This refers to the uneven relationship between cause and effect in many social events. For instance, 80% of the revenues in a business might be derived from only 20% of its customers. So it might make sense for managers to focus particularly on a minor share of customers. This principle was proposed by American management consultant Joseph M. Juran, and has since become an important principle in the field of business management. It is named after Italian economist Vilfred Pareto who, in a book published in 1896, showed that 80% of Italy’s land wealth was owned by just 20% of its population.
