The 80/20 Principle and 92 Other Powerful Laws of Nature by Koch, Richard -- Read -- Imperial Library of Trantor

Index

Cover Page Title Page Copyright Page Contents The Power Laws (in order of appearance) Preface to the New Edition Overture: On Appreciating a Wonky World

In search of a few universal principles The progress from order to chaos A new gestalt for business? The old régime has its place Escaping obsolete mental models

Part One—The Biological Laws

How Economic Information Drives Progress Introduction to Part One 1 On Evolution by Natural Selection

Vary, reinvent, multiply, and vary again The universe is run by selection The origins of Darwinism Natural selection: a simple but subtle theory Six universal principles implied by evolution by natural selection Darwin’s economic primer Where does evolution by selection work in business? Fisher’s fundamental theorem of natural selection The experience curve—explaining evolutionary improvement Time-based competition Ulam’s dilemma—is natural selection unfair? Evolving to avoid failure Summary Action implications

2 On Mendel’s Genes, Selfish Genes and Business Genes

Find the best business genes and vehicles What Darwin couldn’t explain Mendel’s laws of heredity DNA and its structure The selfish gene The theory of memes The theory of business genes A new perspective on business Business genetics for executives—six action rules Summary Action implications

3 On Gause’s Laws

Differentiate Gause’s principle of survival by differentiation Gause’s principle of competitive exclusion Coexistence, dominance, and bi-stability Ecological niches and MacArthur’s warblers Finding unique niches Who can invade whom? Bi-stability is better than coexistence The danger of having one key to success in an industry Differentiation is a set of actions to take you to Uniqueland Summary Action implications

4 On Evolutionary Psychology

Manage and mutate Stone Age man Meet the Flintstones—in the office Punctuated equilibrium The neurology of Stone Age man Owners and intruders The endowment effect The ultimatum bargaining game Are we really hardwired? How to manage and mutate Stone Age man Summary Action implications

5 On Resolving the Prisoner’s Dilemma

Cooperate with the best cooperators Game theory The prisoner’s dilemma Ridley’s theory of social coagulation Business collaboration as a means to defeat the evolutionary arms race The theory of co-opetition The cathedral versus the bazaar Higher still and higher, the bounds of cooperation rise The prisoner’s dilemma and your career Summary Action implications

Part One Concluding Note

Part Two—The Physical Laws

Newtonian and Twentieth-Century Physics Introduction to Part Two 6 On Newton’s Laws of Motion and Gravity

Escape from the gravity of competition Newton’s impact on the world Are Newton’s power laws ‘old hat’? Action and reaction The gravity of competition Corporate gravity: how near and large is your competitor? Escaping corporate gravity Summary Action implications

7 On Relativity

Think service-time Farewell, clockwork universe Einstein’s special and general theories of relativity Can relativity be applied to business? A relative world view Summary Action implications

8 On Quantum Mechanics

Pursue both/land The most majestic triumph of twentieth-century science Schrödinger’s cat How relevant is quantum theory to the non-micro world? Quantum theory used as a battering ram Summary Action implications

Part Two Concluding Note

Part Three—The Non-Linear Laws

Interdisciplinary Science Introduction to Part Three 9 On Chaos and Complexity

Exploit the fractal nature of business The third great scientific breakthrough Chaos Insights from chaos into the physical world Chaos, chance, and business Complexity and emergence The edge of chaos Complexity and business Summary Action implications

10 On the 80/20 Principle

Achieve more with less More with less The 80/20 principle The ubiquity, universality, and usefulness of the 80/20 principle How to use the 80/20 principle in business The simple firm Charm The power of weak ties Von Foerster’s theorem The 50/5 principle Mendeleev’s periodic table of elements Control theory Fermat’s principle of least time Trichotomy law Summary Action implications

11 On Punctuated Equilibrium, the Tipping Point, and Increasing Returns

Identify sweet spots in emerging networks and dominate them Punctuated equilibrium Plague theory The power of the unexpected Crossing the chasm Exponential growth Say’s law of economic arbitrage The law of diminishing returns Metcalfe’s law The theory of industry sweet spots So what has changed in the ‘new economy’? Summary Action implications

12 On the Paradox of Enrichment, Entropy, and Unintended Consequences

Sustain success by creating new value every day The power laws of caution The paradox of enrichment The law of entropy The law of unintended consequences Summary Action implications

Part Three Concluding Note

Part Four—So What? Introduction to Part Four Finale: On the Gospel According to the Power Laws

The scientific laws driving progress The power laws change our perspective The gospel according to the power laws

Index Acknowledgments