IT Service Management Standards What are they and how to apply them Stan Rozdeba Managing Consultant © 2009 IBM Corporation Agenda What are Standards Introduction to ITIL and Complimentary Standards Implementing Standards Case Study Questions © Copyright IBM Corporation 2009 What is a Standard? Guideline documentation that reflects agreements on products, practices, or operations by nationally or internationally recognized industrial, professional, trade associations or governmental bodies or is accepted as a de facto standard by industry or society. Source: F. Coallier, Chairman, ISO/IEC JTC 1/SC7 © Copyright IBM Corporation 2009 Types of Standards Organization Standards – Such as internal company standards Market Standards (De Facto) – Such as Microsoft Windows Professional Standards – Developed by Professional organizations (such as IEEE) Industry Standards – Developed by industrial consortia (such as the OMG) National Standards – Developed by national standards organization International Standards – Developed by formal international standard organization (ISO) Source: F. Coallier, Chairman, ISO/IEC JTC 1/SC7 © Copyright IBM Corporation 2009 Agenda What are Standards Introduction to ITIL and Complimentary Standards Implementing Standards Case Study Questions © Copyright IBM Corporation 2009 The ITIL V3 service lifecycle ITIL Publications Structure Core – Introduction to the ITIL Service Lifecycle – Five books • Service Strategy (SS) • Service Design (SD) • Service Transition (ST) • Service Operation (SO) • Continual Service Improvement (CSI) Complementary Publications – Support for particular market sector or technology Web – Value added products, process maps, templates, studies Core Complimentary Industry Variation © Copyright IBM Corporation 2009 ITIL v3 is one of many different perspectives on IT There are many different frameworks that offer different perspectives on aspects of IT Each serves the needs of a different audience While the trend is towards convergence… … today organisations must integrate best practices from multiple sources into their management system © Copyright IBM Corporation 2009 Similarly, process interdependencies must be resolved Business Business Processes IT Business ITManagement Business Management Business-IT Alignment The four domains of IT management are the rows of the ITSM adoption model IT IT Governance Governance IT Service Business Driven Management IT Operations IT Operations Development IT Development IT Development © Copyright IBM Corporation 2009 Agenda What are Standards Introduction to ITIL and Complimentary Standards Implementing Standards Case Study Questions © Copyright IBM Corporation 2009 The “crux” of service management is how do you get from “knowing” best practices to “doing” them – effectively and efficiently? “we know” “we do” Strategy, Assess, Plan, Design, Develop, Deploy Consultants, Architects, Specialists, Project Managers, SME’s CRUX a vital, basic, decisive, or pivotal point: The crux of the trial was his whereabouts at the time of the murder. something that torments by its puzzling nature; a perplexing difficulty. —Synonyms 1. essence, heart, core, gist. © Copyright IBM Corporation 2009 Moving from best practices to effective implementation You need well-trained people armed with the right information, executing well-defined, technology-enabled processes to deliver high-quality services to the business functions they support People Roles, teams and functions Skill requirements Job descriptions Performance indicators Process Staffing levels Resource acquisition Training curriculum Staff training ITSM architecture Tool requirements Tool evaluation and selection Tool installation Technology and information requirements Policies and governance Process design Detailed workflows Workflow implementation Procedures Information Technology Development environments Customization and integration Testing Deployment Information requirements Data model Information flows Interfaces and integration Measurements Reports Governance © Copyright IBM Corporation 2009 Implement the standards and best practices that meet business goals Deciding which standards to use depends on what your organization is striving to achieve ISO 20000 CMMI CobiT MOF ITIL Practices (common, good, best) X Audit/Certification X Attestation not Cert X X X Assessment X X X IT Management System X X X IT Governance IT Service Mgmt System X X X © Copyright IBM Corporation 2009 Benefits of leveraging industry accepted standards and best practices Standards incorporate time tested best practices that contribute to the success of the organization Gets the entire organization to use the same play book Experienced hires can hit the ground running Practitioner support is available through formal and informal outlets Commercial professional services Non-profit organizations Businesses can realize the benefits of inherent efficiencies that standards contain © Copyright IBM Corporation 2009 The top inhibitors to achieving value from service management projects Do you expect the following factors to inhibit your ability to achieve the desired business value/ROI for your service management programs/projects? Barriers to achieving desired business value from service management projects Insufficient funding 82% Insufficient staff 80% Organizational or cultural issues 68% Insufficient skills or experience 67% Lack of internal experience 66% Lack of lessons learned or assets from similar projects 61% Issues with infrastructure, reliability, scalability and architecture 56% Concerns about technical integration and architecture 55% Insufficient software 55% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% Source: IBM Market Intelligence, Service Management In an Uncertain Economy, January 2009. © Copyright IBM Corporation 2009 Demonstrating alignment with business priorities is one of the most effective methods for gaining sponsorship … What are the most effective methods your IT organization/department employs in order to obtain executive sponsorship/buy-in for continued/expanded projects? Means to obtain executive sponsorship or buy-in Aligning projects with business priorities 71% Demonstrating ROI and business value 65% Demonstrating cost reduction 52% Communicating project importance to stakeholders/end users 43% Reprioritizing other IT projects 25% Establishing governance with business units and IT 19% Other 1% 0% 20% 40% 60% 80% 100% Percent selected (Note: Respondents could select up to three methods.) Source: IBM Market Intelligence, Service Management In an Uncertain Economy, January 2009. © Copyright IBM Corporation 2009 … and understanding what the critical business processes are in your organization Which business functions/processes are the most significant users of IT services to support, enable or automate their business activities? Business functions/processes that are the most significant users of IT services General accounting 67% Payroll processing 62% Accounts payable 60% Customer service 59% Accounts receivable 55% Billing 43% Payment processing 43% HR administration 41% Customer data analytics 35% Electronic document management 35% Sourcing and procurement 30% 0% 20% 40% 60% 80% Percent selected (Note: Respondents could select multiple functions/processes.) Source: IBM Market Intelligence, Service Management In an Uncertain Economy, January 2009. © Copyright IBM Corporation 2009 Critical success factors for service management projects that generated value As you continue or initiate service management projects in the current economic environment, which of the following will most help to contribute to project success and generation of value? • Stakeholder communications • Detailed project plan • Detailed business case • Collaboration and technical integration • Established project execution roles • Skill and staffing planning • Selection of appropriate software tools • High-level project justification • Facilitating cultural change • Conducting a pilot Source: IBM Market Intelligence, Service Management In an Uncertain Economy, January 2009. © Copyright IBM Corporation 2009 Changed business requirements and flat budgets drive the need for business-driven IT prioritization Peer-driven recommendations In an economic downturn, CIOs are prioritizing their investments to help optimize IT-enabled business services 1. Improve the quality and reliability of IT services that enable business workforce productivity 2. Prioritize smarter ways of doing things and technology consolidation 3. Revise measurements and reporting to stress business-driven outcome metrics, costs and business value 4. Change focus from technology and optimized subsystems to optimization of IT-enabled business activity 5. Apply some investments to tactical quick hits—but also make progress on longerterm service quality inhibitors Source: IBM Market Intelligence, Service Management In an Uncertain Economy, January 2009. © Copyright IBM Corporation 2009 Agenda What are Standards Introduction to ITIL and Complimentary Standards Implementing Standards Case Study Questions © Copyright IBM Corporation 2009 IT Operations Goal for 2008/2009 Achieve higher levels of operating performance Leverage industry experience without reinventing the wheel Execute using continuous improvement methods “Embrace IT industry best practices to build a sustainable, measurable operating framework.” © Copyright IBM Corporation 2009 Define the Business Drivers Achieving Outcomes Important to NMH 1. IT is of critical use in clinical and administrative operations • 2. Need to establish and manage to customer expectations • 3. Metric Focus = customer satisfaction & service level agreements Increasing demands for innovative technology require more effective resourcing • 4. Metric Focus = availability & reliability Metric Focus = productive hours & cost of unplanned work Elevated standards of internal and external audit for use and compliance • Metric Focus = process controls & maturity models © Copyright IBM Corporation 2009 NMH Best Practices Framework The Committee of Sponsoring Organizations of the Treadway Commission (COSO) An Integrated Framework For Enterprise Risk Management and Governance COSO provides a control framework for financials and recommends COBIT DMAIC Control Objectives for Information and Related Technology (COBIT) Provides Best Practice Control Measures For All 34 IT Processes PMI & ITIL provide best practice process to achieve COBIT control objectives Project Management Institute (PMI) Information Technology Infrastructure Library (ITIL) Industry Influencing NMH IS Policy & Procedure Best Practices in Project Management Best Practices in Service Management Currently Achieves Controls © Copyright IBM Corporation 2009 IS Best Practices Adoption Developing the Plan Met w/ process-leading organizations in multiple industries Built a cross-functional team of 60+ members – Focused on foundational processes based on the literature – Initiated 6 DMAIC projects Engaged proven third-party expertise (IBM) – Understand your baseline for future measurement – Identify areas for improvement – Developed a plan of 62 initiatives based on proven field work © Copyright IBM Corporation 2009 Roles and Responsibilities Executive Sponsors IT Service Management Office (ITSMO) & PMO Sanction the implementation plan; validate the measures and goals; monitor the execution of the plan; adjust the plan Set the overall strategy and direction; provide standards for process definitions, documentation, measurement and reporting; oversee the level of process and control compliance IS Directors & Managers Support the process owners in their role; adhere to the policies developed; serve as a point of escalation for process owners for compliance issues Process Owners Design the process including policies, procedures, roles, metrics and improvement plans; develop training and orientation materials; advocate the process; report compliance Staff/Practitioners Execute the process; provide feedback to management and process owners on the effectiveness of the process; suggest and participate in process improvement © Copyright IBM Corporation 2009 Process Ownership Framework Foundational & Strategic Processes “Process Improvement Group” Incident Mgmt Problem Mgmt Change Mgmt Service Level Mgmt Release Mgmt Configuration Mgmt Security Mgmt Disaster Recovery Enterprise Architecture Service Mgmt IS Directors VP/CIO PMO Technology ITSMO Admin Clinical Service Project Mgmt © Copyright IBM Corporation 2009 Focus on Key Problem Areas Examples of Substantial Process Improvement Change Management Incident Management Metric Q1 Q4 Metric Q1 Q4 # deferred changes >10 <3 outage resolu. time 9.0 3.0 % urgent change 11% 6% interruption resolu. time 29.3 8.0 % major change 7% 15% break/fix resolu. time 47.2 57.0 % minor change 82% 79% incidents incremented 4.3% 1.1% % closed changes 83% 99% incidents reopened 1.4% .31% incidents by change N/A 17 first-call resolution 62% 60% problems by change N/A 3 customer satisfaction 4.62 4.69 © Copyright IBM Corporation 2009 Critical Success Factors for NMH 9 Develop a set of business drivers with senior leadership and associate clear metrics 9 Renew senior leadership sponsorship 9 Create dedicated process roles and align incentives 9 Focus initially on achieving the greatest maturity possible in Change Management 9 Shift from a focus on process to focus on business outcomes when appropriate © Copyright IBM Corporation 2009 Why This Is Important… We must sustain highly reliable and available systems for patient care We want to work in an environment that is more predictable and more productive We desire the opportunity to improve and become the best of the best © Copyright IBM Corporation 2009 …To Eliminate Avoidable Adverse Events 50 2200 • 150 process improvement 45 2000 project since 2003, >60% are IT enabled enhancements 1600 35 1400 30 1200 25 1000 20 15 10 800 Severe Harm 600 400 5 200 0 0 # of Incidents Reported 1800 FY 0 F Y 4Q 1 04 FY Q 2 0 F Y 4Q 3 0 F Y 4Q 4 05 FY Q 1 0 F Y 5Q 2 0 F Y 5Q 3 0 F Y 5Q 4 05 FY Q 4 0 F Y 6Q 1 0 F Y 6Q 2 0 F Y 6Q 3 06 FY Q 4 0 F Y 7Q 1 0 F Y 7Q 2 0 F Y 7Q 3 0 F Y 7Q 4 08 FY Q 1 0 F Y 8Q 2 0 F Y 8Q 3 08 Q4 # of Severe Harm Events 40 Total Incidents Reported • 480 order sets & 223 decision support rules • Achieved a 78% reduction in avoidable severe adverse events since 2004 • More than 500,000 patient encounters impacted • Over $29M in financial benefit to date © Copyright IBM Corporation 2009 Agenda What are Standards Introduction to ITIL and Complimentary Standards Implementing Standards Case Study Questions © Copyright IBM Corporation 2009