Problem Cost Model

Discussion on issues related directly or largely to ITIL problem management.
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cproctor
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Marcel
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Sat May 23, 2009 9:51 am

Manager of Problem Management
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Diarmid
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"Method goes far to prevent trouble in business: for it makes the task easy, hinders confusion, saves abundance of time, and instructs those that have business depending, both what to do and what to hope."
William Penn 1644-1718
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Bluesman
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IceCreamMan
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Bec74
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Fri Sep 11, 2009 1:12 am

Perhaps the key is having a good view of the cost of incidents first. Whether you measure less than optimal productivity (staff working on unplanned work), your resolver teams cost, customer contact when zero touch channels fail etc does not matter overly...as long as you have good assumptions and buy in..& apply the same logic consistently.

Then the figures associated with Problem cost (whether you choose time or another metric set) should able to be netted against incidents (i.e by reducing the likelihood or impact then you should be delivering a cost avoidance benefit..).

as problem records are often fairly open ended when you are still in investigation (til you find the root cause hard to tell how long the whole thing may take.. and not SLM bound) be sure to check your NPV along the way- don't throw good money after bad.

This approach should help you determine whether you are possibly over-investing in PM; i.e where the ongoing cost of the workaround or likelihood of re- occurrence so low that PM is not justified.

In the credit crunch the only vacancies my org of 5000 has approved in four months for new hire have been in SM- largely because we have credible metrics about the $ value we deliver.. and we are only at month seven of implementation of IM & PM.

Approved now for change, release and CMDB to progress based on our initial demonstrated cost avoidance return from IM & PM activity.
If you cannot find a root cause, make one up. Either you will be right or everyone will scramble to disprove you.. either way you will be further ahead
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