The Pareto Principle: How To Focus On What Really Matters When You’re Feeling Overwhelmed

(Reading Time: 5 Minutes)

How this simple principle can change your life. 

Legend has it that in 1896 while studying at the University of Lausanne, Italian economist and philosopher Vilfredo Pareto noticed that 20% of the peapods in his garden produced 80% of the peas.  

Fascinated by the concept of uneven distribution, inequality, and the possibility of a pattern emerging, he explored this principle further. In his first published paper, Pareto noted that 80% of the land in Italy was owned by only 20% of the population.

Fast forward almost 100 years, to the mid-1970s and management consultant Joseph M Juran; he further developed the theory and titled it the Pareto Principle. Since this time, economists, scientists and theorists the world over have marveled at how this simple rule of thumb fits sneakily into life.

Pareto Principle Definition

Also called the 80-20 rule, the premise of Pareto’s law is that 80% of the effect of something comes from 20% of the cause or, in other words, 20% of what we do produces 80% of the results. A small number of things in our lives make the most significant difference to us. Or rather, a small number of significant things really matter.

Pareto Principle Examples

There are lots of examples of the 80/20 rule, and it’s possible to see both the Pareto Principle in business and the Pareto Principle in Life.

For example:

In 2002, Microsoft reported that 20% of bugs, created 80% of the crashes experienced by users of their Office product.

In 1992, the United Nations showed that 20% of the world’s population were responsible for 80% of the world income.

You probably only wear 20% of the clothes in your wardrobe 80% of the time.

You likely socialise with 20% of your friends for 80% of the time.

20% of a company’s customers generate 80% of the profits.

The numbers are there for comparison purposes and may shift – 90/10, 75/25, or even more dramatically than this – but the principle remains the same:  a minority of things in our lives create outcomes that are vitally important and meaningful to us in the majority of situations.

Speak to the super successful.  Research shows that the productivity habits of extraordinarily effective people focus on the heart of this principle and that they filter everything out of their working lives other than tasks that they deem to be vitally important.

The Pareto Principle in Life

We can all benefit from Pareto’s observation for the simple reason that most things in life are not evenly distributed.   As rational human beings, we are productive and like to get things done – to work down the to-do list in a systematic fashion.

But the Pareto Principle can add an extra tier, or filter, of intelligence into the mix.  This can reshape the way that we approach situations and can positively impact the way we allocate our time so that we spend it on the things that give us the highest return.

Many of us exist in a state of overwhelm, where we have too much to do and not enough time to do it in. We mindlessly approach our mountain of tasks and start hacking away, bit by bit, blundering determinedly through the storm.

Well, suppose we were to apply the Pareto Principle to the way that we did this? Could it help us to see what is, and is not, a good use of our time?  Could it also help us set some personal boundaries to reduce that feeling of overwhelm?

Maybe, for some of us, it would permit us to accept, without a guilty conscience, that we really can’t get everything done to a standard that is ‘good enough’ in our minds.  Possibly it could empower us to realize that this is actually ‘OK’.

Maybe we would understand that in setting more definite boundaries for ourselves we can achieve what we want to, and get the results that we desire, by focussing on the things that matter – rather than trying to do everything.

Pareto Principle Example

Imagine you are baking cakes for a local charity bake sale. You’re in full-time employment, have a young family and don’t have the time for this although you think it is important. You have three hours of leisure time on Friday night and need to have 36 iced fairy cakes ready for 9 am on Saturday. Your three choices are:

1. You could go out buy all the ingredients, bake and ice the cakes yourself. This would take you 3 hours. Everyone will marvel at your personally handcrafted cakes. They will all sell.
2. You could go out to buy some ready-made cakes and then ice them at home with the kids. This would take you 1 hour. People will comment on how pretty your cakes look. They all sell.
3. You could go out and buy the cakes in their finished form. This would take you 10 minutes. These are cakes that people are familiar with. They all sell.

It’s probably not too much of a leap for us to see that Option B and Option C will give us more ‘bang for our buck’ – in other words, we get the result, with the smallest investment. Sure, some of us would want to do option 1 – and that’s fine. The point here is that you have a choice and it’s up to you to decide what drives the decision.

If it’s the stuff that you want to spend your time on, great. If not, ask yourself – do I need to do it? How can I get it done as quickly as possible if I don’t enjoy it, want to do it, or feel stressed about it?

The Pareto Principle Filter

We can use Pareto’s law as a mechanism to scrutinize what we need to accomplish and to filter out the ‘shoulds’ and ‘coulds’. In other words, make sure you allocate most of your time and effort to the 20% things that are going to have the most significant positive impact (the 80%) – either on your working life or in your personal life.

Take charge of your life and start to put in place some boundaries. You could even begin each week with a to-do list with a 20% mark up.

If you are an entrepreneur, think about your most lucrative clients. Sure, you don’t want to put off everyone else, but you also have to be realistic that you can’t do everything and run the risk of burning out. Manage yourself to focus on the things that bring the highest return to your business.

Links to Other Traits

As a time management tool, the Pareto Principle is an excellent strategy for the perfectionists and procrastinators amongst us. It’s a clear, incisive, and intellectually- based way to look at our use of time logically. It is not about making excuses and saying that we can’t cope. It’s a practical approach with a sound base in research.

Details do matter

While Pareto’s law is a useful tool to help us manage the allocation of our time and resources, it’s important to remember that the details do matter. In some instances, while the first 20 percent might be where the most significant results are seen, the other 80% are nonetheless significant.

For example, in painting a wall, when we put the paint on the wall itself (the 20% job), we see the most significant difference (the 80% impact). However, the wall is going to look pretty ugly unless you make sure that the edges are neat and tidy, that the gloss work on the wood has been completed, and that lumps and bumps have been filled and sanded (the other 80% of the job).

Pareto’s law is not perfect, but it’s a great rule of thumb to stick to when you feel overwhelmed and out of control. We all have 24 x 7 hours a day. Think wisely and efficiently about how you allocate them.

Further Reading From The Rediscovery of Me

The Pomodoro Technique: How to Get Things Done When You Don’t Know Where to Start

How to Work Smarter Not Harder