Do you think every action always has an equal and opposite reaction?
Many experts believe that 80% of outcomes actually stem from just 20% of efforts. This idea, known as the Pareto principle or the 80/20 rule, was introduced by Italian economist Vilfredo Pareto in 1896.
The 80/20 rule, visualized through Pareto charts, is a powerful tool for identifying the key contributors to a problem or success. This helps you focus on the most significant factors, allowing for more targeted and efficient improvements.
via OpenUp While you can create a chart or Pareto diagram using Microsoft Excel, it often involves complex steps and can be time-consuming.
But you don’t have to scratch your head figuring out how to create a Pareto chart in Excel? In this guide, we’ll walk you through the process step-by-step process. We will also explore some alternative methods to help you create a Pareto chart effortlessly.
Let’s begin!
Creating a Pareto Chart in Excel
The process of creating a graph in Excel depends on the version of Excel you’re using and your Excel skills.
With Microsoft Excel 2016, Excel 365 browser or app, you can create a Pareto chart in a few simple steps.
However, older versions of Microsoft Excel lack the chart tools you need and there’s no direct option to create a Pareto Chart. You will have to combine the line chart and a column chart to get the Excel Pareto chart.
Let’s explore both processes one by one.
For Excel 2016, Microsoft Office 365, and later versions
To create a Pareto chart in Excel 2016 or later versions, follow the steps below:
Step 1: Prepare your data
- To create a Pareto chart, list all the values and categories in descending order. Start by adding all your data to an Excel sheet has neither the Pareto chart option nor the feature to combine two charts using the ‘Combo Chart Type‘ feature.
Here’s how you can do it:
Step 1: Prepare your data
You can follow the instructions we gave in the earlier section. First, organize your data in a table with two columns—the categories and the corresponding values. Then, arrange them in descending order of value and add cumulative and percentage values. You can do this manually using a formula or the ‘SUM’ function in Excel 2010.
Step 2: Create a basic chart
Create a 2D column chart using your data in Excel 2010 via Ablebits
- Select your entire data table
- Scroll to the ‘Insert‘ tab on the ribbon
- Click on the ‘Charts‘ button within the ‘Charts‘ group
- Choose the ‘2-D Clustered Column‘ option
This will generate a basic column chart with two data series: one representing the values (count) and another for the cumulative percentage.
Step 3: Format the cumulative percentage
Format the cumulative percentage in the bar chart in Excel 2010 via Ablebits
- Right-click on the bars representing the cumulative percentage
- Select ‘Change Chart Series Type’ from the context menu
- Choose the ‘Line‘ chart type in the ‘Change Chart Type‘ window
Step 4: Add a secondary vertical axis
Bar chart with a flat line in Excel 2010 via Ablebits If you have reached this step, you will notice a bar chart with a flat line. To get the curve that you want to see in the Pareto Chart, add a secondary vertical axis on the right-hand side. To get this:
- Right-click on the newly created line representing the cumulative percentage
- Select ‘Format Data Series‘
- In the ‘Format Data Series‘ pane, under ‘Series Options‘, check the box next to ‘Secondary Axis‘
This will add a secondary vertical axis on the right side of your chart specifically for the cumulative percentage values.
Add a secondary axis to your Excel chart via Ablebits
Step 5: Refine your chart
Your Pareto chart is ready in Excel 2010 via Ablebits With this, you have successfully created a Pareto chart in Excel 2010. To give it the same look and feel that you see with the latest Excel versions, you can make the finishing touches by:
- Setting the maximum value: Right-click on the secondary axis and choose ‘Format Axis‘. Under ‘Axis Options‘, adjust the ‘Maximum‘ value to 100%. This ensures the cumulative percentage line stays within a 0-100% range
- Adjust bar width: You can adjust the width of the bars for better visibility. Right-click on the data bars and select ‘Format Data Series…’ You can modify the ‘Bar Width‘ settings in the formatting options
- Hide legend (optional): If the legend is unnecessary, right-click on the legend and choose ‘Hide Legend‘
Limitations of Creating Pareto Charts in Excel
Microsoft Excel is a popular data visualization tool and is still widely used in most organizations. However, despite its simplicity and ease of use, the platform has several limitations, especially when performing a deeper analysis.
Some limitations can significantly impact your data analysis’s efficiency, accuracy, and effectiveness, especially for Pareto charts. These include:
Manual data labels and updates
It is difficult to sync and import large datasets from various data channels in Excel. We’ll have to input data manually or export it as a report from other tools into Excel. This is time-consuming and increases the risk of introducing human errors.
Complex formatting options
Creating visually appealing Pareto charts in Excel often involves complex formatting techniques, which can be challenging for users who are not proficient in Excel’s features.
While Excel offers some customization options, mastering them can be difficult for everyday users. Modern project management chart tools allow users to do this quickly, using drag-and-drop options with detailed controls over the look and formatting of the Pareto chart.
Integration challenges
Although Excel formats and reports are easy to integrate with most tools, integrating data from other project monitoring tools into Excel is not that easy. Integrating Excel charts with other project management or collaboration tools can be cumbersome, hindering efficient workflow and often creating data silos.
No real-time collaboration and updates
Excel does not offer real-time sync or integration with other tools. This can make getting realistic or accurate information with a chart quite a challenge. The Pareto chart has to be updated each time with new information to make it relevant, and managing multiple versions of the same chart can often be difficult, leading to confusion or potential errors.
Lack of scalability features
The biggest challenge with Excel or any spreadsheet tool is that the app slows down as the data becomes more complex and larger. It can lead to slow responses, noticeable lag in speed, or the spreadsheet not functioning properly or crashing.
These limitations on creating and maintaining a Pareto chart can significantly impact your productivity and the quality of your data analysis.
To overcome these challenges and create more efficient, accurate, and insightful Pareto charts, one may consider alternative options and project control tools specifically designed for data visualization and collaboration.
Create Pareto Charts with ClickUp
Microsoft Excel may be sufficient for creating a basic Pareto chart. However, for an interactive Pareto chart that updates itself with the latest information and inputs, you’ll need a more advanced solution.
To apply the Pareto principle to your data analysis, try using project control software like ClickUp . This tool allows you to:
Understand your focus areas
Organize your data into a centralized platform using ClickUp Table view for quick visualization and analysis ClickUp’s Table View lets you arrange and visualize your data from multiple tools and solutions in a single dashboard. Forget manual entry—use the import function or copy-paste your data directly into the table.
Generate your data in real-time to keep you informed with the latest updates. Organize your data easily using drag-and-drop columns without any Excel formulas or complex processes.
ClickUp’s Stacked Bar Graph Template
Use ClickUp’s Stacked Bar Graph Template to visualize complex data sets by converting them into interactive stack bar graphs, similar to the Pareto chart. This helps you to:
- Highlight the relationship between multiple data sets
- Understand patterns in your data and recognize the focus areas
- Compare different data sets visually and categories in an easy-to-understand visual chart
Collaborate with your teams
Engage with your teams and capture information using notes and mind maps in ClickUp’s Whiteboards
Consider the ClickUp Whiteboards feature to gain a collaborative workspace to create your Pareto chart alongside other project elements like tasks, roadmaps, and workflows.
Team members can work on the chart simultaneously, discuss changes, and update the data. This promotes transparency and ensures everyone is on the same page.
ClickUp Bar Graph Whiteboard Template
With multiple spreadsheet templates , create a chart to get a simple overview of your Pareto chart highlights in your dashboard. An easy-to-use option is the ClickUp Bar Graph Whiteboard Template , which allows you to compare quantitative data visually. This template helps in:
- Visualizing your data in real time using intuitive graphs and a Pareto chart
- Engaging in real-time with your team to brainstorm strategies or identify focus areas
- Organizing your information with custom status, fields, views, and more
Get real-time information in a compact dashboard
A powerful feature of ClickUp is its ability to generate data from multiple tools and visualize it in a single dashboard. This means no more switching between apps or opening multiple windows for your project analysis.
With ClickUp Dashboards , connect your data with other elements like images and links.
Use the ClickUp Dashboard feature to create cumulative flow and charts seamlessly
It allows you to leverage the 80/20 principle to get your Pareto chart highlights in one window, helping you understand what works for your organization and what doesn’t.
Try Excel alternatives like ClickUp to:
- Say goodbye to time-consuming formulas and formatting challenges
- Ensure everyone is aligned and contributing to the analysis
- Integrate your Pareto chart with your project management workflow
While ClickUp offers excellent analytical and visualization features to make it the ideal tool for creating Pareto Charts, its utility extends beyond it. This all-in-one project and productivity management solution is a comprehensive solution for all your organizational needs, including:
- Serving as a centralized hub for all your documents: With ClickUp Docs like ClickUp, this journey becomes even more seamless. From setting priorities and tracking progress to reducing unnecessary workload, ClickUp empowers you to embrace the Pareto Principle and achieve remarkable outcomes.
Ready to embark on a journey toward focused success? Get started with ClickUp today!