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ITIL®FoundationITIL4Edition
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11.11.21.3
1.3.11.3.2
22.1
2.1.12.2
2.2.12.2.22.2.3
2.32.3.12.3.2
2.42.4.1
2.52.5.12.5.22.5.32.5.4
2.6
33.13.23.33.4
3.4.1
Contents
WelcometoITIL4
Aboutthispublication
IntroductionITservicemanagementinthemodernworldAboutITIL4ThestructureandbenefitsoftheITIL4framework
TheITILSVSThefourdimensionsmodel
KeyconceptsofservicemanagementValueandvalueco-creation
Valueco-creationOrganizations,serviceproviders,serviceconsumers,andotherstakeholders
ServiceprovidersServiceconsumersOtherstakeholders
ProductsandservicesConfiguringresourcesforvaluecreationServiceofferings
ServicerelationshipsTheservicerelationshipmodel
Value:outcomes,costs,andrisksOutcomesCostsRisksUtilityandwarranty
Summary
ThefourdimensionsofservicemanagementOrganizationsandpeopleInformationandtechnologyPartnersandsuppliersValuestreamsandprocesses
Valuestreamsforservicemanagement
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3.4.23.53.6
44.14.24.3
4.3.14.3.24.3.34.3.44.3.54.3.64.3.74.3.8
4.44.4.14.4.2
4.54.5.14.5.24.5.34.5.44.5.54.5.6
4.64.6.14.6.2
4.74.8
55.1
5.1.15.1.25.1.35.1.45.1.55.1.6
ProcessesExternalfactorsSummary
TheITILservicevaluesystemServicevaluesystemoverviewOpportunity,demand,andvalueTheITILguidingprinciples
FocusonvalueStartwhereyouareProgressiterativelywithfeedbackCollaborateandpromotevisibilityThinkandworkholisticallyKeepitsimpleandpracticalOptimizeandautomatePrincipleinteraction
GovernanceGoverningbodiesandgovernanceGovernanceintheSVS
ServicevaluechainPlanImproveEngageDesignandtransitionObtain/buildDeliverandsupport
ContinualimprovementStepsofthecontinualimprovementmodelContinualimprovementandtheguidingprinciples
PracticesSummary
ITILmanagementpracticesGeneralmanagementpractices
ArchitecturemanagementContinualimprovementInformationsecuritymanagementKnowledgemanagementMeasurementandreportingOrganizationalchangemanagement
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5.1.75.1.85.1.95.1.105.1.115.1.125.1.135.1.14
5.25.2.15.2.25.2.35.2.45.2.55.2.65.2.75.2.85.2.95.2.105.2.115.2.125.2.135.2.145.2.155.2.165.2.17
5.35.3.15.3.25.3.3
PortfoliomanagementProjectmanagementRelationshipmanagementRiskmanagementServicefinancialmanagementStrategymanagementSuppliermanagementWorkforceandtalentmanagement
ServicemanagementpracticesAvailabilitymanagementBusinessanalysisCapacityandperformancemanagementChangecontrolIncidentmanagementITassetmanagementMonitoringandeventmanagementProblemmanagementReleasemanagementServicecataloguemanagementServiceconfigurationmanagementServicecontinuitymanagementServicedesignServicedeskServicelevelmanagementServicerequestmanagementServicevalidationandtesting
TechnicalmanagementpracticesDeploymentmanagementInfrastructureandplatformmanagementSoftwaredevelopmentandmanagement
Endnote:TheITILstory,oneyearon
AppendixA:Examplesofvaluestreams
Furtherresearch
Glossary
Acknowledgements
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WelcometoITIL4
AtthisnewstageinthedevelopmentoftheITindustry,AXELOSisdelightedtopresentITIL4,thelateststepintheevolutionofITbestpractice.Bybuildingonourexperienceandbringingfreshandforward-lookingthinkingtothemarketplace,ITIL4equipsyourbusinesstodealwiththechallengescurrentlyfacedbytheindustry.
TheadoptionofITILasthemostwidelyusedguidanceintheworldonITservicemanagement(ITSM)willcontinuewithITIL4.Itensurescontinuitywithexistingwaysofworking(whereservicemanagementisalreadysuccessful)byintegratingmodernandemergingpracticeswithestablishedandprovenknow-how.ITIL4alsoprovidesguidanceonthesenewmethodstohelpindividualsandorganizationstoseetheirbenefitsandmovetowardsusingthemwithconfidence,focus,andminimaldisruption.
ITIL4’sholisticapproachraisestheprofileofservicemanagementinorganizationsandindustries,settingitwithinamorestrategiccontext.Itsfocustendstobeonend-to-endproductandservicemanagement,fromdemandtovalue.
ITIL4istheresultofagreatamountofglobalresearchanddevelopmentworkacrosstheITandservicemanagementindustries;thisworkhasinvolvedactivepractitioners,trainers,consultants,vendors,technicians,andbusinesscustomers.ThearchitectteamhascollaboratedwiththewiderstakeholdersandusersofITILtoensurethatthecontentmeetsthemodernrequirementsofcontinuity,innovation,flexibility,andvalue.
ITILtrainingprovidesindividualswithastructuredapproachfordevelopingtheircompetenciesinthecurrentandfutureworkplace.Theaccompanyingguidancealsohelpsorganizationstotakeadvantageofthenewandupcomingtechnologies,succeedinmakingtheirdigitaltransformations,andcreatevalueasneededforthemselvesandtheircustomers.
ITILFoundationisthebeginningofyourITIL4journey.Itwillopenyourmindtothewider,moreadvancedguidanceprovidedintheotherITILpublicationsandtrainingthatwillsupportyourgrowthanddevelopment.
WelcometothenewgenerationofITbestpractice!
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MarkBashamCEOAXELOSGlobalBestPractice
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Aboutthispublication
ITILFoundationisthefirstpublicationofITIL4,thelatestevolutionofthemostwidelyadoptedguidanceforITSM.ItsaudiencerangesfromITandbusinessstudentstakingtheirfirststepsinservicemanagementtoseasonedprofessionalsfamiliarwithearlierversionsofITILandothersourcesofindustrybestpractice.
ITIL4Foundationwill:
providereaderswithanunderstandingoftheITIL4servicemanagementframeworkandhowithasevolvedtoadoptmoderntechnologiesandwaysofworkingexplaintheconceptsoftheservicemanagementframeworktosupportcandidatesstudyingfortheITIL4Foundationexamactasareferenceguidethatpractitionerscanuseintheirwork,furtherstudies,andprofessionaldevelopment.
Wehopeyouwillfindituseful.
AbouttheITILstory
Theguidanceprovidedinthispublicationcanbeadoptedandadaptedforalltypesoforganizationandservice.ToshowhowtheconceptsofITILcanbepracticallyappliedtoanorganization’sactivities,ITILFoundationfollowstheexploitsofafictionalcompanyonitsITILjourney.
Thiscompany,AxleCarHire,isundergoingatransformationtomodernizeitsservicesandimproveitscustomersatisfactionandretentionlevels,andisusingITILtodothis.Ineachchapterofthetext,theemployeesofAxlewilldescribehowthecompanyisimprovingitsservices,andexplainhowtheyareusingITILbestpracticetodothis.
ITILstorylinesectionsappearthroughoutthetext,separatedbyadistinctborder.
AxleCarHire
AxleCarHireisaglobalcompany,withitsheadquartersbasedinSeattle.Axlewasformed10yearsago,andcurrentlyemploysapproximately400staffacrossEurope,theUS,andAsia-Pacific.
Initially,thecompanyexperiencedstronggrowthandconsistentlyhighcustomersatisfactionratings.Forthefirstsixyears,repeatbusinessaccountedforaround30
10
percentofallbookings.Shareholderscouldexpecthandsomequarterlydividends.However,overthepastfouryears,thecompanyhasexperiencedadownturn.Customersatisfactionratingshaveconsistentlydeclinedandrepeatbookingsarerare.Competitorsareofferingnewandinnovativeoptionstotraditionalvehiclehire.Car-pooling,ride-share,anddriverlesscarsarebigdraws.Customershavealsocometoexpectonlineandappinterfacesasstandardforthecompany’sservices.
Inthisevolvingmarket,AxleCarHirefacesanuncertainfuture.Theboardiskeentoimprovecustomersatisfactionlevels.Theywanttoattractandretaincustomers,andimprovethecompany’sbottomline.They’veappointedanewCIO,Henri.Henriwaschosenforhisexperienceindigitalizedservicesandhistrackrecordinsuccessful,large-scaleITtransformations.Heunderstandstheimpactofdigitalserviceofferings,notonlyforcustomersatisfactionlevels,butalsoforemployeeretentionrates.
Henri’sstrongbackgroundinITILandITSMmeansthathevaluesITILcertification,andhishiringpolicyreflectsthis.HavingworkedwithDesignThinking,DevOps,andAgilemethodologies,hebelievessustainablebusinessrequiresablendedapproachtoITSM.
Henriiskeentoseehowhisteamcanredefinethecar-hireexperienceandensurethatAxleCarHireisthefirstchoicefornewandexistingcustomers.
MeettheAxleemployees
HerearefourkeyemployeesofAxleCarHire:
HenriIsthenewCIOofAxleCarHire.Heisasuccessfulbusinessexecutivewho’spreparedtoshakethingsup.HebelievesinanintegratedapproachtoITSM.
SuIstheAxleCarHireproductmanagerfortravelexperience,andhasworkedforAxleforthepastfiveyears.Suissmart,meticulous,andpassionateabouttheenvironment.
RadhikaIstheAxleCarHireITbusinessanalyst,anditisherjobtounderstandtheuserrequirementsofAxleCarHirestaffandcustomers.Sheisinquisitiveandenergetic,andstrivestomaintainapositiverelationshipwithallhercustomers,bothinternalandexternal.Radhikaworksmostlyondiscoveryandplanningactivities,ratherthaninIToperations.Sheasksalotofquestionsandisgreatatspottingpatternsandtrends.
MarcoIstheAxleCarHireITdeliverymanager.Heisprocess-drivenandcontinuallyreferencestheITILframeworktohelphimmanagepositiveservicerelationships.However,Marcohashadlittleexposuretoablendedorcollaborativeapproachtoservicemanagement.
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CHAPTER1
INTRODUCTION
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1Introduction
1.1ITservicemanagementinthemodernworld
AccordingtotheWorldTradeOrganization,1servicescomprisethelargestandmostdynamiccomponentofbothdevelopedanddevelopingeconomies.Servicesarethemainwaythatorganizationscreatevalueforthemselvesandtheircustomers.AlmostallservicestodayareIT-enabled,whichmeansthereistremendousbenefitfororganizationsincreating,expanding,andimprovingtheirITservicemanagementcapability.
Technologyisadvancingfastertodaythaneverbefore.Developmentssuchascloudcomputing,infrastructureasaservice(IaaS),machinelearning,andblockchainhaveopenedfreshopportunitiesforvaluecreation,andledtoITbecominganimportantbusinessdriverandsourceofcompetitiveadvantage.Inturn,thispositionsITservicemanagementasakeystrategiccapability.
Toensurethattheyremainrelevantandsuccessful,manyorganizationsareembarkingonmajortransformationalprogrammestoexploittheseopportunities.Whilethesetransformationsareoftenreferredtoas‘digital’,theyareaboutmorethantechnology.Theyareanevolutioninthewayorganizationswork,sothattheycanflourishinthefaceofsignificantandongoingchange.Organizationsmustbalancetheneedforstabilityandpredictabilitywiththerisingneedforoperationalagilityandincreasedvelocity.Informationandtechnologyarebecomingmorethoroughlyintegratedwithotherorganizationalcapabilities,silosarebreakingdown,andcross-functionalteamsarebeingutilizedmorewidely.Servicemanagementischangingtoaddressandsupportthisorganizationalshiftandensureopportunitiesfromnewtechnologies,andnewwaysofworking,aremaximized.
Servicemanagementisevolving,andsoisITIL,themostwidelyadoptedguidanceonITservicemanagement(ITSM)intheworld.
1.2AboutITIL4
ITILhasledtheITSMindustrywithguidance,training,andcertificationprogrammesformorethan30years.ITIL4bringsITILuptodatebyre-shapingmuchoftheestablishedITSMpracticesinthewidercontextofcustomerexperience,valuestreams,anddigitaltransformation,aswellasembracingnewwaysofworking,suchasLean,Agile,andDevOps.
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•••••
ITIL4providestheguidanceorganizationsneedtoaddressnewservicemanagementchallengesandutilizethepotentialofmoderntechnology.Itisdesignedtoensureaflexible,coordinatedandintegratedsystemfortheeffectivegovernanceandmanagementofIT-enabledservices.
1.3ThestructureandbenefitsoftheITIL4framework
ThekeycomponentsoftheITIL4frameworkaretheITILservicevaluesystem(SVS)andthefourdimensionsmodel.
1.3.1 TheITILSVS
TheITILSVSrepresentshowthevariouscomponentsandactivitiesoftheorganizationworktogethertofacilitatevaluecreationthroughIT-enabledservices.Thesecanbecombinedinaflexibleway,whichrequiresintegrationandcoordinationtokeeptheorganizationconsistent.TheITILSVSfacilitatesthisintegrationandcoordinationandprovidesastrong,unified,value-focuseddirectionfortheorganization.ThestructureoftheITILSVSisshowninFigure1.1,andisrepeatedinChapter4,whereitisdescribedinmoredetail.
ThecorecomponentsoftheITILSVSare:
theITILservicevaluechaintheITILpracticestheITILguidingprinciplesgovernancecontinualimprovement.
TheITILservicevaluechainprovidesanoperatingmodelforthecreation,delivery,andcontinualimprovementofservices.Itisaflexiblemodelthatdefinessixkeyactivitiesthatcanbecombinedinmanyways,formingmultiplevaluestreams.Theservicevaluechainisflexibleenoughtobeadaptedtomultipleapproaches,includingDevOpsandcentralizedIT,toaddresstheneedformultimodalservicemanagement.Theadaptabilityofthevaluechainenablesorganizationstoreacttochangingdemandsfromtheirstakeholdersinthemosteffectiveandefficientways.
TheflexibilityoftheservicevaluechainisfurtherenhancedbytheITILpractices.EachITILpracticesupportsmultipleservicevaluechainactivities,providingacomprehensiveandversatiletoolsetforITSMpractitioners.
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••••
Figure1.1Theservicevaluesystem
TheITILguidingprinciplescanbeusedtoguideanorganization’sdecisionsandactionsandensureasharedunderstandingandcommonapproachtoservicemanagementacrosstheorganization.TheITILguidingprinciplescreatethefoundationforanorganization’scultureandbehaviourfromstrategicdecision-makingtoday-to-dayoperations.
TheITILSVSalsoincludesgovernanceactivitiesthatenableorganizationstocontinuallyaligntheiroperationswiththestrategicdirectionsetbythegoverningbody.
EverycomponentoftheITILSVSissupportedbycontinualimprovement.ITILprovidesorganizationswithasimpleandpracticalimprovementmodeltomaintaintheirresilienceandagilityinaconstantlychangingenvironment.
1.3.2 Thefourdimensionsmodel
Toensureaholisticapproachtoservicemanagement,ITIL4outlinesfourdimensionsofservicemanagement,fromwhicheachcomponentoftheSVSshouldbeconsidered.Thefourdimensionsare:
organizationsandpeopleinformationandtechnologypartnersandsuppliersvaluestreamsandprocesses.
Bygivingeachofthefourdimensionsanappropriateamountoffocus,anorganizationensuresitsSVSremainsbalancedandeffective.ThefourdimensionsaredescribedinChapter3.
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TheITILstory:TheCIO’svisionforAxle
Henri:Thesedays,thepaceofindustrychangeisrapid,withtheterm‘FourthIndustrialRevolution’nowwidelyused.CompaniessuchasAxlearecompetingwithdisruptorsthatincludedriverlesscarsandcarshare.
ServiceexpectationshavechangedsinceAxlewascreated10yearsago.Customerswantimmediateaccesstoservicesviaappsandonlineservices.Axle’sbookingappisoutofdate,andourtechnologyisn’tkeepingpacewithchangesinourserviceofferings.
MyvisionforAxleisthatwebecomethemostrecognizedcar-hirebrandintheworld.We’llcontinuetoofferoutstandingcustomerservicewhilemaintainingcompetitivecar-hirerates.Afterall,Axleisnowaboutmorethanjusthiringavehicle.Wemustfocusonourcustomers’wholetravelexperience.
Footnote:
1https://www.wto.org/english/tratop_e/serv_e/serv_e.htm
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CHAPTER2
KEYCONCEPTSOFSERVICEMANAGEMENT
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2KeyconceptsofservicemanagementAsharedunderstandingofthekeyconceptsandterminologyofITILbyorganizationsandindividualsiscriticaltotheeffectiveuseofthisguidancetoaddressreal-worldservicemanagementchallenges.Tothatend,thischapterexplainssomeofthemostimportantconceptsofservicemanagement,including:
thenatureofvalueandvalueco-creationorganizations,serviceproviders,serviceconsumers,andotherstakeholdersproductsandservicesservicerelationshipsvalue:outcomes,costs,andrisks.
Theseconceptsapplytoallorganizationsandservices,regardlessoftheirnatureandunderpinningtechnology.Butthefirstthingthatmustbeoutlinedisthemostfundamentalquestionofall:Whatis‘servicemanagement’?
Definition:ServicemanagementAsetofspecializedorganizationalcapabilitiesforenablingvalueforcustomersintheformofservices.
Developingthespecializedorganizationalcapabilitiesmentionedinthedefinitionrequiresanunderstandingof:
thenatureofvaluethenatureandscopeofthestakeholdersinvolvedhowvaluecreationisenabledthroughservices.
TheITILstory:Axle’sservices
Su:AtAxle,ourserviceistravelexperience.WeprovidethisservicetoourcustomerstocreatevaluebothforthemandforAxle.Servicemanagementhelpsustorealizethisvalue.
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TheITILstory:Axle’scustomers
HerearethreeofAxleCarHire’sfrequentcustomers,whomyouwillmeetasthestoryunfolds:
IchikaIsauniversitystudentonholidaywithnofixedplans.Shehopestovisitmusicfestivalsaspartofhertravelexperience.Apartfromthat,hertravelisflexible.Sheistech-savvyandquicklyadaptstonewapplicationsandsolutions.Sheisinterestedintryingnewandexcitingdigitalservices.
FaruqIsrecentlyretiredandtypicallyholidaysalone.Heisthoughtfulandenjoyslearningaboutandadoptingnewtechnology.Faruqoftenmakeshistravelplansonthego,ashisneedscanchange,basedonpersonalorhealthconsiderations.
AmeliaIsthefacilitiesmanageratanorganicfooddistributioncompanycalledFoodforFuel.TheirheadofficeisincentralLondon,butmanyFoodforFuelconsumersareinregionalareas.Thismeansaccessbypublictransportistypicallyinfrequent,unreliable,andexpensive.Consequently,FoodforFuelprovidesitssalesstaffwithvehiclestoenablethemtoconvenientlyandreliablyvisitexistingandpotentialcustomers.
2.1Valueandvalueco-creation
KeymessageThepurposeofanorganizationistocreatevalueforstakeholders.
Theterm‘value’isusedregularlyinservicemanagement,anditisakeyfocusofITIL4;itmustthereforebeclearlydefined.
Definition:Value
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Theperceivedbenefits,usefulness,andimportanceofsomething.
Inherentinthisdefinitionistheunderstandingthatvalueissubjecttotheperceptionofthestakeholders,whethertheybethecustomersorconsumersofaservice,orpartoftheserviceproviderorganization(s).Valuecanbesubjective.
2.1.1 Valueco-creation
Therewasatimewhenorganizationsself-identifyingas‘serviceproviders’sawtheirroleasdeliveringvaluetotheircustomersinmuchthesamewaythatapackageisdeliveredtoabuildingbyadeliverycompany.Thisviewtreatedtherelationshipbetweentheserviceproviderandtheserviceconsumerasmono-directionalanddistant.Theproviderdeliverstheserviceandtheconsumerreceivesvalue;theconsumerplaysnoroleinthecreationofvalueforthemselves.Thisfailstotakeintoconsiderationthehighlycomplexandinterdependentservicerelationshipsthatexistinreality.
Increasingly,organizationsrecognizethatvalueisco-createdthroughanactivecollaborationbetweenprovidersandconsumers,aswellasotherorganizationsthatarepartoftherelevantservicerelationships.Providersshouldnolongerattempttoworkinisolationtodefinewhatwillbeofvaluetotheircustomersandusers,butactivelyseektoestablishmutuallybeneficial,interactiverelationshipswiththeirconsumers,empoweringthemtobecreativecollaboratorsintheservicevaluechain.Stakeholdersacrosstheservicevaluechaincontributetothedefinitionofrequirements,thedesignofservicesolutionsandeventotheservicecreationand/orprovisioningitself(seesection4.5).
TheITILstory:Value
Marco:We’replanningtoreleaseagenerousnewoffering,givinganextradayofcarhirewitheverybooking.
Henri:However,wemustrememberthatvaluemeansdifferentthingsfordifferentpeople.Axlehasabroadrangeofcustomers,andeachofthemhastheirownrequirementsforcarhire.Weneedtomakesurethatanychangestoourservicesareactuallyprovidingsometypeofvaluetoourcustomers.
Ichika:Tome,‘value’meansfreedomofmovement.Iwantmytraveltobeeasy,hassle-free,andflexible.Ioptintomailinglistsandsubscriptionswhenitsuitsme.Itakefrequentshorttripsandrarelyvisitthesamelocationtwice.Anextradayofcarhirewon’talwayssuitmyplans.
Faruq:Idon’ttraveloften,soIdon’thavemyowncar.Thevalueofacar-hire
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serviceformeistheon-demandavailabilityofacarthatsuitsmyneeds.Ispendlessmoneyoncarhireeachyearthanitwouldcostmetomaintainandrunmyowncar.
Valuemeansitmeetsmybudget.BeingretiredmeansI’mflexible,withveryfewcommitmentsordeadlines.WhenI’monholiday,Ionlyplanafewdaysahead.Anextradayofcarhireoffersrealvaluetome.
Amelia:Thevalueofcarhireformyorganization,FoodforFuel,istwo-fold.First,weneedtheabilitytoreachourcustomers.Second,we’rekeentolowerourcostsandrisksbyhiringcarsinsteadofrunningourownfleet.
Asaregularcustomerwhobookscarhireonbehalfofmysalesrepsandstaff,Ivalueaconsistentandreliablestandardofservice.TravelandcarhireatFoodforFuelispre-plannedandtypicallyonlyrequiresdailyhire.There’snotmuchvalueinanextradayofcarhireformyorganization.
Henri:WealsohavetothinkabouthowvalueiscreatedforAxle.Themostobviousvaluewereceivewhenwehireoutourcarsisrevenue.Forourserviceconsumers,valueincludeseasyaccesstoavehiclewhentheyneedit,withouttheoverallexpenseofcarownership.Inbothcases,weneedacombinationofthetwoforthevaluetoberealized.Inthatway,weco-createvaluethroughourservicerelationships.
Valuewillbeexploredingreaterdepthlaterinthischapter.Beforethat,however,itisimportanttooutlinethevariousstakeholderswhoareinvolvedinvalueco-creationandthelanguageusedinITILtodescribethem.
2.2Organizations,serviceproviders,serviceconsumers,andotherstakeholders
Inservicemanagementtherearemanydifferentkindsofstakeholder,eachofwhichmustbeunderstoodinthecontextofthecreationofvalueintheformofservices.First,theterm‘organization’needstobedefined.
Definition:OrganizationApersonoragroupofpeoplethathasitsownfunctionswithresponsibilities,authorities,andrelationshipstoachieveitsobjectives.
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Organizationsvaryinsizeandcomplexity,andintheirrelationtolegalentities,fromasinglepersonorateamtoacomplexnetworkoflegalentitiesunitedbycommonobjectives,relationships,andauthorities.
Associetiesandeconomiesevolve,therelationshipsbetweenandwithinorganizationsbecomemorecomplex.Eachorganizationdependsonothersinitsoperationanddevelopment.Organizationsmayholddifferentroles,dependingontheperspectiveunderdiscussion.Forexample,anorganizationthatcoordinatesadventurevacationscanfilltheroleofaserviceprovidertoatravelagentwhenitsellsavacation,whilesimultaneouslyfillingtheroleofserviceconsumerwhenitpurchasesairporttransferstoaddtotheirvacationpackages.
2.2.1 Serviceproviders
KeymessageWhenprovisioningservices,anorganizationtakesontheroleoftheserviceprovider.Theprovidercanbeexternaltotheconsumer’sorganization,ortheycanbothbepartofthesameorganization.
InthemosttraditionalviewsofITSM,theproviderorganizationisseenastheITdepartmentofacompany,andtheotherdepartmentsorotherfunctionalunitsinthecompanyareregardedastheconsumers.Thisis,however,onlyoneverysimpleprovider-consumermodel.Aprovidercouldbesellingservicesontheopenmarkettootherbusinesses,toindividualconsumers,oritcouldbepartofaservicealliance,collaboratingtoprovideservicestoconsumerorganizations.Thekeyisthattheorganizationintheproviderrolehasaclearunderstandingofwhoitsconsumersareinagivensituationandwhotheotherstakeholdersareintheassociatedservicerelationships.
TheITILstory:Serviceproviders
Henri:AxleCarHireactsasaserviceprovider.Weprovidecarsforhire.Atthesametime,otherorganizations,suchasmechanicsandthecompaniesthatwebuyourcarsfrom,actasserviceprovidersforAxle.
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2.2.2 Serviceconsumers
KeymessageWhenreceivingservices,anorganizationtakesontheroleoftheserviceconsumer.
Serviceconsumerisagenericrolethatisusedtosimplifythedefinitionanddescriptionofthestructureofservicerelationships.Inpractice,therearemorespecificrolesinvolvedinserviceconsumption,suchascustomers,users,andsponsors.Theserolescanbeseparateorcombined.
DefinitionsCustomerApersonwhodefinestherequirementsforaserviceandtakesresponsibilityfortheoutcomesofserviceconsumption.UserApersonwhousesservices.SponsorApersonwhoauthorizesbudgetforserviceconsumption.
Forexample,ifacompanywishestopurchasemobilephoneservicesforitsemployeesfromawirelesscarrier(theserviceprovider),thevariousconsumerrolesmaybedistributedasfollows:
Thechiefinformationofficer(CIO)andkeycommunicationsteammembersfilltheroleofcustomerwhentheyanalysethemobilecommunicationsrequirementsofthecompany’semployees,negotiatethecontractwiththewirelesscarrierandmonitorthecarrier’sperformanceagainstthecontractedrequirements.Thechieffinancialofficer(CFO)fillstheroleofthesponsorwhentheyreviewtheproposedservicearrangementandapprovethecostofthecontractasnegotiated.Theemployees(includingtheCIO,CFO,andcommunicationsteammembers)filltheroleofuserswhentheyorder,receive,andusethemobilephoneservicesas
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pertheagreedcontract.
Inanotherexample,anindividualprivateconsumerofthesamewirelesscarrier(apersonusingthemobilenetwork)simultaneouslyactsasauser,customer,andsponsor.
TheITILstory:Axle’sserviceconsumers
Su:Ourmostobviousserviceconsumersarethepeopleandorganizationswhohireourcars,visitouroffices,anduseourwebsiteandbookingapp.Forexample,IchikaandFaruqareserviceconsumers,andsoisFoodforFuel.Theyarealsoourcustomers.
Radhika:Usersarethepeoplewhomakeuseofourservices.Ourcar-hireusersarethedriversandpassengersinourvehicles.
Marco:Sponsorsarethepeoplewhoauthorizebudgets.ForAxleCarHire,oursponsorsincludeAmeliafromFoodforFuel,whoapprovesthetravelbudgetevenifshedoesn’ttravelherself.
Henri:IndividualserviceconsumerssuchasIchikaandFaruqapprovetheirownbudgets,definetheirrequirementsforcarhire,anddrivethecars.Therefore,IchikaandFaruqactassponsors,customers,andusers.Sometimes,though,theymaysharethetripwithfellowdrivers(friendsorfamilymembers).Inthiscase,theircontractswillincludeotherusers.
Itisimportanttoidentifytheserolesinservicerelationshipstoensureeffectivecommunicationandstakeholdermanagement.Eachoftheserolesmayhavedifferent,andsometimesevenconflicting,expectationsfromservices,anddifferentdefinitionsofvalue.
2.2.3 Otherstakeholders
Akeyfocusofservicemanagement,andofITIL,isthewaythatorganizationsco-createvaluewiththeirconsumersthroughservicerelationships.Beyondtheconsumerandproviderroles,thereareusuallymanyotherstakeholdersthatareimportanttovaluecreation.Examplesincludeindividualemployeesoftheproviderorganization,partnersandsuppliers,investorsandshareholders,governmentorganizationssuchasregulators,andsocialgroups.Forthesuccess,andeventhecontinuedexistenceofanorganization,itisimportantthatrelationshipswithallkeystakeholdersareunderstoodandmanaged.Ifstakeholdersareunhappywithwhattheorganizationdoesorhowitdoesit,theprovider’srelationshipswithitsconsumerscanbeinjeopardy.
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Productsandservicescreatevalueforstakeholdersinanumberofways.Somearequitedirectsuchasthegenerationofrevenue,whileothersaremoreindirectsuchasemployeeexperience.Table2.1providesexamplesofvalueforseveraldifferenttypesofstakeholder.
DetailedrecommendationsonthemanagementofvaluefordifferentstakeholderscanbefoundinotherITIL4publicationsandsupplementarymaterials.
Table2.1Examplesofvaluefordifferenttypesofstakeholder
Stakeholder ExampleofvalueforstakeholderServiceconsumers Benefitsachieved;costsandrisksoptimizedServiceprovider Fundingfromtheconsumer;businessdevelopment;imageimprovementServiceprovideremployees Financialandnon-financialincentives;careerandprofessional
development;senseofpurposeSocietyandcommunity Employment;taxes;organizations’contributiontothedevelopmentofthe
communityCharityorganizations Financialandnon-financialcontributionsfromotherorganizationsShareholders Financialbenefits,suchasdividends;senseofassuranceandstability
2.3Productsandservices
Thecentralcomponentofservicemanagementis,ofcourse,theservice.Thenatureofserviceswillnowbeconsidered,andanoutlinegivenoftherelationshipbetweenaserviceandaproduct.
2.3.1 Configuringresourcesforvaluecreation
KeymessageTheservicesthatanorganizationprovidesarebasedononeormoreofitsproducts.Organizationsownorhaveaccesstoavarietyofresources,includingpeople,informationandtechnology,valuestreamsandprocesses,andpartnersandsuppliers.Productsareconfigurationsoftheseresources,createdbytheorganization,thatwillpotentiallybevaluableforitscustomers.
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Definitions
ServicesAmeansofenablingvalueco-creationbyfacilitatingoutcomesthatcustomerswanttoachieve,withoutthecustomerhavingtomanagespecificcostsandrisks.ProductAconfigurationofanorganization’sresourcesdesignedtooffervalueforaconsumer.
Eachproductthatanorganizationoffersiscreatedwithanumberoftargetconsumergroupsinmind,andtheproductswillbetailoredtoappealto,andmeettheneedsof,thesegroups.Aproductisnotexclusivetooneconsumergroup,andcanbeusedtoaddresstheneedsofseveraldifferentgroups.Forexample,asoftwareservicecanbeofferedasa‘lite’version,forindividualusers,orasamorecomprehensivecorporateversion.
Productsaretypicallycomplexandarenotfullyvisibletotheconsumer.Theportionofaproductthattheconsumeractuallyseesdoesnotalwaysrepresentallofthecomponentsthatcomprisetheproductandsupportitsdelivery.Organizationsdefinewhichproductcomponentstheirconsumerssee,andtailorthemtosuittheirtargetconsumergroups.
2.3.2 Serviceofferings
KeymessageServiceproviderspresenttheirservicestoconsumersintheformofserviceofferings,whichdescribeoneormoreservicesbasedononeormoreproducts.
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Definition:ServiceofferingAformaldescriptionofoneormoreservices,designedtoaddresstheneedsofatargetconsumergroup.Aserviceofferingmayincludegoods,accesstoresources,andserviceactions.
Serviceofferingsmayinclude:
goodstobesuppliedtoaconsumer(forexample,amobilephone).Goodsaresupposedtobetransferredfromtheprovidertotheconsumer,withtheconsumertakingtheresponsibilityfortheirfutureuseaccesstoresourcesgrantedorlicensedtoaconsumerunderagreedtermsandconditions(forexample,tothemobilenetwork,ortothenetworkstorage).Theresourcesremainundertheprovider’scontrolandcanbeaccessedbytheconsumeronlyduringtheagreedserviceconsumptionperiodserviceactionsperformedtoaddressaconsumer’sneeds(forexample,usersupport).Theseactionsareperformedbytheserviceprovideraccordingtotheagreementwiththeconsumer.
ExamplesofdifferenttypesofserviceofferingareshowninTable2.2.
Servicesareofferedtotargetconsumergroups,andthosegroupsmaybeeitherinternalorexternaltotheserviceproviderorganization.Differentofferingscanbecreatedbasedonthesameproduct,whichallowsittobeusedinmultiplewaystoaddresstheneedsofdifferentconsumergroups.Forexample,asoftwareservicecanbeofferedasalimitedfreeversion,orasacomprehensivepaid-forversion,basedononeproductoftheserviceprovider.
Table2.2Componentsofaserviceoffering
Component Description ExamplesGoods Suppliedtotheconsumer
OwnershipistransferredtotheconsumerConsumertakesresponsibilityforfutureuse
AmobilephoneAphysicalserver
Accesstoresources OwnershipisnottransferredtotheconsumerAccessisgrantedorlicensedtotheconsumerunderagreedtermsandconditionsTheconsumercanonlyaccesstheresourcesduringtheagreedconsumptionperiodandaccordingtootheragreedserviceterms
Accesstothemobilenetwork,ortonetworkstorage
Serviceactions Performedbytheserviceprovidertoaddressaconsumer’sneedsPerformedaccordingtoanagreementwiththeconsumer
UsersupportReplacementofapieceofequipment
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TheITILstory:Axle’sserviceofferings
Su:Axle’sserviceofferingsincludecarhireandthevariousoptionsweprovidetoaddressdifferenttravelneeds.Theseofferingsincludediscountedinsurance,aloyaltyprogramme,andcomplimentarytravelproductswhichincludebottledwater,tissues,badgeholdersforparkingpermits,andbabyseats.
Ourconsumersareadiversegroupandexpectdifferenttravelexperiences.Forexample,ourcorporateconsumersdon’tusuallyneedbabyseatsorweekendrates.Atthesametime,someindividualcustomersaren’tinterestedinfreeairportcarcollectionifthey’reonlytravellinglocally.
Allourserviceofferingsincludeaccesstoourwebsiteandbookingapp.
2.4Servicerelationships
Tocreatevalue,anorganizationmustdomorethansimplyprovideaservice.Itmustalsocooperatewiththeconsumersinservicerelationships.
KeymessageServicerelationshipsareestablishedbetweentwoormoreorganizationstoco-createvalue.Inaservicerelationship,organizationswilltakeontherolesofserviceprovidersorserviceconsumers.Thetworolesarenotmutuallyexclusive,andorganizationstypicallybothprovideandconsumeanumberofservicesatanygiventime.
2.4.1 Theservicerelationshipmodel
Whenservicesaredeliveredbytheprovider,theycreatenewresourcesforserviceconsumers,ormodifytheirexistingones.Forexample:
atrainingserviceimprovestheskillsoftheconsumer’semployeesabroadbandserviceallowstheconsumer’scomputerstocommunicateacar-hireserviceenablestheconsumer’sstafftovisitclientsasoftwaredevelopmentservicecreatesanewapplicationfortheservice
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Figure2.1Theservicerelationshipmodel
Theserviceconsumercanuseitsnewormodifiedresourcestocreateitsownproductstoaddresstheneedsofanothertargetconsumergroup,thusbecomingaserviceprovider.TheseinteractionsareshowninFigure2.1.
DefinitionsServicerelationshipAcooperationbetweenaserviceproviderandserviceconsumer.Servicerelationshipsincludeserviceprovision,serviceconsumption,andservicerelationshipmanagement.ServiceprovisionActivitiesperformedbyanorganizationtoprovideservices.Serviceprovisionincludes:
managementoftheprovider’sresources,configuredtodelivertheserviceensuringaccesstotheseresourcesforusersfulfilmentoftheagreedserviceactionsservicelevelmanagementandcontinualimprovement.
Serviceprovisionmayalsoincludethesupplyingofgoods.ServiceconsumptionActivitiesperformedbyanorganizationtoconsumeservices.Serviceconsumptionincludes:
managementoftheconsumer’sresourcesneededtousetheserviceserviceactionsperformedbyusers,includingutilizingtheprovider’sresources,andrequestingserviceactionstobefulfilled.
Serviceconsumptionmayalsoincludethereceiving(acquiring)ofgoods.ServicerelationshipmanagementJointactivitiesperformedbyaserviceproviderandaserviceconsumertoensurecontinualvalueco-creationbasedonagreedandavailableserviceofferings.
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TheITILstory:Axle’sservicerelationships
Henri:Axlehasservicerelationshipswithmanyserviceprovidersandconsumers,bothinternalandexternal.SomeservicesprovidedtoAxlecreatenewresourcesforthebusiness,suchascarmanufacturerssellingcarstous.Otherservices,suchastheworkdoneforusbyourinternalcarcleaningteam,andmechanicsoutsideofAxle,changeourexistingresourcesbyensuringthatourcarsarecleanandfunctional.
Axlecanusetheseresourcesinotherrelationshipstoprovideitsownservices,intheformofcarhire,toconsumers,i.e.ourcustomers.
ThesearejustafewexamplesoftheservicerelationshipsthatAxlehas.Theorganizationasawholehasmanymore.
2.5Value:outcomes,costs,andrisks
Thissectionwillfocusonhowanorganizationintheroleofserviceprovidershouldevaluatewhatitsservicesshoulddoandhowitsservicesshouldbeprovidedtomeettheneedsofconsumers.
KeymessageAchievingdesiredoutcomesrequiresresources(andthereforecosts)andisoftenassociatedwithrisks.Serviceprovidershelptheirconsumerstoachieveoutcomes,andindoingso,takeonsomeoftheassociatedrisksandcosts(seethedefinitionofserviceinsection2.3.1).Ontheotherhand,servicerelationshipscanintroducenewrisksandcosts,andinsomecases,cannegativelyaffectsomeoftheintendedoutcomes,whilesupportingothers.
Servicerelationshipsareperceivedasvaluableonlywhentheyhavemorepositiveeffectsthannegative,asdepictedinFigure2.2.Outcomes,andhowtheyinfluenceandareinfluencedbytheotherelements,willnowbediscussed.
2.5.1 Outcomes
Actingasaserviceprovider,anorganizationproducesoutputsthathelpits
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consumerstoachievecertainoutcomes.
DefinitionsOutputAtangibleorintangibledeliverableofanactivity.OutcomeAresultforastakeholderenabledbyoneormoreoutputs.
Figure2.2Achievingvalue:outcomes,costs,andrisks
Itisimportanttobeclearaboutthedifferencebetweenoutputsandoutcomes.Forexample,oneoutputofaweddingphotographyservicemaybeanalbuminwhichselectedphotosareartfullyarranged.Theoutcomeoftheservice,however,isthepreservationofmemoriesandtheabilityofthecoupleandtheirfamilyandfriendstoeasilyrecallthosememoriesbylookingatthealbum.
Dependingontherelationshipbetweentheproviderandtheconsumer,itcanbedifficultfortheprovidertofullyunderstandtheoutcomesthattheconsumerwantstoachieve.Insomecasestheywillworktogethertodefinethedesiredoutcomes.Forexample,businessrelationshipmanagers(BRMs)ininternalITorHRdepartmentsmayregularlytalkwithcustomersanddiscusstheirneedsandexpectations.Inothercases,theconsumersarticulatetheirexpectationsquiteclearly,andtheproviderexpectsthemtodoso,suchaswhenstandardizedservices
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areofferedtoawideconsumergroup.Thisishowmobileoperators,broadbandserviceproviders,andtransportcompaniesusuallyoperate.Finally,someserviceproviderspredictorevencreatedemandforcertainoutcomes,formingatargetgroupfortheirservices.Thismayhappenwithinnovativeservicesaddressingneedsthatconsumerswerenotevenawareofbefore.Examplesofthisincludesocialnetworksorsmarthomesolutions.
TheITILstory:Outputsandoutcomes
Henri:AtAxle,ourkeyoutputisacarthatisclean,roadworthy,andwellmaintained.
Su:Forourserviceconsumers,outcomesincludetravelthatisconvenientandaffordable,andmeetsarangeofneeds.Thisincludesself-driveholidays,clientsitevisits,andtraveltoseefamilyandfriends.
2.5.2 Costs
Definition:CostTheamountofmoneyspentonaspecificactivityorresource.
Fromtheserviceconsumer’sperspective,therearetwotypesofcostinvolvedinservicerelationships:
costsremovedfromtheconsumerbytheservice(apartofthevalueproposition).Thismayincludecostsofstaff,technology,andotherresources,whichtheconsumerdoesnotneedtoprovidecostsimposedontheconsumerbytheservice(thecostsofserviceconsumption).Thetotalcostofconsumingaserviceincludesthepricechargedbytheserviceprovider(ifapplicable),plusothercostssuchasstafftraining,costsofnetworkutilization,procurement,etc.Someconsumersdescribethisaswhattheyhaveto‘invest’toconsumetheservice.
Bothtypesofcostareconsideredwhentheconsumerassessesthevaluewhichtheyexpecttheservicetocreate.Toensurethatthecorrectdecisionsaremadeabout
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theservicerelationship,itisimportantthatbothtypesofcostarefullyunderstood.
Fromtheprovider’sperspective,afullandcorrectunderstandingofthecostofserviceprovisionisessential.Providersneedtoensurethatservicesaredeliveredwithinbudgetconstraintsandmeetthefinancialexpectationsoftheorganization(seesection5.1.11).
2.5.3 Risks
Definition:RiskApossibleeventthatcouldcauseharmorloss,ormakeitmoredifficulttoachieveobjectives.Canalsobedefinedasuncertaintyofoutcome,andcanbeusedinthecontextofmeasuringtheprobabilityofpositiveoutcomesaswellasnegativeoutcomes.
Aswithcosts,therearetwotypesofriskthatareofconcerntoserviceconsumers:
risksremovedfromaconsumerbytheservice(partofthevalueproposition).Thesemayincludefailureoftheconsumer’sserverhardwareorlackofstaffavailability.Insomecases,aservicemayonlyreduceaconsumer’srisks,buttheconsumermaydeterminethatthisreductionissufficienttosupportthevaluepropositionrisksimposedonaconsumerbytheservice(risksofserviceconsumption).Anexampleofthiswouldbeaserviceproviderceasingtotrade,orexperiencingasecuritybreach.
Itisthedutyoftheprovidertomanagethedetailedlevelofriskonbehalfoftheconsumer(seesection5.1.10).Thisshouldbehandledbasedonabalanceofwhatmattersmosttotheconsumerandtotheprovider.Theconsumercontributestothereductionofriskthrough:
activelyparticipatinginthedefinitionoftherequirementsoftheserviceandtheclarificationofitsrequiredoutcomesclearlycommunicatingthecriticalsuccessfactors(CSFs)andconstraintsthatapplytotheserviceensuringtheproviderhasaccesstothenecessaryresourcesoftheconsumerthroughouttheservicerelationship.
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2.5.4 Utilityandwarranty
Toevaluatewhetheraserviceorserviceofferingwillfacilitatetheoutcomesdesiredbytheconsumersandthereforecreatevalueforthem,theoverallutilityandwarrantyoftheserviceshouldbeassessed.
DefinitionsUtilityThefunctionalityofferedbyaproductorservicetomeetaparticularneed.Utilitycanbesummarizedas‘whattheservicedoes’andcanbeusedtodeterminewhetheraserviceis‘fitforpurpose’.Tohaveutility,aservicemusteithersupporttheperformanceoftheconsumerorremoveconstraintsfromtheconsumer.Manyservicesdoboth.WarrantyAssurancethataproductorservicewillmeetagreedrequirements.Warrantycanbesummarizedas‘howtheserviceperforms’andcanbeusedtodeterminewhetheraserviceis‘fitforuse’.Warrantyoftenrelatestoservicelevelsalignedwiththeneedsofserviceconsumers.Thismaybebasedonaformalagreement,oritmaybeamarketingmessageorbrandimage.Warrantytypicallyaddressessuchareasastheavailabilityoftheservice,itscapacity,levelsofsecurityandcontinuity.Aservicemaybesaidtoprovideacceptableassurance,or‘warranty’,ifalldefinedandagreedconditionsaremet.
Theassessmentofaservicemusttakeintoconsiderationtheimpactofcostsandrisksonutilityandwarrantytogenerateacompletepictureoftheviabilityofaservice.
Bothutilityandwarrantyareessentialforaservicetofacilitateitsdesiredoutcomesandthereforehelpcreatevalue.Forexample,arecreationalthemeparkmayoffermanyexcitingridesdesignedtodeliverthrillingexperiencesforparkvisitors(utility),butifasignificantnumberoftheridesarefrequentlyunavailableduetomechanicaldifficulties,theparkisnotfulfillingthewarranty(itisnotfitforuse)andtheconsumerswillnotreceivetheirexpectedvalue.Likewise,iftheridesarealwaysupandrunningduringadvertisedhours,buttheydonothavefeaturesthatprovidethelevelsofexcitementexpectedbyvisitors,theutilityisnotfulfilled,eventhoughthewarrantyissufficient.Again,consumerswouldnotreceivetheexpectedvalue.
TheITILstory:Anewsupplier(Craig’sCleaning)
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Su:Axle’srecentcustomersatisfactionsurveysconsistentlyrevealedlowratingsforcarcleanliness.Thishamperedourcustomers’travelexperienceandwasacontributingfactorforlowrepeatbookings.
Henri:AxleCarHiremadethedecisiontooutsourcethecleaningofallvehiclestoaserviceprovider.Previously,cleaningofourvehiclefleetwasperformedbyaninternaldepartment.Thecostandefforttomaintainequipment,updaterosters,andmanageaninflexibleworkforcewereunsustainable.
Itisimportanttounderstandthattheriskofoutsourcinganytaskorserviceisthatanorganizationlosesskillsandcapabilities.However,carcleaningisaservicerequiringspecializedequipmentaswellasaflexibleandmotivatedworkforce.ContinualinvestmentinthisserviceissomethingthatisnotbeneficialforAxle.
Atfacevalue,outsourcingmayappeartocostanorganizationmorethanusinginternalresources.Initiallythismaybetrue;however,overtimeandcorrectlymanaged,outsourcingservicesshouldbebeneficialtoboththeorganizationandsupplier.ThebenefitforAxleisthatwecanconcentrateonourcorebusiness.Afterall,we’renotacleaningcompany.
Marco:Therearealwaysprosandconstooutsourcing.Let’shavealookattheoutcomes,costs,andrisksthatareintroducedandremoved.
Pros ConsUserswillbehappywithourcars’cleanlinessAxlewillnolongerneedtomaintainitsowncleaningfacilitiesTheriskofcarsbeingdamagedduringcleaningwillberemovedfromAxle.Thisriskwillnowbewiththesupplierandtheirinsurancecompany
AxlewillloseanopportunitytooffercarcleaningasaserviceAxlewillneedtopaythecleaningcompanyAxlewillhaveaheavydependencyontheexternalcleaningcompany,andtheirstaffwillhavewideaccesstoourpremises
Su:Bypartneringwithaspecialistcleaningorganization,Axlecanfocusitsresourcesonprovidingabetterserviceforourusers.Itwillalsohelptooptimizeourcosts,increasingvaluefortheorganization.
CraigistheownerofCraig’sCleaning.Craigismethodical,reliable,andwellrespectedbyhisstaff.Withhisteam,CraigiskeentocontributetotheAxlevisionofofferingahigh-standardtravelexperience.
Craig:AxleCarHiredecidedtooutsourceitscarcleaningservice,andCraig’sCleaningwaschosentotakethison.MyorganizationisnowresponsibleforthecleanlinessoftheentireAxlevehiclefleet.
Henri:TheserviceCraig’sCleaningisprovidingisonlyonecomponentoftheAxlecustomerexperience.Cleancarsareoneoutputofouroverallservice,andtheycontributedirectlytothecustomers’travelexperience.ThishelpsAxle’sclientstoachievetheiroutcomes.
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Su:Craig’sCleaningisdoingagreatjob!Thecarshaveneverbeencleaner,andourcustomersatisfactionratingsforcarcleanlinessaresteadilyontheincrease.
AxleandCraig’sCleaninghaveworkedonacleaningscheduletogether,withfocusoncarcleaningturnaroundtimesduringpeakhours.AxleisresponsibleforprovidingCraigandhisteamwithtimelynoticeofanychangesthatcanimpactthisschedule.Forexample,Axlemayneedtoexpanditscleaningrequirementsinthelightofnewserviceofferings,suchastheoneMarcoisdeveloping.
Marco:Axlehasagoaltobecomeagreenercompanyandhelptheenvironment.WewouldlikeCraig’sCleaningtosupportusinthisgoalandaimforthesamesustainablegrowthasus.
2.6Summary
Thischapterhascoveredthekeyconceptsinservicemanagement,inparticularthenatureofvalueandvalueco-creation,organizations,products,andservices.Ithasexploredtheoftencomplexrelationshipsbetweenserviceprovidersandconsumers,andthevariousstakeholdersinvolved.Thechapterhasalsocoveredthekeycomponentsofconsumervalue:benefits,costs,andrisks,andhowimportantitistounderstandtheneedsofthecustomerwhendesigninganddeliveringservices.Theseconceptswillbebuiltuponoverthenextfewchapters,andguidanceprovidedonapplyingtheminpracticalandflexibleways.
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CHAPTER3
THEFOURDIMENSIONSOFSERVICEMANAGEMENT
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3ThefourdimensionsofservicemanagementThepreviouschapteroutlinedtheconceptsthatarekeytoservicemanagement.Theobjectiveofanorganizationistocreatevalueforitsstakeholders,andthisisachievedthroughtheprovisionandconsumptionofservices.ThewaysinwhichthevariouscomponentsandactivitiesofanorganizationworktogethertocreatethisvalueisdescribedbytheITILSVS.However,beforethisisexploredfurther,thefourdimensionsofservicemanagementmustbeintroduced.Thesedimensionsarerelevantto,andimpactupon,allelementsoftheSVS.
Toachievetheirdesiredoutcomesandworkaseffectivelyaspossible,organizationsshouldconsiderallaspectsoftheirbehaviour.Inpractice,however,organizationsoftenbecometoofocusedononeareaoftheirinitiativesandneglecttheothers.Forexample,processimprovementsmaybeplannedwithoutproperconsiderationforthepeople,partners,andtechnologyinvolved,ortechnologysolutionscanbeimplementedwithoutduecarefortheprocessesorpeopletheyaresupposedtosupport.Therearemultipleaspectstoservicemanagement,andnoneofthesearesufficienttoproducetherequiredoutcomeswhenconsideredinisolation.
KeymessageTosupportaholisticapproachtoservicemanagement,ITILdefinesfourdimensionsthatcollectivelyarecriticaltotheeffectiveandefficientfacilitationofvalueforcustomersandotherstakeholdersintheformofproductsandservices.Theseare:
organizationsandpeopleinformationandtechnologypartnersandsuppliersvaluestreamsandprocesses.
ThesefourdimensionsrepresentperspectiveswhicharerelevanttothewholeSVS,includingtheentiretyoftheservicevaluechainandallITILpractices.ThefourdimensionsareconstrainedorinfluencedbyseveralexternalfactorsthatareoftenbeyondthecontroloftheSVS.
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Thefourdimensions,andtherelationshipsbetweenthem,arerepresentedinFigure3.1.
Failingtoaddressallfourdimensionsproperlymayresultinservicesbecomingundeliverable,ornotmeetingexpectationsofqualityorefficiency.Forexample,failingtoconsiderthevaluestreamsandprocessesdimensionholisticallycanleadtowastefulwork,duplicationofefforts,orworse,workthatconflictswithwhatisbeingdoneelsewhereintheorganization.Equally,ignoringthepartnersandsuppliersdimensioncouldmeanthatoutsourcedservicesaremisalignedwiththeneedsoftheorganization.Thefourdimensionsdonothavesharpboundariesandmayoverlap.Theywillsometimesinteractinunpredictableways,dependingonthelevelofcomplexityanduncertaintyinwhichanorganizationoperates.
Figure3.1Thefourdimensionsofservicemanagement
Itisimportanttonotethatthefourdimensionsofservicemanagementapplytoallservicesbeingmanaged,aswellastotheSVSingeneral.Itisthereforeessentialthattheseperspectivesshouldbeconsideredforeveryservice,andthateachoneshouldbeaddressedwhenmanagingandimprovingtheSVSatalllevels.
Anoverviewofthefourdimensionsisprovidedbelow,andmoredetailedguidanceonaddressingthedimensionsinpracticecanbefoundinotherITIL4publications.
TheITILstory:Thefourdimensionsofservicemanagement
Henri:AsanITteam,weareresponsiblefortheinformationandtechnologyatAxleCarHire.However,effectiveITmanagementismuchmorethanjustmanagingtechnology.WemustalsoconsiderthewiderorganizationandpeopleinvolvedinAxle’scar-hireservice,ourrelationshipswithpartnersand
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suppliers,andthevaluestreams,processes,andtechnologiesthatweuse.
3.1Organizationsandpeople
Thefirstdimensionofservicemanagementisorganizationsandpeople.
Theeffectivenessofanorganizationcannotbeassuredbyaformallyestablishedstructureorsystemofauthorityalone.Theorganizationalsoneedsaculturethatsupportsitsobjectives,andtherightlevelofcapacityandcompetencyamongitsworkforce.Itisvitalthattheleadersoftheorganizationchampionandadvocatevalueswhichmotivatepeopletoworkindesirableways.Ultimately,however,itisthewayinwhichanorganizationcarriesoutitsworkthatcreatessharedvaluesandattitudes,whichovertimeareconsideredtheorganization’sculture.
KeymessageThecomplexityoforganizationsisgrowing,anditisimportanttoensurethatthewayanorganizationisstructuredandmanaged,aswellasitsroles,responsibilities,andsystemsofauthorityandcommunication,iswelldefinedandsupportsitsoverallstrategyandoperatingmodel.
Asanexample,itisusefultopromoteacultureoftrustandtransparencyinanorganizationthatencouragesitsmemberstoraiseandescalateissuesandfacilitatescorrectiveactionsbeforeanyissueshaveanimpactoncustomers.AdoptingtheITILguidingprinciplescanbeagoodstartingpointforestablishingahealthyorganizationalculture(seesection4.3).
People(whethercustomers,employeesofsuppliers,employeesoftheserviceprovider,oranyotherstakeholderintheservicerelationship)areakeyelementinthisdimension.Attentionshouldbepaidnotonlytotheskillsandcompetenciesofteamsorindividualmembers,butalsotomanagementandleadershipstyles,andtocommunicationandcollaborationskills.Aspracticesevolve,peoplealsoneedtoupdatetheirskillsandcompetencies.Itisbecomingincreasinglyimportantforpeopletounderstandtheinterfacesbetweentheirspecializationsandrolesandthoseofothersintheorganization,toensureproperlevelsofcollaborationandcoordination.Forexample,insomeareasofIT(suchassoftwaredevelopmentorusersupport),thereisagrowingacknowledgementthateveryoneshouldhaveabroadgeneralknowledgeoftheotherareasoftheorganization,combinedwitha
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deepspecializationincertainfields.
Everypersonintheorganizationshouldhaveaclearunderstandingoftheircontributiontowardscreatingvaluefortheorganization,itscustomers,andotherstakeholders.Promotingafocusonvaluecreationisaneffectivemethodofbreakingdownorganizationalsilos.
Theorganizationsandpeopledimensionofaservicecoversrolesandresponsibilities,formalorganizationalstructures,culture,andrequiredstaffingandcompetencies,allofwhicharerelatedtothecreation,delivery,andimprovementofaservice.
TheITILstory:Axle’sorganizationandpeople
Henri:TheorganizationsandpeopledimensionofAxle’scar-hireservicesincludesmyITteamandotherteamswithintheorganization,suchasprocurement,HR,andfacilities.
3.2Informationandtechnology
Theseconddimensionofservicemanagementisinformationandtechnology.Aswiththeotherthreedimensions,informationandtechnologyappliesbothtoservicemanagementandtotheservicesbeingmanaged.
DetailedguidanceontheroleofinformationandtechnologyinservicemanagementcanbefoundinotherITILpublications.
KeymessageWhenappliedtotheSVS,theinformationandtechnologydimensionincludestheinformationandknowledgenecessaryforthemanagementofservices,aswellasthetechnologiesrequired.ItalsoincorporatestherelationshipsbetweendifferentcomponentsoftheSVS,suchastheinputsandoutputsofactivitiesandpractices.
Thetechnologiesthatsupportservicemanagementinclude,butarenotlimitedto,workflowmanagementsystems,knowledgebases,inventorysystems,
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communicationsystems,andanalyticaltools.Servicemanagementincreasinglybenefitsfromdevelopmentsintechnology.Artificialintelligence,machinelearning,andothercognitivecomputingsolutionsareusedatalllevels,fromstrategicplanningandportfoliooptimizationtosystemmonitoringandusersupport.Theuseofmobileplatforms,cloudsolutions,remotecollaborationtools,automatedtesting,anddeploymentsolutionshasbecomecommonpracticeamongserviceproviders.
InthecontextofaspecificITservice,thisdimensionincludestheinformationcreated,managed,andusedinthecourseofserviceprovisionandconsumption,andthetechnologiesthatsupportandenablethatservice.ThespecificinformationandtechnologiesdependonthenatureoftheservicesbeingprovidedandusuallycoveralllevelsofITarchitecture,includingapplications,databases,communicationsystems,andtheirintegrations.Inmanyareas,ITservicesusethelatesttechnologydevelopments,suchasblockchain,artificialintelligence,andcognitivecomputing.Theseservicesprovideabusinessdifferentiationpotentialtoearlyadopters,especiallyinhighlycompetitiveindustries.Othertechnologysolutions,suchascloudcomputingormobileapps,havebecomecommonpracticeacrossmanyindustriesglobally.
Inrelationtotheinformationcomponentofthisdimension,organizationsshouldconsiderthefollowingquestions:
Whatinformationismanagedbytheservices?Whatsupportinginformationandknowledgeareneededtodeliverandmanagetheservices?Howwilltheinformationandknowledgeassetsbeprotected,managed,archived,anddisposedof?
Formanyservices,informationmanagementistheprimarymeansofenablingcustomervalue.Forexample,anHRservicefacilitatesvaluecreationforitscustomersbyenablingtheorganizationtoaccessandmaintainaccurateinformationaboutitsemployees,theiremployment,andtheirbenefits,withoutexposureofprivateinformationtounauthorizedparties.Anetworkmanagementservicefacilitatesvaluecreationforitsusersbymaintainingandprovidingaccurateinformationaboutanorganization’sactivenetworkconnectionsandutilization,allowingittoadjustitsnetworkbandwidthcapacity.InformationisgenerallythekeyoutputofthemajorityofITserviceswhichareconsumedbybusinesscustomers.
Anotherkeyconsiderationinthisdimensionishowinformationisexchangedbetweendifferentservicesandservicecomponents.Theinformationarchitectureofthevariousservicesneedstobewellunderstoodandcontinuallyoptimized,takingintoaccountsuchcriteriaastheavailability,reliability,accessibility,timeliness,accuracy,andrelevanceoftheinformationprovidedtousersandexchangedbetweenservices.
Thechallengesofinformationmanagement,suchasthosepresentedbysecurity
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andregulatorycompliancerequirements,arealsoafocusofthisdimension.Forexample,anorganizationmaybesubjecttotheEuropeanUnion’sGeneralDataProtectionRegulation(GDPR),whichinfluencesitsinformationmanagementpoliciesandpractices.Otherindustriesorcountriesmayhaveregulationsthatimposeconstraintsonthecollectionandmanagementofdataofmultinationalcorporations.Forexample,intheUStheHealthInsurancePortabilityandAccountabilityActof1996providesdataprivacyandsecurityprovisionsforsafeguardingmedicalinformation.
MostservicesnowadaysarebasedonIT,andareheavilydependentonit.Whenconsideringatechnologyforuseintheplanning,design,transition,oroperationofaproductorservice,questionsanorganizationmayaskinclude:
Isthistechnologycompatiblewiththecurrentarchitectureoftheorganizationanditscustomers?Dothedifferenttechnologyproductsusedbytheorganizationanditsstakeholdersworktogether?Howareemergingtechnologies(suchasmachinelearning,artificialintelligence,andInternetofThings)likelytodisrupttheserviceortheorganization?Doesthistechnologyraiseanyregulatoryorothercomplianceissueswiththeorganization’spoliciesandinformationsecuritycontrols,orthoseofitscustomers?Isthisatechnologythatwillcontinuetobeviableintheforeseeablefuture?Istheorganizationwillingtoaccepttheriskofusingagingtechnology,orofembracingemergingorunproventechnology?Doesthistechnologyalignwiththestrategyoftheserviceprovider,oritsserviceconsumers?Doestheorganizationhavetherightskillsacrossitsstaffandsupplierstosupportandmaintainthetechnology?Doesthistechnologyhavesufficientautomationcapabilitiestoensureitcanbeefficientlydeveloped,deployed,andoperated?Doesthistechnologyofferadditionalcapabilitiesthatmightbeleveragedforotherproductsorservices?Doesthistechnologyintroducenewrisksorconstraintstotheorganization(forexample,lockingitintoaspecificvendor)?
Thecultureofanorganizationmayhaveasignificantimpactonthetechnologiesitchoosestouse.Someorganizationsmayhavemoreofaninterestinbeingatthecuttingedgeoftechnologicaladvancesthanothers.Equallythecultureofsomeorganizationsmaybemoretraditional.Onecompanymaybekeentotakeadvantageofartificialintelligence,whileanothermaybarelybereadyforadvanceddataanalysistools.
Thenatureofthebusinesswillalsoaffectthetechnologyitmakesuseof.Forexample,acompanythatdoessignificantbusinesswithgovernmentclientsmay
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haverestrictionsontheuseofsometechnologies,orhavesignificantlyhighersecurityconcernsthatmustbeaddressed.Otherindustries,suchasfinanceorlifesciences,arealsosubjecttorestrictionsaroundtheiruseoftechnology.Forexample,theyusuallycannotuseopensourceandpublicserviceswhendealingwithsensitivedata.
TheITILstory:Axle’sinformationandtechnology
Henri:TheinformationandtechnologydimensionofAxleCarHirerepresentstheinformationcreatedandmanagedbyteams.Italsoincludesthetechnologiesthatsupportandenableourservices.Applicationsanddatabasessuchasourbookingappandfinancialsystemarepartoftheinformationandtechnologydimensionaswell.
Definition:Cloudcomputing
Amodelforenablingon-demandnetworkaccesstoasharedpoolofconfigurablecomputingresourcesthatcanberapidlyprovidedwithminimalmanagementeffortorproviderinteraction.
ITSMinthemodernworld:cloudcomputing
ITSMhasbeenfocusingonvalueforusersandcustomersforyears,andthisfocusisusuallytechnology-agnostic:whatmattersisnotthetechnology,buttheopportunitiesitcreatesforthecustomers.Althoughforthemostpartthisisaperfectlyacceptableapproach,organizationscannotignorenewarchitecturalsolutionsandtheevolutionoftechnologyingeneral.CloudcomputinghasbecomeanarchitecturalshiftinIT,introducingnewopportunitiesandrisks,andorganizationshavehadtoreacttoitinwaysthataremostbeneficialforthemselves,theircustomers,andotherstakeholders.
Keycharacteristicsofcloudcomputinginclude:
on-demandavailability(oftenself-service)networkaccess(ofteninternetaccess)resourcepooling(oftenamongmultipleorganizations)rapidelasticity(oftenautomatic)
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measuredservice(oftenfromserviceconsumer’sperspective).
InthecontextofITSM,cloudcomputingchangesservicearchitectureandthedistributionofresponsibilitiesbetweenserviceconsumers,serviceproviders,andtheirpartners.Itespeciallyappliestoin-houseserviceproviders,i.e.theorganization’sinternalITdepartments.Inatypicalsituation,adoptionofthecloudcomputingmodel:
replacessomeinfrastructure,previouslymanagedbytheserviceprovider,withapartner’scloudservicedecreasesorremovestheneedforinfrastructuremanagementexpertiseandtheresourcesoftheserviceprovidershiftsthefocusofservicemonitoringandcontrolfromthein-houseinfrastructuretoapartner’sserviceschangesthecoststructureoftheserviceprovider,removingspecificcapitalexpendituresandintroducingnewoperatingexpendituresandtheneedtomanagethemappropriatelyintroduceshigherrequirementsfornetworkavailabilityandsecurityintroducesnewsecurityandcompliancerisksandrequirements,applicabletoboththeserviceprovideranditspartnerprovidingthecloudserviceprovidesuserswithopportunitiestoscaleserviceconsumptionusingself-serviceviasimplestandardrequests,orevenwithoutanyrequests.
Alltheseaffectmultipleserviceproviders’practices,including,butnotlimitedto:
servicelevelmanagementmeasurementandreportinginformationsecuritymanagementservicecontinuitymanagementsuppliermanagementincidentmanagementproblemmanagementservicerequestmanagementserviceconfigurationmanagement.
Anotherimportanteffectofcloudcomputing,resultingfromthecomputingresources’elasticity,isthatthecloudinfrastructuremayenablesignificantlyfasterdeploymentofnewandchangedservices,thussupportinghigh-velocityservicedelivery.TheabilitytoconfigureanddeploycomputingresourceswiththesamespeedasnewapplicationsisanimportantprerequisiteforthesuccessofDevOpsandsimilarinitiatives.Thissupportsmodernorganizations
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intheirneedforfastertimetomarketanddigitalizationoftheirservices.
Consideringtheinfluenceofcloudcomputingonorganizations,itisimportanttomakedecisionsabouttheuseofthismodelatthestrategicleveloftheorganization,involvingalllevelsofstakeholders,fromgovernancetooperations.
3.3Partnersandsuppliers
Thethirddimensionofservicemanagementispartnersandsuppliers.Everyorganizationandeveryservicedependtosomeextentonservicesprovidedbyotherorganizations.
KeymessageThepartnersandsuppliersdimensionencompassesanorganization’srelationshipswithotherorganizationsthatareinvolvedinthedesign,development,deployment,delivery,support,and/orcontinualimprovementofservices.Italsoincorporatescontractsandotheragreementsbetweentheorganizationanditspartnersorsuppliers.
Relationshipsbetweenorganizationsmayinvolvevariouslevelsofintegrationandformality.Thisrangesfromformalcontractswithclearseparationofresponsibilities,toflexiblepartnershipswherepartiessharecommongoalsandrisks,andcollaboratetoachievedesiredoutcomes.SomerelationshipexamplesareshowninTable3.1.Notethattheformsofcooperationdescribedarenotfixedbutexistasaspectrum.Anorganizationactingasaserviceproviderwillhaveapositiononthisspectrum,whichwillvarydependingonitsstrategyandobjectivesforcustomerrelationships.Likewise,whenanorganizationactsasaserviceconsumer,theroleittakesonwilldependonitsstrategyandobjectivesforsourcingandsuppliermanagement.Whenitcomestousingpartnersandsuppliers,anorganization’sstrategyshouldbebasedonitsgoals,culture,andbusinessenvironment.Forexample,someorganizationsmaybelievethattheywillbebestservedbyfocusingtheirattentionondevelopingcertaincorecompetencies,usingpartnersandsupplierstoprovideotherneeds.Otherorganizationsmaychoosetorelyasmuchaspossibleontheirownresources,usingpartnersandsuppliersaslittleaspossible.Thereare,ofcourse,manyvariationsbetweenthesetwooppositeapproaches.
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Table3.1Relationshipsbetweenorganizations
Onemethodanorganizationmayusetoaddressthepartnersandsuppliersdimensionisserviceintegrationandmanagement.Thisinvolvestheuseofaspeciallyestablishedintegratortoensurethatservicerelationshipsareproperlycoordinated.Serviceintegrationandmanagementmaybekeptwithintheorganization,butcanalsobedelegatedtoatrustedpartner.
Factorsthatmayinfluenceanorganization’sstrategywhenusingsuppliersinclude:
StrategicfocusSomeorganizationsmayprefertofocusontheircorecompetencyandtooutsourcenon-coresupportingfunctionstothirdparties;othersmayprefertostayasself-sufficientaspossible,retainingfullcontroloverallimportantfunctions.CorporatecultureSomeorganizationshaveahistoricalpreferenceforoneapproachoveranother.Long-standingculturalbiasisdifficulttochangewithoutcompellingreasons.ResourcescarcityIfarequiredresourceorskillsetisinshortsupply,itmaybedifficultfortheserviceprovidertoacquirewhatisneededwithoutengagingasupplier.CostconcernsAdecisionmaybeinfluencedbywhethertheserviceproviderbelievesthatitismoreeconomicaltosourceaparticularrequirementfromasupplier.SubjectmatterexpertiseTheserviceprovidermaybelievethatitislessriskytouseasupplierthatalreadyhasexpertiseinarequiredarea,ratherthantryingtodevelopandmaintainthesubjectmatterexpertiseinhouse.ExternalconstraintsGovernmentregulationorpolicy,industrycodesofconduct,andsocial,politicalorlegalconstraintsmayimpactanorganization’ssupplierstrategy.DemandpatternsCustomeractivityordemandforservicesmaybeseasonalordemonstratehighdegreesofvariability.Thesepatternsmayimpacttheextenttowhichorganizationsuseexternalserviceproviderstocopewithvariabledemand.
Thelastdecadehasseenanexplosionincompaniesthatoffertechnicalresources(infrastructure)orcapabilities(platforms,software)‘asaservice’.Thesecompanies
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bundlegoodsandservicesintoasingleproductofferingthatcanbeconsumedasautility,andistypicallyaccountedforasoperatingexpenditure.Thisfreescompaniesfrominvestingincostlyinfrastructureandsoftwareassetsthatneedtobeaccountedforascapitalexpenditure.
TheITILstory:Axle’spartnersandsuppliers
Henri:ThepartnersandsuppliersdimensionforAxleincludessupplierssuchasGoGoGasandCraig’sCleaning,aswellasinternetserviceprovidersanddevelopers.
3.4Valuestreamsandprocesses
Thefourthdimensionofservicemanagementisvaluestreamsandprocesses.Liketheotherdimensions,thisdimensionisapplicabletoboththeSVSingeneral,andtospecificproductsandservices.Inbothcontextsitdefinestheactivities,workflows,controls,andproceduresneededtoachieveagreedobjectives.
KeymessageAppliedtotheorganizationanditsSVS,thevaluestreamsandprocessesdimensionisconcernedwithhowthevariouspartsoftheorganizationworkinanintegratedandcoordinatedwaytoenablevaluecreationthroughproductsandservices.Thedimensionfocusesonwhatactivitiestheorganizationundertakesandhowtheyareorganized,aswellashowtheorganizationensuresthatitisenablingvaluecreationforallstakeholdersefficientlyandeffectively.
ITILgivesorganizationsactingasserviceprovidersanoperatingmodelthatcoversallthekeyactivitiesrequiredtomanageproductsandserviceseffectively.ThisisreferredtoastheITILservicevaluechain(seesection4.5).
Theservicevaluechainoperatingmodelisgenericandinpracticeitcanfollowdifferentpatterns.Thesepatternswithinthevaluechainoperationarecalledvaluestreams.
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3.4.1 Valuestreamsforservicemanagement
KeymessageAvaluestreamisaseriesofstepsthatanorganizationusestocreateanddeliverproductsandservicestoaserviceconsumer.Avaluestreamisacombinationoftheorganization’svaluechainactivities(seesection4.5formoredetailsonvaluechainactivitiesandAppendixAforexamplesofvaluestreams).
Definition:ValuestreamAseriesofstepsanorganizationundertakestocreateanddeliverproductsandservicestoconsumers.
Identifyingandunderstandingthevariousvaluestreamsanorganizationhasiscriticaltoimprovingitsoverallperformance.Structuringtheorganization’sactivitiesintheformofvaluestreamsallowsittohaveaclearpictureofwhatitdeliversandhow,andtomakecontinualimprovementstoitsservices.
Organizationsshouldexaminehowtheyperformworkandmapallthevaluestreamstheycanidentify.Thiswillenablethemtoanalysetheircurrentstateandidentifyanybarrierstoworkflowandnon-value-addingactivities,i.e.waste.Wastefulactivitiesshouldbeeliminatedtoincreaseproductivity.
Opportunitiestoincreasevalue-addingactivitiescanbefoundacrosstheservicevaluechain.Thesemaybenewactivitiesormodificationstoexistingones,whichcanmaketheorganizationmoreproductive.Valuestreamoptimizationmayincludeprocessautomationoradoptionofemergingtechnologiesandwaysofworkingtogainefficienciesorenhanceuserexperience.
Valuestreamsshouldbedefinedbyorganizationsforeachoftheirproductsandservices.Dependingontheorganization’sstrategy,valuestreamscanberedefinedtoreacttochangingdemandandothercircumstances,orremainstablefora
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significantamountoftime.Inanycase,theyshouldbecontinuallyimprovedtoensurethattheorganizationachievesitsobjectivesinanoptimalway.ValuestreammappingisdescribedinmoredetailinotherITIL4publications.
3.4.2 Processes
KeymessageAprocessisasetofactivitiesthattransforminputstooutputs.Processesdescribewhatisdonetoaccomplishanobjective,andwell-definedprocessescanimproveproductivitywithinandacrossorganizations.Theyareusuallydetailedinprocedures,whichoutlinewhoisinvolvedintheprocess,andworkinstructions,whichexplainhowtheyarecarriedout.
Definition:ProcessAsetofinterrelatedorinteractingactivitiesthattransforminputsintooutputs.Aprocesstakesoneormoredefinedinputsandturnsthemintodefinedoutputs.Processesdefinethesequenceofactionsandtheirdependencies.
Whenappliedtoproductsandservices,thisdimensionhelpstoanswerthefollowingquestions,criticaltoservicedesign,delivery,andimprovement:
Whatisthegenericdeliverymodelfortheservice,andhowdoestheservicework?Whatarethevaluestreamsinvolvedindeliveringtheagreedoutputsoftheservice?Who,orwhat,performstherequiredserviceactions?
Specificanswerstothesequestionswillvarydependingonthenatureandarchitectureoftheservice.
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TheITILstory:Axle’svaluestreamsandprocesses
Radhika:ThevaluestreamsandprocessesdimensionrepresentstheseriesofactivitiesthatarecarriedoutwithinAxle.ValuestreamshelpAxletoidentifywastefulactivityandremoveobstaclesthathindertheorganization’sproductivity.
3.5Externalfactors
Serviceprovidersdonotoperateinisolation.Theyareaffectedbymanyexternalfactors,andworkindynamicandcomplexenvironmentsthatcanexhibithighdegreesofvolatilityanduncertaintyandimposeconstraintsonhowtheserviceprovidercanwork.Toanalysetheseexternalfactors,frameworkssuchasthePESTLE(orPESTEL)modelareused.PESTLEisanacronymforthepolitical,economic,social,technological,legal,andenvironmentalfactorsthatconstrainorinfluencehowaserviceprovideroperates.
Collectively,thesefactorsinfluencehoworganizationsconfiguretheirresourcesandaddressthefourdimensionsofservicemanagement.Forexample:
Governmentandsocietalattitudestowardsenvironmentallyfriendlyproductsandservicesmayresultintheorganizationinvestingmoreintoolsandtechnologiesthatmeetexternalexpectations.Anorganizationmaychoosetopartnerwithotherorganizations(orsourceservicesfromexternalproviders)whocandemonstrateenvironmentallyfriendlycredentials.Forexample,somecompaniespublishproductenvironmentalreportsthatdescribetheirproducts’performanceagainsttheirpoliciesaroundclimatechange,safermaterials,andotherresources.Economicandsocietalfactorsmayinfluenceorganizationstocreateseveralversionsofthesameproducttoaddressvariousconsumergroupsthatshowdifferentbuyingpatterns.Oneexampleismusicandvideostreamingservices,manyofwhichhaveafreetier(withadvertising),apremiumtier(withoutadvertising),andinsomecasesa‘familyplan’thatallowsmultipleindividualprofilesunderonepaid-foraccount.Dataprotectionlawsorregulations(likeGDPR)havechangedhowcompaniesmustcollect,process,access,andstorecustomerdata,aswellashowtheyworkwithexternalpartnersandsuppliers.
3.6Summary
Thefourdimensionsrepresentaholisticapproachtoservicemanagement,andorganizationsshouldensurethatthereisabalanceoffocusbetweeneach
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dimension.Theimpactofexternalfactorsonthefourdimensionsshouldalsobeconsidered.Allfourdimensionsandtheexternalfactorsthataffectthemshouldbeaddressedastheyevolve,consideringemergingtrendsandopportunities.Itisessentialthatanorganization’sSVSisconsideredfromallfourdimensions,asthefailuretoadequatelyaddressoraccountforonedimension,oranexternalfactor,canleadtosub-optimalproductsandservices.
TheITILstory:Balancingthefourdimensions
Marco:TomakeAxle’sservicesaseffectiveaspossible,weusethebestcombinationofourpeople,ourteams,ourvaluestreams,andourwaysofworking.Wenowengageablendedapproachtoservicemanagement,incorporatingDevOps,DesignThinking,andAgileintoproductdevelopment.Wealsousenewtechnologiessuchasrobotics,AI,andmachinelearning,strivingtobeefficientandLean,andtoautomatewhereverpossible.
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CHAPTER4
THEITILSERVICEVALUESYSTEM
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4TheITILservicevaluesystem
4.1Servicevaluesystemoverview
Forservicemanagementtofunctionproperly,itneedstoworkasasystem.TheITILSVSdescribestheinputstothissystem(opportunityanddemand),theelementsofthissystem(organizationalgovernance,servicemanagement,continualimprovement,andtheorganization’scapabilitiesandresources),andtheoutputs(achievementoforganizationalobjectivesandvaluefortheorganization,itscustomers,andotherstakeholders).
KeymessageTheITILSVSdescribeshowallthecomponentsandactivitiesoftheorganizationworktogetherasasystemtoenablevaluecreation.Eachorganization’sSVShasinterfaceswithotherorganizations,forminganecosystemthatcaninturnfacilitatevalueforthoseorganizations,theircustomers,andotherstakeholders.
ThekeyinputstotheSVSareopportunityanddemand.Opportunitiesrepresentoptionsorpossibilitiestoaddvalueforstakeholdersorotherwiseimprovetheorganization.Demandistheneedordesireforproductsandservicesamonginternalandexternalconsumers.TheoutcomeoftheSVSisvalue,thatis,theperceivedbenefits,usefulness,andimportanceofsomething.TheITILSVScanenablethecreationofmanydifferenttypesofvalueforawidegroupofstakeholders.
TheITILSVSincludesthefollowingcomponents:
GuidingprinciplesRecommendationsthatcanguideanorganizationinallcircumstances,regardlessofchangesinitsgoals,strategies,typeofwork,ormanagementstructure.GovernanceThemeansbywhichanorganizationisdirectedandcontrolled.ServicevaluechainAsetofinterconnectedactivitiesthatanorganizationperformstodeliveravaluableproductorservicetoitsconsumersandto
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facilitatevaluerealization.PracticesSetsoforganizationalresourcesdesignedforperformingworkoraccomplishinganobjective.ContinualimprovementArecurringorganizationalactivityperformedatalllevelstoensurethatanorganization’sperformancecontinuallymeetsstakeholders’expectations.ITIL4supportscontinualimprovementwiththeITILcontinualimprovementmodel.
ThepurposeoftheSVSistoensurethattheorganizationcontinuallyco-createsvaluewithallstakeholdersthroughtheuseandmanagementofproductsandservices.ThestructureoftheSVSisshowninFigure4.1.TheleftsideofthefigureshowsopportunityanddemandfeedingintotheSVSfrombothinternalandexternalsources.Therightsideshowsvaluecreatedfortheorganization,itscustomers,andotherstakeholders.
Figure4.1TheITILservicevaluesystem
TheITILSVSdescribeshowallthecomponentsandactivitiesoftheorganizationworktogetherasasystemtoenablevaluecreation.Thesecomponentsandactivities,togetherwiththeorganization’sresources,canbeconfiguredandreconfiguredinmultiplecombinationsinaflexiblewayascircumstanceschange,butthisrequirestheintegrationandcoordinationofactivities,practices,teams,authoritiesandresponsibilities,andallpartiestobetrulyeffective.
Oneofthebiggestchallengesanorganizationcanfacewhentryingtoworkeffectivelyandefficientlywithasharedvision,ortobecomemoreAgileandresilient,isthepresenceoforganizationalsilos.Organizationalsiloscanforminmanywaysandformanydifferentreasons.Siloscanberesistanttochangeandcanpreventeasyaccesstotheinformationandspecializedexpertisethatexistsacrosstheorganization,whichcaninturnreduceefficiencyandincreasebothcostandrisk.Silosalsomakeitmoredifficultforcommunicationorcollaborationtooccuracrossdifferentgroups.
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Asiloedorganizationcannotactquicklytotakeadvantageofopportunitiesortooptimizetheuseofresourcesacrosstheorganization.Itisoftenunabletomakeeffectivedecisionsaboutchanges,duetolimitedvisibilityandmanyhiddenagendas.Practicescanalsobecomesilos.Manyorganizationshaveimplementedpracticessuchasorganizationalchangemanagementorincidentmanagementwithoutclearinterfaceswithotherpractices.Allpracticesshouldhavemultipleinterfaceswithoneanother.Theexchangeofinformationbetweenpracticesshouldbetriggeredatkeypointsintheworkflow,andisessentialtotheproperfunctioningoftheorganization.
ThearchitectureoftheITILSVSspecificallyenablesflexibilityanddiscouragessiloedworking.TheservicevaluechainactivitiesandthepracticesintheSVSdonotformafixed,rigidstructure.Rather,theycanbecombinedinmultiplevaluestreamstoaddresstheneedsoftheorganizationinavarietyofscenarios.Thispublicationprovidesexamplesofservicevaluestreams,butnoneofthemaredefiniteorprescriptive.Organizationsshouldbeabletodefineandredefinetheirvaluestreamsinaflexible,yetsafeandefficientmanner.Thisrequirescontinualimprovementactivitytobecarriedoutatalllevelsoftheorganization;theITILcontinualimprovementmodelhelpstostructurethisactivity.Finally,thecontinualimprovementandoveralloperationofanorganizationareshapedbytheITILguidingprinciples.Theguidingprinciplescreateafoundationforasharedcultureacrosstheorganization,thussupportingcollaborationandcooperationwithinandbetweentheteams,andremovingtheneedforconstraintsandcontrolspreviouslyprovidedbysilos.
Withthesecomponents,theITILSVSsupportsmanyworkapproaches,suchasAgile,DevOpsandLean(seeGlossary),aswellastraditionalprocessandprojectmanagement,withaflexiblevalue-orientedoperatingmodel.
Anorganizationcantakeanynumberofforms,including,butnotlimitedto,soletrader,company,corporation,firm,enterprise,authority,partnership,charityorinstitution,oranypartorcombinationthereof,whetherincorporatedornot,andbeeitherpublicorprivate.ThismeansthatthescopeoftheSVScanbeawholeorganizationorasmallersubsetofthatorganization.ToachievethemaximumvaluefromtheSVSandtoproperlyaddresstheissueoforganizationalsilos,itispreferabletoincludethewholeorganizationinthescoperatherthanasubset.
TherestofthischapterwillexploreeachelementoftheSVS.
Organizationalagilityandorganizationalresilience
Foranorganizationtobesuccessful,itmustachieveorganizationalagilitytosupportinternalchanges,andorganizationalresiliencetowithstandandeventhriveinchangingexternalcircumstances.Theorganizationmustalsobeconsideredaspartofalargerecosystemoforganizations,alldelivering,
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coordinating,andconsumingproductsandservices.
Organizationalagilityistheabilityofanorganizationtomoveandadaptquickly,flexibly,anddecisivelytosupportinternalchanges.Thesemightincludechangestothescopeoftheorganization,mergersandacquisitions,changingorganizationalpractices,ortechnologiesrequiringdifferentskillsororganizationalstructureandchangestorelationshipswithpartnersandsuppliers.
Organizationalresilienceistheabilityofanorganizationtoanticipate,preparefor,respondto,andadapttobothincrementalchangesandsuddendisruptionsfromanexternalperspective.Externalinfluencescouldbepolitical,economic,social,technological,legalorenvironmental.Resiliencecannotbeachievedwithoutacommonunderstandingoftheorganization’sprioritiesandobjectives,whichsetsthedirectionandpromotesalignmentevenasexternalcircumstanceschange.
TheITILSVSprovidesthemeanstoachieveorganizationalagilityandresilienceandtofacilitatetheadoptionofastrongunifieddirection,focusedonvalueandunderstoodbyeveryoneintheorganization.Italsoenablescontinualimprovementthroughouttheorganization.
4.2Opportunity,demand,andvalue
KeymessageOpportunityanddemandtriggeractivitieswithintheITILSVS,andtheseactivitiesleadtothecreationofvalue.Opportunityanddemandarealwaysenteringintothesystem,buttheorganizationdoesnotautomaticallyacceptallopportunitiesorsatisfyalldemand.
Opportunityrepresentsoptionsorpossibilitiestoaddvalueforstakeholdersorotherwiseimprovetheorganization.Theremaynotbedemandfortheseopportunitiesyet,buttheycanstilltriggerworkwithinthesystem.Organizationsshouldprioritizeneworchangedserviceswithopportunitiesforimprovementtoensuretheirresourcesarecorrectlyallocated.
Demandrepresentstheneedordesireforproductsandservicesfrominternaland
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externalcustomers.Adefinitionofvalue,andwhatconstitutesvaluefordifferentstakeholders,canbefoundinChapter2.
4.3TheITILguidingprinciples
KeymessageAguidingprincipleisarecommendationthatguidesanorganizationinallcircumstances,regardlessofchangesinitsgoals,strategies,typeofwork,ormanagementstructure.Aguidingprincipleisuniversalandenduring.
Table4.1Overviewoftheguidingprinciples
Guidingprinciple DescriptionFocusonvalue Everythingthattheorganizationdoesneedstomap,directlyorindirectly,
tovalueforthestakeholders.Thefocusonvalueprincipleencompassesmanyperspectives,includingtheexperienceofcustomersandusers.
Startwhereyouare Donotstartfromscratchandbuildsomethingnewwithoutconsideringwhatisalreadyavailabletobeleveraged.Thereislikelytobeagreatdealinthecurrentservices,processes,programmes,projects,andpeoplethatcanbeusedtocreatethedesiredoutcome.Thecurrentstateshouldbeinvestigatedandobserveddirectlytomakesureitisfullyunderstood.
Progressiterativelywithfeedback
Donotattempttodoeverythingatonce.Evenhugeinitiativesmustbeaccomplishediteratively.Byorganizingworkintosmaller,manageablesectionsthatcanbeexecutedandcompletedinatimelymanner,itiseasiertomaintainasharperfocusoneacheffort.Usingfeedbackbefore,throughout,andaftereachiterationwillensurethatactionsarefocusedandappropriate,evenifcircumstanceschange.
Collaborateandpromotevisibility
Workingtogetheracrossboundariesproducesresultsthathavegreaterbuy-in,morerelevancetoobjectives,andincreasedlikelihoodoflong-termsuccess.Achievingobjectivesrequiresinformation,understanding,andtrust.Workandconsequencesshouldbemadevisible,hiddenagendasavoided,andinformationsharedtothegreatestdegreepossible.
Thinkandworkholistically Noservice,orelementusedtoprovideaservice,standsalone.Theoutcomesachievedbytheserviceproviderandserviceconsumerwillsufferunlesstheorganizationworksontheserviceasawhole,notjustonitsparts.Resultsaredeliveredtointernalandexternalcustomersthroughtheeffectiveandefficientmanagementanddynamicintegrationofinformation,technology,organization,people,practices,partners,andagreements,whichshouldallbecoordinatedtoprovideadefinedvalue.
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Keepitsimpleandpractical Ifaprocess,service,actionormetricfailstoprovidevalueorproduceausefuloutcome,eliminateit.Inaprocessorprocedure,usetheminimumnumberofstepsnecessarytoaccomplishtheobjective(s).Alwaysuseoutcome-basedthinkingtoproducepracticalsolutionsthatdeliverresults.
Optimizeandautomate Resourcesofalltypes,particularlyHR,shouldbeusedtotheirbesteffect.Eliminateanythingthatistrulywastefulandusetechnologytoachievewhateveritiscapableof.Humaninterventionshouldonlyhappenwhereitreallycontributesvalue.
TheguidingprinciplesdefinedhereembodythecoremessagesofITILandofservicemanagementingeneral,supportingsuccessfulactionsandgooddecisionsofalltypesandatalllevels.TheycanbeusedtoguideorganizationsintheirworkastheyadoptaservicemanagementapproachandadaptITILguidancetotheirownspecificneedsandcircumstances.Theguidingprinciplesencourageandsupportorganizationsincontinualimprovementatalllevels.
Theseprinciplesarealsoreflectedinmanyotherframeworks,methods,standards,philosophies,and/orbodiesofknowledge,suchasLean,Agile,DevOps,andCOBIT.Thisallowsorganizationstoeffectivelyintegratetheuseofmultiplemethodsintoanoverallapproachtoservicemanagement.
Theguidingprinciplesareapplicabletopracticallyanyinitiativeandtoallrelationshipswithstakeholdergroups.Forexample,thefirstprinciple,focusonvalue,can(andshould)beappliednotonlytoserviceconsumers,buttoallrelevantstakeholdersandtheirrespectivedefinitionsofvalue.
Table4.1providesahigh-levelintroductiontotheguidingprinciples.Additionaldetailsforeachprinciplearepresentedlaterinthischapter.
ITIL,Agile,andDevOps
Agilemethods,whenappliedtosoftwaredevelopment,focusonthedeliveryofincrementalchangestosoftwareproductswhilerespondingtothechanging(orevolving)needsofusers.Theyfosteracultureofcontinuallearning,flexibility,andwillingnesstotrynewapproachesandadapttorapidlychangingneeds.Agilewaysofworkingincludetechniquessuchastimeboxingwork,self-organizingandcross-functionalteams,andongoingcollaborationandcommunicationwithcustomersandusers.
Agilesoftwaredevelopmentteamsoftenfocusontherapiddeliveryofproductincrementsattheexpenseofamoreholisticviewthatconsiderstheoperability,reliability,andmaintainabilityoftheseproductsinaliveenvironment.Similarly,continuallearningandimprovementinitiativescanfocusonbetteringthearticulationandprioritizationofuserneeds,orstreamliningtheprocedurestodevelop,test,anddeployworkingsoftware.Whiletheseinitiativescanprovidevaluableoutcomes,theyalsoruntheriskofbeingoutofsyncwithotherinitiativesataservicelevel.
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JustasAgiletechniquesprovideserviceorganizationswithaflowofproductandsoftwareincrements,ITILcanalsoprovidesoftwaredevelopmentorganizationswithawiderperspectiveandlanguagewithwhichtoengageotherserviceteams.AdoptingAgilewithoutITILcanleadtohighercostsovertime,suchasthecostsofadoptingdifferenttechnologiesandarchitectures,andcoststorelease,operate,andmaintainsoftwareincrements.Similarly,implementingITILwithoutAgiletechniquescanrisklosingfocusonvalueforcustomersandusers,creatingslow-movingandhighlycentralizedbureaucracies.
WhenAgileandITILareadoptedtogether,softwaredevelopmentandservicemanagementcanprogressatasimilarcadence,shareacommonterminology,andensurethattheorganizationcontinuestoco-createvaluewithallitsstakeholders.SomeofthewaysinwhichITILandAgilecanworktogetherinclude:
streamliningpracticessuchaschangecontrolestablishingprocedurestoincorporateandprioritizethemanagementofunplannedinterruptions(incidents),andtoinvestigatethecausesoffailureseparatinginteractions,ifnecessary,between‘systemsofrecord’(e.g.theconfigurationmanagementdatabase)neededtomanageservicesfrom‘systemsofengagement’(e.g.collaborationtools)usedbysoftwaredevelopmentteams.
DevOpsmethodsbuildonAgilesoftwaredevelopmentandservicemanagementtechniquesbyemphasizingclosecollaborationbetweentherolesofsoftwaredevelopmentandtechnicaloperations.Usinghighdegreesofautomationtofreeupthetimeofskilledprofessionalssothattheycanfocusonvalue-addingactivities,DevOpsisabletoshinealightonaspectssuchasoperability,reliability,andmaintainabilityofsoftwareproductsthatcanassistinthemanagementofservices.CulturalaspectsthatDevOpspractitionersadvocatecan,andshould,beextendedacrossthevaluestreamandallservicevaluechainactivitiessothatproductandserviceteamsarealignedwiththesamegoalsandusethesamemethods.
ItisoftensaidthatDevOpscombinessoftwaredevelopmenttechniques(Agile),goodgovernanceandaholisticapproachtovalueco-creation(ITIL),andanobsessionwithlearningaboutandimprovingthewayinwhichvalueisgenerated(Lean).Assuch,theadoptionofDevOpsmethodspresentsfurtheropportunitiestoimprovethewayinwhichsoftwareproductsaredevelopedandmanaged,suchas:
creatingfastfeedbackloopsfromdeliveryandsupporttosoftwaredevelopmentandtechnologyoperationsstreamliningvaluechainactivitiesandvaluestreamssothatdemandfor
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workcanbequicklyconvertedtovalueformultiplestakeholdersdifferentiatingdeploymentmanagementfromreleasemanagementadvocatinga‘systemsview’thatemphasizesclosecollaborationbetweenenterprisegovernance,serviceteams,softwaredevelopment,andtechnologyoperations.
4.3.1 Focusonvalue
KeymessageAllactivitiesconductedbytheorganizationshouldlinkback,directlyorindirectly,tovalueforitself,itscustomers,andotherstakeholders.
Thissectionismostlyfocusedonthecreationofvalueforserviceconsumers.However,aservicealsocontributestovaluefortheorganizationandotherstakeholders.Thisvaluemaycomeinvariousforms,suchasrevenue,customerloyalty,lowercost,orgrowthopportunities.Thefollowingrecommendationscanbeadaptedtoaddressvariousstakeholdergroupsandthevaluethatiscreatedforthembytheorganization.
4.3.1.1Whoistheserviceconsumer?
Whenfocusingonvalue,thefirststepistoknowwhoisbeingserved.Ineachsituationtheserviceprovidermust,therefore,determinewhotheserviceconsumerisandwhothekeystakeholdersare(forexample,customers,users,orsponsors;seesection2.2formoredetails).Indoingthis,theserviceprovidershouldconsiderwhowillreceivevaluefromwhatisbeingdeliveredorimproved.
TheITILstory:Axle’snewtechnology
Axleisconsideringintroducingseveralpiecesofnewtechnologyintotheircars.InthefollowingsectionstheAxleteamlooksatwhatnewtechnologycouldbeintroducedandusestheITILguidingprinciplestohelpdecideonthebestcourseofaction.
Su:Oneaspectofourserviceweareconsideringisthecollectionandreturnof
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vehicles.Thisprocessremainsverymanual.Someofourregionaldepotscontinuetousepaper-basedformstoregistercustomers.Customersdon’twanttowastetimecompletingformsforidentificationwhenthisinformationhasalreadybeenprovidedduringtheonlinebookingprocess.
Toimprovethecustomeridentificationprocess,Axlecouldusebiometrictechnologytoidentifyourcustomers.
Marco:Biometrictechnologyusesscannedgraphicaldataforpersonalidentification.It’sfastandreliable,andwidelyusedinotherindustries.Forexample,theairlineindustryisusingitforsecurityscreening,check-in,andevenforaircraftboarding.Wecouldusefingerprintorfacialrecognitionscanstoquicklyidentifyourcustomers,andautomatethecarcollectionandreturnprocess.
Radhika:WeneedtobemindfulofregulationssuchasGDPRandthepossibleriskstodatasecuritythistechnologycouldbring.
Marco:Axlealsowantstotrialautomatedidentificationofdamagetoreturnedvehicles,includingscratches,dents,andbrokenlights.Potentiallythetechnologycouldevenidentifyfuellevels.Thiswouldautomatethecalculationofanyfuelchargesincurredbyourcustomers,whichisalsoamanualprocess.
Su:Ourcustomerswantsimplicityandspeedwhilemaintainingcomfortandsafetyontheroad.Biometrictechnologyandcarscanningwouldbeasourceofopportunitytomeetevolvingcustomerdemands.
Marco:Ourservicesalreadyrelyontechnology,andtheintelligenceofsmartphonesandpersonaldevicestomeetcustomerneedsandexpectations.Theadoptionofbiometrictechnologyisanaturalprogression.Anyonewhocanaccesstheirphonewithathumbprintorfacialrecognitionwillbecomfortableandconfidentusingthesametechnologytocollectorreturnacar.
Henri:Wecan’tmakethemistakeoftryingtoimplementeveryinnovationatonce,eveniftheyallsoundliketheidealsolutionforAxleCarHire.Weneedaframeworkinplacetomakesurevalueisrealized,andtogovernourdecisions.It’salsoimportantthatnoneofourexistingcustomersaredisadvantaged,evenasweventureintonewsurroundings.Forexample,notallourcustomersaretech-savvy.Thisisespeciallytrueforourelderlycustomers,whorepresentalargepercentageofourcustomerbaseforleisuretravel.Wealsoneedtobalanceinnovationwithexistingoperationaldemands.
4.3.1.2Theconsumer’sperspectivesofvalue
Nexttheserviceprovidermustunderstandwhatistrulyofvaluetotheservice
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consumer.Theserviceproviderneedstoknow:
whytheconsumerusestheserviceswhattheserviceshelpthemtodohowtheserviceshelpthemachievetheirgoalstheroleofcost/financialconsequencesfortheserviceconsumertherisksinvolvedfortheserviceconsumer.
Valuecancomeinmanyforms,suchasincreasedproductivity,reducednegativeimpact,reducedcosts,theabilitytopursuenewmarkets,orabettercompetitiveposition.Valuefortheserviceconsumer:
isdefinedbytheirownneedsisachievedthroughthesupportofintendedoutcomesandoptimizationoftheserviceconsumer’scostsandriskschangesovertimeandindifferentcircumstances.
4.3.1.3Thecustomerexperience
Animportantelementofvalueistheexperiencethatserviceconsumershavewhentheyinteractwiththeserviceandtheserviceprovider.Thisisfrequentlycalledcustomerexperience(CX)oruserexperience(UX)dependingontheadopteddefinitions,anditmustbeactivelymanaged.
CXcanbedefinedastheentiretyoftheinteractionsacustomerhaswithanorganizationanditsproducts.Thisexperiencecandeterminehowthecustomerfeelsabouttheorganizationanditsproductsandservices.
CXisbothobjectiveandsubjective.Forexample,whenacustomerordersaproductandreceiveswhattheyorderedatthepromisedpriceandinthepromiseddeliverytime,thesuccessofthisaspectoftheirexperienceisobjectivelymeasurable.Ontheotherhand,iftheydon’tlikethestyleorlayoutofthewebsitetheyareorderingfrom,thisissubjective.Anothercustomermightreallyenjoythedesign.
4.3.1.4Applyingtheprinciple
Toapplythisprinciplesuccessfully,considerthisadvice:
KnowhowserviceconsumersuseeachserviceUnderstandtheirexpectedoutcomes,howeachservicecontributestothese,andhowtheserviceconsumersperceivetheserviceprovider.Collectfeedbackonvalueonanongoingbasis,notjustatthebeginningoftheservicerelationship.EncourageafocusonvalueamongallstaffTeachstafftobeawareofwhotheircustomers
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areandtounderstandCX.FocusonvalueduringnormaloperationalactivityaswellasduringimprovementinitiativesTheorganizationasawholecontributestothevaluethatthecustomerperceives,andsoeverybodywithintheorganizationmustmaximizethevaluetheycreate.Thecreationofvalueshouldnotbeleftonlytothepeopleworkingonexcitingprojectsandnewthings.IncludefocusonvalueineverystepofanyimprovementinitiativeEverybodyinvolvedinanimprovementinitiativeneedstounderstandwhatoutcomestheinitiativeistryingtofacilitate,howitsvaluewillbemeasured,andhowtheyshouldbecontributingtotheco-creationofthatvalue.
TheITILstory:Focusonvalue
Radhika:WhenAxleexpandedtotheAsia-Pacificregion,weundertookresearchfocusedoncustomerstravellingoutsidetheirnativecountries.TheresultsfoundthatAmericanandEuropeancustomerstravellingtotheseareashadconcernsaroundunfamiliarroadrulesandsafety.
Marco:Axleisintroducingacertified,third-partydriverassistancesystemcalledAxleAware.Thesystemchecksexternalsurroundingsandinternalconditionsinthecar.Itincludescamerastomonitortheareaaroundthecar,andanartificialintelligenceprogramwithlocalroadrules.Itcanevenletthedriverknowwhenfatigueisstartingtosetin.
Thesystemwillalertthedrivertoapproachingdangersandpotentialroadrulebreaches.Forexample,inAustralia,localroadrulesdictatethatdriversarerequiredtogiveaminimumof1metrewhenpassingcyclistsataspeedof60km/horless,or1.5metreswhenthespeedismorethan60km/h.
Su:Manyvisitingtouristswillbemostlyfocusedondrivingonthecorrectsideoftheroadandwon’tknowaboutthisrule,buttheAxleAwaresystemdoes!
Marco:Studieshaveshownthatsystemssuchasthissignificantlydecreaseaccidentratesandseriousinjuries.
Su:Thismeansthatthevaluetoourconsumersisasafertravelexperience.Itwillbecheapertoo,astheywillhavefewerpenaltiesforbreakingrulestheyarenotfamiliarwith!
Henri:ThevalueforAxleCarHireisimprovedcustomersatisfaction,reducedrepaircostsandlowerinsurancepremiums.
Marco:Thistypeofinnovationwillalsoprovideadditionalvalueforsomeof
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ourpartnersandsuppliers.
Radhika:Forexample,we’veupdatedourcontractwithourfleetmaintenancepartner.MaintenancewillnowincludeAxleAware.Thevaluetoourmaintenancepartneristheadditionalrevenue.
4.3.2 Startwhereyouare
Keymessage
Intheprocessofeliminatingold,unsuccessfulmethodsorservicesandcreatingsomethingbetter,therecanbegreattemptationtoremovewhathasbeendoneinthepastandbuildsomethingcompletelynew.Thisisrarelynecessary,orawisedecision.Thisapproachcanbeextremelywasteful,notonlyintermsoftime,butalsointermsofthelossofexistingservices,processes,people,andtoolsthatcouldhavesignificantvalueintheimprovementeffort.Donotstartoverwithoutfirstconsideringwhatisalreadyavailabletobeleveraged.
TheITILstory:Axle’sbookingappMarco:
Marco:TheAxlebookingappwasfirstdevelopedtwoyearsago.Theappisnolongermeetingbusinessrequirements.Itcan’tcaterfortheadvancesintechnologywe’reusingnow,suchasthebiometricsystemandthedriverassistancesystem.
Forexample,weneedourapptohavethecapabilitytoscanandvalidateourcustomers’fingerprintsandfacialimages.Thecurrentcodingsimplycan’tsupportthat.Weneedanewapp!
4.3.2.1Assesswhereyouare
Servicesandmethodsalreadyinplaceshouldbemeasuredand/orobserveddirectlytoproperlyunderstandtheircurrentstateandwhatcanbere-usedfromthem.Decisionsonhowtoproceedshouldbebasedoninformationthatisasaccurateas
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possible.Withinorganizationsthereisfrequentlyadiscrepancybetweenreportsandreality.Thisisduetothedifficultyofaccuratelymeasuringcertaindata,ortheunintentionalbiasordistortionofdatathatisproducedthroughreports.Gettingdatafromthesourcehelpstoavoidassumptionswhich,ifproventobeunfounded,canbedisastroustotimelines,budgets,andthequalityofresults.
Thoseobservinganactivityshouldnotbeafraidtoaskwhatmayseemtobestupidquestions.Itcansometimesbebeneficialforapersonwithlittleornopriorknowledgeoftheservicetobepartoftheobservation,astheyhavenopreconceptionsoftheservice,andmayspotthingsthatthosemorecloselyinvolvedwithitwouldmiss.
TheITILstory:Assessingthecurrentstate
Henri:Everyonelikestheideaofanewapp,andITiskeentostartgatheringuserrequirementssothatwecanstartdevelopment.However,beforewedevelopanentirelynewapp,let’sassessthecurrentstateoftheappwehavetoseeifthere’sanyfunctionalitywecanre-use.
Thecurrentprocessforbookingacarmeetsbasicrequirements,anddoesn’tneedtochange.Wejustneedadditionalfunctionality.Forexample,theprocessforrecording,storing,andcalculatingpointsforourloyaltyprogrammewon’tchange.
Weshouldalsoconsiderthelimitsofthetechnologythatourcustomersuse.Ifwewanttointroducebiometricdatarecognition,userswillneedtohavemoderndevices.Iamnotsuretheyalldo,soweshouldinvestigateconstraintsandopportunitieshere.
Marco:Ourcurrentbookingappisworkingwell.Incidentdataindicatesthatcustomersmakeveryfewcallstotheservicedesk.Thisindicatesthatthecurrentfunctionalityisfitforuseandmeetscustomerrequirements.
Henri:However,ourfocusgroupsindicatethatcustomersavoidusingtheappbecauseit’sslowanddifficulttouse.Previously,upgradesfocusedontechnology,nottherequirementsofourcustomers.Wedidn’thavetheflexibilitytoeasilyconfigurefunctionalitytomatchnewandchangingserviceofferings.Sothereliabilityandusabilityofthebookingappcan’tbeassessedsolelyusingthedatafromincidentslogged.
Weneedtoconfirmthesefindingswithotherresearch.
4.3.2.2Theroleofmeasurement
Theuseofmeasurementisimportanttothisprinciple.Itshould,however,support
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butnotreplacewhatisobserved,asover-relianceondataanalyticsandreportingcanunintentionallyintroducebiasesandrisksindecision-making.Organizationsshouldconsideravarietyoftechniquestodevelopknowledgeoftheenvironmentsinwhichtheywork.Althoughitistruethatsomethingscanonlybeunderstoodthroughmeasuringtheireffect(forexample,naturalphenomenasuchasthewind),directobservationshouldalwaysbethepreferredoption.Toooftenexistingdataisusedwithnoconsiderationofdirectpersonalinvestigation.
Itshouldbenotedthattheactofmeasuringcansometimesaffecttheresults,makingtheminaccurate.Forexample,ifaservicedeskknowsitisbeingmonitoredonlengthoftimespentonthephone,itmightfocustoomuchonminimizingcustomerengagement(thusleadingtogoodreports),ratherthanactuallyhelpingusersresolveissuestotheirsatisfaction.Peopleareverycreativeinfindingwaystomeetthemetricstheyaremeasuredagainst.Therefore,metricsneedtobemeaningfulanddirectlyrelatetothedesiredoutcome.
‘Whenameasurebecomesatarget,itceasestobeagoodmeasureGoodhart’sLaw’
4.3.2.3Applyingtheprinciple
Havingaproperunderstandingofthecurrentstateofservicesandmethodsisimportanttoselectingwhichelementstore-use,alter,orbuildupon.Toapplythisprinciplesuccessfully,considerthisadvice:
Lookatwhatexistsasobjectivelyaspossible,usingthecustomerorthedesiredoutcomeasthestartingpoint.Aretheelementsofthecurrentstatefitforpurposeandfitforuse?Therearelikelytobemanyelementsofthecurrentservices,practices,projects,andskillsthatcanbeusedtocreatethedesiredfuturestate,providedthepeoplemakingthisjudgementareobjective.Whenexamplesofsuccessfulpracticesorservicesarefoundinthecurrentstate,determineifandhowthesecanbereplicatedorexpandedupontoachievethedesiredstate.Inmany,ifnotmost,cases,leveragingwhatalreadyexistswillreducetheamountofworkneededtotransitionfromthecurrentstatetothedesiredstate.Thereshouldbeafocusonlearningandimprovement,notjustreplicationandexpansion.Applyyourriskmanagementskills.Therearerisksassociatedwithre-usingexistingpracticesandprocesses,suchasthecontinuationofoldbehavioursthataredamagingtotheservice.Therearealsorisksassociatedwithputtingsomethingnewinplace,suchasnewproceduresnotbeingperformedcorrectly.Theseshouldbeconsideredaspartofthedecision-makingprocess,andtherisksofmakingornotmakingachangeevaluatedtodecideonthebestcourseofaction.Recognizethatsometimesnothingfromthecurrentstatecanbere-used.
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Regardlessofhowdesirableitmaybetore-use,repurposeandrecycle,orevenupcycle,therewillbetimeswhentheonlywaytoachievethedesiredresultistostartoverentirely.Itshouldbenoted,however,thatthesesituationsareveryrare.
4.3.3 Progressiterativelywithfeedback
KeymessageResistthetemptationtodoeverythingatonce.Evenhugeinitiativesmustbeaccomplishediteratively.Byorganizingworkintosmaller,manageablesectionsthatcanbeexecutedandcompletedinatimelymanner,thefocusoneacheffortwillbesharperandeasiertomaintain.
Improvementiterationscanbesequentialorsimultaneous,basedontherequirementsoftheimprovementandwhatresourcesareavailable.Eachindividualiterationshouldbebothmanageableandmanaged,ensuringthattangibleresultsarereturnedinatimelymannerandbuiltupontocreatefurtherimprovement.
Amajorimprovementinitiativeorprogrammemaybeorganizedintoseveralsignificantimprovementinitiatives,andeachofthesemay,inturn,comprisesmallerimprovementefforts.Theoverallinitiativeorprogramme,aswellasitscomponentiterations,mustbecontinuallyre-evaluatedandpotentiallyrevisedtoreflectanychangesincircumstancesandensurethatthefocusonvaluehasnotbeenlost.Thisre-evaluationshouldmakeuseofawiderangeoffeedbackchannelsandmethodstoensurethatthestatusoftheinitiativeanditsprogressareproperlyunderstood.
4.3.3.1Theroleoffeedback
Whetherworkingtoimproveaservice,groupofservices,practice,process,technicalenvironment,orotherservicemanagementelement,noimprovementiterationoccursinavacuum.Whiletheiterationisbeingundertaken,circumstancescanchangeandnewprioritiescanarise,andtheneedfortheiterationmaybealteredoreveneliminated.Seekingandusingfeedbackbefore,throughout,andaftereachiterationwillensurethatactionsarefocusedandappropriate,eveninchangingcircumstances.
Afeedbackloopisatermcommonlyusedtorefertoasituationwherepartoftheoutputofanactivityisusedfornewinput.Inawell-functioningorganization,
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feedbackisactivelycollectedandprocessedalongthevaluechain.Well-constructedfeedbackmechanismsfacilitateunderstandingof:
enduserandcustomerperceptionofthevaluecreatedtheefficiencyandeffectivenessofvaluechainactivitiestheeffectivenessofservicegovernanceaswellasmanagementcontrolstheinterfacesbetweentheorganizationanditspartnerandsuppliernetworkthedemandforproductsandservices.
Oncereceived,feedbackcanbeanalysedtoidentifyimprovementopportunities,risks,andissues.
4.3.3.2Iterationandfeedbacktogether
Workinginatimeboxed,iterativemannerwithfeedbackloopsembeddedintotheprocessallowsfor:
greaterflexibilityfasterresponsestocustomerandbusinessneedstheabilitytodiscoverandrespondtofailureearlieranoverallimprovementinquality.
Havingappropriatefeedbackloopsbetweentheparticipantsofanactivitygivesthemabetterunderstandingofwheretheirworkcomesfrom,wheretheiroutputsgo,andhowtheiractionsandoutputsaffecttheoutcomes,whichinturnenablesthemtomakebetterdecisions.
TheITILstory:Progressiteratively
Marco:It’snowbeenthreemonthssinceAxlereleasedthefirstiterationofitsnewapp.WebeganbymakingitavailablesolelytotrustedVIPcustomers.Weworkedwiththeirfeedbacktorefinethebookingprocess.
Radhika:Welearnedthattheappneededtobeflexiblesowecouldmakechangeseasilybasedonrapidlyevolvingcustomerrequirements.Forexample,ourbusinesscustomerswantedtheapptoautomaticallyrecorddistancetravelled.Workingwithourproductteam,wewereeasilyabletoaddthisfunctionality.
Su:Theappisnoweasilyconfigurable,allowingAxletoquicklyaddnewfunctionsandfeaturesbasedoncustomerfeedback.
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4.3.3.3Applyingtheprinciple
Toapplythisprinciplesuccessfully,considerthisadvice:
Comprehendthewhole,butdosomethingSometimesthegreatestenemytoprogressingiterativelyisthedesiretounderstandandaccountforeverything.Thiscanleadtowhatissometimescalled‘analysisparalysis’,inwhichsomuchtimeisspentanalysingthesituationthatnothingevergetsdoneaboutit.Understandingthebigpictureisimportant,butsoismakingprogress.Theecosystemisconstantlychanging,sofeedbackisessentialChangeishappeningconstantly,soitisveryimportanttoseekandusefeedbackatalltimesandatalllevels.FastdoesnotmeanincompleteJustbecauseaniterationissmallenoughtobedonequicklydoesnotmeanthatitshouldnotincludealltheelementsnecessaryforsuccess.Anyiterationshouldbeproducedinlinewiththeconceptoftheminimumviableproduct.Aminimumviableproductisaversionofthefinalproductwhichallowsthemaximumamountofvalidatedlearningwiththeleasteffort.
4.3.4 Collaborateandpromotevisibility
KeymessageWheninitiativesinvolvetherightpeopleinthecorrectroles,effortsbenefitfrombetterbuy-in,morerelevance(becausebetterinformationisavailablefordecision-making)andincreasedlikelihoodoflong-termsuccess.
Creativesolutions,enthusiasticcontributions,andimportantperspectivescanbeobtainedfromunexpectedsources,soinclusionisgenerallyabetterpolicythanexclusion.Cooperationandcollaborationarebetterthanisolatedwork,whichisfrequentlyreferredtoas‘siloactivity’.Siloscanoccurthroughthebehaviourofindividualsandteams,butalsothroughstructuralcauses.Thistypicallyhappenswherefunctionsorbusinessunitsinanorganizationareimpededorunabletocollaborate,becausetheirprocesses,systems,documentation,andcommunicationsaredesignedtofulfiltheneedsofonlyaspecificpartoftheorganization.Applyingtheguidingprincipleofthinkandworkholistically(seesection4.3.5)canhelporganizationstobreakdownbarriersbetweensilosofwork.
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RecognitionoftheneedforgenuinecollaborationhasbeenoneofthedrivingfactorsintheevolutionofwhatisnowknownasDevOps.Withouteffectivecollaboration,neitherAgile,Lean,noranyotherITSMframeworkormethodwillwork.
Workingtogetherinawaythatleadstorealaccomplishmentrequiresinformation,understanding,andtrust.Workanditsresultsshouldbemadevisible,hiddenagendasshouldbeavoided,andinformationshouldbesharedtothegreatestdegreepossible.Themorepeopleareawareofwhatishappeningandwhy,themoretheywillbewillingtohelp.
Whenimprovementactivityoccursinrelativesilence,orwithonlyasmallgroupbeingawareofthedetails,assumptionsandrumourscanprevail.Resistancetochangewilloftenariseasstaffmembersspeculateaboutwhatischangingandhowitmightimpactthem.
4.3.4.1Whomtocollaboratewith
Identifyingandmanagingallthestakeholdergroupsthatanorganizationdealswithisimportant,asthepeopleandperspectivesnecessaryforsuccessfulcollaborationcanbesourcedwithinthesestakeholdergroups.Asthenamesuggests,astakeholderisanyonewhohasastakeintheactivitiesoftheorganization,includingtheorganizationitself,itscustomersand/orusers,andmanyothers.Thescopeofstakeholderscanbeextensive.
Thefirstandmostobviousstakeholdergroupisthecustomers.Themaingoalofaserviceprovideristofacilitateoutcomesthatitscustomersareinterestedin,sothecustomershavealargestakeintheserviceprovider’sabilitytomanageserviceseffectively.Someorganizations,however,doapoorjobofinteractingwithcustomers.Aserviceprovidermayfeelthatitistoodifficulttogetinputorfeedbackfromthecustomer,andthattheresultingdelaysareawasteoftime.Equally,customersmayfeelthat,aftertheyhavedefinedtheirrequirements,theserviceprovidercanbelefttodelivertheservicewithnofurthercontactneeded.Whenitcomestotheimprovementofaserviceprovider’spractices,thecustomermaynotseeanyneedtobeinvolvedatall.Intheend,however,therightlevelofcollaborationwithcustomerswillleadtobetteroutcomesfortheorganization,itscustomers,andotherstakeholders.
Otherexamplesofstakeholdercollaborationinclude:
developersworkingwithotherinternalteamstoensurethatwhatisbeingdevelopedcanbeoperatedefficientlyandeffectively.Developersshouldcollaboratewithtechnicalandnon-technicaloperationalteamstomakesurethattheyareready,willing,andabletotransitiontheneworchangedserviceintooperation,perhapsevenparticipatingintesting.Developerscanalsowork
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withoperationsteamstoinvestigatedefects(problems)andtodevelopworkaroundsorpermanentfixestoresolvethesedefectssupplierscollaboratingwiththeorganizationtodefineitsrequirementsandbrainstormsolutionstocustomerproblemsrelationshipmanagerscollaboratingwithserviceconsumerstoachieveacomprehensiveunderstandingofserviceconsumerneedsandprioritiescustomerscollaboratingwitheachothertocreateasharedunderstandingoftheirbusinessissuesinternalandexternalsupplierscollaboratingwitheachothertoreviewsharedprocessesandidentifyopportunitiesforoptimizationandpotentialautomation.
4.3.4.2Communicationforimprovement
Thecontributiontoimprovementofeachstakeholdergroupateachlevelshouldbeunderstood;itisalsoimportanttodefinethemosteffectivemethodstoengagewiththem.Forexample,thecontributiontoimprovementfromcustomersofapubliccloudservicemaybethroughasurveyorchecklistofoptionsfordifferentfunctionalities.Foraninternalcustomergroup,thecontributiontoimprovementmaycomefromfeedbacksolicitedviaaworkshoporacollaborationtoolontheorganization’sintranet.
Somecontributorsmayneedtobeinvolvedataverydetailedlevel,whileotherscansimplybeinvolvedasreviewersorapprovers.Dependingontheserviceandtherelationshipbetweentheserviceproviderandtheserviceconsumer,theexpectationsaboutthelevelandtypeofcollaborationcanvarysignificantly.
4.3.4.3Increasingurgencythroughvisibility
Whenstakeholders(whetherinternalorexternal)havepoorvisibilityoftheworkloadandprogressionofwork,thereisariskofcreatingtheimpressionthattheworkisnotapriority.Ifaninitiativeiscommunicatedtoateam,department,oranotherorganizationandthenisnever,orrarely,mentionedagain,theperceptionwillbethatthechangeisnotimportant.Equally,whenstaffmembersattempttoprioritizeimprovementworkversusothertasksthathavedailyurgency,improvementworkmayseemtobealow-priorityactivityunlessitsimportancehasbeenmadetransparentanditissupportedbytheorganization’smanagement.
Insufficientvisibilityofworkleadstopoordecision-making,whichinturnimpactstheorganization’sabilitytoimproveinternalcapabilities.Itwillthenbecomedifficulttodriveimprovementsasitwillnotbeclearwhichonesarelikelytohavethegreatestpositiveimpactonresults.Toavoidthis,theorganizationneedstoperformsuchcriticalanalysisactivitiesas:
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understandingtheflowofworkinprogressidentifyingbottlenecks,aswellasexcesscapacityuncoveringwaste.
Itisimportanttoinvolveandaddresstheneedsofstakeholdersatalllevels.Leadersatvariouslevelsshouldalsoprovideappropriateinformationrelatingtotheimprovementworkintheirowncommunicationstoothers.Together,theseactionswillservetoreinforcewhatisbeingdone,whyitisbeingdone,andhowitrelatestothestatedvision,mission,goals,andobjectivesoftheorganization.Determiningthetype,method,andfrequencyofsuchmessagingisoneofthecentralactivitiesrelatedtocommunication.
TheITILstory:Workingcollaboratively
Henri:Aswellasbeingiterative,ourworkonthenewAxlebookingappisalsocollaborative.Weincludemanyofourteams,suchasdevelopers,testers,andsupportstaff,andofcourse,ourcustomersandusers.Thisapproachenablesustoimproveourservicesinamoreresponsiveandtargetedmanner,basedonfeedback.
4.3.4.4Applyingtheprinciple
Toapplythisprinciplesuccessfully,considerthisadvice:
CollaborationdoesnotmeanconsensusItisnotnecessary,orevenalwayswise,togetconsensusfromeveryoneinvolvedinaninitiativebeforeproceeding.Someorganizationsaresoconcernedwithgettingconsensusthattheytrytomakeeveryonehappyandendupeitherdoingnothingorproducingsomethingthatdoesnotproperlysuitanyone’sneeds.CommunicateinawaytheaudiencecanhearInanattempttobringdifferentstakeholdersintotheloop,manyorganizationsuseverytraditionalmethodsofcommunication,ortheyusethesamemethodforallcommunication.Selectingtherightmethodandmessageforeachaudienceiscriticalforsuccess.DecisionscanonlybemadeonvisibledataMakingdecisionsintheabsenceofdataisrisky.Decisionsshouldbemadeaboutwhatdataisneeded,andthereforewhatworkneedstobemadevisible.Theremaybeacosttocollectingdata,andtheorganizationmustbalancethatcostagainstthebenefitandintendedusageofthedata.
4.3.5 Thinkandworkholistically
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KeymessageNoservice,practice,process,department,orsupplierstandsalone.Theoutputsthattheorganizationdeliverstoitself,itscustomers,andotherstakeholderswillsufferunlessitworksinanintegratedwaytohandleitsactivitiesasawhole,ratherthanasseparateparts.Alltheorganization’sactivitiesshouldbefocusedonthedeliveryofvalue.
Servicesaredeliveredtointernalandexternalserviceconsumersthroughthecoordinationandintegrationofthefourdimensionsofservicemanagement(seeChapter3).
Takingaholisticapproachtoservicemanagementincludesestablishinganunderstandingofhowallthepartsofanorganizationworktogetherinanintegratedway.Itrequiresend-to-endvisibilityofhowdemandiscapturedandtranslatedintooutcomes.Inacomplexsystem,thealterationofoneelementcanimpactothersand,wherepossible,theseimpactsneedtobeidentified,analysedandplannedfor.
TheITILstory:Thinkandworkholistically
Su:Currently,Axleisworkingonmanyinitiatives.Wehaveascheduleofiterativereleasesofournewbookingapp,aswellasourAxleAwareadvanceddriverassistancesystem,andthenewbiometricscanningforcollectionandreturnofvehicles.
Henri:Withsomuchactivity,weneedtounderstandtheimpactsbothupstreamanddownstream.Forexample,adecisiontoexpandourbookingappwithanewfunctionalitywouldneedtoconsideranyresourceconstraintsforoursupportteams.
4.3.5.1Applyingtheprinciple
Toapplythisprinciplesuccessfully,considerthisadvice:
RecognizethecomplexityofthesystemsDifferentlevelsofcomplexityrequiredifferentheuristicsfordecision-making.Applyingmethodsandrulesdesignedforasimplesystemcanbeineffectiveorevenharmfulinacomplexsystem,whererelationshipsbetweencomponentsarecomplicatedandchangemorefrequently.CollaborationiskeytothinkingandworkingholisticallyIftheright
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mechanismsareputinplaceforallrelevantstakeholderstocollaborateinatimelymanner,itwillbepossibletoaddressanyissueholisticallywithoutbeingundulydelayed.Wherepossible,lookforpatternsintheneedsofandinteractionsbetweensystemelementsDrawonknowledgeineachareatoidentifywhatisessentialforsuccess,andwhichrelationshipsbetweenelementsinfluencetheoutcomes.Withthisinformation,needscanbeanticipated,standardscanbeset,andaholisticviewpointcanbeachieved.AutomationcanfacilitateworkingholisticallyWheretheopportunityandsufficientresourcesareavailable,automationcansupportend-to-endvisibilityfortheorganizationandprovideanefficientmeansofintegratedmanagement.
4.3.6 Keepitsimpleandpractical
KeymessageAlwaysusetheminimumnumberofstepstoaccomplishanobjective.Outcome-basedthinkingshouldbeusedtoproducepracticalsolutionsthatdelivervaluableoutcomes.Ifaprocess,service,action,ormetricfailstoprovidevalueorproduceausefuloutcome,theneliminateit.Althoughthisprinciplemayseemobvious,itisfrequentlyignored,resultinginoverlycomplexmethodsofworkthatrarelymaximizeoutcomesorminimizecost.
Tryingtoprovideasolutionforeveryexceptionwilloftenleadtoover-complication.Whencreatingaprocessoraservice,designersneedtothinkaboutexceptions,buttheycannotcoverthemall.Instead,rulesshouldbedesignedthatcanbeusedtohandleexceptionsgenerally.
TheITILstory:Judgingwhattokeep
Su:Axle’smarketingdepartmenthasindicatedtheywouldliketolaunchanewend-of-yearpromotion.ThepromotionwouldincludeafreeupgradetoaluxuryvehicleduringFebruaryandthechancetowinanoverseasholiday.
Toenter,customerswillsubmitanarticletitled‘MyBestDrivingHolidayAdventure’.Themarketingteamwillthencollectandanalysethecustomerdataandcreateanappthattargetstheirtravelpreferences.
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Henri:Ourdevelopersarealreadybusywithanimplementationscheduleforbiometricservices.Weneedspeedtomarketforthisfunctionality.Wemustprioritizeourworkbasedontheexpectedvalue.
4.3.6.1Judgingwhattokeep
Whenanalysingapractice,process,service,metric,orotherimprovementtarget,alwaysaskwhetheritcontributestovaluecreation.
Whendesigningorimprovingservicemanagement,itisbettertostartwithanuncomplicatedapproachandthencarefullyaddcontrols,activities,ormetricswhenitisseenthattheyaretrulyneeded.
Criticaltokeepingservicemanagementsimpleandpracticalisunderstandingexactlyhowsomethingcontributestovaluecreation.Forexample,astepinaprocessmaybeperceivedbytheoperationalstaffinvolvedasawasteoftime.However,fromacorporateperspective,thesamestepmaybeimportantforregulatorycomplianceandthereforevaluableinanindirect,butneverthelessimportant,way.Itisnecessarytoestablishandcommunicateaholisticviewoftheorganization’sworksothatindividualteamsorgroupscanthinkholisticallyabouthowtheirworkisbeinginfluencedby,andinturninfluences,others.
TheITILstory:Judgingwhattokeep
Marco:Ouroriginalbookingappcapturedalotofdata,suchashowlongittookacustomertocompleteeachforminthebookingapp.Butwediscoveredthatthedataprovidedlittlevaluefordecision-making.Thetruevaluelayinhowlongtheoverallbookingprocesstook.Werefinedthebookingappfieldsandimproveditsoverallspeedbyremovingthisdatacapturefunction.
4.3.6.2Conflictingobjectives
Whendesigning,managing,oroperatingpractices,bemindfulofconflictingobjectives.Forexample,themanagementofanorganizationmaywanttocollectalargeamountofdatatomakedecisions,whereasthepeoplewhomustdotherecord-keepingmaywantasimplerprocessthatdoesnotrequireasmuchdataentry.Throughtheapplicationofthisandtheotherguidingprinciples,theorganizationshouldagreeonabalancebetweenitscompetingobjectives.Inthisexample,thiscouldmeanthatservicesshouldonlygeneratedatathatwilltrulyprovidevaluetothedecision-makingprocess,andrecord-keepingshouldbesimplifiedandautomatedwherepossibletomaximizevalueandreducenon-value-addingwork.
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4.3.6.3Applyingtheprinciple
Toapplythisprinciplesuccessfully,considerthisadvice:
EnsurevalueEveryactivityshouldcontributetothecreationofvalue.SimplicityistheultimatesophisticationItmayseemhardertosimplify,butitisoftenmoreeffective.Dofewerthings,butdothembetterMinimizingactivitiestoincludeonlythosewithvalueforoneormorestakeholderswillallowmorefocusonthequalityofthoseactions.RespectthetimeofthepeopleinvolvedAprocessthatistoocomplicatedandbureaucraticisapooruseofthetimeofthepeopleinvolved.Easiertounderstand,morelikelytoadoptToembedapractice,makesureitiseasytofollow.SimplicityisthebestroutetoachievingquickwinsWhetherinaproject,orwhenimprovingdailyoperationsactivities,quickwinsalloworganizationstodemonstrateprogressandmanagestakeholderexpectations.Workinginaniterativewaywithfeedbackwillquicklydeliverincrementalvalueatregularintervals.
4.3.7 Optimizeandautomate
Keymessage
Organizationsmustmaximizethevalueoftheworkcarriedoutbytheirhumanandtechnicalresources.Thefourdimensionsmodel(outlinedinChapter3)providesaholisticviewofthevariousconstraints,resourcetypes,andotherareasthatshouldbeconsideredwhendesigning,managing,oroperatinganorganization.Technologycanhelporganizationstoscaleupandtakeonfrequentandrepetitivetasks,allowinghumanresourcestobeusedformorecomplexdecision-making.However,technologyshouldnotalwaysberelieduponwithoutthecapabilityofhumanintervention,asautomationforautomation’ssakecanincreasecostsandreduceorganizationalrobustnessandresilience.
Optimizationmeanstomakesomethingaseffectiveandusefulasitneedstobe.Beforeanactivitycanbeeffectivelyautomated,itshouldbeoptimizedtowhateverdegreeispossibleandreasonable.Itisessentialthatlimitsaresetonthe
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optimizationofservicesandpractices,astheyexistwithinasetofconstraintswhichmayincludefinanciallimitations,compliancerequirements,timeconstraints,andresourceavailability.
4.3.7.1Theroadtooptimization
Therearemanywaysinwhichpracticesandservicescanbeoptimized.TheconceptsandpracticesdescribedinITIL,particularlythepracticesofcontinualimprovement,andmeasurementandreporting(seesections5.1.2and5.1.5),areessentialtothiseffort.ThespecificpracticesanorganizationusestoimproveandoptimizeperformancemaydrawuponguidancefromITIL,Lean,DevOps,Kanban,andothersources.Regardlessofthespecifictechniques,thepathtooptimizationfollowsthesehigh-levelsteps:
UnderstandandagreethecontextinwhichtheproposedoptimizationexistsThisincludesagreeingtheoverallvisionandobjectivesoftheorganization.AssessthecurrentstateoftheproposedoptimizationThiswillhelptounderstandwhereitcanbeimprovedandwhichimprovementopportunitiesarelikelytoproducethebiggestpositiveimpact.Agreewhatthefuturestateandprioritiesoftheorganizationshouldbe,focusingonsimplificationandvalueThistypicallyalsoincludesstandardizationofpracticesandservices,whichwillmakeiteasiertoautomateoroptimizefurtheratalaterpoint.EnsuretheoptimizationhastheappropriatelevelofstakeholderengagementandcommitmentExecutetheimprovementsinaniterativewayUsemetricsandotherfeedbacktocheckprogress,stayontrack,andadjusttheapproachtotheoptimizationasneeded.ContinuallymonitortheimpactofoptimizationThiswillhelptoidentifyopportunitiestoimprovemethodsofworking.
4.3.7.2Usingautomation
Automationtypicallyreferstotheuseoftechnologytoperformasteporseriesofstepscorrectlyandconsistentlywithlimitedornohumanintervention.Forexample,inorganizationsadoptingcontinuousdeployment,itreferstotheautomaticandcontinuousreleaseofcodefromdevelopmentthroughtolive,andoftenautomatictestingoccurringineachenvironment.Initssimplestform,however,automationcouldalsomeanthestandardizationandstreamliningofmanualtasks,suchasdefiningtherulesofpartofaprocesstoallowdecisionstobemade‘automatically’.Efficiencycanbegreatlyincreasedbyreducingtheneedforhumaninvolvementtostopandevaluateeachpartofaprocess.
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Opportunitiesforautomationcanbefoundacrosstheentireorganization.Lookingforopportunitiestoautomatestandardandrepeatingtaskscanhelpsavetheorganizationcosts,reducehumanerror,andimproveemployeeexperience.
TheITILstory:Optimizeandautomate
Marco:Axlehasstartedtotrialthenewbiometrictechnology,andthetestsaregoingwell.We’rekeentoimplementthistechnologyinallourdepots.
Radhika:BeforeAxleintroducedbiometrics,thereweremanymanual,paper-basedprocesses.Axlestaffusedpapercheckliststocarryoutvehicledamagechecks.Theirnotesthenhadtobeenteredinadatabase,whichwasonlyavailableondesktopcomputers.Itwasnotrealtimeoraccessibleacrossothersystems.
Su:Thisworkwasusuallyputasideuntiltheendoftheday,anddetailswereoftenlost.Wehadtoimprovetheprocessofdatacapturebeforeautomating.
Radhika:Wecanautomatealmostanything.Butlet’sgetthebusinessrulesandprocessesrightfirst.
4.3.7.3Applyingtheprinciple
Toapplythisprinciplesuccessfully,considerthisadvice:
Simplifyand/oroptimizebeforeautomatingAttemptingtoautomatesomethingthatiscomplexorsub-optimalisunlikelytoachievethedesiredoutcome.Taketimetomapoutthestandardandrepeatingprocessesasfaraspossible,andstreamlinewhereyoucan(optimize).Fromthereyoucanstarttoautomate.DefineyourmetricsTheintendedandactualresultoftheoptimizationshouldbeevaluatedusinganappropriatesetofmetrics.Usethesamemetricstodefinethebaselineandmeasuretheachievements.Makesurethatthemetricsareoutcome-basedandfocusedonvalue.UsetheotherguidingprincipleswhenapplyingthisoneWhenoptimizingandautomating,itissmarttofollowtheotherprinciplesaswell:
ProgressiterativelywithfeedbackIterativeoptimizationandautomationwillmakeprogressvisibleandincreasestakeholderbuy-inforfutureiterations.KeepitsimpleandpracticalItispossibleforsomethingtobesimple,butnotoptimized,sousethesetwoprinciplestogetherwhenselectingimprovements.
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FocusonvalueSelectingwhattooptimizeandautomateandhowtodososhouldbebasedonwhatwillcreatethebestvaluefortheorganization.StartwhereyouareThetechnologyalreadyavailableintheorganizationmayhavefeaturesandfunctionalitiesthatarecurrentlyuntappedorunder-utilized.Makeuseofwhatisalreadytheretoimplementopportunitiesforoptimizationandautomationquicklyandeconomically.
4.3.8 Principleinteraction
AswellasbeingawareoftheITILguidingprinciples,itisalsoimportanttorecognizethattheyinteractwithanddependuponeachother.Forexample,ifanorganizationiscommittedtoprogressingiterativelywithfeedback,itshouldalsothinkandworkholisticallytoensurethateachiterationofanimprovementincludesalltheelementsnecessarytodeliverrealresults.Similarly,makinguseofappropriatefeedbackiskeytocollaboration,andfocusingonwhatwilltrulybevaluabletothecustomermakesiteasiertokeepthingssimpleandpractical.
Organizationsshouldnotusejustoneortwooftheprinciples,butshouldconsidertherelevanceofeachofthemandhowtheyapplytogether.Notallprincipleswillbecriticalineverysituation,buttheyshouldallbereviewedoneachoccasiontodeterminehowappropriatetheyare.
4.4Governance
4.4.1 Governingbodiesandgovernance
KeymessageEveryorganizationisdirectedbyagoverningbody,i.e.apersonorgroupofpeoplewhoareaccountableatthehighestlevelfortheperformanceandcomplianceoftheorganization.Allsizesandtypesoforganizationperformgovernanceactivities;thegoverningbodymaybeaboardofdirectorsorexecutivemanagerswhotakeonaseparategovernancerolewhentheyareperforminggovernanceactivities.Thegoverningbodyisaccountablefortheorganization’scompliancewithpoliciesandanyexternalregulations.
Organizationalgovernanceisasystembywhichanorganizationisdirectedand
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controlled.Governanceisrealizedthroughthefollowingactivities:
EvaluateTheevaluationoftheorganization,itsstrategy,portfolios,andrelationshipswithotherparties.Thegoverningbodyevaluatestheorganizationonaregularbasisasstakeholders’needsandexternalcircumstancesevolve.DirectThegoverningbodyassignsresponsibilityfor,anddirectsthepreparationandimplementationof,organizationalstrategyandpolicies.Strategiessetthedirectionandprioritizationfororganizationalactivity,futureinvestment,etc.Policiesestablishtherequirementsforbehaviouracrosstheorganizationand,whererelevant,suppliers,partners,andotherstakeholders.MonitorThegoverningbodymonitorstheperformanceoftheorganizationanditspractices,products,andservices.Thepurposeofthisistoensurethatperformanceisinaccordancewithpoliciesanddirection.
Organizationalgovernanceevaluates,directs,andmonitorsalltheorganization’sactivities,includingthoseofservicemanagement.
4.4.2 GovernanceintheSVS
TheroleandpositionofgovernanceintheITILSVSdependsonhowtheSVSisappliedinanorganization.TheSVSisauniversalmodelthatcanbeappliedtoanorganizationasawhole,ortooneormoreofitsunitsorproducts.Inthelattercase,someorganizationsdelegateauthoritytoperformgovernanceactivitiesatdifferentlevels.Thegoverningbodyoftheorganizationshouldretainoversightofthistoensurealignmentwiththeobjectivesandprioritiesoftheorganization.
InITIL4,theguidingprinciplesandcontinualimprovementapplytoallcomponentsoftheSVS,includinggovernance.Inanorganization,thegoverningbodycanadopttheITILguidingprinciplesandadaptthem,ordefineitsownspecificsetofprinciplesandcommunicatethemacrosstheorganization.Thegoverningbodyshouldalsohavevisibilityoftheoutcomesofcontinualimprovementactivitiesandthemeasurementofvaluefortheorganizationanditsstakeholders.
RegardlessofthescopeoftheSVSandthepositioningofthecomponents,itiscrucialtomakesurethat:
theservicevaluechainandtheorganization’spracticesworkinlinewiththedirectiongivenbythegoverningbodythegoverningbodyoftheorganization,eitherdirectlyorthroughdelegationofauthority,maintainsoversightoftheSVSboththegoverningbodyandmanagementatalllevelsmaintainalignmentthroughaclearsetofsharedprinciplesandobjectivesthegovernanceandmanagementatalllevelsarecontinuallyimprovedtomeetexpectationsofthestakeholders.
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4.5Servicevaluechain
ThecentralelementoftheSVSistheservicevaluechain,anoperatingmodelwhichoutlinesthekeyactivitiesrequiredtorespondtodemandandfacilitatevaluerealizationthroughthecreationandmanagementofproductsandservices.
AsshowninFigure4.2,theITILservicevaluechainincludessixvaluechainactivitieswhichleadtothecreationofproductsandservicesand,inturn,value.
Figure4.2TheITILservicevaluechain
KeymessageThesixvaluechainactivitiesare:
planimproveengagedesignandtransitionobtain/builddeliverandsupport.
Theseactivitiesrepresentthestepsanorganizationtakesinthecreationofvalue.Eachactivitytransformsinputsintooutputs.Theseinputscanbe
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demandfromoutsidethevaluechainoroutputsofotheractivities.Alltheactivitiesareinterconnected,witheachactivityreceivingandprovidingtriggersforfurtheraction.
Toconvertinputsintooutputs,thevaluechainactivitiesusedifferentcombinationsofITILpractices(setsofresourcesforperformingcertaintypesofwork),drawingoninternalorthird-partyresources,processes,skills,andcompetenciesasrequired.Forexample,theengageactivitymightdrawonsuppliermanagement,servicedeskmanagement,relationshipmanagement,andservicerequestmanagementtorespondtonewdemandsforproductsandservices,orinformationfromvariousstakeholders(seeChapter5formoreinformationonpractices).
Regardlessofwhichpracticesaredeployed,therearesomecommonruleswhenusingtheservicevaluechain:
AllincomingandoutgoinginteractionswithpartiesexternaltothevaluechainareperformedviaengageAllnewresourcesareobtainedthroughobtain/buildPlanningatalllevelsisperformedviaplanImprovementsatalllevelsareinitiatedandmanagedviaimprove.
Tocarryoutacertaintaskorrespondtoaparticularsituation,organizationscreateservicevaluestreams.Thesearespecificcombinationsofactivitiesandpractices,andeachoneisdesignedforaparticularscenario.Oncedesigned,valuestreamsshouldbesubjecttocontinualimprovement.
Avaluestreammight,forexample,becreatedforasituationwhereauserofaserviceneedsanincidenttoberesolved.Thevaluestreamwillbedesignedspecificallytoresolvethisissue,andwillprovideacompleteguidetotheactivities,practices,androlesinvolved.AmoredetailedoutlineofthisandotherexamplesofvaluestreamscanbefoundinAppendixA.
Exampleofaservicevaluechain,itspractices,andvaluestreams
Amobileapplicationdevelopmentcompanyhasavaluechain,enablingthefullcycleofapplicationdevelopmentandmanagement,frombusinessanalysistodevelopment,release,andsupport.Thecompanyhasdevelopedanumberofpractices,supportedwithspecializedresourcesandtechniques:
businessanalysisdevelopmenttestingreleaseanddeployment
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support.
Althoughthehigh-levelstepsareuniversal,differentproductsandclientsneeddifferentstreamsofwork.Forexample:
Thedevelopmentofanewapplicationforanewclientstartswithinitialengagement(pre-sale),thenproceedstobusinessanalysis,prototyping,thedrawingupofagreements,development,testing,andeventuallytoreleaseandsupport.Changinganexistingapplicationtomeetnewrequirementsofexistingclientsdoesnotincludepre-saleandinvolvesbusinessanalysis,development,testing,andsupportinadifferentway.Fixinganerrorinaliveapplicationmaybeinitiatedinsupport,proceedwithrollingbacktoapreviousstableversion(release),thenmovestodevelopment,testing,andreleaseofafix.Experimentswithneworexistingapplicationstoexpandthetargetaudiencemaystartwithinnovationplanningandprototyping,thenproceedtodevelopment,andeventuallytoapilotreleaseforalimitedgroupofuserstotesttheirperceptionofthechangesmade.
Theseareexamplesofvaluestreams:theycombinepracticesandvaluechainactivitiesinvariouswaystoimproveproductsandservicesandincreasepotentialvaluefortheconsumersandtheorganization.
ITSMinthemodernworld:AgileITSM
Foranorganizationtobesuccessful,itmustbeabletoadapttochangingcircumstanceswhileremainingfunctionalandeffective.Thismightincludechangestotheproductsandservicesitprovidesandconsumes,aswellaschangestoitsstructureandpractices.Inthemodernworld,whereITisessentialforallorganizations,ITandITmanagementareexpectedtobeAgile.
FormanyITprofessionals,agilityreferstosoftwaredevelopmentandisassociatedwiththeAgileManifesto,proclaimedin2001.Themanifestopromotednewapproachestosoftwaredevelopment,andvaluedcustomerexperience,collaboration,andrapidchangesoverdetailedplanninganddocumentation,controls,andrequirements.Agilesoftwaredevelopmentmethodshavebeenadoptedbymanycompaniesandsoftwareteamssincethen,andinmanycaseshaveproventobeeffective.
Agilesoftwaredevelopmentusuallyincludes:
continuallyevolvingrequirements,collectedthroughfeedbackanalysisand
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directobservationbreakingdevelopmentworkintosmallincrementsanditerationsestablishingproduct-basedcross-functionalteamsvisuallypresenting(Kanban)andregularlydiscussing(dailystand-ups)workprogresspresentingaworking(atleast,theminimumviable)softwaretothestakeholdersattheendofeachiteration.
Ifappliedsuccessfully,Agilesoftwaredevelopmentenablesfastresponsestotheevolvingneedsofserviceconsumers.However,inmanyorganizations,Agilesoftwaredevelopmenthasnotprovidedtheexpectedbenefits,oftenduetolackofAgilemethodsintheotherphasesoftheservicelifecycle.Thisfragmentedagilitymakeslittlesensefortheorganization,astheoverallperformanceofthevaluechainisdefinedbythatoftheslowestpart.AholisticapproachtotheservicevaluechainshouldbeadoptedtomakesurethattheserviceproviderisAgilethroughouttheservicelifecycle.Thismeansthatagilityshouldbecomeaqualityofallservicemanagementdimensionsandallservicevaluechainactivities.
Oneofthegreatestobstaclestoservicevaluechainagilityusedtobetherigidityofinfrastructuresolutions.Itcouldtakemonthstodeploythenecessaryinfrastructureforanewsoftwareprogram,whichmadealldevelopmentagilityinvisibleandirrelevantfortheserviceconsumer.Thisproblemhas,toagreatextent,beensolvedastechnologyhasevolved.Virtualization,fastbroadbandandmobileconnections,andcloudcomputinghaveallowedorganizationstotreattheirITinfrastructureasaserviceorasacode,thusprovidinginfrastructurechangeswithavelocitythatwaspreviouslyonlypossibleforsoftware.Oncethetechnicalproblemwasresolved,Agilemethodscouldbeappliedtoinfrastructureconfigurationanddeployment.Thisstimulatedintegrationbetweensoftwareandinfrastructureteams,andconsequentlybetweendevelopmentandoperations.
ManyprinciplesofAgiledevelopmentcanandshouldbeappliedtoserviceoperationsandsupport.Operationalchangesandservicerequestscanbehandledinsmalliterationsbydedicatedproductorservice-focusedteams,withconstantfeedbackandhighvisibility.Dailyoperationalactivitiescanandshouldbevisibleandprioritizedtogetherwithothertasks.Allservicemanagementactivitiescanandshouldcontinuallyprovide,collect,andprocessfeedback.
Agilityisnotasoftwaredevelopmentfeature;itisanimportantqualityoforganizationsintheirentirety.AgileactivitiesrequireAgilefundingandadjustedfinancialandcompliancecontrols,Agileresourcing,Agilecontracting,Agileprocurement,etc.IfbeingAgileisadoptedasakeyprinciple,anorganizationshouldbeabletosurviveandprosperinaconstantlychanging
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environment.Appliedinafragmentedway,Agilemethodscanbecomeacostlyandwastefulcomplication.
TheITILstory:Valuechainsandvaluestreams
Henri:AtAxleCarHire,thevaluechainisthewaythatourcompanyoperates.Ithasmultiplevaluestreams.Eachvaluestreamadoptsandadaptstheactivitiesofthevaluechainforcarryingoutparticulartasks.Forexample,thereisonevaluestreamforinnovation,andanotherforprovidingstandardservicestoexistingcustomers.
Thevaluestreamforprovidingstandardservicestoexistingcustomersrepresentstheactivitiesthatarecarriedoutwhenacustomerhiresacar.Thisstartswithengagement,whenacustomercontactsAxle,andthenproceedstodelivery,whentheyreceiveacar(althoughengagementcanstillhappenatthisstage).
Somevaluechainactivitiesmaybeongoingthroughoutaparticularvaluestream,ormaynotbeinvolvedatall.Inthisstream,planningactivityiscontinuous,butdesignandprocurementactivitieswilltypicallynotbeinvolved.Thestreamendswithmoreengagementactivities,whencarsarereturnedbycustomers,feedbackisgiven,andordersareclosed.
Marco:Valuechainactivitiesdonothavetohappeninaparticularorder.Axle’sinnovationvaluestreamistriggeredbyopportunity,andthengoestoplanning,designing,buildingorobtaining,transitioning,andfinallytodelivering.Thisstreamoftenincludesprocurementactivities.Forexample,weprocuresoftwareandhardwareforourbiometricsolutions.
Henri:Wemanagevaluestreamsfordifferentobjectives,combiningthevaluechainactivitiesandsupportingthemwithpractices.Everyvaluestreamshouldbeeffectiveandefficient,andsubjecttocontinualimprovement.
Thefollowingsectionsoutlinethevaluechainactivitiesanddefinethepurpose,inputs,andoutputsforeach.Aseachvaluestreamismadeupofadifferentcombinationofactivitiesandpractices,theinputsandoutputslistedwillnotalwaysapply,astheyarespecifictoparticularvaluestreams.Forexample,the‘strategic,tactical,andoperationalplans’outputoftheplanvaluechainactivityisformedasaresultofstrategic,tactical,andoperationalplanningrespectively.Eachoftheselevelsislikelytoinvolvedifferentresources,haveadifferentplanningcycle,andbetriggeredbydifferentevents.Thelistsofinputsandoutputsgivenarenotprescriptive,andtheycanandshouldbeadjustedwhenorganizationsdesigntheirvaluestreams.
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4.5.1 Plan
KeymessageThepurposeoftheplanvaluechainactivityistoensureasharedunderstandingofthevision,currentstatus,andimprovementdirectionforallfourdimensionsandallproductsandservicesacrosstheorganization.
Thekeyinputstothisactivityare:
policies,requirements,andconstraintsprovidedbytheorganization’sgoverningbodyconsolidateddemandsandopportunitiesprovidedbyengagevaluechainperformanceinformation,improvementstatusreports,andimprovementinitiativesfromimproveknowledgeandinformationaboutnewandchangedproductsandservicesfromdesignandtransition,andobtain/buildknowledgeandinformationaboutthird-partyservicecomponentsfromengage.
Thekeyoutputsofthisactivityare:
strategic,tactical,andoperationalplansportfoliodecisionsfordesignandtransitionarchitecturesandpoliciesfordesignandtransitionimprovementopportunitiesforimproveaproductandserviceportfolioforengagecontractandagreementrequirementsforengage.
4.5.2 Improve
Keymessage
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Thepurposeoftheimprovevaluechainactivityistoensurecontinualimprovementofproducts,services,andpracticesacrossallvaluechainactivitiesandthefourdimensionsofservicemanagement.
Thekeyinputstothisvaluechainactivityare:
productandserviceperformanceinformationprovidedbydeliverandsupportstakeholders’feedbackprovidedbyengageperformanceinformationandimprovementopportunitiesprovidedbyallvaluechainactivitiesknowledgeandinformationaboutnewandchangedproductsandservicesfromdesignandtransition,andobtain/buildknowledgeandinformationaboutthird-partyservicecomponentsfromengage.
Thekeyoutputsofthisvaluechainactivityare:
improvementinitiativesforallvaluechainactivitiesvaluechainperformanceinformationforplanandthegoverningbodyimprovementstatusreportsforallvaluechainactivitiescontractandagreementrequirementsforengageserviceperformanceinformationfordesignandtransition.
4.5.3 Engage
Keymessage
Thepurposeoftheengagevaluechainactivityistoprovideagoodunderstandingofstakeholderneeds,transparency,andcontinualengagementandgoodrelationshipswithallstakeholders.
Thekeyinputstothisvaluechainactivityare:
aproductandserviceportfolioprovidedbyplanhigh-leveldemandforservicesandproductsprovidedbyinternalandexternalcustomersdetailedrequirementsforservicesandproductsprovidedbycustomers
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requestsandfeedbackfromcustomersincidents,servicerequests,andfeedbackfromusersinformationonthecompletionofusersupporttasksfromdeliverandsupportmarketingopportunitiesfromcurrentandpotentialcustomersanduserscooperationopportunitiesandfeedbackprovidedbypartnersandsupplierscontractandagreementrequirementsfromallvaluechainactivitiesknowledgeandinformationaboutnewandchangedproductsandservicesfromdesignandtransition,andobtain/buildknowledgeandinformationaboutthird-partyservicecomponentsfromsuppliersandpartnersproductandserviceperformanceinformationfromdeliverandsupportimprovementinitiativesfromimproveimprovementstatusreportsfromimprove.
Thekeyoutputsofthisvaluechainactivityare:
consolidateddemandsandopportunitiesforplanproductandservicerequirementsfordesignandtransitionusersupporttasksfordeliverandsupportimprovementopportunitiesandstakeholders’feedbackforimprovechangeorprojectinitiationrequestsforobtain/buildcontractsandagreementswithexternalandinternalsuppliersandpartnersfordesignandtransition,andobtain/buildknowledgeandinformationaboutthird-partyservicecomponentsforallvaluechainactivitiesserviceperformancereportsforcustomers.
4.5.4 Designandtransition
Keymessage
Thepurposeofthedesignandtransitionvaluechainactivityistoensurethatproductsandservicescontinuallymeetstakeholderexpectationsforquality,costs,andtimetomarket.
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Thekeyinputstothisactivityare:
portfoliodecisionsprovidedbyplanarchitecturesandpoliciesprovidedbyplanproductandservicerequirementsprovidedbyengageimprovementinitiativesprovidedbyimproveimprovementstatusreportsfromimproveserviceperformanceinformationprovidedbydeliverandsupport,andimproveservicecomponentsfromobtain/buildknowledgeandinformationaboutthird-partyservicecomponentsfromengageknowledgeandinformationaboutnewandchangedproductsandservicesfromobtain/buildcontractsandagreementswithexternalandinternalsuppliersandpartnersprovidedbyengage.
Thekeyoutputsofthisactivityare:
requirementsandspecificationsforobtain/buildcontractandagreementrequirementsforengagenewandchangedproductsandservicesfordeliverandsupportknowledgeandinformationaboutnewandchangedproductsandservicestoallvaluechainactivitiesperformanceinformationandimprovementopportunitiesforimprove.
4.5.5 Obtain/build
KeymessageThepurposeoftheobtain/buildvaluechainactivityistoensurethatservicecomponentsareavailablewhenandwheretheyareneeded,andmeetagreedspecifications.
Thekeyinputstothisactivityare:
architecturesandpoliciesprovidedbyplancontractsandagreementswithexternalandinternalsuppliersandpartners
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providedbyengagegoodsandservicesprovidedbyexternalandinternalsuppliersandpartnersrequirementsandspecificationsprovidedbydesignandtransitionimprovementinitiativesprovidedbyimproveimprovementstatusreportsfromimprovechangeorprojectinitiationrequestsprovidedbyengagechangerequestsprovidedbydeliverandsupportknowledgeandinformationaboutnewandchangedproductsandservicesfromdesignandtransitionknowledgeandinformationaboutthird-partyservicecomponentsfromengage.
Thekeyoutputsofthisactivityare:
servicecomponentsfordeliverandsupportservicecomponentsfordesignandtransitionknowledgeandinformationaboutnewandchangedservicecomponentstoallvaluechainactivitiescontractandagreementrequirementsforengageperformanceinformationandimprovementopportunitiesforimprove.
4.5.6 Deliverandsupport
KeymessageThepurposeofthedeliverandsupportvaluechainactivityistoensurethatservicesaredeliveredandsupportedaccordingtoagreedspecificationsandstakeholders’expectations.
Thekeyinputstothisactivityare:
newandchangedproductsandservicesprovidedbydesignandtransitionservicecomponentsprovidedbyobtain/buildimprovementinitiativesprovidedbyimproveimprovementstatusreportsfromimproveusersupporttasksprovidedbyengage
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knowledgeandinformationaboutnewandchangedservicecomponentsandservicesfromdesignandtransition,andobtain/buildknowledgeandinformationaboutthird-partyservicecomponentsfromengage.
Thekeyoutputsofthisactivityare:
servicesdeliveredtocustomersandusersinformationonthecompletionofusersupporttasksforengageproductandserviceperformanceinformationforengageandimproveimprovementopportunitiesforimprovecontractandagreementrequirementsforengagechangerequestsforobtain/buildserviceperformanceinformationfordesignandtransition.
FurtherdetailsontheservicevaluechainactivitiescanbefoundinotherITIL4publicationsandsupplementarymaterials.
4.6Continualimprovement
Continualimprovementtakesplaceinallareasoftheorganizationandatalllevels,fromstrategictooperational.Tomaximizetheeffectivenessofservices,eachpersonwhocontributestotheprovisionofaserviceshouldkeepcontinualimprovementinmind,andshouldalwaysbelookingforopportunitiestoimprove.
ThecontinualimprovementmodelappliestotheSVSinitsentirety,aswellastoalloftheorganization’sproducts,services,servicecomponents,andrelationships.Tosupportcontinualimprovementatalllevels,theITILSVSincludes:
theITILcontinualimprovementmodel,whichprovidesorganizationswithastructuredapproachtoimplementingimprovementstheimproveservicevaluechainactivity,whichembedscontinualimprovementintothevaluechainthecontinualimprovementpractice,supportingorganizationsintheirday-to-dayimprovementefforts.
TheITILcontinualimprovementmodelcanbeusedasahigh-levelguidetosupportimprovementinitiatives.UseofthemodelincreasesthelikelihoodthatITSMinitiativeswillbesuccessful,putsastrongfocusoncustomervalue,andensuresthatimprovementeffortscanbelinkedbacktotheorganization’svision.Themodelsupportsaniterativeapproachtoimprovement,dividingworkintomanageablepieceswithseparategoalsthatcanbeachievedincrementally.
Figure4.3providesahigh-leveloverviewoftheITILcontinualimprovementmodel.
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Figure4.3Thecontinualimprovementmodel
TheITILstory:ImprovingAxle
HenriwouldlikeAxletobecomeagreenercompanyandintroducemoreenvironmentallyfriendlypracticesintoitswork.OverthefollowingsectionstheAxleteamusesthestepsofthecontinualimprovementmodeltoimplementchangestotheorganization.
Henri:AtAxlewestriveforcontinualimprovementatalllevels.Oneofourobjectivesistobeagreenerbusinessandincorporatesustainableprinciplesintoeverybusinessdecision.Myteamiscommittedtothisinitiative.Aspartofourservicerelationshipmodel,ourpartnersandsuppliersarealsoinvolvedinthis.
Itisimportanttorememberthatthescopeanddetailsofeachstepofthemodelwillvarysignificantlybasedonthesubjectandthetypeofimprovement.Itshouldberecognizedthatthismodelcanserveasaworkflow,butitcanalsobeusedsimplyasahigh-levelreminderofasoundthoughtprocesstoensureimprovementsareproperlymanaged.Theflowseekstoensurethatimprovementsarelinkedtotheorganization’sgoalsandareproperlyprioritized,andthatimprovementactionsproducesustainableresults.
Logicandcommonsenseshouldalwaysprevailwhenusingthecontinualimprovementmodel.Thestepsofthismodeldonotneedtobecarriedoutina
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linearfashion,anditmaybenecessarytore-evaluateandreturntoapreviousstepatsomepoint.Criticaljudgementshouldalwaysbeappliedwhenusingthismodel.
4.6.1 Stepsofthecontinualimprovementmodel
Thissectionprovidesmoredetailoneachstepofthecontinualimprovementmodel.Anorganizationcanadjustthesestepstoitscultureandgoals.Themodelissimpleandflexible,andcanjustaseasilybeusedinanAgilecultureasinamoretraditionalwaterfallculture.
4.6.4.1Step1:Whatisthevision?
KeymessageEachimprovementinitiativeshouldsupporttheorganization’sgoalsandobjectives.Thefirststepofthecontinualimprovementmodelistodefinethevisionoftheinitiative.Thisprovidescontextforallsubsequentdecisionsandlinksindividualactionstotheorganization’svisionforthefuture.
Thisstepfocusesontwokeyareas:
Theorganization’svisionandobjectivesneedtobetranslatedforthespecificbusinessunit,department,team,and/orindividual,sothatthecontext,objectives,andboundariesforanyimprovementinitiativeareunderstood.Ahigh-levelvisionfortheplannedimprovementneedstobecreated.
Theworkwithinthisstepshouldensurethat:
thehigh-leveldirectionhasbeenunderstoodtheplannedimprovementinitiativeisdescribedandunderstoodinthatcontextthestakeholdersandtheirroleshavebeenunderstoodtheexpectedvaluetoberealizedisunderstoodandagreedtheroleofthepersonorteamresponsibleforcarryingouttheimprovementisclearinrelationtoachievingtheorganization’svision.
Ifthisstepisskipped,improvementsmightonlybeoptimizedforthepeopleorteamsinvolvedratherthanthewholeorganization,ornon-value-addingactivitiesmightbecomethesolefocusofimprovements.
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TheITILstory:Whatisthevision?
Henri:Axle’svisionisforthebusinesstobecomeoneofthetopthreegreencar-hirecompaniesglobally.AcontinualimprovementinitiativecalledAxleGreenwascreatedforthispurpose.
Craig:AsasupplierofcleaningservicestoAxle,I’llsupporttheminthisimprovementinitiative.
4.6.1.2Step2:Wherearewenow?
Keymessage
Thesuccessofanimprovementinitiativedependsonaclearandaccurateunderstandingofthestartingpointandtheimpactoftheinitiative.AnimprovementcanbethoughtofasajourneyfromPointAtoPointB,andthisstepclearlydefineswhatPointAlookslike.Ajourneycannotbemappedoutifthestartingpointisnotknown.
Akeyelementinthisstepisacurrentstateassessment.Thisisanassessmentofexistingservices,includingtheusers’perceptionofvaluereceived,people’scompetenciesandskills,theprocessesandproceduresinvolved,and/orthecapabilitiesoftheavailabletechnologicalsolutions.Theorganization’sculture,i.e.theprevailingvaluesandattitudesacrossallstakeholdergroups,alsoneedstobeunderstoodtodecidewhatleveloforganizationalchangemanagementisrequired.
Currentstateassessmentsshouldbedonethroughobjectivemeasurementwheneverpossible.Thiswillallowforanaccurateunderstandingoftheissuesassociatedwiththecurrentstateand,oncetheinitiativeisimplemented,enablepropermeasurementofthelevelofimprovementachievedbycomparisonwiththeinitialstate.Ifagoodmeasurementsystemisinplace,theinformationtofulfilthisstepmayalreadyhavebeenprovidedwhentheproposedimprovementwasinitiallydocumented.
Ifthisstepisskipped,thecurrentstatewillnotbeunderstoodandtherewillnotbeanobjectivebaselinemeasurement.Itwillthereforebedifficulttotrackandmeasuretheeffectivenessoftheimprovementactivities,asthenewstatecannot
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becomparedwithapreviousstateatalaterpoint.
TheITILstory:Wherearewenow?
Su:Weneedtounderstandthebaseline.Howdoweknowifwe’veimproved,ifwedon’tknowwherewestarted?Currently,only5percentofthevehiclesinourfleetareelectric.
Craig:Only20percentofmycleaningproductsarebiodegradable.
4.6.1.3Step3:Wheredowewanttobe?
KeymessageJustasthepreviousstep(Step2)describesPointAontheimprovementjourney,Step3outlineswhatPointB,thetargetstateforthenextstepofthejourney,shouldlooklike.Ajourneycannotbemappedoutifthedestinationisnotclear.
Basedontheresultsofthefirsttwosteps,agapanalysiscanbeperformed,whichevaluatesthescopeandnatureofthedistancetobetravelledfromthestartingpointtotheachievementoftheinitiative’svision.Itisimportanttonotethattheinitialvisionoftheinitiativeisaspirationalandmayneverbeachievedinfull.Improvementisthegoal,notperfection.Thisstepshoulddefineoneormoreprioritizedactionsalongthewaytocompletingthevisionfortheimprovement,basedonwhatisknownatthestartingpoint.Improvementopportunitiescanbeidentifiedandprioritizedbasedonthegapanalysis,andimprovementobjectivescanbeset,alongwithcriticalsuccessfactors(CSFs)andkeyperformanceindicators(KPIs).
Theagreedobjectives,CSFs,andKPIsneedtofollowwhatisknownastheSMARTprinciple.Theyshouldbespecific,measurable,achievable,relevant,andtime-bound.Itismucheasiertodefinetherouteoftheimprovementjourneyiftheexactdestinationisknown.Itisimportanttonotethatthetargetstaterepresentsprogresstowardsthevision,nottheachievementoftheentirevision.
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Ifthisstepisskipped,thetargetstatewillremainunclear.Itwillbedifficulttoprepareasatisfactoryexplanationofwhatkeystakeholdersstandtogainfromtheimprovementinitiative,whichmayresultinlowsupportorevenpushback.
TheITILstory:Wheredowewanttobe?
Su:Withinfiveyears,wewant50percentofourfleettoconsistofelectricvehicles.Theotherhalfshouldcomplywiththestrictestecologicalrequirementsforpetrolanddieselcars.
Craig:Oneofmytargetsisthat90percentofmycleaningproductswillbebiodegradablewithinthenexttwoyears.
Radhika:Thisisagreatinitiative.InourITteam,wewanttousebiodegradablecups.WewouldalsolikeAxletouseenvironmentallyfriendlylightbulbsinallouroffices.
4.6.1.4Step4:Howdowegetthere?
Nowthatthestartandendpointsoftheimprovementjourneyhavebeendefined,aspecificroutecanbeagreed.Basedontheunderstandingofthevisionoftheimprovementandthecurrentandtargetstates,andcombiningthatknowledgewithsubjectmatterexpertise,aplanforaddressingthechallengesoftheinitiativecanbecreated.
KeymessageTheplanforStep4canbeastraightforwardanddirectroutetocompletingasinglesimpleimprovement,oritmaybemoreinvolved.Themosteffectiveapproachtoexecutingtheimprovementmaynotbeclear,anditwillsometimesbenecessarytodesignexperimentsthatwilltestwhichoptionshavethemostpotential.
Evenifthepathtofollowisclear,itmaybemosteffectivetocarryouttheworkinaseriesofiterations,eachofwhichwillmovetheimprovementforwardpartoftheway.Witheachiteration,thereisanopportunitytocheckprogress,re-evaluatetheapproach,andchangedirectionifappropriate.
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Ifthisstepisskipped,theexecutionoftheimprovementislikelytoflounderandfailtoachievewhatisrequiredofit.Failedimprovementserodeconfidenceandcanmakeitdifficulttogetsupportforfutureimprovements.
TheITILstory:Howdowegetthere?
Craig:Myplanistoreplaceourcurrentstocksofcleaningproductswithbiodegradableoptionsaswerunout.Meanwhile,we’lltestnewproductstofindtheoptimalbalanceofpriceandquality.
Su:Sometimesknowinghowyougetthereiseasy,butreplacinghalfofourfleetwithelectriccarsisabiggerchallenge.Wedon’twantexcesscarsinourcarlotsifthey’renotbeingused.Wemustalsoconsiderspecificsandinfrastructureindifferentcountries,aswellaslocalregulations.
Radhika:We’reencouragingtheuseofceramiccupsoverplasticones.We’rediscontinuingthepurchaseofplasticcups,andwearebuyingceramiccupsforallouroffices.
4.6.1.5Step5:Takeaction
KeymessageInStep5theplanfortheimprovementisactedupon.Thiscouldinvolveatraditionalwaterfall-styleapproach,butitcouldbemoreappropriatetofollowanAgileapproachbyexperimenting,iterating,changingdirections,orevengoingbacktoprevioussteps.
Someimprovementstakeplaceaspartofabiginitiativethatmakesalotofchange,whereasotherimprovementsaresmallbutsignificant.Insomecases,alargerchangeiseffectedthroughtheimplementationofmultiplesmallerimprovementiterations.Evenifthepathtocompletetheimprovementseemedclearwhenitwasplanned,itisimportanttoremainopentochangethroughouttheapproach.Achievingthedesiredresultsistheobjective,notrigidadherencetooneviewofhowtoproceed.
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Duringtheimprovement,thereneedstobecontinualfocusonmeasuringprogresstowardsthevisionandmanagingrisks,aswellasensuringvisibilityandoverallawarenessoftheinitiative.ITILpracticessuchasorganizationalchangemanagement(section5.1.6),measurementandreporting(section5.1.5),riskmanagement(section5.1.10)and,ofcourse,continualimprovement(section5.1.2)areimportantfactorsinachievingsuccessinthisstep.
Oncethisstepiscompleted,theworkwillbeattheendpointofthejourney,resultinginanewcurrentstate.
TheITILstory:Takeaction
Craig:Wehavestartedtoreplaceourstocksofcleaningproductswithbiodegradableoptions.We’vefoundsomegreatnewproductstouse,andevenmanagedtosavemoneybyusingcheaperalternativesthatdon’tcompromiseonquality.
Su:Wehavestartedtophaseoutsomeofourolderpetrolanddieselcarsandreplacethemwithnewelectricmodels.Wehavecarriedoutathoroughcheckofthepetrolanddieselcarswearekeepingtoensuretheymeetecologicalrequirements,andwilltakeactiontofixthiswheretheydonot.
Radhika:Wehavebroughtthenewbiodegradablecupsandenvironmentallyfriendlylightbulbsintoourofficesandstartedtoremovetheplasticcups.
4.6.1.6Step6:Didwegetthere?
Thisstepinvolvescheckingthedestinationofthejourneytobesurethatthedesiredpointhasbeenreached.
KeymessageToooften,onceanimprovementplanissetinmotion,itisassumedthattheexpectedbenefitshavebeenachieved,andthatattentioncanberedirectedtothenextinitiative.Inreality,thepathtoimprovementisfilledwithvariousobstacles,sosuccessmustbevalidated.
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Foreachiterationoftheimprovementinitiative,boththeprogress(havetheoriginalobjectivesbeenachieved?)andthevalue(arethoseobjectivesstillrelevant?)needtobecheckedandconfirmed.Ifthedesiredresulthasnotbeenachieved,additionalactionstocompletetheworkareselectedandundertaken,commonlyresultinginanewiteration.
Ifthisstepisskipped,itishardtobesurewhetherthedesiredorpromisedoutcomeswereactuallyachieved,andanylessonsfromthisiteration,whichwouldsupportacoursecorrectionifneeded,willbelost.
TheITILstory:Didwegetthere?
Craig:Afterafewmonthswemanagedtohitourtargetofhaving90percentofourproductsbeingbiodegradable.
Su:Theelectriccarsarebeingintroduced,butforlogisticalreasonsitisprovingmoredifficulttoreplacethepetrolanddieselcarsthanwehadanticipated.Wewillneedtodothisatafasterpaceifwewanttohitourfive-yeartarget.Wemaynowhavetoreconsiderourtarget,anddecidewhetherweshoulddomoretosupportit,orifitneedstoberevised.
Radhika:Ourofficesnowhavebiodegradablecupsandenvironmentallyfriendlylightbulbs.Someoftheoldplasticcupsarestillbeingused,butwehavestoppedpurchasingmore,sooncetheyrunoutthey’llbegone.
4.6.1.7Step7:Howdowekeepthemomentumgoing?
KeymessageIftheimprovementhasdeliveredtheexpectedvalue,thefocusoftheinitiativeshouldshifttomarketingthesesuccessesandreinforcinganynewmethodsintroduced.Thisistoensurethattheprogressmadewillnotbelostandtobuildsupportandmomentumforthenextimprovements.
Theorganizationalchangemanagementandknowledgemanagementpracticesshouldbeusedtoembedthechangesintheorganizationandensurethattheimprovementsandchangedbehavioursarenotatriskofreversion.Leadersand
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managersshouldhelptheirteamstotrulyintegratenewworkmethodsintotheirdailyworkandinstitutionalizenewbehaviours.
Iftheexpectedresultsoftheimprovementwerenotachieved,stakeholdersneedtobeinformedofthereasonsforthefailureoftheinitiative.Thisrequiresathoroughanalysisoftheimprovement,documentingandcommunicatingthelessonslearned.Thisshouldincludeadescriptionofwhatcanbedonedifferentlyinthenextiteration,basedontheexperiencegathered.Transparencyisimportantforfutureefforts,regardlessoftheresultsofthecurrentiteration.
Ifthisstepisskipped,thenitislikelythatimprovementswillremainisolatedandindependentinitiatives,andanyprogressmademaybelostovertime.Itmayalsobedifficulttogetsupportforfutureimprovements,andembedcontinualimprovementintheorganization’sculture.
TheITILstory:Howdowekeepthemomentumgoing?
Craig:Nowthatwehavehitourtargetwewillmonitoranynewproductswebuytoensurethattheymeetourstandardsofbeingbiodegradable.Wewillalsobeonthelookoutforanyopportunitiestoreplaceourremainingnon-biodegradableproductswithmoreenvironmentallyfriendlyalternatives.
Su:We’vemadeagreatstartonaddingnewelectricvehiclestotheAxlefleet,buthaven’thitourtargetsyet.Nowweneedtoanalysewhathaspreventedusfromreachingourobjectives,recordwhatlessonswehavelearned,anddecidewhatcanbedonedifferentlyinthefuturetomaketheintroductionofelectriccarsmoreeffective.
Radhika:Wewillcontinuetobuyceramiccupsandenvironmentallyfriendlylightbulbsforouroffices.Wewillalsoconsiderfurtherwaystomakeourofficesgreener,andruncampaignswithstaffmemberstoencouragethemtobecomemoreenvironmentallyaware.
4.6.2 Continualimprovementandtheguidingprinciples
Followingthecontinualimprovementmodel,anorganizationmaysignificantlybenefitfromapplyingtheITILguidingprinciples.Alltheprinciplesareapplicableandrelevantateverystepofanimprovementinitiative.However,someoftheguidingprinciplesareespeciallyrelevanttospecificstepsofthecontinualimprovementmodel.Followingtheseprinciplesateverystepofanimprovementincreasesthechancesforsuccessofthestepsandtheoverallimprovementinitiative.Table4.2outlinestowhichstepsofthecontinualimprovementmodeleachoftheguidingprinciplesisparticularlyrelevant,althoughallprinciplesareapplicabletoallstepsatsomelevel.
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ContinualimprovementisnotonlyanintegralpartofLean,butalsoAgile(retrospectives),DevOps(continualexperimentationandlearning,andmastery),andotherframeworks.ItisoneofthekeycomponentsoftheITILSVS,providing,alongwiththeguidingprinciples,asolidplatformforsuccessfulservicemanagement.
Table4.2ThestepsofthecontinualimprovementmodellinkedtothemostrelevantITILguidingprinciples
Continualimprovementandthetheoryofconstraints
Inanincreasinglydynamicbusinessenvironment,anenterprise’sabilitytochangequickly,whetherinresponsetoexternalfactorsortodisruptthemarket,canmakethedifferencebetweenfailureandsuccess.
Whenplanningimprovements,itiscrucialtofocusontheworkthatisthehighestpriority.Accordingtothetheoryofconstraints(ToC),theweakestlinkinthevaluechaindeterminestheflowandthroughputofthesystem.Theweakestlinkmustbeelevatedasmuchaspossible(sometimesrevealinganewweakestlink),andalltheotherstepsinthevaluechainmustbeorganizedaroundit.
Theweakestlinkofavaluestreamcanbedeterminedwithvaluestreammapping.ThisisaLeanpracticethatexaminesthestream,quantifiesitswaste(forexample,adelay),andinsodoing,identifiesitsweakestlink.Iftheweakestlinkisthedevelopmentofinformationsystems,thentheapplicationofAgileprinciplesandpracticescanimprovethequalityof,andthespeedwithwhich,functionalityisdeveloped.ThisincludesthecriticalinteractionbetweenbusinessandITinwhichtherequiredfunctionalityisdefinedalongsidethenon-functionalrequirements.TheITIL4practicesthathelpwiththisinclude,amongothers,softwaredevelopmentandmanagement,businessanalysis,andrelationshipmanagement.
Iftheweakestlinkisthespeedandreliabilityofdeployment,thenusingDevOpsprinciples,technicalpracticesandtoolscanmakeasignificantdifference.TheITIL4practicesthatarerelevanttothisincludedeployment
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management,releasemanagement,andorganizationalchangemanagement.
Finally,iftheweakestlinkisthedeliveryandsupportofITservices,thenIToperationspracticesandtoolscanbeused,suchastheITIL4practicesofincidentmanagement,problemmanagement,servicedesk,andinfrastructureandplatformmanagement.
4.7Practices
Apracticeisasetoforganizationalresourcesdesignedforperformingworkoraccomplishinganobjective.Theseresourcesaregroupedintothefourdimensionsofservicemanagement(seeChapter3).TheITILSVSincludesgeneralmanagement,servicemanagement,andtechnicalmanagementpractices,asdescribedinChapter5.
4.8Summary
TheITILSVSdescribeshowallthecomponentsandactivitiesoftheorganizationworktogetherasasystemtoenablevaluecreation.Eachorganization’sSVShasinterfaceswithotherorganizations,forminganecosystemthatfacilitatesvaluecreationfortheorganizations,theircustomers,andotherstakeholders.
TheITILSVSisapowerfulholisticconstructforthegovernanceandmanagementofmodernproductsandservicesthatenablesorganizationstoco-createvaluewithconsumers.TheSVSincludestheservicevaluechainactivitiessupportedbyuniversalandholisticpracticesthatallowtheorganizationtomanagedemandsofalltypes.Theserangefromstrategicdemandsthatenabletheorganizationtothriveinacompetitivelandscape,tooperationalrequestsforinformation,services,orsupport.Everyorganizationparticipatesinsomeformofthevaluechainactivitiesdescribedhere,evenwhenmanyofthemareperformedbysuppliersandpartners.ITIL4guidancecanbeadaptedandadoptedtofacilitatevalue,feedback,andcontinualimprovementacrosstheSVS.
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CHAPTER5
ITILMANAGEMENTPRACTICES
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5ITILmanagementpracticesTheITILSVSincludes14generalmanagementpractices,17servicemanagementpractices,andthreetechnicalmanagementpractices,allofwhicharesubjecttothefourdimensionsofservicemanagement(seeChapter3).
KeymessageInITIL,amanagementpracticeisasetoforganizationalresourcesdesignedforperformingworkoraccomplishinganobjective.Theoriginsofthepracticesareasfollows:
Generalmanagementpracticeshavebeenadoptedandadaptedforservicemanagementfromgeneralbusinessmanagementdomains.ServicemanagementpracticeshavebeendevelopedinservicemanagementandITSMindustries.TechnicalmanagementpracticeshavebeenadaptedfromtechnologymanagementdomainsforservicemanagementpurposesbyexpandingorshiftingtheirfocusfromtechnologysolutionstoITservices.
The34ITILmanagementpracticesarelistedinTable5.1.
Table5.1TheITILmanagementpractices
Generalmanagementpractices Servicemanagementpractices TechnicalmanagementpracticesArchitecturemanagementContinualimprovementInformationsecuritymanagementKnowledgemanagementMeasurementandreportingOrganizationalchangemanagementPortfoliomanagementProjectmanagementRelationshipmanagementRiskmanagementServicefinancialmanagementStrategymanagement
AvailabilitymanagementBusinessanalysisCapacityandperformancemanagementChangecontrolIncidentmanagementITassetmanagementMonitoringandeventmanagementProblemmanagementReleasemanagementServicecataloguemanagementServiceconfigurationmanagementServicecontinuitymanagement
DeploymentmanagementInfrastructureandplatformmanagementSoftwaredevelopmentandmanagement
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SuppliermanagementWorkforceandtalentmanagement
ServicedesignServicedeskServicelevelmanagementServicerequestmanagementServicevalidationandtesting
ITSMinthemodernworld:high-velocityservicedelivery
Inbusinessinnovationanddifferentiation,speedtomarketisakeysuccessfactor.Ifanorganizationtakestoolongtoimplementanewbusinessidea,itislikelytobedonefasterbysomeoneelse.Becauseofthis,organizationshavestarteddemandingshortertimetomarketfromtheirITserviceproviders.
Forserviceprovidersthathavealwaysusedmoderntechnology,thishasnotbeenabigchallenge.Theyhaveadoptedmodernwaysofscalingtheirresourcesandestablishedappropriatepracticesforprojectandproductmanagement,testing,integration,deployment,release,delivery,andsupportofITservices.ThesepracticeshavebeendocumentedandhavetriggeredthedevelopmentofnewITmanagementmovementsandpractices,suchasDevOps.However,fororganizationsbearingalegacyofoldITarchitecturesandITmanagementpracticesfocusedoncontrolandcostefficiency,thenewbusinessdemandhasintroducedagreaterchallenge.
Thehigh-velocityservicedeliveryparadigmincludes:
focusonfastdeliveryofnewandchangedITservicestouserscontinualanalysisoffeedbackprovidedforITservicesateverystageoftheirlifecycleagilityinprocessingthefeedback,givingrisetocontinualandfastimprovementofITservicesanend-to-endapproachtotheservicelifecycle,fromideation,throughcreationanddelivery,toconsumptionofservicesintegrationofproductandservicemanagementpracticesdigitalizationofITinfrastructureandadoptionofcloudcomputingextensiveautomationoftheservicedeliverychain.
High-velocityservicedeliveryinfluencesallthepracticesofaserviceprovider,includinggeneralmanagementpractices,servicemanagementpractices,andtechnicalmanagementpractices.Forexample,anorganizationaimingtodeliverandimproveitsservicesfasterthanothersneedstoconsider:
AgileprojectmanagementAgilefinancialmanagement
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product-basedorganizationalstructureadaptiveriskmanagement,andauditandcompliancemanagementflexiblearchitecturemanagementspecificarchitecturetechnologysolutions,suchasmicroservicescomplexpartnerandsupplierenvironmentscontinualmonitoringoftechnologyinnovationsandexperimentinghuman-centreddesigninfrastructuremanagementfocusedoncloudcomputing.
Evenifonlysomeoftheservicesinaprovider’sportfolioneedhigh-velocitydelivery,organizationalchangesofasignificantscalearerequiredtoenablethis,especiallyiftheorganizationhasalegacyoflow-velocityservices,practices,andhabits.Moreover,bi-modalIT,wherehigh-velocityservicemanagementiscombinedwithtraditionalpractices,introducesevenmorecomplexityandgreaterchallenges.However,formanymodernorganizations,high-velocityservicedeliveryisnolongeranoptionbutanecessity,andtheymustimprovetheirservicemanagementpracticestorespondtothischallenge.
5.1Generalmanagementpractices
5.1.1 Architecturemanagement
KeymessageThepurposeofthearchitecturemanagementpracticeistoprovideanunderstandingofallthedifferentelementsthatmakeupanorganizationandhowthoseelementsinterrelate,enablingtheorganizationtoeffectivelyachieveitscurrentandfutureobjectives.Itprovidestheprinciples,standards,andtoolsthatenableanorganizationtomanagecomplexchangeinastructuredandAgileway.
Justasthemodernorganization’senvironmentandecosystemhavebecomemorecomplex,sohaveitschallenges.Theseincludenotonlyhowtoincreaseefficiencyandautomation,butalsohowtobettermanagethecomplexityoftheenvironment
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andhowtoachieveorganizationalagilityandresilience.Withoutthevisibilityandcoordinationmadepossiblebyaproperarchitecturemanagementpractice,anorganizationcanbecomealabyrinthofthird-partycontracts,variantprocessesacrossdifferentorganizationalsilos,variousproductsandservicesthathavebeenneedlesslycustomizedfordifferentcustomers,andalegacyinfrastructure.Theresultisacomplexlandscapewhereanychangebecomesfarmoredifficulttoimplementandintroducesamuchhigherrisk.
Acompletearchitecturemanagementpracticeshouldaddressallarchitecturedomains:business,service,information,technology,andenvironment.Forasmallerandlesscomplexorganization,thearchitectcandevelopasingleintegratedarchitecture.
Architecturetypes
Businessarchitecture
Thebusinessarchitectureallowstheorganizationtolookatitscapabilitiesintermsofhowtheyalignwithallthedetailedactivitiesrequiredtocreatevaluefortheorganizationanditscustomers.Thesearethencomparedwiththeorganization’sstrategyandagapanalysisofthetargetstateagainstcurrentcapabilitiesisperformed.Identifiedgapsbetweenthebaselineandtargetstateareprioritizedandthesecapabilitygapsareaddressedincrementally.A‘roadmap’describesthetransformationfromcurrenttofuturestatetoachievetheorganization’sstrategy.
Servicearchitecture
Servicearchitecturegivestheorganizationaviewofalltheservicesitprovides,includinginteractionsbetweentheservicesandservicemodelsthatdescribethestructure(howtheservicecomponentsfittogether)andthedynamics(activities,flowofresources,andinteractions)ofeachservice.Aservicemodelcanbeusedasatemplateorblueprintformultipleservices.
Informationsystemsarchitecture,includingdataandapplicationsarchitectures
Theinformationarchitecturedescribesthelogicalandphysicaldataassetsoftheorganizationandthedatamanagementresources.Itshowshowtheinformationresourcesaremanagedandsharedforthebenefitoftheorganization.
Informationisavaluableassetfortheorganization,withactualandmeasurablevalue.Informationisthebasisfordecision-making,soitmustalwaysbecomplete,accurate,andaccessibletothosewhoareauthorizedtoaccessit.Informationsystemsmustthereforebedesignedandmanagedwith
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Technologyarchitecture
Thetechnologyarchitecturedefinesthesoftwareandhardwareinfrastructureneededtosupporttheportfolioofproductsandservices.
Environmentalarchitecture
Theenvironmentalarchitecturedescribestheexternalfactorsimpactingtheorganizationandthedriversforchange,aswellasallaspects,types,andlevelsofenvironmentalcontrolandtheirmanagement.Theenvironmentincludesdevelopmental,technological,business,operational,organizational,political,economic,legal,regulatory,ecological,andsocialinfluences.
Figure5.1showsthecontributionofarchitecturemanagementtotheservicevaluechain,withthepracticebeinginvolvedinallvaluechainactivities;however,itismostinstrumentalintheplan,improve,anddesignandtransitionvaluechainactivities:
PlanThearchitecturemanagementpracticeisresponsiblefordevelopingandmaintainingareferencearchitecturethatdescribesthecurrentandtargetarchitecturesforthebusiness,information,data,application,technology,andenvironmentperspectives.Thisisusedasabasisforalltheplanvaluechainactivity.ImproveManyopportunitiesforimprovementareidentifiedthroughreviewofthebusiness,service,information,technical,andenvironmentarchitectures.EngageThearchitecturemanagementpracticefacilitatestheabilitytounderstandtheorganization’sreadinesstoaddressneworunder-servedmarketsandawidervarietyofproductsandservices,andmorequicklyrespondtochangingcircumstances.Thearchitecturemanagementpracticeisresponsibleforassessingtheorganization’scapabilitiesintermsofhowtheyalignwithallthedetailedactivitiesrequiredtoco-createvaluefortheorganizationanditscustomers.DesignandtransitionOnceaneworchangedproductorserviceisapprovedtobedeveloped,thearchitecture,design,andbuildteamswillcontinuallyevaluatewhethertheproduct/servicemeetstheinvestmentobjectives.Thearchitecturemanagementpracticeisresponsiblefortheservicearchitecture,whichdescribesthestructure(howtheservicecomponentsfittogether)andthedynamics(activities,flowofresources,andinteractions)oftheservice.Aservicemodelcanbeusedasatemplateorblueprintformultipleservicesandisessentialtothedesignandtransitionactivity.Obtain/buildThereferencearchitectures(business,service,information,technical,andenvironmental)facilitateidentificationofwhatproducts,services,
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•orservicecomponentsneedtobeobtainedorbuilt.DeliverandsupportThereferencearchitecturesareusedcontinuallyaspartoftheoperation,restoration,andmaintenanceofproductsandservices.
Figure5.1Heatmapofthecontributionofarchitecturemanagementtovaluechainactivities
5.1.2 Continualimprovement
KeymessageThepurposeofthecontinualimprovementpracticeistoaligntheorganization’spracticesandserviceswithchangingbusinessneedsthroughtheongoingimprovementofproducts,services,andpractices,oranyelementinvolvedinthemanagementofproductsandservices.
Includedinthescopeofthecontinualimprovementpracticeisthedevelopmentofimprovement-relatedmethodsandtechniquesandthepropagationofacontinualimprovementcultureacrosstheorganization,inalignmentwiththeorganization’soverallstrategy.Thecommitmenttoandpracticeofcontinualimprovementmustbeembeddedintoeveryfibreoftheorganization.Ifitisnot,thereisarealriskthatdailyoperationalconcernsandmajorprojectworkwilleclipsecontinual
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improvementefforts.
Keyactivitiesthatarepartofcontinualimprovementpracticesinclude:
encouragingcontinualimprovementacrosstheorganizationsecuringtimeandbudgetforcontinualimprovementidentifyingandloggingimprovementopportunitiesassessingandprioritizingimprovementopportunitiesmakingbusinesscasesforimprovementactionplanningandimplementingimprovementsmeasuringandevaluatingimprovementresultscoordinatingimprovementactivitiesacrosstheorganization.
Therearemanymethods,models,andtechniquesthatcanbeemployedformakingimprovements.Differenttypesofimprovementmaycallfordifferentimprovementmethods.Forexample,someimprovementsmaybebestorganizedintoamulti-phaseproject,whileothersmaybemoreappropriateasasinglequickeffort.
TheITILSVSincludesthecontinualimprovementmodel(seeFigure4.3),whichcanbeappliedtoanytypeofimprovement,fromhigh-levelorganizationalchangestoindividualservicesandconfigurationitems(CIs).Themodelisdescribedinsection4.6.
Whenassessingthecurrentstate,therearemanytechniquesthatcanbeemployed,suchasastrength,weakness,opportunity,andthreat(SWOT)analysis,abalancedscorecardreview,internalandexternalassessmentsandaudits,orperhapsevenacombinationofseveraltechniques.Organizationsshoulddevelopcompetenciesinmethodologiesandtechniquesthatwillmeettheirneeds.
Approachestocontinualimprovementcanbefoundinmanyplaces.Leanmethodsprovideperspectivesontheeliminationofwaste.Agilemethodsfocusonmakingimprovementsincrementallyatacadence.DevOpsmethodsworkholisticallyandensurethatimprovementsarenotonlydesignedwell,butappliedeffectively.Althoughthereareanumberofmethodsavailable,organizationsshouldnottrytoformallycommittotoomanydifferentapproaches.Itisagoodideatoselectafewkeymethodsthatareappropriatetothetypesofimprovementtheorganizationtypicallyhandlesandtocultivatethosemethods.Inthisway,teamswillhaveasharedunderstandingofhowtoworktogetheronimprovementstofacilitateagreateramountofchangeataquickerrate.
Thisdoesnotmean,however,thattheorganizationshouldnottrynewapproachesorallowforinnovation.Thoseintheorganizationwithskillsinalternativemethodsshouldbeencouragedtoapplythemwhenitmakessense,andifthiseffortissuccessful,thealternativemethodmaybeaddedtotheorganization’srepertoire.
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Oldermethodsmaygraduallyberetiredinfavourofnewonesifbetterresultsareachieved.
Continualimprovementiseveryone’sresponsibility.Althoughtheremaybeagroupofstaffmemberswhofocusonthisworkfull-time,itiscriticalthateveryoneintheorganizationunderstandsthatactiveparticipationincontinualimprovementactivitiesisacorepartoftheirjob.Toensurethatthisismorethanagoodintention,itiswisetoincludecontributiontocontinualimprovementinalljobdescriptionsandeveryemployee’sobjectives,aswellasincontractswithexternalsuppliersandcontractors.
Thehighestlevelsoftheorganizationneedtotakeresponsibilityforembeddingcontinualimprovementintothewaythatpeoplethinkandwork.Withouttheirleadershipandvisiblecommitmenttocontinualimprovement,attitudes,behaviour,andculturewillnotevolvetoapointwhereimprovementsareconsideredineverythingthatisdone,atalllevels.
Trainingandotherenablementassistanceshouldbeprovidedtostaffmemberstohelpthemfeelpreparedtocontributetocontinualimprovement.Althougheveryoneshouldcontributeinsomeway,thereshouldatleastbeasmallteamdedicatedfull-timetoleadingcontinualimprovementeffortsandadvocatingthepracticeacrosstheorganization.Thisteamcanserveascoordinators,guides,andmentors,helpingothersintheorganizationtodeveloptheskillstheyneedandnavigatinganydifficultiesthatmaybeencountered.
Whenthird-partysuppliersformpartoftheservicelandscape,theyshouldalsobepartoftheimprovementeffort.Whencontractingforasupplier’sservice,thecontractshouldincludedetailsofhowtheywillmeasure,reporton,andimprovetheirservicesoverthelifeofthecontract.Ifdatawillberequiredfromsupplierstooperateinternalimprovements,thatshouldbespecifiedinthecontractaswell.Accuratedata,carefullyanalysedandunderstood,isthefoundationoffact-baseddecision-makingforimprovement.Thecontinualimprovementpracticeshouldbesupportedbyrelevantdatasourcesanddataanalysistoensurethateachpotentialimprovementissufficientlyunderstoodandprioritized.
Totrackandmanageimprovementideasfromidentificationthroughtofinalaction,organizationsuseadatabaseorstructureddocumentcalledacontinualimprovementregister(CIR).TherecanbemorethanoneCIRinanorganization,asmultipleCIRscanbemaintainedonindividual,team,departmental,businessunit,andorganizationallevels.SomeorganizationsmaintainasinglemasterCIR,butsegmenthowitisusedandbywhomatamoregranularlevel.
Improvementideascanalsoinitiallybecapturedinotherplacesandthroughotherpractices,suchasduringprojectexecutionorsoftwaredevelopmentactivities.Inthiscase,itisimportanttodocumentforattentiontheimprovementideasthatcomeupaspartofongoingcontinualimprovement.Asnewideasaredocumented,
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CIRsareusedtoconstantlyreprioritizeimprovementopportunities.TheuseofCIRsprovidesadditionalvaluebecausetheyhelptomakethingsvisible.Thisisnotlimitedtowhatiscurrentlybeingdone,butalsotowhatisalreadycompleteandwhathasbeensetasideforfurtherconsiderationatalaterdate.
ItdoesnotmatterexactlyhowtheinformationinaCIRisstructured,orwhatthecollectionsofimprovementideasarecalledinanygivenorganization.Whatisimportantisthatimprovementideasarecaptured,documented,assessed,prioritized,andappropriatelyactedupontoensurethattheorganizationanditsservicesarealwaysbeingimproved.
ThecontinualimprovementpracticeisintegraltothedevelopmentandmaintenanceofeveryotherpracticeaswellastothecompletelifecycleofallservicesandindeedtheSVSitself.Thatsaid,therearesomepracticesthatmakeaspecialcontributiontocontinualimprovement.Forexample,theorganization’sproblemmanagementpracticecanuncoverissuesthatwillbemanagedthroughcontinualimprovement.Thechangesinitiatedthroughcontinualimprovementmayfailwithoutthecriticalcontributionsoforganizationalchangemanagement.Andmanyimprovementinitiativeswilluseprojectmanagementpracticestoorganizeandmanagetheirexecution.
Figure5.2Heatmapofthecontributionofcontinualimprovementtovaluechainactivities
Figure5.2showsthecontributionofcontinualimprovementtotheservicevaluechain,withthepracticebeinginvolvedinallvaluechainactivities:
PlanThecontinualimprovementpracticeisappliedtoplanningactivities,methods,andtechniquestomakesuretheyarerelevanttotheorganization’s
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currentobjectivesandcontext.ImproveThecontinualimprovementpracticeiskeytothisvaluechainactivity.Itstructuresresourcesandactivities,enablingimprovementatalllevelsoftheorganizationandtheSVS.Engage,designandtransition,obtain/build,anddeliverandsupportEachofthesevaluechainactivitiesissubjecttocontinualimprovement,andthecontinualimprovementpracticeisappliedtoallofthem.
5.1.3 Informationsecuritymanagement
KeymessageThepurposeoftheinformationsecuritymanagementpracticeistoprotecttheinformationneededbytheorganizationtoconductitsbusiness.Thisincludesunderstandingandmanagingriskstotheconfidentiality,integrity,andavailabilityofinformation,aswellasotheraspectsofinformationsecuritysuchasauthentication(ensuringsomeoneiswhotheyclaimtobe)andnon-repudiation(ensuringthatsomeonecan’tdenythattheytookanaction).
Therequiredsecurityisestablishedbymeansofpolicies,processes,behaviours,riskmanagement,andcontrols,whichmustmaintainabalancebetween:
PreventionEnsuringthatsecurityincidentsdon’toccurDetectionRapidlyandreliablydetectingincidentsthatcan’tbepreventedCorrectionRecoveringfromincidentsaftertheyaredetected.
Itisalsoimportanttoachieveabalancebetweenprotectingtheorganizationfromharmandallowingittoinnovate.Informationsecuritycontrolsthataretoorestrictivemaydomoreharmthangood,ormaybecircumventedbypeopletryingtodoworkmoreeasily.Informationsecuritycontrolsshouldconsiderallaspectsoftheorganizationandalignwithitsriskappetite.
Informationsecuritymanagementinteractswitheveryotherpractice.Itcreatescontrolsthateachpracticemustconsiderwhenplanninghowworkwillbedone.Italsodependsonotherpracticestohelpprotectinformation.
Informationsecuritymanagementmustbedrivenfromthemostseniorlevelintheorganization,basedonclearlyunderstoodgovernancerequirementsand
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organizationalpolicies.Mostorganizationshaveadedicatedinformationsecurityteam,whichcarriesoutriskassessmentsanddefinespolicies,procedures,andcontrols.Inhigh-velocityenvironments,informationsecurityisintegratedasmuchaspossibleintothedailyworkofdevelopmentandoperations,shiftingtherelianceoncontrolofprocesstowardsverificationofpreconditionssuchasexpertiseandintegrity.
Informationsecurityiscriticallydependentonthebehaviourofpeoplethroughouttheorganization.Staffwhohavebeentrainedwellandpayattentiontoinformationsecuritypoliciesandothercontrolscanhelptodetect,prevent,andcorrectinformationsecurityincidents.Poorlytrainedorinsufficientlymotivatedstaffcanbeamajorvulnerability.
Manyprocessesandproceduresarerequiredtosupportinformationsecuritymanagement.Theseinclude:
aninformationsecurityincidentmanagementprocessariskmanagementprocessacontrolreviewandauditprocessanidentityandaccessmanagementprocesseventmanagementproceduresforpenetrationtesting,vulnerabilityscanning,etc.proceduresformanaginginformationsecurityrelatedchanges,suchasfirewallconfigurationchanges.
Figure5.3showsthecontributionofinformationsecuritymanagementtotheservicevaluechain,withthepracticebeinginvolvedinallvaluechainactivities:
PlanInformationsecuritymustbeconsideredinallplanningactivityandmustbebuiltintoeverypracticeandservice.ImproveInformationsecuritymustbeconsideredinallimprovementvaluechainactivitytoensurethatvulnerabilitiesarenotintroducedwhenmakingimprovements.EngageInformationsecurityrequirementsfornewandchangedservicesmustbeunderstoodandcaptured.Alllevelsofengagement,fromoperationaltostrategic,mustsupportinformationsecurityandencouragethebehavioursneeded.Allstakeholdersmustcontributetoinformationsecurity,includingcustomers,users,suppliers,etc.
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Figure5.3Heatmapofthecontributionofinformationsecuritymanagementtovaluechainactivities
DesignandtransitionInformationsecuritymustbeconsideredthroughoutthisvaluechainactivity,witheffectivecontrolsbeingdesignedandtransitionedintooperation.Thedesignandtransitionofallservicesmustconsiderinformationsecurityaspectsaswellasallotherutilityandwarrantyrequirements.Obtain/buildInformationsecuritymustbebuiltintoallcomponents,basedontheriskanalysis,policies,procedures,andcontrolsdefinedbyinformationsecuritymanagement.Thisapplieswhetherthecomponentsarebuiltinternallyorprocuredfromsuppliers.DeliverandsupportDetectionandcorrectionofinformationsecurityincidentsmustbeanintegralpartofthisvaluechainactivity.
TheITILstory:Axle’sinformationsecuritymanagement
Su:Ourtravelappstoresalotofsensitivedata,includingcustomerandcreditcarddetails.Ourroleistomakesurethisdataissecure.
Marco:Someofthedataisalsostoredandprocessedbyourpartners,whohelpedustodeveloptheappandcontinuetosupporttheapponourbehalf.
Radhika:Weusethedatatoanalysecustomerdemandandtheuseofourfleet,tracktheconditionsofourcars,andanalyseourcustomers’preferencestocreatetailoredofferings.
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Su:Ourconsumersneedtoknowthattheirdataissafeandwillnotbemisused.Weregularlyundergoexternalauditstoprovideassuranceforourstakeholdersandtoconfirmcompliancewithnationalandinternationalregulations.
Henri:AsCIO,ImakesureeveryonewhoworksinandwithAxleisawareoftheimportanceofinformationsecurity,andfollowsAxlepoliciesandproceduresconcerninginformationsecuritymanagement.
5.1.4 Knowledgemanagement
Keymessage
Thepurposeoftheknowledgemanagementpracticeistomaintainandimprovetheeffective,efficient,andconvenientuseofinformationandknowledgeacrosstheorganization.
Knowledgeisoneofthemostvaluableassetsofanorganization.Theknowledgemanagementpracticeprovidesastructuredapproachtodefining,building,re-using,andsharingknowledge(i.e.information,skills,practices,solutions,andproblems)invariousforms.Asmethodsofcapturingandsharingknowledgemovemoretowardsdigitalsolutions,thepracticeofknowledgemanagementbecomesevenmorevaluable.
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Figure5.4Heatmapofthecontributionofknowledgemanagementtovaluechainactivities
Itisimportanttounderstandthat‘knowledge’isnotsimplyinformation.Knowledgeistheuseofinformationinaparticularcontext.Thisneedstobeunderstoodwithboththeuseroftheknowledgeandtherelevantsituationinmind.Forexample,informationpresentedintheformofa300-pagemanualisnotusefulforaservicedeskanalystwhoneedstofindafastsolution.Abetterexampleofknowledgethatisfitforpurposemightbeasimplifiedsetofinstructionsorreferencepointsthatallowtheanalysttofindtherelevantcontentquickly.
Knowledgemanagementaimstoensurethatstakeholdersgettherightinformation,intheproperformat,attherightlevel,andatthecorrecttime,accordingtotheiraccesslevelandotherrelevantpolicies.Thisrequiresaprocedurefortheacquisitionofknowledge,includingthedevelopment,capturing,andharvestingofunstructuredknowledge,whetheritisformalanddocumentedorinformalandtacitknowledge.
Figure5.4showsthecontributionofknowledgemanagementtotheservicevaluechain,withthepracticebeinginvolvedinallvaluechainactivities:
PlanKnowledgemanagementhelpstheorganizationtomakesoundportfoliodecisionsandtodefineitsstrategyandotherplans,andsupportsfinancialmanagement.ImproveThisvaluechainactivityisbasedonanunderstandingofthecurrentsituationandtrends,supportedbyhistoricalinformation.Knowledgemanagementprovidescontextfortheassessmentofachievementsandimprovementplanning.EngageRelationshipsatalllevels,fromstrategictooperational,arebasedonan
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understandingofthecontextandhistoryofthoserelationships.Knowledgemanagementhelpstobetterunderstandstakeholders.DesignandtransitionAswiththeobtain/buildvaluechainactivity,knowledgeofthesolutionsandtechnologiesavailable,andthere-useofinformation,canmakethisvaluechainactivitymoreeffective.Obtain/buildTheefficiencyofthisvaluechainactivitycanbesignificantlyimprovedwithsufficientknowledgeofthesolutionsandtechnologiesavailable,andthroughthere-useofinformation.DeliverandsupportOngoingvaluechainactivityinthisareabenefitsfromknowledgemanagementthroughre-useofsolutionsinstandardsituationsandabetterunderstandingofthecontextofnon-standardsituationsthatrequireanalysis.
TheITILstory:Axle’sknowledgemanagement
Radhika:Becausewe’reusinganAgiledeploymentforourappdevelopment,weneedtomakesureourstaffhaveup-to-dateknowledgeonnewfeatures.Justasimportantly,knowledgeneedstoberetiredwhenit’soutofdate.Forexample,werecentlydiscoveredtheprintingfeatureofourappwasnotbeingusedbyourcustomers.Weremovedprintingandreplaceditwithanewfunctiontosendinformationfromtheappbyemailinstead.Aspartofreleasemanagement,we’vealreadyprovidedupdatedknowledgearticlestoourservicedesktoreflectthechange.
Su:Knowledgemanagementismorethanjustdatacollection.AtAxle,wefocusonopencommunicationandthesharingofknowledge.Topromotecollaborationandvisibility,wemakesurethatinformation,problems,andconcernsareopenlysharedbetweenourteamsandbranches.
Henri:Butwealsoneedtofollowinformationsecuritypoliciesandmakesurethatopennessdoesnotmeancarelessness.
Marco:We’retestingnewsystemsbasedonAItoimproveourforecastinganddecision-makingatalllevels,fromstrategicplanningtousersupport.
5.1.5 Measurementandreporting
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KeymessageThepurposeofthemeasurementandreportingpracticeistosupportgooddecision-makingandcontinualimprovementbydecreasingthelevelsofuncertainty.Thisisachievedthroughthecollectionofrelevantdataonvariousmanagedobjectsandthevalidassessmentofthisdatainanappropriatecontext.Managedobjectsinclude,butarenotlimitedto,productsandservices,practicesandvaluechainactivities,teamsandindividuals,suppliersandpartners,andtheorganizationasawhole.
Manyofthesemanagedobjectsareconnected,andsoaretheirrespectivemetricsandindicators.Forexample,tosetclearobjectivesformeasurementandreporting,thereisaneedtounderstandorganizationalgoals.Thesecanbebasedonanumberofareas:profit,growth,competitiveadvantage,customerretention,operational/publicservice,etc.(seethefocusonvalueguidingprincipleinsection4.3.1).Insuchcases,itisimportanttoestablishaclearrelationshipbetweenhigh-levelandsubordinategoalsandtheobjectivesthatrelatetothem.
Forthesetgoals,operationalcriticalsuccessfactors(CSFs)canbedefined.BasedontheseCSFs,asetofrelatedkeyperformanceindicators(KPIs)canthenbeagreedupon,againstwhichsuccesscanbemeasured.
DefinitionsCriticalsuccessfactor(CSF)Anecessarypreconditionfortheachievementofintendedresults.Keyperformanceindicator(KPI)Animportantmetricusedtoevaluatethesuccessinmeetinganobjective.
5.1.5.1KPIsandbehaviour
KPIsforindividualscanworkasacompetitivemotivator,andthiswilldrivepositiveresultsiftheKPIsaresettomeetclearbusinessgoals.However,target-settingforindividualscanalsohaveanegativeside,drivinginappropriateorunsuitablebehaviours.ThistypicallyhappensifthereistoomuchfocusplacedonindividualKPIs.Forexample,servicedeskstaffmightbeheavilydriventokeepcallsshort,butthiscannegativelyimpactoncustomersatisfaction,andevenresolutiontimes,ifissuesarenotproperlydealtwith.
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OperationalKPIsshouldideallybesetforteamsratherthanfocusingtoocloselyonindividuals.Thismeansthattherecanbesomeflexibilityinthetargetsandbehavioursallowedbytheteamasawhole.Individualswill,ofcourse,stillneedsomespecificguidelinesfortheirperformance,butthisshouldbeclearlywithinthegoalsoftheteamandorganization,andalltargetsshouldbesetinthecontextofprovidingvaluefortheorganization.
5.1.5.2Reporting
Datacollectedasmetricsisusuallypresentedintheformofreportsordashboards.Itisimportanttorememberthatreportsareintendedtosupportgooddecision-making,sotheircontentshouldberelevanttotherecipientsoftheinformationandrelatedtotherequiredtopic.Reportsanddashboardsshouldmakeiteasyfortherecipienttoseewhatneedstobedoneandthentakeaction.Assuch,agoodreportordashboardshouldanswertwomainquestions:howfararewefromourtargetsandwhatbottleneckspreventusfromachievingbetterresults?
Figure5.5showsthecontributionofmeasurementandreportingtotheservicevaluechain,withthepracticebeinginvolvedinallvaluechainactivities:
PlanMeasurementandreportingenablesstrategyandserviceportfoliodecisionsbyprovidingdetailsoncurrentperformanceofproductsandservices.ImprovePerformanceisconstantlymonitoredandevaluatedtosupportcontinualimprovement,alignment,andvaluecreation.EngageEngagementwithstakeholdersisbasedoncorrect,up-to-date,andsufficientinformationprovidedintheformofdashboardsandreports.DesignandtransitionMeasurementandreportingprovidesinformationformanagementdecisionsateverystagebeforegoinglive.Obtain/buildThepracticeensurestransparencyofalldevelopmentandprocurementactivities,enablingeffectivemanagementandintegrationwithallothervaluechainactivities.DeliverandsupportOngoingmanagementofproductsandservicesisbasedoncorrect,up-to-date,andsufficientperformanceinformation.
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Figure5.5Heatmapofthecontributionofmeasurementandreportingtovaluechainactivities
5.1.6 Organizationalchangemanagement
KeymessageThepurposeoftheorganizationalchangemanagementpracticeistoensurethatchangesinanorganizationaresmoothlyandsuccessfullyimplemented,andthatlastingbenefitsareachievedbymanagingthehumanaspectsofthechanges.
Improvementsinvariablyrequirepeopletochangethewaytheywork,theirbehaviour,andsometimestheirrole.Regardlessofwhetherthechangeistoapractice,thestructureoftheorganization,relatedtotechnology,oristheintroductionofaneworchangedservice,peopleareessentialtothesuccessofthechange.Theorganizationalchangemanagementpracticeaimstoensurethateveryoneaffectedbythechangeacceptsandsupportsit.Thisisachievedbyremovingorreducingresistancetothechange,eliminatingoraddressingadverseimpacts,andprovidingtraining,awareness,andothermeansofensuringasuccessfultransitiontothechangedstate.
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OrganizationalchangemanagementcontributestoeverypartoftheSVS,whereverthecooperation,participation,andenthusiasmofthepeopleinvolvedarerequired.Foranimprovementinitiativetobesuccessful,nomatterwhatthelevelorscopeofthechangeis,therearecertainelementsthatareessentialtoaddressingthehumanfactor.Organizationalchangemanagementmustensurethatthefollowingareestablishedandmaintainedthroughoutthechange:
ClearandrelevantobjectivesTogainsupport,theobjectivesofthechangemustbeclearandmakesensetothestakeholders,basedonthecontextoftheorganization.Thechangemustbeseentobeofrealvalue.StrongandcommittedleadershipItiscriticalthatthechangehastheactivesupportofsponsorsandday-to-dayleaderswithintheorganization.Asponsorisamanagerorbusinessleaderwhowilladvocate,andcanauthorize,thechange.Leadersshouldvisiblysupportandconsistentlycommunicatetheircommitmenttothechange.WillingandpreparedparticipantsTobesuccessful,achangeneedstobemadebywillingparticipants.Inpart,thiswillingnesswillcomefromtheparticipantsbeingconvincedoftheimportanceofthechange.Inaddition,themorepreparedparticipantsfeeltheyaretomakethechangesaskedofthemthroughrelevanttraining,awareness,andregularcommunications,thekeenertheywillbetogoforward.SustainedimprovementManychangesfailbecause,aftersometimehaspassed,peoplereverttooldwaysofworking.Organizationalchangemanagementseekstocontinuallyreinforcethevalueofthechangethroughregularcommunication,addressinganyimpactsandconsequencesofthechange,andthesupportofsponsorsandleaders.Thecommunicationofvaluewillbestrongerwhenmetricsareusedtovalidatethemessage.
5.1.6.1Activitiesoforganizationalchangemanagement
ThekeyactivitiesofeffectiveorganizationalchangemanagementareoutlinedinTable5.2.
Table5.2Organizationalchangemanagementactivities
Activity HelpstodeliverCreationofasenseofurgency Clearandrelevantobjectives,willingparticipantsStakeholdermanagement StrongandcommittedparticipantsSponsormanagement StrongandcommittedleadershipCommunication WillingandpreparedparticipantsEmpowerment PreparedparticipantsResistancemanagement WillingparticipantsReinforcement Sustainedimprovement
Theactivitiesoforganizationalchangemanagementinteractwiththoseofmanyotherpractices,particularlycontinualimprovementandprojectmanagement.Other
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practiceswithimportantlinkstoorganizationalchangemanagementincludemeasurementandreporting,workforceandtalentmanagement,andrelationshipmanagement.
Thevariousaudiencesaffectedbythechangemustbeidentifiedandtheircharacteristicsdefined.Notallpeoplewillrespondtothesamemessagingorbemotivatedbythesamedrivers.Itisparticularlyimportantinorganizationalchangemanagementtotakeculturaldifferencesintoconsideration,whethertheyarebasedongeography,nationality,corporatehistory,orotherfactors.
Unlikeotherpractices,accountabilityfororganizationalchangemanagementcannotbetransferredtoanexternalsupplier.Someonewithintheorganizationitselfmustbeaccountablefororganizationalchangemanagement,eveniftheexecutionofsomeormostoftheorganizationalchangemanagementactivitiesisdelegatedtootherpeopleorgroupsincludingsuppliers.Externalexpertisemay,however,besoughttosupplementtheorganizationalchangemanagementcapabilitiesofanorganization.Sometimesorganizationsstrugglewiththekeyskillsetsneededfororganizationalchangemanagementandcanbenefitfromthesupportandguidanceofanexternalsupplier.Evenifexternalhelpisused,theoverallleadershipsupportmuststillcomefromtheorganizationitself.
Figure5.6showsthecontributionoforganizationalchangemanagementtotheservicevaluechain,withthepracticebeinginvolvedinallvaluechainactivities:
Figure5.6Heatmapofthecontributionoforganizationalchangemanagementtovaluechainactivities
PlanDecisionsregardingchangeattheportfoliolevelcausetheinitiationoforganizationalchangemanagementtosupportanapprovedinitiative.
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ImproveWithoutproperorganizationalchangemanagement,improvementcannotbesustained.EngageTheorganizationalchangemanagementpracticeactivelyengageswithstakeholdersatallstagesofachange.DesignandtransitionOrganizationalchangemanagementisessentialforthedeploymentofanewserviceorasignificantchangetoanexistingone.Obtain/buildOrganizationalchangemanagementensuresengagementandcooperationwithinandacrossprojects.DeliverandsupportOrganizationalchangemanagementcontinuesduringliveoperationsandsupporttoensurethatthechangehasbeenadoptedandissustained.
5.1.7 Portfoliomanagement
Keymessage
Thepurposeoftheportfoliomanagementpracticeistoensurethattheorganizationhastherightmixofprogrammes,projects,products,andservicestoexecutetheorganization’sstrategywithinitsfundingandresourceconstraints.
Portfoliomanagementisacoordinatedcollectionofstrategicdecisionsthattogetherenablethemosteffectivebalanceoforganizationalchangeandbusinessasusual.Portfoliomanagementachievesthisthroughthefollowingactivities:
Developingandapplyingasystematicframeworktodefineanddeliveraportfolioofproducts,services,programmes,andprojectsinsupportofspecificstrategiesandobjectives.Clearlydefiningproductsandservicesandlinkingthemtotheachievementofagreedoutcomes,thusensuringthatallactivitiesintheservicevaluechainarealignedwithvaluedefinitionandtherelatedCSFs.Evaluatingandprioritizingincomingproduct,service,orprojectproposalsandotherchangeinitiatives,basedonresourceconstraints,existingcommitments,andtheorganization’sstrategyandobjectives.Implementingastrategicinvestmentappraisalanddecision-makingprocessbasedonanunderstandingofthevalue,costs,risks,resourceconstraints,inter-dependencies,andimpactonexistingbusinessactivities.
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Analysingandtrackinginvestmentsbasedonthevalueofproducts,services,programmes,andprojectstotheorganizationanditscustomers.Monitoringtheperformanceoftheoverallportfolioandproposingadjustmentsinresponsetoanychangesinorganizationalpriorities.Reviewingtheportfoliosintermsofprogress,outcomes,costs,risk,benefits,andstrategiccontribution.
Portfoliomanagementplaysanimportantroleinhowresourcesareallocated,deployed,andmanagedacrosstheorganization.ThisfacilitatesthealignmentofresourcesandcapabilitieswithcustomeroutcomesaspartofthestrategyexecutionwithintheITILSVS.
Portfoliomanagementencompassesanumberofdifferentportfolios,includingthefollowing:
Product/serviceportfolioTheproduct/serviceportfolioisthecompletesetofproductsand/orservicesthataremanagedbytheorganization,anditrepresentstheorganization’scommitmentsandinvestmentsacrossallitscustomersandmarketspaces.Italsorepresentscurrentcontractualcommitments,newproductandservicedevelopment,andongoingimprovementplansinitiatedasaresultofcontinualimprovement.Theportfoliomayalsoincludethird-partyproductsandservices,whichareanintegralpartofofferingstointernalandexternalcustomers.ProjectportfolioTheprojectportfolioisusedtomanageandcoordinateprojectsthathavebeenauthorized,ensuringobjectivesaremetwithintimeandcostconstraintsandtospecification.Theprojectportfolioalsoensuresthatprojectsarenotduplicated,thattheystaywithintheagreedscope,andthatresourcesareavailableforeachproject.Itisthetoolusedtomanagesingleprojectsaswellaslarge-scaleprogrammesconsistingofmultipleprojects.CustomerportfolioThecustomerportfolioismaintainedbytheorganization’srelationshipmanagementpractice,whichprovidesimportantinputtotheportfoliomanagementpractice.Thecustomerportfolioisusedtorecordalltheorganization’scustomersandistherelationshipmanager’sviewoftheinternalandexternalcustomerswhoreceiveproductsand/orservicesfromtheorganization.Portfoliomanagementusesthecustomerportfoliotoensurethattherelationshipbetweenbusinessoutcomes,customers,andservicesiswellunderstood.Itdocumentstheselinkagesandisvalidatedwithcustomersthroughtherelationshipmanagementpractice.
Agileportfoliomanagement
Thesuccessofprogrammesandprojectshashistoricallybeengaugedbythe
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extenttowhichimplementationhasbeencompletedontimeandwithinbudget,andhasdeliveredtherequiredoutputs,outcomes,andbenefits.Inmanycases,however,organizationshavestruggledtodemonstrateareturnontheirinvestmentfromchange,andthereisanincreasingrecognitionthattruesuccessisonlypossibleiftheprogrammeorprojectwasthe‘right’initiativetoimplementinthefirstplace.Agileportfoliomanagementtakesthisfurther,withanincreasedfocusonvisualizingstrategicthemesandtheabilitytoreprioritizetheportfolioswiftly,increaseworkflow,reducebatchsizesofwork,andcontrolthelengthoflonger-termdevelopmentqueues.
Traditionalportfoliomanagementisfocusedontop-downplanningwithworklaidoutoverlongertimeperiods,butAgileportfoliomanagementtakestheconceptofbuild–measure–learncyclesusedbyindividualAgileteamsandappliesitonanorganization-widebasis.Teamsworktogether,usemodulardesign,andsharefindings.Thisresultsintremendousflexibility,whichshiftsthefocusfromcontinuingtoexecuteaninflexibleplantodeliveringvalueandmakingtangibleprogressaccordingtobusinessstrategyandgoals.
OrganizationspractisingAgileportfoliomanagementcommunicateasmuchaspossibleacrossthebusiness.Theyshareknowledgeandbreakbarriersbetweenorganizationalsilos.
Figure5.7Heatmapofthecontributionofportfoliomanagementtovaluechainactivities
Figure5.7showsthecontributionofportfoliomanagementtotheservicevaluechain,withthepracticebeinginvolvedinallvaluechainactivities:
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PlanPortfoliomanagementprovidesimportantinformationaboutthestatusofprojects,products,andservicescurrentlyinthepipelineorcatalogueandwhatstrategicobjectivestheyhavebeendesignedtomeet,whichisessentialforplanning.Portfoliomanagementalsoincludesreviewingtheportfoliosintermsofprogress,valuecreation,costs,risk,benefits,andstrategiccontribution.ImprovePortfoliomanagementidentifiesopportunitiestoimproveefficiencyandincreasecollaboration,eliminateduplicationbetweenprojects,andidentifyandmitigaterisks.Improvementinitiativesareprioritizedandifapprovedmaybeaddedtotherelevantportfolio.EngageWhenopportunitiesordemandareidentifiedbytheorganization,thedecisionsonhowtoprioritizethesearemadebasedupontheorganization’sstrategyplustheriskassessmentandresourceavailability.Designandtransition,obtain/build,anddeliverandsupportPortfoliomanagementisresponsibleforensuringthatproductsandservicesareclearlydefinedandlinkedtotheachievementofbusinessoutcomes,sothatthesevaluechainactivitiesarealignedwithvalue.
5.1.8 Projectmanagement
KeymessageThepurposeoftheprojectmanagementpracticeistoensurethatallprojectsintheorganizationaresuccessfullydelivered.Thisisachievedbyplanning,delegating,monitoring,andmaintainingcontrolofallaspectsofaproject,andkeepingthemotivationofthepeopleinvolved.
Projectsareoneofthemeansbywhichsignificantchangesareintroducedtoanorganization,andtheycanbedefinedastemporarystructuresthatarecreatedforthepurposeofdeliveringoneormoreoutputs(orproducts)accordingtoanagreedbusinesscase.Theymaybeastand-aloneinitiativeorpartofalargerprogramme,togetherwithotherinterrelatedprojects,formorecomplexpiecesoftransformation.However,evenstand-aloneprojectsshouldbeconsideredinthecontextoftheorganization’sprojectportfolio.
Therearedifferentapproachestothewayinwhichprojectsaredelivered,withthewaterfallandAgilemethodsbeingthemostcommon:
Thewaterfallmethodworkswellinenvironmentswheretherequirementsare
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knownupfront(andunlikelytosignificantlychange),andwheredefinitionoftheworkismoreimportantthanthespeedofdelivery.TheAgilemethodworksbestwhererequirementsareuncertainandlikelytoevolverapidlyovertime(forexample,asbusinessneedsandprioritieschange),andwherespeedofdeliveryisoftenprioritizedoverthedefinitionofpreciserequirements.
Successfulprojectmanagementisimportantastheorganizationmustbalanceitsneedto:
maintaincurrentbusinessoperationseffectivelyandefficientlytransformthosebusinessoperationstochange,survive,andcompeteinthemarketplacecontinuallyimproveitsproductsandservices.
Thisbalancebetweenprojectsand‘businessasusual’canpotentiallyimpactanumberofareas,includingresources(people,assets,finances),servicelevels,customerrelationships,andproductivity,andsotheorganization’scapacityandcapabilitymustbeconsideredaspartofitsprojectmanagementapproach.
Projectsdependonthebehaviourofpeoplebothwithintheprojectteamandthewiderorganization.Thebestprojectplanamountstoverylittleiftherightpeoplearenotinvolvedattherighttime.Therelationshipbetweentheprojectandtheorganizationalsoneedstobeconsidered,asmanyprojectteammemberswillbesecondedfrombusinessoperationsonafull-orpart-timebasis.
Figure5.8showsthecontributionofprojectmanagementtotheservicevaluechain,withthepracticebeinginvolvedinallvaluechainactivities:
PlanProjectmanagementsupportsstrategicandtacticalplanningwithmethodsandtools.ImproveManyimprovementinitiativesarelargeandcomplex,soprojectmanagementistherelevantpracticetomanagethem.EngageStakeholderengagementisakeyelementinthesuccessfuldeliveryofanyproject.Projectmanagementprovidestheorganizationwithstakeholdermanagementtoolsandtechniques.DesignandtransitionDesignofapracticeorservicecanbemanagedasaprojectoraniterationinalargerproject;thesameappliestosometransitions.Obtain/buildObtainingnewresourcesaswellasdevelopmentandintegrationisusuallyperformedasaproject.Variousprojectmanagementtechniquesareapplicabletothisactivity.DeliverandsupportThedesign,transition,andhandovertointernalorexternalserviceconsumersforoperationalmanagementneedstobewellplannedandexecutedtoensurethatbusinessasusualisnotcompromised.Theproject
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managementpracticeensuresthishappens.
Figure5.8Heatmapofthecontributionofprojectmanagementtovaluechainactivities
5.1.9 Relationshipmanagement
KeymessageThepurposeoftherelationshipmanagementpracticeistoestablishandnurturethelinksbetweentheorganizationanditsstakeholdersatstrategicandtacticallevels.Itincludestheidentification,analysis,monitoring,andcontinualimprovementofrelationshipswithandbetweenstakeholders.
Therelationshipmanagementpracticeensuresthat:
stakeholders’needsanddriversareunderstood,andproductsandservicesareprioritizedappropriatelystakeholders’satisfactionishighandaconstructiverelationshipbetweentheorganizationandstakeholdersisestablishedandmaintainedcustomers’prioritiesforneworchangedproductsandservices,inalignment
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withdesiredbusinessoutcomes,areeffectivelyestablishedandarticulatedanystakeholders’complaintsandescalationsarehandledwellthroughasympathetic(yetformal)processproductsandservicesfacilitatevaluecreationfortheserviceconsumersaswellasfortheorganizationtheorganizationfacilitatesvaluecreationforallstakeholders,inlinewithitsstrategyandprioritiesconflictingstakeholderrequirementsaremediatedappropriately.
Serviceprovidersquitenaturallyfocusmostoftheireffortsontheirrelationshipswithserviceconsumers(sponsors,customers,andusers).Itisaveryimportantstakeholdergroup;however,organizationsshouldensurethattheyunderstandandmanagetheirrelationshipswithvariousstakeholders,bothinternalandexternal.Therelationshipmanagementpracticeshouldapplytoallrelevantparties.Thismeansthatthepracticecontributestoallservicevaluechainactivitiesandmultiplevaluestreams.
Figure5.9showsthecontributionofrelationshipmanagementtotheservicevaluechain,withthepracticebeinginvolvedinallvaluechainactivities:
PlanRelationshipmanagementprovidesinformationontherequirementsandexpectationsofinternalandexternalcustomers.Italsoassistswithstrategicassessmentandprioritizationacrossportfoliosaswellasevaluatingcurrentandfuturemarketspaces,whichareessentialaspectsofplanning.ImproveRelationshipmanagementseekstoharmonizeandsynergizedifferentorganizationalrelationshipswithinternalandexternalcustomerstorealizetargetedbenefitsthroughcontinualimprovement.EngageRelationshipmanagementisthepracticeresponsibleforengagingwithinternalandexternalcustomerstounderstandtheirrequirementsandpriorities.DesignandtransitionRelationshipmanagementplaysakeyroleincoordinatingfeedbackfrominternalandexternalcustomersaspartofdesign.Italsoensuresthatinconvenienceandadverseimpactstocustomersduringtransitionarepreventedorminimized.Obtain/buildRelationshipmanagementprovidesthecustomerrequirementsandprioritiestohelpselectproducts,servicesorservicecomponentstobeobtainedorbuilt.DeliverandsupportRelationshipmanagementisresponsibleforensuringthatahighlevelofcustomersatisfactionandaconstructiverelationshipbetweentheorganizationanditscustomersareestablishedandmaintained.
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Figure5.9Heatmapofthecontributionofrelationshipmanagementtovaluechainactivities
5.1.10 Riskmanagement
KeymessageThepurposeoftheriskmanagementpracticeistoensurethattheorganizationunderstandsandeffectivelyhandlesrisks.Managingriskisessentialtoensuringtheongoingsustainabilityofanorganizationandcreatingvalueforitscustomers.Riskmanagementisanintegralpartofallorganizationalactivitiesandthereforecentraltotheorganization’sSVS(seesection2.5.3foradefinitionofrisk).
Riskisnormallyperceivedassomethingtobeavoidedbecauseofitsassociationwiththreats,andalthoughthisisgenerallytrue,riskisalsoassociatedwithopportunity.Failuretotakeopportunitiescanbeariskinitself.Theopportunitycostsofunder-servedmarketspacesandunfulfilleddemandisarisktobeavoided.
Theorganization’sportfoliocanbemappedtoanunderlyingportfolioofriskstobemanaged.Whenservicemanagementiseffective,productsandservicesintheservicecatalogueandpipelinerepresentopportunitiestocreateandcapturevalue
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forcustomers,theorganization,andotherstakeholders.Otherwise,thoseproductsandservicescanrepresentthreatsduetothepossibilityoffailureassociatedwiththedemandpatternstheyattract,thecommitmentstheyrequire,andthecoststheygenerate.Implementingstrategyoftenrequireschangestotheproductandserviceportfolio,whichmeansmanagingassociatedrisks.
Decisionsaboutriskneedtobebalancedsothatthepotentialbenefitsareworthmoretotheorganizationthanthecosttoaddresstherisk.Forexample,innovationisinherentlyriskybutcouldprovidemajorbenefitsinimprovingproductsandservices,achievingcompetitiveadvantage,andincreasingagilityandresilience.Theabilityoftheorganizationtolimititsexposuretoriskwillalsobeofrelevance.Theaimshouldbetomakeanaccurateassessmentoftherisksinagivensituation,andanalysethepotentialbenefits.Therisksandopportunitiespresentedbyeachcourseofactionshouldbedefinedtoidentifyappropriateresponses.
Forriskmanagementtobeeffective,risksneedtobe:
IdentifiedUncertaintiesthatwouldaffecttheachievementofobjectiveswithinthecontextofaparticularorganizationalactivity.Theseuncertaintiesmustbeconsideredandthendescribedtoensurethatthereiscommonunderstanding.AssessedTheprobability,impact,andproximityofindividualrisksmustbeestimatedsotheycanbeprioritizedandtheoveralllevelofrisk(riskexposure)associatedwiththeorganizationalactivityunderstood.TreatedAppropriateresponsestorisksmustbeplanned,assigningownersandactionees,andthenimplemented,monitored,andcontrolled.
Thefollowingprinciplesapplyspecificallytotheriskmanagementpractice:
RiskispartofbusinessTheorganizationshouldensurethatrisksareappropriatelymanaged.Thisdoesnotmeanthatallrisksaretobeavoided.Onthecontrary,risk-takingisrequiredtoensurelong-termsustainability.However,risksneedtobeidentified,understood,andassessedagainstthelevelsofrisktheorganizationiswillingtotake(i.e.theriskappetite),andappropriatelymanagedandmonitored.RiskmanagementmustbeconsistentacrosstheorganizationItisvitalthattheriskmanagementpracticeismanagedholisticallytoachieveconsistencyacrossthewholeorganization.Toensureeffectiveness,thereshouldbeongoingconsultationwithstakeholdersandappropriateflexibilityfordifferentpartsoftheorganization.Thisflexibilitywillallowtailoredriskmanagementprocedurestobedevelopedsothatorganizationalunitsand/orcustomer-specificcircumstancesareaddressed.RiskmanagementcultureandbehavioursareimportantTheappropriatecultureandbehavioursdemonstratedbyalllevelsoftheorganization’spersonnelarecriticalandmustbeembeddedaspartofthe‘waywedothings’.Thiswillbedemonstratedbybehavioursandbeliefssuchas:
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understandingthateffectiveriskmanagementisvitalforthesustainabilityoftheorganizationandsupportstheachievementofbusinessgoalsusingproactiveriskmanagementbehavioursensuringtransparencyandclarityofriskmanagementprocedures,roles,responsibilities,andaccountabilitiesactivelyencouragingandfollowingupthereportingofrisks,incidents,andopportunitiesensuringremunerationstructuressupportdesiredbehaviours(i.e.thisshouldnotdiscouragethereportingofincidentsnorencourageover-reporting)activelyencouraginglearningandgrowthinmaturityfromtheorganization’sexperiencesandtheexperiencesofotherorganizations.
ISO31000:2018Riskmanagement
Theseguidelinesprovideanoverallandgeneralperspectiveofthepurposeandprinciplesofriskmanagement.Theyareapplicableatalllevelsinanytypeoforganization.ISO31000statesthat‘thepurposeofriskmanagementisthecreationandprotectionofvalue’andthatriskmanagement‘improvesperformance,encouragesinnovationandsupportstheachievementofobjectives’.
Figure5.10Heatmapofthecontributionofriskmanagementtovaluechainactivities
Figure5.10showsthecontributionofriskmanagementtotheservicevaluechain,
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withthepracticebeinginvolvedinallvaluechainactivities:
PlanRiskmanagementprovidesessentialinputstotheorganization’sstrategyandplanning,withafocusonrisksthatcandrivevariabilityofoutcomes.Theseinclude:
shiftsincustomerdemandandprioritieslegalandregulatorychangescompetitorsdependenciesonsuppliersandpartnerstechnologicalchangesconflictingstakeholderrequirements.
ImproveAllimprovementinitiativesshouldbeassessedandcontinuallycontrolledbyriskmanagement.Thepracticeestablishesanimportantperspectiveforimprovementprioritization,planning,andreview.EngageTheriskmanagementpracticehelpstoidentifykeystakeholdersandoptimizeengagementbasedonsuchinformationasriskappetiteandriskprofiles.DesignandtransitionProductsandservicesshouldbedesignedtoaddressprioritizedrisks.Forexample,theyshouldbescalabletosupportchangesindemandovertime.Fortheorganization,neworchangedservicescarryvaryinglevelsofriskwhichshouldbeidentifiedandassessedbeforethechangeisapproved.Ifapproved,therisksshouldbemanagedaspartofthechange,includingreleases,deployments,andprojects.Obtain/buildRiskmanagementshouldinformdecisionsabouttheobtainingorbuildingofproducts,services,orservicecomponents.DeliverandsupportRiskmanagementhelpstoensurethattheongoingdeliveryofproductsandservicesismaintainedattheagreedlevelandthatalleventsaremanagedaccordingtotherisksthattheyintroduce.
5.1.11 Servicefinancialmanagement
KeymessageThepurposeoftheservicefinancialmanagementpracticeistosupporttheorganization’sstrategiesandplansforservicemanagementbyensuringthattheorganization’sfinancialresourcesandinvestmentsarebeingusedeffectively.
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Servicefinancialmanagementsupportsdecision-makingbythegoverningbodyandmanagementoftheorganizationregardingwheretobestallocatefinancialresources.Itprovidesvisibilityintothebudgeting,costing,andaccountingactivitiesrelatedtotheproductsandservices.TobeeffectiveinthecontextoftheSVS,thispracticeneedstobealignedwiththeorganization’spoliciesandpracticesforportfoliomanagement,projectmanagement,andrelationshipmanagement.
Financeisthecommonlanguagewhichallowstheorganizationtocommunicateeffectivelywithitsstakeholders.Servicefinancialmanagementisresponsibleformanagingthebudgeting,costing,accounting,andchargingfortheactivitiesofanorganization,actingasbothserviceproviderandserviceconsumer:
Budgeting/costingThisisanactivityfocusedonpredictingandcontrollingtheincomeandexpenditureofmoneywithintheorganization.Budgetingconsistsofaperiodicnegotiationcycletosetbudgetsandongoingmonitoringofthecurrentbudgets.Toaccomplishthisobjective,itfocusesoncapturingforecastedandactualservicedemand.Ittranslatesthisdemandintoanticipatedoperatingandprojectcostsusedforsettingbudgetsandratestoensureadequatefundingforproductsandservices.Service-basedbudgetingseekstounderstandthebudgetandestablishfundingmodelsbasedonthefullcostofprovidingorconsumingaservice.AccountingThisactivityenablestheorganizationtoaccountfullyforthewayitsmoneyisspent,allowingittocompareforecastvsactualcostsandexpenditures(particularlytheabilitytoidentifyusageandcostsbycustomer,service,andactivity/costcentre).Itusuallyinvolvesaccountingsystems,includingledgers,chartsofaccounts,andjournals.ChargingThisactivityisrequiredtoformallyinvoiceserviceconsumers(usuallyexternal)fortheservicesprovidedtothem.Itisimportanttonotethatwhilechargingisanoptionalpractice,allservicesrequireafundingmodel,becauseallcostsneedtobeadequatelyfundedbyanagreedmethod.
Figure5.11showsthecontributionofservicefinancialmanagementtotheservicevaluechain,withthepracticebeinginvolvedinallvaluechainactivities:
PlanPlansatalllevelsneedfundingbasedoninformation,includingfinancial.Servicefinancialmanagementsupportsplanningwithbudgets,reports,forecasts,andotherrelevantinformation.ImproveAllimprovementsshouldbeprioritizedwithreturnoninvestmentinmind.Servicefinancialmanagementprovidestoolsandinformationforimprovementsevaluationandprioritization.EngageFinancialconsiderationsareimportantforestablishingandmaintainingservicerelationshipswithserviceconsumers,suppliers,andpartners.Forsomestakeholders(investors,sponsors)thefinancialaspectoftherelationshipisthe
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mostimportant.Thepracticesupportsthisvaluechainactivitybyprovidingfinancialinformation.
Figure5.11Heatmapofthecontributionofservicefinancialmanagementtovaluechainactivities
DesignandtransitionServicefinancialmanagementhelpstokeepthisactivitycost-effectivebyprovidingthemeansforfinancialplanningandcontrol.Italsoensurestransparencyofcostsforproductsandservicesfortheserviceprovider,accountingfordesignandtransitionexpenditures.Obtain/buildObtainingresourcesofalltypesissupportedbybudgeting(toensuresufficientfunding)andaccounting(toensuretransparencyandevaluation).DeliverandsupportOngoingoperationalcostsareasignificantpartoftheorganization’sexpenditures.Forcommercialorganizations,ongoingservicedeliveryactivitiesarealsothesourceofincome.Servicefinancialmanagementhelpstoensuresufficientunderstandingofboth.Charging(ifapplicable)supportstheserviceproviderandtheserviceconsumerintheirrelationshipswithbillingandreporting.
Evolutionoffinancialmanagementwithnewtechnology
Financialmanagementreferstotheefficientandeffectivemanagementofmoneyinthemostappropriatemannertoaccomplishthefinancialobjectivesoftheorganization.Sinceitsinception,thefinancialmanagementdisciplinehasgonethroughvariousdegreesofchange,improvement,andinnovation.Akeycomponentofthischangehasbeentheemergenceofnewtechnology.
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Manytechnologicaldevelopmentshaveimpacteduponfinancialmanagement,butthethreekeyinnovationsaretheintroductionofagreaternumberofdigitaltechnologies,blockchain,andITbudgetsandpaymentmodels.
Digitaltechnologies
Majorfinancialinstitutionsarenowanalysingandusingthelatesttechnologiessuchasthecloud,bigdata,analytics,andartificialintelligence(AI)togain,orevenjusttomaintain,competitiveadvantageinthemarketplace.However,newfinancialorganizationsarealsousingthesetechnologiesandstartingoperationswithoutanylegacyIT,technicaldebt,orbureaucraticprocesses,whichmeanstheytendtobemoreAgile.
Bigdataandanalyticsarebeingusedbyfinancialorganizationstogaindeeperinsightinto,andunderstandingof,theircustomers.Theamountofdatabeingcapturedisphenomenalandrequiresscalablecomputingpowertoprocessthedataefficientlyandcost-effectively.Inreturn,thisdeepercustomerunderstandingiscausingfinancialorganizationstodevelopnewandinnovativeproductsandservices.Dataisnowbeingreferredtoasthe‘newoil’,asorganizationsarescramblingtocapture,analyse,andexploitit.
Blockchain
Anotherevolutioninfinancialmanagementishappeningthroughaspecificinnovationcalledblockchain,againenabledonlythroughcloud-basedservices.Initiallyblockchainwasdevelopedtoenablethede-centralizedmanagementofcrypto-currencies,allowingtransactionstobeauditedandverifiedautomaticallyandinexpensively.
Blockchaintechnologiesareusedtomanagepublicdigitalledgers.Thesedigitalledgersrecordtransactionsacrossmanygloballydistributedcomputers.Thedistributionofrecordsensuresthateachrecordcannotbechangedwithoutthealterationofallsubsequentrecords(alsoknownasblocks)andwithouttheconsensusoftheentiredistributedledger(alsocalledthenetwork).
Globalfinancialinstitutionsareresearchinghowthisblockchaintechnologycanprovidethemwithcompetitiveadvantagebystreamliningback-officefunctionsandreducingsettlementratesforbankingtransactions.Newfinancialorganizationsareinvestigatingblockchaintodeliveralternativebankingfunctionsatafractionofthecostandoverheadsoftraditionalbanks.
ITbudgetsandpaymentmodels
Theemergenceofnewtechnologyhasnotjustaffectedfinancialorganizations,butalsothewaythateveryorganizationmanagesitsITservicesfromafinancialperspective.Muchofthecurrentwaveoftechnological
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evolutionhasbeenenabledbycloudcomputing,andthisseemslikelytocontinuefortheforeseeablefuture.ThishasledtoamajorchangeinhowITservicesareobtained,funded,andpaidforbyorganizations.
Traditionally,ITresourceswereobtainedusingupfrontcapitalexpenditure(CAPEX).However,underthecloudmodel,theprovisionofITinfrastructure,platforms,andsoftwareisprovided‘asaservice’.Thismodelgenerallyusessubscription-basedorpay-as-you-usechargingmechanismswhicharepaidforoutofoperationalexpenditure(OPEX).
Anotherareathathasseenchangeistheorganization’sapproachtosettingandmanagingITbudgets.FlexibleITbudgetsarerequiredtomeetthecostsofscalingcloud-basedservicesinanAgileandon-demandway.FixedITbudgets,oftenforecastmonthsinadvance,struggletoaccountforthescalingofITresourcesinthisway.
Procurementruleswithinorganizationsarealsohavingtochange.Thereremainsaplaceforfixed-priceITprojectsandservices;however,cloud-baseddigitalservicesaregenerallysoldunderavariable-pricemodel,i.e.themoreyouuseandconsume,themoreyoupay,andviceversa.Therefore,thoseorganizationsthathavenotupdatedtheirprocurementrulestoallowthemtobuyvariable-pricedITresourceswillfacealargeself-madebarrierpreventingthemfromusingcloud-baseddigitalservices.Tobeaseffectiveaspossible,organizationsmustupdatetheirpoliciesandeducatetheirstafftoensurethattheycanpurchaseITunderavariable-pricedmodel.
5.1.12 Strategymanagement
KeymessageThepurposeofthestrategymanagementpracticeistoformulatethegoalsoftheorganizationandadoptthecoursesofactionandallocationofresourcesnecessaryforachievingthosegoals.Strategymanagementestablishestheorganization’sdirection,focuseseffort,definesorclarifiestheorganization’spriorities,andprovidesconsistencyorguidanceinresponsetotheenvironment.
Thestartingpointforstrategymanagementistounderstandthecontextofthe
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organizationanddefinethedesiredoutcomes.Thestrategyoftheorganizationestablishescriteriaandmechanismsthathelptodecidehowtobestprioritizeresources,capabilities,andinvestmenttoachievethoseoutcomes,whilethepracticeensuresthatthestrategyisdefined,agreed,maintained,andachieved.
Theobjectivesofstrategymanagementareto:
analysetheenvironmentinwhichtheorganizationexiststoidentifyopportunitiesthatwillbenefittheorganizationidentifyconstraintsthatmightpreventtheachievementofbusinessoutcomesanddefinehowthoseconstraintscouldberemovedortheireffectsreduceddecideandagreetheorganization’sperspectiveanddirectionwithrelevantstakeholders,includingitsvision,mission,andprinciplesestablishtheperspectiveandpositionoftheorganizationrelativetoitscustomersandcompetitors.Thisincludesdefiningwhichservicesandproductswillbedeliveredtowhichmarketspacesandhowtomaintaincompetitiveadvantageensurethatthestrategyhasbeentranslatedintotacticalandoperationalplansforeachorganizationalunitthatisexpectedtodeliveronthestrategyensurethestrategyisimplementedthroughexecutionofthestrategicplansandcoordinationofeffortsatthestrategic,tactical,andoperationallevelsmanagechangestothestrategiesandrelateddocuments,ensuringthatstrategieskeeppacewithchangestointernalandexternalenvironmentsandotherrelevantfactors.
Strategymanagementisoftenseenastheresponsibilityoftheseniormanagementandgoverningbodyofanorganization.Itenablesthemtosettheobjectivesoftheorganization,tospecifyhowtheorganizationwillmeetthoseobjectives,andtoprioritizetheinvestmentsthatarerequiredtomeetthem.However,intoday’scomplex,fast-changingenvironment,traditionalstrategypractices,basedoncarefuldeliberation,extensiveresearch,andscenarioplanning,arealsoevolving.Strategyisbecomingmorefluidandthereisanincreasedfocusonestablishingtheessentialpurposeandprinciplesofanorganization,whichcanserveastheguidingdirectionforallitsactions,evenascircumstanceschange.Forexample,aLeanstrategyprocesscanbeusedtobalancetheextremesofrigidplanninganduncontrolledexperimentation.Thestrategyprovidestheoveralldirectionandalignmentoftheorganization,servingasbothascreenthatinnovativeideasmustpassandabasisforevaluatingthesuccessoftheSVS.Itencouragesemployeestobecreative,whileensuringthattheyareinharmonywiththeorganizationandpursueonlyvaluableopportunities.
Strategymustenablevaluecreationfortheorganization.Agoodbusinessmodeldescribesthemeansoffulfillinganorganization’sobjectives.Thestrategyoftheorganizationshouldincludesomewaytomakeitsservicesandproductsuniquely
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valuabletoitscustomers;itmustthereforedefinetheorganization’sapproachfordeliveringbettervalue.Theneedforastrategyisnotlimitedtolargerorganizations;itisjustasimportantforsmallerones,allowingthemtohaveaclearperspective,positioning,andplanstoensurethattheyremainrelevanttotheircustomers.
Customerswantsolutionsthatbreakthroughperformancebarriersandachievehigher-qualityoutcomeswithlittleornoincreaseincost.Suchsolutionsareusuallymadeavailablethroughinnovativeproductsandservices.Thestrategyshouldbalancetheorganization’sneedtodeliverbothefficientandeffectiveoperationswithinnovationandfuture-focusedactivities.
Thevalueofproductsandservicesfromeitherthecustomer’sortheorganization’sperspectivemayalterovertimeduetochangingconditions,events,orotherfactorsoutsideanorganization’scontrol.Strategymanagementensuresacarefullyconsideredapproachtotheorganization’srelationshipswithcustomers,aswellasbothagilityandresilienceindealingwiththevariationsinvaluethatdefinethoserelationships.
Ahigh-performancestrategyisonethatenablesanorganizationtoconsistentlyoutperformcompetingalternativesovertime,acrossbusinesscycles,duringindustrydisruptions,andwhenchangesinleadershipoccur.Itshouldbefocusedonwhatneedstobedoneacrosstheorganizationtofacilitatevaluecreation.
Figure5.12showsthecontributionofstrategymanagementtotheservicevaluechain,withthepracticebeinginvolvedinallvaluechainactivities:
PlanStrategymanagementensuresthattheorganization’sstrategyhasbeentranslatedintotacticalandoperationalplansforeachorganizationalunitthatisexpectedtodeliveronthestrategy.
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Figure5.12Heatmapofthecontributionofstrategymanagementtovaluechainactivities
ImproveStrategymanagementprovidesstrategyandobjectivestobeusedtoprioritizeandevaluateimprovements.EngageWhenopportunitiesordemandareidentifiedbytheorganization,thedecisionsabouthowtoprioritizethesearebasedupontheorganization’sstrategyplustheriskassessmentandresourceavailability.Designandtransition,obtain/build,anddeliverandsupportStrategymanagementensuresthestrategyisimplementedthroughexecutionofthestrategicplansincoordinationwiththeseactivities.Italsoprovidesfeedbacktoenablethemeasurementandevaluationofproductsandservicesduringdesignandtransition.
5.1.13 Suppliermanagement
KeymessageThepurposeofthesuppliermanagementpracticeistoensurethattheorganization’ssuppliersandtheirperformancesaremanagedappropriatelytosupporttheseamlessprovisionofqualityproductsandservices.Thisincludescreatingcloser,morecollaborativerelationshipswithkeysupplierstouncoverandrealizenewvalueandreducetheriskoffailure.
Activitiesthatarecentraltothepracticeinclude:
CreatingasinglepointofvisibilityandcontroltoensureconsistencyThisshouldbeacrossallproducts,services,servicecomponents,andproceduresprovidedoroperatedbyinternalandexternalsuppliers,includingcustomersactingassuppliers.Maintainingasupplierstrategy,policy,andcontractmanagementinformationNegotiatingandagreeingcontractsandarrangementsAgreementsneedtobealignedwithbusinessneedsandservicetargets.Contractswithexternalsuppliersmightneedtobenegotiatedoragreedthroughthelegal,procurement,commercial,orcontractsfunctionsoftheorganization.Foraninternalsuppliertherewillneedtobeaninternalagreement.ManagingrelationshipsandcontractswithinternalandexternalsuppliersThisshouldbedonewhenplanning,designing,building,orchestrating,transitioning,
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andoperatingproductsandservices,workingcloselywithprocurementandperformancemanagement.ManagingsupplierperformanceSupplierperformanceshouldbemonitoredtoensurethattheymeettheterms,conditions,andtargetsoftheircontractsandagreements,whileaimingtoincreasethevalueformoneyobtainedfromsuppliersandtheproducts/servicestheyprovide.
5.1.13.1Sourcing,supplierstrategy,andrelationships
Thesupplierstrategy,sometimescalledthesourcingstrategy,definestheorganization’splanforhowitwillleveragethecontributionofsuppliersintheachievementofitsoverallservicemanagementstrategy.
Someorganizationsmayadoptastrategythatdictatestheuseofsuppliersonlyinveryspecificandlimitedcircumstances,whileanotherorganizationmaychoosetomakeextensiveuseofsuppliersinproductandserviceprovision.Asuccessfulsourcingstrategyrequiresathoroughunderstandingofanorganization’sobjectives,theresourcesrequiredtodeliverthatstrategy,theenvironmental(e.g.market)factors,andtherisksassociatedwithimplementingspecificapproaches.
Therearedifferenttypesofsupplierrelationshipbetweenanorganizationanditssuppliersthatneedtobeconsideredaspartoftheorganization’ssourcingstrategy.Theseinclude:
InsourcingTheproductsorservicesaredevelopedand/ordeliveredinternallybytheorganization.OutsourcingTheprocessofhavingexternalsuppliersprovideproductsandservicesthatwerepreviouslyprovidedinternally.Outsourcinginvolvessubstitution,i.e.thereplacementofinternalcapabilitybythatofthesupplier.SinglesourceorpartnershipProcurementofaproductorservicefromonesupplier.Thiscaneitherbeasinglesupplierwhosuppliesallservicesdirectlyoranexternalserviceintegratorwhomanagestherelationshipswithallsuppliersandintegratestheirservicesonbehalfoftheorganization.Thesecloserelationships(andthemutualinterdependencetheycreate)fosterhighquality,reliability,shortleadtimes,andcooperativeaction.Multi-sourcingProcurementofaproductorservicefrommorethanoneindependentsupplier.Theseproductsandservicescanbecombinedtoformnewserviceswhichtheorganizationcanprovidetointernalandexternalcustomers.Asorganizationsplacemorefocusonincreasedspecializationandcompartmentalizationofcapabilitiestoincreaseagility,multi-sourcingisincreasinglyapreferredoption.Traditionallyorganizationshavemanagedthesesuppliersseparatelyacrossdifferentpartsoftheorganization,butthereisamovetowardsdevelopinganinternalserviceintegrationcapabilityorselectinganexternalserviceintegrator.
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Individualsupplierscanprovidesupportservicesandproductsthatindependentlyhavearelativelyminorandfairlyindirectroleinvaluegeneration,butcollectivelymakeamuchmoredirectandimportantcontributiontothisandtheimplementationoftheorganization’sstrategy.
5.1.13.2Evaluationandselectionofsuppliers
Theorganizationshouldevaluateandselectsuppliersbasedon:
ImportanceandimpactThevalueoftheservicetothebusiness,providedbythesupplierRiskTherisksassociatedwithusingtheserviceCostsThecostoftheserviceanditsprovision.
Otherimportantfactorsinevaluatingandselectingsuppliersincludethewillingnessorfeasibilityofasuppliertocustomizeitsofferingsorworkcooperativelyinamulti-supplierenvironment;thelevelofinfluenceoftheorganizationorserviceintegratoronthesupplier’sperformance;andthedegreeofdependenceofonesupplieronothersuppliers.
5.1.13.3Activities
Activitiesofthesuppliermanagementpracticeinclude:
SupplierplanningThepurposeofthisactivityistounderstandneworchangedservicerequirementsandreviewrelevantenterprisedocumentationtodevelopasourcingstrategyandsuppliermanagementplan,workinginconjunctionwithotherpracticessuchasbusinessanalysis,portfoliomanagement,servicedesign,andservicelevelmanagement.EvaluationofsuppliersandcontractsThepurposeofthisactivityistoidentify,evaluate,andselectsuppliersforthedeliveryofneworchangedbusinessservices.SupplierandcontractnegotiationThepurposeofthisactivityistodevelop,negotiate,review,update,finalize,andawardsuppliercontracts.Thefailureofnegotiationswilltriggeranewcontract,anupdatedcontract,oracontracttermination.SuppliercategorizationThisprocedureaimstocategorizesuppliersonaperiodicbasisandaftertheawardingofneworupdatedcontracts.Commonlyusedcategoriesincludestrategic,tactical,andcommoditysuppliers.SupplierandcontractmanagementThepurposeofthisactivityistoensurethattheorganizationobtainsvalueformoneyandthedeliveryoftheagreedperformanceofthesupplieragainstthecontractandtargets.WarrantymanagementThepurposeofthisactivityistomanagewarranty
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requirementsorclausesandmakewarrantyclaimswhenawarrantyissuearises,inconjunctionwithperformancemanagement.PerformancemanagementThisactivityincludesthesetupandcontinuoustrackingofoperationalmeasuresthathavebeenmutuallyagreedwithinternalandexternalsuppliers.Itfocusesonthekeymeasures,whichcanthenbeconsolidatedonasupplierscorecard.Monitoringwillallowfortheidentificationofsystemicproblemsandimprovementopportunitiesandprovideabasisforreporting.Contractrenewaland/orterminationThisprocedureaimstomanagecontractrenewalsandterminations,whicharetriggeredbyeitherspecificorperiodicreviewsofsupplierperformance.
5.1.13.4Serviceintegration
Serviceintegrationisresponsibleforcoordinatingororchestratingallthesuppliersinvolvedinthedevelopmentanddeliveryofproductsandservices.Itfocusesontheend-to-endprovisionofservice,ensuringcontrolofallinterfacesandoutcomesfromsuppliers,andfacilitatingcollaborationbetweensuppliers.Anorganizationcaneitherperformtheroleofserviceintegratoritself,oruseathird-partyserviceintegrator.Itispossibletodevelopahybridmodel,wheretheorganizationisresponsibleforsomeoftheserviceintegrationfunctionandaugmentsthatcapabilitywiththatofanexternalserviceintegrator.Theserviceintegrationfunctioncanalsobeoperatedbyaleadsupplier.Theserviceintegratorisalsoresponsibleforassurance;thisincludesperformancemanagementandreporting,definingrolesandresponsibilities,maintainingrelationshipsacrossallparties,andheadingregularforumsandsteeringcommitteestoaddressissues,agreepriorities,andmakedecisions.
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Figure5.13Heatmapofthecontributionofsuppliermanagementtovaluechainactivities
Figure5.13showsthecontributionofsuppliermanagementtotheservicevaluechain,withthepracticebeinginvolvedinallvaluechainactivities:
PlanSuppliermanagementprovidestheorganization’sapprovedsourcingstrategyandplan.ImproveThepracticeidentifiesopportunitiesforimprovementwithexistingsuppliers,isinvolvedintheselectionofnewsuppliers,andprovidesongoingsupplierperformancemanagement.EngageSuppliermanagementisresponsibleforengagingwithallsuppliersandfortheevaluationandselectionofsuppliers;fornegotiatingandagreeingcontractsandagreements;andforongoingmanagementofsupplierrelationships.DesignandtransitionSuppliermanagementisresponsiblefordefiningrequirementsforcontractsandagreementsrelatedtoneworchangedproductsorservices,inalignmentwiththeorganization’sneedsandservicetargets.Obtain/buildSuppliermanagementsupportstheprocurementorobtainingofproducts,services,andservicecomponentsfromthirdparties.DeliverandsupportSupplierperformanceforliveservicesismanagedbythispracticetoensurethatsuppliersmeettheterms,conditions,andtargetsoftheircontractsandagreements.
TheITILstory:Axle’ssuppliermanagement
Marco:I’vebeenassignedtothesuppliermanagementroleatAxle.ThismeansI’llbemanagingthemonthlygovernanceforumswithoursupplierstotracktheirserviceperformanceasoutlinedintheirservicelevelagreements.I’llmakesurethecontractualobligationsofoursuppliersareinlinewithAxleCarHirebusinessoutcomes.
Radhika:Forexample,wepromiseourcustomersthatthecarswillalwaysbeclean.Weusedtohaveourcarscleanedweekly,buttomeetthenewservicepromise,Craig’sCleaningwillcleanthecarseachtimethey’rereturnedtothelot.
Henri:Axle’sservicesdependonmultiplepartnersandsuppliers.Weworkwithcardealersandmanufacturers,tyremanufacturers,cleaners,androadsideassistanceproviders.WealsohaveAxleagentswhopromoteourofferings,andpartnersinaloyaltyprogrammewhoprovidetheirservicestoourclientsonspecialterms.
Radhika:Weusemanypartners’andsuppliers’servicesforourITsystemsaswell.ThissupportsAxle’sworkonmanylevels,frominternetaccessto
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Marco:GreaterdigitalizationatAxlemeansmoreopportunitytobuildITintoourserviceofferings.TheAxleappmakesitpossibletobookandpayforcarhireviapersonaldevices.TheAxleAwaresystemisinstalledineverycarandissupportedbyITandourpartners.Fleetmaintenanceisplannedbasedonthehirehistoryofourvehicles,andcontrolledbyourITsystems.
Henri:Becauseofthis,Axle’sbusinessisnowheavilydependentonITandnon-ITsuppliers.Integratingandcoordinatingtheseservicesispartofsuppliermanagement.WeexpectoursupplierstoprovideaconsistentlevelofqualityforAxleandourcustomers.
5.1.14 Workforceandtalentmanagement
KeymessageThepurposeoftheworkforceandtalentmanagementpracticeistoensurethattheorganizationhastherightpeoplewiththeappropriateskillsandknowledgeandinthecorrectrolestosupportitsbusinessobjectives.Thepracticecoversabroadsetofactivitiesfocusedonsuccessfullyengagingwiththeorganization’semployeesandpeopleresources,includingplanning,recruitment,onboarding,learninganddevelopment,performancemeasurement,andsuccessionplanning.
Workforceandtalentmanagementplaysacriticalroleinestablishingorganizationalvelocitybyhelpingorganizationstoproactivelyunderstandandforecastfuturedemandforservices.Italsoensuresthattherightpeoplewiththenecessarycompetenciesareavailableattherighttimetodelivertheservicesrequired.
Achievingthisobjectivereducesbacklogs,improvesquality,avoidsreworkcausedbydefects,andreduceswaittimewhilealsoclosingknowledgeandskillsgaps.Asorganizationstransformtheirpracticesandautomationandorganizationalcapabilitiestosupportthedigitaleconomyandimprovespeedtomarket,havingtherighttalentbecomescritical.
Workforceandtalentmanagementenablesorganizations,leaders,andmanagersto
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focusoncreatinganeffectiveandactionablepeoplestrategy,andtoexecutethatstrategyatvariouslevelswithintheorganization.Agoodstrategyshouldsupporttheidentificationofrolesandassociatedknowledge,aswellastheskillsandattitudesneededtokeepanorganizationrunningdaytoday.Itshouldalsoaddresstheemergingtechnologiesandleadershipandorganizationalchangecapabilitiesrequiredtopositiontheorganizationforfuturegrowth.
Theideaofmanaginganddevelopinganorganization’sworkforceandtalentisnotnew.However,withtheincreaseduseofthird-partysuppliersandtherapidadoptionofautomationforrepeatablework,traditionalrolesarechangingdramatically.Becauseofthis,workforceandtalentmanagementshouldbetheresponsibilityofleadersandmanagersateverylevelthroughouttheorganization.
DefinitionsOrganizationalvelocityThespeed,effectiveness,andefficiencywithwhichanorganizationoperates.Organizationalvelocityinfluencestimetomarket,quality,safety,costs,andrisks.CompetenciesThecombinationofobservableandmeasurableknowledge,skills,abilities,andattitudesthatcontributetoenhancedemployeeperformanceandultimatelyresultinorganizationalsuccess.SkillsAdevelopedproficiencyordexterityinthought,verbalcommunication,orphysicalaction.AbilityThepoweroraptitudetoperformphysicalormentalactivitiesrelatedtoaprofessionortrade.KnowledgeTheunderstandingoffactsorinformationacquiredbyapersonthroughexperienceoreducation;thetheoreticalorpracticalunderstandingofasubject.AttitudeAsetofemotions,beliefs,andbehaviourstowardsaparticularobject,person,thing,orevent.
5.1.14.1Workforceandtalentmanagementactivities
Theactivitiesofthispracticecoverabroadrangeofareasandareperformedbyavarietyofrolesforspecificpurposes,including:
WorkforceplanningTranslatingtheorganization’sstrategyandobjectivesintodesiredorganizationalcapabilities,andthenintocompetenciesandroles.
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RecruitmentTheacquisitionofnewemployeesandcontractorstofillidentifiedgapsrelatedtodesiredcapabilities.PerformancemeasurementThedeliveryofregularperformancemeasurementandassessmentsagainstestablishedjobrolesbasedonpre-definedcompetencies.PersonaldevelopmentAnemployee’suseofpublishedjobrolesandcompetencyframeworkstoproactivelyplanpersonalgrowthandadvancement.LearninganddevelopmentTargetededucationandexperientiallearningopportunitiesusingvariousformalandnon-formalmethods.MentoringandsuccessionplanningFormalmentoring,engagement,andsuccessionplanningactivitiesprovidedbyleadership.
Figure5.14presentstheactivitiesofworkforceandtalentmanagement.
Figure5.14Workforceandtalentmanagementactivities
Figure5.15showsthecontributionofworkforceandtalentmanagementtotheservicevaluechain,withthepracticebeinginvolvedinallvaluechainactivities;however,itisaprimaryfocusofplanandimproveactivities:
PlanWorkforceplanningisaspecificoutputofthisvaluechainactivity,asleadershipandmanagementevaluatetheircurrentorganizationalcapabilitiesinrelationtofuturerequirementsfortheorganization’sresources,aswellastheproductsandservicesdefinedwithintheserviceportfolio.
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ImproveAllimprovementsrequiresufficientlyskilledandmotivatedpeople.Theworkforceandtalentmanagementpracticeensuresunderstandingandfulfilmentoftheserequirements.EngageWorkforceandtalentmanagementiscloselylinkedtothisvaluechainactivity.Itworkswithpracticessuchasrelationshipmanagement,servicerequestmanagement,andservicedesktounderstandandforecastchangingservicedemandrequirements,andhowthiswillimpactanddirectworkforceplanningandtalentmanagementactivities.DesignandtransitionTalentmanagementisimportanttothisvaluechainactivity.Specificfocusisgiventoknowledge,skills,andabilitiesrelatedtosystemsanddesignthinking.Obtain/buildTalentmanagementfocusesspecificallyonknowledge,skills,andabilitiesrelatedtocollaboration,customerfocus,quality,speed,andcostmanagement.DeliverandsupportSpecificfocusbytalentmanagementisgiventoknowledge,skills,andabilitiesrelatedtocustomerservice,performancemanagement,andcustomerinteractionsandrelationships.
Figure5.15Heatmapofthecontributionofworkforceandtalentmanagementtovaluechainactivities
5.2Servicemanagementpractices
5.2.1 Availabilitymanagement
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KeymessageThepurposeoftheavailabilitymanagementpracticeistoensurethatservicesdeliveragreedlevelsofavailabilitytomeettheneedsofcustomersandusers.
Definition:AvailabilityTheabilityofanITserviceorotherconfigurationitemtoperformitsagreedfunctionwhenrequired.
Availabilitymanagementactivitiesinclude:
negotiatingandagreeingachievabletargetsforavailabilitydesigninginfrastructureandapplicationsthatcandeliverrequiredavailabilitylevelsensuringthatservicesandcomponentsareabletocollectthedatarequiredtomeasureavailabilitymonitoring,analysing,andreportingonavailabilityplanningimprovementstoavailability.
Inthesimplestterms,theavailabilityofaservicedependsonhowfrequentlytheservicefails,andhowquicklyitrecoversafterafailure.Theseareoftenexpressedasmeantimebetweenfailures(MTBF)andmeantimetorestoreservice(MTRS):
MTBFmeasureshowfrequentlytheservicefails.Forexample,aservicewithaMTBFoffourweeksfails,onaverage,13timeseachyear.MTRSmeasureshowquicklyserviceisrestoredafterafailure.Forexample,aservicewithaMTRSoffourhourswill,onaverage,fullyrecoverfromfailureinfourhours.Thisdoesnotmeanthatservicewillalwaysberestoredinfourhours,asMTRSisanaverageovermanyincidents.
OlderserviceswereoftendesignedwithveryhighMTBF,sothattheywouldfailinfrequently.MorerecentlytherehasbeenashifttowardsoptimizingservicedesigntominimizeMTRS,sothatservicescanberecoveredveryquickly.Themost
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effectivewaytodothisistodesignanti-fragilesolutions,whichrecoverautomaticallyandveryquickly,withvirtuallynobusinessimpact.Forsomeservices,evenaveryshortfailurecanbecatastrophic,andfortheseitismoreimportanttofocusonincreasingMTBF.
Thewaythatavailabilityisdefinedmustbeappropriateforeachservice.Itisimportanttounderstandusers’andcustomers’viewsonavailabilityandtodefineappropriatemetrics,reports,anddashboards.ManyorganizationscalculatepercentageavailabilitybasedonMTBFandMTRS,butthesepercentagefiguresrarelymatchcustomers’experience,andarenotappropriateformostservices.Otherthingsthatshouldbeconsideredinclude:
whichvitalbusinessfunctionsareaffectedbydifferentapplicationfailuresatwhatpointisslowperformancesobadthattheserviceiseffectivelyunusablewhendoestheserviceneedtobeavailable,andwhencantheserviceprovidercarryoutmaintenanceactivities.
Measurementsthatworkwellforsomeservicesinclude:
UseroutageminutesCalculatedbymultiplyingincidentdurationbythenumberofusersimpacted,orbyaddingupthenumberofminuteseachuserisaffected.Thisworkswellforservicesthatdirectlysupportuserproductivity;forexample,anemailservice.NumberoflosttransactionsCalculatedbysubtractingthenumberoftransactionsfromthenumberexpectedtohavehappenedduringthetimeperiod.Thisworkswellforservicesthatsupporttransaction-basedbusinessprocesses,suchasmanufacturingsupport.LostbusinessvalueCalculatedbymeasuringhowbusinessproductivitywasimpactedbythefailuresofsupportingservices.Thisiseasilyunderstoodbycustomersandcanbeusefulforplanninginvestmentinimprovedavailability.However,itcanbedifficulttoidentifywhichlostbusinessvaluewascausedbyITservicefailuresandwhichhadothercauses.UsersatisfactionServiceavailabilityisoneofthemostimportantandvisiblecharacteristicsofservices,andhasagreatinfluenceonusersatisfaction.Itisimportanttomakesurethatusersaresatisfiedwithserviceavailabilityinadditiontomeetingformallyagreedavailabilitytargets.
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Figure5.16Heatmapofthecontributionofavailabilitymanagementtovaluechainactivities
Mostorganizationsdonothavededicatedavailabilitymanagementstaff.Theactivitiesneededareoftendistributedaroundtheorganization.Someorganizationsincludeavailabilitymanagementactivitiesaspartofriskmanagement,whileotherscombineitwithservicecontinuitymanagementorwithcapacityandperformancemanagement.Someorganizationshavesitereliabilityengineers(SREs)whomanageandimprovetheavailabilityofspecificproductsorservices.
Aprocessisneededfortheregulartestingoffailoverandrecoverymechanisms.Manyorganizationsalsohaveaprocessforcalculatingandreportingavailabilitymetrics;however,availabilitymanagementisdrivenasmuchbyculture,experience,andknowledgeasbyfollowingprocedures.
Figure5.16showsthecontributionofavailabilitymanagementtotheservicevaluechain,withthepracticebeinginvolvedinallvaluechainactivities:
PlanAvailabilitymanagementmustbeconsideredinserviceportfoliodecisionsandwhensettinggoalsanddirectionforservicesandpractices.ImproveWhenplanningandmakingimprovements,availabilitymanagementensuresthatservicesarenotdegraded.EngageAvailabilityrequirementsfornewandchangedservicesmustbeunderstoodandcaptured.DesignandtransitionNewandchangedservicesmustbedesignedtomeetavailabilitytargetsandtestingofavailabilitycontrolsisneededduringtransition.Obtain/buildAvailabilityisaconsiderationwhenbuildingcomponentsorobtainingthemfromthirdparties.
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DeliverandsupportThisactivityincludesmeasurementofavailabilityandreactingtoeventswhichmightaffecttheabilitytomeetavailabilitytargets.
5.2.2 Businessanalysis
KeymessageThepurposeofthebusinessanalysispracticeistoanalyseabusinessorsomeelementofit,defineitsassociatedneeds,andrecommendsolutionstoaddresstheseneedsand/orsolveabusinessproblem,whichmustfacilitatevaluecreationforstakeholders.Businessanalysisenablesanorganizationtocommunicateitsneedsinameaningfulway,expresstherationaleforchange,anddesignanddescribesolutionsthatenablevaluecreationinalignmentwiththeorganization’sobjectives.
Analysisandsolutionsshouldbeapproachedinaholisticwaythatincludesconsiderationofprocesses,organizationalchange,technology,information,policies,andstrategicplanning.Theworkofbusinessanalysisisperformedprimarilybybusinessanalysts(BAs),althoughothersmaycontribute.
InIT,businessanalysispracticesarefrequentlyappliedinsoftwaredevelopmentprojects,buttheyarealsoappropriatetohigher-levelarchitectures,services,andtheorganization’sservicevaluesystem(SVS)ingeneral.Torestricttheapplicationofbusinessanalysistosoftwaredevelopmentaloneistoruntheriskofdevelopingincompletesolutions.
Thekeyactivitiesassociatedwithbusinessanalysisare:
analysingbusinesssystems,businessprocesses,services,orarchitecturesinthechanginginternalandexternalcontextidentifyingandprioritizingpartsoftheSVS,andproductsandservicesthatrequireimprovement,aswellasopportunitiesforinnovationevaluatingandproposingactionsthatcanbetakentocreatethedesiredimprovement.ActionsmayincludenotonlyITsystemchanges,butalsoprocesschanges,alterationstoorganizationalstructure,andstaffdevelopmentdocumentingthebusinessrequirementsforthesupportingservicestoenablethedesiredimprovementsrecommendingsolutionsfollowinganalysisofthegatheredrequirementsand
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Businessrequirementscanbeutility-focusedorwarranty-focused.
DefinitionsWarrantyrequirementsTypicallynon-functionalrequirementscapturedasinputsfromkeystakeholdersandotherpractices.Organizationsshouldaimtomanagealibraryofpre-definedwarrantyacceptancecriteriaforuseinpracticessuchasprojectmanagementandsoftwaredevelopmentandmanagement.UtilityrequirementsFunctionalrequirementswhichhavebeendefinedbythecustomerandareuniquetoaspecificproduct.
Businessanalysisshouldensurethemostefficientandcomprehensiveachievementoftheseactivities,butnotmaketheerrorofanalysiswithoutintentofsubsequentaction.Anorganizationshouldnotattempttoanalyseanissuesodeeplyorforsolongthatatimelysolutioncannotbeachieved,ortrytosolveeveryproblemwithasingle,massiveinitiativethatfailstofacilitatevaluecreationinenoughtimetobeofpracticaluse.Theprocessesassociatedwiththispracticeshouldguardagainstthesemistakes.
Thescopeofworkforthebusinessanalysispracticeincludesusingandevaluatinginformationfromoperationsandsupporttobuildknowledgeofhowtheservicesandpracticesareperformingintheliveenvironment.Thisknowledgewillnotonlyhelptoidentifyareasforimprovementinthecurrentservicedesign,butalsoreveallessonslearnedthatwillimprovefuturedesigns.
Theroleofbusinessanalysismaybedefineddifferentlyfromorganizationtoorganization,butitisarecognizeddisciplinewithaspecificsetofskills.Businessanalysisrequiresnotonlycriticalthinkingandevaluation,butalsolistening,communication,andfacilitationskills,theabilitytoanalyseanddocumentbusinessprocessesandusecases,andperformdataanalysisandmodelling.
Whenthesystemorservicebeinganalysedcrossesmanyorganizationalboundaries,itisimportantthatthevariousbusinessunitsinvolvedadoptapartnerrelationshiptoensureaholisticanalysisandcomprehensivesolutionproposal.Ifcompromisesareneededfromoneormoreoftheseunits,acollaborative,partner-likerelationshipwillfacilitateasolutionthatwillprovidevalueforalltheparties.
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Withouttherightinformation,businessanalysiscannotbesuccessful,andtobeeffective,itneedsaccesstoallinformationrelatedtotheareaunderanalysis.Forbusinessprocesses,forexample,businessanalystswillneedaccesstoallprocessdocumentation,includingprocessflows,proceduresandworkinstructions,policies,andprocessmetrics.Theymayneedtointerviewnotonlythepersonresponsibleforthebusinessprocess,butalsothosewhoparticipateineachpartoftheprocesstocompileaclearviewoftheprocessandtherelatedissues.
Thetechnologiesdeployedusuallyincludewhateversystemtheorganizationusestogatheranddocumentrequirements,aswellasprojectmanagementsystemsandreportingtoolsforgatheringandprocessingdataandinformationforanalysis.Othertechnologiesthatcanbeofassistancewhenpresentingtheresultsofanalysisarevisualmodellingandmappingtoolsandfeaturesofmanyofthetypicalofficeproductivitysuitessuchasspreadsheets,presentationsoftware,andwordprocessing.
Aswithallpractices,businessanalysiscannotensuresuccessfulsolutionsinisolation.Forexample,strategymanagementpracticesprovidehigh-levelguidancetobusinessanalysis,whichthendirectsanalysisandsolutionrecommendations.Inturn,therecommendationsfrombusinessanalysiscaninfluencetechnicalandotherstrategies.Toensuretheparticipationoftherightparties,businessanalysisreliesonrelationshipmanagement.Furthermore,thenaturalprogressionthroughtheservicevaluechainrequiresinteractionbetweenbusinessanalysisactivitiesandthosefromservicedesign,softwaredevelopmentandmanagement,measurementandreporting,andmanyothers.
Figure5.17showsthecontributionofbusinessanalysistotheservicevaluechain,withthepracticebeinginvolvedinallvaluechainactivities:
PlanBusinessanalysiscontributestostrategicdecision-makingonwhatwillbedoneandhow.ImproveAlllevelsofevaluationandimprovementbenefitfrombusinessanalysis,whichisparticularlyapplicableatstrategicandtacticallevels.EngageBusinessanalysisiskeytothegatheringofrequirementsduringthisvaluechainactivity.DesignandtransitionGathering,prioritization,andanalysisofaccuraterequirementscanhelpensurethatahigh-qualitysolutionisdesignedandprogressedtooperation.Obtain/buildBusinessanalysisskillsareintegraltothedefinitionofanagreedsolution.DeliverandsupportDatafromtheongoingdeliveryofaservicecanbepartofbusinessanalysisactivitieswhendesigningchangestotheservice,aswellaswhenlookingforopportunitiesforcontinualimprovement.
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Figure5.17Heatmapofthecontributionofbusinessanalysistovaluechainactivities
5.2.3 Capacityandperformancemanagement
KeymessageThepurposeofthecapacityandperformancemanagementpracticeistoensurethatservicesachieveagreedandexpectedperformance,satisfyingcurrentandfuturedemandinacost-effectiveway.
Definition:PerformanceAmeasureofwhatisachievedordeliveredbyasystem,person,team,practice,orservice.
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Serviceperformanceisusuallyassociatedwiththenumberofserviceactionsperformedinatimeframeandthetimerequiredtofulfilaserviceactionatagivenlevelofdemand.Serviceperformancedependsonservicecapacity,whichisdefinedasthemaximumthroughputthataCIorservicecandeliver.SpecificmetricsforcapacityandperformancedependonthetechnologyandbusinessnatureoftheserviceorCI.
Thecapacityandperformancemanagementpracticeusuallydealswithserviceperformanceandtheperformanceofthesupportingresourcesonwhichitdepends,suchasinfrastructure,applications,andthird-partyservices.Inmanyorganizations,thecapacityandperformancemanagementpracticealsocoversthecapacityandperformanceofthepersonnel.
Thecapacityandperformancemanagementpracticeincludesthefollowingactivities:
serviceperformanceandcapacityanalysis:researchandmonitoringofthecurrentserviceperformancecapacityandperformancemodelling
serviceperformanceandcapacityplanning:capacityrequirementsanalysisdemandforecastingandresourceplanningperformanceimprovementplanning.
Serviceperformanceisanimportantaspectoftheexpectationsandrequirementsofcustomersandusers,andthereforesignificantlycontributestotheirsatisfactionwiththeservicestheyuseandthevaluetheyperceive.Capacityandperformanceanalysisandplanningcontributestoserviceplanningandbuilding,aswellastoongoingservicedelivery,evaluation,andimprovement.Anunderstandingofcapacityandperformancemodelsandpatternshelpstoforecastdemandandtodealwithincidentsanddefects.
Figure5.18showsthecontributionofcapacityandperformancemanagementtotheservicevaluechain,withthepracticebeinginvolvedinallservicevaluechainactivities:
PlanCapacityandperformancemanagementsupportstacticalandoperationalplanningwithinformationaboutactualdemandandperformance,andwithmodellingandforecastingtoolsandmethods.ImproveImprovementsareidentifiedanddrivenbyperformanceinformationprovidedbythispractice.EngageCustomers’andusers’expectationsaremanagedandsupportedbyinformationaboutperformanceandcapacityconstraintsandcapabilities.DesignandtransitionCapacityandperformancemanagementisessentialfor
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productandservicedesign:ithelpstoensurethatnewandchangedservicesaredesignedforoptimumperformance,capacity,andscalability.Obtain/buildCapacityandperformancemanagementhelpstoensurethatcomponentsandservicesbeingobtainedorbuiltmeetperformanceneedsoftheorganization.DeliverandsupportServicesandservicecomponentsaresupportedandtestedbyperformanceandcapacitytargets,metricsandmeasurement,andreportingtargetsandtools.
Figure5.18Heatmapofthecontributionofcapacityandperformancemanagementtovaluechainactivities
5.2.4 Changecontrol
KeymessageThepurposeofthechangecontrolpracticeistomaximizethenumberofsuccessfulserviceandproductchangesbyensuringthatriskshavebeenproperlyassessed,authorizingchangestoproceed,andmanagingthechangeschedule.
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Definition:ChangeTheaddition,modification,orremovalofanythingthatcouldhaveadirectorindirecteffectonservices.
Thescopeofchangecontrolisdefinedbyeachorganization.ItwilltypicallyincludeallITinfrastructure,applications,documentation,processes,supplierrelationships,andanythingelsethatmightdirectlyorindirectlyimpactaproductorservice.
Itisimportanttodistinguishchangecontrolfromorganizationalchangemanagement.Organizationalchangemanagementmanagesthepeopleaspectsofchangestoensurethatimprovementsandorganizationaltransformationinitiativesareimplementedsuccessfully.Changecontrolisusuallyfocusedonchangesinproductsandservices.
Changecontrolmustbalancetheneedtomakebeneficialchangesthatwilldeliveradditionalvaluewiththeneedtoprotectcustomersandusersfromtheadverseeffectofchanges.Allchangesshouldbeassessedbypeoplewhoareabletounderstandtherisksandtheexpectedbenefits;thechangesmustthenbeauthorizedbeforetheyaredeployed.Thisassessment,however,shouldnotintroduceunnecessarydelay.
Thepersonorgroupwhoauthorizesachangeisknownasachangeauthority.Itisessentialthatthecorrectchangeauthorityisassignedtoeachtypeofchangetoensurethatchangecontrolisbothefficientandeffective.Inhigh-velocityorganizations,itisacommonpracticetodecentralizechangeapproval,makingthepeerreviewatoppredictorofhighperformance.
Therearethreetypesofchangethatareeachmanagedindifferentways:
StandardchangesThesearelow-risk,pre-authorizedchangesthatarewellunderstoodandfullydocumented,andcanbeimplementedwithoutneedingadditionalauthorization.Theyareofteninitiatedasservicerequests,butmayalsobeoperationalchanges.Whentheprocedureforastandardchangeiscreatedormodified,thereshouldbeafullriskassessmentandauthorizationasforanyotherchange.Thisriskassessmentdoesnotneedtoberepeatedeachtimethestandardchangeisimplemented;itonlyneedstobedoneifthereisamodificationtothewayitiscarriedout.NormalchangesThesearechangesthatneedtobescheduled,assessed,andauthorizedfollowingaprocess.Changemodelsbasedonthetypeofchangedeterminetherolesforassessmentandauthorization.Somenormalchangesare
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lowrisk,andthechangeauthorityfortheseisusuallysomeonewhocanmakerapiddecisions,oftenusingautomationtospeedupthechange.Othernormalchangesareverymajorandthechangeauthoritycouldbeashighasthemanagementboard(orequivalent).Initiationofanormalchangeistriggeredbythecreationofachangerequest.Thismaybecreatedmanually,butorganizationsthathaveanautomatedpipelineforcontinuousintegrationandcontinuousdeploymentoftenautomatemoststepsofthechangecontrolprocess.EmergencychangesThesearechangesthatmustbeimplementedassoonaspossible;forexample,toresolveanincidentorimplementasecuritypatch.Emergencychangesarenottypicallyincludedinachangeschedule,andtheprocessforassessmentandauthorizationisexpeditedtoensuretheycanbeimplementedquickly.Asfaraspossible,emergencychangesshouldbesubjecttothesametesting,assessment,andauthorizationasnormalchanges,butitmaybeacceptabletodefersomedocumentationuntilafterthechangehasbeenimplemented,andsometimesitwillbenecessarytoimplementthechangewithlesstestingduetotimeconstraints.Theremayalsobeaseparatechangeauthorityforemergencychanges,typicallyincludingasmallnumberofseniormanagerswhounderstandthebusinessrisksinvolved.
Thechangescheduleisusedtohelpplanchanges,assistincommunication,avoidconflicts,andassignresources.Itcanalsobeusedafterchangeshavebeendeployedtoprovideinformationneededforincidentmanagement,problemmanagement,andimprovementplanning.Regardlessofwhothechangeauthorityis,theymayneedtocommunicatewidelyacrosstheorganization.Riskassessment,forinstance,mayrequirethemtogatherinputfrommanypeoplewithspecialistknowledge.Additionally,thereisusuallyaneedtocommunicateinformationaboutthechangetoensurepeoplearefullypreparedbeforethechangeisdeployed.
Figure5.19showsthecontributionofchangecontroltotheservicevaluechain,withthepracticebeinginvolvedinallvaluechainactivities:
PlanChangestoproductandserviceportfolios,policies,andpracticesallrequireacertainlevelofcontrol,andthechangecontrolpracticeisusedtoprovideit.ImproveManyimprovementswillrequirechangestobemade,andtheseshouldbeassessedandauthorizedinthesamewayasallotherchanges.EngageCustomersandusersmayneedtobeconsultedorinformedaboutchanges,dependingonthenatureofthechange.DesignandtransitionManychangesareinitiatedasaresultofneworchangedservices.Changecontrolactivityisamajorcontributortotransition.Obtain/buildChangestocomponentsaresubjecttochangecontrol,whethertheyarebuiltinhouseorobtainedfromsuppliers.DeliverandsupportChangesmayhaveanimpactondeliveryandsupport,andinformationaboutchangesmustbecommunicatedtopersonnelwhocarryout
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thisvaluechainactivity.Thesepeoplemayalsoplayapartinassessingandauthorizingchanges.
Figure5.19Heatmapofthecontributionofchangecontroltovaluechainactivities
TheITILstory:Changecontrol
Henri:Thecarhiremarketisdevelopingfasterthanever.TomakesurethatAxlemeetscustomerdemandsandcapitalizesonopportunities,weneedtohavespeed-to-marketandtoexperimentwithnewideas.OurnewserviceofferingswillseealotofchangeatAxle.Someteamswillneedtodouble,whileothersmayreduce.WeneedtobringeveryoneatAxleonboard.
Radhika:ThechangecontrolpracticeatAxlemakessurethatourservicesachievetherightbalanceofflexibilityandreliability.
Marco:Someofourprocessesarehighlyautomatedanddesignedforthefastdeploymentofchanges.TheseareperfectforchangestoourbookingappandsomeofourITsystems.
Su:Inothercases,suchaswhenweupdateourvehicles,weuseamixofmanualandautomatedtesting.Forexample,theAxleAwareroadmonitoringandsafetysystemrequiresconsultationandapprovalbeforewecanupdateit.
Marco:SystemssuchasAxleAwarecan’tbealteredlikethebookingapp.Thepriorityforthosechangesisthatweactsafelyandcomplywithappropriateregulations.That’smoreimportantthantimetomarket.
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5.2.5 Incidentmanagement
KeymessageThepurposeoftheincidentmanagementpracticeistominimizethenegativeimpactofincidentsbyrestoringnormalserviceoperationasquicklyaspossible.
Definition:IncidentAnunplannedinterruptiontoaserviceorreductioninthequalityofaservice.
Incidentmanagementcanhaveanenormousimpactoncustomerandusersatisfaction,andonhowcustomersandusersperceivetheserviceprovider.Everyincidentshouldbeloggedandmanagedtoensurethatitisresolvedinatimethatmeetstheexpectationsofthecustomeranduser.Targetresolutiontimesareagreed,documented,andcommunicatedtoensurethatexpectationsarerealistic.Incidentsareprioritizedbasedonanagreedclassificationtoensurethatincidentswiththehighestbusinessimpactareresolvedfirst.
Organizationsshoulddesigntheirincidentmanagementpracticetoprovideappropriatemanagementandresourceallocationtodifferenttypesofincident.Incidentswithalowimpactmustbemanagedefficientlytoensurethattheydonotconsumetoomanyresources.Incidentswithalargerimpactmayrequiremoreresourcesandmorecomplexmanagement.Thereareusuallyseparateprocessesformanagingmajorincidents,andformanaginginformationsecurityincidents.
Informationaboutincidentsshouldbestoredinincidentrecordsinasuitabletool.Ideally,thistoolshouldalsoprovidelinkstorelatedCIs,changes,problems,knownerrors,andotherknowledgetoenablequickandefficientdiagnosisandrecovery.ModernITservicemanagementtoolscanprovideautomatedmatchingofincidentstootherincidents,problems,orknownerrors,andcanevenprovideintelligentanalysisofincidentdatatogeneraterecommendationsforhelpingwithfutureincidents.
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Itisimportantthatpeopleworkingonanincidentprovidegood-qualityupdatesinatimelyfashion.Theseupdatesshouldincludeinformationaboutsymptoms,businessimpact,CIsaffected,actionscompleted,andactionsplanned.Eachoftheseshouldhaveatimestampandinformationaboutthepeopleinvolved,sothatthepeopleinvolvedorinterestedcanbekeptinformed.Theremayalsobeaneedforgoodcollaborationtoolssothatpeopleworkingonanincidentcancollaborateeffectively.
Incidentsmaybediagnosedandresolvedbypeopleinmanydifferentgroups,dependingonthecomplexityoftheissueortheincidenttype.Allofthesegroupsneedtounderstandtheincidentmanagementprocess,andhowtheircontributiontothishelpstomanagethevalue,outcomes,costs,andrisksoftheservicesprovided:
Someincidentswillberesolvedbytheusersthemselves,usingself-help.Useofspecificself-helprecordsshouldbecapturedforuseinmeasurementandimprovementactivities.Someincidentswillberesolvedbytheservicedesk.Morecomplexincidentswillusuallybeescalatedtoasupportteamforresolution.Typically,theroutingisbasedontheincidentcategory,whichshouldhelptoidentifythecorrectteam.Incidentscanbeescalatedtosuppliersorpartners,whooffersupportfortheirproductsandservices.Themostcomplexincidents,andallmajorincidents,oftenrequireatemporaryteamtoworktogethertoidentifytheresolution.Thisteammayincluderepresentativesofmanystakeholders,includingtheserviceprovider,suppliers,users,etc.Insomeextremecases,disasterrecoveryplansmaybeinvokedtoresolveanincident.Disasterrecoveryisdescribedintheservicecontinuitymanagementpractice(section5.2.12).
Effectiveincidentmanagementoftenrequiresahighlevelofcollaborationwithinandbetweenteams.Theseteamsmayincludetheservicedesk,technicalsupport,applicationsupport,andvendors.Collaborationcanfacilitateinformation-sharingandlearning,aswellashelpingtosolvetheincidentmoreefficientlyandeffectively.
TipSomeorganizationsuseatechniquecalledswarmingtohelpmanageincidents.Thisinvolvesmanydifferentstakeholdersworkingtogetherinitially,
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untilitbecomesclearwhichofthemisbestplacedtocontinueandwhichcanmoveontoothertasks.
Third-partyproductsandservicesthatareusedascomponentsofaservicerequiresupportagreementswhichaligntheobligationsofthesupplierwiththecommitmentsmadebytheserviceprovidertocustomers.Incidentmanagementmayrequirefrequentinteractionwiththesesuppliers,androutinemanagementofthisaspectofsuppliercontractsisoftenpartoftheincidentmanagementpractice.Asuppliercanalsoactasaservicedesk,loggingandmanagingallincidentsandescalatingthemtosubjectmatterexpertsorotherpartiesasrequired.
Thereshouldbeaformalprocessforloggingandmanagingincidents.Thisprocessdoesnotusuallyincludedetailedproceduresforhowtodiagnose,investigate,andresolveincidents,butcanprovidetechniquesformakinginvestigationanddiagnosismoreefficient.Theremaybescriptsforcollectinginformationfromusersduringinitialcontact,andthismayleaddirectlytodiagnosisandresolutionofsimpleincidents.Investigationofmorecomplicatedincidentsoftenrequiresknowledgeandexpertise,ratherthanproceduralsteps.
Dealingwithincidentsispossibleineveryvaluechainactivity,thoughthemostvisible(duetoeffectonusers)areincidentsinanoperationalenvironment.
Figure5.20showsthecontributionofincidentmanagementtotheservicevaluechain,withthepracticebeingappliedmainlytotheengage,anddeliverandsupportvaluechainactivities.Exceptforplan,otheractivitiesmayuseinformationaboutincidentstohelpsetpriorities:
ImproveIncidentrecordsareakeyinputtoimprovementactivities,andareprioritizedbothintermsofincidentfrequencyandseverity.EngageIncidentsarevisibletousers,andsignificantincidentsarealsovisibletocustomers.Goodincidentmanagementrequiresregularcommunicationtounderstandtheissues,setexpectations,providestatusupdates,andagreethattheissuehasbeenresolvedsotheincidentcanbeclosed.DesignandtransitionIncidentsmayoccurintestenvironments,aswellasduringservicereleaseanddeployment.Thepracticeensurestheseincidentsareresolvedinatimelyandcontrolledmanner.Obtain/buildIncidentsmayoccurindevelopmentenvironments.Incidentmanagementpracticeensurestheseincidentsareresolvedinatimelyandcontrolledmanner.DeliverandsupportIncidentmanagementmakesasignificantcontributiontosupport.Thisvaluechainactivityincludesresolvingincidentsandproblems.
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Figure5.20Heatmapofthecontributionofincidentmanagementtovaluechainactivities
TheITILstory:Axle’sincidentmanagement
Radhika:AxlefacesmanypotentialITandnon-ITincidents.Carscanbreakdown,roadaccidentsmightoccur,orourcustomersmightfacechallengeswithunfamiliarroadrules.
Marco:Acarbookingcanbeaffectedbyanerrorinourapp,orbyausergettinglostduetoanavigationerrorwithoursoftware.Whenincidentsoccur,wehavetobereadytorestorenormalservicesassoonaspossible.Wealsohavetomakesureourteamknowshowandwhentoswitchfrompre-definedrecoveryprocedurestoswarmingandcollectiveanalysis.
Radhika:Wealsomakesurethatsuchcasesarefollowedbyinvestigationandimprovements.
Henri:Axlehasdevelopedclearprocessesforalltypesofincidents,withworkaroundsavailableforcasesthathappenfrequently,suchasatyrepunctureorlossofinternetconnectivity.
Radhika:Ourteamsworktogetherwithoursuppliersandpartnerstoensurefastandeffectiveincidentresponse.Wedevelopandtestrecoveryprocedurestogetherwiththepartnersinvolvedinanyincidentsweexperience.
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5.2.6 ITassetmanagement
KeymessageThepurposeoftheITassetmanagementpracticeistoplanandmanagethefulllifecycleofallITassets,tohelptheorganization:
maximizevaluecontrolcostsmanageriskssupportdecision-makingaboutpurchase,re-use,retirement,anddisposalofassetsmeetregulatoryandcontractualrequirements.
Definition:ITassetAnyfinanciallyvaluablecomponentthatcancontributetothedeliveryofanITproductorservice.
ThescopeofITassetmanagementtypicallyincludesallsoftware,hardware,networking,cloudservices,andclientdevices.Insomecases,itmayalsoincludenon-ITassetssuchasbuildingsorinformationwherethesehaveafinancialvalueandarerequiredtodeliveranITservice.ITassetmanagementcanincludeoperationaltechnology(OT),includingdevicesthatarepartoftheInternetofThings.ThesearetypicallydevicesthatwerenottraditionallythoughtofasITassets,butthatnowincludeembeddedcomputingcapabilityandnetworkconnectivity.
Typesofassetmanagement
Assetmanagementisawell-establishedpracticethatincludestheacquisition,operation,care,anddisposaloforganizationalassets,particularlycritical
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ITassetmanagement(ITAM)isasub-practiceofassetmanagementthatisspecificallyaimedatmanagingthelifecyclesandtotalcostsofITequipmentandinfrastructure.
Softwareassetmanagement(SAM)isanaspectofITassetmanagementthatisspecificallyaimedatmanagingtheacquisition,development,release,deployment,maintenance,andeventualretirementofsoftwareassets.SAMproceduresprovideeffectivemanagement,control,andprotectionofsoftwareassets.
Understandingthecostandvalueofassetsisessentialtoalsocomprehendingthecostandvalueofproductsandservices,andisthereforeanimportantunderpinningfactorineverythingtheserviceproviderdoes.ITassetmanagementcontributestothevisibilityofassetsandtheirvalue,whichisakeyelementtosuccessfulservicemanagementaswellasbeingusefultootherpractices.
ITassetmanagementrequiresaccurateinventoryinformation,whichitkeepsinanassetregister.Thisinformationcanbegatheredinanaudit,butitismuchbettertocaptureitaspartoftheprocessesthatchangethestatusofassets,forexample,whennewhardwareisdelivered,orwhenanewinstanceofacloudserviceisrequested.IfITassetmanagementhasgoodinterfaceswithotherpractices,includingserviceconfigurationmanagement,incidentmanagement,changecontrol,anddeploymentmanagement,thentheassetstatusinformationcanbemaintainedwithlesseffort.Auditsarestillneeded,butthesecanbelessfrequent,andareeasiertodowhenthereisalreadyanaccurateassetregister.
ITassetmanagementhelpstooptimizetheuseofvaluableresources.Forexample,thenumberofsparecomputersanorganizationrequirescanbecalculatedbasedonservicelevelagreementcommitments,themeasuredperformanceofservicerequests,anddemandpredictionsfromcapacityandperformancemanagement.
SomeorganizationsdiscoveraneedforITassetmanagementafterasoftwarevendorrequestsanauditoflicenceuse.Thiscanbeverystressfuliftherequiredinformationhasnotbeenmaintained,andcanleadtosignificantcosts,bothincarryingouttheauditandthenpayinganyadditionallicencecoststhatareidentified.ItismuchcheaperandeasiertosimplymaintaininformationaboutsoftwarelicenceuseaspartofnormalITassetmanagementactivity,andtoprovidethisinresponsetoanyvendorrequests.Softwarerunsonhardware,sothemanagementofsoftwareandhardwareassetsshouldbecombinedtoensurethatalllicencesareproperlymanaged.Forthesamereason,themanagementofcloud-basedassetsshouldalsobeincluded.
Thecostofcloudservicescaneasilygetoutofcontroliftheorganizationdoesnot
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managetheseinthesamewayasotherITassets.Eachindividualuseofacloudservicemayberelativelycheap,butbyspendinginsmallamountsitiseasytoconsumemuchmoreresourcethanwasplanned,leavingtheorganizationwithacorrespondinglylargebill.Again,goodITassetmanagementcanhelptocontrolthis.
TheactivitiesandrequirementsofITassetmanagementwillvaryfordifferenttypesofasset:
Hardwareassetsmustbelabelledforclearidentification.Itisimportanttoknowwheretheyareandtohelpprotectthemfromtheft,damage,anddataleakage.Theymayneedspecialhandlingwhentheyarere-usedordecommissioned;forexample,erasureorshreddingofdiskdrivesdependsoninformationsecurityrequirements.Hardwareassetsmayalsobesubjecttoregulatoryrequirements,suchastheEUWasteElectricalandElectronicEquipmentDirective.Softwareassetsmustbeprotectedfromunlawfulcopying,whichcouldresultinunlicenseduse.Theorganizationmustensurethatlicencetermsareadheredtoandthatlicencesareonlyre-usedinwaysthatareallowedunderthecontract.Itisimportanttoretainverifiedproofofpurchaseandentitlementtorunthesoftware.Itisveryeasytolosesoftwarelicenceswhenequipmentisdecommissioned,soitisimportantthattheITassetmanagementprocessrecoverstheselicencesandmakesthemavailableforre-usewhereappropriate.Cloud-basedassetsmustbeassignedtospecificproductsorgroupssothatcostscanbemanaged.Fundingmustbemanagedsothattheorganizationhastheflexibilitytoinvokenewinstancesofcloudusewhenneeded,andtoremoveinstancesthatarenotneeded,withouttheriskofuncontrolledcosts.Contractualarrangementsmustbeunderstoodandadheredto,inthesamewayasforsoftwarelicences.Clientassetsmustbeassignedtoindividualswhotakeresponsibilityfortheircare.Processesareneededtomanagelostorstolendevices,andtoolsmaybeneededtoerasesensitivedatafromthemorotherwiseensurethatthisdataisnotlostorstolenwiththedevice.
Inallcases,theorganizationneedstoensurethatthefulllifecycleofeachassetismanaged.Thisincludesmanagingassetprovisioning;receiving,decommissioning,andreturn;hardwaredisposal;softwarere-use;leasingmanagement;andpotentiallymanyotheractivities.
ITassetmanagementmaintainsinformationabouttheassets,theircosts,andrelatedcontracts.Therefore,theITassetregisterisoftencombined(orfederated)withtheinformationstoredinaconfigurationmanagementsystem(CMS).Ifthetwoareseparatethenitisimportantthatassetscanbemappedbetweenthem,usuallybyuseofastandardnamingconvention.Itmayalsobenecessarytocombine(orfederate)theITassetregisterwithsystemsusedtomanageotherfinancialassets,orwithsystemsusedtomanagesuppliers.
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InsomeorganizationsthereisacentralizedteamresponsibleforITassetmanagement.Thisteammayalsoberesponsibleforconfigurationmanagement.Inotherorganizations,eachtechnicalteammayberesponsibleformanagementoftheITassetstheysupport;forexample,thestorageteamcouldmanagestorageassetswhilethenetworkingteammanagesnetworkassets.Eachorganizationmustconsideritsowncontextandculturetochoosetheappropriatelevelofcentralization.However,havingsomecentralroleshelpstoensureassetdataqualityandthedevelopmentofexpertiseonspecificaspectssuchassoftwarelicensingandinventorysystems.
ITassetmanagementtypicallyincludesthefollowingactivities:
Define,populate,andmaintaintheassetregisterintermsofstructureandcontent,andthestoragefacilitiesforassetsandrelatedmediaControltheassetlifecycleincollaborationwithotherpractices(forexample,upgradingobsoletesoftwareoronboardingnewstaffmemberswithalaptopandmobilephone)andrecordallchangestoassets(status,location,characteristics,assignment,etc.)Providecurrentandhistoricaldata,reports,andsupporttootherpracticesaboutITassetsAuditassets,relatedmedia,andconformity(particularlywithregulations,andlicencetermsandconditions)anddrivecorrectiveandpreventiveimprovementstodealwithdetectedissues.
Figure5.21showsthecontributionofITassetmanagementtotheservicevaluechain,withthepracticebeingappliedmainlytothedesignandtransition,andobtain/buildvaluechainactivities:
PlanMostpoliciesandguidanceforITassetmanagementcomesfromtheservicefinancialmanagementpractice.Someassetmanagementpoliciesaredrivenbygovernanceandsomearedrivenbyotherpractices,suchasinformationsecuritymanagement.ITassetmanagementcanbeconsideredastrategicpracticethathelpstheorganizationtounderstandandmanagecostandvalue.ImproveThisvaluechainactivitymustconsidertheimpactonITassets,andsomeimprovementswilldirectlyinvolveITassetmanagementinhelpingtounderstandandmanagecosts.EngageTheremaybesomedemandforITassetmanagementfromstakeholders.Forexample,ausermayreportalostorstolenmobilephone,oracustomermayrequirereportsonthevalueofITassets.DesignandtransitionThisvaluechainactivitychangesthestatusofITassets,andsodrivesmostITassetmanagementactivity.Obtain/buildITassetmanagementsupportsassetprocurementtoensurethatassetsaretraceablefromthebeginningoftheirlifecycle.
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Figure5.21HeatmapofthecontributionofITassetmanagementtovaluechainactivities
5.2.7 Monitoringandeventmanagement
KeymessageThepurposeofthemonitoringandeventmanagementpracticeistosystematicallyobserveservicesandservicecomponents,andrecordandreportselectedchangesofstateidentifiedasevents.Thispracticeidentifiesandprioritizesinfrastructure,services,businessprocesses,andinformationsecurityevents,andestablishestheappropriateresponsetothoseevents,includingrespondingtoconditionsthatcouldleadtopotentialfaultsorincidents.
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Definition:Event
Anychangeofstatethathassignificanceforthemanagementofaserviceorotherconfigurationitem(CI).EventsaretypicallyrecognizedthroughnotificationscreatedbyanITservice,CI,ormonitoringtool.
Themonitoringandeventmanagementpracticemanageseventsthroughouttheirlifecycletoprevent,minimize,oreliminatetheirnegativeimpactonthebusiness.
ThemonitoringpartofthepracticefocusesonthesystematicobservationofservicesandtheCIsthatunderpinservicestodetectconditionsofpotentialsignificance.Monitoringshouldbeperformedinahighlyautomatedmanner,andcanbedoneactivelyorpassively.Theeventmanagementpartfocusesonrecordingandmanagingthosemonitoredchangesofstatethataredefinedbytheorganizationasanevent,determiningtheirsignificance,andidentifyingandinitiatingthecorrectcontrolactiontomanagethem.Frequentlythecorrectcontrolactionwillbetoinitiateanotherpractice,butsometimesitwillbetotakenoactionotherthantocontinuemonitoringthesituation.Monitoringisnecessaryforeventmanagementtotakeplace,butnotallmonitoringresultsinthedetectionofanevent.
Notalleventshavethesamesignificanceorrequirethesameresponse.Eventsareoftenclassifiedasinformational,warning,andexceptions.Informationaleventsdonotrequireactionatthetimetheyareidentified,butanalysingthedatagatheredfromthematalaterdatemayuncoverdesirable,proactivestepsthatcanbebeneficialtotheservice.Warningeventsallowactiontobetakenbeforeanynegativeimpactisactuallyexperiencedbythebusiness,whereasexceptioneventsindicatethatabreachtoanestablishednormhasbeenidentified(forexample,toaservicelevelagreement).Exceptioneventsrequireaction,eventhoughbusinessimpactmaynotyethavebeenexperienced.
Theprocessesandproceduresneededinthemonitoringandeventmanagementpracticemustaddressthesekeyactivitiesandmore:
identifyingwhatservices,systems,CIs,orotherservicecomponentsshouldbemonitored,andestablishingthemonitoringstrategyimplementingandmaintainingmonitoring,leveragingboththenativemonitoringfeaturesoftheelementsbeingobservedaswellastheuseofdesigned-for-purposemonitoringtoolsestablishingandmaintainingthresholdsandothercriteriafordeterminingwhich
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changesofstatewillbetreatedasevents,andchoosingcriteriatodefineeachtypeofevent(informational,warning,orexception)establishingandmaintainingpoliciesforhoweachtypeofdetectedeventshouldbehandledtoensurepropermanagementimplementingprocessesandautomationsrequiredtooperationalizethedefinedthresholds,criteria,andpolicies.
Thispracticeishighlyinteractivewithotherpracticesparticipatingintheservicevaluechain.Forexample,someeventswillindicateacurrentissuethatqualifiesasanincident.Inthiscase,thecorrectcontrolactionwillbetoinitiateactivityintheincidentmanagementpractice.Repeatedeventsshowingperformanceoutsideofdesiredlevelsmaybeevidenceofapotentialproblem,whichwouldinitiateactivityintheproblemmanagementpractice.Forsomeevents,thecorrectresponseistoinitiateachange,engagingthechangecontrolpractice.
Althoughtheworkofthispractice,onceputinplace,ishighlyautomated,humaninterventionisstillrequired,andisinfactessential.Forthedefinitionofmonitoringstrategiesandspecificthresholdsandassessmentcriteria,itcanhelptobringinabroadrangeofperspectives,includinginfrastructure,applications,serviceowners,servicelevelmanagement,andrepresentationfromthewarranty-relatedpractices.Rememberthatthestartingpointforthispracticeislikelytobesimple,settingthestageforalaterincreaseincomplexity,soitisimportantthattheexpectationsofparticipantsaremanaged.
Organizationsandpeoplearealsocriticaltoprovidinganappropriateresponsetomonitoreddataandevents,inalignmentwithpoliciesandorganizationalpriorities.Rolesandresponsibilitiesmustbeclearlydefined,andeachpersonorgroupmusthaveeasy,timelyaccesstotheinformationneededtoperformtheirrole.
Automationiskeytosuccessfulmonitoringandeventmanagement.Someservicecomponentscomeequippedwithbuilt-inmonitoringandreportingcapabilitiesthatcanbeconfiguredtomeettheneedsofthepractice,butsometimesitisnecessarytoimplementandconfigurepurpose-builtmonitoringtools.Themonitoringitselfcanbeeitheractiveorpassive.Inactivemonitoring,toolswillpollkeyCIs,lookingattheirstatustogeneratealertswhenanexceptionconditionisidentified.Inpassivemonitoring,theCIitselfgeneratestheoperationalalerts.
Automatedtoolsshouldalsobeusedforthecorrelationofevents.ThesefeaturesmaybeprovidedbymonitoringtoolsorothertoolssuchasITSMworkflowsystems.Therecanbeahugevolumeofdatageneratedbythispractice,butwithoutclearpoliciesandstrategiesonhowtolimit,filter,andusethisdata,itwillbeofnovalue.
Ifthirdpartiesareprovidingproductsorservicesintheoverallservicearchitecture,theyshouldalsosupplyexpertiseinthemonitoringandreportingcapabilitiesoftheirofferings.Leveragingthisexpertisecansavetimewhentryingtooperationalizemonitoringandeventmanagementstrategiesandworkflows.IfsomeITfunctions,
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suchasinfrastructuremanagement,arepartiallyorwhollyoutsourcedtoasupplier,theymaybereluctanttoexposemonitoringoreventdatarelatedtotheelementstheymanage.Don’taskfordatathatisnottrulyneeded,butifdataisrequired,makesurethattheprovisionofthatdataisexplicitlypartofthecontractforthesupplier’sservices.
Figure5.22showsthecontributionofmonitoringandeventmanagementtotheservicevaluechain,withthepracticebeinginvolvedinallvaluechainactivitiesexceptplan:
ImproveThemonitoringandeventmanagementpracticeisessentialtothecloseobservationoftheenvironmenttoevaluateandproactivelyimproveitshealthandstability.EngageMonitoringandeventmanagementmaybethesourceofinternalengagementforaction.DesignandtransitionMonitoringdatainformsdesigndecisions.Monitoringisanessentialcomponentoftransition:itprovidesinformationaboutthetransitionsuccessinallenvironments.Obtain/buildMonitoringandeventmanagementsupportsdevelopmentenvironments,ensuringtheirtransparencyandmanageability.DeliverandsupportThepracticeguideshowtheorganizationmanagesinternalsupportofidentifiedevents,initiatingotherpracticesasappropriate.
Figure5.22Heatmapofthecontributionofmonitoringandeventmanagementtovaluechainactivities
5.2.8 Problemmanagement
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Keymessage
Thepurposeoftheproblemmanagementpracticeistoreducethelikelihoodandimpactofincidentsbyidentifyingactualandpotentialcausesofincidents,andmanagingworkaroundsandknownerrors.
Definitions
ProblemAcause,orpotentialcause,ofoneormoreincidents.KnownerrorAproblemthathasbeenanalysedbuthasnotbeenresolved.
Figure5.23Thephasesofproblemmanagement
Everyservicehaserrors,flaws,orvulnerabilitiesthatmaycauseincidents.Theymayincludeerrorsinanyofthefourdimensionsofservicemanagement.Manyerrorsareidentifiedandresolvedbeforeaservicegoeslive.However,someremainunidentifiedorunresolved,andmaybearisktoliveservices.InITIL,theseerrorsarecalledproblemsandtheyareaddressedbytheproblemmanagementpractice.
Problemsarerelatedtoincidents,butshouldbedistinguishedastheyaremanagedindifferentways:
Incidentshaveanimpactonusersorbusinessprocesses,andmustberesolvedsothatnormalbusinessactivitycantakeplace.Problemsarethecausesofincidents.Theyrequireinvestigationandanalysistoidentifythecauses,developworkarounds,andrecommendlonger-termresolution.Thisreducesthenumberandimpactoffutureincidents.
Problemmanagementinvolvesthreedistinctphases,asshowninFigure5.23.
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Problemidentificationactivitiesidentifyandlogproblems.Theseinclude:
performingtrendanalysisofincidentrecordsdetectionofduplicateandrecurringissuesbyusers,servicedesk,andtechnicalsupportstaffduringmajorincidentmanagement,identifyingariskthatanincidentcouldrecuranalysinginformationreceivedfromsuppliersandpartnersanalysinginformationreceivedfrominternalsoftwaredevelopers,testteams,andprojectteams.
Othersourcesofinformationcanalsoleadtoproblemsbeingidentified.
Problemcontrolactivitiesincludeproblemanalysis,anddocumentingworkaroundsandknownerrors.
Problemsareprioritizedforanalysisbasedontheriskthattheypose,andaremanagedasrisksbasedontheirpotentialimpactandprobability.Itisnotessentialtoanalyseeveryproblem;itismorevaluabletomakesignificantprogressonthehighest-priorityproblemsthantoinvestigateeveryminorproblemthattheorganizationisawareof.
Incidentstypicallyhavemanyinterrelatedcauses,andtherelationshipsbetweenthemcanbecomplex.Problemcontrolshouldconsiderallcontributorycauses,includingcausesthatcontributedtothedurationandimpactofincidents,aswellasthosethatledtotheincidentshappening.Itisimportanttoanalyseproblemsfromtheperspectiveofallfourdimensionsofservicemanagement.Forexample,anincidentthatwascausedbyinaccuratedocumentationmayrequirenotonlyacorrectiontothatdocumentationbutalsotrainingandawarenessforsupportpersonnel,suppliers,andusers.
Whenaproblemcannotberesolvedquickly,itisoftenusefultofindanddocumentaworkaroundforfutureincidents,basedonanunderstandingoftheproblem.Workaroundsaredocumentedinproblemrecords.Thiscanbedoneatanystage;itdoesn’tneedtowaitforanalysistobecomplete.Ifaworkaroundhasbeendocumentedearlyinproblemcontrol,thenthisshouldbereviewedandimprovedafterproblemanalysishasbeencompleted.
Definition:WorkaroundAsolutionthatreducesoreliminatestheimpactofanincidentorproblemforwhichafullresolutionisnotyetavailable.Someworkaroundsreducethe
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likelihoodofincidents.
Aneffectiveincidentworkaroundcanbecomeapermanentwayofdealingwithsomeproblemswhenresolvingtheproblemisnotviableorcost-effective.Inthiscase,theproblemremainsintheknownerrorstatus,andthedocumentedworkaroundisappliedshouldrelatedincidentsoccur.Everydocumentedworkaroundshouldincludeacleardefinitionofthesymptomstowhichitapplies.Insomecases,workaroundapplicationcanbeautomated.
Forotherproblems,awaytofixtheerrorshouldbefound.Thisisapartoferrorcontrol.Errorcontrolactivitiesmanageknownerrors,whichareproblemswhereinitialanalysishasbeencompleted;itusuallymeansthatfaultycomponentshavebeenidentified.Errorcontrolalsoincludesidentificationofpotentialpermanentsolutionswhichmayresultinachangerequestforimplementationofasolution,butonlyifthiscanbejustifiedintermsofcost,risks,andbenefits.
Errorcontrolregularlyre-assessesthestatusofknownerrorsthathavenotbeenresolved,includingoverallimpactoncustomers,availabilityandcostofpermanentresolutions,andeffectivenessofworkarounds.Theeffectivenessofworkaroundsshouldbeevaluatedeachtimeaworkaroundisused,astheworkaroundmaybeimprovedbasedontheassessment.
Problemmanagementactivitiesareverycloselyrelatedtoincidentmanagement.Thepracticesneedtobedesignedtoworktogetherwithinthevaluechain.Activitiesfromthesetwopracticesmaycomplementeachother(forexample,identifyingthecausesofanincidentisaproblemmanagementactivitythatmayleadtoincidentresolution),buttheymayalsoconflict(forexample,investigatingthecauseofanincidentmaydelayactionsneededtorestoreservice).
Examplesofinterfacesbetweenproblemmanagement,riskmanagement,changecontrol,knowledgemanagement,andcontinualimprovementareasfollows:
Problemmanagementactivitiescanbeorganizedasaspecificcaseofriskmanagement:theyaimtoidentify,assess,andcontrolrisksinanyofthefourdimensionsofservicemanagement.Itisusefultoadoptriskmanagementtoolsandtechniquesforproblemmanagement.Implementationofproblemresolutionisoftenoutsidethescopeofproblemmanagement.Problemmanagementtypicallyinitiatesresolutionviachangecontrolandparticipatesinthepost-implementationreview;however,approvingandimplementingchangesisoutofscopefortheproblemmanagementpractice.Outputfromtheproblemmanagementpracticeincludesinformationanddocumentationconcerningworkaroundsandknownerrors.Inaddition,problemmanagementmayutilizeinformationinaknowledgemanagementsystemto
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Manyproblemmanagementactivitiesrelyontheknowledgeandexperienceofstaff,ratherthanonfollowingdetailedprocedures.Peopleresponsiblefordiagnosingproblemsoftenneedtheabilitytounderstandcomplexsystems,andtothinkabouthowdifferentfailuresmighthaveoccurred.Developingthiscombinationofanalyticalandcreativeabilityrequiresmentoringandtime,aswellassuitabletraining.
TheITILstory:Axle’sproblemmanagement
Henri:Axleparticipatesinfeedbackprogrammeswithallourcarmanufacturers.Wesharemaintenanceandrepairdatawiththemtohelpthemtocontinuallyimprovetheirservices.Inreturn,theyalertustoanypotentialproblemsinourvehicles.
Radhika:Recently,wewerealertedtoapotentialprobleminourfleet.Acarmanufacturerhadrecalledapopularmodelinourfleettofixanerrorfoundintheairbagactivationsystem.
Su:FortunatelyitwasfoundbeforeAxleexperiencedanyincidents,buttherewasstillthepotentialforissuestooccur,whichmeantitwasaproblemwehadtodealwith.
Marco:Wefollowasimilarpracticeforourothersystemsandservices,includingalloftheITcomponentsweuse.
Radhika:Axle’sincidentmanagementpracticeisoneofourmostimportantsourcesofinformationonerrorsinoursystems.Anymajorincidentweexperienceisfollowedbyaninvestigationintothepossiblecauses.Sometimesthiswillleadustofindandfixerrorsinthesystems,andweoftenidentifywaystodecreasethenumberofincidentsAxlewillhaveinthefuture.
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Figure5.24Heatmapofthecontributionofproblemmanagementtovaluechainactivities
Problemmanagementisusuallyfocusedonerrorsinoperationalenvironments.Figure5.24showsthecontributionofproblemmanagementtotheservicevaluechain,withthepracticebeingappliedmainlytotheimprove,anddeliverandsupportvaluechainactivities:
ImproveThisisthemainfocusareaforproblemmanagement.Effectiveproblemmanagementprovidestheunderstandingneededtoreducethenumberofincidentsandtheimpactofincidentsthatcan’tbeprevented.EngageProblemsthathaveasignificantimpactonserviceswillbevisibletocustomersandusers.Insomecases,customersmaywishtobeinvolvedinproblemprioritization,andthestatusandplansformanagingproblemsshouldbecommunicated.Workaroundsareoftenpresentedtousersviaaserviceportal.DesignandtransitionProblemmanagementprovidesinformationthathelpstoimprovetestingandknowledgetransfer.Obtain/buildProductdefectsmaybeidentifiedbyproblemmanagement;thesearethenmanagedaspartofthisvaluechainactivity.DeliverandsupportProblemmanagementmakesasignificantcontributionbypreventingincidentrepetitionandsupportingtimelyincidentresolution.
5.2.9 Releasemanagement
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Keymessage
Thepurposeofthereleasemanagementpracticeistomakenewandchangedservicesandfeaturesavailableforuse.
Definition:Release
Aversionofaserviceorotherconfigurationitem,oracollectionofconfigurationitems,thatismadeavailableforuse.
Areleasemaycomprisemanydifferentinfrastructureandapplicationcomponentsthatworktogethertodeliverneworchangedfunctionality.Itmayalsoincludedocumentation,training(forusersorITstaff),updatedprocessesortools,andanyothercomponentsthatarerequired.Eachcomponentofareleasemaybedevelopedbytheserviceproviderorprocuredfromathirdpartyandintegratedbytheserviceprovider.
Releasescanrangeinsizefromtheverysmall,involvingjustoneminorchangedfeature,totheverylarge,involvingmanycomponentsthatdeliveracompletelynewservice.Ineithercase,areleaseplanwillspecifytheexactcombinationofnewandchangedcomponentstobemadeavailable,andthetimingfortheirrelease.
Areleasescheduleisusedtodocumentthetimingforreleases.Thisscheduleshouldbenegotiatedandagreedwithcustomersandotherstakeholders.Areleasepost-implementationreviewenableslearningandimprovement,andhelpstoensurethatcustomersaresatisfied.
Insomeenvironments,almostallofthereleasemanagementworktakesplacebeforedeployment,withplansinplaceastoexactlywhichcomponentswillbedeployedinaparticularrelease.Thedeploymentthenmakesthenewfunctionalityavailable.
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Figure5.25Releasemanagementinatraditional/waterfallenvironment
Figure5.26ReleasemanagementinanAgile/DevOpsenvironment
Figure5.25showshowreleasemanagementishandledinatraditional/waterfallenvironment.Intheseenvironmentsreleasemanagementanddeploymentmaybecombinedandexecutedasasingleprocess.
InanAgile/DevOpsenvironmenttherecanbesignificantreleasemanagementactivityafterdeployment.Inthesecases,softwareandinfrastructurearetypicallydeployedinmanysmallincrements,andreleasemanagementactivityenablesthenewfunctionalityatalaterpoint.Thismaybedoneasaverysmallchange.Figure5.26showshowreleasemanagementishandledinsuchanenvironment.
Releasemanagementisoftenstaged,withpilotreleasesbeingmadeavailabletoasmallnumberofuserstoensurethateverythingisworkingcorrectlybeforethereleaseisgiventoadditionalgroups.ThisstagedapproachcanworkwitheitherofthetwosequencesshowninFigures5.25and5.26.Sometimesareleasemustbemadeavailabletoallusersatthesametime,aswhenamajorrestructuringoftheunderlyingshareddataisrequired.
Stagingofareleaseisoftenachievedusingblue/greenreleasesorfeatureflags:
Blue/greenreleasesusetwomirroredproductionenvironments.Userscanbeswitchedtoanenvironmentthathasbeenupdatedwiththenewfunctionalitybyuseofnetworktoolsthatconnectthemtothecorrectenvironment.
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•Featureflagsenablespecificfeaturestobereleasedtoindividualusersorgroupsinacontrolledway.Thenewfunctionalityisdeployedtotheproductionenvironmentwithoutbeingreleased.Auserconfigurationsettingthenreleasesthenewfunctionalitytoindividualusers(orgroupsofusers)asneeded.
InaDevOpsenvironment,releasemanagementisoftenintegratedwiththecontinuousintegrationandcontinuousdeliverytoolchain.Thetoolsofreleasemanagementmaybetheresponsibilityofadedicatedperson,butdecisionsaboutthereleasecanbemadebythedevelopmentteam.Inamoretraditionalenvironment,releasesareenabledbythedeploymentofthecomponents.EachreleaseisdescribedbyareleaserecordonanITSMtool.ReleaserecordsarelinkedtoCIsandchangerecordstomaintaininformationabouttherelease.
Componentsofareleaseareoftenprovidedbythirdparties.Examplesofthird-partycomponentsincludecloudinfrastructure,softwareasaservicecomponents,andthird-partysupport.Itisalsocommontoincludethird-partysoftware,oropen-sourcesoftware,aspartofapplicationdevelopment.Releasemanagementneedstoworkacrossorganizationalboundariestoensurethatallcomponentsarecompatibleandtoprovideaseamlessexperienceforusers.Italsoneedstoconsidertheimpactofchangestothird-partycomponents,andtoplanforhowthesewillbereleased.
Figure5.27Heatmapofthecontributionofreleasemanagementtovaluechainactivities
Figure5.27showsthecontributionofreleasemanagementtotheservicevaluechain,withthepracticebeinginvolvedinallvaluechainactivities:
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PlanPolicies,guidance,andtimelinesforreleasesaredrivenbytheorganizationalstrategyandserviceportfolio.Thesize,scope,andcontentofeachreleaseshouldbeplannedandmanaged.ImproveNeworchangedreleasesmayberequiredtodeliverimprovements,andtheseshouldbeplannedandmanagedinthesamewayasanyotherrelease.EngageThecontentandcadenceofreleasesmustbedesignedtomatchtheneedsandexpectationsofcustomersandusers.DesignandtransitionReleasemanagementensuresthatneworchangedservicesaremadeavailabletocustomersinacontrolledway.Obtain/buildChangestocomponentsarenormallyincludedinarelease,deliveredinacontrolledway.DeliverandsupportReleasesmayimpactondeliveryandsupport.Training,documentation,releasenotes,knownerrors,userguides,supportscripts,etc.areprovidedbythispracticetofacilitateservicerestoration.
TheITILstory:Axle’sreleasemanagement
Marco:Whenwereleaseupdatestoourbookingapp,wemakesurethey’reaccompaniedbyuserawarenessandmarketingcampaignsforourusers,customers,andteams.Weprovidespecifictrainingfortheservicedeskandsupportteamsthatareinternalandexternal.
Radhika:Somechangesmayneedextrasupportortheintroductionofnewcomponents.Forexample,AxleAwarewasreleasedwithanewusermanualtoexplainthesystem.WealsomadesuretheAwaresystemcouldsyncwiththeAxlebookingappbeforewereleasedit.
Henri:ThesupportgiventothenewappandAxleAwarehasreallyhelpedthereleaseofbothofthesenewofferings,leadingtogreatfirstimpressionsandastronglevelofadoptionamongstourusersandcustomers,aswellasourownteams.
5.2.10 Servicecataloguemanagement
KeymessageThepurposeoftheservicecataloguemanagementpracticeistoprovidea
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singlesourceofconsistentinformationonallservicesandserviceofferings,andtoensurethatitisavailabletotherelevantaudience.
Thelistofserviceswithintheservicecataloguerepresentsthosewhicharecurrentlyavailableandisasubsetofthetotallistofservicestrackedintheserviceprovider’sserviceportfolio.Servicecataloguemanagementensuresthatserviceandproductdescriptionsareexpressedclearlyforthetargetaudiencetosupportstakeholderengagementandservicedelivery.Theservicecataloguemaytakemanyformssuchasadocument,onlineportal,oratoolthatenablesthecurrentlistofservicestobecommunicatedtotheaudience.
5.2.10.1Servicecataloguemanagementactivities
Theservicecataloguemanagementpracticeincludesanongoingsetofactivitiesrelatedtopublishing,editing,andmaintainingserviceandproductdescriptionsandtheirrelatedofferings.Itprovidesaviewonthescopeofwhatservicesareavailable,andonwhatterms.Theservicecataloguemanagementpracticeissupportedbyrolessuchastheserviceownerandothersresponsibleformanaging,editing,andkeepinguptodatethelistofavailableservicesastheyareintroduced,changed,orretired.
Tailoredviews
Asdescribedabove,theservicecatalogueenablesthecreationofvalueandisusedbymanydifferentpracticeswithintheservicevaluechain.Becauseofthis,itneedstobeflexibleregardingwhatservicedetailsandattributesitpresents,basedonitsintendedpurpose.Assuch,organizationsmaywishtoconsiderprovidingdifferentviewsofthecataloguefordifferentaudiences.
Thefulllistofserviceswithinaservicecataloguemaynotbeapplicabletoallcustomersand/orusers.Likewise,thevariousattributesofservicessuchastechnicalspecifications,offerings,agreements,andcostsarenotapplicabletoallserviceconsumertypes.Thismeansthattheservicecatalogueshouldbeabletoprovidedifferentviewsandlevelsofdetailtodifferentstakeholders.Examplesofviewsinclude:
UserviewsProvideinformationonserviceofferingsthatcanberequested,andonprovisioningdetails.CustomerviewsProvideservicelevel,financial,andserviceperformancedata.ITtoITcustomerviewsProvidetechnical,security,andprocessinformationforuseinservicedelivery.
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Whilemultipleviewsoftheservicecataloguearepossible,thecreationofseparateorisolatedservicecatalogueswithindifferenttechnologysystemsshouldbeavoidedifpossibleasthiswillpromotesegregation,variability,andcomplexity.
FortheservicecataloguetobeperceivedasusefulbythecustomerorganizationitmustdomorethanprovideastaticplatformforpublishinginformationaboutITservices.Unlesstheservicecatalogueenablescustomerengagementbysupportingdiscussionsrelatedtostandardandnon-standardserviceofferingsand/orautomatesrequestandorderfulfilmentprocesses,thechancesofitsongoingadoptionasausefulandmeaningfulresourceareminimal.Forthisreason,theviewsofmanyorganizationsontheservicecataloguearefocusedontheconsumableororderableelementsofserviceofferings.Theseareoftencalledrequestcatalogues.
Definition:RequestcatalogueAviewoftheservicecatalogue,providingdetailsonservicerequestsforexistingandnewservices,whichismadeavailablefortheuser.
Figure5.28showsthecontributionofservicecataloguemanagementtotheservicevaluechain,withthepracticebeinginvolvedinallvaluechainactivities:
PlanTheservicecatalogueenablesstrategyandserviceportfolioinvestmentdecisionsbyprovidingdetailsoncurrentservicescopeandofferings.ImproveServicecataloguedescriptionsanddemandpatternsareconstantlymonitoredandevaluatedtosupportcontinualimprovement,alignment,andvaluecreation.EngageTheservicecatalogueenablesstrategic,tactical,andoperationalrelationshipswithcustomersandusersbyenablingandpotentiallyautomatingvariousaspectsofpracticessuchasrelationshipmanagement,requestmanagement,andtheservicedesk.
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Figure5.28Heatmapofthecontributionofservicecataloguemanagementtovaluechainactivities
DesignandtransitionTheservicecatalogueensuresboththeutilityandwarrantyaspectsofservicesareconsideredandpublished,includingtheinformationsecuritypolicy,ITservicecontinuitylevels,servicelevelagreements,andserviceofferings.Additionalactivitiesincludethedefinitionandcreationofservicedescriptions,requestmodels,andviewstobepublished.Obtain/buildServicecataloguemanagementsupportsthisvaluechainactivitybyprovidingservicecatalogueviewsforprocurementofcomponentsandservices.DeliverandsupportTheservicecatalogueprovidescontextforhowtheservicewillbedeliveredandsupported,andpublishesexpectationsrelatedtoagreementsandperformance.
5.2.11 Serviceconfigurationmanagement
KeymessageThepurposeoftheserviceconfigurationmanagementpracticeistoensurethataccurateandreliableinformationabouttheconfigurationofservices,andtheCIsthatsupportthem,isavailablewhenandwhereitisneeded.ThisincludesinformationonhowCIsareconfiguredandtherelationshipsbetween
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Definition:ConfigurationitemAnycomponentthatneedstobemanagedinordertodeliveranITservice.
ServiceconfigurationmanagementcollectsandmanagesinformationaboutawidevarietyofCIs,typicallyincludinghardware,software,networks,buildings,people,suppliers,anddocumentation.ServicesarealsotreatedasCIs,andconfigurationmanagementhelpstheorganizationtounderstandhowthemanyCIsthatcontributetoeachserviceworktogether.Figure5.29isasimplifieddiagramshowinghowmultipleCIscontributetoanITservice.
ConfigurationmanagementprovidesinformationontheCIsthatcontributetoeachserviceandtheirrelationships:howtheyinteract,relate,anddependoneachothertocreatevalueforcustomersandusers.Thisincludesinformationaboutdependenciesbetweenservices.Thishigh-levelviewisoftencalledaservicemaporservicemodel,andformspartoftheservicearchitecture.
Itisimportantthattheeffortneededtocollectandmaintainconfigurationinformationisbalancedwiththevaluethattheinformationcreates.Maintaininglargeamountsofdetailedinformationabouteverycomponent,anditsrelationshipstoothercomponents,canbecostly,andmaydeliververylittlevalue.Therequirementsforconfigurationmanagementmustbebasedonanunderstandingoftheorganization’sgoals,andhowconfigurationmanagementcontributestovaluecreation.
Thevaluecreatedbyconfigurationmanagementisindirect,butenablesmanyotherpracticestoworkefficientlyandeffectively.Assuch,planningforconfigurationmanagementshouldstartbyunderstandingwhoneedstheconfigurationinformation,howitwillbeused,whatisthebestwayforthemtoobtainit,andwhocanmaintainandupdatethisinformation.Sometimesitcanbemoreefficienttosimplycollecttheinformationwhenitisneeded,ratherthantohaveitcollectedinadvanceandmaintained,butonotheroccasionsitisessentialtohaveinformationavailableinaconfigurationmanagementsystem(CMS).ThetypeandamountofinformationrecordedforeachtypeofCIshouldbebasedonthevalueofthatinformation,thecostofmaintainingit,andhowtheinformationwillbeused.
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Figure5.29SimplifiedservicemodelforatypicalITservice
Definition:ConfigurationmanagementsystemAsetoftools,data,andinformationthatisusedtosupportserviceconfigurationmanagement.
Configurationinformationshouldbesharedinacontrolledway.Someinformationcouldbesensitive;forexample,itcouldbeusefultosomeonetryingtobreachsecuritycontrols,oritcouldincludepersonalinformationaboutusers,suchasphonenumbersandhomeaddresses.
Configurationinformationcanbestoredandpublishedinasingleconfigurationmanagementdatabase(CMDB)forthewholeorganization,butitismorecommonforittobedistributedacrossseveralsources.Ineithercaseitisimportanttomaintainlinksbetweenconfigurationrecords,sothatpeoplecanseethefullsetofinformationtheyneed,andhowthevariousCIsworktogether.SomeorganizationsfederateCMDBstoprovideanintegratedview.Othersmaymaintaindifferenttypesofdata;forexample,havingseparatedatastoresforassetmanagementdata(seesection5.2.6),configurationdetails,servicecatalogueinformation,andhigh-levelservicemodels.
Toolsthatareusedtologincidents,problems,andchangesneedaccessto
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configurationrecords.Forexample,anorganizationtryingtoidentifyproblemswithaservicemayneedtofindincidentsrelatedtoaspecificsoftwareversion,ormodelofdiskdrive.TheunderstandingoftheneedforthisinformationhelpstoestablishwhatCIattributesshouldbestoredforthisorganization;inthiscasesoftwareversionsanddiskdrivemodels.Todiagnoseincidents,visibilityofrecentchangestotheaffectedCIsmaybeneeded,sorelationshipsbetweenCIsandchangesmustbemaintained.
Manyorganizationsusedatacollectiontoolstogatherdetailedconfigurationinformationfrominfrastructureandapplications,andusethistopopulateaCMS.Thiscanbeeffective,butcanalsoencouragethecollectionoftoomuchdatawithoutsufficientinformationonrelationships,andhowthecomponentsworktogethertocreateaservice.SometimesconfigurationinformationisusedtoactuallycreatetheCI,ratherthanjusttodocumentit.Thisapproachisusedfor‘infrastructureasacode’,whereinformationontheinfrastructureismanagedinadatarepositoryandusedtoautomaticallyconfiguretheenvironment.
Alargeorganizationmayhaveateamthatisdedicatedtoconfigurationmanagement.Inotherorganizationsthispracticecanbecombinedwithchangecontrol,ortherecanbeateamresponsibleforchange,configuration,andreleasemanagement.SomeorganizationsapplyadistributedmodelwherefunctionalteamstakeownershipofupdatingandmaintainingtheCIswithintheircontrolandoversight.
Configurationmanagementtypicallyneedsprocessesto:
identifynewCIs,andaddthemtotheCMSupdateconfigurationdatawhenchangesaredeployedverifythatconfigurationrecordsarecorrectauditapplicationsandinfrastructuretoidentifyanythatarenotdocumented.
Figure5.30showsthecontributionofconfigurationmanagementtotheservicevaluechain,withthepracticebeinginvolvedinallvaluechainactivities:
PlanConfigurationmanagementisusedforplanningneworchangedservices.ImproveConfigurationmanagement,likeeveryotheraspectofservicemanagement,shouldbesubjecttomeasurementandcontinualimprovement.Sincethevalueofconfigurationmanagementtypicallycomesfromhowitfacilitatesotherpractices,itisimportanttounderstandwhatusethesepracticesaremakingofconfigurationinformation,andthenidentifyhowthiscanbeimproved.EngageSomestakeholders(partnersandsuppliers,consumers,regulators,etc.)mayrequireanduseconfigurationinformation,orprovidetheirconfigurationinformationtotheorganization.DesignandtransitionConfigurationmanagementdocumentshowassetswork
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togethertocreateaservice.Thisinformationisusedtosupportmanyvaluechainactivities,andisupdatedaspartofthetransitionactivity.Obtain/buildConfigurationrecordsmaybecreatedduringthisvaluechainactivity,describingneworchangedservicesandcomponents.Sometimesconfigurationrecordsareusedtocreatethecodeorartefactthatisbeingbuilt.DeliverandsupportInformationonCIsisessentialtosupportservicerestoration.Configurationinformationisusedtosupportactivitiesoftheincidentmanagementandproblemmanagementpractices.
Figure5.30Heatmapofthecontributionofserviceconfigurationmanagementtovaluechainactivities
5.2.12 Servicecontinuitymanagement
KeymessageThepurposeoftheservicecontinuitymanagementpracticeistoensurethattheavailabilityandperformanceofaservicearemaintainedatsufficientlevelsincaseofadisaster.Thepracticeprovidesaframeworkforbuildingorganizationalresiliencewiththecapabilityofproducinganeffectiveresponsethatsafeguardstheinterestsofkeystakeholdersandtheorganization’sreputation,brand,andvalue-creatingactivities.
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Servicecontinuitymanagementsupportsanoverallbusinesscontinuitymanagement(BCM)andplanningcapabilitybyensuringthatITandservicescanberesumedwithinrequiredandagreedbusinesstimescalesfollowingadisasterorcrisis.Itistriggeredwhenaservicedisruptionororganizationalriskoccursonascalethatisgreaterthantheorganization’sabilitytohandleitwithnormalresponseandrecoverypracticessuchasincidentandmajorincidentmanagement.Anorganizationaleventofthismagnitudeistypicallyreferredtoasadisaster.
Eachorganizationneedstounderstandwhatconstitutesadisasterinitsowncontext.Establishingwhatismeantbyadisastermustbeconsideredanddefinedpriortoatriggereventatbothanorganizationalandonaper-servicelevelusingabusinessimpactanalysis.TheBusinessContinuityInstitutedefinesadisasteras:
‘…asuddenunplannedeventthatcausesgreatdamageorseriouslosstoanorganization.Itresultsinanorganizationfailingtoprovidecriticalbusinessfunctionsforsomepredeterminedminimumperiodoftime.’
Thesourcesthattriggeradisasterresponseandrecoveryarevariedandcomplex,asarethenumberofstakeholdersandthedifferentaspectsofpotentialorganizationalimpact.ThecomplexriskmanagementconditionsrelatedtotheexamplesinTable5.3makeitimperativethattheservicecontinuitymanagementpracticebethoroughlythoughtout,designedforflexibility,andtestedonaregularbasistoensurethatservicescanberecoveredataspeednecessaryforbusinesssurvival.
Table5.3Examplesofdisastersources,stakeholdersinvolved,andorganizationalimpact
Disastersources Stakeholdersinvolved OrganizationalimpactSupplychainfailureTerrorismWeatherCyberattackHealthemergencyPoliticaloreconomiceventTechnologyfailurePubliccrisis
EmployeesExecutivesGoverningbodySuppliersITteamsCustomersUsersCommunities
LostincomeDamagedreputationLossofcompetitiveadvantageBreachoflaw,healthandsafetyregulationsRisktopersonalsafetyImmediateandlong-termlossofmarketshare
DefinitionsRecoverytimeobjective(RTO)Themaximumacceptableperiodoftimefollowingaservicedisruptionthatcanelapsebeforethelackofbusinessfunctionalityseverelyimpactstheorganization.Thisrepresentsthe
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maximumagreedtimewithinwhichaproductoranactivitymustberesumed,orresourcesmustberecovered.Recoverypointobjective(RPO)Thepointtowhichinformationusedbyanactivitymustberestoredtoenabletheactivitytooperateonresumption.DisasterrecoveryplansAsetofclearlydefinedplansrelatedtohowanorganizationwillrecoverfromadisasteraswellasreturntoapre-disastercondition,consideringthefourdimensionsofservicemanagement.Businessimpactanalysis(BIA)Akeyactivityinthepracticeofservicecontinuitymanagementthatidentifiesvitalbusinessfunctions(VBFs)andtheirdependencies.Thesedependenciesmayincludesuppliers,people,otherbusinessprocesses,andITservices.BIAdefinestherecoveryrequirementsforITservices.TheserequirementsincludeRTOs,RPOs,andminimumtargetservicelevelsforeachITservice.
Servicecontinuitymanagementversusincidentmanagement
Servicecontinuitymanagementfocusesonthoseeventsthatthebusinessconsiderssignificantenoughtobetreatedasadisaster.Lesssignificanteventswillbedealtwithaspartofincidentmanagementormajorincidentmanagement.Thedistinctionbetweendisasters,majorincidents,andincidentsneedstobepre-defined,agreed,anddocumentedwithclearthresholdsandtriggersforcallingthenexttierofresponseandrecoveryintoactionwithoutunnecessarydelayandrisk.
Asorganizationshavebecomeincreasinglydependentontechnology-enabledservices,theneedforhigh-availabilitysolutionshasbecomecriticaltoorganizationalresilienceandcompetitiveness.Organizationsachievehighavailabilitythroughacombinationofbusinessplanning,technicalarchitectureresilience,availabilityplanning,proactiverisk,andinformationsecuritymanagement,aswellasthroughincidentmanagementandproblemmanagement.
Figure5.31showsthecontributionofservicecontinuitymanagementtotheservicevaluechain,withthepracticebeinginvolvedinallvaluechainactivities:
PlanTheorganization’sleadershipandgoverningbodyestablishaninitialriskappetitefortheorganizationwithdefinedscope,policies,supplierstrategies,andinvestmentinrecoveryoptions.Servicecontinuitymanagementsupportsthiswithrelevantinformationaboutthecurrentcontinuitystatusoftheorganizationandwithtoolsandmethodsforplanningandforecasting.ImproveServicecontinuitymanagementensuresthatcontinuityplans,measures,andmechanismsarecontinuallymonitoredandimprovedinlinewithchanginginternalandexternalcircumstances.
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EngageEngagementwithvariousstakeholderstoprovideassurancewithregardtoanorganization’sreadinessfordisastersissupportedbythispractice.DesignandtransitionServicecontinuitymanagementensuresthatproductsandservicesaredesignedandtestedaccordingtotheorganization’scontinuityrequirements.
Figure5.31Heatmapofthecontributionofservicecontinuitymanagementtovaluechainactivities
Obtain/buildServicecontinuitymanagementensuresthatcontinuityisbuiltintotheorganization’sservicesandcomponents,andthatprocuredcomponentsandservicesmeettheorganization’scontinuityrequirements.DeliverandsupportOngoingdelivery,operations,andsupportareperformedinaccordancewithcontinuityrequirementsandpolicies.
5.2.13 Servicedesign
KeymessageThepurposeoftheservicedesignpracticeistodesignproductsandservicesthatarefitforpurpose,fitforuse,andthatcanbedeliveredbytheorganizationanditsecosystem.Thisincludesplanningandorganizingpeople,
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partnersandsuppliers,information,communication,technology,andpracticesforneworchangedproductsandservices,andtheinteractionbetweentheorganizationanditscustomers.
Ifproducts,services,orpracticesarenotdesignedproperly,theywillnotnecessarilyfulfilcustomerneedsorfacilitatevaluecreation.Iftheyevolvewithoutproperarchitecture,interfacesorcontrols,theyarelessabletodelivertheoverallvisionandneedsoftheorganizationanditsinternalandexternalcustomers.
Evenwhenaproductorserviceiswelldesigned,deliveringasolutionthataddressestheneedsofboththeorganizationandcustomerinacost-effectiveandresilientwaycanbedifficult.Itisthereforeimportanttoconsideriterativeandincrementalapproachestoservicedesign,whichcanensurethatproductsandservicesintroducedtoliveoperationcancontinuallyadaptinalignmentwiththeevolvingneedsoftheorganizationanditscustomers.
Intheabsenceofformalizedservicedesign,productsandservicescanbeundulyexpensivetorunandpronetofailure,resultinginresourcesbeingwastedandtheproductorservicenotbeingcustomer-centredordesignedholistically.Itisunlikelythatanyimprovementprogrammewilleverbeabletoachievewhatproperdesigncouldhaveachievedinthefirstplace.Withoutservicedesign,cost-effectiveproductsandservicesthatdeliverwhatcustomersneedandexpectareextremelyhardtoachieve.
Servicedesignpracticeshouldalsoensurethatthecustomer’sjourneyfromdemandthroughtovaluerealizationisaspleasantandfrictionlessasitcanbe,anddeliversthebestcustomeroutcomepossible.Thisisachievedbyfocusingoncustomerexperience(CX)anduserexperience(UX).
AdoptingandimplementingaservicedesignpracticefocusedonCXandUXwill:
resultincustomer-centredproductsandservicesthatincludestakeholdersindesignactivitiesconsidertheentireenvironmentofaproductorserviceenableprojectstoestimatethecost,timing,resourcerequirement,andrisksassociatedwithservicedesignmoreaccuratelyresultinhighervolumesofsuccessfulchangemakedesignmethodseasierforpeopletoadoptandfollowenableservicedesignassetstobesharedandre-usedacrossprojectsandservicesincreaseconfidencethattheneworchangedproductorservicecanbedeliveredtospecificationwithoutunexpectedlyaffectingotherproducts,services,orstakeholders
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ensurethatneworchangedproductsandserviceswillbemaintainableandcost-effective.
Itisimportantthataholistic,results-drivenapproachtoallaspectsofservicedesignisadopted,andthatwhenchangingoramendinganyoftheindividualelementsofaservicedesign,allotheraspectsareconsidered.Itisforthisreasonthatthecoordinationaspectofservicedesignwiththewholeorganization’sSVSisessential.Designinganddevelopinganeworchangedproductorserviceshouldnotbedoneinisolation,butshouldconsidertheimpactitwillhaveon:
otherproductsandservicesallrelevantparties,includingcustomersandsupplierstheexistingarchitecturestherequiredtechnologytheservicemanagementpracticesthenecessarymeasurementsandmetrics.
Considerationofthesefactorswillnotonlyensurethatthedesignaddressesthefunctionalelementsoftheservice,butalsothatthemanagementandoperationalrequirementsareregardedasafundamentalpartofthedesign,andarenotaddedasanafterthought.
Servicedesignshouldalsobeusedwhenthechangebeingmadetotheproductorserviceisitsretirement.Unlesstheretirementofaproduct/serviceiscarefullyplanned,itcouldcauseunexpectednegativeeffectsoncustomersortheorganizationthatmightotherwisehavebeenavoided.
Noteverychangetoaproductorservicewillrequirethesamelevelofservicedesignactivity.Everychange,nomatterhowsmall,willneedsomedegreeofdesignwork,butthescaleoftheactivitynecessarytoensuresuccesswillvarygreatlyfromonechangetypetoanother.Organizationsmustdefinewhatlevelofdesignactivityisrequiredforeachcategoryofchange,andensurethateveryonewithintheorganizationisclearonthesecriteria.
Servicedesignsupportsproductsandservicesthat:
arebusiness-andcustomer-oriented,focused,anddrivenarecost-effectivemeettheinformationandphysicalsecurityrequirementsoftheorganizationandanyexternalcustomersareflexibleandadaptable,yetfitforpurposeatthepointofdeliverycanabsorbanever-increasingdemandinthevolumeandspeedofchangemeetincreasingorganizationalandcustomerdemandsforcontinuousoperation
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aremanagedandoperatedtoanacceptablelevelofrisk.
Withmanypressuresontheorganization,therecanbeatemptationto‘cutcorners’onthecoordinationofpracticesandrelevantpartiesforservicedesignactivities,ortoignorethemcompletely.Thisshouldbeavoided,asintegrationandcoordinationareessentialtotheoverallqualityoftheproductsandservicesthataredelivered.
5.2.13.1Designthinking
Designthinkingisapracticalandhuman-centredapproachthatacceleratesinnovation.Itisusedbyproductandservicedesignersaswellasorganizationstosolvecomplexproblemsandfindpractical,creativesolutionsthatmeettheneedsoftheorganizationanditscustomers.ItcanbeviewedasacomplementaryapproachtoLeanandAgilemethodologies.Designthinkingdrawsuponlogic,imagination,intuition,andsystemsthinkingtoexplorepossibilitiesandtocreatedesiredoutcomesthatbenefitcustomers.
Designthinkingincludesaseriesofactivities:
Inspirationandempathy,throughdirectobservationofpeopleandhowtheyworkorinteractwithproductsandservices,aswellasidentifyinghowtheymightinteractdifferentlywithothersolutions.Ideation,whichcombinesdivergentandconvergentthinking.Divergentthinkingistheabilitytoofferdifferent,unique,orvariantideas,whileconvergentthinkingistheabilitytofindthepreferredsolutiontoagivenproblem.Divergentthinkingensuresthatmanypossiblesolutionsareexplored,andconvergentthinkingnarrowsthesedowntoafinalpreferredsolution.Prototyping,wheretheseideasaretestedearly,iterated,andrefined.Aprototypehelpstogatherfeedbackandimproveanidea.Prototypesspeeduptheprocessofinnovationbyallowingservicedesignerstobetterunderstandthestrengthsandweaknessesofnewsolutions.Implementation,wheretheconceptsarebroughttolife.Thisshouldbecoordinatedwithallrelevantservicemanagementpracticesandotherparties.Agilemethodologycanbeemployedtodevelopandimplementthesolutioninaniterativeway.Evaluation(inconjunctionwithotherpractices,includingprojectmanagementandreleasemanagement)measurestheactualperformanceofproductorserviceimplementationtoensureacceptancecriteriaaremet,andtofindanyopportunitiesforimprovement.
Designthinkingisbestappliedbymulti-disciplinaryteams;becauseitbalancestheperspectivesofcustomers,technology,theorganization,partners,andsuppliers,itishighlyintegrative,alignswellwiththeorganization’sSVS,andcanbeakeyenablerofdigitaltransformation.
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5.2.13.2Customeranduserexperience
TheCXandUXaspectsofservicedesignareessentialtoensuringproductsandservicesdeliverthedesiredvalueforcustomersandtheorganization.CXdesignisfocusedonmanagingeveryaspectofthecompleteCX,includingtime,quality,cost,reliability,andeffectiveness.UXlooksspecificallyattheeaseofuseoftheproductorserviceandhowthecustomerinteractswithit.
Leanuserexperience
Leanuserexperience(LeanUX)designisamindset,aculture,andaprocessthatembracesLean–Agilemethods.Itimplementsfunctionalityinminimumviableincrements,anddeterminessuccessbymeasuringresultsagainstanoutcomehypothesis.LeanUXisincrediblyusefulwhenworkingonprojectswhereAgiledevelopmentmethodsareused.Thecoreobjectiveistofocusonobtainingfeedbackasearlyaspossiblesothatitcanbeusedtomakequickdecisions.
TypicalquestionsforLeanUXmightinclude:Whoarethecustomersofthisproduct/serviceandwhatwillitbeusedfor?Whenisitusedandunderwhatcircumstances?Whatwillbethemostimportantfunctionality?Whatarethebiggestrisks?
Theremaybemorethanoneanswertoeachquestion,whichcreatesagreaternumberofassumptionsthanitmightbepracticaltohandle.Theteamwillthenprioritizetheseassumptionsbytheriskstheyrepresenttotheorganizationanditscustomers.
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Figure5.32Heatmapofthecontributionofservicedesigntovaluechainactivities
Riskidentification,assessment,andtreatmentarekeyrequirementswithinalldesignactivities;thereforeriskmanagementmustbeincludedasanintegratedaspectofservicedesign.Thiswillensurethattherisksinvolvedintheprovisionofproductsandservicesandtheoperationofpractices,technology,andmeasurementmethodsarealignedwithorganizationalriskandimpact,becauseriskmanagementisembeddedwithinalldesignprocessesandactivities.
Figure5.32showsthecontributionofservicedesigntotheservicevaluechain,withthepracticebeinginvolvedinallvaluechainactivities:
PlanTheservicedesignpracticeincludesplanningandorganizingthepeople,partnersandsuppliers,information,communication,technology,andpracticesforneworchangedproductsandservices,andtheinteractionbetweentheorganizationanditscustomers.ImproveServicedesigncanbeusedtoimproveanexistingserviceaswellastocreateanewservicefromscratch.Servicescanbedesignedasaminimumviableservice,deployed,andtheniteratedandimprovedtoaddfurthervaluebasedonfeedback.EngageServicedesignincorporatesCXandUX,whicharequintessentialexamplesofengagement.DesignandtransitionThepurposeofservicedesignistodesignproductsandservicesthatareeasytouse,desirable,andthatcanbedeliveredbytheorganization.Obtain/buildServicedesignincludestheidentificationofproducts,services,andservicecomponentsthatneedtobeobtainedorbuiltfortheneworchangedservice.
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5.2.14 Servicedesk
KeymessageThepurposeoftheservicedeskpracticeistocapturedemandforincidentresolutionandservicerequests.Itshouldalsobetheentrypointandsinglepointofcontactfortheserviceproviderwithallofitsusers.
Servicedesksprovideaclearpathforuserstoreportissues,queries,andrequests,andhavethemacknowledged,classified,owned,andactioned.Howthispracticeismanagedanddeliveredmayvaryfromaphysicalteamofpeopleonshiftworktoadistributedmixofpeopleconnectedvirtually,orautomatedtechnologyandbots.Thefunctionandvalueremainthesame,regardlessofthemodel.
Withincreasedautomationandthegradualremovaloftechnicaldebt,thefocusoftheservicedeskistoprovidesupportfor‘peopleandbusiness’ratherthansimplytechnicalissues.Servicedesksareincreasinglybeingusedtogetvariousmattersarranged,explained,andcoordinated,ratherthanjusttogetbrokentechnologyfixed,andtheservicedeskhasbecomeavitalpartofanyserviceoperation.
Akeypointtobeunderstoodisthat,nomatterhowefficienttheservicedeskanditspeopleare,therewillalwaysbeissuesthatneedescalationandunderpinningsupportfromotherteams.Supportanddevelopmentteamsneedtoworkinclosecollaborationwiththeservicedesktopresentanddelivera‘joinedup’approachtousersandcustomers.
Theservicedeskmaynotneedtobehighlytechnical,althoughsomeare.However,eveniftheservicedeskisfairlysimple,itstillplaysavitalroleinthedeliveryofservices,andmustbeactivelysupportedbyitspeergroups.Itisalsoessentialtounderstandthattheservicedeskhasamajorinfluenceonuserexperienceandhowtheserviceproviderisperceivedbytheusers.
Anotherkeyaspectofagoodservicedeskisitspracticalunderstandingofthewiderbusinesscontext,thebusinessprocesses,andtheusers.Servicedesksaddvaluenotsimplythroughthetransactionalactsof,forexample,incidentlogging,butalsobyunderstandingandactingonthebusinesscontextofthisaction.Theservicedesk
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shouldbetheempatheticandinformedlinkbetweentheserviceprovideranditsusers.
Withincreasedautomation,AI,roboticprocessautomation(RPA),andchatbots,servicedesksaremovingtoprovidemoreself-serviceloggingandresolutiondirectlyviaonlineportalsandmobileapplications.Theimpactonservicedesksisreducedphonecontact,lesslow-levelwork,andagreaterabilitytofocusonexcellentCXwhenpersonalcontactisneeded.
Servicedesksprovideavarietyofchannelsforaccess.Theseinclude:
phonecalls,whichcanincludespecializedtechnology,suchasinteractivevoiceresponse(IVR),conferencecalls,voicerecognition,andothersserviceportalsandmobileapplications,supportedbyserviceandrequestcatalogues,andknowledgebaseschat,throughlivechatandchatbotsemailforloggingandupdating,andforfollow-upsurveysandconfirmations.Unstructuredemailscanbedifficulttoprocess,butemergingtechnologiesbasedonAIandmachinelearningarestartingtoaddressthiswalk-inservicedesksarebecomingmoreprevalentinsomesectors,e.g.highereducation,wheretherearehighpeaksofactivitythatdemandphysicalpresencetextandsocialmediamessaging,whichareusefulfornotificationsincaseofmajorincidentsandforcontactingspecificstakeholdergroups,butcanalsobeusedtoallowuserstorequestsupportpublicandcorporatesocialmediaanddiscussionforumsforcontactingtheserviceproviderandforpeer-to-peersupport.
Someservicedeskshavealimitedsupportwindowwhereservicecoverisavailable(forexample,08.00–20.00,Monday–Friday).Staffarethereforeexpectedtoworkinshiftpatternstoprovideconsistentsupportlevels.
Insomecases,theservicedeskisatangibleteam,workinginasinglelocation.Acentralizedservicedeskrequiressupportingtechnologies,suchas:
intelligenttelephonysystems,incorporatingcomputer-telephonyintegration,IVR,andautomaticcalldistributionworkflowsystemsforroutingandescalationworkforcemanagementandresourceplanningsystemsaknowledgebasecallrecordingandqualitycontrolremoteaccesstoolsdashboardandmonitoringtoolsconfigurationmanagementsystems.
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Inothercases,avirtualservicedeskallowsagentstoworkfrommultiplelocations,geographicallydispersed.Avirtualservicedeskrequiresmoresophisticatedsupportingtechnology,involvingmorecomplexroutingandescalation;thesesolutionsareoftencloud-based.
Figure5.33Heatmapofthecontributionoftheservicedesktovaluechainactivities
Servicedeskstaffrequiretrainingandcompetencyacrossanumberofbroadtechnicalandbusinessareas.Inparticular,theyneedtodemonstrateexcellentcustomerserviceskillssuchasempathy,incidentanalysisandprioritization,effectivecommunication,andemotionalintelligence.Thekeyskillistobeabletofullyunderstandanddiagnoseaspecificincidentintermsofbusinesspriority,andtotakeappropriateactiontogetthisresolved,usingavailableskills,knowledge,people,andprocesses.
Figure5.33showsthecontributionoftheservicedesktotheservicevaluechain,withthepracticebeinginvolvedinallvaluechainactivitiesexceptplan:
ImproveServicedeskactivitiesareconstantlymonitoredandevaluatedtosupportcontinualimprovement,alignment,andvaluecreation.Feedbackfromusersiscollectedbytheservicedesktosupportcontinualimprovement.EngageTheservicedeskisthemainchannelfortacticalandoperationalengagementwithusers.DesignandtransitionTheservicedeskprovidesachannelforcommunicatingwithusersaboutnewandchangedservices.Servicedeskstaffparticipateinreleaseplanning,testing,andearlylifesupport.Obtain/buildServicedeskstaffcanbeinvolvedinacquiringservicecomponentsusedtofulfilservicerequestsandresolveincidents.
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DeliverandsupportTheservicedeskisthecoordinationpointformanagingincidentsandservicerequests.
5.2.15 Servicelevelmanagement
KeymessageThepurposeoftheservicelevelmanagementpracticeistosetclearbusiness-basedtargetsforservicelevels,andtoensurethatdeliveryofservicesisproperlyassessed,monitored,andmanagedagainstthesetargets.
Definition:ServicelevelOneormoremetricsthatdefineexpectedorachievedservicequality.
Servicelevelmanagementprovidestheend-to-endvisibilityoftheorganization’sservices.Toachievethis,servicelevelmanagement:
establishesasharedviewoftheservicesandtargetservicelevelswithcustomersensurestheorganizationmeetsthedefinedservicelevelsthroughthecollection,analysis,storage,andreportingoftherelevantmetricsfortheidentifiedservicesperformsservicereviewstoensurethatthecurrentsetofservicescontinuestomeettheneedsoftheorganizationanditscustomerscapturesandreportsonserviceissues,includingperformanceagainstdefinedservicelevels.
Theskillsandcompetenciesforservicelevelmanagementincluderelationshipmanagement,businessliaison,businessanalysis,andcommercial/suppliermanagement.Thepracticerequirespragmaticfocusonthewholeserviceandnotsimplyitsconstituentparts;forexample,simpleindividualmetrics(suchaspercentagesystemavailability)shouldnotbetakentorepresentthewholeservice.
5.2.15.1Servicelevelagreements
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Definition:ServicelevelagreementAdocumentedagreementbetweenaserviceproviderandacustomerthatidentifiesbothservicesrequiredandtheexpectedlevelofservice.
Servicelevelagreements(SLAs)havelongbeenusedasatooltomeasuretheperformanceofservicesfromthecustomer’spointofview,anditisimportantthattheyareagreedinthewiderbusinesscontext.UsingSLAsmaypresentmanychallenges;oftentheydonotfullyreflectthewiderserviceperformanceandtheuserexperience.
SomeofthekeyrequirementsforsuccessfulSLAsinclude:
Theymustberelatedtoadefined‘service’intheservicecatalogue;otherwisetheyaresimplyindividualmetricswithoutapurpose,thatdonotprovideadequatevisibilityorreflecttheserviceperspective.Theyshouldrelatetodefinedoutcomesandnotsimplyoperationalmetrics.Thiscanbeachievedwithbalancedbundlesofmetrics,suchascustomersatisfactionandkeybusinessoutcomes.Theyshouldreflectan‘agreement’,i.e.engagementanddiscussionbetweentheserviceproviderandtheserviceconsumer.Itisimportanttoinvolveallstakeholders,includingpartners,sponsors,users,andcustomers.Theymustbesimplywrittenandeasytounderstandanduseforallparties.
Inmanycases,usingsingle-system-basedmetricsastargetscanresultinmisalignmentandadisconnectbetweenservicepartnersregardingthesuccessoftheservicedeliveryandtheuserexperience.Forexample,ifanSLAisbasedonlyonthepercentageofuptimeofaservice,itcanbedeemedtobesuccessfulbytheprovider,yetstillmissoutonsignificantbusinessfunctionalitiesandoutcomeswhichareimportanttotheconsumer.Thisisreferredtoasthe‘watermelonSLA’effect.
ThewatermelonSLAeffect
TraditionalSLAshavebeenbasedonindividualactivitiessuchasincidentresolutiontimes,systemavailability(‘99.9’),andvolumemetrics(e.g.numberofincidentsorrequestshandled).Withoutabusinesscontextthesemetrics
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areoftenmeaningless.Forexample,althoughasystemavailabilityof99.6%isimpressive,thisstillneedstoalignwithkeybusinessrequirements.Thesystemmayhaveanacceptableunavailabilityof0.4%,butifthattimefallswhenthereisanimportantprocesshappening(suchasacommercialtransaction,anoperatingtheatreinuse,orpoint-of-saletillsinuse),thencustomer/usersatisfactionwillbelow,regardlessofwhethertheSLAhasbeenmet.
Thiscanbeproblematicfortheserviceproviderifitthinksitisdoingagreatjob(thereportsareallgreen),wheninfactitscustomersaredissatisfiedwiththeservicereceivedandalsofrustratedthattheproviderdoesn’tnoticethis.ThisisknownasthewatermelonSLAeffect,becauselikeawatermelon,theSLAmayappeargreenontheoutside,butisactuallyredinside.
Servicelevelmanagementidentifiesmetricsandmeasuresthatareatruthfulreflectionofthecustomer’sactualexperienceandlevelofsatisfactionwiththewholeservice.Thesewillvaryacrossorganizationsandtheonlywaytolearnwhattheseareistofindoutdirectlyfromcustomers.
Servicelevelmanagementrequiresfocusandefforttoengageandlistentotherequirements,issues,concerns,anddailyneedsofcustomers:
Engagementisneededtounderstandandconfirmtheactualongoingneedsandrequirementsofcustomers,notsimplywhatisinterpretedbytheserviceproviderorhasbeenagreedseveralyearsbefore.Listeningisimportantasarelationship-buildingandtrust-buildingactivity,toshowcustomersthattheyarevaluedandunderstood.Thishelpstomovetheproviderawayfromalwaysbeingin‘solutionmode’andtobuildnew,moreconstructivepartnerships.
Theactivitiesofengagingandlisteningprovideagreatopportunitytobuildimprovedrelationshipsandtofocusonwhatreallyneedstobedelivered.Italsogivesservicedeliverystaffanexperience-basedunderstandingoftheday-to-dayworkthatisdonewiththeirtechnology,enablingthemtodeliveramorebusiness-focusedservice.
Servicelevelmanagementinvolvescollatingandanalysinginformationfromanumberofsources,including:
CustomerengagementThisinvolvesinitiallistening,discovery,andinformationcaptureonwhichtobasemetrics,measurement,andongoingprogressdiscussions.Consideraskingcustomerssomesimpleopenquestionssuchas:
Whatdoesyourworkinvolve?Howdoestechnologyhelpyou?Whatareyourkeybusinesstimes,areas,people,andactivities?
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Whatdifferentiatesagooddayfromabaddayforyou?Whichoftheseactivitiesismostimportanttoyou?Whatareyourgoals,objectives,andmeasurementsforthisyear?Whatisthebestmeasureofyoursuccess?OnwhatdoyoubaseyouropinionandevaluationofaserviceorIT/technology?Howcanwehelpyoumore?
CustomerfeedbackThisisideallygatheredfromanumberofsources,bothformalandinformal,including:
SurveysThesecanbefromimmediatefeedbacksuchasfollow-upquestionstoincidents,orfrommorereflectiveperiodicsurveysthatgaugefeedbackontheoverallserviceexperience.Bothareevent-based.Keybusiness-relatedmeasuresThesearemeasuresagreedbetweentheserviceprovideranditscustomer,basedonwhatthecustomervaluesasimportant.ThiscouldbeabundleofSLAmetricsoraveryspecificbusinessactivitysuchasasalestransaction,projectcompletion,oroperationalfunctionsuchasgettinganambulancetothesiteofanaccidentwithinxminutes.
OperationalmetricsThesearethelow-levelindicatorsofvariousoperationalactivitiesandmayincludesystemavailability,incidentresponseandfixtimes,changeandrequestprocessingtimes,andsystemresponsetimes.BusinessmetricsThesecanbeanybusinessactivitythatisdeemedusefulorvaluablebythecustomerandusedasameansofgaugingthesuccessoftheservice.ThesecanvaryfromsomesimpletransactionalbinarymeasuressuchasATMorPOSterminalavailabilityduringbusinesshours(09:00–17:00daily)orsuccessfulcompletionofbusinessactivitiessuchaspassengercheck-in.
Oncethisfeedbackisgatheredandcollatedforongoingreview,itcanbeusedasinputtodesignsuitablemeasurementandreportingmodelsandpractices.
Figure5.34showsthecontributionofservicelevelmanagementtotheservicevaluechain,withthepracticebeingappliedmainlytotheplanandengageactivities:
PlanServicelevelmanagementsupportsplanningoftheproductandserviceportfolioandserviceofferingswithinformationabouttheactualserviceperformanceandtrends.ImproveServicefeedbackfromusers,aswellasrequirementsfromcustomers,canbeadrivingforceforserviceimprovement.EngageServicelevelmanagementensuresongoingengagementwithcustomersandusersthroughfeedbackprocessingandcontinualservicereview.DesignandtransitionThedesignanddevelopmentofnewandchangedservicesreceivesinputfromthispractice,boththroughinteractionwithcustomersandas
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partofthefeedbackloopintransition.Obtain/buildServicelevelmanagementprovidesobjectivesforcomponentsandserviceperformance,aswellasformeasurementandreportingcapabilitiesoftheproductsandservices.DeliverandsupportServicelevelmanagementcommunicatesserviceperformanceobjectivestotheoperationsandsupportteamsandcollectstheirfeedbackasaninputforserviceimprovement.
Figure5.34Heatmapofthecontributionofservicelevelmanagementtovaluechainactivities
TheITILstory:Axle’sservicelevelmanagement
Su:Weregularlygatherfeedbackfromourcustomerstoanalysetheirrequirementsandneeds,andupdateourserviceofferingstomatchtheirexpectations.
Radhika:Wecan’tputeverysinglecustomerexpectationintoourrentalagreements,butwecareaboutallofthemanddoourbesttomeetthem.
Su:Wealsomonitorthequalityoftheservicesprovidedbyourpartnersandsuppliers,suchastheworkdoneforusbyCraig’sCleaning.Whendoingthis,weneedtobesurethatthequalityofeverypartofourservicesmeetsorexceedstheexpectationsofourusers.
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5.2.16 Servicerequestmanagement
KeymessageThepurposeoftheservicerequestmanagementpracticeistosupporttheagreedqualityofaservicebyhandlingallpre-defined,user-initiatedservicerequestsinaneffectiveanduser-friendlymanner.
Definition:ServicerequestArequestfromauserorauser’sauthorizedrepresentativethatinitiatesaserviceactionwhichhasbeenagreedasanormalpartofservicedelivery.
Eachservicerequestmayincludeoneormoreofthefollowing:
arequestforaservicedeliveryaction(forexample,providingareportorreplacingatonercartridge)arequestforinformation(forexample,howtocreateadocumentorwhatthehoursoftheofficeare)arequestforprovisionofaresourceorservice(forexample,providingaphoneorlaptoptoauser,orprovidingavirtualserverforadevelopmentteam)arequestforaccesstoaresourceorservice(forexample,providingaccesstoafileorfolder)feedback,compliments,andcomplaints(forexample,complaintsaboutanewinterfaceorcomplimentstoasupportteam).
Fulfilmentofservicerequestsmayincludechangestoservicesortheircomponents;usuallythesearestandardchanges.Servicerequestsareanormalpartofservicedeliveryandarenotafailureordegradationofservice,whicharehandledasincidents.Sinceservicerequestsarepre-definedandpre-agreedasanormalpartofservicedelivery,theycanusuallybeformalized,withaclear,standardprocedureforinitiation,approval,fulfilment,andmanagement.Someservicerequestshaveverysimpleworkflows,suchasarequestforinformation.Others,suchasthesetupofa
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newemployee,maybequitecomplexandrequirecontributionsfrommanyteamsandsystemsforfulfilment.Regardlessofthecomplexity,thestepstofulfiltherequestshouldbewell-knownandproven.Thisallowstheserviceprovidertoagreetimesforfulfilmentandtoprovideclearcommunicationofthestatusoftherequesttousers.
Someservicerequestsrequireauthorizationaccordingtofinancial,informationsecurity,orotherpolicies,whileothersmaynotneedany.Tobehandledsuccessfully,servicerequestmanagementshouldfollowtheseguidelines:
Servicerequestsandtheirfulfilmentshouldbestandardizedandautomatedtothegreatestdegreepossible.Policiesshouldbeestablishedregardingwhatservicerequestswillbefulfilledwithlimitedorevennoadditionalapprovalssothatfulfilmentcanbestreamlined.Theexpectationsofusersregardingfulfilmenttimesshouldbeclearlyset,basedonwhattheorganizationcanrealisticallydeliver.
Figure5.35Heatmapofthecontributionofservicerequestmanagementtovaluechainactivities
Opportunitiesforimprovementshouldbeidentifiedandimplementedtoproducefasterfulfilmenttimesandtakeadvantageofautomation.Policiesandworkflowsshouldbeincludedforthedocumentingandredirectingofanyrequeststhataresubmittedasservicerequests,butwhichshouldactuallybemanagedasincidentsorchanges.
Someservicerequestscanbecompletelyfulfilledbyautomationfromsubmissionto
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closure,allowingforacompleteself-serviceexperience.Examplesincludeclientsoftwareinstallationorprovisionofvirtualservers.
Servicerequestmanagementisdependentuponwell-designedprocessesandprocedures,whichareoperationalizedthroughtrackingandautomationtoolstomaximizetheefficiencyofthepractice.Differenttypesofservicerequestwillhavedifferentfulfilmentworkflows,butbothefficiencyandmaintainabilitywillbeimprovedifalimitednumberofworkflowmodelsareidentified.Whennewservicerequestsneedtobeaddedtotheservicecatalogue,existingworkflowmodelsshouldbeleveragedwheneverpossible.
Figure5.35showsthecontributionofservicerequestmanagementtotheservicevaluechain,withthepracticebeinginvolvedinallservicevaluechainactivitiesexcepttheplanactivity:
ImproveServicerequestmanagementcanprovideachannelforimprovementinitiatives,compliments,andcomplaintsfromusers.Italsocontributestoimprovementbyprovidingtrend,quality,andfeedbackinformationaboutfulfilmentofrequests.EngageServicerequestmanagementincludesregularcommunicationtocollectuser-specificrequirements,setexpectations,andtoprovidestatusupdates.DesignandtransitionStandardservicecomponentsmaybetransitionedtotheliveenvironmentthroughservicerequestfulfilment.Obtain/buildAcquisitionofpre-approvedservicecomponentsmaybefulfilledthroughservicerequests.DeliverandsupportServicerequestmanagementmakesasignificantcontributiontonormalservicedelivery.Thisactivityofthevaluechainismostlyconcernedwithensuringuserscontinuetobeproductive,andsometimesdependsheavilyonfulfilmentoftheirrequests.
5.2.17 Servicevalidationandtesting
Keymessage
Thepurposeoftheservicevalidationandtestingpracticeistoensurethatneworchangedproductsandservicesmeetdefinedrequirements.Thedefinitionofservicevalueisbasedoninputfromcustomers,businessobjectives,andregulatoryrequirements,andisdocumentedaspartofthevaluechainactivityofdesignandtransition.Theseinputsareusedtoestablishmeasurablequality
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andperformanceindicatorsthatsupportthedefinitionofassurancecriteriaandtestingrequirements.
5.2.17.1Servicevalidation
Servicevalidationfocusesonestablishingdeploymentandreleasemanagementacceptancecriteria(conditionsthatmustbemetforproductionreadiness),whichareverifiedthroughtesting.Acceptancecriteriacanbeeitherutility-orwarranty-focused,andaredefinedthroughunderstandingcustomer,regulatory,business,riskmanagement,andsecurityrequirements.
Theservicevalidationactivitiesofthispracticeestablish,verify,anddocumentbothutility-andwarranty-focusedserviceassurancecriteriaandformthebasisforthescopeandfocusoftestingactivities.
5.2.17.2Testing
Ateststrategydefinesanoverallapproachtotesting.Itcanapplytoanenvironment,aplatform,asetofservices,oranindividualservice.Testingshouldbecarriedoutequallyonbothin-housedevelopedsystemsandexternallydevelopedsolutions.Theteststrategyisbasedontheserviceacceptancecriteria,andshouldalignwiththerequirementsofappropriatestakeholderstoensuretestingmatchestheriskappetiteandisfitforpurpose.
Typicaltesttypesinclude:
Utility/functionaltests:UnittestAtestofasinglesystemcomponentSystemtestOveralltestingofthesystem,includingsoftwareandplatformsIntegrationtestTestingagroupofdependentsoftwaremodulestogether
RegressiontestTestingwhetherpreviouslyworkingfunctionswereimpacted.Warranty/non-functionaltests:
PerformanceandcapacitytestCheckingspeedandcapacityunderloadSecuritytestTestingvulnerability,policycompliance,penetration,anddenialofserviceriskCompliancetestCheckingthatlegalandregulatoryrequirementshavebeenmetOperationaltestTestingforbackup,eventmonitoring,failover,recovery,andreportingWarrantyrequirementstestCheckingforverificationofnecessarydocumentation,training,supportmodeldefinition,andknowledgetransfer
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UseracceptancetestThetestperformedbyusersofaneworchangedsystemtoapprovearelease.
Figure5.36showsthecontributionofservicevalidationandtestingtotheservicevaluechain,withthepracticebeinginvolvedinallvaluechainactivitiesexcepttheplanactivity:
ImproveMetricsofservicevalidationandtesting,suchasescapeddefects,testcoverage,andserviceperformanceagainstSLAsarecriticalsuccessmeasuresrequiredtoimproveCXandlowerrisk.EngageInvolvementofsomestakeholdersinservicevalidationandtestingactivitieshelpstoengagethemandimprovesvisibilityandadoptionoftheservices.DesignandtransitionServicedesign,knowledgemanagement,performancemanagement,deploymentmanagement,andreleasemanagementarealltightlyintegratedwiththeservicevalidationandtestingpractice.Obtain/buildServicevalidationandtestingactivitiesarecloselylinkedtoallpracticesrelatedtoobtainingservicesfromexternalserviceproviders,aswellastoprojectmanagementandsoftwaredevelopmentactivitiesinbothwaterfallandAgilemethods.DeliverandsupportKnownerrorsarecapturedbyservicevalidationandtestingandsharedwiththeservicedeskandincidentmanagementpracticestoenablefasterservicerestorationtimeframes.Likewise,informationregardingservicedisruptionorescapeddefectsarefedbackintoservicevalidationandtestingtoincreasetheeffectivenessandcoverageofacceptancecriteriaandtestingactivities.
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Figure5.36Heatmapofthecontributionofservicevalidationandtestingtovaluechainactivities
5.3Technicalmanagementpractices
5.3.1 Deploymentmanagement
KeymessageThepurposeofthedeploymentmanagementpracticeistomoveneworchangedhardware,software,documentation,processes,oranyothercomponenttoliveenvironments.Itmayalsobeinvolvedindeployingcomponentstootherenvironmentsfortestingorstaging.
Deploymentmanagementworkscloselywithreleasemanagementandchangecontrol,butisaseparatepractice.Insomeorganizationstheterm‘provisioning’isusedtodescribethedeploymentofinfrastructure,anddeploymentisonlyusedtomeansoftwaredeployment,butinthiscasethetermdeploymentisusedtomeanboth.
Thereareanumberofdistinctapproachesthatcanbeusedfordeployment.Manyorganizationsuseacombinationoftheseapproaches,dependingontheirspecificservicesandrequirementsaswellasthereleasesizes,types,andimpact.
PhaseddeploymentTheneworchangedcomponentsaredeployedtojustpartoftheproductionenvironmentatatime,forexampletousersinoneoffice,oronecountry.Thisoperationisrepeatedasmanytimesasneededuntilthedeploymentiscomplete.ContinuousdeliveryComponentsareintegrated,tested,anddeployedwhentheyareneeded,providingfrequentopportunitiesforcustomerfeedbackloops.BigbangdeploymentNeworchangedcomponentsaredeployedtoalltargetsatthesametime.Thisapproachissometimesneededwhendependenciespreventthesimultaneoususeofboththeoldandnewcomponents.Forexample,therecouldbeadatabaseschemachangethatisnotcompatiblewithpreviousversionsofsomecomponents.PulldeploymentNeworchangedsoftwareismadeavailableinacontrolledrepository,andusersdownloadthesoftwaretoclientdeviceswhentheychoose.
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Thisallowsuserstocontrolthetimingofupdates,andcanbeintegratedwithservicerequestmanagementtoenableuserstorequestsoftwareonlywhenitisneeded.
Componentsthatareavailablefordeploymentshouldbemaintainedinoneormoresecurelocationstoensurethattheyarenotmodifiedbeforedeployment.Theselocationsarecollectivelyreferredtoasadefinitivemedialibraryforsoftwareanddocumentation,andadefinitivehardwarestoreforhardwarecomponents.
Toolsthatsupportdeploymentaremanyandvaried.Theyareoftenintegratedwithconfigurationmanagementtools,andcanprovidesupportforauditandchangemanagement.Mostorganizationshavetoolsfordeployingclientsoftware,andthesemaybeintegratedwithaserviceportaltosupportarequestmanagementpractice.
Communicationarounddeploymentsispartofreleasemanagement.Individualdeploymentsarenotgenerallyofinteresttousersandcustomersuntiltheyarereleased.
Ifinfrastructureisprovidedasaservice,thendeploymentofneworchangedservers,storage,ornetworkingistypicallymanagedbytheorganization,oftentreatingtheinfrastructureasacode,sothattheorganizationcanautomatedeployment.Intheseenvironmentsitispossiblethatsomedeploymentsmaybeunderthecontrolofthesupplier,suchastheinstallationoffirmwareupdates,oriftheyprovidetheoperatingsystemaswellastheinfrastructuretheymaydeployoperatingsystempatches.TheITorganizationmustensurethattheyknowwhatdeploymentsareplanned,andwhichhavehappened,tomaintainacontrolledenvironment.
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Figure5.37Heatmapofthecontributionofdeploymentmanagementtovaluechainactivities
Ifapplicationdevelopmentisprovidedasaservice,thendeploymentmaybecarriedoutbytheexternalapplicationdeveloper,bythein-houseITdepartment,orbyaserviceintegrator.Again,itisessentialthattheorganizationisawareofalldeploymentssothatacontrolledenvironmentcanbemaintained.
Inanenvironmentwithmultiplesuppliersitisimportanttounderstandthescopeandboundariesofeachorganization’sdeploymentactivities,andhowthesewillinteract.Mostorganizationshaveaprocessfordeployment,andthisisoftensupportedwithstandardtoolsanddetailedprocedurestoensurethatsoftwareisdeployedinaconsistentway.Itiscommontohavedifferentprocessesfordifferentenvironments.Forexample,theremaybeoneprocessforthedeploymentofclientapplicationsoftware,andacompletelydifferentprocessforthedeploymentofserveroperatingsystempatches.
Figure5.37showsthecontributionofdeploymentmanagementtotheservicevaluechain,withthepracticebeingappliedmainlytothedesignandtransition,andobtain/buildvaluechainactivities,butalsototheimproveactivity:
ImproveSomeimprovementsmayrequirecomponentstobedeployedbeforetheycanbedelivered,andtheseshouldbeplannedandmanagedinthesamewayasanyotherdeployment.DesignandtransitionDeploymentmanagementmovesnewandchangedcomponentstoliveenvironments,soitisavitalelementofthisvaluechainactivity.Obtain/buildChangescanbedeployedincrementallyaspartofthisvaluechainactivity.ThisisespeciallycommoninDevOpsenvironmentsusingacompleteautomatedtoolchainforcontinuousintegration,delivery,anddeployment.
TheITILstory:Axle’sdeploymentmanagement
Marco:Beforewedeploychangestoourbookingapp,wereleasethechangestoatestenvironment.Afterthoroughtesting,wemakethechangesavailabletoourusersandcustomers.
Radhika:Werecentlyrealizedthatthesamelogiccanbeappliedtosomeofournon-digitalservicesandcomponents.Forexample,lastmonthweintroducedtwobrandnewhybridmodelsforhireinsomebiggercities.Wecreatedapromotionalserviceofferingforthenewcars,updatedourmarketingmaterials,trainedourtechnicianstoworkwiththenewmodels,anddeployedeverythinginadvance–includingthevehicles.Thishappenedbeforetheofficiallaunchofthehybridcarsbythemanufacturer.Andofcourse,ithappenedwiththeirpermission.
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Su:Bythetimethelaunchdatearrived,wewerereadytogo.Wemadethecarsavailabletohirethatveryday.
Henri:Partneringwithourmanufacturermeantwehadasuccessfulandwell-preparedlaunchthatcreatedabuzzwithourcustomersandwiththeirs.
5.3.2 Infrastructureandplatformmanagement
Keymessage
Thepurposeoftheinfrastructureandplatformmanagementpracticeistooverseetheinfrastructureandplatformsusedbyanorganization.Whencarriedoutproperly,thispracticeenablesthemonitoringoftechnologysolutionsavailabletotheorganization,includingthetechnologyofexternalserviceproviders.
ITinfrastructureisthephysicaland/orvirtualtechnologyresources,suchasservers,storage,networks,clienthardware,middleware,andoperatingsystemssoftware,thatprovidetheenvironmentsneededtodeliverITservices.ThisincludesanyCIacustomerusestoaccesstheserviceorconsumeaproduct.ITinfrastructuremaybemanagedbytheserviceproviderorbyanexternalsupplierasdedicated,shared,orcloudservices.InfrastructureandplatformmanagementmayalsoincludethebuildingsandfacilitiesanorganizationusestorunitsITinfrastructure.
Theinfrastructureandplatformmanagementpracticeincludestheprovisionoftechnologyneededtosupportactivitiesthatcreatevaluefortheorganizationanditsstakeholders.Thiscanincludebeingreadytoadoptnewtechnologiessuchasmachinelearning,chatbots,artificialintelligence,mobiledevicemanagement,andenterprisemobilitymanagement.
Itisimportanttoconsiderthateverysingleorganizationmustdevelopitsownstrategytoachievetheintendedoutcomewithanytypeofinfrastructureorplatform.Eachorganizationshoulddesignitsowncloudmanagementsystemtoorchestratealltheinterrelatedcomponentsofinfrastructureandplatformwithitsbusinessgoalsandtheintendedservicequalityandoperationalefficiency.
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Figure5.38Heatmapofthecontributionofinfrastructureandplatformmanagementtovaluechainactivities
Figure5.38showsthecontributionofinfrastructureandplatformmanagementtotheservicevaluechain,withthepracticebeinginvolvedinallvaluechainactivitiesexcepttheengageactivity:
PlanInfrastructureandplatformmanagementprovidesinformationabouttechnologyopportunitiesandconstraintsthatisusedfortheorganization’sstrategicandtacticalplanning.ImproveInformationabouttechnologyopportunitiesthatcansupportcontinualimprovement,andanyconstraintsofthetechnologiesinuse,isprovidedbythispractice.DesignandtransitionProductandservicedesignbenefitsfromtheinformationprovidedabouttechnologyopportunitiesandconstraints.Obtain/buildInfrastructureandplatformmanagementisacriticalcontributortothisactivityasitprovidesnecessaryinformationaboutthecomponentstobeobtained.DeliverandsupportAttheoperationallevel,infrastructureandplatformmanagementsupportsongoingmaintenanceoftheservicesandtheinfrastructure,includinganyexecutionsofpatchmanagement,backups,etc.
Cloudservicemodels
Cloudservicemodelsinclude:
Softwareasaservice(SaaS)Theconsumercanusetheapplicationsrunning
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inthecloudinfrastructurewithouthavingtocontrolorevenmanagetheunderlyingcloudinfrastructure.Platformasaservice(PaaS)Theconsumercandeployontothecloudacquiredapplicationscreatedusingprogramminglanguages,services,libraries,and/ortoolssupportedbythesupplierwithouthavingtocontrolorevenmanagetheunderlyingcloudinfrastructure.Theyhavecontroloverthedeployedapplicationsandsometimestheconfigurationsettingsfortheapplicationandhostingenvironment.Infrastructureasaservice(IaaS)Theconsumercangetprocessing,storage,and/oranyothercomputingresourceswithouthavingtocontroltheunderlyinginfrastructure.
Cloudservicedeploymentmodels
Everyservicemodelcanbedeployedinseveralways,eitherindependentlyorusingamixofthefollowing:
PrivatecloudThistypeofcloudmaybelocatedwithintheorganization’spremisesoroutsideofit.Itisacloudinfrastructureorplatformtobeusedexclusivelybyaspecificorganizationwhich,atthesametime,canhaveoneorseveralconsumers.Thiscloudisnormallymanagedandownedbyanorganization,aprovider,oracombinationofboth.PubliccloudThistypeofcloudislocatedonthecloudproviderpremises.Itisprovisionedforopenuseandmaybeowned,managed,andoperatedbyanytypeoforganizationinterestedinusingit.CommunitycloudAcommunitycloudmaybeowned,managed,andoperatedbyoneormoreofthestakeholdersinthecommunity,anditmayexistonorofftheorganization’spremises.Thisclouddeploymentmodelconsistsofseveralcloudservicesthataremeanttosupportandshareacollectionofcloudservicecustomerswiththesamerequirementsandwhohavearelationshipwithoneanother.HybridcloudThiscloudinfrastructureisacompositionoftwoormoredistinctcloudinfrastructures(private,community,orpublic)thatremainuniqueentities,butareboundtogetherbystandardizedorproprietarytechnologythatenablesdataandapplicationportability.
ITILpracticesandcloudcomputing
TheadventofthecloudhasbeenoneofthegreatestchallengesandopportunitieswithintheITworldfordecades.Thepromiseofrapid,elastic
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storageandITservicesavailableatthetouchofabuttonisonethatmanyorganizationsstruggletodeliverinternally,notbecausethebenefitsarenottheretobehad,butratherbecausetheirownITSMprocessesandcontrolshavenotbeenadaptedtosupportaradicallydifferentwayofworking.
ThemanagementandcontrolofITservicesisakeyskillofITdepartmentsnomatterwherethoseservicesarephysicallylocated,andtheprocessesandcontrolsofferedbyITILarereadilyadaptabletosupportthemanagementofthosecloudservices.
Acoordinatedresponsetothemanagementofcloudservicesisessential.Organizationsthatattempttoaddressonlyacloudserviceprovisionasanoperationalissuewillsufferonthetacticalfront,justasanorganizationthatattemptstocontrolcloudservicesonatacticalfrontwillsufferatthestrategiclevel.Ajoined-upapproachcoveringallthreelevels,strategic,tactical,andoperational,isrequired.
Apartfromtheinfrastructureandplatformmanagementpractice,theoperationandmanagementofcloud-basedservicesinvolvesmanyotherpractices.Itshouldbenotedthatthisisnotacomprehensivelist:
ServicefinancialmanagementOneoftheadjustmentsthatITdepartmentsoftenhavetomakeforcloudcomputingistotheirfiscalplanning,whichtypicallyusesbothtraditionalcapitalexpenditure(CAPEX)andoperationalexpenditure(OPEX).Withtheadventofcloudcomputing,OPEXispreferredoverCAPEX,ascloudservicesareoftenconsumedasutilitiesandpaidoutoftheoperationalbudget.Ifcloudservicesarequickerandeasiertoaccessthanin-houseservices,thecostsassociatedwiththemwillgrowasmorepartsofthebusinessusethem.TheITcostmodelmustbeadjusted,andtheservicefinancialmanagementpracticecanhelptodeterminethetechniquesandcontrolsrequiredtoensurethattheorganizationdoesnotrunoutofOPEXunexpectedly.SuppliermanagementThefocusofthispracticewillneedtochangefromsimplyselectingsuppliersandonboardingthemtoactingasthefrontendforafull-onreleasemanagementprocess.ThiswillensurethatareassuchasITsecurity,dataprotection,andregulatorycomplianceareroutinelyassessedpriortotheonboardingofanewcloudoffering.CapacityandperformancemanagementCoupledwithservicefinancialmanagement,thispracticeshouldestablishandmonitorbudgets,withthresholdstrackedandwarningspublishedifanupswingindemandleadstoanincreaseinthecostofcloudservices.ChangecontrolTheboundariesofthispracticewillhavetoberedefined,ascloudserviceprovidersoftenmakechangeswithminimalcustomerinvolvement,andalmostnocustomerapproval.Productsandservicesbuiltontopofcloudserviceswillneedtomakefargreateruseofstandard
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changestounlockthebenefitsthatcloudplatforms(andassociatedbusinessmodels)provide.IncidentmanagementThefocusofthispracticewillchangefromknowinghowtofixin-houseissues,toknowingwhichserviceissupportedbywhichcloudprovider,andwhatinformationtheywillrequiretoresolveanissue.Greatercarewillbeneededtosupportimpactedcustomersandteams.DeploymentmanagementThispracticewillcontinuetobecriticaltoITdepartments,buttheabilitytosafelyonboardoroffboardacloudproviderwillbecomeacommonrequirementforITdepartments.DeploymentmanagementwillbeakeycapabilityforsuccessfulITorganizations,toensurenewcloudcapabilitiesarerapidlydeployedandembeddedwithinthein-houseserviceofferings.
5.3.3 Softwaredevelopmentandmanagement
KeymessageThepurposeofthesoftwaredevelopmentandmanagementpracticeistoensurethatapplicationsmeetinternalandexternalstakeholderneeds,intermsoffunctionality,reliability,maintainability,compliance,andauditability.
Theterm‘software’canbeusedtodescribeanythingfromasingleprogram(orsuiteofprograms)tolargerconstructs(suchasanoperatingsystem,anoperatingenvironment,oradatabase)onwhichvarioussmallerapplicationprograms,processes,orworkflowscanrun.Thereforethetermincludes,butisnotlimitedto,desktopapplications,ormobileapps,embeddedsoftware(controllingmachinesanddevices),andwebsites.
Softwareapplications,whetherdevelopedinhouseorbyapartnerorvendor,areofcriticalimportanceinthedeliveryofcustomervalueintechnology-enabledbusinessservices.Asaresult,softwaredevelopmentandmanagementisakeypracticeineverymodernITorganization,ensuringthatapplicationsarefitforpurposeanduse.
Thesoftwaredevelopmentandmanagementpracticeencompassesactivitiessuchas:
solutionarchitecturesolutiondesign(userinterface,CX,servicedesign,etc.)
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softwaredevelopmentsoftwaretesting(whichcanincludeseveralcomponents,suchasunittesting,integrationtesting,regressiontesting,informationsecuritytesting,anduseracceptancetesting)managementofcoderepositoriesorlibrariestomaintainintegrityofartefactspackagecreation,fortheeffectiveandefficientdeploymentoftheapplicationversioncontrol,sharing,andongoingmanagementofsmallerblocksofcode.
ThetwogenerallyacceptedapproachestosoftwaredevelopmentarereferredtoasthewaterfallandAgilemethods(seesection5.1.8formoreinformationonthesemethods).
Softwaremanagementisawiderpractice,encompassingtheongoingactivitiesofdesigning,testing,operating,andimprovingsoftwareapplicationssotheycontinuetofacilitatevaluecreation.Softwarecomponentscanbecontinuallyevaluatedusingalifecyclethattracksthecomponentfromideationthroughtoongoingimprovement,andeventuallyretirement.ThislifecycleisrepresentedinFigure5.39.
Figure5.39Thesoftwarelifecycle
Figure5.40showsthecontributionofsoftwaredevelopmentandmanagementtotheservicevaluechain,withthepracticebeinginvolvedinallvaluechainactivitiesexcepttheengageactivity:
PlanSoftwaredevelopmentandmanagementprovidesinformationaboutopportunitiesandconstraintsrelatedtothecreationandchangingoftheorganization’ssoftware.ImproveServiceimprovementsinvolvingsoftwarecomponentsoftheservices,especiallythosedevelopedinhouse,relyonthispractice.
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DesignandtransitionSoftwaredevelopmentandmanagementallowstheorganizationtoholisticallydesignandmanagechangestoproductsandservices.Obtain/buildThecreationofin-houseproductsandtheconfigurationofproductsdevelopedbypartnersandsuppliersdependonthispractice.DeliverandsupportSoftwaredevelopmentandmanagementprovidesdeliveryandsupportteamswithdocumentationneededtouseproductsthatfacilitatetheco-creationofvalue.
Figure5.40Heatmapofthecontributionofsoftwaredevelopmentandmanagementtovaluechainactivities
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ENDNOTE
THEITILSTORY,ONEYEARON
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EndnoteTheITILstory,oneyearon
IthasbeenayearsinceHenrijoinedAxleCarHire.Therehasbeensignificantpositivechangeduringthisperiod.Newservices,suchasbiometricsandtheadvanceddriverassistancesystem,arebeingwidelyadoptedbyAxle’sconsumers,andthecompanycontinuestogainareputationforfastandreliableservice.
Customerloyaltyhasimproved,withalargeincreaseinthenumberofrepeatbookings.AxlehasalsobeenawardedPartneroftheYearbytwomajorclients,includingFoodforFuel.
TheAxleGreenimprovementinitiativeiswellunderway,withmanytargetstomakethecompanymoreenvironmentallyfriendlyalreadymet.EffortstomakeuphalfoftheAxlefleetwithelectriccarsarealsogoingwell,andthecompanyhasmadegreatprogresstowardshittingthistarget.Henri’svisiontobecomethemostrecognizedcar-hirebrandintheworld,offeringafulltravelexperience,iswithinreach.
AxleseeshowtheconceptsofITILarehelpingittofulfilitsobjectives.TheadoptionandadaptationofITILguidancehelpsAxletodeliverhigh-qualityservicesandcreatevalueforitselfanditscustomers.
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APPENDIXA
EXAMPLESOFVALUESTREAMS
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AExamplesofvaluestreamsThissectiondemonstrateshowtheservicevaluechaincanbeappliedtopracticalsituationsandprovidesexamplesofvaluestreams.Thesevaluestreamsshowhowactivitymightflowthroughthevaluechain.Thesearenotmodelstobecopied,butsimplyexamplestogiveanunderstandingofhowthevaluechainshouldbeused.
Theexamplesincludesomesamplejobroles.Thesearejustrolesthatmightexistinthefictionalorganizationbeingdescribedandarenotrecommendedrolesforeveryorganization.Toaidunderstanding,thefirstvaluestreamisdescribedinsomedetail;insubsequentexamplesonlyatablehasbeenprovided.
A.1Auserneedsanincidenttoberesolved
Inthisfirstexampleofavaluestream,theWiFiinawarehouseisnotworkingproperlybecauseawirelessaccesspointhasfailed.Thishasasignificantimpactonthebusinessbecausetheforkliftdrivercannotreceiveinstructionsquicklyenough,andassuchthereisariskthatabusinessdeadlinewillbemissed.Thismayseemlikearelativelystraightforwardincident;however,itcan’tberesolvedbysimplymechanicallyfollowingthestepsofapredeterminedincidentmanagementprocedure.
First,someonemustnoticethatthereisanincidentandknowhowtoreportit,anditmustbepossibleforthatpersontocommunicatetheurgencyofthesituationaccuratelysothatitcanbeprioritizedcorrectly.Thepersonreceivingthereportmusthaveboththeauthoritytoescalatetheincidentandtheproceduresfordoingso,andformonitoringtheprogressoftheincident.Resourcesmustbeinplacetoallowforasufficientlyrapidescalation;someonemusthavetheskills,knowledge,andtoolsrequiredtoinvestigatetheincident;andtherehavetobeproceduresinplacethatallowstandardchangestobeimplementedwithoutarequirementtoobtainadditionalapproval.Itmustbepossibleforsomeonetoaccessaccurateconfigurationinformationandtologtherepaironceithasbeencompleted.Itmustalsobepossibletologthataspareparthasbeenconsumedandtore-orderitagainstfutureneed.Iftherepairistobeofanyvalue,however,thewarehouseneedstobetoldwhathashappened,sothatnormalworkingcanberesumed.Itisalsoimportanttocheckhowwelltheincidentwasresolved,toseeifthereareanylessonstobelearned.
TableA.1summarizesthedifferentactionsandresourcesrequiredtoresolvethisapparentlysimpleincident.Thetableshowshowmultiplepracticessupportthiswork,withsomepracticessupportingmultiplevaluechainactivitiesatdifferent
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times.
TableA.1Valuestreamsforincidentresolution
A.2Anerrorinthird-partysoftwarecreatesissuesforauser
Inthisexampleauserdiscoversanissuewhenusinganapplication.Thevendorhasapatchavailableandthisneedstobeinstalledtorectifythesituation.Notethatthisincidenttakesaverydifferentpaththroughtheservicevaluechain,andissupportedbyadifferentbalanceofpracticesthanthepreviousincident.
TableA.2Valuestreamsforsoftwareissues
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A.3BusinessrequirementforasignificantnewITservice
InthisexampletheinternalITdepartmentofashoemanufactureridentifiesaneedforanewITservice.
TableA.3ValuestreamsforcreationofanITservice
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A.4Regulatorychangerequiresnewsoftwaredevelopment
Inthisexampleafinancialorganizationmustgetreadytomeetnewregulatoryrequirements.
TableA.4Valuestreamsfornewsoftwaredevelopment
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FURTHERRESEARCH
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Furtherresearch
AXELOSpublicationsAXELOS(2018)AGuidetoAgileSHIFT™.TheStationeryOffice,London.
AXELOS(2017)ManagingSuccessfulProjectswithPRINCE2®.TheStationeryOffice,London.
AXELOS(2015)PRINCE2Agile®.TheStationeryOffice,London.
AXELOS(2015)RESILIA®:CyberResilienceBestPractice.TheStationeryOffice,London.CabinetOffice(2011)ManagingSuccessfulProgrammes.TheStationeryOffice,London.OfficeofGovernmentCommerce(2010)ManagementofRisk:GuidanceforPractitioners.TheStationeryOffice,London.OfficeofGovernmentCommerce(2010)ManagementofValue.TheStationeryOffice,London.
OtherpublicationsGoldratt,E.andCox,J.(1992)TheGoal:AProcessofOngoingImprovement.NorthRiverPress.Hall,J.(2016).ITSM,DevOps,andwhythree-tiersupportshouldbereplacedwithSwarming.https://medium.com/@JonHall_/itsm-devops-and-why-the-three-tier-structure-must-be-replaced-with-swarming-91e76ba22304Humble,J.,Molesky,J.andO’Reilly,B.(2015)LeanEnterprise:HowHighPerformanceOrganizationsInnovateatScale.O’ReillyMedia.Kim,G.,Behr,K.andSpafford,G.(2013)ThePhoenixProject:ANovelAboutIT,DevOpsandHelpingYourBusinessWin.ITRevolutionPress.Kim,G.,Debois,P.andWillis,J.(2016)TheDevOpsHandbook:HowtoCreateWorld-ClassAgility,Reliability,andSecurityinTechnologyOrganizations.ITRevolutionPress.Vargo,S.L.andLusch,R.F.(2016)Institutionsandaxioms:anextensionandupdateofservice-dominantlogic.JournaloftheAcademyofMarketingScience44(4),pp.5–23.Vargo,S.L.andLusch,R.F.(2011)Service-dominantlogic:anecessarystep.EuropeanJournalofMarketing45(7),pp.1289–1309.Vargo,S.L.andLusch,R.F.(2008)Service-dominantlogic:continuingtheevolution.JournaloftheAcademyofMarketingScience36,pp.1–10.
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WebsitesAgileManifesto:http://www.agilemanifesto.org
COBIT®2019:http://www.isaca.org/Cobit/pages/default.aspxCynefinFrameworkfordecisionmaking:https://cognitive-edge.comInternationalOrganizationforStandardization(ISO)20000:https://www.iso.org/standard/70636.htmlLeanIT:http://leanitassociation.comTheIT4IT™standards:https://publications.opengroup.org/standards/it4it
TheOpenGroupArchitectureFramework(TOGAF®)standards:https://publications.opengroup.org/standards/togafTheStandard+Caseapproach:applyingCasemanagementtoITSM:http://www.itskeptic.org/standard-caseThreewaysofDevOps:https://itrevolution.com/?s=three+ways+of+devops
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GLOSSARY
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Glossary
acceptancecriteriaAlistofminimumrequirementsthataserviceorservicecomponentmustmeetforittobeacceptabletokeystakeholders.
AgileAnumbrellatermforacollectionofframeworksandtechniquesthattogetherenableteamsandindividualstoworkinawaythatistypifiedbycollaboration,prioritization,iterativeandincrementaldelivery,andtimeboxing.Thereareseveralspecificmethods(orframeworks)thatareclassedasAgile,suchasScrum,Lean,andKanban.
architecturemanagementpracticeThepracticeofprovidinganunderstandingofallthedifferentelementsthatmakeupanorganizationandhowthoseelementsrelatetooneanother.
assetregisterAdatabaseorlistofassets,capturingkeyattributessuchasownershipandfinancialvalue.
availabilityTheabilityofanITserviceorotherconfigurationitemtoperformitsagreedfunctionwhenrequired.
availabilitymanagementpracticeThepracticeofensuringthatservicesdeliveragreedlevelsofavailabilitytomeettheneedsofcustomersandusers.
baselineAreportormetricthatservesasastartingpointagainstwhichprogressorchangecanbeassessed.
bestpracticeAwayofworkingthathasbeenproventobesuccessfulbymultipleorganizations.
bigdataTheuseofverylargevolumesofstructuredandunstructureddatafromavarietyofsourcestogainnewinsights.
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businessanalysispracticeThepracticeofanalysingabusinessorsomeelementofabusiness,definingitsneedsandrecommendingsolutionstoaddresstheseneedsand/orsolveabusinessproblem,andcreatevalueforstakeholders.
businesscaseAjustificationforexpenditureoforganizationalresources,providinginformationaboutcosts,benefits,options,risks,andissues.
businessimpactanalysis(BIA)Akeyactivityinthepracticeofservicecontinuitymanagementthatidentifiesvitalbusinessfunctionsandtheirdependencies.
businessrelationshipmanager(BRM)Aroleresponsibleformaintaininggoodrelationshipswithoneormorecustomers.
callAninteraction(e.g.atelephonecall)withtheservicedesk.Acallcouldresultinanincidentoraservicerequestbeinglogged.
call/contactcentreAnorganizationorbusinessunitthathandleslargenumbersofincomingandoutgoingcallsandotherinteractions.
capabilityTheabilityofanorganization,person,process,application,configurationitem,orITservicetocarryoutanactivity.
capacityandperformancemanagementpracticeThepracticeofensuringthatservicesachieveagreedandexpectedperformancelevels,satisfyingcurrentandfuturedemandinacost-effectiveway.
capacityplanningTheactivityofcreatingaplanthatmanagesresourcestomeetdemandforservices.
changeTheaddition,modification,orremovalofanythingthatcouldhaveadirectorindirecteffectonservices.
changeauthorityApersonorgroupresponsibleforauthorizingachange.
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changecontrolpracticeThepracticeofensuringthatrisksareproperlyassessed,authorizingchangestoproceedandmanagingachangescheduleinordertomaximizethenumberofsuccessfulserviceandproductchanges.
changemodelArepeatableapproachtothemanagementofaparticulartypeofchange.
changescheduleAcalendarthatshowsplannedandhistoricalchanges.
chargingTheactivitythatassignsapriceforservices.
cloudcomputingAmodelforenablingon-demandnetworkaccesstoasharedpoolofconfigurablecomputingresourcesthatcanberapidlyprovidedwithminimalmanagementeffortorproviderinteraction.
complianceTheactofensuringthatastandardorsetofguidelinesisfollowed,orthatproper,consistentaccountingorotherpracticesarebeingemployed.
confidentialityAsecurityobjectivethatensuresinformationisnotmadeavailableordisclosedtounauthorizedentities.
configurationAnarrangementofconfigurationitems(CIs)orotherresourcesthatworktogethertodeliveraproductorservice.CanalsobeusedtodescribetheparametersettingsforoneormoreCIs.
configurationitem(CI)AnycomponentthatneedstobemanagedinordertodeliveranITservice.
configurationmanagementdatabase(CMDB)Adatabaseusedtostoreconfigurationrecordsthroughouttheirlifecycle.TheCMDBalsomaintainstherelationshipsbetweenconfigurationrecords.
configurationmanagementsystem(CMS)Asetoftools,data,andinformationthatisusedtosupportserviceconfiguration
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management.
configurationrecordArecordcontainingthedetailsofaconfigurationitem(CI).EachconfigurationrecorddocumentsthelifecycleofasingleCI.Configurationrecordsarestoredinaconfigurationmanagementdatabase.
continualimprovementpracticeThepracticeofaligninganorganization’spracticesandserviceswithchangingbusinessneedsthroughtheongoingidentificationandimprovementofallelementsinvolvedintheeffectivemanagementofproductsandservices.
continuousdeploymentAnintegratedsetofpracticesandtoolsusedtodeploysoftwarechangesintotheproductionenvironment.Thesesoftwarechangeshavealreadypassedpre-definedautomatedtests.
continuousintegration/continuousdeliveryAnintegratedsetofpracticesandtoolsusedtomergedevelopers’code,buildandtesttheresultingsoftware,andpackageitsothatitisreadyfordeployment.
controlThemeansofmanagingarisk,ensuringthatabusinessobjectiveisachieved,orthataprocessisfollowed.
costTheamountofmoneyspentonaspecificactivityorresource.
costcentreAbusinessunitorprojecttowhichcostsareassigned.
criticalsuccessfactor(CSF)Anecessarypreconditionfortheachievementofintendedresults.
cultureAsetofvaluesthatissharedbyagroupofpeople,includingexpectationsabouthowpeopleshouldbehave,ideas,beliefs,andpractices.
customerApersonwhodefinestherequirementsforaserviceandtakesresponsibilityfortheoutcomesofserviceconsumption.
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customerexperience(CX)Thesumoffunctionalandemotionalinteractionswithaserviceandserviceproviderasperceivedbyaserviceconsumer.
dashboardAreal-timegraphicalrepresentationofdata.
deliverandsupportThevaluechainactivitythatensuresservicesaredeliveredandsupportedaccordingtoagreedspecificationsandstakeholders’expectations.
demandInputtotheservicevaluesystembasedonopportunitiesandneedsfrominternalandexternalstakeholders.
deploymentThemovementofanyservicecomponentintoanyenvironment.
deploymentmanagementpracticeThepracticeofmovingneworchangedhardware,software,documentation,processes,oranyotherservicecomponenttoliveenvironments.
designandtransitionThevaluechainactivitythatensuresproductsandservicescontinuallymeetstakeholderexpectationsforquality,costs,andtimetomarket.
designthinkingApracticalandhuman-centredapproachusedbyproductandservicedesignerstosolvecomplexproblemsandfindpracticalandcreativesolutionsthatmeettheneedsofanorganizationanditscustomers.
developmentenvironmentAnenvironmentusedtocreateormodifyITservicesorapplications.
DevOpsAnorganizationalculturethataimstoimprovetheflowofvaluetocustomers.DevOpsfocusesonculture,automation,Lean,measurement,andsharing(CALMS).
digitaltransformationTheevolutionoftraditionalbusinessmodelstomeettheneedsofhighlyempoweredcustomers,withtechnologyplayinganenablingrole.
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disasterAsuddenunplannedeventthatcausesgreatdamageorseriouslosstoanorganization.Adisasterresultsinanorganizationfailingtoprovidecriticalbusinessfunctionsforsomepredeterminedminimumperiodoftime.
disasterrecoveryplansAsetofclearlydefinedplansrelatedtohowanorganizationwillrecoverfromadisasteraswellasreturntoapre-disastercondition,consideringthefourdimensionsofservicemanagement.
driverSomethingthatinfluencesstrategy,objectives,orrequirements.
effectivenessAmeasureofwhethertheobjectivesofapractice,serviceoractivityhavebeenachieved.
efficiencyAmeasureofwhethertherightamountofresourceshavebeenusedbyapractice,service,oractivity.
emergencychangeAchangethatmustbeintroducedassoonaspossible.
engageThevaluechainactivitythatprovidesagoodunderstandingofstakeholderneeds,transparency,continualengagement,andgoodrelationshipswithallstakeholders.
environmentAsubsetoftheITinfrastructurethatisusedforaparticularpurpose,forexamplealiveenvironmentortestenvironment.Canalsomeantheexternalconditionsthatinfluenceoraffectsomething.
errorAflaworvulnerabilitythatmaycauseincidents.
errorcontrolProblemmanagementactivitiesusedtomanageknownerrors.
escalationTheactofsharingawarenessortransferringownershipofanissueorworkitem.
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eventAnychangeofstatethathassignificanceforthemanagementofaserviceorotherconfigurationitem.
externalcustomerAcustomerwhoworksforanorganizationotherthantheserviceprovider.
failureAlossofabilitytooperatetospecification,ortodelivertherequiredoutputoroutcome.
fourdimensionsofservicemanagementThefourperspectivesthatarecriticaltotheeffectiveandefficientfacilitationofvalueforcustomersandotherstakeholdersintheformofproductsandservices.
goodsTangibleresourcesthataretransferredoravailablefortransferfromaserviceprovidertoaserviceconsumer,togetherwithownershipandassociatedrightsandresponsibilities.
governanceThemeansbywhichanorganizationisdirectedandcontrolled.
identityAuniquenamethatisusedtoidentifyandgrantsystemaccessrightstoauser,person,orrole.
improveThevaluechainactivitythatensurescontinualimprovementofproducts,services,andpracticesacrossallvaluechainactivitiesandthefourdimensionsofservicemanagement.
incidentAnunplannedinterruptiontoaserviceorreductioninthequalityofaservice.
incidentmanagementThepracticeofminimizingthenegativeimpactofincidentsbyrestoringnormalserviceoperationasquicklyaspossible.
informationandtechnologyOneofthefourdimensionsofservicemanagement.Itincludestheinformationand
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knowledgeusedtodeliverservices,andtheinformationandtechnologiesusedtomanageallaspectsoftheservicevaluesystem.
informationsecuritymanagementpracticeThepracticeofprotectinganorganizationbyunderstandingandmanagingriskstotheconfidentiality,integrity,andavailabilityofinformation.
informationsecuritypolicyThepolicythatgovernsanorganization’sapproachtoinformationsecuritymanagement.
infrastructureandplatformmanagementpracticeThepracticeofoverseeingtheinfrastructureandplatformsusedbyanorganization.Thisenablesthemonitoringoftechnologysolutionsavailable,includingsolutionsfromthirdparties.
integrityAsecurityobjectivethatensuresinformationisonlymodifiedbyauthorizedpersonnelandactivities.
feedbackloopAtechniquewherebytheoutputsofonepartofasystemareusedasinputstothesamepartofthesystem.
internalcustomerAcustomerwhoworksforthesameorganizationastheserviceprovider.
InternetofThingsTheinterconnectionofdevicesviatheinternetthatwerenottraditionallythoughtofasITassets,butnowincludeembeddedcomputingcapabilityandnetworkconnectivity.
ITassetAnyfinanciallyvaluablecomponentthatcancontributetothedeliveryofanITproductorservice.
ITassetmanagementpracticeThepracticeofplanningandmanagingthefulllifecycleofallITassets.
ITinfrastructureAllofthehardware,software,networks,andfacilitiesthatarerequiredtodevelop,test,deliver,monitor,manage,andsupportITservices.
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ITserviceAservicebasedontheuseofinformationtechnology.
ITILBest-practiceguidanceforITservicemanagement.
ITILguidingprinciplesRecommendationsthatcanguideanorganizationinallcircumstances,regardlessofchangesinitsgoals,strategies,typeofwork,ormanagementstructure.
ITILservicevaluechainAnoperatingmodelforserviceprovidersthatcoversallthekeyactivitiesrequiredtoeffectivelymanageproductsandservices.
KanbanAmethodforvisualizingwork,identifyingpotentialblockagesandresourceconflicts,andmanagingworkinprogress.
keyperformanceindicator(KPI)Animportantmetricusedtoevaluatethesuccessinmeetinganobjective.
knowledgemanagementpracticeThepracticeofmaintainingandimprovingtheeffective,efficient,andconvenientuseofinformationandknowledgeacrossanorganization.
knownerrorAproblemthathasbeenanalysedbuthasnotbeenresolved.
LeanAnapproachthatfocusesonimprovingworkflowsbymaximizingvaluethroughtheeliminationofwaste.
lifecycleThefullsetofstages,transitions,andassociatedstatusesinthelifeofaservice,product,practice,orotherentity.
liveReferstoaserviceorotherconfigurationitemoperatingintheliveenvironment.
liveenvironmentAcontrolledenvironmentusedinthedeliveryofITservicestoserviceconsumers.
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maintainabilityTheeasewithwhichaserviceorotherentitycanberepairedormodified.
majorincidentAnincidentwithsignificantbusinessimpact,requiringanimmediatecoordinatedresolution.
managementsystemInterrelatedorinteractingelementsthatestablishpolicyandobjectivesandenabletheachievementofthoseobjectives.
maturityAmeasureofthereliability,efficiencyandeffectivenessofanorganization,practice,orprocess.
meantimebetweenfailures(MTBF)Ametricofhowfrequentlyaserviceorotherconfigurationitemfails.
meantimetorestoreservice(MTRS)Ametricofhowquicklyaserviceisrestoredafterafailure.
measurementandreportingThepracticeofsupportinggooddecision-makingandcontinualimprovementbydecreasinglevelsofuncertainty.
metricAmeasurementorcalculationthatismonitoredorreportedformanagementandimprovement.
minimumviableproduct(MVP)Aproductwithjustenoughfeaturestosatisfyearlycustomers,andtoprovidefeedbackforfutureproductdevelopment.
missionstatementAshortbutcompletedescriptionoftheoverallpurposeandintentionsofanorganization.Itstateswhatistobeachieved,butnothowthisshouldbedone.
modelArepresentationofasystem,practice,process,service,orotherentitythatisusedtounderstandandpredictitsbehaviourandrelationships.
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modellingTheactivityofcreating,maintaining,andutilizingmodels.
monitoringRepeatedobservationofasystem,practice,process,service,orotherentitytodetecteventsandtoensurethatthecurrentstatusisknown.
monitoringandeventmanagementpracticeThepracticeofsystematicallyobservingservicesandservicecomponents,andrecordingandreportingselectedchangesofstateidentifiedasevents.
obtain/buildThevaluechainactivitythatensuresservicecomponentsareavailablewhenandwheretheyareneeded,andthattheymeetagreedspecifications.
operationTheroutinerunningandmanagementofanactivity,product,service,orotherconfigurationitem.
operationaltechnologyThehardwareandsoftwaresolutionsthatdetectorcausechangesinphysicalprocessesthroughdirectmonitoringand/orcontrolofphysicaldevicessuchasvalves,pumps,etc.
organizationApersonoragroupofpeoplethathasitsownfunctionswithresponsibilities,authorities,andrelationshipstoachieveitsobjectives.
organizationalchangemanagementpracticeThepracticeofensuringthatchangesinanorganizationaresmoothlyandsuccessfullyimplementedandthatlastingbenefitsareachievedbymanagingthehumanaspectsofthechanges.
organizationalresilienceTheabilityofanorganizationtoanticipate,preparefor,respondto,andadapttounplannedexternalinfluences.
organizationalvelocityThespeed,effectiveness,andefficiencywithwhichanorganizationoperates.Organizationalvelocityinfluencestimetomarket,quality,safety,costs,andrisks.
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organizationsandpeopleOneofthefourdimensionsofservicemanagement.Itensuresthatthewayanorganizationisstructuredandmanaged,aswellasitsroles,responsibilities,andsystemsofauthorityandcommunication,iswelldefinedandsupportsitsoverallstrategyandoperatingmodel.
outcomeAresultforastakeholderenabledbyoneormoreoutputs.
outputAtangibleorintangibledeliverableofanactivity.
outsourcingTheprocessofhavingexternalsuppliersprovideproductsandservicesthatwerepreviouslyprovidedinternally.
partnersandsuppliersOneofthefourdimensionsofservicemanagement.Itencompassestherelationshipsanorganizationhaswithotherorganizationsthatareinvolvedinthedesign,development,deployment,delivery,support,and/orcontinualimprovementofservices.
partnershipArelationshipbetweentwoorganizationsthatinvolvesworkingcloselytogethertoachievecommongoalsandobjectives.
performanceAmeasureofwhatisachievedordeliveredbyasystem,person,team,practice,orservice.
pilotAtestimplementationofaservicewithalimitedscopeinaliveenvironment.
planThevaluechainactivitythatensuresasharedunderstandingofthevision,currentstatus,andimprovementdirectionforallfourdimensionsandallproductsandservicesacrossanorganization.
policyFormallydocumentedmanagementexpectationsandintentions,usedtodirectdecisionsandactivities.
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portfoliomanagementpracticeThepracticeofensuringthatanorganizationhastherightmixofprogrammes,projects,products,andservicestoexecuteitsstrategywithinitsfundingandresourceconstraints.
post-implementationreview(PIR)Areviewaftertheimplementationofachange,toevaluatesuccessandidentifyopportunitiesforimprovement.
practiceAsetoforganizationalresourcesdesignedforperformingworkoraccomplishinganobjective.
problemAcause,orpotentialcause,ofoneormoreincidents.
problemmanagementpracticeThepracticeofreducingthelikelihoodandimpactofincidentsbyidentifyingactualandpotentialcausesofincidents,andmanagingworkaroundsandknownerrors.
procedureAdocumentedwaytocarryoutanactivityoraprocess.
processAsetofinterrelatedorinteractingactivitiesthattransforminputsintooutputs.Aprocesstakesoneormoredefinedinputsandturnsthemintodefinedoutputs.Processesdefinethesequenceofactionsandtheirdependencies.
productAconfigurationofanorganization’sresourcesdesignedtooffervalueforaconsumer.
productionenvironmentSeeliveenvironment.
programmeAsetofrelatedprojectsandactivities,andanorganizationstructurecreatedtodirectandoverseethem.
projectAtemporarystructurethatiscreatedforthepurposeofdeliveringoneormore
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outputs(orproducts)accordingtoanagreedbusinesscase.
projectmanagementpracticeThepracticeofensuringthatallanorganization’sprojectsaresuccessfullydelivered.
quickwinAnimprovementthatisexpectedtoprovideareturnoninvestmentinashortperiodoftimewithrelativelysmallcostandeffort.
recordAdocumentstatingresultsachievedandprovidingevidenceofactivitiesperformed.
recoveryTheactivityofreturningaconfigurationitemtonormaloperationafterafailure.
recoverypointobjective(RPO)Thepointtowhichinformationusedbyanactivitymustberestoredtoenabletheactivitytooperateonresumption.
recoverytimeobjective(RTO)Themaximumacceptableperiodoftimefollowingaservicedisruptionthatcanelapsebeforethelackofbusinessfunctionalityseverelyimpactstheorganization.
relationshipmanagementpracticeThepracticeofestablishingandnurturinglinksbetweenanorganizationanditsstakeholdersatstrategicandtacticallevels.
releaseAversionofaserviceorotherconfigurationitem,oracollectionofconfigurationitems,thatismadeavailableforuse.
releasemanagementpracticeThepracticeofmakingnewandchangedservicesandfeaturesavailableforuse.
reliabilityTheabilityofaproduct,service,orotherconfigurationitemtoperformitsintendedfunctionforaspecifiedperiodoftimeornumberofcycles.
requestcatalogueAviewoftheservicecatalogue,providingdetailsonservicerequestsforexisting
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andnewservices,whichismadeavailablefortheuser.
requestforchange(RFC)Adescriptionofaproposedchangeusedtoinitiatechangecontrol.
resolutionTheactionofsolvinganincidentorproblem.
resourceAperson,orotherentity,thatisrequiredfortheexecutionofanactivityortheachievementofanobjective.Resourcesusedbyanorganizationmaybeownedbytheorganizationorusedaccordingtoanagreementwiththeresourceowner.
retireTheactofpermanentlywithdrawingaproduct,service,orotherconfigurationitemfromuse.
riskApossibleeventthatcouldcauseharmorloss,ormakeitmoredifficulttoachieveobjectives.Canalsobedefinedasuncertaintyofoutcome,andcanbeusedinthecontextofmeasuringtheprobabilityofpositiveoutcomesaswellasnegativeoutcomes.
riskassessmentAnactivitytoidentify,analyse,andevaluaterisks.
riskmanagementpracticeThepracticeofensuringthatanorganizationunderstandsandeffectivelyhandlesrisks.
serviceAmeansofenablingvalueco-creationbyfacilitatingoutcomesthatcustomerswanttoachieve,withoutthecustomerhavingtomanagespecificcostsandrisks.
serviceactionAnyactionrequiredtodeliveraserviceoutputtoauser.Serviceactionsmaybeperformedbyaserviceproviderresource,byserviceusers,orjointly.
servicearchitectureAviewofalltheservicesprovidedbyanorganization.Itincludesinteractionsbetweentheservices,andservicemodelsthatdescribethestructureanddynamicsofeachservice.
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servicecatalogueStructuredinformationaboutalltheservicesandserviceofferingsofaserviceprovider,relevantforaspecifictargetaudience.
servicecataloguemanagementpracticeThepracticeofprovidingasinglesourceofconsistentinformationonallservicesandserviceofferings,andensuringthatitisavailabletotherelevantaudience.
serviceconfigurationmanagementpracticeThepracticeofensuringthataccurateandreliableinformationabouttheconfigurationofservices,andtheconfigurationitemsthatsupportthem,isavailablewhenandwhereneeded.
serviceconsumptionActivitiesperformedbyanorganizationtoconsumeservices.Itincludesthemanagementoftheconsumer’sresourcesneededtousetheservice,serviceactionsperformedbyusers,andthereceiving(acquiring)ofgoods(ifrequired).
servicecontinuitymanagementpracticeThepracticeofensuringthatserviceavailabilityandperformancearemaintainedatasufficientlevelincaseofadisaster.
servicedesignpracticeThepracticeofdesigningproductsandservicesthatarefitforpurpose,fitforuse,andthatcanbedeliveredbytheorganizationanditsecosystem.
servicedeskThepointofcommunicationbetweentheserviceproviderandallitsusers.
servicedeskpracticeThepracticeofcapturingdemandforincidentresolutionandservicerequests.
servicefinancialmanagementpracticeThepracticeofsupportinganorganization’sstrategiesandplansforservicemanagementbyensuringthattheorganization’sfinancialresourcesandinvestmentsarebeingusedeffectively.
servicelevelOneormoremetricsthatdefineexpectedorachievedservicequality.
servicelevelagreement(SLA)
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Adocumentedagreementbetweenaserviceproviderandacustomerthatidentifiesbothservicesrequiredandtheexpectedlevelofservice.
servicelevelmanagementpracticeThepracticeofsettingclearbusiness-basedtargetsforserviceperformancesothatthedeliveryofaservicecanbeproperlyassessed,monitored,andmanagedagainstthesetargets.
servicemanagementAsetofspecializedorganizationalcapabilitiesforenablingvalueforcustomersintheformofservices.
serviceofferingAformaldescriptionofoneormoreservices,designedtoaddresstheneedsofatargetconsumergroup.Aserviceofferingmayincludegoods,accesstoresources,andserviceactions.
serviceownerArolethatisaccountableforthedeliveryofaspecificservice.
serviceportfolioAcompletesetofproductsandservicesthataremanagedthroughouttheirlifecyclesbyanorganization.
serviceproviderAroleperformedbyanorganizationinaservicerelationshiptoprovideservicestoconsumers.
serviceprovisionActivitiesperformedbyanorganizationtoprovideservices.Itincludesmanagementoftheprovider’sresources,configuredtodelivertheservice;ensuringaccesstotheseresourcesforusers;fulfilmentoftheagreedserviceactions;servicelevelmanagement;andcontinualimprovement.Itmayalsoincludethesupplyofgoods.
servicerelationshipAcooperationbetweenaserviceproviderandserviceconsumer.Servicerelationshipsincludeserviceprovision,serviceconsumption,andservicerelationshipmanagement.
servicerelationshipmanagementJointactivitiesperformedbyaserviceproviderandaserviceconsumertoensurecontinualvalueco-creationbasedonagreedandavailableserviceofferings.
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servicerequestArequestfromauserorauser’sauthorizedrepresentativethatinitiatesaserviceactionwhichhasbeenagreedasanormalpartofservicedelivery.
servicerequestmanagementpracticeThepracticeofsupportingtheagreedqualityofaservicebyhandlingallpre-defined,user-initiatedservicerequestsinaneffectiveanduser-friendlymanner.
servicevalidationandtestingpracticeThepracticeofensuringthatneworchangedproductsandservicesmeetdefinedrequirements.
servicevaluesystem(SVS)Amodelrepresentinghowallthecomponentsandactivitiesofanorganizationworktogethertofacilitatevaluecreation.
softwaredevelopmentandmanagementpracticeThepracticeofensuringthatapplicationsmeetstakeholderneedsintermsoffunctionality,reliability,maintainability,compliance,andauditability.
sourcingTheactivityofplanningandobtainingresourcesfromaparticularsourcetype,whichcouldbeinternalorexternal,centralizedordistributed,andopenorproprietary.
specificationAdocumenteddescriptionofthepropertiesofaproduct,service,orotherconfigurationitem.
sponsorApersonwhoauthorizesbudgetforserviceconsumption.Canalsobeusedtodescribeanorganizationorindividualthatprovidesfinancialorothersupportforaninitiative.
stakeholderApersonororganizationthathasaninterestorinvolvementinanorganization,product,service,practice,orotherentity.
standardAdocument,establishedbyconsensusandapprovedbyarecognizedbody,thatprovidesforcommonandrepeateduse,mandatoryrequirements,guidelines,orcharacteristicsforitssubject.
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standardchangeAlow-risk,pre-authorizedchangethatiswellunderstoodandfullydocumented,andwhichcanbeimplementedwithoutneedingadditionalauthorization.
statusAdescriptionofthespecificstatesanentitycanhaveatagiventime.
strategymanagementpracticeThepracticeofformulatingthegoalsofanorganizationandadoptingthecoursesofactionandallocationofresourcesnecessaryforachievingthosegoals.
supplierAstakeholderresponsibleforprovidingservicesthatareusedbyanorganization.
suppliermanagementpracticeThepracticeofensuringthatanorganization’ssuppliersandtheirperformancelevelsaremanagedappropriatelytosupporttheprovisionofseamlessqualityproductsandservices.
supportteamAteamwiththeresponsibilitytomaintainnormaloperations,addressusers’requests,andresolveincidentsandproblemsrelatedtospecifiedproducts,services,orotherconfigurationitems.
systemAcombinationofinteractingelementsorganizedandmaintainedtoachieveoneormorestatedpurposes.
systemsthinkingAholisticapproachtoanalysisthatfocusesonthewaythatasystem’sconstituentpartswork,interrelate,andinteractovertime,andwithinthecontextofothersystems.
technicaldebtThetotalreworkbacklogaccumulatedbychoosingworkaroundsinsteadofsystemsolutionsthatwouldtakelonger.
testenvironmentAcontrolledenvironmentestablishedtotestproducts,services,andotherconfigurationitems.
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thirdpartyAstakeholderexternaltoanorganization.
throughputAmeasureoftheamountofworkperformedbyaproduct,service,orothersystemoveragivenperiodoftime.
transactionAunitofworkconsistingofanexchangebetweentwoormoreparticipantsorsystems.
usecaseAtechniqueusingrealisticpracticalscenariostodefinefunctionalrequirementsandtodesigntests.
userApersonwhousesservices.
utilityThefunctionalityofferedbyaproductorservicetomeetaparticularneed.Utilitycanbesummarizedas‘whattheservicedoes’andcanbeusedtodeterminewhetheraserviceis‘fitforpurpose’.Tohaveutility,aservicemusteithersupporttheperformanceoftheconsumerorremoveconstraintsfromtheconsumer.Manyservicesdoboth.
utilityrequirementsFunctionalrequirementswhichhavebeendefinedbythecustomerandareuniquetoaspecificproduct.
validationConfirmationthatthesystem,product,service,orotherentitymeetstheagreedspecification.
valueTheperceivedbenefits,usefulness,andimportanceofsomething.
valuestreamAseriesofstepsanorganizationundertakestocreateanddeliverproductsandservicestoconsumers.
valuestreamsandprocesses
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Oneofthefourdimensionsofservicemanagement.Itdefinestheactivities,workflows,controls,andproceduresneededtoachievetheagreedobjectives.
visionAdefinedaspirationofwhatanorganizationwouldliketobecomeinthefuture.
warrantyAssurancethataproductorservicewillmeetagreedrequirements.Warrantycanbesummarizedas‘howtheserviceperforms’andcanbeusedtodeterminewhetheraserviceis‘fitforuse’.Warrantyoftenrelatestoservicelevelsalignedwiththeneedsofserviceconsumers.Thismaybebasedonaformalagreement,oritmaybeamarketingmessageorbrandimage.Warrantytypicallyaddressessuchareasastheavailabilityoftheservice,itscapacity,levelsofsecurity,andcontinuity.Aservicemaybesaidtoprovideacceptableassurance,or‘warranty’,ifalldefinedandagreedconditionsaremet.
warrantyrequirementsTypicallynon-functionalrequirementscapturedasinputsfromkeystakeholdersandotherpractices.
waterfallmethodAdevelopmentapproachthatislinearandsequentialwithdistinctobjectivesforeachphaseofdevelopment.
workinstructionAdetaileddescriptiontobefollowedinordertoperformanactivity.
workaroundAsolutionthatreducesoreliminatestheimpactofanincidentorproblemforwhichafullresolutionisnotyetavailable.Someworkaroundsreducethelikelihoodofincidents.
workforceandtalentmanagementpracticeThepracticeofensuringthatanorganizationhastherightpeoplewiththeappropriateskillsandknowledgeandinthecorrectrolestosupportitsbusinessobjectives.
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ACKNOWLEDGEMENTS
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AcknowledgementsAXELOSLtdisgratefultoeveryonewhohascontributedtothedevelopmentofthisguidanceandinparticularwouldliketothankthefollowingpeople.
Authoringteam
RomanJouravlev
RomanworksatAXELOSasaportfoliodevelopmentmanager,responsibleforthecontinualdevelopmentofITIL.HejoinedAXELOSin2016afterworkingformorethan15yearsinITSM,mostlyinRussia,asatrainer,consultant,qualitymanager,and(manyyearsago)servicedeskmanager.RomanhasauthoredandtranslatedseveralbooksandmanyarticlesonITservicemanagement.
AkshayAnand
AkshayisaproductambassadoratAXELOS,workingonthedevelopmentofnewguidanceandresearchwithintheITSMportfolio.WithexperiencefromtheUS,UK,andIndia,hepreviouslyadvisedFortune100clientsontheirITSMcapabilities,implementedtoolsetssuchasRemedyandServiceNow,andheadedupglobalITSMactivitiesatMacmillanPublishing.Morerecently,AkshayhasfocusedonbringingtogetherAgiledevelopmentteamsandITSMprofessionalstoaddressthechallengesposedbyemergingtechnologies.Hetweetsas@bloreboy.
JoséCarmonaOrbezo
JoséworksatAXELOSasheadofproductmanagement,responsibleforshapingthestrategyandvisionoftheAXELOSproductportfolio.HejoinedAXELOSin2016,aftercompletinghisMBAatManchesterBusinessSchool.Hisbackgroundasacommercialstrategistentailsproductmanagement,productlaunch,licensing,marketing,branding,andconsumerengagement.
ErinCasteel
Erinisaspecialistinservicemanagementandintegration,organizationalgovernance,andcybersecurity.Sheispassionateabouthelpingorganizationstobuild,run,andimproveintegrated,organizationalecosystemsthatenableincreasedagility,resilience,andvelocity.Erinisparticularlyfocusedonsystemsthinking,enterprisearchitecture,andorganizationalculturetosupportdigitaltransformation.Since2006,ErinhascontributedtothedevelopmentofISO/IEC20000,haschaired
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theISO/IECworkinggroup,andhaseditedandcontributedtotheISO/IEC27000seriesofstandardsforinformationsecuritymanagement.
MauricioCorona
DrCoronaisanexperiencedITandITSMprofessional,consideredasoneofthetop25thoughtleadersintechnicalsupportandservicemanagement,andasoneofthetop100influencersinITservicemanagement.Heholds19ITILcertificationsaswellascertificationsinCOBIT,ISO20000and27000,PRINCE2,andMCP.Inadditiontoteachinggraduate-levelcoursesinMexicoandconductingscientificresearchrelatedtodigitaltransformation,DrCoronaisalsoawell-knowninternationalspeaker.In2018hewasappointedasamemberoftheSDIboardastheglobalchiefoftransformation.
TroyDuMoulin
TroyisaleadingITgovernanceandservicemanagementauthoritywithmorethan20years’experienceinexecutiveITservicemanagementtrainingandconsulting.Troyisafrequentpublicspeaker,andisapublishedauthorandcontributortomultipleITSMandLeanITbooks,suchasDefiningITSuccessthroughtheServiceCatalog(2007),ITILV3PlanningtoImplementITServiceManagement(2010)andITILContinualServiceImprovement(2011).Troywasrecentlynamedasoneofthetop25industryinfluencersintechsupport.
PhilipHearsum
PhilipjoinedtheOfficeofGovernmentCommerce(latertobecometheCabinetOffice)in2010.In2013,AXELOSwasbornasapartnershipbetweentheCabinetOfficeandCapita,andPhilipmovedintotheroleheholdstodayasITSMportfoliomanager.PhilipisamemberoftheUKworkinggroupforISO20000.HeholdstheITILV2Manager,V3Expert,PRINCE2Practitioner,RESILIA,M_O_R,ITILPractitionerandISO20000consultantcertifications.HewasalsoinvolvedintheITIL2011update,intheroleofprojectqualityassurance.
LouHunnebeck
AnITILexpertwithmorethan30years’experienceintheserviceindustries,LouisaprincipaladviseratDXCFruition.HerpassionforimprovinghowwedowhatwedohasledhertoITservicemanagementfromabackgroundofprocessconsulting,training,andservicemanagementsystemsconsulting.Devotedtoadvancingtheartandpracticeofservicemanagement,LouservedastheauthorofITILServiceDesign(2011),wasontheITILseniorexaminationpanel,servedonthearchitectteam,andwasco-authorforITILPractitionerGuidance(2016).LouspeaksregularlyatindustrymeetingstospreadthemessageofITSM.
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MargoLeach
MargojoinedAXELOSin2016,bringingdiverseexperienceinnewproductdelivery,productmanagement,anddigitalandbusinesstransformation.Previouslyresponsibleformarket-leadingproductportfoliosandbusiness-widetransformations,MargohassincebeeninstrumentalinthedevelopmentandmanagementofthePPMandITSMportfoliosatAXELOS.Leadingtheentireproductfunction,recentsuccessesincludethereleaseofManagingSuccessfulProjectswithPRINCE2(2017),theongoingevolutionoftheITIL4programme,andthefurtherdevelopmentwithkeypartnersofglobalmarketsforAXELOS.
BarclayRae
BarclayisanexperiencedITSMconsultant,analyst,andwriter.Hehasworkedonapproximately700ITSMprojectsoverthelast25years,andwritesblogsandresearchandwhitepapersonITSMtopicsforavarietyofindustryorganizationsandvendors.BarclayisadirectorofEssentialSMandwasCEOofitSMFUKfrom2015to2018.Heisalsoaco-authoroftheSDISDCcertificationstandards,aparticipantinthecurrentISO/IEC20000revision,andaco-architectoftheITILPractitionerscheme.BarclayisanassociateofSDI(asaconsultantandauditor)andisamemberoftheSDIstrategicadvisoryboard.
StuartRance
Stuartisaconsultant,author,andexpertinITSMandinformationsecuritymanagement.HewasanauthorforITILPractitioner(2016),RESILIA™:CyberResilienceBestPractice(2015),andITILServiceTransition(2011).StuartisanexaminerforRESILIAandITIL,andteachestheseaswellasCISSPandothers.Stuartalsoprovidesconsultingtoorganizationsofallsizes,helpingthemuseideasfromITservicemanagementandinformationsecuritymanagementtoincreasethevaluetheycreateforthemselvesandtheircustomers.
TakashiYagi
TakashiisaservicemanagementprofessionalbasedinJapan,andwasoneofthecoremembersofitSMFJapanthatwasestablishedin2003.HehasbeenproactiveinthepromotionofITservicemanagementbestpracticethroughthetranslationofITILbooks,includingITILV2,ITILV3,andtheITIL2011editions.TakashiisalsoactiveintheISOworld,workingastheconvenerfortheSpecialCommittee40WorkingGroup2inJapan,whichfocusesonthemaintenanceanddevelopmentofISO/IEC20000.Heservedastheco-editorfortherecentlypublishedISO/IEC20000-1.
TheITILstoryline
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KatrinaMacdermid
KatrinaisanITIL4globalambassador,author,andcreatorofaninnovativeintegratedframework,human-centredITILservicedesign.SheisanITILMaster,withasolidbackgroundindesigningandimplementinginnovativeIToperatingmodelswhichputthecustomerexperienceattheheartofallITILprocesses.KatrinahasbeenresponsibleforthesuccessfulimplementationofkeystrategicprogrammesandintegratedservicemanagementinAustralia’slargestandiconicglobalorganizations.Sheisawell-knownconferencespeakeronhuman-centredITILservicedesign.
Projectteam
DavidAtkins Productionmanager
RachidaChekaf Headoftranslations
ClémenceCourt Productandcommunitycoordinator
AdrianCrago-Graham HeadofPMO
RickyElizabeth Brandanddesignmanager
JamesLord Examinationsofficer
MichaelMacgregor Projectmanager
JamesRobertson Examinationsofficer
HeigorSimõesdeFreitas ProductmanagerITSM
TomYoung Projecteditor
Contributors
LiefAndersson,VirginiaAraújo,CraigBennion,JosephCaudle,StefanCronholm,PavelDemin,DomitienDijon,MarieDiRuzza,PhyllisDrucker,JohnEdmonds,DouglasFidler,AlfonsoFigueroa,JamesGander,AnnGerwitz,HannesGöbel,BobGribben,DamianHarris,SimonHarris,DeniseHeinle,MatthewHelm,PeterHero,JessicaHinkal,FrantzHonegger,PeterHubbard,DmitriyIsaychenko,MarcusJackson,StéphaneJoret,MichaelKeeling,ClaudineKoers,ShirleyLacy,AntonLykov,CelisaManly,CasparMiller,JamesMonek,DavidMoskowitz,ChristianNissen,MarkO’Loughlin,TatianaOrlova,BenPage,MitchPautz,TatianaPeftieva,DonkaRaytcheva,NicolaReeves,FrancesScarff,NikolaiSchmidt-Ott,MarkSmalley,ChrisWhitehead,PaulWilkinson,MartinWolf,SarahWoodrow,UllaZeeberg
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