Pareto Analysis, based on the 80/20 Rule, helps prioritize problems that will have the greatest impact when solved. It’s ideal for time or resource-constrained environments.

1. List problems or causes.

2. Score each by impact (cost, time, frequency).

3. Rank them from highest to lowest.

4. Focus efforts on the top 20% causing 80% of issues.

A customer service team may find that 80% of complaints stem from just two issues—billing errors and delivery delays.

Pareto Analysis focuses energy on high-impact problems and helps managers make the most efficient use of resources.