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Service Level Management
All course material is copyright. It is forbidden to use this material other than for study purposes. Display for internal use only. Approval for commercial purposes will be granted under contractual agreementAll course material is copyright. It is forbidden to use this material other than for study purposes. Display for internal use only. Approval for commercial purposes will be granted under contractual agreement
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Introductions
Your presenter
<<YOUR DETAILS>>
You
Your role(s)
Your expectations
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Program
09.00Start 10.30Morning tea / coffee 12.30Lunch 15.00 Afternoon tea / coffee 17.00End
Note.. There is enough information here to conduct a full day workshop on Service Level Management. If you wish to do a short presentation keep only slides; 1, 7-9, 12-15, 17-21, 33, 35, 38, 60-64
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Day Objectives
Understanding of the Service Level Management process and its activities.
Good understanding of the relationships with other IT Service Management processes.
Ability to execute the Service Level Management activities.
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Overview Service ManagementOverview Service Management
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Why Service Management?
Business more and more dependent on IT Complexity of technology increases Customers demand more Environment becomes more competitive Focus on controlling costs of IT Low customer satisfaction ...
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Service Management= The Objective Tree =
QualityFlexibilityCost management
How
/ What ?
ORGANIZATIONORGANIZATION
BUSINESS PROCESSESBUSINESS PROCESSES
IT SERVICE PROVISIONIT SERVICE PROVISION
SERVICE MANAGEMENTSERVICE MANAGEMENT
Why!
effective
efficient
organizationorganization
effective
efficient
IT service provisionIT service provision
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The Functionally Oriented Organization
the lines decidethe lines decide
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The Process Driven Organization
the processes decidethe processes decideGOALGOAL
FEEDBACKFEEDBACK
ACTIVITIESACTIVITIES RESULTRESULT
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IT Service Management (ITSM) Focus
OrganizationOrganization
ProcessProcess
PeoplePeople
TechnologyTechnology
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Questions?
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ITIL Service Management
Service Level Management
FinancialManagement
for IT services
Capacity Management
IT Service
ContinuityManagement
IncidentManagement Problem Management
Change Management
Configuration Management
Release Management
ITInfrastructure
ITInfrastructure
security
Service Desk
Availability Management
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Service Level ManagementService Level Management
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Service Level Management
is the process of maintaining and gradually improving business aligned IT service quality,
through a constant cycle of agreeing, monitoring, reporting and reviewing IT service achievements
and through instigating actions to eradicate unacceptable levels of service
Service Level Management GoalService Level Management Goal
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Sup
plie
rsS
uppl
iers
Cus
tom
ers
Cus
tom
ers
Service Level ManagementService Level ManagementUnderpinning
ContractsService Level
Agreement
Change ManagementChange Management Problem ManagementProblem Management
Configuration ManagementConfiguration Management
Release ManagementRelease Management
Security ManagementSecurity Management
Capacity ManagementCapacity Management
It Service Continuity ManagementIt Service Continuity Management
Availability ManagementAvailability Management
Financial ManagementFinancial Management
Core Processes
(apps, hardware, tech support, networks)
Service DeskService Desk
(Incident (Incident
Management)Management)
SLM, The Customer, The Suppliers
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Service Level Management and IT
System System Management Management DevelopmentDevelopment
System System Management Management DevelopmentDevelopment
SSUUPPPPLLIIEERRSS
SSUUPPPPLLIIEERRSS
SolutionSolutionIntegrationIntegrationSolutionSolution
IntegrationIntegration
Operations Operations andand
SupportSupport
Operations Operations andand
SupportSupport
Change ManagementChange ManagementChange ManagementChange Management
Service Level ManagementService Level ManagementService Level ManagementService Level Management
SPA
SLA
Users(Business)
Account ManagementAccount ManagementAccount ManagementAccount Management
Service PlanningService PlanningService PlanningService Planning
Align SystemManagement Strategy
AnalyzeBusinessNeeds
DesignSolution
Build / Buy /IntegrateSolution
Implement andRoll-outSolution
Operate / Run Solutions
Support / MaintainSolutions
Scope of IT Service Offerings
PPAARRTTNNEERRSS
PPAARRTTNNEERRSS
UC
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Terminology within SLM
Service Level Requirements, Service Catalogue, Service Level Agreement, Service Level Reporting and Service Improvement program.
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Terminology (I)
SLR = Service Level Requirements– detailed recording of the customers’ needs– blueprint for defining, adapting and revising of services
Service Spec Sheets = Service Specifications– connection between functionality (externally / customer focussed)
and technical (internally / IT organization focussed)
Service Catalogue– detailed survey of available services– detailed survey of available service levels– derived from the Service Spec Sheets, but written in
“customer terminology”
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Terminology (II)
SLA = Service Level Agreement– the written agreement between the provider and user of the IT
services
Service Level Achievements– the Service Levels that have to be realised– measuring values indicating whether the SLA has been met
SIP = Service Improvement program / Plan– actions, phases and delivery dates for improvement of a
service– Part of the Service Level Agreement
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Terminology (III)
SPA = Service Provision Agreement OLA = Operational Level Agreement– a written agreement with another internal IT
department: availability of the network availability of print servers business hours of The Service Desk …
UC = Underpinning Contract– a written agreement with an external IT supplier:
e.g. Telecomms provider / desktop support agent outsourced hardware maintenance
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SLM Activities
Identification– analysing current services– recording the current service provision in a Service
Catalogue.
Definition– matching & customizing with the customer of the right service
provision against the right costs: Service Catalogue demands of the customer (Service Level Requirements).
Agreement– defining and signing of an SLA.
substantiate the SLA with SPAs / OLAs and Underpinning Contracts
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Activities: match & customize (I)
Match
&
Customize
Match
&
Customize
SLASLA
steersteer
why how
guardingguarding
reporting reporting
Input
from all
processes
Input
from all
processes
CustomerCustomer
DemandDemand Service Catalogue
Price List
Service Catalogue
Price List
IT service provisionIT service provision
Input
from
3rd parties
Input
from
3rd parties
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Activities: match & customize (II)
why
guarding
reporting
Demand study by the customer:SLR (Service Level Requirements)
blue print for SLAEffectiveness & efficiency:
use of IT servicesimportance of IT services
Budget study:What are the costs if we do not choose a
particular service? (Can we afford it?)
budgeting
CustomerCustomer
DemandDemandsteer
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Activities: match & customize (III)
steer
why
guarding
reporting
steer:influence on IT service provisionchoices can be made
whyEffectiveness:
the added value of IT service provision
guardingreportingthe course of IT service provision
CustomerCustomer
DemandDemand
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Activities: match & customize (IV)
steer
how
guarding
reporting
Service Catalogue• Inventory of the current service
provision: (Service Spec Sheets)
• What are the characteristics of the Infrastructure?
• What customers and customer profiles?
• SPA / OLA: what agreements exist with internal IT parties?
• Underpinning ContractUnderpinning Contract: what agreements exist with external IT parties?
Service Catalogue
Price List
Service Catalogue
Price List
IT service provisionIT service provision
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Activities: match & customize (V)
steer
how
guarding
reporting
steeroffer choicesdefining the course of IT
service provision
howefficiencysafeguard the processesSIP – SQP – SPA / OLA –
Underpinning Contract
guardingthe course of IT service
provision
Service Catalogue
Price List
Service Catalogue
Price List
IT service provisionIT service provision
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Activities: match & customize (VI)
Match
&
Customize
Match
&
Customize
SLASLA
steersteer
why how
Match:• Demand versus possibilities
Customize = customer decides:• balance between demand and
supply• balance between budget and
price
SLA• written agreement
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Activities: match & customize (VII)
Match&
Customize
Match&
Customize
SLASLA
steersteer
why how
guardingguarding
reporting reporting
Input from all
processes
Input from all
processes
CustomerCustomer
DemandDemand Service CataloguePrice List
Service CataloguePrice List
IT service provisionIT service provision
Input from
3rd parties
Input from
3rd parties
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Activities: SLM Flowchart
IDENTIFY demand
DEFINEinternal & external
CONTRACT - negotiate - draft - adjust - conclude
MONITORguarding
Service Levels
REPORT
EVALUATE
Service LevelRequirements
Service Spec Sheets
Service Quality Plan Service
Catalogue
Service LevelAgreement
Operational LevelAgreement
UnderpinningContract
Service LevelAchievement
Service Level Reports
ServiceImprovement
Plan
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PDC
A
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Theory and Principles
The Challenge
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SLM Activities
Demand for
Service(s)
SLA proposal
Service Level
Agreement
SLA reports
Service Catalogue
SLA changes
SLA Differ-
ences
Guarding/ reporting
Establishing SLA
Translate wishes
Demand for new
Service(s)
Service development
Demands wishes
Planning Service
Measure- ments
Possi- bilities
Improvement proposals
Effects realisticness SLA-
proposal Reachability
new Service(s)
IT service
Customer
Regular meeting
SLA-
negotiations Service
evaluation
IT Service deliverer
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Service Level Agreements
Types Elements of SLA Key steps
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Service Elements in SLA’s
To be effective, a Service Level Agreement must incorporate two sets of elements: service elements and management elements.
The service elements clarify services by communicating such things as:
– the services provided (and perhaps certain services not provided, if customers might reasonably assume the availability of such services)
– conditions of service availability– service standards, such as the timeframes within which services
will be provided– the responsibilities of both parties– cost vs. service tradeoffs– escalation procedures
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Management Elements in SLA’s
The management elements focus on such things as:
– How service effectiveness will be tracked – How information about service effectiveness will be
reported and addressed– How service-related disagreements will be resolved– How the parties will review and revise the agreement – Pricing and charging– Service Levels
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types of services: – functions, applications, important transactions, etc.
business hours of The Service Desk availability of IT service provision charging of IT service provision change procedure(s) contingency / continuity procedure(s) expected increase / decrease of IT service provision restrictions in IT service provision training level of customers / users reporting
Service Level Management= Contents of the SLA =Service Level Management= Contents of the SLA =
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Service Catalogue: Points of Attention (I)
Service Catalogue not up-to-date:– Publishes a service that isn’t provided anymore– A new service isn’t in the catalogue yet
Service Catalogue is incorrect– Service descriptions do not represent services delivered– Responsibilities not clearly defined– Customer isn’t able to clarify needs – Catalogue doesn’t say what the limitations are of large or
small quantities.
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Service Catalogue: Points of Attention (II)
Customer wants to have non-standard, non-tested products (looks cheaper)
Quality of Service Catalogue – No version control with the Service Catalogue– Tactical agreements are not translated to the operational
level.– Scope and scale isn’t clear (scope/scale).
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Key Steps in Establishing a Service Level Agreement
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Step 1:
Gather background informationBoth the customer and the service provider need to start by gathering information so that each has a solid basis from which to negotiate.
Before eliciting commitments from their service provider, customers should carefully review and clarify their service needs and priorities.
Before making any commitments to customers, service providers should examine their service history and determine the level of service they can realistically provide. In addition, service providers should assess customer satisfaction to clearly understand customer concerns and establish a baseline for assessing service improvements.
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Ensure agreement about the agreementThe two parties to an agreement often have different views about the role of the SLA and what it can realistically accomplish. Both sets of views may be valid, yet sufficiently different as to cause a breakdown in SLA negotiations.
Before any SLA development work is done, it is advisable for the two parties to hold an open discussion to ensure that they have a basic level of agreement about the agreement. If they don't – and until they do – any further SLA effort may prove
futile.
This is where a strategic alignment workshop proves its worth.
Step 2:
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Step 3
Establish ground rules for working togetherIn this critical, but often overlooked, step the SLA developers (those assigned to negotiate the SLA) focus not on the agreement, but on the process by which they will work together to create the agreement.
Issues to be discussed include the division of responsibility for development tasks, scheduling issues and constraints, and concerns regarding potential impediments.
In addition, the developers can benefit greatly by discussing their communication styles and preferences. By identifying similarities and differences right up front, they will be in an excellent position to minimize conflict.
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Step 4:
Develop the agreementThis is one step in the process of establishing an SLA; it's not the entire process. In this step, the two parties create a structure for the SLA document and then discuss, debate, negotiate and, over time, reach agreement about the contents of the agreement.
In doing so, they may each solicit assistance, input or feedback from others in their own organization.
The duration of this step typically varies from several days to several months, depending on the developers' previous experience with SLAs, their familiarity with the key elements of an SLA, the demands of their other responsibilities, and the state of the relationship between the two organizations.
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Step 5:
Generate buy-inThe result of Step 4 is a draft of an agreement, not a completed agreement.
Before implementing an SLA, all members of both parties who have a stake in, or responsibility for, the success of the agreement should have an opportunity to review the draft, raise questions and offer suggestions.
Using this feedback, the developers can conduct further negotiations, gain the necessary approvals and finalise the document. In addition to generating buy-in, this step improves the quality of the final document.
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Step 6:
Complete pre-implementation tasksThis step entails the identification and completion of tasks that must precede SLA implementation.
Such tasks might include, developing tracking mechanisms, establishing reporting processes, developing procedures for carrying out stated responsibilities, communicating expectations to staff, providing pertinent training.
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Step 7:
Implement and manage the agreement– An agreement that is not managed is likely to fail upon
implementation.
Management responsibilities– Point of contact for problems– Customer relationship management– Service reviews
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Questions?
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Essential elements for SLM (I)
Subjects and Languages
Applicable Guidelines
SLA Structure
Don’t be too ambitious Consult with the user Use ITSM / ITIL format Examine supporting contracts Start with a pilot SLA Interface to a pricing system Part of SIP (Service Improvement Program)
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Essential Elements for SLM (II)
SLAs should be compact documents; a description of the agreements between the customer and the service provider shouldn’t take more than is required.
SLAs should give the IT service provider the freedom to alter the content of their services; only the scope and boundaries should be pinned down in an SLA. (The customer and IT service provider agree upon the outcome of the services, not the content)
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Service Improvement program (I)
Service improvement program: Ongoing tuning of KPI’s, Short time goal level … on maturity scale (depends on
organization). Can focus on:
– User training– System testing – documentation
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ServiceLevel Scan
SLA andServiceCatalogue
Gaps/IssuesGaps/Issues
GAPGAPAnalysesAnalyses
Actions & Actions & ConsequencesConsequences
Benefits andBenefits andOpportunitiesOpportunities
Based uponcurrent SLA,procedures,service catalogs
SIP
Service Improvement program (II)
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Capturing Data for SLA’s
Service Level Reporting
Metrics
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Service Level Reporting
Audience Types of Reports Frequency of Reports
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Metrics
Availability Performance Reliability Recoverability
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Templates
Internal SLA template Sample Customer Satisfaction Survey Sample Reporting Schedule Sample Service Catalogue Selected Vendors
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Structure: Service Level Reporting
Structure SLA-reports 1. Introduction
1.1 Distribution list1.2 Identification of the SLA1.3 Customer1.4 Report period1.5 Important conclusions
2. The actual report
2.1 Metrics from the SLA per quality attribute2.2 Achieved values (measurements current report period)2.3 Norm- measurements and indications of previous periods2.4 Tariffs
Annex (-es) with detailed measurements (optional)
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Structure: Service Level Agreement
Structure: Service Level Agreement 1. Parties, time frame, signature for agreement2. Definition of IT services
2.1 scope domain/configuration2.2 Overview of services
2.3 Overview of service usage2.4 Tariff
3. Service agreements
3.1 Service hours3.2 Incidents, queries and changes3.3 Service levels3.4 bounderies on growth and usage3.5 Reports, meetings and invoicing
4. SLA maintenance
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Structure of Service description- Objective- Scope domain/configuration- Service components- Usage / tariffs- Service agreements- Service Quality- Boundaries to usage and growth
Structure Service Catalogue 1. Introduction
1.1 Objective of the Service Catalogue1.2 Scope and unity1.3 Maintainance of version history
2. List and unity of services2.1 Positioning of the IT service delivery2.2 List of services2.3 Unity between the services
3. Definition of the services
3.1 General3.2 Definitions3.3 Service ‘A’3.4 Service ‘B’3.5 …
How to set up a Service Catalogue
4. General agreements around service delivery4.1 Introduction / general comments4.2 Reports4.3 Meetings4.4 Invoicing
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Questions?
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SLM Hints and Tips (I)
ServiceService Level Agreement Level Agreement Formal contractual arrangement specifying the required service levels and the
expected quality of service to be delivered Mutual responsibilities of the customer and provider
The process of Service The process of Service Level Level ManagementManagement Monitor and manage service levels Review agreements with internal and external service suppliers
The level of service The level of service Captured and base-lined, at least annually
The service improvement program should be monitored regularly and appropriate action taken to correct any under-achievements
The foundations for service management must be put in place very early.
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Service Level Management
= Costs, Points of Attention, Advantages =
Costs– P ersonnel
writing and managing SLM documents
– A ccommodation also for physical storage of SLM documents, …
– S oftware writing SLM documents,
– H ardware Service Catalogue, SLM reports, …
– E ducation ITIL Master Class / ITSM Practitioner, communication training, …
– P rocedures designing & managing Service Level Management
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Service Level Management
= Costs, Points of Attention, Advantages =
Points of Attention– change in culture: danger of bypassing of SLAs.
– expressing the customer’s demand in measurable values and
consequent costs is difficult.
– expectations are too high
– expectations and/or the agreements are too ambitious
– management commitment
– follow the 5 stages of management!(do not immediately start writing the SLA, but first take care of a thorough
inventory of demand, a sound design, a SIP, …)
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Service Level Management
= Costs, Points of Attention, Advantages =
Advantages– insight into IT service provision
IT services become measurable
optimal balance possible of quality and the consequent
costs
possible savings become clear
– increase in productivity: good working morale of IT personnel
positive attitude of the customer towards IT personnel
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Questions?
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Service Level Management = Functionally Oriented vs. Process Driven =
mainframemainframe networknetwork pc-lanpc-lan
Service Level ManagementService Level ManagementThe Art of
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Service Level Management:Q & A
??is the process of maintaining and gradually improving
business aligned IT service quality,
through a constant cycle of agreeing, monitoring, reporting
and reviewing IT service achievements
and through instigating actions
to eradicate unacceptable levels of service
Service Level ManagementService Level Management