ITIL CSI 2011 Vernon Lloyd

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1 ITIL CSI 2011 Vernon Lloyd 12 th December 2011

2 Implementing or Improving? Vernon Lloyd International Client Director Fox IT

3 Without change there is no innovation, creativity, or incentive for improvement Here is Pooh Bear, coming downstairs now, bump, bump, bump, on the back of his head, behind Christopher Robin. It is, as far as he knows, the only way of coming downstairs, but sometimes he feels that there really is another way, if only he could stop bumping for a moment and think of it. AA Milne 30/11/2011 CSI Improved - How ITIL 2011 will benefit IT 3

4 ITIL 2011 a reminder A Refresh 30/11/2011 CSI Improved - How ITIL 2011 will benefit IT 4

5 New Edition Not 4.0; not 3.1; but core books released on July 29 th Introduction quite soon KEGs and other pocket guides in a few months No trumpets No capitals 30/11/2011 CSI Improved - How ITIL 2011 will benefit IT 5

6 Highlights More Swirls Same Organic Mysteries Official Seal of Approval 2011 Edition Title 30/11/2011 CSI Improved - How ITIL 2011 will benefit IT 6

7 In & Out In scope Clearer roles & responsibilities Ensuring consistent presentation of processes Standardize glossary definitions & their use in text Consistent chapters across lifecycle and much more on interfaces Out of scope Completely new concepts Any change that would invalidate current use of ITIL, either in adoption or certification Many previously confusing diagrams have been replaced or clarified 30/11/2011 CSI Improved - How ITIL 2011 will benefit IT 7

8 An example Service Portfolio 2007 Service Catalogue Service Pipeline Retired Services Service concepts Customer outcomes Market spaces Service Design Service Transition Service Operation Third-party catalogue Resources engaged Common pool of resources Return on assets earned from Service operation Resources released 30/11/2011 CSI Improved - How ITIL 2011 will benefit IT 8 Crown Copyright 2007 Reproduced under licence from OGC Service Portfolio simplified view

9 The same diagram Business and market opportunities Service improvements Technology opportunities Service pipeline Service catalogue Retired services Customer requests for new services 30/11/2011 CSI Improved - How ITIL 2011 will benefit IT 9

10 CSI Seven-step improvement process Now has 7 steps Documented as every other ITIL process Relationship with Plan-Do-Check-Act more explicit CSI model renamed CSI approach CSI register introduced Improved interfaces between CSI and other lifecycle stages Lots of small improvements Measuring and reporting not defined as processes now covered in chapters 3&5 Part of everything else 30/11/2011 CSI Improved - How ITIL 2011 will benefit IT 10

11 Seven-step improvement Wisdom 1. Identify strategy for improvement Vision Business need Strategy Tactical goals Operational goals 2. Define what you will measure Data 7. Implement improvement PLAN 3. Gather the data Who? How? When? Criteria to evaluate integrity of data Operational goals Service measurement ACT DO 6. Present and use the information Assessment summary? Action plans? Etc. CHECK Knowledge 5. Analyse the information and data Trends? Targets? Improvements required? 4. Process the data Frequency? Format? Tools and systems? Accuracy? Information 30/11/2011 CSI Improved - How ITIL 2011 will benefit IT 11

12 Analyzing the data Data analysis transforms the information into knowledge of events that are affecting an organization During analysis the following questions need to be answered Are there any clear trends? Are they positive or negative trends? Are there underlying structural problems? Are changes required? Are we operating according to plan? Are we meeting targets? Are improvements required? Analysts also need to ask Is this good or bad? Is this expected? Is this in line with targets? 30/11/2011 CSI Improved - How ITIL 2011 will benefit IT 12

13 CSI approach What is the vision? Business vision, mission, goals and objectives Where are we now? Baseline assessments How do we keep the momentum going? Where do we want to be? Measurable targets How do we get there? Service and process improvement Did we get there? Measurements and metrics 13 30/11/2011 CSI Improved - How ITIL 2011 will benefit IT 13

14 Where are you now? Need to assess the current situation techniques include Gap SWOT CMMI Benchmark Risk ISO/IEC audit What are you assessing Processes (don t be restricted by ITIL but use it as guidance) Organization structure and capabilities including roles and responsibilities Technology 30/11/2011 CSI Improved - How ITIL 2011 will benefit IT 14

15 Assessments advantages and risks Advantages include The provision of an objective perspective of the current operational process state compared to a standard model The provision of a repeatable process giving results which can be compared to previous assessments Assists in comparing company process maturity to industry benchmarks Risks include An assessment is only a snapshot in time Organizations may strive to achieve maturity scores rather than improve effectiveness and efficiency of the process Assessments can be very labour intensive Although an assessment attempts to be objective, the results are still the opinion of the assessor 30/11/2011 CSI Improved - How ITIL 2011 will benefit IT 15

16 Type of assessment internal or external Advantages Disadvantages Internal - External Objectivity Expert knowledge Broad exposure to multiple IT organizations Analytical skills Credibility Minimal impact to operations No expensive consultants Self-assessments available for free Promotes internal cooperation and communication Good place to get started Internal knowledge of environment Can repeat exercise in future at minimal cost, using newly acquired skills Cost Risk of acceptance Limited knowledge of existing environments Improper preparation affects effectiveness May not be there to see it through to the end witness the results, good or not Lack of objectivity (internal agendas) Little acceptance of findings Internal politics Limited knowledge or skills Resource intensive Assessment often needs a fresh set of eyes Detracts from the day job 30/11/2011 CSI Improved - How ITIL 2011 will benefit IT 16

17 Method Don t assume knowledge Plan the initiative carefully Raise awareness to alleviate fears Organization chart Rooms and meetings Capturing data Interview service provider staff at all levels You need to prepare questions but do not be restricted by them Be wary of what they say Interview customers 30/11/2011 CSI Improved - How ITIL 2011 will benefit IT 17

18 Method Seek confirmation of findings In documentation By attending meetings Following or initiating the process By observing 30/11/2011 CSI Improved - How ITIL 2011 will benefit IT 18

19 Consideration of required maturity levels 30/11/2011 CSI Improved - How ITIL 2011 will benefit IT 19 Crown Copyright 2007 Reproduced under licence from OGC

20 Output Prioritized list of recommendations for improvement input to the CSI Register Roadmap for improvement Regular assessment of changing current situation Full re-assessment every 1 or 2 years 30/11/2011 CSI Improved - How ITIL 2011 will benefit IT 20

21 30/11/2011 CSI Improved - How ITIL 2011 will benefit IT 21

22 CSI register CSI register will record all the improvement opportunities It will be a coordinated and consistent view of the many improvement opportunities Each opportunity should Be categorized by size (amount of effort) Be defined as a long, medium or short term aim Show the benefits that will be achieved Have a priority (against the other opportunities) 30/11/2011 CSI Improved - How ITIL 2011 will benefit IT 22

23 CSI register (cont.) CSI register (possible fields) Opportunity number Date raised Size (small, medium, large) Timescale (short, medium, long) Description Priority KPI metric (n% reduction in failures) Justification Raised by To be actioned by Date required by 30/11/2011 CSI Improved - How ITIL 2011 will benefit IT 23

24 Return On Investment Sounds like a good idea is no longer an acceptable way of making a decision of whether or not to proceed with an improvement Organizations today want to see a solid business case for expending resources on improvement This, however, can present some challenges Limited experience in identifying measurable benefits Lack of understanding about the difference between a benefit and ROI Tangible and intangible benefits are difficult to distinguish no intrinsic value in a service Success criteria are inadequately identified or measurement is not straightforward Failure to progressively measure and monitor benefits and returns 30/11/2011 CSI Improved - How ITIL 2011 will benefit IT 24

25 ROI Examples for ITSM Average incident costs the business 50 By using problem management techniques we can reduce repeat incidents by 10 per week 10*50*52 = 26,000 per year Reduce failed changes by 40% by better process and testing 1,000 changes per month 10% fail = 100 reduction = 40 changes Average cost of failed change = 2,500 * 12 = 30,000 per year 30/11/2011 CSI Improved - How ITIL 2011 will benefit IT 25

26 Value chain If IT wants to show that it has added value, it must link its activities to where the business realizes value Value added Value realized 30/11/2011 CSI Improved - How ITIL 2011 will benefit IT 26 Based on OGC ITIL material. Reproduced under licence from OGC

27 What needs to be considered? The business objectives The business/it alignment Organizational change Clear ownership for the processes Integrated technology Evidence of success (CSFs and KPIs) IT value is measured by the success of the business 30/11/2011 CSI Improved - How ITIL 2011 will benefit IT 27

28 The ITIL lifecycle The better the strategy the more cost effective delivery will be The better the design the less the need for rework The better the transition the less chance of failure The better the operation the happier IT customers will be The better the CSI activities the better the business will be Vernon Lloyd /11/2011 CSI Improved - How ITIL 2011 will benefit IT 28

29 Any Questions 30/11/2011 CSI Improved - How ITIL 2011 will benefit IT 29

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