© 2007 Jupitermedia Corporation Aligning via IT Service Management April 12, 2007 2:00pm EST,...

© 2007 Jupitermedia Corporation

Aligning via IT Service Management

April 12, 20072:00pm EST, 11:00am PST

George Spafford, Principal ConsultantPepperweed Consulting, LLC“Optimizing The Business Value of IT”www.pepperweed.com


Housekeeping

• Submitting questions to speaker– Submit question at any time by using the “Ask a question”

section located on lower left-hand side of your console.– Questions about presentation content will be answered during

10 minute Q&A session at end of webcast.

• Technical difficulties?– Click on “Help” button– Use “Ask a question” interface


Main Presentation


Agenda

• An overview of ITIL • ITIL and Quality• ITIL v3 Update• The Value of Service Level Management

– Services and the Service Catalog– Understanding how Goals, Objectives and Services Relate– The Need to Negotiate– Continuous Improvement

• For a copy of today’s webcast PPT, please email:– George at: [email protected]– Kendra at: [email protected]


The fundamental objective of ITSM is to deliver services that meet customer

requirements

And to do this we need timely accurate information


What ITIL Represents

• ITIL is the de facto standard approach towards IT Service Management

• Yes, it is a collection of best practices but it is far more than that• It is about IT delivering quality services that meet the needs of the

organization• IT services enable business processes that, in turn, enable the

business to meet goals• It is a fundamental shift from a focus on technology to a focus on

customer service and quality• The processes may take 1-2 years to implement but 2-3 years of

consistent and unrelenting work for the culture to truly change


Quality, Alignment and ITSM

• Quality means conformance to requirements – Phil Cosby

• This means– IT must understand the customer’s requirements

– IT must meet the customer’s requirements

• The constant quibbling of business-IT alignment is an indicator of quality problems

• A culture of ITSM can help begin to address alignment issues by understanding the needs of the business and working together

• This isn’t a project. It isn’t a fad. It isn’t a collection of books– It’s a change of perspective and of culture


The ITIL Books1. Introduction to ITIL

2. Service Support (Operations)

3. Service Delivery (Requirements and Monitoring)

4. Planning to Implement Service Management (Metrics and Process Maturity)

5. Security Management

6. The Business Perspective

7. ICT Infrastructure Management

8. Application Management

9. Small-Scale Implementation

10. Software Asset Management

• My stack of the first 9 books is five inches thick, weighs 15.6 pounds and cost over $1,000 USD


Service Support, Delivery & Security

Service LevelManagement

IncidentManagement

ProblemManagement

Service DeskFunction

CapacityManagement

AvailabilityManagement

IT FinancialManagement

IT ServiceContinuity

Management

IT SecurityManagement

ControlProcesses

ConfigurationManagement

ChangeManagement

ReleaseManagement


ITIL v3

• Version three (ITIL v3) set for release on May 30th

• Roadshow to begin June 5th in London• You do not need to wait – the core principles are the same• Five books arranged as a lifecycle

– Service Strategy• Value nets, adaptive strategies, managing uncertainty, strategy selection

– Service Design• Policies, architecture, models, outsourcing

– Service Transition• Service and Organizational Change, Release, Config, Risk Mgt

– Service Operation• Incident and Problem Management, alerting, new functions

– Continuous Service Improvement• Business cases, Portfolio Alignment, Metric selection

• This is truly exciting!


The Value of Service Level Management

“The goal for SLM is to maintain and improve IT Service quality, through a constant cycle of agreeing, monitoring and reporting upon IT Service achievements and instigation of actions to eradicate poor service – in line with business or cost justification. Through these methods, a better

relationship between IT and its Customers can be developed.”-- ITIL Service Delivery Volume


Services vs. Applications

• It’s not just applications that are delivered to the business

• Need hardware, software, people, documentation, contracts, facilities, etc.

• These combine and relate to one another in the form of services

• Everything in ITIL is a Configuration Item (CI)– Hardware, software, people, facilities, services, data records,

documentation, contracts, etc.


But what should IT offer and why?


A System Has a Goal

Goal

A system is a collection of functional units assembled to attain a goal. If there isn’t a goal, then there isn’t a system!


The need is to align functional area objectives with the goals of the organization and IT

services with the needs of the functional areas


OrganizationalGoals

Logistics / SCM Manufacturing

Accounting Customer ServiceMarketing

Unoptimized Vectors


Perfect Alignment

The Organization

The Goal

Functional Area 1

Functional Area 4

Functional Area 3

Functional Area 2

Functional Area n

Optimal Productivity


OrganizationalGoals

Logistics / SCM Manufacturing

Accounting Customer ServiceMarketing

Research

Business Functional Area Objectives Must Align for Optimal Productivity


Groups in IT Must Align As Well

IT Objectives

ChangeMgt

ConfigurationMgt

Service DeskFunction

IncidentMgt

ProblemMgt

Service LevelMgt

CapacityMgt

AvailabilityMgt

IT FinancialMgt

IT ServiceContinuity Mgt

IT SecurityMgt

ServiceDevelopment

One big challenge for some organizations is the sub-optimization that results when “shadow IT” groups are allowed to flourish outside of the

formal IT structure.


Goal-to-Objective Mapping• Use the Ishikawa Cause and Effect Diagram• Start with the Goal(s) and work towards Functional Area Objectives

(FAOs)• How does each area support the goal with their objectives?• How do teams support the objectives?• What services does IT provision to enable the functional areas and

teams?• Look for mismatches in Causality? Ask “Why” repeatedly if need be• Visio has a template under “Business Process”• It is the thought process that matters the most – not the

graphic!!!!!!!!!!!!!• Only go as deep as you need to establish causal relationships


Illustrative Goal to Objective Map

Maximize Profit

Accounting

Objective 2

Objective 1

Objective 3

Team / Function 1PeopleSoft

Excel

Team / Function 2

· Objective 1· Objective 2· Objective 3

· Enable Objective 3 by doing what? What are their objectives?

· Enable Objective 3 by doing what? What are their objectives?


The intent of Goal-to-Objective mapping is to understand and document

relationships plus identify and ultimately resolve discrepancies.

This map is ideal for identifying IT services, existing or needed, as well.


Service Catalog

• The Service Catalog tracks the services provided to the business

• Initially just a list of what all is done (often not everything is known before the effort)

• Akin to a laundry list or menu of what is offered, associated costs, service levels, etc.

• Answers the Business Questions of: “What do you do for us?” and/or “What do you offer?”

• Answers IT’s Questions of: “What do we offer?” or “Do we offer this specific service they are asking about?”

• What outsourcers have that internal IT frequently lacks


Service Level Agreements

• Business Needs Drive– IT Service Requirements, which Drive

• Component Configuration Item (CI) Requirements

• Business Needs– Are Identified In Service Level Requirements (SLRs)

• SLRs must then be reviewed and discussed within IT and Vendors – “What can we really do and what are the costs?”

– The Service Level Manager (role) must negotiate the Service Level Agreements (SLAs) with the business

• The SLM must not simply roll over and agree to everything always• Requirements and the cost to meet them must make business sense!!

– None of us would spend $1,000 to make $10 with some degree of uncertainty

• The SLM must be a skilled negotiator


SLA Components• Want as few SLAs as possible• Services in the Service Catalog should be covered (eventually)

– Per the first bullet, you do not need one SLA for each service but ideally multiple services covered by a relatively few number of SLAs

• Simplicity is very important• Wording should be understandable for everyone• Can have SLAs and separate Service Specification Sheets that get into the details• Covers things like:

– Business Impact– End user locations– Availability– Performance– Capacity– Incident Management– Security– Data retention– Regulatory compliance requirements– Agreed upon monitoring methods– Review schedule– Associated costs (chargeback model if appropriate)


SLM Activities

• Negotiate SLAs for new or changed services• Review performance

– Service breaches – Near breaches

• Negotiate, Set, or Renew – Operating Level Agreements (OLAs) [internal groups]– Underpinning contracts (UCs) [vendors / third parties]

• Launch Service Improvement Programs (SIPs) as needed• Conduct Business Review meetings (Quarterly for example)

– How did we do?– What could we do better?– By the way, here are some things we are doing … (marketing!)

• How can we improve the four E’s?– Efficiency, Effectiveness, Economy or Equality


Continuous Improvement Is Key

• Like any process, you must pick a place to start and actually begin

– 70% solutions

• Understand what you need and pursue that

• Refine services as processes mature

• It’s a journey– Your organizations will evolve– Your service offerings must evolve

to support the needs of the business

Where do we want to be?

Where are we now?

How do we get to where we want to be?

How do we monitorProgress?

Vision and Objectives

Audits / Assessments

Process Improvement(Leverage Best Practices)

Metrics and Critical Success Factors

* Adapted from ITIL Service Support Graphic


Thank you for the privilege of facilitating this webcast

George SpaffordPrincipal Consultant

Pepperweed ConsultingOptimizing the Value of IT

[email protected] http://www.pepperweed.com

Daily News Archive and Subscription Instructionshttp://www.spaffordconsulting.com/dailynews.html


Questions?


Thank you for attending

If you have any further questions, e-mail [email protected]

For future ITSM Watch Webcasts, visit www.jupiterwebcasts.com/itsm

© 2007 Jupitermedia Corporation Aligning via IT Service Management April 12, 2007 2:00pm EST,...

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