An Overview of
IT Governance
… and CIO’s must balance among
many competing priorities.
Maximize return:
Increase agility:
• Improve business results;
• Enable the business organization
grow revenue and earnings,
cash flow, reduced
cost-of-operation
Mitigate risk:
• Ensure security and continuity
of internal business operations,
while minimizing exposure to
external risk factor
and operations to adapt to
changing business needs
Improve performance:
• Improve business
operations performance
end-to-end
across the enterprise
• Increase customer and
employee satisfaction
Needs, Issues & Challenges
Planning
Alignment
Capital, Capacity, Priorities
Lack of Business aligned strategy
Flexibility
Deployment Complexity in number
of project
Making new outsourcing
decisions
No means of capturing demands
Management of Service Changes
Cannot aggregate need and
distribute ROI
Deployment Complexity through
lack of standard & legacy
No means of prioritization of
business need
Demand
Lack of IT resource transparency
Supply
IT and
Business
Resources
Strategic
Tactical
Operations
No means of reporting SLA
Must reduce IT costs by 30%
Ineffective project Management
Reduce costs across business
No Audit Trails
Missed targets due to lack of steering control
No means of governing outsourced contracts
Quality
Control
Procedure, Audits, Metrics
Efficiency
What is IT Governance?
(Ref.)HP working definition
Decision rights
framework &
mechanisms
Vision,
goals/priorities, measures; value
prop & service portfolio;
resource approaches &
commitments;
change management
plans
IT governance is the formal process of defining the
strategy of the IT organization and overseeing its
execution to achieve the goals of the enterprise.
Aligned/synchronized with the
enterprise strategy, including other
key asset strategies
Translation into
aligned, tactical, operational
plans; closed-loop monitoring & control;
accountability;
regulatory compliance
Who are the Decision
Makers?
Non-Cooperative
Centralized
Federal
De-centralised
Cooperative
Business Decision
IT Decision
Business and IT
Collaboration
Business Exec.
IT Exec.
Business and IT Exec.
Business Exec./Mgt.
IT Exec./Mgt.
Business and IT
Exec./Mgt.
Business Mgt.
IT Management
Business and IT Mgt.
Anarchy
Core Competencies for Effective IT Governance
•
•
Align operational and
strategic IT investments to
business strategies &
objectives.
Balance the demand for IT services
with available resources to meet
immediate and strategic goals.
•
Supply /
Demand
Management
IT Strategy
Management
•
Establish
policies,
standards,
models and
processes for
managing IT
as an
enterprise
asset
Establish effective, collaborative
relationships with business
stakeholders and suppliers.
Relationship
Management
•
IT Operating
Model
Enterprise
Architecture
Managemen
t
Financial
Managemen
t
Portfolio
Management
•
Understand the
drivers of IT
costs to allocate
appropriate
costs to the
consumers of IT
services.
Lifecycle management of
infrastructure, applications
and services
The HP IT Governance Capability Model
IT Governance Capability Model
IT Governance Capability Domains
Role of IT
None
Utility
Dependent
Agile
IT Governance
Governance
Capability Levels
Capability
Levels
Level
1: Initial
1:
Initial
Level
2: Repeatable
2:
Repeatable
Level
3: Defined
3:
Defined
Level
4: Managed
4:
Managed
Level
5: Optimized
5:
Optimized
Strategy
ITITStrategy
Management
Management
AdAdHoc
HocororITIT
Centric
Centric
Deliver
Deliver
toto
Budget
Budget
Supply
Supply
Constrained
Constrained
Enterprise
Enterprise
Demand
DemandDriven
Driven
Balanced
Balanced& &
Aligned
Aligned
Adaptive
Adaptive
Enterprise
Enterprise
Portfolio
Portfolio
Management
Management
AdAd
Hoc
Hoc
Review
Review
ofof
Portfolio
Portfolio
Synergies
Synergies
ITITCost
Cost
Minimization
Minimization
Emerging
Emerging
ROI
ROI
Based
BasedFunding
Funding
Business
Business
Unit
Unit
Aligned
Aligned
Enterprise
EnterpriseITIT
Portfolio
Portfolio
Management
Management
Enterprise
Enterprise
Architecture
Architecture
Management
Management
Initial
Enterprise
Enterprise
Ad
Adhoc
hoc//Ineffective
Ineffective Initial
Program-based
Ad hoc Technical Architecture
Architecture
Enterprise
Enterprise
Architecture
Architecture
Management
Program
Program
Architecture
Financial
Financial
Management
Management
Supply / Demand
Management
Management
Expense
Expense
Driven,
Driven,
Budget
BudgetFocused
Focused
ITITCost
Cost
Minimization
Minimization
ITITCost
CostTransfer
Transfer
Technology
Technology
Based
Based
Supply
Supply
Constrained
Constrained
Value
ValueBased
Based
Business
Relationship
Relationship
Management
Management
Technology
Technology
Centric
Centric
ITITOperating
Operating
Model
Model
Silo
Silo
11 January 2017
ArchitectureArchitectureArchitecture
Compliant
Compliant
Driven Design
Design
Technology-Based
Technology-based Service
ServiceCentric
Centric
Services
Services
ITIT
Process-Based
Process-Based
Business
Business Strategy
Strategy Integrated Enterprise
Business Strategy Architecture
Agile Enterprise
&
Aligned
Linked
Architecture
Business
Business
Planning
Planning
Architecture
Enterprise
Enterprise
Cost
Cost
Management
Management
Optimized
Optimized
Business
BusinessValue
Value
Impact
Impact
Demand
DemandDriven
Driven
Balanced
Balanced
&&
Aligned
AlignedMulti
MultiSourcing
Sourcing
Business
BusinessCentric
Centric Customer
Customer
Centric
Centric
Business
Business
Process
Process Internal
Internal
Service
Service
Based
Based
Provider
Provider
Shared
SharedServices
Services
7
IT Governance Models
- the 5 Characteristics
Corporate Governance
IT Governance Framework
Processes
Technology
People
Value
11 January 2017
Val IT
Cobit
ITIL
ISO
PPM Methods
…
BTO portfolio
Business Change
Org. Alignment & Competencies
Benefits Assurance
There are many models.
But they share 5
characteristics:
• Underpinned by processes
that must be implemented
(e.g. Incident management)
• Supported by technology
• Define business change
issues to be addressed
• Define organisational
realignment to be achieved
• Include some way of
measuring the value to be
achieved (e.g. balanced
scorecard)
9
How to Implement Governance
Execute
IT Governance
Assessment
•Execute assessment to identify gaps
•Define new role of IT in organization
•Define evolution roadmap to address the gaps
Setup
IT Governance
Framework
•Define roles and responsibilities
•Setup communication path to support IT-business alignment
•Define management structures for decision making, reporting and
escalation
Design
IT Governance
Processes
•Define policies
•Define processes
•Define KPIs and reporting requirements
Implement
Supporting Tools
•Implement tool to support the execution of the solution
•Implement tools for data collection and management reporting
Continuous
Improvement Plan
(Control
11 January 2017Lifecycle)
•Identify indicators to monitor strategy execution
•Define steering committee to manage relationships within IT and between
business & IT
•Review IT strategy periodically and evolve governance environment
10
Critical success factors for ITG
• Clarity of Purpose
• Senior Management Commitment
• Management of Business Change
• Focus, execute and enforce
• Measure achievable targets and expectations
• Don’t over-engineer IT Governance
• Evolution not revolution
Practical Advice to
Successfully Implementing
ITIL Best Practices
Ed Holub
Research Vice President,
IT Operations Management
Hype Surrounding ITIL

ITIL makes the
business love the IT
group!

ITIL is easy!

Buy our tool and have
ITIL!

IT Operations Management Hype Cycle
visibility
ITIL 2005
ITIL 2012
ITIL 2006
ITIL 2010
Everybody is doing it
…
ITIL 2008
Technology
Trigger
Peak of
Inflated
Expectations
Trough of
Disillusionment
time
Slope of Enlightenment
Plateau of
Productivity
Key Issues
1. What is ITIL and how can it serve as a guide to
transforming operations?
2. What pitfalls should be avoided when
implementing ITIL?
3. What are the critical success factors and practical
methods to maximize return on investment?
Key Issues
1. What is ITIL and how can it serve as a guide to
transforming operations?
2. What pitfalls should be avoided when
implementing ITIL?
3. What are the critical success factors and practical
methods to maximize return on investment?
Positioning the Frameworks
CMM = capability maturity model
Specific
CobiT = Control Objectives for
Information and Related
Technology
TCO
ITIL
CMMI
ITIL = IT Infrastructure Library
ISO 20000
TCO = total cost of ownership
IS0 20000 = IT service mgt standard
CobiT
IT
Relevance
ISO 9000 = quality mgt standard
People CMM
Point solutions are
useful, but a broader,
holistic approach to
process and quality
improvement is
POWERFUL.
Six Sigma
ISO 9000
National Awards
(e.g., Baldrige)
Scorecards
Holistic
Low
Level of Abstraction
High
Process Framework — ITIL

ITIL is a best-practice process framework.
– Service delivery
– Service support
– Others (application management, security
management)

Shows the goals, general activities, inputs and
outputs of the various processes.
ITIL: The Good and the Bad


Service Delivery:
– Service-level management
 Standard process language
– Financial management
 Emphasis on process vs. technology
– Capacity management
 Process integration
– IT service continuity
 Standardization enables cost and
quality improvements
– Availability management
 Focus on customer
Service Support:
– Incident management
– Problem management
– Change management
– Configuration management
– Release management

Core Benefits:
Service Desk
Limitations:
– Not a process improvement
methodology
– Specifies "what" but not "how"
– Doesn't cover all processes
– Doesn't cover organization issues
– Hype driving unrealistic expectations
Key Issues
1. What is ITIL and how can it serve as a guide to
transforming operations?
2. What pitfalls should be avoided when
implementing ITIL?
3. What are the critical success factors and practical
methods to maximize return on investment?
More Process Refinement Initiatives Fail Due to
Ineffective Governance than Due to Bad Designs
Steering Committee
Responsibilities

Service management vision

Project management
and process prioritization

Funding and infrastructure
investment

Technical architecture

Standards, tools and
vendor criteria

Measurement criteria

Reporting to management
Stakeholders

IT operations and
production engineering

Architecture and standards

IT controller

IT service desk

Security and compliance

Business applications
Trying to Run Before Walking
Level 4
Level 3
Value
IT as strategic
Service
business partner
Level 2
 IT as a service
 IT and business
provider
Proactive
metric linkage
 Analyze trends
Level 1
 Define services,
 IT/business
classes,
pricing
 Set thresholds
collaboration
Reactive
improves business
Level 0
 Fight fires
 Predict problems  Understand costs
process
 Guarantee SLAs
 Inventory
 Measure appliChaotic
cation availability  Measure & report  Real-time
 Desktop SW
 Ad hoc
infrastructure
service availability
distribution
 Automate
 Undocumented
 Integrate processes  Business planning
 Initiate
 Mature problem,
 Unpredictable
problem mgt
 Capacity
configuration,
Manage IT as a Business
process
mgt
change,
asset
 Multiple help
and performance
 Alert and
desks
Service and Account Management
event mgt
mgt processes
 Minimal IT
 Measure component
operations
Service Delivery Process Engineering
availability (up/down)
 User call
Operational Process Engineering
notification
Tool Leverage

Assuming Tools Will Solve Your Problems
"Man is a tool-using animal. Nowhere do you find him without tools;
without tools he is nothing, with tools he is all." – Thomas Carlyle

Be wary of vendor hype

Focus on process first

Tools can be enablers or inhibitors

Assess capabilities of your
current tools

Review new tools where they would pay
significant dividends

Buy what you need, as you need it
Confusing the 'Means' With the 'End'
This Is Not the Goal!
"Certification"
ITIL
Six Sigma
CMM-I
Malcolm
Baldrige
Etc.
Beware of Process for Its
Own Sake!
Certification Does Not
Guarantee Good Outcomes!
Process Improvement Is About Better
Outcomes and Experiences for Customers
Key Issues
1. What is ITIL and how can it serve as a guide to
transforming operations?
2. What pitfalls should be avoided when
implementing ITIL?
3. What are the critical success factors and practical
methods to maximize return on investment?
Keep Focus Narrow and Deliver Benefits
Determine Where to Start

Not necessarily on the least mature processes

80 percent of clients start on core service support processes like change,
incident and problem management

Configuration management is a steeper challenge

Service-level management is often first of service delivery processes
Deliver Benefits Quickly to Address "Pain Points"

Examples: Reduce percentage of changes causing incidents, improve MTTR

Builds momentum
Take an Iterative Approach

Design 80 percent solutions and plan to improve later

Channel benefits to "self-fund" the next phase

Periodically reassess priorities
Build Top-Down and Grass-Roots Support

Treat as an
Organizational
Change Initiative



Emphasize
"WIIFM"
Communicate
Frequently and
Consistently




CIO or Head of Infrastructure and Operations must be
visible champion
ITIL is much more about people than technology
Change culture to embrace standardization vs. unique
solutions
Don't ignore the aspects of people change and simply
concentrate on process and tools
Tailor messages for stakeholder groups
Reward process victories vs. traditional hero behavior
Clearly articulate underlying goals and objectives
Report on progress – macro and micro
Take a Structured and Holistic Approach
to Process Refinement
Structure Program
Measurement and Governance
What is the Governance Structure?
What pain points are addressed?
How will you know when you achieve the desired maturity?
How will you market and communicate the program value and progress?
Adopt Process
Taxonomy
Implement and Manage
Implement the target state!
Operate and manage new processes!
Common and consistent language!
Better alignment of expectations!
Adopt Process Reference
Architecture
Build Technical Integration
Framework
Define a conceptual, integrated target state!
Clean-sheet design concept!
Develop Process Baseline(s)
How do the current processes perform?
Identify key gaps against best practice!
What standards and protocols should be used?
How should new automation be assimilated?
Develop Transition Approach
and Plan
How should the target state be implemented?
Knowledge transfer and training!
Build Process Logical Architectures
Define the target state detail for each process!
Task-Level
Process Detail
Information
Requirements
Automation
Detail
= Reference Material
= Detail Design
= Implementation
Leverage Process Integration

1
Availability
Management
Smell the smoke
2
Incident
Management
Firefighting









3

Problem
Management

Fireproofing



Comprehensive monitoring
Iteratively tune thresholds
Filter out noise
Train operations center staff
Automate on call staff notification
Discover
anomalies as soon
as possible,
preferably before
customer impact
Perform parallel investigation
Designate senior technical leaders
Utilize problem isolation tools
Prioritize effort based on criticality
Resolve incidents
as quickly as
possible
Dedicate staff to problem management
Conduct quick review on all problems
Perform in-depth postmortem on
significant problems
Identify root cause risk areas
Identify action items and track
to completion
Maintain an Availability Hit List
Take action to
prevent future
problems
Use Metrics to Drive Behavior and
Measure Progress

People inherently want to do a good job

What gets measured gets attention

What doesn't get measured drops off the radar

People will take action to move a metric in a
positive direction
– People will do "dumb" things
– People will stop doing "smart" things

Focus on analysis and action vs. reporting
– Select a few key metrics instead of many
– Measure what will help you improve, not what's easy
to measure
– Create "tiers" of metrics tailored to different audiences
Effectively Staff Crucial Roles

Designate individuals as process
owners

Assign (virtual) teams of subject matter
experts

Utilize program or project managers
– Credibility
 Desirable
characteristics
– Communication
skills
– Process and customer focus
members
– Ability to deal with ambiguity
– Commitment to the cause
for team
People will make or break your ITIL initiative
Comprehensive Approach to Improvement
4. Apply
Governance
CobiT
3. Identify
Appropriate
Measures
2. Align
Roles With
Work
Six σ
RACI
IT Operational Processes — ITIL
1. Establish
the Work
App. Development Processes — CMM, CMMI, ASL
Project Management Processes — PMI
Recommendations
 Keep the scope narrow enough to deliver tangible
benefits before losing momentum.
 Demonstrate senior management commitment
repeatedly
to inspire grass-roots support.
 Remember that ITIL is an organizational change
initiative.
 Look for "best of fit" process modifications.
 Tools are not a substitute for good process.
 Set attainable process improvement measurement
Implementing ITSM at DTS
• Our approach
• Current efforts
Approach
• Why we are embracing ITSM
– Serve our customers more efficiently and
effectively
– Position DTS to take on new services
– Prepare DTS to manage services across two
data centers
Approach
• Leverage experience/expertise of others
• Change to an IT service culture
• Internalize incremental changes
Approach
• Build an ITSM foundation core
– Tendency to look at a single ITIL process
– Keep in mind the linkages between processes
Approach
• Take actions to address specific
organizational issues
– Completed ITIL Foundations training
– Began the “change the language” campaign
– Established the Service Desk function
– Developed first version of a service level
agreement
– Conducted assessments
Current Efforts
• Defining Service Request Management
process to replace our current SR system
• Procuring consulting services
– To support refinement of implementation
roadmap
– To raise the maturity of other processes
How is DTS Implementing ITSM?
• With multiple projects following project
management practices
• With Executive sponsorship
• With stakeholder involvement
• With some communication and a lot more
to come
• With feedback and course adjustments