The ITSM Journey. Value. Chaos. Patrick Bolger. Chief Evangelist Hornbill Service Management

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1 The ITSM Journey Chaos Value Patrick Bolger Chief Evangelist Hornbill Service Management

2 Agenda ITIL the realities of adoption Greatest barriers to improving ITSM The ITSM journey Reactive to proactive Get serious & challenge IT demand Problem Management Knowledge Management Standardize service offerings Eliminate waste Empower the customer Customer examples The service experience 10 top tips for ITSM improvement Q&A

3 ITIL v2 still maturing Source: ITIL State of the nation, Hornbill

4 ITIL v3 faring no better Source: ITIL State of the nation, Hornbill

5 Gartner ITOM Hype Cycle 2010 ITIL v3 ITIL v2

6 ITIL v3 The realities of adoption ITIL v3 now 4 years old Introduces Service Lifecycle, but little or no adoption Organizations just updating Incident, Problem & Change Mgmt Maturity levels remain low Criticised by practitioners, industry pundits and analysts alike ITIL v3 aims Understand business goals and integrate IT strategy (SS) Design services to factor in Utility and Warranty (SD) Adequate testing and communication of new services (ST) Reduce operational defects / outages (SO) Continual improvement of Services (CSI) v3 update (ITIL 2011) due for publication this month ITIL v3 principles still sound, so what s stopping us?

7 What s stopping us? Focus on Technology Source: ITIL State of the nation, Hornbill Lack of business engagement

8 The Challenge Technology focused IT organizations often think from a technology perspective approach problems with technology solutions provide metrics with little business relevance forget continual service improvement don t understand service costs are not aware of business objectives or strategic goals don t engage with senior business executives don t establish links between IT systems & business processes only get business feedback following failures Business objectives for technology focused IT Do it Better, Faster & Cheaper than you did last year

9 High Influence on the Business Low CHAOS TECHNOLOGY FOCUS The ITSM Journey integration and single strategy delivery of endto-end IT the customer and is focused on Processes based on improving services support and (business management of solutions) infrastructure IT has mature processes and a SERVICE FOCUS IT is perceived as an internal business partner CUSTOMER FOCUS Applications vs. Infrastructure Separate technology silos IT customers are the customers of the organization BUSINESS FOCUS Management of IT supply chain VALUE FOCUS IT is the Business IT supports business goals Role of IT in the Organization

10 ITIL v3 Processes mapped to focus High Influence on the Business Low Request Fulfilment Service Catalog (User & IT) Knowledge Asset Change Service Asset & Config Release & Deployment Service Level (SLA/OLA) Problem (proactive) Event Problem (reactive) Incident c. 70% are here TECHNOLOGY FOCUS SERVICE FOCUS Transition Planning & Support IT Service Continuity Demand Management Financial (charge back) CUSTOMER FOCUS BUSINESS FOCUS Capacity & Availability SLM (business relationship) Service Catalog (business) Supplier Management Financial (service costing) VALUE FOCUS Service Portfolio Service Strategy Role of IT in the Organization

11 Let s get serious about IT The proactive processes

12 Demand on IT Do business units compete for your resources? Are you constantly having to juggle your limited resources Do priorities change mid-project? Do you have several unfinished projects? Do planned projects get postponed, or cancelled?

13 The business must take ownership Enterprise Priority 1 Priority 2 Priority 3 Business Unit A Priority 1 Priority 2 Priority 3 Business Unit B Priority 1 Priority 2 Priority 3 Business Unit C Priority 1 Priority 2 Priority 3 Projects only offer value when complete You have limited resources You need direction before investing your resources Form an Enterprise Governance Team CEO, CFO, VPs of some business units Rotate business unit participation Service Portfolio Management - Simplified Enterprise Priority 1 Business Unit A Priority 1 Business Unit A Priority 2 Business Unit B Priority 1 Enterprise Priority 2 Business Unit C Priority 1 Enterprise Priority 3 Business Unit A Priority 3 Business Unit B Priority 2 Business Unit C Priority 2 Business Unit B Priority 3 Business Unit C Priority 3

14 Problem Management Challenge Problem Management not afforded the resource for proper analysis If the service desk can provide workarounds, let them carry on Problems often left to 2 nd and 3 rd line teams to resolve BAU and incidents take over, so the problem queue grows larger Few IT organizations attach a $ cost to problems Effective Problem Management needs Resource, time and tools Not to be pulled off the job to do something else If your organization is unable or unwilling to appoint a Problem Manager, you are probably not ready for Problem Management

15 How to do it 1. Establish problem ownership (teams, managers, SME's, etc.) 2. Identify incidents with major impact (man hours/productivity lost, repeated incidents, similar incidents affecting common CIs) and raise problem records 3. Define problem impact on business (1=high impact... 4=low/no impact) 4. Define urgency levels according to impact (1=immediate 4=five days) 5. Focus on problems with greatest business impact with agreed business priority 6. Identify dependencies (network, applications) and assign to resolver groups 7. Problem Manager should get daily status updates from resolver groups 8. Hold regular scheduled meetings to discuss problems (include business managers) 9. Engage PMO when problems require change/project management assistance 10. Post outcome of root cause analysis to Known Error Database 11. Encourage IT staff to get involved in updating the Known Error Database make it a metric and reward performance 12. Evaluate problem processes, ownership, escalation (what s working/what s not?) 13. Find and address weaknesses 14. Use a robust service management application that can assist the service desk by proactively identifying possible problems or known errors

16 Automatic Problem/KE Recognition

17 Customer Successes Limited menu restaurant sector - $ 23bn sales Focus on top 10 incidents One product generating 400 calls per month Problem management resolves incidents permanently Incidents reduced to 100 per month Saving $ 90k per year on a single product Change requests reduced significantly through rejection without appropriate business approval, saving $ 1,400 per request.

18 Knowledge Management Knowledge Management is the discipline of enabling individuals, teams and entire organizations to collectively and systematically capture, store, create, share and apply knowledge to better achieve their objectives.

19 Knowledge Management Identify Top 10 Incidents, Problems, Changes Create Collectively - Everyone s responsibility Systematically - Cultural shift Reward Store Wiki, KM system Share Use Constantly redirect staff and customers to KM articles Must be institutionalized Review Provide opportunities for feedback Usage stats

20 Knowledge Management

21 Customer Success Introduced Ask a question facility for customers Several thousand enquiries per year dealt with automatically Volume of requests dropped by 33% Call resolution times reduced by 50% 25% of Service Desk staff refocused from call handling to resolution Customer satisfaction increased by 20% in first year Supportworks has allowed us to provide the consistent, efficient and cost effective service we were looking for and we are actually maintaining a better level of service now with 25% fewer staff than we did last year. Paul Copley, Customer Information Centre Lead, Sharp Electronics.

22 Standardize Service Offerings

23 Standardize Service Offerings Why would you want to standardize services? To drive the service perspective To clearly explain to the business what you do To prioritize your investments To improve the management of your resources To deliver services with a consistent level of quality To enable you to set customer expectations To make and keep your promises To offer the customer a choice of service levels To affect and modify your customers behavior

24 Service Catalog is not a new concept You have to get away from custom builds!!! It s all about Bundles

25 Service Catalog (IT/User) Keep it simple to begin with Consider critical services Perhaps a single service for one department Starting point could be an Excel spreadsheet, or wall chart But the aim is to create an actionable Service Catalog Avoid the common mistakes If we build it, they will come It s been live for 3 months and it s already out of date Successful Service Catalogs Rely on robust SLM, service options and costs Are designed from the Customer in, not from the infrastructure out

26 Eliminating waste

27 Automate Process & Repetitive Tasks What can be automated? Virtually any task where The process steps are known The process can be documented The risks are minimal Risk of human error can be reduced Examples Can you tell me what s happening with I ve forgotten my password Restart an OS service or process Recover from low disk space Software distribution User provisioning Small reductions in cost/effort can deliver huge savings by automating repetitive tasks

28 Introduce a Customer Self-Service Portal

29 The modern consumer experience

30 Service When, where and how I want it

31 Service Catalog Management Configuration Example Content delivered from supplier website Self-Service Wizard captures data from customers Authorization Tasks assigned to relevant resources Customer tracks progress via Self-Service

32 Success Stories World s largest privately owned global property agency Manages $ 700bn of real estate Self Service results 75% of all incidents now logged via SelfService portal 50% decrease in telephone calls to the service desk No need to replace temporary staff 97% of all incidents responded to within 5 minutes. We have been delighted with the way that self-service has been adopted by users. We have set our sights on 85% of tickets being raised through the system. Unexpected benefits have been the positive impact self-service has had on the morale of our IT staff they do not feel so pressurised and feel that they are able to get more done. Phil Hurcom, Associate, Knight Frank.

33 ITSM Needs the Human Touch Although Process and Technology are important, remember that People report incidents to the Service Desk participate in Service Review Meetings respond to the Service Delivery Manager review trends on service performance take ownership of issues impacting service take action to avoid service degradations identify the metrics that are meaningful establish the baselines for service quality coach staff on performance to goals

34 It s all about the Service Experience

35 Recommended Reading Service

36 Customer Successes Top ranking Manhattan law firm ITSM initiative driven by people with right Attitude, Behavior & Culture Little or no business backing Very limited budget Back to basics approach Supportworks deployed within 2 weeks for Incident, Problem & Knowledge ITSM costs reduced by hundreds of thousands of dollars Reduced overall call volume by 20% Increased fix rate by 30% Reduced service outages by 40% Double digit increase in customer satisfaction levels Increased service availability adds $3m to bottom line.

37 10 Tips for Service Improvement 1. Successful ITSM initiatives are customer-centric 2. Be proactive don t wait for the customer to come to you 3. You need a vision and a plan 4. Get buy-in Not just senior management 5. Get help 6. Don t bite off more than you can chew 7. Weigh up the effort you can expend, against the value can expect 8. Don t get sucked in by the latest fashionable processes 9. Challenge demand on the Service Desk by eliminating dumb contacts 10. Don t rest on your laurels

38 ITSM Extreme Makeover

39 The Question Process Questions? Y Answer Known Y Provide Answer N N Thank Audience State that time has run out Move to Next slide

40 Thank You USA & Canada: EMEA: Patrick Bolger Chief

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