How to Get (and Keep) Your ITSM Initiative on Track

How to Get (and Keep) Your ITSM Initiative on Track
Hank Marquis
Director, ITSM Consulting
Sr. Analyst, ITSM Automation
Enterprise Management Associates
Source: CA
Service Portfolio Management is Business Service
Management
BSM is managing the service portfolio for
distinctive performance in the IT
commoditization perfect storm.
Plummeting cost of acquisition
Unclear and incorrect customer specifications
What needs to happen 1st, 2nd, 3rd and so on?
Opportunity
Opportunity for
for
Service
Service Strategy
Strategy
Moore’s
Moore’s
Law
Law
Tolerance
Tolerance for
for
Variability
Decreasing
Variability Decreasing
IT
IT Budget
Budget
and
Staffing
and Staffing flat
flat
Complexity
Complexity
and
and IT
IT Workload
Workload
Increasing
Increasing
Slide 3
1990
1995
2000
2005
2010
Service Strategy (and ITIL v3) in a Nutshell
Service Strategy shakes up the boat with some pretty provocative
statements – which by the way, are all true, critically important and need to
be both said and heard.
• A Focus on Process Does Not Yield Success
Often leads to unexpected (negative) consequences
• Process is Only the Means to a Strategic End
Think first. Then do.
• BSM Requires A Competitive Mindset
Low cost or high quality isn’t enough. Differentiated value is key to being “nonoptional.”
It’s All About Value, but Value Isn't Enough
Thinking outside of the IT box is what Service Strategy is all about
(literally!)
• Value is More Than Cost Controls
Value is allocating efforts and resources in ways that matter most to the business
• Differentiating IT Providers From Competitors
Using customer proximity to be better than alternatives
• Value is Only Visible In Enterprise Terms
It’s more than “utility” and “warranty”
True Value Only Visible at Enterprise Boundaries
(Type I & II I.T. Providers)
Customers and
Users
End-Customers
and Users
Products
Product
Offerings
Enterprise
Internal and
External IT
Systems
Slide 6
Suppliers and
Competitors
© 2008 Enterprise Management Associates, Inc.
‘Type III’ I.T. Provider Boundaries
Customers and
Users
End-Customers
and Users
Products
Product
Offerings
Provider
Enterprise
Internal and
External IT
Systems
Slide 7
Suppliers and
Competitors
© 2008 Enterprise Management Associates, Inc.
Value Is Hard to Grasp
Customers are not always right, and don’t always know what they want or
need; our value is helping them understand what they need, not giving
them what they want.
• Value Is Not:
Doing what you said or promised to do (warranty)
Always being “up” and performing (utility)
• Value Is In The Eye Of The Enterprise
IT Customers & Users Exist to Service End-customers & End-users
IT Must Enhance End-customers and End-Users Enterprise Experience
Once Again, ITIL Isn't Enough
ITIL always mentioned other frameworks, now, Service Strategy explicitly
states that to succeed you must “integrate guidance” from other
frameworks.
• Service Strategy Calls Out:
CMMI-SVC, COBIT, PMBOK, M_o_R, eSCM-SP, eTOM, Six Sigma
ISO20000 and more
• Fear Not!
Pragmatic and situational selection
Service Strategy Means Using These Frameworks in the Right Way
How to Make IT a Strategic Asset
Service Strategy is how to achieve BSM by thinking about and then
managing IT as a portfolio of investments purchased to produce a
business return.
• BSM & BITA top 2008 Goals
Leads quality improvement, managing complexity and cost reduction in surveys
• Service Portfolio Management is BSM:
Manage Complexity, Show Value, Control Costs and Balance Resources
• But, Surveys Show A Disturbing Reality
We All Want it, But We’re Heading for a Fall
EMA Research Report, “What are your IT organization’s top
three goals in 2008?”
BSM improves quality, controls costs, balances resources and manages
IT complexity – everybody wants BSM! (But few know BSM is what they
want!)
Slide 11
© 2007 Enterprise Management Associates, Inc.
Service Portfolio Management Makes Service
Strategy Actionable
“…Service Portfolio, one of the most vital yet often missing constructs for
driving service strategies and managing service investments.”
– ITIL v3, Service Strategy, 5.3, Service Portfolio Management
• How to Make Service Strategy Actionable:
Define services and validate business case (Service Catalog Management)
Analyze service value and prioritize to balance demand (Financial and Demand
Management)
Authorize and allocate resources (Configuration, Change, SLAs, OLAs etc.)
Measure quality (CSI, Service Level Management, Supplier Management)
What percentage of your IT services are covered by
documented and measured Service Level Agreements (SLAs)?
Services ought not to exist unless covered by an SLA. Otherwise, there is no
evidence that they are required for the business. This is the measure of the span of
control of the SLA process. If a large number of services do not have SLA's agreed,
then Service Level Management does not have control over the level of delivery.
Slide 13
© 2007 Enterprise Management Associates, Inc.
What percentage of your IT services are covered by documented workflow
and procedures to ensure consistency of delivery (also known as Operating
Level Agreements, or OLAs)?
OLA’s and Underpinning Contracts grow as SLM is extended to suppliers. No OLAs, no
control over service delivery. The results mirror the SLA numbers from the previous
slide.
Slide 14
© 2007 Enterprise Management Associates, Inc.
Selective Improvement = Differentiated Value
We need Service Strategy to organize ITIL processes and operational
activities. Without focused strategy you get non-value added effort, and
fail more often than not (unexpected negative consequences.)
Which Process? Why?
In What Manner? How?
In What Order? When?
When do We Stop?
Warranty
Low impact on
business
outcomes with
high certainty
e
n
Zo
B
f
o
e
c
n
a
l
a
High impact on
business
outcomes with
low certainty
Lo
2nd, 3rd and so on?
Hi
• What do we do 1st,
Lo
Utility
Hi
Simplified Guide to BSM
To realize the benefits of Service Strategy we need to integrate new tools
and thinking into our daily activities.
• Don’t Start with Process! Start with Analysis:
1.
Define Services – eTOM & SID are best here
2.
Value Services – M_o_R, CRAMM are best for this
3.
Measure Services – SERVQUAL (external) and CMMI (internal), Six Sigma
4.
Choose Service improvement projects (PMBOK, PRINCE2, Project+)
• Once You Have a Project Identified
5.
Use ITIL, Buy Software, (Re)Allocate Resources etc.
BSM Step #1 - Define Services
Customers
and Users
Customer
Facing
Service
Enterprise Boundary
End-Customers
and End-Users
Enterprise Products
ITIL Service Catalog, eTOM/SID
Customer Assets
Slide 17
Resource
Resource
Facing
Facing
Services
Services
IT Resources
© 2008 Enterprise Management Associates, Inc.
BSM Step #2 - Value Services
ITIL Financial/Demand, M_o_R, CRAMM
Value services based on risk to the business. Risk is the most accurate
measure of value – and something the business understands. Work with
customers to give each service a risk score – its value.
• Primary Concern is Risk to Performance of
Customer Assets:
Replacement Costs
Outage Costs, Business Impact & Revenue
Environmental and Image
Competitive and Industry
Customer Churn x Cost of Customer Acquisition
Fees, Fines, Taxes, Human Resources, Liability Costs
Etc.
BSM Step #3 - Measure Services
ITIL CSI, SERVQUAL, CMMI, Six Sigma
SERVQUAL is
service industry
best-practice for
measuring
service quality.
Gaps indicate (IT)
process failures.
After identifying
gaps, use CMMISVC to trace what
isn’t getting done.
Use Six Sigma to
isolate variation –
these are your
ITIL improvement
opportunities.
BSM Step #4 – Commission Improvement Projects
Project+, PMBOK, PRINCE2
Knowing when to stop is as important as knowing what to do. Every
successful IT endeavor is a successful project – because projects have a
defined charter, beginning and end.
• Beware Scope Creep
Golden Pony Story
• Follow Best Practices
Focus on Scope, Charter, Stakeholders, Team and Metrics
• Repeat Until Good Enough & Time to Stop
Remember, “Good Enough is Perfect”
Change Your Perspective!
BSM, ITIL/ITSM Are About Business & Performance of Customer Assets
Service Strategy has many
tools, techniques, models,
examples and samples. Study
them, pick and choose what
works for your unique situation.
• Service Strategy is an
Intellectual Exercise
• Make Strategy Real
with Service Portfolio
Management
• Service Catalog makes
SPM actionable
Thank You for Attending Today’s Presentation.
For more information on EMA, please contact:
Bruce Lehman at 303.543.9500 x112 or
[email protected]
April 29, 2008
© 2008 Enterprise Management Associates, Inc.