Pareto Analysis — Focusing on the Vital Few Causes
80% of Problems Come from 20% of Causes — Pareto Analysis Identifies What Matters Most
The Pareto Principle
The Pareto Principle (the 80/20 rule) suggests that roughly 80% of effects come from 20% of causes. Applied to problem management, this means that a small number of root causes are responsible for the majority of incidents.
What Is Pareto Analysis?
Pareto Analysis is a statistical technique used to identify the most significant causes contributing to the problem. By focusing on the "vital few" rather than the "trivial many," teams can maximize the impact of their problem management efforts.
How to Perform Pareto Analysis
Step 1: Collect Data
Gather data on incident causes over a defined period:
Track incident categories
Record root causes
Count frequency of each cause
Step 2: Categorize Causes
Group incidents by cause or category:
What are the most common categories?
What are the most frequent root causes?
What systems have the most incidents?
Step 3: Sort and Calculate
Sort causes from most frequent to least frequent
Calculate the percentage of total incidents for each cause
Calculate the cumulative percentage
Step 4: Create a Pareto Chart
Bar chart showing frequency of each cause (descending)
Line chart showing cumulative percentage
Step 5: Identify the "Vital Few"
Identify causes that account for 80% of incidents
Focus problem management efforts on these causes
Example Pareto Analysis
Data from a service desk:
Cause
Count
% of Total
Cumulative %
Password resets
450
30%
30%
Application crashes
300
20%
50%
Network issues
250
17%
67%
Email problems
180
12%
79%
Printer issues
120
8%
87%
Other
200
13%
100%
The "vital few" : Password resets, application crashes, network issues, and email problems account for 79% of incidents.
Action: Focus problem management on these four areas.
Benefits of Pareto Analysis
Benefit
Impact
Focus
Teams concentrate on what matters most
Resource allocation
Invest where returns are highest
Quick wins
Fixing top causes has immediate impact
Strategic planning
Data-driven decision making
When to Use Pareto Analysis
Scenario
Use Case
Many causes
When there are too many potential causes to address all at once
Data available
When you have data on cause frequency
Resource constraints
When you need to prioritize
Quick results
When you need to show impact quickly
Combining Pareto with Other Techniques
Pareto identifies which causes to investigate (top 20%)
5 Whys investigates each of the top causes
Ishikawa diagrams show the relationships
Conclusion
Pareto Analysis helps organizations focus on the "vital few" causes that generate the majority of incidents. By targeting these causes, problem management teams can have the greatest impact with limited resources.
Action Items for Your Organization
Collect data on incident causes over a defined period
Perform Pareto Analysis on the data
Identify the "vital few" causes
Focus problem management resources on these causes
Track the reduction in incidents from top causes
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03 Nov 2021