Identify Items: List all the items you want to analyze, whether they are products, clients, or tasks. Calculate Value: Determine the value of each item. This could be based on revenue, cost, or any other relevant metric. Rank Items: Rank the items in descending order based on their value. Categorize: Divide the items into A, B, and C categories. Typically, the top 20% of items are categorized as A, the next 30% as B, and the remaining 50% as C.