What are the steps for prioritizing solutions with the Pareto chart?

2 Generate solutions

The next step is to brainstorm as many possible solutions as you can for your problem. You can use various creative thinking techniques, such as mind mapping, brainstorming, or SCAMPER, to generate ideas. You can also ask for feedback from others, such as your coach, colleagues, or customers, to get different perspectives and insights. The more solutions you have, the better your chances of finding the best one.

3 Evaluate solutions

The third step is to evaluate your solutions based on two criteria: impact and feasibility. Impact refers to how much your solution will improve the situation or achieve the goal. Feasibility refers to how easy or difficult your solution will be to implement, considering factors such as time, cost, resources, and risks. You can use a scale of 1 to 10, where 1 is low and 10 is high, to rate each solution on both criteria. You can also use a matrix or a table to organize your ratings and compare your solutions.

4 Create a Pareto chart

The fourth step is to create a Pareto chart using your ratings. You can use a spreadsheet software, such as Excel, or an online tool, such as Google Sheets, to create your chart. To do this, you must sort your solutions from highest to lowest impact and then calculate the percentage of impact for each solution by dividing its impact rating by the sum of all impact ratings. Additionally, you must calculate the cumulative percentage of impact for each solution by adding its percentage of impact to the previous ones. Afterward, you need to create a bar graph with the solutions on the x-axis and the percentage of impact on the y-axis, followed by a line graph with the solutions on the x-axis and the cumulative percentage of impact on the y-axis. Finally, add a vertical line at 80% on the y-axis.

5 Interpret the Pareto chart

When interpreting the Pareto chart, the solutions located on the left side have the highest impact and should be prioritized. Conversely, those on the right side have the lowest impact and should be deprioritized or eliminated. Solutions above the 80% line have the highest cumulative impact, while those below it have the lowest cumulative impact. Solutions with high impact and high feasibility are most desirable and should be implemented first, while those with low impact and low feasibility are least desirable and should be avoided. Solutions with either high impact and low feasibility or low impact and high feasibility are trade-offs that must be considered carefully.

7 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?