The Inception of the Pareto Principle in MBA

In 1906, the Italian economist and sociologist, Vilfredo Pareto (sometimes misspelled Wilfredo, Alfredo, or Vilfred) devised a mathematical formula which described the disproportionate income distribution in Switzerland at that time, observing that eighty percent of the wealth was controlled by a meager twenty percent of the families.
80/20 Rule UniversalityFurther empirical studies for other time periods, for other countries, produced the stunning result that they all followed the same pattern. Later analysis of distributions in industry and nature has demonstrated that 80/20 Pareto distributions were very common in various fields and not exclusive to income distribution.
In the late 1940s, in his work, The Quality Control Handbook, Dr. Joseph M. Juran accurately attributed the discovery of the uneven wealth distribution of nations to Vilfredo Pareto, but inaccurately attributed the generic discovery of this uneven distribution to Vilfredo Pareto (somtimes spelled Wilfredo, Vilfred, Wilfrido, or Alfredo Pareto) by referring to it as the "Pareto Principle". He admitted this inaccuracy in his writings after he was corrected by his peers. It was actually Joseph Juran's work which first recognized the applicability of the Pareto Principle within the context of inventory management. Recognizing and documenting this universal principle he called the "vital few and trivial many", Joseph Juran credited these findings to Pareto's work and thus it became known as 'The Pareto Principle'. Later, Juran wrote that if he was of a different stature he would have called it the Juran Principle since he was the first to describe this principle in writing.