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Service Level Management

All course material is copyright. It is forbidden to use this material other than for study purposes. Display for internal use only. Approval for commercial purposes will be granted under contractual agreementAll course material is copyright. It is forbidden to use this material other than for study purposes. Display for internal use only. Approval for commercial purposes will be granted under contractual agreement

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Introductions

Your presenter

<<YOUR DETAILS>>

You

Your role(s)

Your expectations

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Program

09.00Start 10.30Morning tea / coffee 12.30Lunch 15.00 Afternoon tea / coffee 17.00End

Note.. There is enough information here to conduct a full day workshop on Service Level Management. If you wish to do a short presentation keep only slides; 1, 7-9, 12-15, 17-21, 33, 35, 38, 60-64

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Day Objectives

Understanding of the Service Level Management process and its activities.

Good understanding of the relationships with other IT Service Management processes.

Ability to execute the Service Level Management activities.

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Overview Service ManagementOverview Service Management

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Why Service Management?

Business more and more dependent on IT Complexity of technology increases Customers demand more Environment becomes more competitive Focus on controlling costs of IT Low customer satisfaction ...

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Service Management= The Objective Tree =

QualityFlexibilityCost management

How

/ What ?

ORGANIZATIONORGANIZATION

BUSINESS PROCESSESBUSINESS PROCESSES

IT SERVICE PROVISIONIT SERVICE PROVISION

SERVICE MANAGEMENTSERVICE MANAGEMENT

Why!

effective

efficient

organizationorganization

effective

efficient

IT service provisionIT service provision

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The Functionally Oriented Organization

the lines decidethe lines decide

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The Process Driven Organization

the processes decidethe processes decideGOALGOAL

FEEDBACKFEEDBACK

ACTIVITIESACTIVITIES RESULTRESULT

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IT Service Management (ITSM) Focus

OrganizationOrganization

ProcessProcess

PeoplePeople

TechnologyTechnology

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Questions?

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ITIL Service Management


FinancialManagement

for IT services

Capacity Management

IT Service

ContinuityManagement

IncidentManagement Problem Management

Change Management

Configuration Management

Release Management

ITInfrastructure

ITInfrastructure

security

Service Desk

Availability Management

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Service Level ManagementService Level Management

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is the process of maintaining and gradually improving business aligned IT service quality,

through a constant cycle of agreeing, monitoring, reporting and reviewing IT service achievements

and through instigating actions to eradicate unacceptable levels of service

Service Level Management GoalService Level Management Goal

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Sup

plie

rsS

uppl

iers

Cus

tom

ers

Cus

tom

ers

Service Level ManagementService Level ManagementUnderpinning

ContractsService Level

Agreement

Change ManagementChange Management Problem ManagementProblem Management

Configuration ManagementConfiguration Management

Release ManagementRelease Management

Security ManagementSecurity Management

Capacity ManagementCapacity Management

It Service Continuity ManagementIt Service Continuity Management

Availability ManagementAvailability Management

Financial ManagementFinancial Management

Core Processes

(apps, hardware, tech support, networks)

Service DeskService Desk

(Incident (Incident

Management)Management)

SLM, The Customer, The Suppliers

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Service Level Management and IT

System System Management Management DevelopmentDevelopment

System System Management Management DevelopmentDevelopment

SSUUPPPPLLIIEERRSS

SSUUPPPPLLIIEERRSS

SolutionSolutionIntegrationIntegrationSolutionSolution

IntegrationIntegration

Operations Operations andand

SupportSupport

Operations Operations andand

SupportSupport

Change ManagementChange ManagementChange ManagementChange Management

Service Level ManagementService Level ManagementService Level ManagementService Level Management

SPA

SLA

Users(Business)

Account ManagementAccount ManagementAccount ManagementAccount Management

Service PlanningService PlanningService PlanningService Planning

Align SystemManagement Strategy

AnalyzeBusinessNeeds

DesignSolution

Build / Buy /IntegrateSolution

Implement andRoll-outSolution

Operate / Run Solutions

Support / MaintainSolutions

Scope of IT Service Offerings

PPAARRTTNNEERRSS

PPAARRTTNNEERRSS

UC

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Terminology within SLM

Service Level Requirements, Service Catalogue, Service Level Agreement, Service Level Reporting and Service Improvement program.

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Terminology (I)

SLR = Service Level Requirements– detailed recording of the customers’ needs– blueprint for defining, adapting and revising of services

Service Spec Sheets = Service Specifications– connection between functionality (externally / customer focussed)

and technical (internally / IT organization focussed)

Service Catalogue– detailed survey of available services– detailed survey of available service levels– derived from the Service Spec Sheets, but written in

“customer terminology”

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Terminology (II)

SLA = Service Level Agreement– the written agreement between the provider and user of the IT

services

Service Level Achievements– the Service Levels that have to be realised– measuring values indicating whether the SLA has been met

SIP = Service Improvement program / Plan– actions, phases and delivery dates for improvement of a

service– Part of the Service Level Agreement

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Terminology (III)

SPA = Service Provision Agreement OLA = Operational Level Agreement– a written agreement with another internal IT

department: availability of the network availability of print servers business hours of The Service Desk …

UC = Underpinning Contract– a written agreement with an external IT supplier:

e.g. Telecomms provider / desktop support agent outsourced hardware maintenance

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SLM Activities

Identification– analysing current services– recording the current service provision in a Service

Catalogue.

Definition– matching & customizing with the customer of the right service

provision against the right costs: Service Catalogue demands of the customer (Service Level Requirements).

Agreement– defining and signing of an SLA.

substantiate the SLA with SPAs / OLAs and Underpinning Contracts

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Activities: match & customize (I)

Match

&

Customize

Match

&

Customize

SLASLA

steersteer

why how

guardingguarding

reporting reporting

Input

from all

processes

Input

from all

processes

CustomerCustomer

DemandDemand Service Catalogue

Price List

Service Catalogue

Price List


Input

from

3rd parties

Input

from

3rd parties

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Activities: match & customize (II)

why

guarding

reporting

Demand study by the customer:SLR (Service Level Requirements)

blue print for SLAEffectiveness & efficiency:

use of IT servicesimportance of IT services

Budget study:What are the costs if we do not choose a

particular service? (Can we afford it?)

budgeting

CustomerCustomer

DemandDemandsteer

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Activities: match & customize (III)

steer

why

guarding

reporting

steer:influence on IT service provisionchoices can be made

whyEffectiveness:

the added value of IT service provision

guardingreportingthe course of IT service provision

CustomerCustomer

DemandDemand

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Activities: match & customize (IV)

steer

how

guarding

reporting

Service Catalogue• Inventory of the current service

provision: (Service Spec Sheets)

• What are the characteristics of the Infrastructure?

• What customers and customer profiles?

• SPA / OLA: what agreements exist with internal IT parties?

• Underpinning ContractUnderpinning Contract: what agreements exist with external IT parties?

Service Catalogue

Price List

Service Catalogue

Price List


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Activities: match & customize (V)

steer

how

guarding

reporting

steeroffer choicesdefining the course of IT

service provision

howefficiencysafeguard the processesSIP – SQP – SPA / OLA –

Underpinning Contract

guardingthe course of IT service

provision

Service Catalogue

Price List

Service Catalogue

Price List


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Activities: match & customize (VI)

Match

&

Customize

Match

&

Customize

SLASLA

steersteer

why how

Match:• Demand versus possibilities

Customize = customer decides:• balance between demand and

supply• balance between budget and

price

SLA• written agreement

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Activities: match & customize (VII)

Match&

Customize

Match&

Customize

SLASLA

steersteer

why how

guardingguarding

reporting reporting

Input from all

processes

Input from all

processes

CustomerCustomer

DemandDemand Service CataloguePrice List

Service CataloguePrice List


Input from

3rd parties

Input from

3rd parties

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Activities: SLM Flowchart

IDENTIFY demand

DEFINEinternal & external

CONTRACT - negotiate - draft - adjust - conclude

MONITORguarding

Service Levels

REPORT

EVALUATE

Service LevelRequirements

Service Spec Sheets

Service Quality Plan Service

Catalogue

Service LevelAgreement

Operational LevelAgreement

UnderpinningContract

Service LevelAchievement

Service Level Reports

ServiceImprovement

Plan

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33

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55

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PDC

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Theory and Principles

The Challenge

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SLM Activities

Demand for

Service(s)

SLA proposal

Service Level

Agreement

SLA reports

Service Catalogue

SLA changes

SLA Differ-

ences

Guarding/ reporting

Establishing SLA

Translate wishes

Demand for new

Service(s)

Service development

Demands wishes

Planning Service

Measure- ments

Possi- bilities

Improvement proposals

Effects realisticness SLA-

proposal Reachability

new Service(s)

IT service

Customer

Regular meeting

SLA-

negotiations Service

evaluation

IT Service deliverer

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Service Level Agreements

Types Elements of SLA Key steps

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Service Elements in SLA’s

To be effective, a Service Level Agreement must incorporate two sets of elements: service elements and management elements.

The service elements clarify services by communicating such things as:

– the services provided (and perhaps certain services not provided, if customers might reasonably assume the availability of such services)

– conditions of service availability– service standards, such as the timeframes within which services

will be provided– the responsibilities of both parties– cost vs. service tradeoffs– escalation procedures

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Management Elements in SLA’s

The management elements focus on such things as:

– How service effectiveness will be tracked – How information about service effectiveness will be

reported and addressed– How service-related disagreements will be resolved– How the parties will review and revise the agreement – Pricing and charging– Service Levels

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types of services: – functions, applications, important transactions, etc.

business hours of The Service Desk availability of IT service provision charging of IT service provision change procedure(s) contingency / continuity procedure(s) expected increase / decrease of IT service provision restrictions in IT service provision training level of customers / users reporting

Service Level Management= Contents of the SLA =Service Level Management= Contents of the SLA =

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Service Catalogue: Points of Attention (I)

Service Catalogue not up-to-date:– Publishes a service that isn’t provided anymore– A new service isn’t in the catalogue yet

Service Catalogue is incorrect– Service descriptions do not represent services delivered– Responsibilities not clearly defined– Customer isn’t able to clarify needs – Catalogue doesn’t say what the limitations are of large or

small quantities.

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Service Catalogue: Points of Attention (II)

Customer wants to have non-standard, non-tested products (looks cheaper)

Quality of Service Catalogue – No version control with the Service Catalogue– Tactical agreements are not translated to the operational

level.– Scope and scale isn’t clear (scope/scale).

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Questions?

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Key Steps in Establishing a Service Level Agreement

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Step 1:

Gather background informationBoth the customer and the service provider need to start by gathering information so that each has a solid basis from which to negotiate.

Before eliciting commitments from their service provider, customers should carefully review and clarify their service needs and priorities.

Before making any commitments to customers, service providers should examine their service history and determine the level of service they can realistically provide. In addition, service providers should assess customer satisfaction to clearly understand customer concerns and establish a baseline for assessing service improvements.

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Ensure agreement about the agreementThe two parties to an agreement often have different views about the role of the SLA and what it can realistically accomplish. Both sets of views may be valid, yet sufficiently different as to cause a breakdown in SLA negotiations.

Before any SLA development work is done, it is advisable for the two parties to hold an open discussion to ensure that they have a basic level of agreement about the agreement. If they don't – and until they do – any further SLA effort may prove

futile.

This is where a strategic alignment workshop proves its worth.

Step 2:

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Step 3

Establish ground rules for working togetherIn this critical, but often overlooked, step the SLA developers (those assigned to negotiate the SLA) focus not on the agreement, but on the process by which they will work together to create the agreement.

Issues to be discussed include the division of responsibility for development tasks, scheduling issues and constraints, and concerns regarding potential impediments.

In addition, the developers can benefit greatly by discussing their communication styles and preferences. By identifying similarities and differences right up front, they will be in an excellent position to minimize conflict.

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Step 4:

Develop the agreementThis is one step in the process of establishing an SLA; it's not the entire process. In this step, the two parties create a structure for the SLA document and then discuss, debate, negotiate and, over time, reach agreement about the contents of the agreement.

In doing so, they may each solicit assistance, input or feedback from others in their own organization.

The duration of this step typically varies from several days to several months, depending on the developers' previous experience with SLAs, their familiarity with the key elements of an SLA, the demands of their other responsibilities, and the state of the relationship between the two organizations.

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Step 5:

Generate buy-inThe result of Step 4 is a draft of an agreement, not a completed agreement.

Before implementing an SLA, all members of both parties who have a stake in, or responsibility for, the success of the agreement should have an opportunity to review the draft, raise questions and offer suggestions.

Using this feedback, the developers can conduct further negotiations, gain the necessary approvals and finalise the document. In addition to generating buy-in, this step improves the quality of the final document.

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Step 6:

Complete pre-implementation tasksThis step entails the identification and completion of tasks that must precede SLA implementation.

Such tasks might include, developing tracking mechanisms, establishing reporting processes, developing procedures for carrying out stated responsibilities, communicating expectations to staff, providing pertinent training.

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Step 7:

Implement and manage the agreement– An agreement that is not managed is likely to fail upon

implementation.

Management responsibilities– Point of contact for problems– Customer relationship management– Service reviews

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Questions?

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Essential elements for SLM (I)

Subjects and Languages

Applicable Guidelines

SLA Structure

Don’t be too ambitious Consult with the user Use ITSM / ITIL format Examine supporting contracts Start with a pilot SLA Interface to a pricing system Part of SIP (Service Improvement Program)

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Essential Elements for SLM (II)

SLAs should be compact documents; a description of the agreements between the customer and the service provider shouldn’t take more than is required.

SLAs should give the IT service provider the freedom to alter the content of their services; only the scope and boundaries should be pinned down in an SLA. (The customer and IT service provider agree upon the outcome of the services, not the content)

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Service Improvement program (I)

Service improvement program: Ongoing tuning of KPI’s, Short time goal level … on maturity scale (depends on

organization). Can focus on:

– User training– System testing – documentation

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ServiceLevel Scan

SLA andServiceCatalogue

Gaps/IssuesGaps/Issues

GAPGAPAnalysesAnalyses

Actions & Actions & ConsequencesConsequences

Benefits andBenefits andOpportunitiesOpportunities

Based uponcurrent SLA,procedures,service catalogs

SIP

Service Improvement program (II)

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Capturing Data for SLA’s

Service Level Reporting

Metrics

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Service Level Reporting

Audience Types of Reports Frequency of Reports

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Metrics

Availability Performance Reliability Recoverability

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Templates

Internal SLA template Sample Customer Satisfaction Survey Sample Reporting Schedule Sample Service Catalogue Selected Vendors

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Structure: Service Level Reporting

Structure SLA-reports 1. Introduction

1.1 Distribution list1.2 Identification of the SLA1.3 Customer1.4 Report period1.5 Important conclusions

2. The actual report

2.1 Metrics from the SLA per quality attribute2.2 Achieved values (measurements current report period)2.3 Norm- measurements and indications of previous periods2.4 Tariffs

Annex (-es) with detailed measurements (optional)

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Structure: Service Level Agreement

Structure: Service Level Agreement 1. Parties, time frame, signature for agreement2. Definition of IT services

2.1 scope domain/configuration2.2 Overview of services

2.3 Overview of service usage2.4 Tariff

3. Service agreements

3.1 Service hours3.2 Incidents, queries and changes3.3 Service levels3.4 bounderies on growth and usage3.5 Reports, meetings and invoicing

4. SLA maintenance

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Structure of Service description- Objective- Scope domain/configuration- Service components- Usage / tariffs- Service agreements- Service Quality- Boundaries to usage and growth

Structure Service Catalogue 1. Introduction

1.1 Objective of the Service Catalogue1.2 Scope and unity1.3 Maintainance of version history

2. List and unity of services2.1 Positioning of the IT service delivery2.2 List of services2.3 Unity between the services

3. Definition of the services

3.1 General3.2 Definitions3.3 Service ‘A’3.4 Service ‘B’3.5 …

How to set up a Service Catalogue

4. General agreements around service delivery4.1 Introduction / general comments4.2 Reports4.3 Meetings4.4 Invoicing

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Questions?

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SLM Hints and Tips (I)

ServiceService Level Agreement Level Agreement Formal contractual arrangement specifying the required service levels and the

expected quality of service to be delivered Mutual responsibilities of the customer and provider

The process of Service The process of Service Level Level ManagementManagement Monitor and manage service levels Review agreements with internal and external service suppliers

The level of service The level of service Captured and base-lined, at least annually

The service improvement program should be monitored regularly and appropriate action taken to correct any under-achievements

The foundations for service management must be put in place very early.

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= Costs, Points of Attention, Advantages =

Costs– P ersonnel

writing and managing SLM documents

– A ccommodation also for physical storage of SLM documents, …

– S oftware writing SLM documents,

– H ardware Service Catalogue, SLM reports, …

– E ducation ITIL Master Class / ITSM Practitioner, communication training, …

– P rocedures designing & managing Service Level Management

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Points of Attention– change in culture: danger of bypassing of SLAs.

– expressing the customer’s demand in measurable values and

consequent costs is difficult.

– expectations are too high

– expectations and/or the agreements are too ambitious

– management commitment

– follow the 5 stages of management!(do not immediately start writing the SLA, but first take care of a thorough

inventory of demand, a sound design, a SIP, …)

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Advantages– insight into IT service provision

IT services become measurable

optimal balance possible of quality and the consequent

costs

possible savings become clear

– increase in productivity: good working morale of IT personnel

positive attitude of the customer towards IT personnel

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Questions?

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Service Level Management = Functionally Oriented vs. Process Driven =

mainframemainframe networknetwork pc-lanpc-lan

Service Level ManagementService Level ManagementThe Art of

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Service Level Management:Q & A

??is the process of maintaining and gradually improving

business aligned IT service quality,

through a constant cycle of agreeing, monitoring, reporting

and reviewing IT service achievements

and through instigating actions

to eradicate unacceptable levels of service

Service Level ManagementService Level Management

Download - YOUR LOGO HERE Slide Master View © (reproduced with permission) Service Level Management All course material

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