Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.

When IT Fails The Business Fails...


Published on

ProKarma Seminar 8/21/12

Published in: Business, Technology
  • Be the first to comment

When IT Fails The Business Fails...

  1. 1. When IT Fails…The Business Fails…Gene KimAuthor, Visible Ops HandbookProKarma SeminarAugust 20, 2012Session ID: @RealGeneKim,
  2. 2. @RealGeneKim,
  3. 3. Now, More Than Ever… Even in “low-tech industries,” 95% of all capital projects have an IT component… 50% of all capital spending is technology-related Where we need to be… IT is always in the way (again…) We are here… @RealGeneKim,
  4. 4. Comparison Of Turnover For CEOs and CFOs…  When firms with IT-related material weaknesses are compared with the other two groups, there are some startling differences in executive turnover… N=184 Material weakness Material weakness “Clean” vs. (no IT related issues) (with IT related issues) CEO 2.0x higher 8.0x higher* CFO 1.7x higher 3.6x higher CIO 2.2x higher 2.2x higher * These firms also 2.6 less likely to be profitable than “clean” firmsSource: Forthcoming Paper: Richardson, Masli, Watson, Zmud, Sarbanes-Oxley Information TechnologyMaterial Weaknesses And The Disciplining Of The CEO, CFO And CIO @RealGeneKim,
  5. 5. There’s a hidden gas, that we can’t see, taste,touch, smell, and it’s killing CEOs everywhere. It’s called IT. Or more precisely, unplanned work in IT. 6 @RealGeneKim,
  6. 6. == @RealGeneKim,
  7. 7. Where Did The High Performers Come From? @RealGeneKim,
  8. 8. Over Ten Years, We Benchmarked 1500+ ITOrgs @RealGeneKim,
  9. 9. High Performing IT Organizations High performers maintain a posture of compliance  Fewest number of repeat audit findings  One-third amount of audit preparation effort High performers find and fix security breaches faster  5 times more likely to detect breaches by automated control  5 times less likely to have breaches result in a loss event When high performers implement changes…  14 times more changes  One-half the change failure rate  One-quarter the first fix failure rate  10x faster MTTR for Sev 1 outages When high performers manage IT resources…  One-third the amount of unplanned work  8 times more projects and IT services  6 times more applications Source: IT Process Institute, 2008 @RealGeneKim,
  10. 10. Tough Love From Ari Balogh @RealGeneKim,
  11. 11. The Downward Spiral Operations Sees… Dev Sees…  Too many fragile and insecure  More urgent, date-driven projects applications in production put into the queue  Too much time required to restore  Even more fragile code (less service secure) put into production  Too much firefighting and unplanned  More releases have increasingly work “turbulent installs”  Planned project work cannot complete  Release cycles lengthen to amortize “cost of deployments”  Frustrated customers leave  Bigger deployment failures  Market share goes down  More time spent on firefighting  Business misses Wall Street commitments  Ever increasing backlog of work that cold help the business win  Business makes even larger promises to Wall Street  Ever increasing amount of tension between IT Ops, Development, Design… These aren’t ITSM or IT Operations problems… These are business problems! @RealGeneKim,
  12. 12. My Mission Chronicle the Hero’s Journey For IT ("When IT Fails: A Business Novel”) so that everyone can gain a shared understanding of how and why IT fails, so they can fix it 13 @RealGeneKim,
  13. 13. 14 @RealGeneKim,
  14. 14. 15 @RealGeneKim,
  15. 15. 16 @RealGeneKim,
  16. 16. 17 @RealGeneKim,
  17. 17. 18 @RealGeneKim,
  18. 18. 19 @RealGeneKim,
  19. 19. The State Of The Business @RealGeneKim,
  20. 20. Project Phoenix @RealGeneKim,
  21. 21. Day 1: Payroll Outage @RealGeneKim,
  22. 22. @RealGeneKim,
  23. 23. Day 2: PMO Meeting @RealGeneKim,
  24. 24. @RealGeneKim,
  25. 25. Day 3: The SOX-404 Audit Meeting @RealGeneKim,
  26. 26. @RealGeneKim,
  27. 27. @RealGeneKim,
  28. 28. @RealGeneKim,
  29. 29. @RealGeneKim,
  30. 30. My Mission: Figure Out How Break The IT Core Chronic Conflict  Every IT organization is pressured to simultaneously:  Respond more quickly to urgent business needs  Provide stable, secure and predictable IT service Words often used to describe process improvement: “hysterical, irrelevant, bureaucratic, bottleneck, difficult to understand, not aligned with the business, immature, shrill, perpetually focused on irrelevant technical minutiae…” Source: The authors acknowledge Dr. Eliyahu Goldratt, creator of the Theory of Constraints and author of The Goal, has written extensively on the theory and practice of identifying and resolving core, chronic conflicts.31 @RealGeneKim,
  31. 31. 2007: Three Controls Predict 60% OfPerformance To what extent does an organization define, monitor and enforce the following?  Standardized configuration strategy  Process discipline  Controlled access to production systems @RealGeneKim, Source: IT Process Institute, 2008
  32. 32. Visible Ops: Playbook of High Performers The IT Process Institute has been studying high-performing organizations since 1999  What is common to all the high performers?  What is different between them and average and low performers?  How did they become great? Answers have been codified in the Visible Ops Methodology @RealGeneKim,
  33. 33. Visible Ops Security: Linking Security and IT Operations Objectives In 4 Practical Steps Service Design & Management Security Management Service Level Management Capacity Management Availability & Contingency Service Reporting Financial Management Management Control Processes Phase 2 Asset & Configuration Management Phase 3 Release Processes Change Management Supplier Processes Catch and Establish Release Management Resolution Processes Customer Relationship release, find Incident Management Management repeatable Problem Management Supplier Management fragile artifacts build library Automation Phase 1 Electrify fence, Phase 4 modify first Continually improve responseSources: ITPI Visible Ops & IT Infrastructure Library (ITIL) / BS 15000 @RealGeneKim,
  34. 34. Source: John Allspaw @RealGeneKim,
  35. 35. Source: John Allspaw @RealGeneKim,
  36. 36. The First Way:Systems Thinking @RealGeneKim,
  37. 37. The First Way:Systems Thinking(Business) (Customer) @RealGeneKim,
  38. 38. The Second Way:Amplify Feedback Loops @RealGeneKim,
  39. 39. The Third Way:Culture Of Continual Experimentation AndLearning @RealGeneKim,
  40. 40. Good News: It Can Be DoneBad News: You Can’t Do It Alone @RealGeneKim,
  41. 41. Ops @RealGeneKim,
  42. 42. QA And Test Source: Flickr: vandyll @RealGeneKim,
  43. 43. Development @RealGeneKim,
  44. 44. Process And Controls @RealGeneKim,
  45. 45. Product Management And Design Source: Flickr: birdsandanchors @RealGeneKim,
  46. 46. What Does Transformation Feel Like? 47 @RealGeneKim,
  47. 47. Find What’s Most Important First @RealGeneKim,
  48. 48. Quickly Find What Is Different… @RealGeneKim,
  49. 49. Before Something Bad Happens… @RealGeneKim,
  50. 50. Find Risk Early… @RealGeneKim,
  51. 51. Communicate It Effectively To Peers… @RealGeneKim,
  52. 52. Hold People Accountable… @RealGeneKim,
  53. 53. Based On Objective Evidence… @RealGeneKim,
  54. 54. Answer Important Questions… @RealGeneKim,
  55. 55. Recognize Compounding Technical Debt… @RealGeneKim,
  56. 56. That Gets Worse… @RealGeneKim,
  57. 57. And Fixing It… Source: Pingdom @RealGeneKim,
  58. 58. Have What We Need, When We Need It… @RealGeneKim,
  59. 59. Big Things Get Done Quickly… @RealGeneKim,
  60. 60. Ever Increasing Situational Mastery… @RealGeneKim,
  61. 61. Help The Business Win… @RealGeneKim,
  62. 62. With Support From Your Peers… @RealGeneKim,
  63. 63. And Do More With Less Effort… @RealGeneKim,
  64. 64. This Is An Important Problem Operations Sees… Dev Sees…  Fragile applications are prone to  More urgent, date-driven projects failure put into the queue  Long time required to figure out “which  Even more fragile code (less bit got flipped” secure) put into production  Detective control is a salesperson  More releases have increasingly “turbulent installs”  Too much time required to restore service  Release cycles lengthen to amortize “cost of deployments”  Too much firefighting and unplanned work  Failing bigger deployments more difficult to diagnose  Urgent security rework and remediation  Most senior and constrained IT ops resources have less time to  Planned project work cannot complete fix underlying process problems  Frustrated customers leave  Ever increasing backlog of work  Market share goes down that cold help the business win  Business misses Wall Street  Ever increasing amount of commitments tension between IT Ops, Development, Design…  Business makes even larger promises to Wall Street @RealGeneKim,
  65. 65. 66 @RealGeneKim,
  66. 66. @RealGeneKim,
  67. 67. When IT Fails: A Business Novel and The DevOps Cookbook  Coming in Winter 2012/2013  “In the tradition of the best MBA case studies, this book should be mandatory reading for business and IT graduates alike.” Paul Muller, VP Software Marketing, Hewlett- PackardGene Kim, Tripwire founder,  “The greatest IT management book of ourVisible Ops co-author generation.” Branden Williams, CTO Marketing, RSA @RealGeneKim,
  68. 68. When IT Fails: The Novel and The DevOps Cookbook  Our mission is to positively affect the lives of 1 million IT workers by 2017  If you would like the novel excerpts, “Top 10 Things You Needs To Know About DevOps,” and updates on the book:  Sign up at http://itrevolution.comGene Kim, Tripwire founder,Visible Ops co-author  Email  Hand me a business card @RealGeneKim,
  69. 69. If you’d like the slides from today’spresentation…  Text your first name, email address and “68383” to: +1 (858) 598-3980  Or visit: http://www.instantcustomer.c om/go/68383  Or scan this QR Code: 70 @RealGeneKim,