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Beyond Customer Centricity - Remodeling Service Management

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Customer-centricity drives service management guidance because obtained value is why customers request and keep things. But as one result, the evolution of the guidance itself, such as with ITIL, struggles with justifications of what to include or exclude. In this piece, we take a look at ending that uncertainty.

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Beyond Customer Centricity - Remodeling Service Management

  1. 1. Beyond Customer Centricity Back to Basics with Service Management
  2. 2. Services are resources intended for a user to conduct the user’s own intent. Managing a resource is done, of course, for the benefit of a user. IT Service is one type of service, and therefore the management of IT Service is a type of resource management. It follows, then, that IT Service Management (ITSM) has been evolving under the perspective and priority of customer centricity. That attention is based on what the customer recognizes as “value”. However, the fact is, one service, when used by different customers, can yield significantly different perceived value from one customer to the next. And, the more complex the customer is, the more “value” is interpreted as eventual impact on opportunity, instead of as actual current effectiveness on intent. INTRO OVERVIEW
  3. 3. In reaction to that, resources are deemed to have failed if the current experience of their usage is a perceived threat to opportunity. That viewpoint is nearly always the basis of decisions on how to deal with behaviors of a service. It is not an “incorrect” perspective to have for business concerns. But its natural predisposition is to allow mostly a combination of optimism (before the fact) and aggressive but reactive risk containment (after the fact) -- an influence on management practice standards that explains actual adoption of practice to date. Despite important changes over the years in how ITIL organizes “best practices” guidance for ITSM, the processes most often adopted have consistently been, by a wide margin, about managing incidents, problems and changes – that is, about what’s wrong, what might be wrong, and what could go wrong. The remainder of ITIL’s management processes – roughly ¾ of the set – remain on a plateau of far lower adoption rates. INTRO OVERVIEW (Con’d.)
  4. 4. Again, services are resources for a user to conduct the user’s own intent. Managing a resource is done for the benefit of a user. But what gets done by management? The business management of service utilization comprises the acquisition and further disposition of services as resources retained versus recognized value. Resource providers are acutely aware of that. But resource management is not merely about “relative” value to the user. Resources are inherently valuable to the extent that we know how and when they will make a difference that we want them to make. The prime objective of managing any resource is to make it productive when it is applied. The point of services is that they are offered with a predefined benefit. ITSM therefore must continue to evolve by retaining focus, per that objective, on how any IT service can have value at each stage of its lifecycle from conception to realization, as compared continually to current business needs. The probability of that value is rooted in the production of the service itself, making that production the central issue to define and articulate as the subject matter of managing the service. INTRO OVERVIEW (Con’d.)
  5. 5. Business Alignment
  6. 6. Resource Value Management Focus Concern Business Manager Utilization impact versus plan Probability of impact Obtain and employ Service Manager Predefined result Assurance of designed capability Produce and provide Value Matrix of Service as a Resource ©2018 Malcolm Ryder / Archestra Research
  7. 7. AS NEEDED AS REQUIREDAS IS WHAT MATTERS The desired impact, fitness-to- purpose, and sustainability of what is chosen to use; with timeliness vs. priorities that may change. The terms on which the selection and use are practically possible and acceptable, for the expected affected parties. The current state reality of utilities, facilities and systems: what gets used, how it is available, and what keeps it working. PROBLEM Unrecognized, chronic, or unattended lack of alignment between As Is, As Needed and As Required. In theory, through pre-fabrication, services simplify and assure the business user of getting “aligned” capability. In fact, usually for customization or adaptation goals, businesses try to control aspects of service, in ways that are counteractive or insufficient for retaining alignment. As a correction, much of what currently appears to be new solutions, innovations or revolutions in I.T. practices are pursuing the business adjustment to the need for prioritizing coherent production.
  8. 8. AS NEEDED AS REQUIREDAS IS Design Service Strategy: Responsibilities for Business Alignment ©2018 Malcolm Ryder / Archestra Research
  9. 9. AS NEEDED AS REQUIREDAS IS Design ACCOUNTABILITY TO BUSINESS CAPABILITY Continuity and Reliability in current circumstances, from: • Methods • Policies • Constraints Value, risks and impacts rendered through: • Features • Tolerances • Specifications • Objectives • Models • Limits Relevance and Applicability, via: ©2018 Malcolm Ryder / Archestra Research
  10. 10. Service Definition
  11. 11. OPERATIONAL ELEMENTS OF SERVICE TECHNOLOGY as an operational element ACTIVITY as an operational element ORGANIZATIONS as an operational element Generally recognized as Automation Generally recognized as Process Generally recognized as Specialty Labor Every “service” is an (a.) ongoing operation having (b.) recognized outputs that are (c.) available on demand under known and agreed terms. An “operation” is a controlled active function that creates a measurable intended result. For obtaining a ready-to-use service, several different types of elements are used individually or in combinations to make up an operation. Example of enabled service: Computing ShippingTeaching As seen here, I.T. is not the only type of element, and various types of service can be enabled. A service operation can be entirely composed of I.T. , or can include some I.T., or include none. Regardless, the same logic of construction applies to composing an operation from any mix of element types...
  12. 12. CONSTRUCTING SERVICE OPERATION TECHNOLOGY e.g. Automation ACTIVITY e.g. Process ORGANIZATIONS e.g. Specialty Labor The same persistently distinct structural factors are found in the underlying operation of any chosen service. For example, when designed, the operational integrity of any provided service always includes these factors: • systematic procedures (e.g. tasks), • a known platform for that execution (e.g. environment or facility), • and predetermined components whose interactions compose capability (functions). Those structural factors apply to any type of operational element(s) that gets used as a service, such as: Unfortunately, as each structural factor (procedure, platform, component, etc.) is essentially a variable, most businesses typically treat them (before selection) as “user options” -- and not enough as existing “dependencies” of the elements of operation. In contrast, because the variations of a service’s behavior are predisposed by its underlying operation’s construction, management of a service must logically relate to how the service is produced from those dependencies.
  13. 13. As part of business strategy, businesses have been coached to manage for “delivery” of service, but delivery is simply (no more no less) a status of a business expectation about fulfillment of a request or contract. This makes sense in the perspective of being “customer centric”; but the proper focus of service management, which must align the As Is to the As Needed, is production. Obviously, use of the service must start with a clear and defensible argument for service adoption, which includes the way that service utilization fits into the larger context of supporting business performance. But this adoption is a responsibility of business management, regardless of the particular service. Service management is responsible for the support and awareness of how the given service will benefit the business in real time. After all, even a highly successful service may be discontinued if the business performance or business strategy changes. The primary responsibility of service management does not change if the business changes. “Service management” must recognize, understand, and guide: • how production instantiates … • the variable factors of … • the operational construction of the defined service. PRODUCTION-CENTRIC MANAGEMENT
  14. 14. Hierarchy of variable factors in the construction of the service operation Demand Interface Operational Outputs Process of Operation System of Process Infrastructure of System Deployment of Infrastructure Component of Deployment Development of Component Sourcing of Development Each factor is independently variable, with its details deciding what form of it is in use, when, where and how. Whatever those results are, the given factor is then an underpinning of the one above it, being both an enabler and a constraint. Even when individual factors go through changes of their details, factors do not merge or replace each other, and the logic of the hierarchy does not change. Because the factors will influence each other, those influences must be visible and intentional in order to create sustainable integrity in the operation provided as an on-demand service. An increasing emphasis on producing relevant, sustainable and compatible factors in meaningful timeframes accounts for why Lean, DevOps, Agile, and most other newer “build” practices are so important and notably foundational, not just “integrations”. ©2018 Malcolm Ryder / Archestra Research
  15. 15. The representation of IT Service production is included in what follows. This representation emphasizes its accountability to the logically distinct factors of operational construction that apply to any service (whether I.T. service or not). A hierarchy of factors expresses dependencies in the underlying operation of a provided service. In the hierarchy, each factor persists as a distinct factor even if its immediate details go through modifications. There is tension between why modifications occur and what results are acceptable. SERVICE PRODUCTION Management & Governance Production & Performance Variable Service Dependencies Demand Interface Operational Outputs Catalog Support On any level in the hierarchy, the key factors have corresponding factors in management and in production. Operational construction sets the POV used by management on production. To represent correspondences of management and production at a given level, we have horizontally positioned their respective factors approximate to the operational construction factors at that level.
  16. 16. Management & Governance Production & Performance Nine Variable Service Dependencies Demand Interface Operational Outputs Process of Operation System of Process Infrastructure of System Deployment of Infrastructure Component of Deployment Development of Component Sourcing of Development Catalog Capability Capacity Availability Implementation Quality Resource Maintenance Support Architecture Change Release Configuration Asset Project Security ©2018 Malcolm Ryder / Archestra Research
  17. 17. Management itself is a distinct business function, responsible for bringing a higher probability of desired correspondence between probable cause and actual effect. The more that “cause” is variable, the more management needs to be able to determine and affect the “internal” logic that applies to operations. The overall practice model covered above is that Production should be Design-centered, and that Management should be Production-centered. This model accounts for the logical evolution of the business (User’s) understanding of how services as resources should be enablers of business capability and agility. ITSM’s continuing evolution as practice is not about “increasing the value” of service to the customer. Instead it is about increasing the assurance of the service’s predefined offer of effect, which in turn makes the service easier for the business to recognize, assess, select, and deploy according to plans and needs. FINAL OVERVIEW
  18. 18. Archestra notebooks compile and organize decades of in-the-field empirical findings. The notes offer explanations of why things are included, excluded, or can happen in certain ways or to certain effects. The descriptions are determined mainly from the perspective of strategy and architecture. They comment on, and navigate between, the motives and potentials that predetermine the decisions and shapes of activity as discussed in the notes. As ongoing research, all notebooks are subject to change. ©2018 Malcolm Ryder / Archestra Research ©2018 Malcolm Ryder / Archestra Research www.archestra.com mryder@archestra.com

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