With a simple observation that in his garden, 80 percent of the peas were borne by 20 percent of the pods, Vilfredo Pareto created a revolutionary principle. Known as the Pareto's principle or the rule of 80-20, the core of this principle lies in the fact, that 80 percent of the results which one receives in a field of activity is a result of 20 percent of the efforts.
In case of business, merely 20 percent of the customers help in generating 80 percent of the revenue. This principle is developed and presented in a systematic way by Richard Koch. He not only explains the intricacies of the principle but also goes a step ahead by explaining the reasons that make this principle work.