Some time ago, Italian economist Vilfredo Pareto found that approximately 80% of the land in Italy was owned by 20% of the people; similarly he found that 80% of the peas produced by his garden were produced by 20% of the plants. The idea is that a few causes are responsible for a disproportionate amount of impact in any given environment, which is why the Pareto Principle is sometimes known as the “law of the vital few.” You’ll also hear the Pareto Principle referred to as the 80/20 Principle, but note that often the ratio is often even more heavily skewed (85/15, 90/10, or even 95/5).
The common reason that the Pareto Principle is cited in reference to efficiency is that it explains how we are able to make incredible leaps and bounds in our learning in relatively short amounts of time. Josh Kaufman’s TED Talk titled “The first 20 hours — how to learn anything” encapsulates this idea of short, smart, deliberate practice to achieve competency in anything (link here). Watch it yourself, but he basically explains how he breaks down his process of skill-acquisition into a deliberate formula, accomplishing a tremendous amount of progress (in his case, guitar-playing) in a short time span. It truly demonstrates the power of the Pareto Principle, showing that small actions can have disproportionate impact.
However, it’s important to realize the implications of the Pareto Principle. A corollary of the Pareto Principle is a version the Law of Diminishing Returns: every unit of progress is incrementally harder than the previous unit of progress.
We should note this alternative perspective of the Pareto Principle and realize if you truly want to shine in something, it will require a huge time and effort investment. The Law of Diminishing Returns is best understood by using a Pokemon analogy. When you first start out in your Pokemon journey, it requires relatively few experience points to level up your Pokemon. But as your Pokemon get to higher levels, it becomes increasingly harder to make them “level up.” Everyone knows that it is much harder to train your level 99 Swampert to level 100 than to raise a level 5 Torchic one level. In terms of experience point acquisition, it takes 700 times as many points to level up the Swampert than the Torchic.
The same principle holds true for all pursuits, not just Pokemon training. The Pareto Principle is a fundamental building block of efficiency because it reminds us that our time is limited, and we must judiciously allocate our time and resources to the true tasks that require this precious time.
How else should you apply the Pareto Principle to your life? The Pareto Principle can guide you in delving into making significant progress in a multitude of areas (ie. Josh Kaufman), or the Pareto Principle can also show you that to join the top echelon of individuals, you need to work extremely hard.