute to his former work

From the lives of the greats, Koch has identified 9 milestones on the road to success. These landmarks form the backbone of this book. Koch describes the landmarks and illustrates them in a highly entertaining way with stories about the greats of this world.

These are the landmarks that Koch identifies.

Self-belief. The courage to get started. Related to self-doubt. Self-doubt strengthens self-confidence.

Olympic expectations. Think big, think huge. Set expectations much higher than normal. Visualize that you are a great achiever, making success much more likely.

Transforming experiences. Learn unusual things from unusual experiences. The conventional path will not lead to unreasonable success. Special experiences do. Develop these experiences.

Breakthrough achievements are mostly innovative, sometimes strategic achievements. Combine extreme determination with extreme flexibility. Be innovative and laughably ambitious, and your ideas come from the soul.

Make your own trail, create your own segment, Invent a new field, narrow that field, and develop a unique philosophy.
Find and drive your personal vehicle. Jump on a major current and stand out. Or create your own vehicle. We would call this a platform these days, I guess.

Thrive on setbacks. Be anti-fragile. Find risks and actions. No actions, no learning, no improvement. Reframe disasters and setbacks.

Acquire unique intuition. Intuition is unique when it is important, original, unproven, imaginative, and based on deep knowledge. Where is your opinion that most others disagree with? (forgot who said that – was it Peter Thiel?)

Distort reality. Apply extreme optimism and determination. Inspire others.

Company of One – Paul Jarvis

Some quick notes on the book Company of One by Paul Jarvis.

Company of One

Book is about staying small in business, and keep having fun doing it. It stead of growing to a monstrous bureaucratic organization, driven by shareholder value.

Companies of one have a clear sense of purpose, are more flexible, can change quickly, can give employees more autonomy and can have more focus.

Make customer relationships more important than customer growth (numbers).

Passion is overrated. Is a side effect of mastery, not the other way around.

Quirky product are not a problem. It distinguishes and provides focus.

More focus on customer success.

Teach everything you know.

Give away ideas.

Trust by proxy – referrals.

Launch quickly, and often.

Build a community.

Rereading, and Derek Sivers’ Hell Yeah or No

Halfway through December, I received my signed copy of Hell Yeah Or No. A good motive to re-read the book.

Derek Sivers - Hell Yeah or No

I had already read the ebook. I purchased in one same offer – ebook and signed paper copy. Given the work Derek has put into producing and distributed the signedhard-cover version, I can not imagine he made much money on it.

I seldomly re-read books. But this one is definitely in the re-reading category. As a sidenote, my re-reading category includes: Gerrit Krol (Dutch writer (probably one of the first people writing on Artificial Intelligence in De Man Achter Het Raam (1982!), definitely in the Netherlands, but probably also internationally), Douglas Coupland, Haruki Murakami, Tom Peters (not everything, but definitely The Little Big Things).

Kim Gordon – Girl In A Band

Somewhere on the great Interweb I found a review of Kim Gordon. I did not know the book. It had disappointed this reader. Nevertheless I purchased the book, being a long term lover of Sonic Youth and curious about Kim Gordon’s life.

Girl in a Band

I found the book very good. Nice details describing Kim’s environment, household things, stuff, music. Written in a loose style. The edition of the book I have – the pocket edition with the orange cover – is a bit grungy. A nice fit with the black and white pictures in the book.

Kim Gordon sketches an entertaining and informative image of punk-rock life in the 80s, 90s and 00s. There seems to be no end to the progress of Sonic Youth, until Thurston Moore falls into an affair with fortune hunter Eva Prinz (the name is not in the book, but it required little research to find out).

The tone turns from melancholic, in the description of het schizophrenic brother, to disillusioned in her marriage with Thurston Moore.

Beautiful book and woman, strange.

The Art of Doing – have a vision, persevere, collaborate

The Art of Doing by Camille Sweeney & Josh Gosfield was recommended here and there, so I put it on my list. The book turned out to be different than what I expected—not in a negative way. I had expected a self-help book with chapter-by-chapter advice. Instead, every chapter shares 10 learning points from the achievements of high-flyers in a wide variety of professions. The list of these people goes from author Stephen Dubner to tennis champion Martina Navratinova to soprano Anna Netrebko.

The Art Of Doing

A few common threads emerge among these people. All have a vision, persevere through bad times, and are collaborative. None of them are psychotic “leaders” you typically find in large bureaucratic organizations or egomaniac attention-seeking media addicts. All are driven by a why. All are hardworking and humble.

My highlights:

Martina Navratilova: don’t specialize, dream big, practice and exercise (do the work).

Simon Doonan (I didn’t know who he was before reading the book – Simon is a world-famous window dresser): Go Niche, be the best at something.

Tony Hsieh: discover your values (first).

Mark Frauenfelder (by far the best entry in the book!): Make the blog that doesn’t exist, Be original, get an attitude, Don’t bullshit (don’t waste people’s time), mix things, find unexpected things.