Service Improvement. Part 3 The Strategic View.

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1 Service Improvement Part 3 The Strategic View

2 Service Management House Customers Avail. Mgmt Capacity Mgmt Service Level Mgmt Continuity Mgmt Financial Mgmt Service Delivery Users Incident Mgmt SD Problem Mgmt Change Mgmt Release Mgmt Service Support Configuration Mgmt Part 1 The Frontline Part 2 Making Changes Part 3 The Strategic View

3 Programme Service Support Recap Service Level Management Financial Management Coffee Capacity Management Availability Management Service Continuity Management Where Now & Questions

4 Frontline Recap The Service Desk handles Incidents and Service Requests. Incidents are caused by Problems and Known Errors. Problems are investigated to produce Workarounds and thus become Known Errors. Known Errors are investigated to produce Requests For Change.

5 Making Changes Recap RFCs are assessed and approved by Change Management. Once approved, the Change is built, tested and implemented by Release Management. Release Management takes a holistic view of the Change. The Configuration Management Database underpins all other Service Management disciplines.

6 Service Level Management Goal To maintain and gradually improve business aligned Service quality, through a constant cycle of agreeing, monitoring, reporting and reviewing Service achievements and through instigating actions to eradicate unacceptable levels of Service.

7 SLM Process Customer Demand Service Level Requirements Identify Needs Service Specification Service Quality Plan Define Service Create Agreements Monitor Service Service Catalogue Operational Level Agreement Service Level Agreement Underpinning Contract Report on Service Review Service Service Level Reports Service Improvement Programme

8 Customer Demand Goal is services aligned with business, hence services driven by customer demand Demand may be informed by the Service Catalogue

9 Definitions 1 Service Catalogue A database or structured document with information about all Services, including those available for deployment. The Service Catalogue is published to Customers, and is used to support the marketing and delivery of Services. The Service Catalogue includes information about deliverables, prices, contact points, ordering and request processes.

10 Service Catalogue Written from customer perspective End to end view of services In customer language (not service speak) Ideally interactive (online ordering?) Customer view into the CMDB as includes relationship information Linked to greater detail, e.g. Service Level Agreements

11 Identify Needs Customers may require assistance in articulating needs Service Level Management aims to build relationship with customer Partnership, dialogue, alignment Needs are documented in Service Level Requirements

12 Definitions 2 Service Level Requirements (SLR) A Customer requirement for an aspect of a Service. SLRs are based on business objectives and are used to negotiate agreed Service Level Targets. Service Level Target A commitment that is documented in a Service Level Agreement. Service Level Targets are based on SLRs, and are needed to ensure that the Service design is fit for purpose. Service Level Targets should be measurable, and are usually based on Key Performance Indicators.

13 Definitions 3 Key Performance Indicator (KPI) A metric that is used to help manage a Process, Service or Activity. Many metrics may be measured, but only the most important of these are defined as KPIs and used to actively manage and report on the Process, Service or Activity. KPIs should be selected to ensure that efficiency, effectiveness, and compliance are all managed.

14 SMART Metrics Specific Objectives should specify what they want to achieve. Measurable You should be able to measure whether you are meeting the objectives or not. Achievable - Are the objectives you set, achievable and attainable? Relevant Are they aligned with the plan, mission or vision (business, customer or service provider)? Timely When do you want to achieve the set objectives?

15 Define Service Armed with customer s SLRs, service specification drawn up In service language In sufficient technical detail to permit costing, assessment and approval Draft Service Quality Plan created Includes Key Performance Indicators for all processes Used to measure service based on SLRs

16 Create Agreements Service Catalogue Operational Level Agreement Internal agreement with backroom teams Underpinning Contract Legal agreement with external partner Service Level Agreement Agreement with customer Built upon OLAs and UPCs

17 Definitions 4 Operational Level Agreement (OLA) An agreement between a Service provider and another part of the same business that provides Services to them. For example there could be an OLA with a facilities department to provide air conditioning, or with the procurement department to obtain hardware in agreed times. An OLA may also be between two parts of the same Service Provider, for example between the Service Desk and a Support Group.

18 Definitions 5 Underpinning Contract (UPC) A Contract between a Service provider and an external organisation. The external organisation provides goods or Services that support delivery of a Service to a Customer. The Underpinning Contract defines targets and responsibilities that are required to meet agreed Service Level Targets in an SLA.

19 Definitions 6 Service Level Agreement (SLA) An agreement between a Service provider and a Customer. The SLA describes the Service, documents Service Level Targets, and specifies the responsibilities of the Service provider and the Customer. A single SLA may cover multiple Services or multiple Customers.

20 Agreement Differences Language Parties Legal SLA Customer Service Provider & Customer No OLA Service Internal Service Providers No UPC Service Service Provider and External Organisation Yes

21 Monitor Service Monitor for effectiveness, efficiency and compliance Effectiveness = meeting Service Level Targets, KPIs and functional requirements (what we do) Efficiency = processes (how we do it) Compliance = non-functional requirements (company policies, laws, code of practice)

22 Report on Service To Customer hence customer language on areas of customer interest usage, service level targets, etc To Service provider on efficiency, compliance, cost (& profitability?)

23 Review Service Regularly (on demand?) Were service level targets met? Identify any trends Develop Service Improvement Programme Review Service Level Requirements Negotiate changes to maintain alignment with business

24 Outputs to Service Support Service Level Agreements Operational Level Agreements Customer based priority information Change freezes and release windows Service Level Targets, Service Quality Plans and Key Performance Indicators Service Improvement Programmes

25 Inputs from Service Support User feedback from Service Desk Incident & Problem reports Major Incident Reviews SLA (threatened) breaches Projected Service Availability Forward Schedule of Change Assessment and approval of proposed Services & Changes Service relationship information from CMDB

26 Benefits Service meets customer requirements Service provider has agreed targets Customer and provider responsibilities understood Improved relationship between customer and provider Service improvements planned Changes meet customer requirements

27 Breakout Divide into two groups: The first group are customers what would you like to see in a Service Level Agreement? The second group are part of the service provider what would you like to see in a Service Level Agreement?

28 Financial Management Goal To provide cost effective stewardship of the service assets and the financial resources used in providing services. To be able to account fully for the spend on services and to attribute these costs to the services delivered to customers.

29 Processes Budgeting Prediction of service costs Accounting Details of actual service costs Charging (optional) Recovery of service costs from customers

30 Cost Types & Elements Type People Accommodation Hardware Software External Transfer Elements Payroll costs, benefits, relocation costs, consultancy, expenses Offices, storage space, workshops, shelving, utilities Computers, networks, servers Operating systems, office packages, databases Security services, outsourced services, disaster recovery Charges from other internal areas

31 Cost categories Capital Fixed Fixed assets Do not vary with usage Direct Costs assigned to single customer Operational Day to day running costs Variable Vary with usage Indirect Costs apportioned between customers

32 Cost Model A framework used to calculate the costs of service provision Could be customer or service based Includes both direct and indirect costs More detailed guidance on drawing up cost models is available in the ITIL books.

33 Charging & Pricing Decision to charge taken by business, not service provider Charging must be simple, fair & realistic Pricing methods: No charging Cost plus/minus Cost recovery Going rate Market rate Fixed price Differential charging

34 Outputs to Service Support Budgets Differential charging to modify user behaviour Costing information for change assessment Procurement guidance for Releases

35 Inputs from Service Support Accounts Equipment failure rates Service utilisation information Staff utilisation information (time reporting) Service relationship information from CMDB

36 Benefits Changes, service improvements and extensions are cost justified Service budgets are transparent and understood Value for money easier to demonstrate Customer and user behaviour may be influenced Greater cost efficiency

37 Capacity Management Goal To ensure that the capacity of the Service matches the evolving demands of the customer in the most cost effective and timely manner.

38 Definitions 7 Capacity The maximum throughput that a Configuration Item (CI) or Service can deliver whilst meeting agreed Service Level Targets. For some types of CI, Capacity may be the size or volume, for example a disk drive.

39 Capacity Horizons Business Capacity Management Future Service Capacity Management Current Resource Capacity Management Component level

40 Business Capacity Mgt Works with customers on future requirements Ensures that services supporting future business requirements are considered, planned and implemented in timely fashion Ensures new services are appropriately sized Ensures minimal undesirable impacts on existing services

41 Service Capacity Mgt Manages performance of current services Monitors and measures services based on SLAs Analyses capacity requirements, trends and failures Tunes service and manages demand

42 Resource Capacity Mgt Component focus Often technical Optimises individual CI performance Monitors, analyses and tunes CIs Profiles use of CIs Maintains awareness to feed into CI procurement

43 Iterative Activities Tuning Implementation Analysis Monitoring

44 Predictive Activities Demand Management Shape user behaviour Must be sensitively applied! Modelling Predict results of changes based on: Guess Trends Mathematical models Simulation Application Sizing Designed in capacity

45 Capacity Plan & Database Capacity Plan Produced annually Current & Future Capacity requirements Business, Service and Resource Costed options Capacity Management relies on many data feeds Hence collate into Capacity Database

46 Definitions 8 Capacity Plan A Capacity Plan is used to manage the resources required to deliver Services. The Plan contains scenarios for different predictions of Business demand, and costed options to deliver the agreed Service Level Targets.

47 Outputs to Service Support Capacity related RFCs Demand management Appropriately sized services Capacity advice to CAB Component capacity advice to Release Management Capacity trend analysis to Problem Management

48 Inputs from Service Support Monitoring information on service and CI capacity Service and CI relationship information from CMDB User experience of performance Forward Schedule of Change Assessment and approval of Capacity changes Handling of capacity incidents and problems

49 Benefits Increased efficiency Reduced unnecessary over capacity Reduced capacity related incidents & problems Better budgeting No panic buying Planned, considered service growth Reduced pinch-points No surprises!

50 Breakout Information Services has agreed to extend services to students of another local University. Consider how this planned change might impact on the Library Café. What capacity issues should be considered? What are the likely financial implications?

51 Availability Management Goal To optimise the capability of the service and supporting organisation to deliver a cost effective and sustained level of availability that satisfies customer requirements.

52 Definitions 9 Availability Ability of a Configuration Item or Service to perform its agreed function when required. Availability is determined by Reliability, Maintainability, Serviceability, performance, and security. It is best practice to calculate Availability using measurements of the business output of the Service. Reliability A measure of how long a Configuration Item or Service can perform its agreed function without interruption. Maintainability A measure of how quickly and effectively a Configuration Item or Service can be restored to normal working after a failure. Serviceability The ability of a Third Party Supplier to meet the terms of their Underpinning Contract.

53 Security Management Confidentiality Protecting against unauthorised access and use Integrity Accuracy, completeness and timeliness Availability Accessible at any agreed time

54 Measuring Availability Can t maintain, can t improve, can t manage what can t be measured! Measure from customer point of view Reports contain Service availability CI availability used to target improvements % Downtime, lost working hours, impact

55 Anatomy of an Incident Time Between System Incidents Time To Repair (Down Time) Time Between Failures (Up Time) Detection Time Response Time Repair Time Recovery Time Incident Detection Diagnosis Repair Recovery Restoration Incident

56 Availability Techniques CCRAM CCTA Risk Analysis Management Methodology Fault Tree Analysis Component Failure Impact Analysis Service Outage Analysis Technical Observation Post

57 Definitions 10 High Availability An approach or design that minimises or hides the effects of Configuration Item failure on the users of a Service. High Availability solutions are designed to achieve an agreed level of Availability and make use of techniques such as fault tolerance, resilience and fast recovery to reduce the number of Incidents, and the Impact of Incidents. Continuous Operation An approach or design to eliminate planned downtime of a Service. Note that individual Configuration Items may be down even though the Service is Available. Continuous Availability An approach or design to achieve 100% Availability. A Continuously Available Service has no planned or unplanned downtime.

58 Best Method The cheapest and most effective method of ensuring appropriate availability is to Design it in

59 Outputs to Service Support Availability related RFCs Incident process enhancements Services with designed in availability Availability advice to CAB Analysis for proactive problem Management Release window breach analysis

60 Inputs from Service Support Monitoring information on service and CI availability Service and CI relationship information from CMDB User experience of availability Projected Service Availability Assessment and approval of Availability changes Handling of Availability incidents and problems

61 Benefits Services have appropriate availability Availability incidents and problems are reduced Availability designed in Customer and user confidence increased Higher availability = reduced impact & happier customers

62 Service Continuity Mgt Goal To support the overall Business Continuity Management process by ensuring that the required services can be recovered within required and agreed customer time scales, minimising any impact.

63 Relationship to Availability Service Continuity Availability Cost of countermeasures Impact of Incidents Scale of disaster Blood on the carpet

64 Definitions 11 Vital Business Function (VBF) A function of a business process which is critical to the success of the business. Vital Business Functions are an important consideration of Business Continuity Management, Service Continuity Management and Availability Management.

65 Process Initiation Requirements & Strategy Implementation Operational Management

66 Initiation Initiate Business Continuity Management Service Continuity Management is not a substitute for BCM, it is part of BCM No point investing in 1 day recovery of service if users don t return for a week! Specify scope Set policy Allocate resources

67 Requirements & Strategy Business Impact Analysis Analyse business processes Identify VBF Risk Assessment Which services support VBF? What threatens them (hazard)? How vulnerable are they? Tool, e.g. CRAMM Business Continuity Strategy

68 Business Continuity Strategy Recovery Time Objective How long to recover? Recovery Point Objective What will the recovered system look like? Recovery Options

69 Recovery Options Countermeasures (avoid/mitigate) Do nothing (!) Manual working Reciprocal agreement Gradual recovery (>72 hours) Intermediate recovery (24 hours) Immediate recovery (<24 hours)

70 Implementation Implementation planning Implement stand-by arrangements Develop recovery plans Implement counter measures Develop procedures Initial testing

71 Operational Management Education & Awareness Training Change Management Reviews & Audits Testing Assurance

72 Outputs to Service Support Continuity Plans Roles & responsibilities Testing Highlighting of continuity problems Continuity RFCs Continuity advice to CAB Recovery instructions to Release

73 Inputs from Service Support Assessment and approval of Continuity changes CAB considers Continuity implications of all changes Release informs continuity of CI changes Service and CI relationship information from CMDB Testing results from Service Desk Handling of Continuity problems

74 Benefits Business continues after disaster! Recovery is in business priority order Customer and user confidence improved Plans in place reduced panic & ill-considered action Reduced impact of continuity incidents

75 Breakout Consider a service operating from the Main Library Building. What would you like to see covered in the Service Continuity Plan? How might continuity improvements be used to improve service availability?

76 Where Now? Foundations of IT Service Management based on ITIL Van Haren Publishing, via itsmf Exam preparation chapters Introduction to ITIL TSO, via itsmf Covers more of ITIL E-learning Foundation Course now v3 Exam Onsite, Full Foundation Course?

77 Questions?

78 Thought Can I use the ITIL processes of Service Level Management, Financial Management, Capacity Management, Availability Management and Service Continuity Management to improve the services I offer to my users?

79 Acknowledgements ITIL is a Registered Trade Mark of the Office of Government Commerce Crown copyright material is reproduced with the permission of the Controller of HMSO and Queen's Printer for Scotland. itsmf copyright material is reproduced with the permission of the itsmf

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