Pareto Chart Template

Excel Pareto Chart template on Excel Dashboard School! The essence of the Pareto principle, also called the 80/20 rule, is that the smaller part of the data (about 20%) is of decisive importance, opposite to a lot of little dominating data (80%).

The good news is that you don’t have to be a genius in math to understand and use this rule.

An economist named Pareto discovered the regularity behind the rule, and later, it can be applied to all fields of life!

Pareto has noticed that a minority group owns the larger part of the country’s economy. For example, 80 % of the wealth is owned by 20% of the people.

This observation is expanded to many other areas, called the Pareto principle. Let’s list here some interesting examples of it from everyday life using an excel Pareto chart template:

The Pareto principle is true in finance; 20% of your investments will bring 80% of your profit. Likewise, 20% of your work will result in 80% of financial returns.

But you can think of anything else. You can use this 80/20 rule regarding your e-mails and telephone calls. 80% of the incoming letters and calls are unimportant; they are about minor things, and 20% are important, influencing results with important factors.

Some examples of my life because the 80/20 rule is there in all fields. The letters mentioned above and telephone calls are very true about me too.

Besides, 20% of the invested money into my website brings 80% of the profit. This rule is true about the people affecting my life also. So a small portion of my ideas brings a big part of my success.

And I got my ideas from 20% of the read books.

What is the essence of the Excel Pareto chart?

The diagram consists of column charts in size decreasing order.

It not only represents the measured values but almost solely analyzes events, occurrences, states, and problems; it sorts out the few important things from the bulk of unimportant.

How to make an Excel Pareto chart?

Line up the data from the left with the largest value and make column charts after drawing the cumulative curve. On the picture, we mark this with a red line chart.

I grouped website categories on this particular graph based on the most interesting themes users are interested in. As a result, you can see that I reach 80% of all attendance out of only three important categories.

It is worth focusing on this. Make your analysis on your website or on any other subject you choose!

The Excel Pareto chart template spectacularly demonstrates the relative weight of the examined factors. This gives great help for us to concentrate the development effort on the most important factors.

A few improvements on the important factors more efficiently can bring larger results than lots of fragmented developments in unimportant fields.

What is the lesson of the Pareto chart template?

It is simple: focus on important things! And this is true of all the fields of your life. Then, determine your tasks and assign them to a certain grade.

What is most important, and which brings a significant proportion of the results.

Once you have found these tasks, concentrate on them, have these done, and devise the rest or leave it alone altogether.

Do the things you are happy about, that you like to do, that you can passionately do. But, of course, it is unavoidable to do certain things you do not like or do not love, but try to keep these on a minimal level and spend most of your time with important and pleasant things for you.

In what field of life do you recognize the 80/20 rule? I welcome it if you write it in the comments! Download the free template!

Additional resources:

Excel Chart Templates