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    Microsoft Operations Framework

    Version 4.0

    Plan Phase Overview

    Published: April 2008For the latest information, please seemicrosoft.com/technet/solutionaccelerators

    http://www.microsoft.com/technet/solutionacceleratorshttp://www.microsoft.com/technet/solutionaccelerators
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    Copyright 2008 Microsoft Corporation. This documentation is licensed to you under the Creative CommonsAttribution License. To view a copy of this license, visit http://creativecommons.org/licenses/by/3.0/us/ or senda letter to Creative Commons, 543 Howard Street, 5th Floor, San Francisco, California, 94105, USA. Whenusing this documentation, provide the following attribution: The Microsoft Operations Framework 4.0 is providedwith permission from Microsoft Corporation.

    This documentation is provided to you for informational purposes only, and is provided to you entirely "AS IS".

    Your use of the documentation cannot be understood as substituting for customized service and informationthat might be developed by Microsoft Corporation for a particular user based upon that users particularenvironment. To the extent permitted by law, MICROSOFT MAKES NO WARRANTY OF ANY KIND,DISCLAIMS ALL EXPRESS, IMPLIED AND STATUTORY WARRANTIES, AND ASSUMES NO LIABILITY TOYOU FOR ANY DAMAGES OF ANY TYPE IN CONNECTION WITH THESE MATERIALS OR ANYINTELLECTUAL PROPERTY IN THEM.

    Microsoft may have patents, patent applications, trademarks, or other intellectual property rights coveringsubject matter within this documentation. Except as provided in a separate agreement from Microsoft, your useof this document does not give you any license to these patents, trademarks or other intellectual property.

    Information in this document, including URL and other Internet Web site references, is subject to change withoutnotice. Unless otherwise noted, the example companies, organizations, products, domain names, e-mailaddresses, logos, people, places and events depicted herein are fictitious.

    Microsoft is a registered trademark of Microsoft Corporation in the United States and/or other countries.

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    ContentsIntroduction to MOF ............................................................ .............. 1

    Overview of the Plan Phase ................................................ ................ 1

    Goals of the Plan Phase ....................................................... ........ 2

    Plan Phase Workflow ...................................................... ................... 3

    Service Management Functions Withinthe Plan Phase .............................................................. ............ 3

    Management Reviews for the Phase ............................ ................... 5

    Service Alignment Management Review .................................... 5

    Portfolio Management Review .................................. ................ 7

    Integrating the Plan Phase with Manage Layer SMFs .............................. 8

    Team SMF Focus ................................................ ......................... 9

    Objectives, Risks, and Controls ........................................ ................. 13

    Conclusion ...................................................................... ............... 15

    Feedback ................................................... .............................. 15

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    Introduction to MOFThe guidance in Microsoft Operations Framework (MOF) encompasses all of theactivities and processes involved in managing an IT service: its conception, development,operation, maintenance, andultimatelyits retirement. MOF organizes these activities

    and processes into Service Management Functions (SMFs), which are grouped togetherin phases that mirror the IT service lifecycle. Each SMF is anchored within a lifecyclephase and contains a unique set of goals and outcomes supporting the objectives of thatphase. An IT services readiness to move from one phase to the next is confirmed bymanagement reviews, which ensure that goals are being achieved in an appropriatefashion and that ITs goals are aligned with the goals of the organization.

    Overview of the Plan PhaseWhat does business want from IT? Services that are reliable, compliant, and cost-effective and that continuously adapt to the ever-changing needs of the business. ThePlan Phase is where business and IT work as partners to determine how IT will be

    focused to deliver valuable services that enable the organization to succeed. Doing thatrequires:

    Understanding the business strategy and requirements and how the current ITservices support the business.

    Understanding what reliability means to this organization and how it will be measuredand improved by reviewing and taking action where needed.

    Understanding what policy requirements exist and how they impact the IT strategy.

    Providing the financial structure to support the IT work and drive the right decisions.

    Creating an IT strategy to provide value to the business strategy and making theportfolio decisions that support that IT strategy.

    The IT strategy is the plan that aligns the organizations objectives, policies, andprocedures into a cohesive approach to deliver the desired set of services that support

    the business strategy. Quality, costs, and reliability need to be balanced in order toachieve the organizations desired outcomes. During the Plan Phase, IT professionalswork with the business to align business objectives and functions with ITs capabilitiesand constraints. The IT strategy is the result of this alignment and serves as a roadmapfor IT. The strategy continually evolves and improves as organizations improve theiroptimizing skills and ability to adapt to business changes.

    The following figure illustrates the position of the Plan Phase within the IT servicelifecycle.

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    Microsoft Operations Framework 4.0

    Figure 1. The Plan Phase within the IT service lifecycle

    Goals of the Plan PhaseThe primary goals of the Plan Phase are to provide guidance to IT groups on how tocontinually plan for and optimize the IT service strategy and to ensure that the deliveredservices are:

    Valuable and compelling.

    Predictable and reliable.

    Compliant. Cost-effective.

    Adaptable to the changing needs of the business.

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    Plan Phase Overview

    Plan Phase WorkflowThe following figure shows the relationship between the SMFs and management reviews(MRs) in the Plan Phase.

    Figure 2. The Plan Phase workflow

    Service Management Functions Withinthe Plan PhaseTo help IT professionals effectively plan and optimize an IT strategy, MOF providesservice management functions (SMFs) that define the processes, people, and activitiesrequired to align IT services to the requirements of the business. SMFs identify anddescribe the primary activities that IT professionals perform within the various phases of

    the IT service lifecycle. Although each SMF can be thought of and used as a stand-aloneset of processes, it is when they are combined that they most effectively ensure thatservice delivery is complete and at the desired quality and risk levels. The servicemanagement functions are organized to achieve a specific purpose and outcome.

    The following table identifies the SMFs that support the achievement of these objectiveswithin the Plan Phase.

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    Microsoft Operations Framework 4.0

    Table 1. Plan Phase SMFs

    SMF Deliverable/Purpose Outcomes

    Business/IT Alignment Deliverable: IT servicestrategy

    Purpose:

    Deliver the right set ofcompelling services asperceived by thebusiness

    IT service portfolio thatis mapped to businessprocesses, functions,

    and capabilities Compelling services that

    support the businessneeds

    Knowledge of servicedemand and usage

    Customer satisfaction

    Reliability Deliverable: IT standards

    Purpose:

    Ensure that servicecapacity, serviceavailability, service

    continuity, and dataintegrity are aligned tothe business needs in acost-effective manner

    Reliability plans

    Reliability performancereports

    Predictable services

    Policy Deliverable: IT policies

    Purpose:

    Efficiently define andmanage IT policiesrequired for theimplementation ofbusiness policies and theeffectiveness of IT

    Documented IT policiesthat are mapped tobusiness policies

    IT policies required forthe effectivemanagement of IT

    Policies documented forthe following areas:

    Security

    Privacy

    Appropriate use

    Partner and third-party management

    Asset protection

    Financial Management Deliverable: IT financial planand measurement

    Purpose:

    Accurately predict,account for, and optimizecosts of required

    resources to deliver anend-to-end service toensure correctinvestments

    Accurate accounting ofIT expenditures; costsmapped to IT services

    Budget that supportsrequired IT investments

    Model to determine IT

    investment opportunitiesand predict lifecyclecosts

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    Plan Phase Overview

    The SMFs in this phase do not have to be performed in sequence but they do have anatural order:

    Business/IT Alignment acts as the coordinating SMF, taking input from the otherSMFs in the phase to drive business value and the IT service strategy.

    Reliability, financial Management, and policy are ongoing functions that support theplanning and optimization of the IT service strategy.

    Each of these SMFs is documented in its own guide:

    Business /IT Alignment Service Management Function

    Reliability Service Management Function

    Policy Service Management Function

    Financ ial Management Service Management Function

    Management Reviews for the PhaseThe management reviews (MRs) for the Plan Phasethe Service Alignment Review andthe Portfolio Reviewprovide a structure for reviewing and analyzing results and takingaction to improve performance.

    Service Alignment Management ReviewThe Service Alignment MR provides an important view into the Plan Phase of the ITservice lifecycle. It is focused on understanding the state of supply and demand for ITservices and directing investments to make sure that the business value of IT is realized.The review should assess the customers experience of IT services compared to servicegoals as well as how IT is delivering that experience in terms of reliability, compliance,cost effectiveness, and value realization.

    To deliver an effective review of Service Alignment, IT management must orchestrateseveral activities and then participate in the review itself. Participation is needed fromoperations, service managers, the business, key stakeholders in IT initiatives, as well asparties responsible for developing business cases and ensuring value realization from ITinvestments. The review serves a key governance function in terms of bringing togetherpeople who have decision-making authority and those with the information needed foranalysis. The result should be decisions to proceed with certain initiatives and changes,rejection of requests, or the determination that additional information is needed fordecision making.

    It is important that these reviews are seen as a form of internal control. To this end,documentation of the review should include who the participants are, the goal of thereview, the decisions made, the proposed initiatives and changes that resulted, and theintended outcomes of initiatives and changes (how they will support managementobjectives).

    Additionally the review presents the opportunity to identify barriers that decreasebusiness/IT alignment or inhibit innovation to the degree that business value is negativelyaffected.

    The following table describes the type of information needed to conduct the review and

    some of the analysis considerations for the review.

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    Microsoft Operations Framework 4.0

    Table 2. Components of the Service Alignment Management Review

    Inputs Analyses Decisions Outputs

    SLA metrics

    New businessrequirements,

    proposals,forecasts

    New regulatoryrequirements

    New policyrequirements

    Customersatisfactionsurveys, other enduser feedback

    Feedback from theOperational Health

    review in theOperate Phase

    Demandmanagementreport

    Reliability report

    Financialreconciliation andnew budgetrequirements

    Audit reports,issues,

    recommendationsSeniormanagementdirectives

    Budgeted vs.actual spending

    Value realizationdata

    Security/privacyincidents?

    Non-compliance

    incidents?Satisfactoryperformance,consistently costeffective?

    Satisfactoryfeatures,business-processfit?

    Satisfaction withsupport?

    New

    requirements,features,processes,services?

    Innovation value;prototyping,innovating, newtechnologies?

    People,capabilitiesmatched toresponsibilities?

    Value realization

    in place andtracking?

    Funding andspendingappropriate and fitportfolio?

    Improvement goalsand potentialactivities identified

    Impacts to services: Create?

    Modify?

    Decommission?

    Risks identified andaddressed forchosen plan of action

    Initiatives andproposals thatrequire furtherinvestigation

    Funding reallocations

    Proposed changes toservice portfolio:

    Enhancements to

    existing services New services

    Decommissioned

    services

    Updates to services

    Service healthassessment

    Proposed budgetsand project spendingactivities

    Areas for continuedinvestigation and

    assignedaccountabilities

    Summary report ofparticipants, decisionsmade, and intendedresults

    This MR results in an understanding of the impact of the new services on IT strategy andofficially proposes new services, changes to existing services (such as serviceimprovements) that are larger than standard changes, and decommissioning of featuresand services.

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    Plan Phase Overview

    Portfolio Management ReviewThe Portfolio MR acts as a gateway in the Plan Phase of the IT service lifecycle. Itfocuses on understanding the concepts and requirements of proposed IT servicechanges, on deciding whether to invest further in the development of those concepts, andapproving a preliminary project vision and scope that will move a project forward into the

    Envision SMF in the Deliver Phase of the lifecycle. The Portfolio MR results in businessand IT agreeing on expectations for value and impact of the proposed work. The reviewestablishes the basis for how changes to the portfolio and its value to the business will bemeasured and evaluated.

    The intentions of this MR are to determine that IT is working on the right things topositively impact the business and clarifying what capabilities of the business will beenabled or improved by the proposed projects. The review also confirms stakeholderunderstanding and support by establishing expectations for scope, value realization, andthe intent of initiatives in terms of impact on the organization, customers, and the ITportfolio.

    The alignment of business and IT is improved by:

    Defining the context of the project.

    Identifying and clarifying areas of ambiguity before proceeding. Judging the fit with the current portfolio.

    Taking into account existing services and initiatives in the pipeline that will result inthe to-be IT environment.

    Participation in this MR should involve an advisory board of those with the authority andknowledge required to make the relevant investment decisions. This board should includethe executive sponsor for the project, business stakeholders, project team members, andrepresentatives of enterprise architecture, finance, and the project management office, ifone exists.

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    Microsoft Operations Framework 4.0

    Table 3. Dimensions of the Portfolio Management Review

    Inputs Analyses Decisions Outputs

    Project conceptproposals and otherchange requests

    Key improvements tobusiness capabilities

    Key enablers forbusiness processes

    Proposed valuerealization

    High-level fundingestimates

    IT portfolio

    Status of in-flightprojects

    Existing andupcoming ITarchitecture

    Regulatory,standards-based, andindustry-specificrequirements

    Process guidelinesand policies

    Metrics and trends forthe Project ConceptMR itself

    Discretionary ornon-discretionaryinitiative

    Goodness-of-fitwith:

    Strategy and

    shared goals

    Other initiatives

    Budget

    Architecture

    Standards and

    regulations

    Capabilities

    Timing

    Portfolio risk

    tolerance

    Executivestakeholdersupport

    Initiative scopeand complexity

    Risk Management

    Innovationapproach

    Portfolio MRperformance

    Projects:

    Approved

    Delayed or

    returned forfurther analysis

    Denied

    Value realizationmetrics forapprovedinitiatives

    Risk analysis andmanagementapproach areadequate

    Improvements to

    the Portfolio MRprocess

    Project Charter -preliminary vision andscope approved

    Initial project teamdetermined

    Approved project(s) tobe published in the ITportfolio

    Summarized expectedimprovement tobusiness by theseadditions to the ITportfolio

    Documented decisionprocess

    Record of deniedprojects kept for futurelearning

    Approved approach tomanagingorganizational andworkflow changesresulting from solution

    Awarenesscommunications forPortfolio MR results

    The ultimate outcome of the Portfolio MR is the initial project charter. With the charter inhand, the team can begin the process of creating the project plan that will ultimatelyresult in building and delivering new or updated services.

    Integrating the Plan Phase with ManageLayer SMFsThe Manage Layer is the foundation of the IT service lifecycle. It is not a separatesegment; rather, the activities of the Manage Layer are integrated with all the otherphases of the MOF IT lifecycle. The following Manage Layer SMFs support the primaryactivities of the Plan Phase:

    Change and Configuration Governance, Risk, and Compliance (GRC)

    Team

    These Manage Layer SMFs are important elements in all of the other IT lifecycle phases.Most of the SMFs in the other phases discuss specific and distinctly different processes.However, the Change and Configuration and GRC SMFs have the goal of ensuringeffective, efficient, and compliant IT services. To that end, they contain guidance thataddresses the unique nature of each phases objectives.

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    Plan Phase Overview

    During the Plan Phase, GRC focuses on an understanding of the larger organizationsstrategy and the related strategy for IT. It also identifies the significant decision makerswho need to be brought together to determine the right mix of investment in the ITportfolio and appropriate risk management related to IT strategy. GRC also addressescompliance by identifying the relevant policy issues that should be addressed within IT,the Plan Phase being the time to determine regulatory impacts and make sure that policyreflects management objectives.

    During the Plan Phase, change and configuration management ensures that changes arereviewed, approved, and tracked.

    Table 4. Manage Layer SMF Focus

    Team SMF FocusThe Team SMF is referenced in each SMF in the Plan Phase to show the primaryaccountability, role types, and responsibilities used in that SMF. More detailed informationregarding the definitions of accountabilities and role types and how they are definedthroughout the IT service lifecycle can be found in the Team SMF.

    There are three accountabilities in the Plan Phase. They are Service Accountability,

    which is important to the Business/IT Alignment SMF; Architecture Accountability, which isimportant to the Reliability SMF; and Management Accountability, which is important toseveral of the SMFs in the Plan Phase.

    Following is an explanation of these three accountabilities.

    Service Accountability

    The Service Accountability includes the role types important to the Business/IT AlignmentSMF, which focuses on strengthening the alignment between IT departments and thelarger organizations within which they exist.

    Table 5 lists the role types associated with the Service Accountability, the generalresponsibilities for each role type, and those specific to the Business/IT Alignment SMF.

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    Objective Focus of GRC Focus of Change andConfiguration

    Team Focus

    Ensure thatservices offeredto the businessare valuable,predictable,reliable, and cost-

    effective whileresponding toever-changingbusiness needs

    Corporate strategytransfer to IT strategy

    Governance structure,decision rights

    High-level risks

    General regulatoryenvironment

    Policy defined

    Investment determined

    Managementobjectives defined

    Leadership identifiedand participating inchange evaluation

    Business processchange

    Architectural change

    Change evaluatedacross dimensions(such as, Financial,Application Portfolio,Security)

    Principles foreffectivestrategicthinking

    Principles forgovernance and

    riskmanagement

    Principles formanagingchangeeffectively

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    Microsoft Operations Framework 4.0

    Table 5. Service Accountability and Its Attendant Role Types

    Role Type Responsibilities Role in This SMF

    Supplier Manager Tracks external vendorswho provide supportingservices and products.

    Ensures effectivevendor relationships

    Portfolio Manager Keeps a set of serviceofferings up to date andaligned to the businessneeds

    Maintains the overallservice catalog

    Ensures availableservices are accuratelyreflected in the servicecatalog

    Account Manager Link between users orcustomers and the ITorganization

    Meets with customers,discusses currentissues, and makes sure

    expectations arealigned

    Ensures effectivecustomer and userrelationships

    Service Level Manager Accountable forBusiness/IT Alignment

    Main interface betweenthe business and the ITservice deliveryorganization

    Handles all issues anddevelopment in ServiceLevel Management,including developmentand agreement of

    SLAs, OLAs, and UCs Represents the

    business, but workswith and within the ITorganization

    Ensures effective ITservice delivery withinspecified SLAs

    Architecture Accountability

    The Architecture Accountability includes the role types important to the Reliability SMF,which focuses on ensuring the reliability, dependability, and trustworthiness of an ITservice or system.

    Table 6 lists the role types associated with the Architecture Accountability, the generalresponsibilities for each role type, and those specific to the Reliability SMF.

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    Plan Phase Overview

    Table 6. Architecture Accountability and Its Attendant Role Types

    Role Type Responsibilities Role in This SMF

    Architecture Manager Ensures creation andmaintenance ofarchitecture plan

    Provides roadmap forfuture use in supportingdesign process and

    ensuring operabilityReliability Manager Uses input from SMC to

    look at currentbottlenecks andpropose solutions

    Ensures current state isreliable

    Architect Looks at futuredirections and solutionsto propose acrossinfrastructure

    Designs future state

    Facilitates Business/ITalignment

    Develops long-termpossible solutions andchoices

    Describes futureconsequences and

    possibilities

    Management Accountability

    The Management Accountability includes the role types that are important to three of theSMFs in the Plan Phase.

    The three SMFs from the Plan Phase are Business/IT Alignment, Financial Management,and Policy. The Business/IT Alignment SMF focuses on strengthening the alignmentbetween IT departments and the larger organizations within which they exist. TheFinancial Management SMF focuses on providing IT-relevant activities andconsiderations that improve financial management practices. The Policy SMF focuses onensuring documented, up-to-date guidelines that address the desired actions andbehaviors of an organization.

    Table 7 lists the role types associated with the Management Accountability, the general

    responsibilities for each role type, and goals specific to each SMF.Table 7. Management Accountability and Its Attendant Role Types

    Role Type Responsibilities Goals

    IT Executive Officer Sponsors IT initiatives

    Approves structuresand overall ITprocesses

    Own metrics andbenchmarking

    Owns board andexecutive relationships

    Business is able torespond and drivechange as desired byboard and shareholders

    IT portfolio and servicesdemonstrate businessvalue and havestrategic impact

    Continually improving IT

    performance with animprovement roadmapin place

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    Microsoft Operations Framework 4.0

    Role Type Responsibilities Goals

    IT Manager Manages processes

    Identifies and engagesappropriate participantsin decision process

    Manages risk and ITbusiness valuerealizationdependencies

    Owns business/ITrelationship

    Effective managementdecisions thatdemonstrate combinedbusiness and ITrequirements

    IT portfolio that reflectsstrategic goals and thatbalances risks withexpected benefits

    Value of IT measured interms the businessunderstands and thatare traceable tocontributing initiativesand services

    IT Risk and ComplianceManager

    Manages overall riskmanagement andcompliance programs

    Communicates GRCprocesses andrequirements toorganization

    Well communicatedGRC processes andexpectations that areapplied appropriatelywhen establishing plansand initiatives

    Assurance and Reporting Validates design andoperating effectivenessof IT organization,processes, and controlenvironment

    Recommends changesfor improvement

    Board and shareholdersinformed and areensuring thatmanagementsdecisions and resultingprocesses reflect theboards intent

    Change Manager Manages the activities

    of the changemanagement processfor the IT organization

    Creates an environment

    where changes can bemade with the leastamount of risk andimpact to theorganization

    Configuration Administrator Tracks what ischanging and its impact

    Tracks configurationitems (CIs)

    Updates CMS

    Have a known state atall times

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    Plan Phase Overview

    Objectives, Risks, and ControlsThe following table provides examples of how management objectives for this phase canbe related to risk and then to controls that help manage those risks. By clearly linkingobjectives, risks, and controls, an IT organization will be more effective and compliant. It

    will also be more efficient in gathering and maintaining documented evidence of itscontrol environment and risk management. Management reviews (MRs) introduce theappropriate level of control to Plan Phase activities. Every company needs to evaluatelaws and regulations to determine its own policies and thus its own compliance controls.However, the management reviews still provide management controls so that compliancecan be evaluated at these points of the lifecycle.

    Table 8. Plan Phase Objectives, Risks, and Controls

    Objective Risk Control

    Ensure that the desiredservices are delivered withthe desired quality at thedesired cost

    Services do not meetbusiness needs

    Cost of services is notpredictable

    Service Alignment MR

    Portfolio MR

    Ensure that IT services arereliable and trustworthy

    IT services wasteresources and are moreexpensive thannecessary

    IT services are poorlydesigned and hard tosupport

    Service deliveryimprovement isineffective

    IT services fail, causingbusiness loss

    Service Alignment MR

    Portfolio MR

    Important MR controlconsiderations:

    Include thereconciliation ofplanned-to-actualspending

    Service reviewsperformed at leastannually or semi-annually and whenthere are major servicebreaks

    Ensure that IT services arecompelling to the business

    IT services fail toprovide significant valueto the business

    IT services are under-used or over-used,resulting in misallocationof resources

    Service Alignment MR

    Portfolio MR

    Important MR controlconsiderations:

    IT service planningbased on businessstrategy, withdocumentedrelationship betweenstrategy and service

    Recurring servicereviews with businessstakeholders

    Usage rates of servicecapacity tracked andincorporated intoservice planning

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    Microsoft Operations Framework 4.0

    Objective Risk Control

    Ensure that IT services arepredictable and can adaptto new businessrequirements

    Unpredictable serviceperformance

    Unplanned changes toIT environment

    The process of changingIT services iscumbersome andcontains unnecessarybureaucracy

    IT has conflicting orinadequate workflow

    Service Alignment MR

    Portfolio MR

    Important MR controlconsiderations:

    Feedback from serviceperformance monitoringcontributes to servicedesign

    Change controlprocedures are in placeand evidence of controloperation isdocumented

    Appropriate businessstakeholders areavailable for changereviews when needed

    Change methodologysupports different levelsof analysis andapproval that result inconsistentlydocumented results

    Ensure that the ITorganization partners withthe business for theplanning and delivery ofservices

    Business unable toefficiently understandavailable IT services

    Service levels notappropriate for businessneeds

    Business requirements

    not well understood ortranslated into ITdesigns

    Service Alignment MR

    Portfolio MR

    Important MR controlconsiderations:

    Business and ITpartnership roles

    defined with clearaccountabilities

    IT understands howlevels of servicecriticality relate todifferent businessfunctions

    Service requirementsare vetted with businessand demonstratedfunctionality is reviewed

    Ensure that the ITorganization proactively

    manages risk

    IT services repeatedlynegatively affected by

    unplanned events

    Service Alignment MR

    Portfolio MR

    Important MR controlconsiderations:

    Process of identifyingrisk starts at beginningof planning

    Risk managementcontinues throughout anIT services lifecycle

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    Plan Phase Overview

    ConclusionThis document provides a broad overview of the MOF Plan Phase and its related SMFs,management reviews, and controls. The next step in putting MOF 4.0 into practice is toconsider your organizations needs, and then read and use the relevant SMFs. Theirstep-by-step guidance will be of value to IT organizations whose goal is reliable, efficient,

    and compelling IT services.The Plan Phase SMFs are:

    Business/IT Alignment

    Reliability

    Policy

    Financial Management

    FeedbackPlease direct questions and comments about this guide to [email protected].

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    mailto:[email protected]?subject=Plan%20Phase%20Overviewmailto:[email protected]?subject=Plan%20Phase%20Overview