Pareto 80/20 Analysis in Excel
Find the few categories that cause most of the result.
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Guide me through a Pareto analysis. Data: categories and values (for example complaint types and counts): [DATA]. What decision this will inform: [DECISION]. Give the steps to sort categories by value, compute percent of total and cumulative percent, mark the point at which cumulative share crosses my chosen threshold, and build a combination chart with bars and a cumulative line. Explain how to read it in plain language and warn that 80/20 is a rough pattern, not a law. Add a check that all categories are included, a rule for grouping small categories into Other, and a short template for writing one sentence of findings. Use an invented example with eight categories. Add a section on acting on the result: pick the top category, write a hypothesis about its cause, and plan a small test, then re-run the analysis a month later. Add a short example of the one-sentence finding, such as the top three of eight complaint types make up 71 percent of complaints in the invented data, and how to avoid claiming causes.
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