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

The regularity behind the rule was discovered by an economist, named Pareto and later turned out that it can be applied for all fields of life!

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

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

Pareto Chart how to

The Pareto principle is very true in finance, 20% of your investments will bring 80% of your profit. 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 negligible things and 20% of them important, influence results, with important factors.

Some example of my life, because the 80/20 rule is there in all fields. The above mentioned letters 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. Small portion of my ideas brings 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 template?

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 template?

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

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

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

Pareto Chart

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

Small number of improvements on the important factors by more efficient ways can bring larger results than lots of fragmented developments in all on the unimportant fields.

What is the lesson of the Pareto chart template?

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

What is most important and which ones are bringing the significant proportion of the results.

Once you have find these tasks, concentrate on them, have these done, and devise the rest or leave it alone all together.

Do the things that you are happy about, that you like to do, that you can passionately do. 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 thing that are important and pleasant for you.

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