business capm irm v2 0 05.26.2015

Solution Engineering Business Capacity Management Process Description of 18

Business Capacity Management Manual Transmittal

Effective Date<Date, MM/DD/YYYY>

Purpose: This transmits a revised Business Capacity Management (BCapM) Process.

Material Changes Updated to current IPM template

Effect on Other Documents: IRM 2.144.2 dated October 10, 2014 is superseded..

Audience: The Business Capacity Management Process is applicable to all ACIO areas with responsibility for Capacity Management.

Signature

Sri Rao,Director, Solution Engineering

OS:CTO:ES:SE:EPM_Business-Capacity-Management_PD_V2.0_04272015


Change History

Version Number Version Date Change Description/Purpose

Location Type Nature of Change(s)V2.0 04/27/2015 All M Updated to current template

A - ADDED M - MODIFIED D - DELETED



Table of Contents1. Introduction..................................................................................................................................... 41.1 Administration............................................................................................................................4

2. Overview.........................................................................................................................................42.1 Process Description...................................................................................................................42.2 Goal...........................................................................................................................................42.3 Objectives..................................................................................................................................4

3. Workflow.........................................................................................................................................43.1 Main Process Diagram..............................................................................................................53.2 Inputs.........................................................................................................................................63.3 Outputs......................................................................................................................................73.4 Activities....................................................................................................................................83.5 Roles......................................................................................................................................... 9

4. Process Control.............................................................................................................................104.1 Controls...................................................................................................................................114.2 Metrics.....................................................................................................................................114.3 Policies....................................................................................................................................124.3.1 Process Management.......................................................................................................124.3.2 People...............................................................................................................................124.3.3 Process.............................................................................................................................124.3.4 Technology and Tools.......................................................................................................12

4.4 Tailoring Guidelines.................................................................................................................135. Training.........................................................................................................................................136. Procedure..................................................................................................................................... 136.1 Purpose of Procedure..............................................................................................................136.2 BCapM 1.0: Business Capacity Management.........................................................................136.3 BCapM 2.0 Negotiate Service Level Agreements and Implement Changes...........................146.4 BCapM 3.0 Review Component Performance.........................................................................146.5 BCapM 4.0 Develop the Capacity Plan...................................................................................156.6 BCapM 5.0 Review the Capacity Plan.....................................................................................156.7 BCapM 6.0 Review the SLA and Service Catalog...................................................................15

7. Appendix.......................................................................................................................................157.1 Acronyms................................................................................................................................ 157.2 Glossary.................................................................................................................................. 16



1. IntroductionThis document describes the formal process for implementing the requirements of the Business Capacity Management process. It provides an operational definition of the major components of the process and how to perform each step in the process. This document also describes the logical arrangements of steps that are essential to successfully completing the process and achieving its desirable outcome.

1.1 AdministrationAll proposed changes to this document must be submitted in writing, with supporting rationale, to the Solution Engineering Organization

2. OverviewA process is defined as “A set of related of activities that accomplish a common goal”. The process definition laid out in this document further breaks down these Activities into Tasks, each of which have a complete set of attributes defined such as data and tool specifications and the role(s) responsible for executing the tasks. The document also includes process goal and objectives, metrics, role definitions, policies and other process related attributes.

2.1 Process DescriptionThe Business Capacity Management (BCapM) process translates business needs andplans into requirements for service and IT infrastructure, ensuring that the futurebusiness requirements for IT services are quantified, designed, planned and implemented in a timely fashion.

2.2 GoalThe process goal describes a specific purpose or achievement toward which the efforts of the process are directed. Each process has a specific focus and when combined with the other processes, forms a comprehensive framework for delivering and managing services.

The goal of Business Capacity Management is to ensure that the capacity of IT services and the IT infrastructure is able to deliver the agreed service level targets in a cost effective and timely manner. Business Capacity Management considers all resources required to deliver the IT service, and plans for short, medium and long term business requirements.

2.3 Objectives

Process objectives describe material outcomes that are produced or achieved by the process. The following is a list of objectives for this process:

To provide Capacity Service Level Targets and metrics to the Service Level Management Process in order for them to be incorporated into Service Level Agreements and into a Business Capacity Plan.

3. WorkflowA workflow consists of Activities and Tasks, Inputs and Outputs, Roles, and Flow Diagrams. It describes the tasks, procedural steps, organizations or people involved, required input and output information, and tools needed for each step of the process.



3.1 Main Process Diagram



3.2 InputsProcess inputs are used as triggers to initiate the process and to produce the desired outputs. Users, stakeholders or other processes provide inputs. The following is a list of inputs for this process:

Name Description Supplier

BusinessInformation

Information about the business strategy, plans and requirements.

Organization's BusinessGroups

Service &InformationTechnology (IT)ComponentRelationships

Information about the services, the relationship to the business requirements, and infrastructure components needed.

Business and ITStrategies, ServiceStrategy, IT plans andcurrent budgets

ComponentPerformance andCapacityInformation

Capacity and Performance specifications from the manufacturer or developer; detailing expected performance and thresholds.

Manufacturers andSuppliers

ServicePerformance Issues

Capacity related Incidents and Problems plus service level breaches.

Incident and ProblemManagement processes

Service Information

Details of the Service Level Requirements, Service Level Agreements and data about the performance and utilization of the services.

SLM process

FinancialInformation

Information about the cost of providing a service. This will include, hardware, software, Component costs, and support and maintenance charges.

Financial Managementprocess

ChangeInformation(Request forChange)

Capacity Management is responsible for assessing the impact of all proposed changes on the performance of infrastructure and services being provided.

Change Managementprocess

PerformanceInformation

Current and historical performance and utilization information for IT services and IT infrastructure components.

Capacity Management Information System (CMIS)



Name Description SupplierConfigurationManagementSystem (CMS)Information

Configuration data on the components, services and relationships.

ConfigurationManagement System(CMS)

Workload /OperationalInformation

Information about job schedules, operational tasks, and services dependencies.

IT Operations team

Patterns ofBusiness Activity(PBA)

An analysis of the workload showing how this varies according to demand.

Demand Management

3.3 OutputsEach process produces tangible outputs. These outputs can take the form of products or data and can be delivered to a user or stakeholder, or, they can be used as inputs to other processes. Outputs are measurable in terms of quantity and quality.

Name Description RecipientCapacity ManagementInformation System (CMIS)

The data repository where performance & utilization data is collected analyzed and stored.

Enterprise wide availability

Capacity Plan

The Capacity Plan details current performance and utilization, future requirements, Capacity projections, capacity issues and plans for improving performance and satisfying business requirements. “Targets”

CMIS Service

Manager Business

Stakeholders Operational

Manager Higher

Authority

Service PerformanceInformation and Reports

Reports on the performance and utilization of Services using data in the CMIS.

BCapM Manager

Service Manager

Business Stakeholders

Operational Manager



Name Description Recipient

Component PerformanceInformation and Reports

Reports on the performance of Components using data in the CMIS.

BCapM Manager

Service Manager


Operational Manager

Workload Analysis andReports

Reports providing information about workloads that can be used for modeling, application sizing, and capacity planning.

BCapM Manager

Service Manager

Operational Manager

Ad Hoc Capacity andPerformance Reports

Performance and Utilization reports generated on an as needed basis, typically in response to capacity issues.

BCapM Manager

Service Manager


Operational Manager

Forecasts and PredictiveReports

Reports used to plan capacity changes and proactively identify potential capacity issues.

BCapM Manager

Service Manager


Operational Manager

3.4 ActivitiesAn activity is a major unit of work to be completed in achieving the objectives of the process. A process consists of a sequence of related activities that transforms inputs into outputs and performed by the roles defined in the process. Identify the activities in the process and provide a brief description. The activities must correspond with the high-level process flow diagram above.



ID Name Description

BCapM 1.0

Plan the Business Capacity Management Strategy

The IT Strategic Plan lays the foundation for the Capacity Management process. The plan reflects an understanding of how IRS IT Projects utilizes IT Enterprise resources to enable key processes. With an understanding of the interrelationships among IT processes Capacity Management will be in a good position to estimate capacity needs. Capacity Management expresses business requirements into capacity terminology i.e. services and component needs and aggregates them with the common Infrastructure in ways which identify commonalities and areas where resources might be efficiently shared without unacceptable risks.

BCapM 2.0

Negotiate Service Level Agreements and implement Changes

Service Level Agreements (SLAs) should include details of the anticipated service throughputs and the performance requirements. The purpose of this step is to provide Service Level Management (SLM) with targets that have the ability to be monitored and upon which the service design has been based. Confidence that the service design will meet the Service Level Requirements (SLR) and provide the ability for future growth can be gained by using modeling.

BCapM 3.0 Review

Component Performance

BCM ensures the monitoring of the utilization of underlying components. All of the collected data is recorded, analyzed, and reported. Therefore, the purpose of this step is to ensure that the performance of the solution(s) meet the business requirements.

BCapM 4.0

Develop the Capacity Plan

The production and update of a Capacity Plan should occur at pre-defined intervals. It is, essentially, an investment plan and should therefore be published annually, in line with the business or budget lifecycle, and completed before the start of negotiations on future budgets. The purpose of the Capacity Plan is to document what capacity is needed in the future and at what cost. Also, the Capacity Plan forecasts hardware upgrades or additional equipment needed to meet future service level objectives and includes information on sizing of any new systems proposed. The Capacity Plan documents cost constraints and availability or reliability requirements. The plan should discuss current utilization rates and service performance. It should be based upon business strategies and explicitly recognize business strategic and operational plans and forecasts in its' estimates of future requirements. Recommendations should include estimates of necessary resources, relevant impacts, associated costs and benefits, etc.

BCapM 5.0 Review the

Capacity Plan

The purpose of Capacity Plan review is to periodically re-issue the updated plan to take into account changes in business plans, to report on the accuracy of forecasts and to make or refine recommendations.



ID Name DescriptionBCapM 6.0

Review SLAs and Service Catalog

Business Capacity Management assists SLM in understanding the Customers' Capacity requirements, for example in terms of required response times, expected throughput and pattern of usage, including the terminal population. The purpose of this Business Capacity Management step is to facilitate the SLA negotiation process by providing possible solutions to a number of scenarios. For example, if the terminal population is less than 20 then response times can be guaranteed to be less than two seconds. If more than 20 Users connect then extra network bandwidth is needed to guarantee the required response time.

3.5 RolesEach process defines at least one role. Each role is assigned to perform specific tasks within the process. The responsibilities of a role are confined to the specific process. They do not imply any functional standing within the hierarchy of an organization. For example, the process manager role does not imply the role is associated with or fulfilled by someone with functional management responsibilities within the organization. Within a specific process, there can be more than one individual associated with a specific role. Additionally, a single individual can assume more than one role within the process although typically not at the same time.

Name Description

Business Capacity Manager

• Ensures process procedures are followed• Represents interests of Capacity Management at meetings and functions• Receives and acquires Higher Authority support as needed• Verifies and adjusts parameters used in the planning process• Adds and reviews system life cycle performance design criteria and production acceptance tests• Recommends resource re-allocations• Ensures that the Capacity Plan is current and that it tracks business growth and trends

Business CapacityManagement Analyst

• Produces Capacity Plan with a forecast far enough ahead to take account of changes in IT capacity that comply with business plans and IT plans• Documents the need for HW, SW and Component upgrades or additional equipment, based on SLRs, cost constraints, reliability and availability• Produce regular management reports including current usage of Components, expected trends and forecasts• Responsible for Capacity Management documentation



Name Description

Higher Authority

• Approve resources to meet capacity requirements• Review and recommend capacity improvement recommendations

• Review summary performance information describing capacity• Act as the final point of escalation for capacity issues

Operational Manager

• Provide ongoing maintenance of Configuration Items (CI) which affects their operation and institute measures to keep them operating at peak performance• Assist in describing the service chains associated with service provisioning• Participate in discussions of capacity• Meeting Operational Level Objectives and explaining variances from targets.


• Negotiate capacity targets and sign-off on targets in Operational and/or Service Level Agreements• Review capacity performance against target and participate in preparation and recommendation of any remedial actions• Participate in preparation and review of Capacity Plan• Provide information on capacity

Service Manager • Ensures that services are operational• Reviews Capacity Plans

4. Process ControlActivities involved in ensuring a process is predictable, stable, and consistently operating at the target level of performance.

4.1 ControlsProcess controls represent the policies and guiding principles on how the process will operate. Controls provide direction over the operation of processes and define constraints or boundaries within which the process must operate.

Name DescriptionCapacity Management Policy

Business Capacity Management is a required activity mandated by the IRS CTO.

Scope Business Capacity Management process is limited to all ACIO areas with responsibility for Capacity Management.

Process MetricsBusiness Capacity Process Monitors will continuously verify to what degree the Business Capacity Management Process is being used.



4.2 MetricsMetrics are used for the quantitative and periodic assessment of a process. They should be associated with targets that are set based on specific business objectives. Metrics provide information related to the goals and objectives of a process and are used to take corrective action when desired results are not being achieved and can be used to drive continual improvement of process effectiveness and efficiency.

Management will regularly set targets for process performance, gather quantifiable data related to different functions of the Business Capacity Management process, and review that data in order to make informed decisions and take appropriate corrective action, if necessary. All Measurements will have a defined data dictionary, map to the organizational strategic goals, and be documented in a Process Measurement Plan. The Process Measurement Plan template is available in the IT PAL.



4.3 PoliciesPolicies outline a set of plans or courses of action that are intended to influence and determine decisions or actions of a process. Policies provide an element of governance over the process that provides alignment to business vision, mission and goals.

4.3.1 Process ManagementStatement: The Business Capacity Management process will have a single Process Owner and a separate Process Manager, responsible for implementation and ensuring adherence to the process. The process will be reviewed regularly to ensure that it continues to support the business requirements of the enterprise. The process will be designed and developed based on ROI to the business. Process metrics will be focused on providing relevant information as opposed to merely presenting raw data.

4.3.2 PeopleStatement: Roles and responsibilities for the process must be clearly defined and appropriately staffed with people having the required skills and training. Upper management to the staff and business customers of IT must clearly and regularly communicate the mission, goals, scope and importance of the process. All IT staff (direct and indirect users of the process) shall be trained at the appropriate level to enable them to support the process.

Rationale: It is imperative that people working in, supporting or interacting with the process in any manner understand what they are supposed to do. Without that understanding Business Capacity Management will not be successful.

4.3.3 Process Statement: The Process Owner must approve modifications to the Business Capacity Management process. The design of the process must include appropriate interfaces with other processes to facilitate data sharing, escalation and workflow. The process must be capable of providing data to support real-time requirements as well as historical/trending data for overall process improvement initiatives. The process must be fully documented, published and accessible to the various stakeholders of the process. The process will be reviewed on a periodic basis in order to ensure it continues to support organizational goals and objectives (continuous improvement). The process must include Inputs, Outputs, Controls, Metrics, Activities, Tasks, Roles and Responsibilities, Tool and Data requirements along with documented process flows. The process will be kept straight forward, rational, and easy to understand.

Rationale: The process must meet operational and business requirements.

4.3.4 Technology and ToolsStatement: All tools selected must conform to the enterprise architectural standards and direction. Existing in-house tools and technology will be used wherever possible, new tools will only be entertained if they satisfy a business need that cannot be met by current in-house tools. The selection of supporting tools must be process driven and based on the requirements of the business. Selected tools must provide ease of deployment, customization and use. The selected tools must support heterogeneous platforms. Automated workflow, notification and escalation will be deployed wherever possible to minimize delays, ensure consistency, reduce manual intervention and ensure appropriate parties are made aware of issues requiring their attention.



The tools used by this process are the following:

Capacity Management Information System (CMIS)

Rationale: Technology and tools should be used to augment the process capabilities, not become an end themselves.

4.4 Tailoring GuidelinesThe tailoring guidelines identify the allowable variations of the IT organization’s standard process as needed for adjustments (adding, deleting, modifying) relative to specific operational or functional needs of another organization. Process tailoring is about roles and procedures, not the standard process or major activities defined in this process. All tailoring request, with supporting rationale, must be submitted in writing to and approved by the Business Capacity Management owner.

5. TrainingProcess training involves training all stakeholders about key processes that are crucial for an organization to deliver business objectives. Training provides clarity to employees on a set of procedures that needs to be carried out as part of the process and the best possible way to do them. List below the training resources available for this process:

Capacity Management, ELMS Course #57752

6. Procedure

6.1 Purpose of ProcedureThis document defines the step-by-step instructions on how to conduct the activities used to implement the Business Capacity Management process in Solution Engineering. The purpose of a procedure document is to institutionalize and formalize the preferred method of performing tasks that staff is using. The objective is to have everyone using the same tools and techniques and follow the same repeatable steps so that the organization can quantify how well the procedure is working and train future staff members who may not currently know the routine. Ensuring consistency is a critical component for ensuring optimum efficiency.

6.2 BCapM 1.0: Business Capacity ManagementID Task Name and Description Role RACIBCapM 1.1

Review existing Capacity Plan BCapM Manager BCapM Analyst

RC

BCapM 1.2

Review approved RFC(s) BCapM Manager BCapM Analyst

RC

BCapM 1.3

Analyze Business Information BCapM Manager BCapM Analyst

RC



ID Task Name and Description Role RACIBCapM 1.4

Analyze Service Performance Issues BCapM Manager BCapM Analyst

RC

BCapM 1.5

Analyze Service Information BCapM Manager BCapM Analyst

RC

BCapM 1.6

Analyze Financial Information BCapM Manager BCapM Analyst

RC

BCapM 1.7

Analyze Performance Information BCapM Manager BCapM Analyst

RC

BCapM 1.8

Analyze CMIS Information BCapM Manager BCapM Analyst

RC

BCapM 1.9

Analyze Patterns of Business Activity BCapM Manager BCapM Analyst

RC

BCapM 1.10

Forecast Capacity demands BCapM Manager BCapM Analyst

RC

BCapM 1.11

Store Capacity Plan and supporting material in CMIS

BCapM Manager BCapM Analyst

RC

6.3 BCapM 2.0 Negotiate Service Level Agreements and Implement ChangesID Task Name and Description Role RACIBCapM 2.1

Review Capacity Plan review results BCapM Manager BCapM Analyst Operations Manager

RCC

BCapM 2.2

Review SLA Performance BCapM Manager BCapM Analyst Operations Manager

RCC

BCapM 2.3

Conduct impact analysis of recommended SLA changes

BCapM Manager BCapM Analyst Operations Manager

RCC

BCapM 2.4

Review recommendations for SLA changes with SLM

BCapM Manager BCapM Analyst Operations Manager

RCC

BCapM 2.5

Store artifacts in the CMIS as necessary BCapM Manager BCapM Analyst

RC

6.4 BCapM 3.0 Review Component PerformanceID Task Name and Description Role RACIBCapM 3.1

Review Capacity Plan Review results BCapM Manager BCapM Analyst

RC

BCapM 3.2

Review SLAs BCapM Manager BCapM Analyst

RC

BCapM 3.3

Review component performance, capacity information and reports


RC



ID Task Name and Description Role RACIBCapM 3.4

Develop recommendations for changes to components


RC

BCapM 3.5

Store artifacts in the CMIS as necessary BCapM Manager BCapM Analyst

RC

6.5 BCapM 4.0 Develop the Capacity PlanID Task Name and Description Role RACIBCapM 4.1

Produce or revise the capacity plan BCapM Manager BCapM Analysts

RC

6.6 BCapM 5.0 Review the Capacity PlanID Task Name and Description Role RACIBCapM 5.1

Review the Capacity Plan BCapM Manager Operations Manager Business Stakeholders

RCC

BCapM 5.2

Approve the Capacity Plan Higher Authority A

BCapM 5.3

Baseline the Capacity Plan in the CMIS BCapM Manager R

6.7 BCapM 6.0 Review the SLA and Service CatalogID Task Name and Description Role RACIBCapM 6.1

Review SLAs BCapM Manager BCapM Analysts Operations Manager Business Stakeholders

RCCC

BCapM 6.2

Record review results BCapM Manager R

BCapM 6.3

Store review artifacts in the CMIS as necessary

BCapM Manager BCapM Analysts

RC

7. Appendix7.1 Acronyms

Acronyms DefinitionBCapM Business Capacity ManagementCI Configuration ItemCMMI Capability Maturity Model IntegrationCMIS Capacity Management Information System



Acronyms DefinitionES Enterprise ServicesIPM Integrated Process ManagementIRM Internal Revenue ManualIRS Internal Revenue ServiceIT Information TechnologyITIL Information Technology Infrastructure Library

ITSM Information Technology ServiceManagement

PAL Process Asset LibraryPBA Patterns of Business ActivityPD Process DescriptionPMI Project Management InstituteRACI Responsible, Accountable, Consulted, and InformedRFC Request for ChangeSLA Service Level AgreementSLM Service Level ManagementSLR Service Level Requirements

7.2 Glossary

Term Definition

BusinessCapacityManagement

A strategic capacity management process done when decisions to expand or contract the infrastructure are made due to expected changes in demand by the business (addition of new applications, new infrastructure, etc.).

RACI

The RACI model is based on the principle that people act in one of four ways when executing a task. It accounts for the fact that more than one role may be active in performing a specific task while clearly defining specific responsibilities for that role. While many roles may be involved in a task only one is Accountable for the results. The actions are: R Responsible for the action (may do the task) A Accountable for the action (including approval) C Required to be Consulted on the action I Required to be Informed of the action If a task does not have an Accountable role indicated then the Responsible role is assumed to be accountable for the task.



Term Definition

Service LevelAgreement

A service-level agreement is part of a service contract where the level of service is formally defined. In practice, the contracted delivery time (of the service) or performance.

Service LevelManagement

A set of practices for IT service management(ITSM) that focuses on aligning IT services with the needs of business.

Service LevelRequirements

A statement from a customer to a service provider describing their service expectations. It includes the requirements of the customer from the service provider.
