Beyond the 80/20 Principle: The Science of Success from Game Theory to the Tipping Point
336
Beyond the 80/20 Principle: The Science of Success from Game Theory to the Tipping Point
336Paperback
-
PICK UP IN STORECheck Availability at Nearby Stores
Available within 2 business hours
Related collections and offers
Overview
Millions of highly effective people around the world have read Richard Koch's global bestseller THE 80/
20 PRINCIPLE and enjoyed a serious advantage in the pursuit of success. Now,
BEYOND THE 80/
20 PRINCIPLE takes you even further.
Including the 80/
20 Principle itself - the radical power law that helps you achieve more by doing less - BEYOND THE 80/
20 PRINCIPLE reveals 92 more universal scientific principles and laws that will help you achieve personal success in an increasingly challenging business environment.
From natural selection to genes and memes,
BEYOND THE 80/
20 PRINCIPLE demonstrates,
in theory and in practice,
what science can teach you about business and success. It includes:
* Evolution by Natural Selection
* Business Genes
* Gause's Laws
* Evolutionary Psychology
* Newton's Laws
* Relativity
* Quantum Mechanics
* Chaos
* Complexity
* The Tipping Point
* Increasing Returns
* Unintended Consequences
'Richard Koch delivers some sharp cross-disciplinary comparisons and knows his onions on both sides of the business/
science fence... Koch's feet are firmly on the ground' THE SUNDAY TIMES - Business Book of the Week
'Cogently,
entertainingly and often controversially,
[Koch] draws parallels between the natural universe and the modern business world. Persevere with Koch's often elegant thought processes and you will look at your business quite differently' ENTERPRISE
Product Details
| ISBN-13: | 9781529331448 |
|---|---|
| Publisher: | Mobius |
| Publication date: | 12/01/2020 |
| Pages: | 336 |
| Sales rank: | 535,246 |
| Product dimensions: | 5.50(w) x 8.50(h) x 1.00(d) |
About the Author
investor and entrepreneur,
having made large returns from businesses as diverse as hotels,
restaurants,
personal organisers and consulting. A former partner at consulting firm Bain & Co,
and co-founder of The LEK Partnership,
the fastest growing and most profitable 'strategy boutique' of the 1980s,
Richard now lives the 80/
20 way between Gibraltar,
Spain,
Portugal and South Africa.
Table of Contents
The Power Laws (in order of appearance) xi
Preface to the New Edition xv
Overture: On Appreciating a Wonky World 1
In search of a few universal principles 1
The progress from order to chaos 4
A new gestalt for business? 7
The old régime has its place 9
Escaping obsolete mental models 11
Part 1 The Biological Laws 13
How Economic Information Drives Progress
Introduction to Part One 14
1 On Evolution by Natural Selection 15
Vary, reinvent, multiply, and vary again
The universe is run by selection 15
The origins of Darwinism 16
Natural selection: a simple but subtle theory 17
Six universal principles implied by evolution by natural selection 23
Darwin's economic primer 25
Where does evolution by selection work in business? 27
Fisher's fundamental theorem of natural selection 32
The experience curve-explaining evolutionary improvement 34
Time-based competition 35
Ulam's dilemma-is natural selection unfair? 36
Evolving to avoid failure 37
Summary 39
Action implications 40
2 On Mendel's Genes, Selfish Genes and Business Genes 42
Find the best business genes and vehicles
What Darwin couldn't explain 42
Mendel's laws of heredity 43
DNA and its structure 44
The selfish gene 46
The theory of memes 47
The theory of business genes 50
A new perspective on business 56
Business genetics for executives-six action rules 59
Summary 61
Action implications 62
3 On Gause's Laws 64
Differentiate
Gause's principle of survival by differentiation 64
Gause's principle of competitive exclusion 65
Coexistence, dominance, and bi-stability 65
Ecological niches and MacArthur's warblers 66
Finding unique niches 66
Who can invade whom? 67
Bi-stability is better than coexistence 68
The danger of having one key to success in an industry 70
Differentiation is a set of actions to take you to Uniqueland 70
Summary 71
Action implications 72
4 On Evolutionary Psychology 73
Manage and mutate Stone Age man
Meet the Flintstones-in the office 73
Punctuated equilibrium 73
The neurology of Stone Age man 75
Owners and intruders 86
The endowment effect 86
The ultimatum bargaining game 88
Are we really hardwired? 89
How to manage and mutate Stone Age man 92
Summary 95
Action implications 95
5 On Resolving the Prisoner's Dilemma 102
Cooperate with the best cooperators
Game theory 102
The prisoner's dilemma 103
Ridley's theory of social coagulation 107
Business collaboration as a means to defeat the evolutionary arms race 112
The theory of co-opetition 115
The cathedral versus the bazaar 118
Higher still and higher, the bounds of cooperation rise 121
The prisoners dilemma and your career 123
Summary 123
Action implications 125
Part One Concluding Note 127
Part 2 The Physical Laws 131
Newtonian and Twentieth-Century Physics
Introduction to Part Two 132
6 On Newton's Laws of Motion and Gravity 133
Escape from the gravity of competition
Newton's impact on the world 133
Are Newton's power laws Old hat'? 135
Action and reaction 137
The gravity of competition 138
Corporate gravity: how near and large is your competitor? 139
Escaping corporate gravity 144
Summary 145
Action implications 147
7 On Relativity 148
Think service-time
Farewell, clockwork universe 148
Einstein's special and general theories of relativity 149
Can relativity be applied to business? 152
A relative world view 156
Summary 162
Action implications 163
8 On Quantum Mechanics 165
Pursue both/and
The most majestic triumph of twentieth-century science 165
Schrödinger's cat 167
How relevant is quantum theory to the non-micro world? 169
Quantum theory used as a battering ram 172
Summary 176
Action implications 178
Part Two Concluding Note 179
Part 3 The Non-Linear Laws 181
Interdisciplinary Science
Introduction to Part Three 182
9 On Chaos and Complexity 183
Exploit the fractal nature of business
The third great scientific breakthrough 183
Chaos 184
Insights from chaos into the physical world 186
Chaos, chance, and business 190
Complexity and emergence 196
The edge of chaos 198
Complexity and business 203
Summary 211
Action implications 211
10 On the 80/20 Principle 214
Achieve more with less
More with less 214
The 80/20 principle 216
The ubiquity, universality and usefulness of the 80/20 principle 220
How to use the 80/20 principle in business 222
The simple firm 230
Charm 231
The power of weak ties 232
Von Foerster's theorem 233
The 50/5 principle 234
Mendeleev's periodic table of elements 234
Control theory 235
Fermat's principle of least time 237
Trichotomy law 238
Summary 239
Action implications 239
11 On Punctuated Equilibrium, the Tipping Point, and Increasing Returns 243
Identify sweet spots in emerging networks and dominate them Punctuated equilibrium 243
Plague theory 245
The power of the unexpected 248
Crossing the chasm 248
Exponential growth 250
Say's law of economic arbitrage 254
The law of diminishing returns 256
Metcalfe's law 260
The theory of industry sweet spots 262
So what has changed in the 'new economy'? 264
Summary 270
Action implications 271
12 On the Paradox of Enrichment, Entropy, and Unintended Consequences 273
Sustain success by creating new value every day
The power laws of caution 273
The paradox of enrichment 274
The law of entropy 278
The law of unintended consequences 280
Summary 286
Action implications 287
Part Three Concluding Note 289
Part 4 So What? 291
Introduction to Part Four 292
Finale: On the Gospel According to the Power Laws 293
Practice a few routes to success that really work
The scientific laws driving progress 293
The power laws change our perspective 296
The gospel according to the power laws 306
Index 309
Acknowledgments 319