Sign up to receive our monthly newsletter, which includes insights, updates, and recommended reads from the Carnegie Foundation.

Pareto Analysis

A Pareto analysis is used to analyze the frequency of problems or causes in a process and can help reveal process or system breakdowns. It builds on the Pareto Principle or “80-20 rule,” which states that for many outcomes, about 80% of the consequences come from 20% of the causes. The goal of this analysis is to identify the most influential causes of a problem in order to target improvement efforts.

To conduct a Pareto analysis, teams begin by identifying the key learning question(s) related to the causes of a specific problem and the data needed to answer the question(s). Collected data is used to create a Pareto chart, which displays the frequency of causes with corresponding cumulative percentages to highlight which causes are most significant.

This resource outlines how to construct and interpret a Pareto chart. Consider pairing a Pareto chart with: 

  • Fishbone diagram to analyze causes objectively using collected data
  • Process map or flow chart to understand where within a specific process or sequence breakdowns most frequently occur
  • Run chart to study variation in data over time based on the most influential causes identified

Download the Pareto Analysis Quick Reference (PDF)


Related Resources

Consolidating Your Understanding of a Problem Using a Fishbone Diagram

Run Charts

Tools for Unpacking Local Data

Tools for Understanding System Processes and Structures