1. Identify Problems or Opportunities: List all the issues or opportunities you want to analyze. 2. Measure: Collect data to quantify each problem or opportunity. 3. Categorize: Group the data into categories that make sense for your business. 4. Analyze: Rank the categories from most significant to least significant. 5. Take Action: Focus on the top 20% of categories that contribute to 80% of the problems or opportunities.