Richard Koch
Encyclopedia
Richard Koch is a former management consultant, entrepreneur, and writer of several books on how to apply the Pareto principle
(80/20 rule) in all walks of life. Koch has also used his concepts to make a fortune from several private equity investments made personally. Koch’s investments have included Filofax
, Plymouth Gin
, the Great Little Trading Company and Betfair
. Previously he had been a manager at Boston Consulting Group
and later a partner at Bain and Company, before leaving to start management consulting firm L.E.K. Consulting
with Jim Lawrence and Iain Evans.
In his second book on the 80/20 phenomenon, The Power Laws, he discusses the principle as a basic principle for how the universe works, and sees the process of evolution
, as described by Charles Darwin
, as a special case of the 80/20 principle at work.
He also emphasizes that the 80/20 principle should not only be seen as method for making decisions or selections, but it should be combined with W. Brian Arthur
's concepts of positive feedback
and increasing returns.
In his book, Living the 80/20 Way, Koch focuses exclusively on how to succeed personally as well as professionally, to make a good life as well as a living - while doing less. He pioneered the idea that we can achieve more if we relax, enjoy life more, and focus on the few things that matter uniquely to each individual.
Koch graduated from Oxford University and received an MBA from the Wharton School of the University of Pennsylvania
. He lives mainly in Portugal, but also owns homes in Cape Town
in South Africa, and in the south of Spain
near Estepona
.
Pareto principle
The Pareto principle states that, for many events, roughly 80% of the effects come from 20% of the causes.Business-management consultant Joseph M...
(80/20 rule) in all walks of life. Koch has also used his concepts to make a fortune from several private equity investments made personally. Koch’s investments have included Filofax
Filofax
Filofax is a company based in the UK that produces a range of well known personal organizer wallets. The organizers are traditionally leather bound and have a six-ring loose-leaf binder system. The design originated at Lefax, a United States company based in Philadelphia who exported products into...
, Plymouth Gin
Plymouth Gin
Plymouth Gin is a style of gin that by law can only be produced in Plymouth, England, it being a Protected Geographical Indication within the European Union. The Plymouth Gin Distillery is the only gin distillery located in Plymouth in what was once a Dominican Order monastery built in 1431 and...
, the Great Little Trading Company and Betfair
Betfair
Betfair is the world's largest Internet betting exchange. The company is based in Hammersmith in West London, England. Since Betfair was launched in June 2000 it has become the largest online betting company in the UK and the largest betting exchange in the world. Betfair claim to have over 3...
. Previously he had been a manager at Boston Consulting Group
Boston Consulting Group
The Boston Consulting Group is a global management consulting firm with offices in 42 countries. It is recognized as one of the most prestigious management consulting firms in the world. It is one of only three companies to appear in the top 15 of Fortunes "Best Companies to Work For" report for...
and later a partner at Bain and Company, before leaving to start management consulting firm L.E.K. Consulting
L.E.K. Consulting
L.E.K. Consulting is an international strategy consulting firm, with headquarters in London.Started in 1983 by three partners from Bain & Company, James Lawrence, Iain Evans and Richard Koch, L.E.K. has since grown to over 900 consultants and 20 offices worldwide...
with Jim Lawrence and Iain Evans.
In his second book on the 80/20 phenomenon, The Power Laws, he discusses the principle as a basic principle for how the universe works, and sees the process of evolution
Evolution
Evolution is any change across successive generations in the heritable characteristics of biological populations. Evolutionary processes give rise to diversity at every level of biological organisation, including species, individual organisms and molecules such as DNA and proteins.Life on Earth...
, as described by Charles Darwin
Charles Darwin
Charles Robert Darwin FRS was an English naturalist. He established that all species of life have descended over time from common ancestry, and proposed the scientific theory that this branching pattern of evolution resulted from a process that he called natural selection.He published his theory...
, as a special case of the 80/20 principle at work.
He also emphasizes that the 80/20 principle should not only be seen as method for making decisions or selections, but it should be combined with W. Brian Arthur
W. Brian Arthur
William Brian Arthur is an economist credited with influencing and describing the modern theory of increasing returns. He has lived and worked in Northern California for many years. He is an authority on economics in relation to complexity theory, technology and financial markets...
's concepts of positive feedback
Positive feedback
Positive feedback is a process in which the effects of a small disturbance on a system include an increase in the magnitude of the perturbation. That is, A produces more of B which in turn produces more of A. In contrast, a system that responds to a perturbation in a way that reduces its effect is...
and increasing returns.
In his book, Living the 80/20 Way, Koch focuses exclusively on how to succeed personally as well as professionally, to make a good life as well as a living - while doing less. He pioneered the idea that we can achieve more if we relax, enjoy life more, and focus on the few things that matter uniquely to each individual.
Koch graduated from Oxford University and received an MBA from the Wharton School of the University of Pennsylvania
University of Pennsylvania
The University of Pennsylvania is a private, Ivy League university located in Philadelphia, Pennsylvania, United States. Penn is the fourth-oldest institution of higher education in the United States,Penn is the fourth-oldest using the founding dates claimed by each institution...
. He lives mainly in Portugal, but also owns homes in Cape Town
Cape Town
Cape Town is the second-most populous city in South Africa, and the provincial capital and primate city of the Western Cape. As the seat of the National Parliament, it is also the legislative capital of the country. It forms part of the City of Cape Town metropolitan municipality...
in South Africa, and in the south of Spain
Spain
Spain , officially the Kingdom of Spain languages]] under the European Charter for Regional or Minority Languages. In each of these, Spain's official name is as follows:;;;;;;), is a country and member state of the European Union located in southwestern Europe on the Iberian Peninsula...
near Estepona
Estepona
Estepona is a town and municipality in the region of the Costa del Sol, southern Spain. It is located in the province of Málaga, part of the autonomous community of Andalusia. Estepona is renowned for its beaches, which stretch along some 21 km of coastline...
.
Selected bibliography
- The 80/20 Principle. Nicholas Brealey Publishing, 1997, Doubleday 1998. ISBN 0385491743
- The Power Laws. Nicholas Brealey Publishing, 2000, published in the US as The Natural Laws of Business, Doubleday 2001. ISBN 0385501595
- The 80/20 Revolution. Nicholas Brealey Publishing, 2002, published in the US as The 80/20 Individual, Doubleday, 2003. ISBN 038550957X
- Living the 80/20 Way. Nicholas Brealey Publishing, 2004. ISBN 1857883314
- Superconnect: the power of networks and the strength of weak links. Little, Brown/WW Norton, 2010. ISBN 978-0393071603.