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Irregular Insights from the Principle

It is important to try to grasp the fluidity and force driving 80/20 relationships. Unless you appreciate this, you will interpret the 80/20 Principle too rigidly and fail to exploit its full potential. The world is full of small causes that, when combined, can have momentous consequences. Think of a saucepan of milk that, when heated above a certain temperature, suddenly changes form, swelling up and bubbling over. One moment you have a nice, orderly pan of hot milk; the next moment you can either have a wonderful cappucino or, if you are a second too late, a mess on top of your stove. Things take a little more time in business, but one year you can have an excellent and very profitable IBM dominating the computer industry and, before long, a combination of small causes results in a blinded monolith staggering to avoid destruction. Creative systems operate away from equilibrium. Cause and effect, input and output, operate in a non-linear way. You do not usually get back what you put in; you may sometimes get very much less and sometimes get very much more. Major alterations in a business system can flow from apparently insignificant causes. At any one time, people of equal intelligence, skill and dedication can produce quite unequal results, as a result of small structural differences. Events cannot be predicted, although predictable patterns tend to recur.

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Business Secrets

The 80 - 20 Principle is still the best-kept business secret. Considering the importance of the 80 - 20 Principle, it keeps being very sensible. Even the 80 - 20 term itself caught on very slowly and without any visible landmarks. Given the partial use and consecutive spread, it still isn't utilized fully by those who understand the idea. It is extremely versatile...

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