Purpose: Use this job aid to help you prioritize problems faced by your team.
The Pareto principle is useful in understanding the causes and effects of different problems. You can use a Pareto analysis to help your team focus on the vital few tasks or problems that will have the greatest impact on your goal.
The Pareto Analysis
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Steps
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Description
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1. Identify and list problems
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- Identify problems by carrying out customer surveys or by speaking with clients to find out what they think of your company's products or services.
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2. Identify the root cause of each problem
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- Define the problem by describing what exactly is happening and by outlining any symptoms you notice that are as a result of the problem.
- Gather information about the problem such as the length of time the issue has been affecting your team. You could also look into possible consequences the problem will have on your team or its goals.
- Use a method such as the "Five whys" method to find out the root cause of the problem.
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3. Group problems by root cause
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- If two or more of your problems can be traced to the same root cause, group these problems together.
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4. Rank problem group
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- Rate each of your team's problems using clear-cut and numeric criteria such as cost, time, quantity, and frequency so that you can easily calculate the severity of the problems.
- Once you've added the ratings for the problems in each group, make the category with the highest ratings your top priority.
- Problems in lower-rated groups can be deferred until the more important problems are tackled.
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Course: Setting and Managing Priorities within the Organization: Deciphering Priorities
Topic: Using the Pareto Technique to Determine Priorities
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