Method guideDecision Making

Pareto Analysis

A practical method guide: clarify prerequisites and materials, understand the complete process, and look up outputs, pitfalls, and stop criteria.

ComplexityLow

Time30-60 min

Participants1-6

FormatWorkshop + async

MaturityCanonical

Plan

Prerequisite

What needs to be finished first

Complete firstComparable data

Each case belongs to one category under the same rule and within the same period.

Double counting distorts shares.

Complete firstPositive total

Values are nonnegative and their total is greater than zero.

A percentage is undefined when the total is zero.

Preparation

What needs to be ready before start

Materials

Raw data with category and measurement; table or spreadsheet for totals, shares and cumulative shares.

People / roles

Data analyst, process owner and category expert.

Pre-read

Agree metric, period and mutually exclusive categories; prepare complete raw data.

Time needed

30–60 minutes with prepared data

Setup

Preserve raw data unchanged; prepare an analysis table and adjacent bars with a cumulative percentage line.

Core question

The one question this method answers

Which categories contribute most to the measured total burden?

Flow

Phases with goal, actions, output and pitfall

Pareto Analysis orders consistently measured categories by contribution and adds their cumulative distribution. It reveals concentrations for further investigation, while rank alone does not establish cause.

Pareto Analysis· worksheet

Fictional example

Pareto analysis orders consistently measured categories by contribution and adds their cumulative distribution. It reveals concentrations for further investigation. Rank alone does not establish cause.

Pareto Analysis· worksheet
Rank	Item	Value (cases)	Share (%)	Cumulative (%)
1Enter category and measurements; calculate from unrounded values.	Login access	58	39.7	39.7
2Enter category and measurements; calculate from unrounded values.	Payment status	39	26.7	66.4
3Enter category and measurements; calculate from unrounded values.	Course navigation	25	17.1	83.6
4Enter category and measurements; calculate from unrounded values.	Other	24	16.4	100

1. Item
1
Login access
2
Payment status
3
Course navigation
4
Other
2. Value (cases)
1
58
2
39
3
25
4
24
3. Share (%)
1
39.7
2
26.7
3
17.1
4
16.4
4. Cumulative (%)
1
39.7
2
66.4
3
83.6
4
100

Fictional: 146 cases. Share = value / 146 × 100. Cumulative = running sum / 146 × 100; 122 / 146 = 83.6%. Round only for display.

ASQ: Pareto Chart

1
Set measurement basis
Set measurement basis
Goal
Reviewed measurement basis
Inputs for this step
- Raw data
- Category definitions
Actions
- Choose one unit and period; define categories and assign every case once.
- Check missing data, duplicate counts and the size of the other category.
Output
Reviewed measurement basis
Are all values measured using the same rule?
Quality check
Are all values measured using the same rule?
Pitfall
Frequency and cost are mixed in one total. Choose one metric or create two separate analyses.
Timing: 10–15 minutes
2
Total and sort
Total and sort
Goal
Descending contribution table
Inputs for this step
- Reviewed measurement basis
Actions
- Add values per category, calculate the total and sort categories descending.
- Break down large catch-all categories before choosing a focus.
Output
Descending contribution table
Does the total reconcile with the raw data?
Quality check
Does the total reconcile with the raw data?
Pitfall
The other category hides the largest contribution. Recode remaining cases and recalculate the ranking.
Timing: 10–15 minutes
3
Calculate shares and curve
Calculate shares and curve
Goal
Pareto distribution
Inputs for this step
- Contribution table
- Positive total
Actions
- Share = value / total × 100; cumulative = running sum / total × 100. Round only for display.
- Draw descending bars and a cumulative line ending at 100%.
Output
Pareto distribution
Does the curve end at 100% without adding rounded shares?
Quality check
Does the curve end at 100% without adding rounded shares?
Pitfall
Rounded percentages create incorrect cumulative values. Recalculate cumulative values from original measurements.
Timing: 10–15 minutes
4
Focus investigation
Focus investigation
Goal
Justified investigation brief
Inputs for this step
- Pareto distribution
- Ability to intervene
Actions
- Select the largest actionable contributions and agree a cause investigation with an owner.
- Later check impact on the same basis; also consider severity and exceptions.
Output
Justified investigation brief
Is focus data-based without claiming causation?
Quality check
Is focus data-based without claiming causation?
Pitfall
The largest category is immediately treated as a cause. Inspect individual cases and test explanatory hypotheses separately.
Timing: 10–15 minutes

Artifact

What comes out at the end

Sketch: what the artifact looks like

Pareto · 80/20-RegelUrsachen oder Items nach Wirkung sortieren, kumulativ betrachten und die wenigen größten Hebel fokussieren

Form

Descending category table and Pareto chart with value, share, cumulative share and a justified investigation focus.

Versioning / ownership

Record date and scope; retain the previous version and reason when changing it.

Tool alternatives

Spreadsheet with Pareto chart
Statistical software
Paper for small datasets

pareto-analysis-working-template.md

Agree metric, period and mutually exclusive categories; prepare complete raw data.

Pareto Analysis: Worksheet

Question

To be confirmed

Desired outcome

To be confirmed

Scope

Complete cycle Time: 30–60 minutes with prepared data

Complete this worksheet on paper or in your own document during the work.

Preparation for this scope

Method setup

Materials: Raw data with category and measurement; table or spreadsheet for totals, shares and cumulative shares.
Roles: Data analyst, process owner and category expert.
Advance information: Agree metric, period and mutually exclusive categories; prepare complete raw data.
Overall time needed: 30–60 minutes with prepared data
Setup: Preserve raw data unchanged; prepare an analysis table and adjacent bars with a cumulative percentage line.

Prepare for the work steps

Set measurement basis: Set measurement basis

Raw data
Category definitions

Total and sort: Total and sort

Reviewed measurement basis

Calculate shares and curve: Calculate shares and curve

Contribution table
Positive total

Focus investigation: Focus investigation

Pareto distribution
Ability to intervene

Pareto Analysis· worksheet

Rank	Item	Value (cases)	Share (%)	Cumulative (%)
1
2
3
4

1: Enter category and measurements; calculate from unrounded values.
2: Enter category and measurements; calculate from unrounded values.
3: Enter category and measurements; calculate from unrounded values.
4: Enter category and measurements; calculate from unrounded values.

Record metric, period and total. Share = value / total × 100; cumulative = running sum / total × 100. Sort descending; for ABC also define thresholds and the boundary rule.

ASQ: Pareto Chart

Set measurement basis: Set measurement basis

Expected artifact: Reviewed measurement basis

Are all values measured using the same rule?

Entry:

...

Are all values measured using the same rule?

Total and sort: Total and sort

Expected artifact: Descending contribution table

Does the total reconcile with the raw data?

Entry:

...

Does the total reconcile with the raw data?

Calculate shares and curve: Calculate shares and curve

Expected artifact: Pareto distribution

Does the curve end at 100% without adding rounded shares?

Entry:

...

Does the curve end at 100% without adding rounded shares?

Focus investigation: Focus investigation

Expected artifact: Justified investigation brief

Is focus data-based without claiming causation?

Entry:

...

Is focus data-based without claiming causation?

Open questions and next steps

...

Method guide: https://methodatlas.meierhoff-systems.de/en/methods/pareto-analysis/run-sheet

Example output

Concrete filled scenario, fictional example

Fictional example for orientation. Counts and timings describe this case and are not universal requirements.

pareto-analysis-beispiel.md

Concrete filled scenario, fictional example

Fictional example

Measurement basis: Fictional: 146 support cases in August, each coded exactly once.

Distribution: 58, 39, 25, 24 cases: 39.7%, 26.7%, 17.1%, 16.4%; cumulative 39.7%, 66.4%, 83.6%, 100%.

Investigation brief: Support first investigates 58 login cases; following an intervention, cases per 1,000 logins will be compared.

Pitfalls

Recognize symptoms and steer against them

Quick overview, the full text is in the matching phase in the flow

Set measurement basisFrequency and cost are mixed in one total.View in phase
Total and sortThe other category hides the largest contribution.View in phase
Calculate shares and curveRounded percentages create incorrect cumulative values.View in phase
Focus investigationThe largest category is immediately treated as a cause.View in phase