Time management
Pareto's Law (Twenty-eight Law)
1. 二八现象
2. 相关理论
3. 总结
1. Two-eight phenomenon
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1. Management: Usually 80% of a company's profits come from 20% of its projects; this 80/20 law has been repeatedly extended-economists say that 20% of people hold 80% of their wealth. There are two types of people. The first type accounts for 80% and owns 20% of the wealth; the
second type only accounts for 20%, but holds 80% of the wealth.
-Ignore the correlation between 20% and 80%, as if only approving the last bite of the pancake -
2. Psychology: 80% of human wisdom is concentrated in 20% of people, and they stand out from the crowd when they are born.
Great wisdom comes out of great hypocrisy, and the power of simplicity also holds up the blue sky
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3. The "Twenty-eight Law" in daily life: The following is the manifestation of the twenty-eight rule in life:
20% of important software needs 80% of the time to test
20% of people to succeed ---------- --------80% of people are unsuccessful, but the theory of success is similar to the idea of profit. There is no public obscurity. How to bear the humiliation to highlight the'man master'
20% of people use their necks to make money --------80%
20% of people make money below the neck think positively--------------80% think negatively
20% buy time------------- ---80% of people sell time,
20% of people find a good employee----------80% of people find a good job,
20% of people dominate others-------- ------80% of people are dominated by others,
20% of people do business ----------------80% of people do things,
20% of people value experience--- -----------80% of people value academic qualifications,
20% of people think that actions can lead to results ------80% of people think that knowledge is power,
20% of people, how do I get it? Money------80% of people I want to be rich, I will do what
20% of people love to invest-80% of people love to shop
20% of people People have goals-80% of people think blindly
20% of people find answers in questions-80% of people are in answers
20% of people looking for problems are looking to the long-term--80% of people only care about the 20% of people in front
of them, seizing opportunities--------80% of people People missed opportunities
20% of people plan for the future--------------80% of people woke up in the morning and wanted to do today
20% of people act according to successful experience -------- 80% of people act according to their wishes
20% of people do simple things -------- 80% of people do not want to do Simple things
20% of people will do tomorrow's things today ------ 80% of people will do today's things tomorrow
, how can 20% of people do it tomorrow ------------ 80% It’s impossible for people to make
20% of people take notes ---------------- 80% of people forget their sexuality and
20% of people are influenced by successful people------- -80% of people are affected by failure,
20% of people are in good condition--------------80% of people have a bad attitude,
20% of people believe they will succeed---- ----------80% of people are unwilling to change the environment
20% of people will always praise and encourage -------------- 80% of people will always abuse and criticize
20% Of people will insist--------------80% of people will give up
20% of people dare to face difficulties--------------80% of people Escape from reality
20% of people think they should meet the above 80%--------------80% of people think that I have 20% of the above-mentioned
crimes-20% of criminals' crimes
Account for 80% of all crimes; ——20% of car madmen, causing 80% of traffic accidents; [1]
——20% of married people, accounting for 80% of the divorced population (those who continue to divorce, distorted Statistics);
——About 80% of the world’s resources are consumed by 20% of the world’s population
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——80% of the world’s wealth is owned by 20% of people; ——80% of energy is wasted on combustion , Only 20% of it can be applied to vehicles, and this 20% of the input returns 100% of the output;
——In a country’s medical system, 20% of the population and 20% of diseases will consume 80% of medical resources.
——20% of products or 20% of customers earn about 80% of the company’s sales;
all in all, the unbalanced relationship between cause and effect, input and output, effort and reward can be divided There are two different types: the
majority, they can only cause a small impact; the minority, they cause a major and significant impact.
2. Related theories
Long-tail theory
"Long-tail theory" is considered to be a complete rebellion against the traditional "two-eight law". As shown in the figure on the right, the horizontal axis is the variety and the vertical axis is the sales volume. The typical situation is that only a few products have high sales, and most of the remaining products have low sales.
The traditional two-eight law (or 20/80 law) pays attention to the red part, thinking that 20% of the varieties bring 80% of the sales, so this part should be kept only, and the rest should be discarded. The long tail theory focuses on the blue long tail, and believes that this part can accumulate to a large enough market share, even more than the red part. But there are also many losers who do not really understand the realization conditions of the long tail theory.
Laws and Laws
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The law of technology
80% of the output value of the media industry comes from the technology equipment industry, and only 20% comes from the content industry. Internationally, the information technology industry, journalism and entertainment industries are collectively referred to as the big media industry. Generally speaking, software is actually the hardware of the big media industry. Only by attaching great importance to information technology and strengthening research and development can we lead the era of big media and occupy the commanding heights. -
Principles of the market The principle of communication reflects that convenience is the decisive factor in the selection of products under the situation of homogenization of products.
The TV industry generally believes that interactive TV uses set-top boxes to complete the interaction between viewers and programs, but the success of TV and SMS interaction repeats such a story again. In the network field, convenient and low-cost products such as text messages and games surpass e-commerce businesses. -
The law of entertainment
20% of the output value of the media content industry is news, and 80% of the output value is entertainment.
American news broadcast and television networks ABC, NBC, CBS, and CNN were all acquired by entertainment giants. Even the pure journalism has become a serious entertainment trend.
News Corporation’s income structure is like this: 40% comes from the news industry, 60% comes from the entertainment industry, and the news part mainly comes from its popular newspapers. More than 80% of the businesses of giants such as Viacom, Time Warner, Disney, Bertelsmann, Vivendi Universal, and Sony are concentrated in the entertainment field. -
The sideline law
20% of the media industry’s income comes from the main business, and 80% of the income comes from the development of related products. Related product development refers to the design, manufacture, and sale of related products based on content themes, roles, images, shapes, names, events, and creativity. The phase thus gains long-term vitality. -
The VIP rule
brings 80% of a company's profits to 20% of its customers. According to this principle, if these 20% of customers can be identified and better services can be provided, it will undoubtedly be the greatest help to the company's development and performance growth.
Although the main consumers of mass media entertainment are the most common consumers. But this does not prevent the "28th law" from being fulfilled. First of all, 80% of the revenue of products for the masses comes from 20% of customers. This is common sense in the media industry. Secondly, 80% of the revenue comes from 20% of the market. For example, the purchasing power of Beijing, Shanghai, and Guangzhou accounts for more than 50% of the national purchasing power. Third, the media value for 20% of major customers is very high. For example, the Discovery brand ranks among the top ten brands in the world. -
A strong brand with 20% of the brand rule holds 80% of the market share. Generally speaking, the market share of the first brand is more than twice that of the second brand, and it is the most valuable brand in the industry. In the Internet industry, the three major portals account for the vast majority of the Internet industry in terms of attractiveness and income.
The reason why the "Two-Eighth Law" is highly praised by the industry is that the business strategy of "doing something and not doing something" advocated by it has confirmed the vision of the media industry. To make good use of the "2-8 Law", the media industry first figure out which 20% of the companies are, so as to focus their management attention on these 20% of key business tasks, and take effective tilting measures to ensure Major breakthroughs were made in key areas, which in turn led to overall progress and overall progress in media operations. -
Practical significance The
80/20 rule is not only widely used in the fields of economics and management, but it also has important practical significance for our own development: learn to avoid spending time and energy on trivial matters, and learn to grasp the main contradictions.
A person's time and energy are very limited. It is almost impossible to truly "do everything well". You must learn to allocate time and energy reasonably. It is better to make breakthroughs if you want to be comprehensive. Spend 80% of the resources on 20% of the key benefits, and this 20% can drive the development of the remaining 80%.
The two-eight law can solve problems: time management problems, key customer problems, wealth distribution problems, resource distribution problems, core product problems, key talent problems, core profit problems, personal happiness problems, and so on. The following discusses the application of the 28th law from the perspectives of business and personal life: -
Companies use the
28th law to establish a risk-oriented internal control framework. The steps are as follows:
Strategic goals
Generally, companies will have a mid-to-long-term overall strategic goal. Tree analysis can be used to decompose the overall strategic goals of the enterprise: The department setting decomposes the goals of each operating unit into department goals, and then decomposes the department goals into process goals according to the business process. Through layer-by-layer decomposition, the overall strategic goal of the enterprise is finally decomposed into a pyramid-shaped goal system.
Identify risks After
establishing a target system, use the 80/20 rule to identify and establish major risks. First, identify the various risk factors faced by targets at all levels according to the target system, collect internal and external information related to risk factors extensively and systematically, and analyze the various potential risk events and consequences that may result in classification. Second, quantitative and qualitative methods are used to assess the probability of occurrence of risk factors and their degree of influence one by one or category by category, and divide and establish 20% of the main risks that must be managed and controlled according to the principle of priority. -
Internal control
(1) Determine the scope and control of risk management. The company calculates the cost of reducing 20% of the main risks to an acceptable level based on risk appetite and risk tolerance, and determines the scope of risk management and control strength in combination with comprehensive factors such as corporate management capabilities, human resources, and financial resources.
(2) Determine the response strategy to be adopted. Based on the scope and control of risk management, the enterprise adopts targeted risk control measures for policy regulations, business processes, personnel positions, information systems, etc., to establish preventive, inspective and corrective risk control mechanisms, in a specific scope The main risks of internal control; at the same time, procedural control tools or methods shall be adopted as far as possible for the control measures, and the corresponding monitoring mechanism shall be established for the control measures that cannot be procedurally controlled.
(3) Achieve a balance between cost and benefit. Article 3 of the "Basic Standards for Enterprise Internal Control" states that the goal of internal control is to reasonably ensure the legality and compliance of business management, asset safety, financial reports and related information, improve operating efficiency and effectiveness, and promote the realization of development strategies for enterprises. [4] It can be seen that the control measures adopted to establish the internal control framework only need to be able to reasonably ensure the realization of the control objectives, and there is no need to increase investment in order to absolutely avoid the occurrence of various risks. Therefore, it is necessary to grasp the "degree" of cost-effectiveness and achieve a balance between cost and benefit. -
Financial management
Contemporary financial management is undergoing such a transformation: financial management shifts its focus from the process and control of transactions to providing decision support and more in-depth formulation of global strategies. Therefore, high-level financial management inevitably requires an overall, long-term and creative plan for the financial activities of the enterprise based on the analysis of the impact of various factors on the flow of funds from a strategic perspective.
The 80/20 rule is an analytical method. The 80/20 rule believes that no matter it is time, organization, market, or every person and every company you encounter. Everything is only 20% of the essence, and most activities have no real contribution to the goal achieved. Therefore, an excellent financial strategy maker should know how to find and discover the important 20%, make full use of it, and cut down the useless 80%. 80% of the time will drive away 20% of the time, 80% of the assets are spent on the funds left for the other 20% of the assets, the effort spent on 80% of the activities, and the less effort will be placed on the more important 20% . -
Investment activity
Investment activity is one of the most important tasks in the production and operation of an enterprise. It is related to the long-term and stable development of the enterprise, as well as the social reputation and comprehensive financial strength of the enterprise. Therefore, the financial management department of the enterprise must make an in-depth analysis and evaluation of the long- and short-term investment of the enterprise to determine the most favorable investment plan. In investment, you will find an interesting 80/20 phenomenon: 20% of the investment projects absorbed 80% of the funds, and the other 20% of the funds were dispersed in 80% of the projects. Or 20% of the capital brings 80% of the profit, while the other 80% of the capital only receives 20% of the profit.
This imbalance comes from the level of return on investment and cost of capital, and is also restricted by operational risks and financial risks. Therefore, in making investment decisions, it is necessary to carefully analyze the advantages and disadvantages of the company, the market environment, use the payback period method, the net present value method, the internal income method, the profitability index method, etc. to carry out the feasibility analysis of the investment project, and correctly estimate the project. The benefits and risks.
Improve the rate of return on investment of funds, continuously improve the value of the enterprise, and achieve the overall goal of financial management. From the wealth of the long-term investment portfolio, 80% of the wealth comes from 20% of the investment. It is very important to choose this 20% of the investment. After the selection, we must pay attention to them as much as possible. For example, traditional wisdom teaches you not to put all your eggs in the same basket, but the 80/20 rule requires careful selection of a basket, put all your eggs in it, and then watch it carefully. -
Working capital
In the management of working capital, we must also pay attention to the use of the 80/20 rule. For example, when dealing with accounts receivable, it can be found that often 80% of accounts receivable are concentrated in a few large customers, and the remaining 20% of accounts receivable are scattered among 80% of small customers. Therefore, the establishment of credit standards to adapt to differentiated treatment. If we can pay more attention to these major customers, carefully assess credit risks, and formulate reasonable credit policies, then the efficiency of the use of accounts receivable can be improved. The ABC control method widely used in inventory management is also the practical application of the 80/20 rule in working capital management.
The essence of the ABC analysis method is to grasp the key points, treat them differently, control by classification, and manage and use funds well. According to the material types of enterprises, they are sorted and queued according to the size of the funds they occupy, and they are divided into three categories: ABC. Class A substances are the least in quantity, but occupy a large proportion of funds, so they should be strictly controlled. Type B substances are more expensive than Type A, and their prices are lower. In principle, they are not required to be subject to general control like Type A stocks. There are many types of C-type substances, but they are low in price and occupy very little capital. Therefore, appropriate relaxation of control can be implemented. -
Financial analysis
Ratio analysis is a commonly used effective method in modern enterprise financial analysis. It includes the current ratio and quick ratio that reflect the company’s liquidity; the accounts receivable turnover rate, inventory turnover rate, current asset turnover rate and total asset turnover rate that reflect the company’s operating capacity; asset-liability ratio, debt/ Equity ratio, the multiple of interest earned; according to a survey in the United States, the frequency of the various ratio indicators in the company's target is: earnings per share accounted for 80.6%, debt, equity ratio accounted for 68.8%, and after-tax equity return ratio accounted for 68.5 %, current ratio accounted for 62.0%, net profit after tax accounted for 60.9%, dividend payout ratio accounted for 54.3%, total invested capital gains after tax accounted for 53.3%, profit before tax accounted for 52.2%, and days of receivable turnover accounted for 47.3%, and the after-tax return on assets accounted for 47.3%. Among them, 6 of the 10 most likely to be included in the company’s goals are to measure the profitability of the company. -
Marketing
I. Product audiences
Using the 80/20 rule, you can first discover the marketing significance for a large number of users.
According to the number or frequency of using products, customers can be divided into a small number of users, medium users and a large number of users. Although a large number of users account for a small proportion of all users, their consumption is very large. American scholars’ research on the consumption of several daily necessities has shown this result. For example, in the shampoo market, the usage of a large number of users and a small number of users accounted for 79% and 21%, respectively. In the beer market, the usage of the two was respectively. Accounted for 87% and 13%. Obviously, shampoo companies should try to attract a large number of users-consumers who wash their hair every day and consume more each time. Instead of spending too much energy to attract a few small users. Brewers should also target a large number of drinkers instead of targeting consumers who occasionally taste beer because the sales volume obtained by winning a large number of users is the sum of a large number of small users.
Many companies recognize the importance of a large number of users. They formulate different levels of reward systems based on the number and frequency of customers' purchases to attract a large number of users to purchase. For example, sales promotion methods such as quantity discounts are used. The customer department is specifically responsible for the marketing of this consumer group. At the same time, companies can also take some measures to guide customers to appropriately increase the amount of use, so that a small number of users gradually turn into a large number of users. In order to achieve the purpose of increasing sales quickly.
2.
Regular customers Using the 80/20 rule, you can also discover the significance of marketing for regular customers. Under the influence of production concepts and product concepts for a long time. Enterprise marketers are often concerned with the sale of products or services. Their loquat marketing focuses on competing for new customers. In fact, compared with new customers. Old customers will bring more benefits to the company, and smart companies are working hard to create new customers at the same time. Will think of ways to transform customer satisfaction into lasting loyalty, like new customers, pay attention to the interests of old customers, and establish long-term relationships with customers as the goal. The importance of old customers to the development of the company is manifested in the following aspects:
1. Regular customers can bring direct economic benefits to the enterprise, first of all. Long-term repeated purchases by regular customers are a stable source of income for enterprises, and the increase in regular customers plays an important role in the improvement of profits.
2. Regular customers can bring indirect economic benefits to the enterprise. The recommendation of old customers is one of the important reasons for new customers to patronize. Individual behavior will inevitably be affected by various groups, including family. Friend leaders and colleagues are an important reference group with which they have frequent and lasting interactions. at the same time. With the reduction of trust in various commercial media.
3. A large number of loyal and old customers are the cornerstone of a company's long-term stable development, as opposed to new customers. Loyal old customers will not easily leave because of the temptation of competitors. Long-term mutually beneficial relationship with customers is a huge asset of an enterprise. It enhances the enterprise's ability to compete in the market, especially in a rapidly changing market, where the quality of market share is more important than quantity. This shows that. Regular customers have brought huge and stable profits to the company. Companies that can successfully retain regular customers know that their most valuable asset is not a product or service. It's the customer, so. Blindly competing for new customers is worse than keeping old customers better.
More and more companies recognize the value of old customers to the company. They regard the establishment and development of long-term relationships with customers as the core of their marketing work, and they continue to explore new marketing methods, such as staying in the highly competitive aviation industry, business and other fields. Resident customers have become the subject of corporate strategy.
Third, key customers The
use of the 80/20 rule can also help companies tap the value of some key customers. In the marketing process. The enterprise must not only carry out quantitative analysis of customers but also carry out qualitative analysis. Some key customers. Perhaps their purchases are not too high, and they cannot directly create a large amount of profits for the company but can have a greater impact. For example, domestic large-scale famous enterprises with considerable strength. Therefore, companies should strive to get some key customers with greater influence. However, they are often picky in the buying process. The purchase procedure is also cumbersome. Companies may have to pay more marketing efforts to get a small amount of orders. At ordinary times, we must pay attention to hard training internal strength and continuously improve our competitiveness.
The core of the marketing strategy using the 80/20 rule is to subdivide customers based on a comprehensive analysis of customer value. According to the importance of customers, the marketing force is reasonably allocated and the lasting and stable customer development strategy is designed from a global perspective. The brilliance of the marketing strategy using the 80/20 rule lies in the use of brand-new ideas. The key to success is to determine where the 20% of the customers that bring 80% of the profits are and keep them. -
Human Resources
Many companies are facing well-known management dilemmas, especially the resignation of 20% of core employees.
On the one hand, due to the redundancy problem, the burden of the enterprise is sinking, and the labor cost is rising. On the other hand, the loss of a large number of core employees has severely weakened the core competitiveness of the company, making the company in a passive situation in the cruel market competition.
The frequent resignation of employees has a huge impact on the company, especially the resignation of key employees with excellent performance, which often causes irreversible losses to the company. Duan Yongping's departure that year made a "backgammon", but it made "Little Overlord." Got into trouble. Therefore, once it is found that the core employees have a tendency to leave, they must try their best to keep them. Once the core employees decide to leave, it is particularly important to scientifically carry out the management of the resignation. For ordinary employees, that is, 80% of corporate employees, the frequency of resignation first occurs less frequently. Even if it occurs some, 20% of core employees are worthy of learning by human resource managers.
Management is a science, but it is even more of an art. The 80/20 rule is applied to the management of core employees and there are still many issues worthy of discussion. Only by being open to all rivers and dare to innovate can we find the best solution in the practice of management. In the practice of human resource management, it is necessary to implement classified management for different types of employees, especially for the core employees of the company, combining the 80/20 rule, and do a good job of the core employees in terms of job arrangement, salary design and departure management. Human resource management work.
The principle of the Twenty-Eight Rule is that you should not analyze, process, and treat problems equally. In business operation and management, you must seize the key few; you must find those that can bring 80% of the company’s profits, but only account for 20% of the total. For key customers, strengthen services to achieve the effect of getting twice the result with half the effort; business leaders must classify and analyze the work carefully, and spend the main energy on solving the main problems and grasping the main projects. -
Stock market applications
80% of investors in the stock market only think about how to make money, and only 20% of investors think about contingency strategies when losing money. But the result is that only those 20% of investors can make long-term profits, while 80% of investors often lose money. 20% of people who make money have 80% of the correct and valuable information in the market, while 80% of people who lose money do not collect information carefully for various reasons, but only grasp 20% of the information through stock reviews or TV. When 80% of people are bullish about the market outlook, the stock market is close to the short-term head, and when 80% of people are bullish about the market outlook, the stock market is close to the short-term bottom. Only 20% of people can shovel the bottom and get out of the top, and 80% buy and sell when the stock price is halfway through the mountain.
80% of brokerage commissions come from 20% of short-term customers' transactions, while 80% of stockholders' income comes from 20% of transactions. Therefore, unless you have skilled short-term investment skills, do not rush to participate in short-term trading. The large-cap index stocks, which account for only 20% of the market, play an 80% role in the rise and fall of the index. When studying and judging the trend of the market, pay close attention to the performance of these index stocks.
In the stock market, 20% of institutions and large investors account for 80% of mainstream funds, and 80% of retail investors account for 20% of funds. Therefore, investors can only make stable profits if they grasp the trend of mainstream funds.
Successful investors spend 80% of their time studying and researching, and 20% of their time practical. Failed investors spend 80% of their time on firm operations and 20% of their time to regret. The stock price is in a state of quantitative change 80% of the time, and is in a state of qualitative change only 20% of the time. Successful investors spend 20% of their time participating in the process of stock price qualitative change and 80% of their time to rest, while failed investors spend 80% of their time participating in the process of stock price quantitative changes and 20% of their time to rest. The most popular saying is: "80% of revenue comes from 20% of customers." Also known as the 20/80 rule.
The 28th phenomenon often mentioned in the Chinese stock market is actually that 20% of the stocks rise, and 80% of the stocks fall or do not rise.
In the adjustment market, only 20% of the time is rising, and 80% of the time is falling. And many investors have been busy and frequent in and out, which not only makes them physically and mentally exhausted throughout the year, but also suffers from losses, which is really thankless. The real master spends a lot of time in this kind of market, rests, patiently waits, and when the opportunity arises, he will get rid of a rabbit, and he will see the blood with a single blow, and will never be muddled. After a few rounds, considerable gains were made. This is not only easy and comfortable, but also enjoys the fun of making money in the stock market.
The Shanghai and Shenzhen stock markets have had an opportunity to make money every year for 13 years (even when the market index fell by 80% in 1993, there was a big rebound), but the opportunities are different. Why 80% of people still lose money is because they have a bad grasp of the time of entry and exit. After making money, they did not lock in profits, and they continued to make frequent moves when the market peaked. As a result, they were either deeply trapped in the decline of the market, or losses intensified in the process of continuous cutting. When his mentality was completely destroyed and his courage became smaller and he didn't dare to make any rash moves, the big market came, but he went out of his way. This vicious circle is a common feature of many losers. -
Time management
Clear attitude, prioritize and set long-term and short-term time management time management goals;
re-examine the work schedule, prioritize things, and relentlessly abandon low-value activities;
always do it first the most important thing.
Core concept: 20% of the resources of human society are related to 80% of resource activities.
Application decision: important things first, important products first, key people first, and core links first.
Application areas: politics, economy, military, social life, business operation, organization management.
3. Summary
In short, the 80/20 rule is an analytical method. The usefulness of the 80/20 analysis method is to make people notice the key cause of a certain situation, that is, to find those 20% inputs that lead to 80% of the output. If 20% of beer drinkers drink 80% of the beer, then This group of people should be the object of the beer manufacturers' attention, and try to get these 20% of people to buy it, and it is best to further increase their beer consumption. Similarly, when a company finds that 80% of its profits come from 20% of its products, then the company should do its best to sell high-margin products.
No activity is not affected by the 80/20 rule. A well-known management expert once said that if successful people analyze the reasons for their success, they will know that the 80/20 rule is established. 80% of growth vitality and satisfaction come from 20% of the target. The company should at least know this. Whoever is 20% will clearly see the direction of future growth.
- Life application
80/20 thinking, if applied to daily life, can help people change their behavior and focus on the most important 20% of things. The result of 80/20 thinking is to make people get more with less. Using 80/20 thinking, you must constantly ask yourself: why 20% can lead to 80%.
The following are the steps to apply the 28th law in life:
1. Set a goal and
enter 20%.
2. Make a plan
to observe the following matters:
encourage special performance, rather than praise the overall average effort;
seek shortcuts, rather than participate in the whole process;
selective search, rather than exhaustive observations;
pursuit of excellence in several things, nothing is necessary Good performance in everything;
no need to pursue all opportunities.
When we are at the peak of creativity and Goddess of Luck favors us, we must make good use of the rare "Twenty-eight Law". - 3. Action
Start action, pay attention to persistence. - 4. Conclusion
In applying the Twenty-Eight Rule, we must always pay attention to the analysis method, focus on the key points, and consider the problems mainly from the two perspectives of history and geography.
Reprinted Thanks^^: https://blog.csdn.net/csdn_aiyang
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