The 80/20 Principle: The Secret to Achieving More with Less

Koch introduces the 80/20 Principle as a practical law of imbalance, where a small percentage of inputs typically generate the majority of outcomes. He begins by referencing economist Vilfredo Pareto’s 1897 discovery that 20% of people owned 80% of England’s wealth. Koch argues that this skewed distribution recurs across contexts, framing the principle not just as an economic observation but as a tool to achieve more by focusing on what matters most. 

The first area Koch explores is business. He notes that 20% of products or customers often account for 80% of profits and shares how, in the 1960s, IBM optimized its software by focusing on the 20% of code used most frequently. These examples illustrate how focusing on high-yield inputs can improve efficiency and outcomes. However, Koch’s scenarios often reflect individuals or organizations with significant decision-making power, which may not reflect the everyday constraints of less empowered workers. They also lean toward a Western and relatively affluent readership, even as Koch applies the principle to broader social patterns from crime (where 20% of offenders commit 80% of offenses) to household routines (where 20% of clothing is worn 80% of the time); the clothing example, for instance, presumes access to a fairly diverse wardrobe.