pareto principle

The Pareto Principle

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I ordered my green smoothie, minus the chia seeds.

“Just so you know,” he said, “after Friday we’ll no longer be serving smoothies. They generate the smallest amount of our revenue and cause all of our headaches.”

“Have you heard of the Pareto Principle?”

“Yes, I love the Pareto Principle!”

We proceeded to geek out on the Pareto Principle for the next 10 or so minutes, after which I walked out with one of the last remaining green smoothies on the menu.

The Pareto Principle, or the 80/20 rule, states that for many events, 80% of the effects come from 20% of the causes. It is credited to Vilfredo Federico Damaso Pareto, who was born in Italy in 1848. In his case, he noticed that 80% of his pea plants generated 80% of the healthy pea pods, and then went on to discover that 80% of the land in Italy was owned by 20% of the population.

In the case of the restaurant I visited, 80% of their stress, irritation, and time investment tied back to 20% of their menu items (in this case, smoothies and smoothie bowls). And this 80% stress, irritation, and time investment produced under 20% of their revenue.

We can apply this same principle to nearly any type of business, to how we structure our work day, to the way we prioritize our work, and even how we approach our health and fitness.

Like Essentialism, this is one of those things that (for me) feels like common sense, yet takes constant attention and intentionality to apply in everyday life.

Here are a few ways that I like to practice the Pareto Principle.

  • Looking across all the projects I’m currently involved with, which fall in the 20% that create 80% of the positive impact and also feel the most joyful?

  • On the flip side, which projects fall in the 20% that create 80% of the stress and headaches?

  • Looking at the flow of my workday, where can I invest 20% of my time and effort for 80% of the returns? (For me, when doing independent work, the answer always falls in the early hours of the morning.)

  • Looking across my life at the things that aren’t working as well as they could be, where are the 20% of small irritations that are causing 80% of the lack of daily ease? (often, for me, this ties back to some sort of misalignment with my calendar.)

  • Which 20% of clothing items do I wear 80% of the time? (I’ve been working on continuously donating that other 80%, as for me there is a very clear 20%. I tend to wear the exact same few outfits on rotation.)

  • In which 20% of our house do we spend 80% of our time, and how can we maximize that 20% for the way we live?

  • Looking at my list of monthly, weekly, and daily to-dos, which 20% will yield 80% of the results?

The Pareto Principle, or the 80/20 Rule, can help us to focus our time and energy on the things that yield the highest results.

Do you use the Pareto Principle? If so, in what ways has it been helpful for you?