1) Managed services involve a service provider taking over day-to-day management responsibilities from a client to improve operations. 2) Successful managed services require a long-term perspective as there are no quick profits; costs must be offset over many years under a service level agreement. 3) Outsourcing operations does not necessarily reduce operating expenses and outsourced problems may grow larger without proper management. Dimensions like infrastructure, environment, culture influence operations costs.

1. Basic Truths and Principles
Behind
The service Business
Operations and maintenance
People

2. Corporate vs. human life
Corporates are efficient in money making and
creating blooming economy. Economy has a
side effect to partially satisfy the human needs,
although not in human but corporate terms. This
is acceptable as long as corporates can
continuously grow and create new wealth.
Corporate Human
– Basic need: money making – Basic need: survival
– Drivers: – Drivers:
1. Monetary Profitability 1. Drinkable water
2. Efficiency 2. Nourishment
3. Products 3. Sleep
4. Production 4. Clothing
5. Marketing 5. Shelter
6. Sales 6. Reproduction
7. Competition 7. Security

3. Effect of corporate efficiency
Corporates drive efficiency through any means possible. In
the long term this means that more and more work is
automised or made with the aid of machines.
People are needed less and less to produce the goods and
services for the growing population leading increasing
unemployment rate.
Nowadays one employee feeds about three persons in
developed countries. New technologies strengthen this
phenomenon.
The unemployed have no money to consume. Thus the
drive for corporate efficiency is shrinking the potential
market size, leads to political instability and ruins the
economy.
In the long run the only way to survive is for corporates to
change their operating premiss – and related drives.

4. Future of corporate life
As unlimited growth is not possible for corporates, at some point they become
not beneficial, irrelevant or even malevolent to human life. Only corporates
capable of adapting to stable global economy and increased control
(legislation, consumer awareness etc.) will survive.
As corporate life actually exists to enable human life, the corporate drivers
need to be adjusted to address issues threatening the human life:
overpopulation, pollution, energy issues, climate change, preservation of
nature etc.
New Corporate Human
– Basic need: survival – Basic need: survival
– Drivers: – Drivers:
1. Sustainability 1. Drinkable water
2. Usefulness 2. Nourishment
3. Materials, water and energy 3. Sleep
conservation 4. Clothing
4. Products 5. Shelter
5. Services 6. Reproduction
6. Processes 7. Security
7. Partnering

5. About service business
And people in it

6. Summary of Gerstner‟s Lessons Learned
Nokia and IBM Confidential | IBM Business Consulting Services © Copyright IBM Corporation 2006
“I have worked in services companies and product
companies. I will state unequivocally that services businesses
are much more difficult to manage…the skills required in
managing services processes are very different …the
business model is different. The economics are entirely
different.
This is the kind of capability you simply can’t acquire. The bet
you’re really making is on your own commitment to invest
both the years and capital, then build the experience and
discipline it takes to succeed”
Note: Highlights in red made by author of this document
Louis V. Gerstner, (chairman of the board of IBM Corporation from April 1993 until his retirement in
December 2002 )
“Who Says Elephants Can’t Dance”

7. Business Model
Service Business can be described generally by a
pyramid and four basic principles; violating these
principles violates the business.
1st Principle: Business
2nd Principle:
Customer S atisfaction, Business is not stable,
Achievement and But swings here and there
Employee S atisfaction In the wind of external factors;
Form the basis of healthy Thus the broader the base
Business T more S
he ecure Business
Customer Employee
Satisfaction Satisfaction
3rd Principle: 4th Principle:
T Higher the Business
he As the volume of the pyramid
T Larger Basis is needed
he Represents the effort needed,
T support it
o Achievement Minimizing the effort affects
T dimensions of the pyramid.
he
Profitable Business requires: Optimised Size of the Base, Proactive Planning
and Quick Response

8. Employee satisfaction
Top talent leave an organization when they‟re badly managed and the
organization is confusing and uninspiring. If the company wants to
keep the best people:
1. It needs to become an organization where:
• Managers are hired for their ability to manage well.
• Managers are supported to get even better at managing.
• Managers are accountable and rewarded for doing so.
2. It needs to be clear about what it tries to accomplish as an organization:
• Not only in terms of financial goals.
• What‟s the purpose; what does it aspire to bring to the world?
• What kind of a culture must be in place in order to do that?
• What will the organization look, feel and sound like when embodying that mission
and culture?
• How is the success measured?
3. It needs to apply the only three true job interview questions to everyone:
• Can you do the job?
• Will you love the job?
• Can we tolerate working with you?

9. Importance of co-operation
Corporate units and people are not alone: the
better they work together, the stronger the
corporate position in the market.

10. How to achieve corporate harmony?
The wider the scope of works the bigger the opportunities
for synergies between the corporate units and people!
Services Partner Mgmt and Country
,
Organisation work based on plans
-ResourceDelivery
- Resource Prices
- Projects
- Tasks
ResourceInfo
- Resourceneeds
- Organisation
- Job Descriptions
Customer Organisation Country and Customer Organisation create and Business
Sells/ Plans to Sell Organisation create plans Keepup their master plans. planning
Subprojects Projects‟
CaseDetails Details
- Customer Price - Tasks
- Service Description - Resources
- Service Length Prices - Costs
- Key Performance Costs
Indicators SM
- Share of responsibilities etc. - Organisation
- Job Descriptions
FinancialControl helps
local business /follows up.

11. Strategy and Incentives
• Strategy is like going for a diet – it won‟t work if
the diet change constantly; it only works if it is
adopted as a lifestyle for the rest of the life.
• Incentives are not replacement for common
sense. It is against common sense to sacrifice
the benefit of the company for the incentives, for
in the long term the employee will become
jobless – a fact the gained incentives rarely
compensate.

12. Linkage between strategy and people‟s interests
75% of employees say they don‟t find leadership inspiring.
59 % of workers say they don‟t receive recognition for a job well done.
Over half say they could double their productivity “if I wanted to”.
9 companies out of 10 are not able to implement their strategy.
Business Resource needs Competence needs Locations
References Power Balance
What the
strategy is
based on?
(Virtual) Teams
What the
people are
Customer Satisfaction focusing Processes
on?
Cases Way of working
Service Delivery Efficiency Motivation Remuneration

13. Customer understanding
Service Business is successful only when all the people
involved understand what the customer really needs –
regardless of how the customer explains their needs.
Principle:
Well planned
Is halfway done!

14. People and Tools
The quality of the service delivered is depending
upon people and tools. Unmotivated, unambitios
or incompetent people are the best quarantee
for dissatisfied customer.
1st Principle:
1st class tools + 2nd class people = 3rd class results
2nd Principle:
2nd class tools + 1st class people = 1st class results
3rd Principle:
3rd class tools + 1st class people = 2nd class results

15. Four cornerstones of successful business
Trust! Competence! Persistence! Humbleness!
Trust your people - do not Keep yourself updated on There is a seed of win Do not boast about business
hide away any relevant matters related to your within every defeat! to the outsiders – they just
business information from work, otherwise you may The defeat is much better use this information for their
them. lose many opportunities! teacher than the win! own benefit.
A man goes to take a shower after A priest picked up a hitchhiker girl. A farmer bought a bull from another A young man in the pharmacy asks to
his wife. The doorbell rings and the The girl was wearing an irresistible farmer. The price – 1000 Euros - was buy one condom. Boasting he explains
lady opens the door wearing only miniskirt and soon the priest was paid cash. It was also agreed that the that his girlfriend has asked him to
the bath towel around her. tempted. His hand went to the girl's buyer sends his man to collect the dinner. Tonight he may be lucky.
knee by accident, bull next day.
Their neighbor has come to visit. He Actually he could buy another one
smirks and promises to pay one but soon it slipped there more and At night the bull died, and the buyer because his girlfriend‟s sister has been
thousand Euros if the lady drops the more often and finally stayed there. claimed to cancel the deal. The seller flirting in a way that he may need it.
towel. The girl started to mutter: "Luke did not agree, and thus the dead
13:24, remember Luke 13:24 ..." animal became lifted at the trailer of The boy takes his wallet and is about to
The lady agrees and the neighbor She turned ever and ever redder by a tractor and the farmer went home. pay, when he says: "Give me one more
takes his time to look at her naked, her cheeks. The priest controlled Time passed and the farmers met. condom, old man. The housewife is also
pays and leaves whistling. himself and biting his lips staring very good looking."
the road firmly drove to their The seller bought a drink and asked
The lady returns to the bathroom to destination. a bit ashamed what happened to the The evening comes and all but the
dry her hair. The man asks who it dead animal. master are sitting at the dinner table.
was at the door. The wife answers The girl stepped off, looked at the They are just saying the prayer, when
that it was just the neighbor. "Did he priest meaningfully and thanked for "I promised it to be the main price for the master arrives, sits at the end of the
pay one thousand Euros, that I the ride. The priest Drove straight lottery, sold 300 tickets for 20 Euros table and crosses his hands.
borrowed him yesterday?" asks the home and searched the bible, each."
man. where it stands at Luke 13:24: "But the bull was dead! Did anybody Then everyone catch their cutleries
"Rush to get in through the narrow raise a hell of it?" except the boy, who continues to keep
door, for many, I tell you, try to get "The only one complaining was the his head down. Finally the girl pushes
in, but can not." winner, but I returned his money." the boy and whispers: "I did not know
you are such a devoted Christian."
"And I did not know that your father is
the pharmacist."

16. Business Governance
As business is subject to change over time, an agreed
business governance is a must to continuously meet the
needs and objectives of parties involved.
PROACTIVENESS: Avoid problems through joint planning , decision making and driving
activity towards a set of measurable outcomes and behavior.
COMPREHENSIVENESS: All activity with a business impact fall within the business
governance.
OPENNESS: The business governance should facilitate a free and open dialogue across
all tiers of relationship and function.
SHAREDNESS: The governance model should seek to bring forth and align intentions
and goals of all parties involved.
FLEXIBILITY: The parties review and as appropriate and necessary modify the
governance model over time in light of experience and changing requirements.
COLLABORATION: The governance provides a framework for collaboration and trust.

17. Managed Services
From Wikipedia, the free encyclopedia:
Managed services (as defined by Dr. Gerard Macioce) is the
practice of transferring day-to-day related management
responsibility as a strategic method for improved effective and
efficient operations. The person or organization who owns or
has direct oversight of the organization or system being
managed is referred to as the offerer, client, or customer. The
person or organization that accepts and provides the
managed service is regarded as the service provider.
Typically, the offerer remains accountable for the functionality
and performance of managed service and does not relinquish
the overall management responsibility of the organization or
system

18. Mindsets
Motto: ”Describe tomorrow today !”
Planning & Optimisation
Mindset : how … plan & optimise
.=>
-Plan the NW
- Analyse the NW
- Optimise performance
Plan DB
Roll-Out (Project) Operation & Maintenance
Mindset : as … deploy
.=> Mindset : if … prevent & solve
.=>
-NW element delivery -Keep NW integrity
- NW Deployment - Prevent problems
- NWExpansions - Detect and solve problems
- Report Performance
Task DB
DB‟s Technical Support / Care
DB‟s Mindset : when … support & correct
.=>
DB‟s -SW Upgrades
DB‟s - HW Logistics
- Emergency & Product Support
Resolution DB
Motto: ”Create tomorrow today !” Motto: ”Maintain today for tomorrow !”

19. Operations & Maintenance
Operations and maintenance is an ‟insurance‟. If
the systems, platforms, networks and in general
equipment were failsafe and maintenance free,
nobody would need to invest in operations and
maintenance.
Marketing / Sales
Planning/Optimisation
Planning/Optimisation
Site Acquisition
Project teams
Progress
Deployment
Construction / Manufacturing
Site Building
Equipment Installation
Installation / Deployment
Maintenance
O&M Managed Services &
Operation , Maintenance
And Technical Support
Care

20. Managed Service costs and savings
Managed Services Business can make money and thus is
worth doing only over a long period of time – there are
no quick wins for an operator or service provider here.
Transformation
Bid cost
cost
Customer baseline
Service Level Agreement defined cost line
- 2 - 1 1 2 3 4 5 years
Contract
Signature

21. Outsourced OPEX
Main reason for operations outsourcing is the hope to lower the
operating expences (OPEX). There‟s also the hope to get rid of the
problematic areas of operations. However, it‟s not obvious why
outsourcing would lower the OPEX as:
– Outsourced problems tend to grow even bigger problems.
– Insourced problems are most difficult to solve.
"What I need is an exact list of specific unknown problems we might encounter."

22. Operations dimensioning
The cost, time and manpower needed for
operations is depending upon many factors,
most of which are not under control.
Infrastructure: Network: Environment: Culture:
- Electrical - Elements - Sites - Languages
- Hydrological - Topology - Means and speed of travel - Education
- Sanitation - Geographical distribution - Climate, Flora and fauna - Etc.
CAPEX:
Operation: Service Levels:
- Network
- Personnel -Key Performance Indicators
- Transmission
- Competencies - Response times
- Buildings / Sites
- Processes - Reporting Periods
- Electrical OPEX:
- Geographical distribution -Priorisation
- Climatical - Personnel
- Documentation - Etc.
- Etc. - Training
- Traveling
- Office
- Tools
- Etc.
Vision, priorisation and justified wish list on all operational aspects:
Network, technology, planning/optimisation, Performance, Configuration, management, training, system administration,
security, financial etc.
Delivery Dimensioning

23. States of Service
Service normally undergoes through a series of changes in
it‟s contractual lifecycle in an attempt to bring the
operations costs down and improve the operational
quality.
Final State
-Finished service delivery
Engagement State -Operator or 3rd Party Operation or
-Sales Activities -No Operation
-Solution Creation Disengagement
-Bidding
-Contracting
Set-up
Contracting
Due Diligence
Target State
-Operations Model
Initial State
-Established Operation or Transformation
-3rd PartyOutsourced Operation or
-No Operation
Intermediate State
Transition
-Staff and Assets Transferred
-Operation Responsibility Transferred
-Working methods and tools unchanged or
-Working methods and tools not fully established

24. About the world around us
And people in it

25. What is I?
“ Most of our capabilities and potential arise
from what we are as human beings: our self-
knowledge, self confidence, beliefs and
values. These define to what extent we are
prisoners of the past and whether we are able
to look at the present and the future with open,
curious eyes.“
-Sari Baldauf-

26. Motivation
People are motivated by three types of fundamental needs; Security, Status, and
Stimulation. Individual behaviour can be explained by the weight that a person gives
to each of the three needs at any point in time. Graphically one can imagine the
circles in the illustration below shifting in size and in position as the perceived
importance of each need changes for different individuals, and also within each
individual at different points in time or stages of life.
• Security Needs
- Health & safety
- Financial security
- Relationship security
• Status Needs
- Self-esteem
- Social status
- Autonomy & authority
• Stimulation Needs
- Physical activity
- Intellectual stimulation
- Change or stability
Each of the Fundamental Needs has Interests associated with it. Interests need to be
uncovered and recognized in order to accurately articulate achievable goals.
Successful goal attainment becomes possible when we are able to satisfy as many
interests of as many stakeholders as possible.

27. Motivation Dynamo
• Curiosity and Fear are the two absolute and basic motivations for activity. Tied
together they form a motivational force generator like a magnetic pole pair in an
external changing magnetic field that represents the chaotic universe and flow of
events around us. The more events the more motivation to act for any self-guiding
system like humans, animals, or artificial intelligence.
Self guiding system‟s
Core Motivation Dynamo
Event flow through the Dynamo

28. Motivation model
Basic Motivation Dynamo (jing-jang)
for everything.
Basic questions creating human
‟targets‟ in life
Emotional ‟tags‟ related to
like / dislike (against human ‟targets‟).
Seven ‟negative‟ characteristics
visible to others
Fear
Curiosity
Seven basic ‟positive‟ characteristics
visible to others

29. Basic questions in life
• There are only two decisions for any of us to make:
1. How do I use the time I have?
2. How do I get the resources to my time spending?
• These two decisions are interlinked.
• Questions like what values we should keep, how far we should reach
etc. can be derived from these two basic questions and our answers to
them in the factual environment we can not change.
• There are things we can change, but as soon as we decide to change
them we actually have answered the first question.
• Our motivation, principles, believes and behavior reflect our answers to
these basic questions.
• Consciously or not, every one of us is answering all the time to these
questions.
• Do we recognise these questions in our everyday life and what are our
answers?

30. Values, rules and principles
• Treat others as you want to be treated.
– Apply the same rules and principles to me, you and everyone.
– Expect yourself the same you expect from others.
– Do not be offended finding out other people‟s values differ from yours.
• The rules and principles we apply define our value and usefulness to
ourself, to our fellows and to the society.
– Choose them right, earn respect and succeed.
– Choose them wrong, get dispised and fooled about.
• Basic values common to all humans are:
1. Bravery
2. Comprehension
3. Diligence
4. Fairness
5. Honesty
6. Reliability
7. Tolerance
Selecting the rules and principles to live, act and behave accordingly gives the best
possibility for happy, rich and respectful life.

31. The heavier the better?
Three phenomena follow the same pattern in the chaotic universe, where not
all the pieces fit together like a clockwork:
1. Stars in the sky
2. Information structures
3. Human hearts
The bigger they grow, the heavier and more attractive they become.
The heavier means the more solid they are.
At some point they become so heavy that they start to tear the objects around
them to pieces by the attractive gradient:
1. The stars‟ gravity tears in pieces the matter falling in.
2. The information systems only accept additional information in little pieces that
have to match the internal rules
3. Humans only accept some aspects of the attracted ones around them, which
makes it very difficult for others to live with them
When the stars, databases and hearts grow big enough, they collapse into
themselves and disappear from this universe:
1. The stars become black holes
2. The database becomes so difficult to use and keep up, that it is abandoned
3. The human heart turns inside, becomes bitter and impossible to life with,
draws into monastery or depression, and dies alone

32. Understanding Human Interfaces
Person within the boundaries: Human
Interfaces
-Thinking
-Reacting
-Behaving
Center of „you‟
Center of „me‟
Principle 1: We can only see as much of the other person as our human interface allows us to see.
Principle 2: The larger the human interface, the wider the „point of view‟.
Principle 3: To fully see the other person requires infinitely large interface, possible only for Gods.
Principle 4: Changing one interface affects immediately to others.
Principle 5: In case of a small interface „point of view‟ allows us to see also other persons involved.

33. Simplified Existence Model
Environment / Identity / Consciousness / God(s) /
Physical and Social Self Spiritual world Religious world
universe
All things we can Our physical and Consciousness, Omnipotential
sense, change mental self free will, will to creator and source
and affect to. described by live, mental of life.
Defined by psychology, strength, prayer Information source
known sciences medicine and and faith. through individual
like physics, biology. Our Links our identity consiousnesses
chemistry and body, behavior, to the religious => scientifically
sociology. memories and world. not approachable.
feelings. Metaphysical.

34. Types of interpersonal
communication
One Way Two Ways Three Ways
Lecturing: Information exchange: Thought exchange:
+ Time saving + Creativity + Innovation
+ Decisions done + Compromising + Growth
+ Presentation + Feedback + Analysis
+ Proven content + Red flags possible + Risk assessment
+ Stable situation - Understanding? + Solutions
- Red Flags not available - Decision mechanism? + Decisions
- Understanding? - Time consuming + Efficiency
- Feedback missing + Understanding
- Not easy
- Not everyone
- Needs common language

35. Personal money and property
Never release information of your money and
property to anyone:
1. Any true friend of yours is not interested in your
money and property - but yourself.
2. Anyone else is only interested to use this
information for their own benefit.