The Value of Problem Management. In a presentation at Fusion 14, John Custy, Service Management Practitioner with the JPC Group offers a great overview of problem management concepts, frameworks as such as Kepner-Tregoe Problem Management, as well as the value problem management practitioners derive from this practice.

1. Copyright ©2014 JPCGroup Problem Management:
Making it Work in Your Organization
Problem Management Making it Work for Your OrganizationFusion 2014
John Custy
JPC Group
jpcgroup@attglobal.net
617.536.9225

2. Copyright ©2014 JPCGroup Problem Management:
Making it Work in Your Organization
WHY Problem Management
–
Provide the foundation for:
–
Critical thinking
–
Common language
–
Decreasing time to resolution
–
Decrease Downtime
–
Reduce costs and increase IT value
•
Key roles necessary for Problem Management
•
Techniques/Methodologies for Problem Management
–
Results
–
Increase Business value of IT Services
2

3. Copyright ©2014 JPCGroup Problem Management:
Making it Work in Your Organization
John Custy-JPC Group
jpcgroup@attglobal.net
Service Management Practitioner, Consultant and Educator
ITIL Expert & ITIL Service Manager
ITIL Intermediate –SS, SD, ST, SO, CSI, OSA, SOA, PPO, RCV
ITIL Practitioner –IPAD, IPPI, IPRC
KT Certified Instructor
ISO/IEC 20000 Consultant
ITSM Consultant/Manager based on ISO/IEC 20000
ISFS, ISMAS based on ISO/IEC 27002
HDI Faculty & Certified Instructor
KCS v4 verified Consultant
Distinguished Professional in IT Services Management John Custy
john.custy
ITSMNinja
johncusty
3

4. PROBLEM MANAGEMENT
Current state and challenges
5

5. ?
?
?
?
Today
Source: KT/ITpreneurs
Everyone Does it Their Own Way…
6

6. ?
Outcome
Source: KT/ITpreneurs
This doesn’t work well for teams. Result = significant rework for each escalation/transfers
7

7. *Chart represents week 1 2007 through week 12 2008
Linear toa team
of 16
OutcomeExtended resolution …
Source: KT/ITpreneurs
8

8. Copyright ©2014 JPCGroup Problem Management:
Making it Work in Your Organization
Agenda
•
Why Do Problem Management
–
Purpose, Objectives, Goals
–
Concepts
–
Challenges
–
Roles
–
Metrics
•
Problem Management Techniques
•
Problem Management Benefits
9

9. Copyright ©2014 JPCGroup Problem Management:
Making it Work in Your Organization
Two Fundamental Thinking Modes
Based on the research and book “Thinking, Fast and Slow” by the Nobel-prize winning psychologist Daniel Kahneman the brain has two fundamental thinking modes:

System 1: “Automatic System” informed by knowledge and experience

System 2: “Effortful System” used to consciously think through an issue in a systematic way
Which mode do you typically use?
Source: KT/ITpreneurs
10

10. Copyright ©2014 JPCGroup Problem Management:
Making it Work in Your Organization
The answeris …
2 x 2 =
What thinking mode did you use?
38 x 38 =
What thinking mode did you use?
11

11. Copyright ©2014 JPCGroup Problem Management:
Making it Work in Your Organization
When to use each approach
System 1 is best to use:

The issue is simple

I have seen an issue like this many times before

The cost of being wrong is low and the consequences are acceptable
System 2 is best to use:

The issue is complex

I have not seen an issue like this before

The cost of being wrong is high and the consequences unacceptable

Time for repeated System 1 thinking is over

Number of trial fixes, people involved or elapsed time
Source: KT/ITpreneurs
13

12. Copyright ©2014 JPCGroup Problem Management:
Making it Work in Your Organization
Problem Management

Purpose:

Eliminate recurring incidents and minimize the effect of incidents that cannot be eliminated

Objective:

Prevent problems and related incidents from happening

Eliminate recurring incidents

Minimize the impact of incidents that cannot be prevented
14

13. Copyright ©2014 JPCGroup Problem Management:
Making it Work in Your Organization
Problem Management
Goal:

Diagnose the root cause of incidents and the resolution to the problem

Ensure that the resolution is implemented through the appropriate control processes (change and release management)

Maintain information about problems and workarounds

Interface with knowledge management
15

14. Problem Management Key Concepts
Problem
Problem
}
}
Incidents
Incident
Known Error
}
Request for Change
Why is this important?
Your service management tooling must support these
relationships.
16

15. Copyright ©2014 JPCGroup Problem Management:
Making it Work in Your Organization
Problem Management Challenges

Understand the difference between Incident Management & Problem Management

Fixing the issue permanently is typically a task for problem management.

Management needs to prioritize Problem Management activities, not each analyst/technician.

Business justification is necessary for prioritizing problems
18

16. Copyright ©2014 JPCGroup Problem Management:
Making it Work in Your Organization
What Do We Really Need to Know?
What solutions are on the
table?
Specify objectives
What´s going on?
List issues and actions
What are risks / opportunities?
Determine preventive and contingent actions
Why did it happen?
Collect facts to find cause
19

17. The Situation
GrainStorage
Dairy
Farmhouse
Usual routeof chicken
21

18. Copyright ©2014 JPCGroup Problem Management:
Making it Work in Your Organization
What is Going On?
Customer Issues, Priorities, Impact. What When Where
Action Needed
Due
Done
Who
Chicken crossing road daily
Prevent Chicken crossing
Findout why chicken crosses the road
Journalist sniffingaround
Keep him off the farm
22

19. Possible Solutions
ObjectivesSolution Must Meet
Alternatives
BestFit?
Due
Who
Choose best way to keep poultry safe
New fencing
Lock chicken in coop
How to manage the story best
Minimize disruption to grain operation
Find the answer to the mystery
23

20. Why Did this Happened - Potential Causes
Diagnosis Data We Have
Data We Want
Due
Done
Who
One chicken (Rhode Is Red)
List events happening only on weekdays around 10am
Not guinea fowl, ducks, geese.
Going across road, not to grain store, farmhouse.
Weekdays at 10am, not earlieror later. Last 4 months, not 14 months before.
24

21. Risks and Opportunities
Risks and Opportunities list
Preventiveand Contingent Actions
Due
Done
Who
Story in papers causes intrusions on farm
News satellite trucks block access for farm vehicles
Place tractors in lane to prevent large vehicleaccess
25

22. KT Restore Dashboard
26

23. PROBLEM MANAGEMENT TECHNIQUESTHERE ARE PROVEN PROBLEM ANALYSIS TECHNIQUES THAT HAVE SHOWN TO DELIVERY POSITIVE RESULTS: BRAINSTORMINGPAIN VALUE ANALYSISCHRONOLOGICAL ANALYSISISHIKAWA DIAGRAMS (FISHBONE DIAGRAMS) PARETO ANALYSISKEPNER-TREGOE
34

24. Copyright ©2014 JPCGroup Problem Management:
Making it Work in Your Organization
Problem Management Techniques
Brainstorming

The most common type of problem analysis

Relevant experts meet together (physically or virtually)

Identify their ideas on the potential cause of the problem

Sessions can be very constructive

Sessions can also be time consuming.

Sessions should be structured with a moderator
–
Documents the session
–
Identifies actions
–
Follow-up items listed and assignments 35

25. Copyright ©2014 JPCGroup Problem Management:
Making it Work in Your Organization
Problem Management Techniques
Pain Value Analysis
•
This analysis is used when attempting to understand the impact of incident(s)/problem(s) on the business. E.g., an analysis is performed to understand the level of pain caused by the incidents/problems. It is possible to design a formula to measure the level of pain (thus assisting prioritization) using variables:

Number of users affected

Length of downtime

Timing of the downtime

Cost to the business (user time, lost sales, penalties, etc.)
•
The investigation may also turn up information helpful to the diagnosis , assessment and ultimate correction of the problem as well.
36

26. Copyright ©2014 JPCGroup Problem Management:
Making it Work in Your Organization
Problem Management Techniques
Chronological Analysis
Builds a timeline of what happened when (from event and/or incident data). The timeline can then be used to identify cause and effect events and validate assumptions not supported by the events. The expanded incident lifecycle can assist in developing the chronological analysis.
37

27. Copyright ©2014 JPCGroup Problem Management:
Making it Work in Your Organization
Problem Management Techniques
Ishikawa
A graphical technique that helps identify all possible causes of an effect, such as a problem. This technique was developed by Kaoru Ishikawa and is often called an Ishikawa diagram. Because the final output often looks like a fish, it is also sometimes called a “fishbone” diagram. It is also referred to as a Cause and Effect diagram.
38

28. Copyright ©2014 JPCGroup Problem Management:
Making it Work in Your Organization
Problem Management Techniques
Main Cause
Main Cause
Main Cause
Main Cause
Level 1 Causes
Level 1 Causes
Problem to be resolved (effect)
Level 2 Causes
Level 2 Causes
Level 2 Causes
Level 2 Causes
Level 2 Causes
Level 2 Causes
Level 1 Causes
Level 1 Causes

29. Copyright ©2014 JPCGroup Problem Management:
Making it Work in Your Organization
Problem Management Techniques
40

30. Copyright ©2014 JPCGroup Problem Management:
Making it Work in Your Organization
Problem Management Techniques
Pareto Analysis
A statistical approach to problem solving that is oriented to
focusing on the potential issues causing the greatest effect.
1. Build a table showing potential causes
2. Sort the rows by importance (descending)
3. Plot causes (X axis) and Cumulative % (Y axis) and draw line connecting
the points (curve)
4. Plot bar graph with causes on X axis
5. Draw line @ 80% of Y axis (parallel to X axis)
6. Where line & curve intersect drop line to X axis
7. Important causes to the left, trivial to the right
41

31. Copyright ©2014 JPCGroup Problem Management:
Making it Work in Your Organization
Problem Management Techniques
0%
20%
40%
60%
80%
100%
120%
0%
5%
10%
15%
20%
25%
30%
35%
40%
Cumulative %
% of Errors
42

32. Copyright ©2014 JPCGroup Problem Management:
Making it Work in Your Organization
Problem Management Techniques

Kepner-Tregoe (KT) Analysis (http://www.tregoe.org)

This is a rational modelthat is well respected in business management circles. An important aspect of Kepner Tregoe decision making is the assessment and prioritizing of risk.

KT is not to find a perfect solution but rather the best possible choice, based on actually achieving the outcome with minimal negative consequences.

There are four basic steps when decision making Kepner Tregoe style:

Situation appraisal -is used to clarify the situation, outline concerns and choose a direction

Problem analysis -here the problem is defined and it's root cause determined

Decision analysis -alternatives are identified and a risk analysis done for each

Potential problem analysis -the best of the alternatives is further scrutinized against potential problems and negative consequences and actions are proposed to minimize the risk.
43

33. Kepner-Tregoe Model
3. Decision Analysis:
To select best fix.
Effective Decision
Making
2. Problem Analysis:
To find root cause. Problem Management
4. Potential Problem Analysis:
To avoidfutureproblems.
Risk Analysis
1. Situation Appraisal:
To clarify and prioritizesituation. Plan Issue Resolution
Source: Kepner-Tregoe
44

34. Not a new
process, just
a better way
of doing
the existing
processes
better.
Source: Kepner-Tregoe
45

35. Copyright ©2014 JPCGroup Problem Management:
Making it Work in Your Organization
Source: Kepner-Tregoe
46

36. Source: Kepner-Tregoe
47

37. Copyright ©2014 JPCGroup Problem Management:
Making it Work in Your Organization
Problem Management -Benefits

Increased service quality

Reduction in the number of incidents and problems

Permanent solutions

Better Workarounds, improved workarounds

Learning from historical data

Higher first level resolution rate

Higher technical awareness within the IT organization

Better decisions, more informed decisions
48

38. Copyright ©2014 JPCGroup Problem Management:
Making it Work in Your Organization
Successful Problem Solving Approach
Quality x Adoption = Results
Problem Solving
Skill Transfer
(training needed)
Coaching
+
Alignment of:
Processes and Triggers
Expectations > Consequences > Feedback
Measurement
Documentation and Knowledge Creation (software)
Role modeling (leadership)
Resolution/
Restoration time
Cost per Incident/Problem
Customer Sat
Source: KT/ITpreneurs
49

39. Copyright ©2014 JPCGroup Problem Management:
Making it Work in Your Organization
Value of Problem Management

Improved productivity of customers due to improvement in service availability

Reduction in downtime for customers due to increased IT service availability

Decreased IT (support) costs due to elimination/reduction of on recurring incidents
50

40. QUESTIONS?
Thank you for attending this session.
Don’t forget to complete the evaluation! 51