brighttalk getting back on track - final

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Getting Back on Track: How to Develop Strategies That Create Agility and Alignment

BrightTALK Summit on Innovation & Evolution of ITSM

Follow Us: #ITSMSummit!

Mr. White has fifteen years of experience designing and managing the deployment of Systems Monitoring and Event Management software. Prior to joining IBM, Mr. White held various positions including the leader of the Monitoring and Event Management organization of a Fortune 100 company and developing solutions as a consultant for a wide variety of organizations, including the Mexican Secretaría de Hacienda y Crédito Público, Telmex, Wal-Mart of Mexico, JP Morgan Chase, Nationwide Insurance and the US Navy Facilities and Engineering Command.

Andrew White Cloud and Smarter Infrastructure Solution Specialist IBM Corporation

http://weheartit.com/entry/12433848!



Ground rules for this session… •  If you can’t tell if I am trying to be funny… –  GO AHEAD AND LAUGH!

•  Feel free to text, tweet, yammer, or whatever. Use

•  If you have a question, no need to wait until the end. Just interrupt me. Seriously… I don’t mind.

I have a lot of experience leading Systems and Event Management teams

My name is Andrew White

Strategy,

I am here today to share some of what I have learned about

Systems Thinking,

and Change.

QUESTION: What value does your IT organization create for your business?

HINT: “We provide infrastructure or applications the business uses” is not a value proposition

If you can’t answer this question, how can you be sure you are doing the right things and doing them well…



Why do we need a strategy? •  Without a strategy, we fill our time with… – … what we want, or – … what we think the boss wants, or – … by reacting.

•  Without a strategy, time and resources are easily wasted on piecemeal, disparate activities.

“Are you sure you have a strategy?” Donald C. Hambrick and James W. Frederickson Academy of Management Executive 2001 Vol. 15 No. 4



Outcomes

The Strategy Focused Organization *

Roadmap What actions are we taking?

Strategy How will we achieve our vision?

Vision What do we want to be?

Values What do we believe?

Mission Why do we exist?

* The Strategy Focused Organization, Robert Kaplan, David Norton, Harvard Business School Press, 2001

Happy Shareholders

Delighted Customers

Effective Processes

Engaged Employees

“Nobody really knows what strategy is.”

The Economist, 20 MAR 1993



What Is Strategy? The combination of competitive moves and business approaches that are chosen to help the company reach specified goals



What Isn’t a Strategy •  Strategy is not an action:

–  “We are implementing release management” –  “We are deploying automation”

•  Strategy is not an aspiration: –  “We are trying to be #1” –  “We are trying to provide 99.999% uptime”

•  Strategy is not a vision: –  “We want to understand our customers and satisfy their needs” –  “We want to be a leading innovator”



CIO’s turn to innovative technologies to deliver better outcomes

Cloud & Optimized Workloads §  Agile provisioning §  Elastic compute power §  Scalable storage

resources §  Intelligent services

Mobile Enterprise §  Hybrid mobile "

app development §  Multi-channel integration §  Device management §  Workloads on the move

Security Intelligence §  People &

identity §  Data &

information §  Application

security §  Security

analytics

Big Data Analytics §  Analyze an enormous variety of information sources §  Real-time insights & actions on streaming data

IBM CIO Study (2012)



Operational Effectiveness Is Not Strategy Operational effectiveness is about doing things better than competitors, strategic is about doing things differently from competitors. Operational effectiveness is necessary to compete but not sufficient to win.

“What is Strategy,” Michael Porter, Harvard Business Review, November 1996, Reprint # 96608

It isn’t a strategy if you aren’t forcing decisions to be made.

http://commons.wikimedia.org/wiki/File:Fredmeyer.jpg

The average grocery store carries 48,750 items including: •  91 different shampoos •  93 varieties of toothpaste •  115 types of household cleaners



Five Dimensions of Strategy •  a consciously and purposefully developed plan; •  a ploy to outmaneuver a competitor; •  a pattern in a stream of actions, whether

intended or not; •  a position defined either with respect to a

competitor, in the context of a number of competitors, or with respect to markets; and as

•  a perspective, i.e. a certain mindset of how to perceive the world.

Mintzberg, H. (1987). "The Strategy Concept I: Five Ps For Strategy." California Management Review 30(1) Fall: 11-24.



Sustainable Competitive Advantage •  Unique competitive position for the company •  Activities tailored to strategy •  Clear trade-offs and choices vis-à-vis

competitors •  Competitive advantage arises from fit

across activities •  Sustainability comes from the activity system,

not the parts •  Operational effectiveness a given



How Strategies Evolve

Version 3.2 March 2011 22

© Marc Sniukas “Strategy: Process, Content, Context” 3rd edition De Wit & Meyer Thomson Learning 2004

Intended Strategy (Plan of Action)

Unrealized Strategy Realized Strategy

(Pattern of Actions)

Emergent Strategy



Striking a Balance

“Strategy: Process, Content, Context” 3rd ediDon De Wit & Meyer Thomson Learning 2004

Strategic Thinking Logic vs Creativity

Strategy Formation

Strategic Change

Deliberateness vs Emergence

Revolution vs Evolution

Business Level Strategy Markets vs Resources

Corporate Level Strategy

Network Level Strategy

Responsiveness vs Synergy

Competition vs Cooperation

Industry Context Compliance vs Choice

Organizational Context

International Context

Control vs Chaos

Globalization vs Localization

Organizational Purpose Profitability vs Responsibility Purpose

Strategy Context

Strategy Content

Strategy Process

A great strategy has pieces, but they form a coherent whole!

The rationality of individuals is limited by the information they have. This causes “The Tragedy of the Commons.”



What Is a System? It is a set of interconnected actors that change over time when they are influenced by other elements of the system.

Actor

Actor

Actor Actor

Actor

Actor

Actor

Actor



Organizations as a System Board of Directors CEO

Marketing

Sales

Product Development

Customer Support

Legal

M&A

General Counsel

Intellectual Property

HR

Employee Relations

Training

Benefits

Operations

Purchasing

Supply Chain

Facilities

Delivery



System to Sub-System Board of Directors CEO

Marketing

Sales

Product Development

Customer Support

Legal

M&A

General Counsel


HR

Employee Relations

Training

Benefits

Operations

Purchasing Supply Chain Facilities

Buildings Grounds

Gardens

Lawns

Snow Removal

Delivery



Finding Connections Board of Directors CEO

Marketing

Sales

Product Development

Customer Support

Legal

M&A

General Counsel


HR

Employee Relations

Training

Benefits

Operations

Purchasing Supply Chain Facilities

Buildings Grounds

Gardens

Lawns

Snow Removal

Delivery

How do we establish the relationship between the system and the process?



IDEO Problem Solving Process

Time Abstract

Observable

Solutions [Actions]

Problems [Goals]

Insights [Objectives]

Framework [Strategies]

Principles [Tactics]



Key Concepts to Understand •  Objective: a desired outcome. The terms Strategy and

Objective are not interchangeable. An objective defines the results that supporting strategies must achieve.

•  Strategy: a method for achieving an objective. Each objective has a "necessary and sufficient set" of strategies (roughly 2-8) which define it; each strategy aims to achieve a single objective.

•  Tactic: how the strategy is implemented. Each strategy has a group of tactics (usually 2-8) to define how the strategy will be implemented and when. Each tactic has a single strategy it aims to accomplish.



How a Plan Comes Together

Actions

Tactic Tactic Tactic

Strategy Strategy Strategy

Objective

Actions

Actions



How a Plan Comes Together

Actions



Objective

Actions

Actions

This is the basis for a project work-breakdown-structure

Decisions are made here



Let’s Use Me As An Example

Actions

Leverage My

Network

Inside Sales Leads

CRM

Find New Clients Strategy

Grow Existing Clients

Sell $XX By 1H2013

Actions

Actions



How Objectives Cascade

Actions



Objective

Actions

Actions

Actions



Objective

Actions

Actions

Actions



Objective

Actions

Actions

CEO

VP of Operations

Director of Facilities

Delegated Down

Delegated Down Reported Up

Reported Up



Bridging the Gap

Actions



Objective

Actions

Actions

Actions



Objective

Actions

Actions

Actions



Objective

Actions

Actions

CEO

VP of Operations


Delegated Down

Delegated Down Reported Up

Reported Up

Understanding these shared components help you begin a new conversation in context



No Visibility

Bridging the Gap

Actions



Objective

Actions

Actions

Actions



Objective

Actions

Actions

Actions



Objective

Actions

Actions

CEO

VP of Operations


These relationships help you conduct a conversation that is meaningful to the person with whom you are working.



No Visibility

No Visibility

No Visibility

The need for context

Actions



Objective

Actions

Actions

Actions



Objective

Actions

Actions

CEO

CIO

Actions



Objective

Actions

Actions

VP of IT Ops

Actions



Objective

Actions

Actions

Dir. Of ITSM

Actions



Objective

Actions

Actions

ITSM Manager

Actions



Objective

Actions

Actions

Process Owner



Many Moving Parts VP of IT Ops

Objective

Actions



Objective

Actions Actions

Objective

Actions



Objective

Actions Actions

Actions



Objective

Actions Actions

Actions



Objective

Actions Actions

Objective

Actions



Objective

Actions Actions

Actions



Objective

Actions Actions

Actions



Objective

Actions Actions

Objective

Actions



Objective

Actions Actions

Actions



Objective

Actions Actions

Objective

Actions



Objective

Actions Actions

Objective

Actions



Objective

Actions Actions

Actions



Objective

Actions Actions

Actions



Objective

Actions Actions

Objective

Actions



Objective

Actions Actions

Actions



Objective

Actions Actions

Actions



Objective

Actions Actions

Objective

Actions



Objective

Actions Actions

Actions



Objective

Actions Actions

Objective

Actions



Objective

Actions Actions

Objective

Actions



Objective

Actions Actions

Actions



Objective

Actions Actions

Actions



Objective

Actions Actions

Objective

Actions



Objective

Actions Actions

Actions



Objective

Actions Actions

Actions



Objective

Actions Actions

Objective

Actions



Objective

Actions Actions

Actions



Objective

Actions Actions

Objective

You need to incorporate your strategy into this person’s actions in such a way that it helps them with their objective?



Why strategies fail… 1.  allowing too much complacency 2.  failing to create a sufficiently powerful guiding coalition 3.  underestimating the power of vision 4.  under communicating the vision 5.  permitting obstacles to block the new vision 6.  failing to create shot term wins 7.  declaring victory too soon 8.  neglecting to anchor changes firmly in the corporate culture

Leading Change, John Kotter, Harvard Business School Press, 2012

As we have become more aware that things are always happening, our behavior has changed.

We are no longer thinking, we are reacting…


Follow Us: #ITSMSummit! http://static4.businessinsider.com/image/5176c232ecad04805d000010-505-277/screen%20shot%202013-04-23%20at%201.09.49%20pm.png

April 23, 2013 The Twitter account for the Associated Press was hacked The hackers posted a fake notice that the White House was attacked and President Obama was injured The Dow dropped 150 points in less than 5 minutes



Systems are Volatile This change makes it difficult to control the behavior of the system. The good news is that systems are perfect. They always deliver the optimum result given a specific stimuli.

A failure is not always a mistake, it may simply be the best one can do under the circumstances. -- B.F. Skinner, American Psychologist & Professor, Harvard University

Uh oh. Two independent thought alarms in one day. The students are over-stimulated. Willie! Remove all the colored chalk from the classrooms. --B.F. Skinner, Principal, Springfield Elementary School

You can't judge my choices without understanding my reasons. -Unknown



Two Important Properties •  The causal effect between two actors will

always impact the entire system •  Correlation != Causation



How Fire Works

Time

Oxygen Heat Fuel

Fire

Mat

ch S

trike

Action

Conditions

Fire

Oxygen

Heat

Fuel

Match Strike

-AND-

• Actions are momentary and act as a catalyst to bring about change

• Conditions are stable and exist over time



A Real World Example

Customers Complaining

Web Server returning 500 errors

The application server was timing

out

SQL Server was not processing queries

Transaction log was unable to grow

T: Drive at 0 Bytes free

Logs were not truncated

DBA on honeymoon vacation in Fiji

Logs are truncated manually

Company has only 1 DBA

“Backup” DBA was not aware the logs require truncation

Space allocations are fixed Lack of Control

Only one database cluster in use

DR SQL Cluster

DR Cluster being used for UAT testing

More Information Needed

One one application server exists

More Information Needed

Trying to do business on the website Desired Condition

-AND-

-AND-

-AND-

-AND-

-AND-

-AND-

-AND-



Feedback Loops Unfortunately feedback has taken on both positive and negative indications. In reality, positive feedback is not “praise” and negative feedback is not “criticism.” Positive feedback reinforces while negative feedback balances.

Profits

Productivity

Cost Cutting Reinforcing

Balancing



Why This is Important Understanding feedback loops helps us to overcome complacency, drive bystander accountability, weed out mediocrity and get beyond the status quo.



Do Your Project Go Like This?

Select the Solution Run POC … ?!??

Document Lessons Learned



The Agile Value Proposition

Availability

Change Frequency Change

Size

Change Capability Change

Risk

(-)

(+) (+)

(-) (-)

Adapted From: http://www.lean4it.com/2013/05/devops-cld-part-2.html



Customer Satisfaction

Availability


Size


Risk

(-)

(+) (+)

(-) (-)

Business Value

Business Demand

Change Backlog (+)

(+)

(+)

(+)

(-)

(+)




Be Careful of Good Intentions

Availability


Size


Risk

(-)

(+) (+)

(-) (-)

Business Value

Business Demand

Change Backlog (+)

(+)

(+)

(+)

(-)

(+)

Change Process

Release Process

(+)

(+)

(-) (+)

(+)




THE CRISIS OF CAPACITY •  Humans are NOT Computers! – Continuously, at high speeds, for long periods of

time, running multiple programs at the same time.

Source: Tony Schwartz (The Energy Project, www.theenergyproject.com)



Our typical approach towards service improvement is a bit like attempting to

put the toothpaste back in the tube “Some problems are so complex that

you have to be highly intelligent and well informed just to be undecided about them.”

- Laurence J. Peter

Control Is An Illusion



But we seemed to be struggling to deliver



We all have the same goal in common…

We need to celebrate the cultural differences between Dev and Ops



The ties that bind; the things that tear us apart •  Development •  Budget Counts as CAPEX •  Incented for delivering capability •  Identifies with “the Business” •  Organized in multi-functional

teams •  Process focused on CMMI •  Obsessed with objects,

algorithms and UI design

•  Operations •  Budget Counts as OPEX •  Incented for delivering stability •  Identifies with “the environment” •  Organized in technology

specific silos •  Process focused on ITIL •  Obsessed with protocols,

scalability and currency



We have to be a team

We need to coach each other

Constructive Criticism

If no critique is given, no improvement will happen.



We need to rewrite the book on how we communicate with each other. Just because we all breathe air, work in IT, and speak English does not guarantee we are communicating.

“Perfection of means and confusion of ends seem to characterize our age.” -- Albert Einstein



IT’s Big Challenge Agenda Setting

External Assessment

Internal Assessment

Option Generation

Option Selection

Action Taking

Performance Control

Mission Setting

Identifying

Diagnosing

Realizing

Conceiving

Here is where IT is considered

IT is consulted

Here is where IT is evaluated



Our understanding of your goals

§ Gaining visibility into and control of an increasingly complex operating environment in order to prevent frequent and prolonged outages

§ Evolving from fault monitoring to a holistic approach to managing application performance

§  Increased focus on cloud makes problem isolation and resolution more complex.

PROACTIVE OPERATIONS

§ Optimizing the performance of business processes to boost productivity

§ Providing cost transparency to track, analyze, and manage resources and control the costs associated with highly-virtualized and cloud environments

§  Improving software asset management to prevent over-spending and under-licensing

CONTROL COST

§ Leveraging automation to facilitate

rapid growth and reduce the cost of service delivery

§ Maintaining OS and application patch levels across all images (active or dormant) to protect the enterprise and enable compliance

§ Automating application releases to optimize service delivery and align the Development and Operations teams thereby increasing innovation, reducing costs, and accelerating time to value

ELIMINATE HUMAN FACTORS

Constant change is disruptive to an IT organization. We have experienced that many of our clients use this as an opportunity to re-evaluate the way they operate their environments and the tools they leverage to deliver a quality service.

We have identified three key goals driving the adoption of the cloud:



Reduce human errors •  Physical Server Build – Single Server- e.g. Deploy

OS, Install Mozilla Firefox 18.0 followed by an upgrade to 18.0.2; Deploy middleware and application stacks

•  Virtual Server Build – Provision a VM from ISO or Template and deploy software

•  Server Patch (Client-Server scenario) - Shut down client services, stop server, apply patch to server, restart server, start client services

•  Sequenced OS Patching – Across different environments (across systems that form a service, e.g. email)

•  Patch Rollout – Patch machines 1-10, then 11-50, then 51-1000 (patch Development, then patch Test, then patch Production Environment)

Task sequencing

Update 90,000 servers in days with 70% less infrastructure than

currently using. Patch the OS of a client-server system in 1 hour or build a 2 tier application in hours.

Take endpoint automation to the next level:



Reduce costs & improve operational efficiency •  Leverage “Out of the Box” IEM fixlets, Tasks

and baselines in an Automation Plan across groups of related servers

•  No programming skill required - Simple UI to build automation

•  Higher levels of automation - All plans can be created, saved, and re-used

•  Conditional logic for each step in a plan (initially success/failure)

•  View execution of plans - Completed and running with drilldown

Database Server

Applica3on Server

1. 2.

3.

Client Worksta3ons

1.  Upgrade the DB server 2.  If successful, upgrade the App server 3.  If 1& 2 are successful upgrade the Client

workstations 4.  If any Failures occur, stop further updates



Be Careful of Good Intentions

Availability


Size


Risk

(-)

(+) (+)

(-) (-)

Business Value

Business Demand

Change Backlog (+)

(+)

(+)

(+)

(-)

(+)

Change Process

Release Process

(+)

(+)

(-) (+)

(+)

Change Automation


(+) (-) (-)

Organizations don’t fail because they take the wrong path, they fail because they can’t imagine a better path than the one they are on. -- Marty Neumeier



Let’s keep the conversation going…

[email protected]!

ReverendDrew!

SystemsManagementZen.Wordpress.com!

systemsmanagementzen.wordpress.com/feed/!

@SystemsMgmtZen!

ReverendDrew!

[email protected]!

614-306-3434!

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