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Developing and Implementing a Rollout Plan

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  • 1. Aligning via IT Service Management April 12, 2007 2:00pm EST, 11:00am PST George Spafford, Principal Consultant Pepperweed Consulting, LLC “ Optimizing The Business Value of IT” www.pepperweed.com
  • 2. Housekeeping
    • Submitting questions to speaker
      • Submit question at any time by using the “Ask a question” section located on lower left-hand side of your console.
      • Questions about presentation content will be answered during 10 minute Q&A session at end of webcast.
    • Technical difficulties?
      • Click on “Help” button
      • Use “Ask a question” interface
  • 3. Main Presentation
  • 4. Agenda
    • An overview of ITIL
    • ITIL and Quality
    • ITIL v3 Update
    • The Value of Service Level Management
      • Services and the Service Catalog
      • Understanding how Goals, Objectives and Services Relate
      • The Need to Negotiate
      • Continuous Improvement
    • For a copy of today’s webcast PPT, please email:
      • George at: [email_address]
      • Kendra at: [email_address]
  • 5. The fundamental objective of ITSM is to deliver services that meet customer requirements And to do this we need timely accurate information
  • 6. What ITIL Represents
    • ITIL is the de facto standard approach towards IT Service Management
    • Yes, it is a collection of best practices but it is far more than that
    • It is about IT delivering quality services that meet the needs of the organization
    • IT services enable business processes that, in turn, enable the business to meet goals
    • It is a fundamental shift from a focus on technology to a focus on customer service and quality
    • The processes may take 1-2 years to implement but 2-3 years of consistent and unrelenting work for the culture to truly change
  • 7. Quality, Alignment and ITSM
    • Quality means conformance to requirements – Phil Cosby
    • This means
      • IT must understand the customer’s requirements
      • IT must meet the customer’s requirements
    • The constant quibbling of business-IT alignment is an indicator of quality problems
    • A culture of ITSM can help begin to address alignment issues by understanding the needs of the business and working together
    • This isn’t a project. It isn’t a fad. It isn’t a collection of books
      • It’s a change of perspective and of culture
  • 8. The ITIL Books
    • Introduction to ITIL
    • Service Support (Operations)
    • Service Delivery (Requirements and Monitoring)
    • Planning to Implement Service Management (Metrics and Process Maturity)
    • Security Management
    • The Business Perspective
    • ICT Infrastructure Management
    • Application Management
    • Small-Scale Implementation
    • Software Asset Management
    • My stack of the first 9 books is five inches thick, weighs 15.6 pounds and cost over $1,000 USD
  • 9. Service Support, Delivery & Security
  • 10. ITIL v3
    • Version three (ITIL v3) set for release on May 30 th
    • Roadshow to begin June 5 th in London
    • You do not need to wait – the core principles are the same
    • Five books arranged as a lifecycle
      • Service Strategy
        • Value nets, adaptive strategies, managing uncertainty, strategy selection
      • Service Design
        • Policies, architecture, models, outsourcing
      • Service Transition
        • Service and Organizational Change, Release, Config, Risk Mgt
      • Service Operation
        • Incident and Problem Management, alerting, new functions
      • Continuous Service Improvement
        • Business cases, Portfolio Alignment, Metric selection
    • This is truly exciting!
  • 11. The Value of Service Level Management “ The goal for SLM is to maintain and improve IT Service quality, through a constant cycle of agreeing , monitoring and reporting upon IT Service achievements and instigation of actions to eradicate poor service – in line with business or cost justification . Through these methods, a better relationship between IT and its Customers can be developed.” -- ITIL Service Delivery Volume
  • 12. Services vs. Applications
    • It’s not just applications that are delivered to the business
    • Need hardware, software, people, documentation, contracts, facilities, etc.
    • These combine and relate to one another in the form of services
    • Everything in ITIL is a Configuration Item (CI)
      • Hardware, software, people, facilities, services , data records, documentation, contracts, etc.
  • 13. But what should IT offer and why?
  • 14. A System Has a Goal A system is a collection of functional units assembled to attain a goal. If there isn’t a goal, then there isn’t a system!
  • 15. The need is to align functional area objectives with the goals of the organization and IT services with the needs of the functional areas
  • 16. Unoptimized Vectors
  • 17. Perfect Alignment
  • 18. Business Functional Area Objectives Must Align for Optimal Productivity
  • 19. Groups in IT Must Align As Well One big challenge for some organizations is the sub-optimization that results when “shadow IT” groups are allowed to flourish outside of the formal IT structure.
  • 20. Goal-to-Objective Mapping
    • Use the Ishikawa Cause and Effect Diagram
    • Start with the Goal(s) and work towards Functional Area Objectives (FAOs)
    • How does each area support the goal with their objectives?
    • How do teams support the objectives?
    • What services does IT provision to enable the functional areas and teams?
    • Look for mismatches in Causality? Ask “Why” repeatedly if need be
    • Visio has a template under “Business Process”
    • It is the thought process that matters the most – not the graphic!!!!!!!!!!!!!
    • Only go as deep as you need to establish causal relationships
  • 21. Illustrative Goal to Objective Map
  • 22. The intent of Goal-to-Objective mapping is to understand and document relationships plus identify and ultimately resolve discrepancies. This map is ideal for identifying IT services, existing or needed, as well.
  • 23. Service Catalog
    • The Service Catalog tracks the services provided to the business
    • Initially just a list of what all is done (often not everything is known before the effort)
    • Akin to a laundry list or menu of what is offered, associated costs, service levels, etc.
    • Answers the Business Questions of: “What do you do for us?” and/or “What do you offer?”
    • Answers IT’s Questions of: “What do we offer?” or “Do we offer this specific service they are asking about?”
    • What outsourcers have that internal IT frequently lacks
  • 24. Service Level Agreements
    • Business Needs Drive
      • IT Service Requirements, which Drive
        • Component Configuration Item (CI) Requirements
    • Business Needs
      • Are Identified In Service Level Requirements (SLRs)
        • SLRs must then be reviewed and discussed within IT and Vendors – “What can we really do and what are the costs?”
      • The Service Level Manager (role) must negotiate the Service Level Agreements (SLAs) with the business
        • The SLM must not simply roll over and agree to everything always
        • Requirements and the cost to meet them must make business sense!!
          • None of us would spend $1,000 to make $10 with some degree of uncertainty
        • The SLM must be a skilled negotiator
  • 25. SLA Components
    • Want as few SLAs as possible
    • Services in the Service Catalog should be covered (eventually)
      • Per the first bullet, you do not need one SLA for each service but ideally multiple services covered by a relatively few number of SLAs
    • Simplicity is very important
    • Wording should be understandable for everyone
    • Can have SLAs and separate Service Specification Sheets that get into the details
    • Covers things like:
      • Business Impact
      • End user locations
      • Availability
      • Performance
      • Capacity
      • Incident Management
      • Security
      • Data retention
      • Regulatory compliance requirements
      • Agreed upon monitoring methods
      • Review schedule
      • Associated costs (chargeback model if appropriate)
  • 26. SLM Activities
    • Negotiate SLAs for new or changed services
    • Review performance
      • Service breaches
      • Near breaches
    • Negotiate, Set, or Renew
      • Operating Level Agreements (OLAs) [internal groups]
      • Underpinning contracts (UCs) [vendors / third parties]
    • Launch Service Improvement Programs (SIPs) as needed
    • Conduct Business Review meetings (Quarterly for example)
      • How did we do?
      • What could we do better?
      • By the way, here are some things we are doing … (marketing!)
    • How can we improve the four E’s?
      • Efficiency, Effectiveness, Economy or Equality
  • 27. Continuous Improvement Is Key
    • Like any process, you must pick a place to start and actually begin
      • 70% solutions
    • Understand what you need and pursue that
    • Refine services as processes mature
    • It’s a journey
      • Your organizations will evolve
      • Your service offerings must evolve to support the needs of the business
    * Adapted from ITIL Service Support Graphic
  • 28. Thank you for the privilege of facilitating this webcast George Spafford Principal Consultant Pepperweed Consulting Optimizing the Value of IT [email_address] http://www.pepperweed.com Daily News Archive and Subscription Instructions http://www.spaffordconsulting.com/dailynews.html
  • 29. Questions?
  • 30. Thank you for attending If you have any further questions, e-mail [email_address] For future ITSM Watch Webcasts, visit www.jupiterwebcasts.com/itsm