Pareto Law Presentation

7/30/2019 Pareto Law Presentation

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TheThe ITIT ServiceService BlogBlog

PresentsPresents

The8080/2020on ITIL

ITIL is a Registered Trade Mark, and a Registered Community Trade Mark of the Office of Government Commerce,and is Registered in the U.S. Patent and Trademark Office. Visit the Official ITIL site at http://www.itil.co.uk

TM


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The8080/2020on ITILTM

Or

Something to think about when youre inSomething to think about when youre in

your next meetingyour next meeting


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Introduction

In the 1800s an Italian economist,

Vilfredo Pareto, identified that

80% of the wealth of the countrywas owned by 20% of the people.

In the 1950s two of the early "quality gurus"Deming andJuran, noticed in their work that 80%of the defects came from 20% of the products, or20% of

the causes result in 80% of the defects.


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Strangely,

this law seems to apply to lots of things in life

20% of your stored phone numbers you call 80% of the time

You see 20% of your family and friends 80% of the time

80% of your monthly pay check vanishes in 20% of the month!!


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20%

20%

80%

80%Useful Many

Vital Few

The 80 / 20 Ruleis best summed up by remembering this image


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20%

80%

Vital Few

The 80 / 20 Rule

Do 20% of YourUsers Cause 80%of recurring Incidents ?

Does20% of YourInfrastructure

Cause 80%of your Outages?

Do 20% of yourStaffCause 80%ofYour Migranes?


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20%

80%Useful Many

The 80 / 20 Rule

Do you focus 80%of your time on the

vital20% of things thatreally matter?

Thevalueof

thePareto

Principlefo

ranIT

Service

Manageris

thatitremindsyou

tofocuson

the20%

percenttha

tmatters!


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What it meansforIT Service Managers The 80 /20 Rule means that in anything a few (20

percent) are vital and many (80 percent) are trivial.

In Pareto's case it meant 20 percent of the people owned

80 percent of the wealth. In Juran's initial work he identified 20 percent of the

defects causing 80 percent of the problems.

IT Service Managers know that 20percent of the work

(the first 10 percent and the last 10 percent?) consume

80 percent of your time and resources.

You can apply the 80 / 20 Rule (with caution!) to almostanything, from the science of management to the physical

world.


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What it meansforITIL Processes

Incident Management80% of Incidents are Caused by 20% of users / components / systems / services80% of Incidents are resolved by 20% of the Overall Support function (Service Desk / 1st Line Support)

80% of Service Penalties are caused by 20% of Major Incidents

Problem Management

80% of Problems are generated by 20% of all Incidents80% of Root Causes relate back to 20% of Changes

Change Management

80% of failed Change is generated by 20% of the IT department80% of late changes are generated by 20% of the IT department

80% of lead time exceptions are generated by 20% of the projects underway

Configuration Management

80% of CIs are created / changed by 20% of the Infrastructure

80% of CI updates are generated by 20% of the changes implemented


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Use Paretos Law to help you Understand:

- Those few items that affect the many

- Where your time is best spent

- Where your pain points are

- What to focus on in any given process

- How best to display graphs / charts to reveal the few Vs the many

- How your user base is behaving

- How your team are performing


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Warning!Warning!- Use the law as a guide only!

- In real-life actual data is rarely 80 / 20more like 73 / 27 or 68 / 32

- Use it as anothertool in your kitbag


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ServiceService BlogBlog http://www.ITServiceBlog.cohttp://www.ITServiceBlog.co

ServiceService TodayToday http://www.ITServiceToday.cohttp://www.ITServiceToday.co

ProjectsProjects TodayToday http://www.ITProjectsToday.chttp://www.ITProjectsToday.c

Further (Essential) ReadingFurther (Essential) Reading
http://www.itserviceblog.com/http://www.itserviceblog.com/http://www.itservicetoday.com/http://www.itservicetoday.com/http://www.itprojectstoday.com/http://www.itprojectstoday.com/http://www.itprojectstoday.com/http://www.itservicetoday.com/http://www.itserviceblog.com/

Pareto Law Presentation

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