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Pareto Priority Index (PPI)

Decision ModelsDecision making

Reference model

Steps for Pareto Priority IndexA sequence of 5 steps, read from the first to the last: 1, Identify Issues; 2, Collect Data; 3, Rank Issues; 4, Calculate Cumulative Impact; 5, Identify Priorities.Identify IssuesList all issues oropportunities.1Collect DataGather data on the impact ofeach issue.2Rank IssuesSort issues by impact indescending order.3Calculate CumulativeImpactDetermine the cumulativepercentage of total impact.4Identify PrioritiesSelect the top issues based oncumulative impact.5

Focus on the vital few factors that drive the majority of outcomes.

About this model

A method for prioritizing issues based on their cumulative impact, often visualized with a bar chart and line graph.

Originator not stated.

How to read it

  • Identify the key issues or opportunities to analyze.
  • Rank them by their impact and cumulative contribution.

What this does

Helps prioritize issues or opportunities by identifying the most significant factors contributing to a problem, based on the 80/20 rule.

When to use it

Use it when you need to focus on the few factors that will have the greatest impact on your objectives.

Not when: Do not use it when all factors are equally important or when qualitative factors outweigh quantitative ones.

What happens next

Conduct a root cause analysis on the top priorities identified.

Golden thread

Builds on ←

  • Problem statement
  • Data collection

Feeds into →

  • Action plan

Use this tool, free

Sign in to open the worksheet. Your work saves as you type, the AI can draft the parts you have not filled in, and you finish with an analysis and a 30/60/90-day action plan.

Drafted with AI and reviewed by Eccellere on 04/11/2026. Guidance, not advice: apply your own judgement.