Pareto charts are best used when you want to identify the biggest contributing factors to a measurable outcome. They help with identifying priorities and are often used in risk management. The name comes from Vilfredo Pareto, the originator of the 80/20 Rule, or the Pareto Principle, which roughly states that 80% value comes from 20% of a factor. An example would be 80% of sales comes from 20% of our customers.