Inclusion of the Pareto Chart in the Strategic Management software allows companies to better define their priority actions
Always seeking to improve the user experience and facilitate the strategic management process for companies, the Gestão Estratégica software presents another data visualization option in its composition. With the Pareto chart, visualizing non-conformities, identifying areas for improvement, and defining action plans and their priorities become much simpler.
The Pareto chart is a tool that aims to present clearly and visually the priorities of problems to be solved. The chart makes it possible to view the frequencies of occurrences in descending order, so that vital problems are easily located, allowing for the elimination of future losses. This tool is one of the seven most used for quality management and is guided by the principle that a large part of losses have few causes, or that the causes are generally not vital; most of them can be considered trivial.
According to Neidson Silva, head of support and homologation at Stratec, the Pareto chart It serves as a report. “The differential of Pareto is that it allows the user to include as many items as they want (indicators, objectives, projects), and furthermore, the system allows this chart to be used in the strategic map presentation, in email dispatches, and on the dashboard,” he boasts.
José Luiz de Lima, product director at Stratec, adds that the Strategic Management software is a system for business management, not an operational one. And whoever is managing an organization needs a tool that helps them take strategic or managerial actions to solve problems. “The objective of Pareto chart it's to translate the action/benefit ratio. In other words, it prioritizes the action that brings the best result and allows the identification of important problems within the company, eliminating future losses,” he explains.
Lima explains that the Pareto chart is related to the Pareto Principle, which is also called the 80/20 rule. According to this principle, 80% of occurrences stem from 20% of causes. An interesting fact: the law was not created by the Italian Vilfredo Pareto, the creator of the chart, but rather by Joseph M. Juran, a renowned business consultant, who named the principle after Pareto as a tribute to the Italian economist. Using this law, it is possible to make inferences such as: 20% of customers are responsible for more than 80% of an organization's profits, or 80% of the world's wealth is in the hands of 20% of the population, for example.
“So, basically, that's what the Pareto chart is. We input all the information we want to analyze, what types of losses we want to investigate, consider how we want to evaluate the data, and then we organize it all, and the software itself gives us this result. So you just have to take action to resolve what the problem is,” Lima reinforces.
The inclusion of this improvement in the system came from a suggestion by one of Stratec's clients. “Clients are always suggesting new things. And most of our clients use this specific chart. The Pareto chart really helps managers make decisions,” says Lima.
Silva also emphasizes that the Pareto chart is just one of the many options the system offers. “We have an option in the system called comparative charts. And there, the user can compare period by period, they can have a cumulative comparison, pie chart, Pareto chart, quadrant chart, and bubble chart. The Pareto chart is one of the options we have in the system,” he states.
