Pareto Analysis is a simple decision-making technique for assessing competing problems and measuring the impact of fixing them. This allows you to focus on ...MENUJointheClubForEUR€1!LoginSkillAreasBackSkillAreasLeadershipSkillsTeamManagementStrategyToolsProblemSolvingDecisionMakingProjectManagementTimeManagementStressManagementCommunicationSkillsCreativityToolsLearningSkillsCareerSkillsLearningFormatsBackLearningFormatsBite-SizedTrainingBookInsights(Audio)CareerCafeExpertInterviews(Audio)ForumsInfographicsLearningstreamsMindToolsAppMyLearningPlanQuizzesTemplatesandWorksheetsVideosForYourOrganizationNewsletterBlogAboutUsHomeDecisionMakingChoosingBetweenOptionsParetoAnalysisBytheMindToolsContentTeamBytheMindToolsContentTeam(96)96ratings8MINREADParetoAnalysisChoosingtheSolutionWiththeMostImpact©iStockphotoMackan65Usethisapproachtoidentifywhichchallengesyoushouldtacklefirst.Imaginethatyou'vejustbeenpromotedtoheadofdepartment.You'rebrimmingwithideasabouthowtoimprovethings,sowheredoyoustart?Ideally,youwanttofocusonfixingtheproblemsthathavethebiggestimpact.Buthowdoyoudecidewhichonetotacklefirst?ParetoAnalysisisasimpledecision-makingtechniqueforassessingcompetingproblemsandmeasuringtheimpactoffixingthem.Thisallowsyoutofocusonsolutionsthatwillprovidethemostbenefit.Inthisarticle,we'llshowyouhowtocarryoutaParetoAnalysis,andexplainhowtouseyourfindingstoprioritizetasksthatwilldeliverthegreatestpositiveimpact.WhatIsParetoAnalysis?ParetoAnalysisusestheParetoPrinciple–alsoknownasthe"80/20Rule"–whichwascoinedbyItalianeconomist,VilfredoPareto,inhis1896book,"Coursd'économiepolitique."TheParetoPrinciplestatesthat80percentofaproject'sbenefitcomesfrom20percentofthework.Or,conversely,that80percentofproblemscanbetracedbackto20percentofcauses.ParetoAnalysisidentifiestheproblemareasortasksthatwillhavethebiggestpayoff.Thetoolhasseveralbenefits,including:Identifyingandprioritizingproblemsandtasks.Helpingpeopletoorganizetheirworkloadsmoreeffectively.Improvingproductivity.Improvingprofitability