No longer are corporations and capital king. There's a new way to create wealth that is better than the traditional route of managerial capitalism. Creative individuals are at the heart of the new revolution. In this book Koch shows how a new 21st century individualism is replacing capitalism and how individuals can create wealth and wellbeing. The revolution follows one simple principle - the 80/20 principle. Success comes from exclusive focus on the few very powerful forces operating in an arena. The most important forces to which the 80/20 principle apply are ideas and individuals, but it also applies to the other raw materials of enterprise -customers, partners, technologies, products, suppliers and capital. Wealth is most effectively multiplied by subtraction and re-arrangement of industries, not through the traditional routes of aggregation of activities and assets. More separate enterprises are created, spawned by a new idea from individuals, and linked together by markets rather than by hierarchy and central planning. The 80/20 revolution is as important as the three other revolutions in economic history - agricultural, industrial and managerial - which changed economies and societies for ever. The same will happen again, over the next two decades. The most seminal change has already happened - the most successful corporations now revolve around a few individuals. The corporation serves individuals, not the other way round. We will witness a huge wealth transfer to individuals and away fom institutions, to entrepreneurs and away from passive investors.
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Richard Koch is the author of eleven accliamed books including the bestelling The 80/20 Principle. A 'serial entrepreneur', he has made large returns from a diverse range of businesses. He was a partner with Bain & Co and a co-founder of The LEK Partnership. He is now a non-executive director of four quoted companies and advises venture capital groups in the UK and South Africa.
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