ITIL: Continual Service Improvement Course 02 Continual Service Improvement

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1 ITIL: Continual Service Improvement Course 02 Continual Service Improvement

2 Lesson Slide 1 Introduction to CSI Topics Discussed CSI & the Service Lifecycle Managing Across the Lifecycle Purpose Objectives Scope CSI Model Business Questions for CSI Value

3 Slide 2 CSI & the Service Lifecycle Service Strategy Design, development & implementation Service Design Design & development Service Transition Development & improvement Service Operation Delivery & support Continual Service Improvement Create & maintain value

4 Slide 3 Managing Across the Lifecycle Strategy Design Improve Seven Step Improvement Process Operation Transition

5 Slide 4 Purpose, Goals & Objectives of CSI Purpose To improve alignment of IT services to business needs Goals Cost-effective delivery of IT services Objectives Seek improvement opportunities Review service level achievements Identify & implement improvement activities Ensure the use of quality management methods

6 Slide 5 Scope of CSI Service Management Lifecycle Service Strategy Service Design Service Transition Service Operation Metrics Service Process Technology 7-Step Improvement Process

7 Slide 6 Value of CSI Service outcome perspectives Improvements Benefits Return on Investment (ROI) Value on Investment (VOI) Intangible benefits Organizational competency Integration between people & processes Reduced redundancy Minimized lost opportunities Regulatory compliance at reduced cost & risk Rapid reaction to change Transition Improve Operation + Improve + Operation + Improve Design + Transition + Operation + Improve Strategy + Design + Transition + Operation + Improve Value and the ITSM Lifecycle

8 Lesson Slide 7 Principles of CSI Topics Discussed Principles CSI Approach Organizational Change Ownership CSI Resister Drivers Service Level & Knowledge Management Deming Cycle Service Measurement 7-Step Process Governance

9 Slide 8 Principles of CSI Principles CSI Approach Organizational Change Ownership CSI Register Drivers Service Level & Knowledge Management Deming Cycle Service Measurement 7-Step Process Governance What is a Business Case?

10 Slide 9 CSI Approach What is the vision? Vision, mission, goals & objectives Where are we now? Baseline assessments Where do we want to be? Measurable targets How do we get there? Service & process improvement Did we get there? Measurements & metrics How do we keep going? Did we get there? The CSI Approach How do we get there? What is the vision? How do we keep going? Where do we want to go? Where are we now?

11 Slide 10 Business Questions for CSI What is the vision? Business Vision, Mission, Goals & 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? Measurement & metrics Copyright AXELOS Limited 2014 All rights reserved. Material is reproduced under license from AXELOS Limited.

12 Slide 11 CSI & Organizational Change Improving IT Service Management is more than Process Technology Improving IT Service Management is about People Organization Improving IT Service Management means Organizational change Understanding how work is done Structured approach to changing how it s done It is about transforming IT and the organization IT Transformation

13 Slide 12 Ownership Ownership Keys Accountability To Ensure Success Responsibility Ensure Adoption & Sustainability Authority Power to Influence or Persuade

14 Slide 13 CSI Register Record all improvement opportunities Categorize Opportunities Small Medium Large Document benefits Register as part of the Service Knowledge Management System Record measured achievements Provide consistent view of improvement activities

15 Slide 14 Drivers External State & Federal Regulation State & Federal Legislation Competitors Customers Markets Economics Internal Organizational Structures Culture Ability to Absorb Change Staffing Architecture

16 Slide 15 Service Level Management IT as a Service Provider Business/IT Alignment Service Level Requirements Internal Service Portfolio Service Catalog of IT Capabilities Baseline for Service Level Agreements (SLA) Operating Level Agreements (OLA) Formal Service Improvement Plans (SIP) Business Case Articulate Reasons to Improve

17 Slide 16 Knowledge Management DIKW Model Data Information Who, What, When & Where? Knowledge How? Wisdom Why? Enables better decision making Knowledge Management comprises a range of practices used by organizations to identify, create, represent, and distribute knowledge for reuse, awareness and learning. - Wikipedia

18 Quality Improvement Slide 17 PDCA & Continual Improvement Deming Cycle Plan Do Check Act Applicable to A CSI program A Service IT Service Management Processes A C A P A P C D A P C D P C D D Consolidated Gains Time The Deming Cycle Plan, Do, Check, Act (PDCA) Dr. Deming & Quality

19 Slide 18 Value of Benchmarking Provides outside view of organization s quality Compared to competitors As viewed by customers Identifies gaps in people, process or technology Drives competitive edge when results are positive Serves as catalyst for prioritizing process improvements Profiles quality in the market Boosts employee self-confidence & pride and motivates & ties employees to organization Generates trust from customers that organization is quality IT service management provider

20 Slide 19 Service Measurement Establish a baseline Value to the business 7-step improvement process 1. Strategy for improvement 2. Define measurement 3. Gather data 4. Process data 5. Analyze information & data 6. Present & use information 7. Implement improvement Metrics & measurement 6. Present & Use Information 7. Implement Improvement 1. Strategy for Improvement The 7-Step Improvement Process 2. Define Measurement 3. Gather Data 5. Analyze Information & Data 4. Process Data

21 Slide 20 Baselines Establishes starting reference point Strategic baselines Goals & objectives Tactical baselines Process maturity Operational baselines Critical Success Factors Key Performance Indicators

22 Slide 21 Metrics & Measurement Metric types Technology metrics Process metrics Service metrics Critical Success Factors (CSF) Key Performance Indicators (KPI) Tension metrics Goals & metrics Integrate with organizational metrics Measuring Risk

23 Slide 22 7-Step Improvement Process 1. Strategy for Improvement 7. Implement Improvement 2. Define Measurement Act Plan 6. Present & Use Information Check Do 3. Gather Data 5. Analyze Information & Data 4. Process Data Copyright AXELOS Limited 2014 All rights reserved. Material is reproduced under license from AXELOS Limited.

24 Slide 23 Governance Governance is about exerting control Enterprise governance Spans corporate & business governance Corporate governance Transparency & accountability Management of risk IT governance Control over IT service lifecycle Enterprise Governance Corporate Governance (Conformance) Accountability (Assurance) Business Governance (Performance) Value Creation (Utilization) Enterprise Governance is the set of responsibilities and practices exercised by the board and executive management with the goal of providing strategic direction, ensuring that objectives are achieved, ascertaining that risks are managed appropriately and verifying that the organization's resources are used responsibly Information Systems Audit &Control Foundation, 2001

25 Slide 24 Frameworks, Models & Quality Systems Frameworks ITIL, CobiT, PMBoK, Prince2 Models CMM, CMMI, escm Standards ISO 20000, ISO , ISO , ISO 15504, ISO Quality Systems Six Sigma & Lean Six Sigma (DMAIC) Define, Measure, Analyze, Improve, Control

26 Slide 25 Role Definitions Differentiates between Two Groups Production CSI Manager, Service Manager, Service Owner, Process Owner, Process Manager, Process Practitioner, etc. Project Program & Project Management, Executive Sponsors, Process Owners, Process Manager & Design Teams

27 Lesson Slide 26 CSI Summary Topics Discussed CSI Summary Checkpoint Quiz Checkpoint Answers

28 Slide 27 Continual Service Improvement Summary Purpose To improve alignment of IT services to business needs and realignment of IT services as needs change. Goals Cost-effective delivery of IT services. Objectives - Seek improvement opportunities, review service level achievements, identify & implement improvement activities, and ensure the use of quality management methods. Principles Scope Processes Continual Improvement using PDCA CSI Model Measurements in Continual Improvement KPIs, baseline & metrics Metric types technology, process, service Service Management Lifecycle Service Strategy Service Design Service Transition Service Operation Metrics service, process, technology All processes All phases of ITSCM Lifecycle Value Continual Service Improvement provides value to the business by validating previous decisions, directing activities to meet targets, justifying that a course of action is required, and intervening with corrective action.

29 Slide 28 CSI Checkpoint

30

31 Review Questions: 1. Which lifecycle stage(s) are most closely related to the Continual Service Improvement stage? A. Service Operation and Service Transition. B. Service Transition and Service Design. C. Service Design and Service Strategy. D. All of the above. 2. Why is it important to establish a baseline to perform Continual Service Improvement? A. To establish a Charging system. B. A baseline allows results to be compared against it. C. To identify service targets. D. To perform an assessment. 3. What are among the prime objectives of Continual Service Improvement? A. It seeks to improve process efficiency and effectiveness, and it provides guidance on how to improve services in the other Lifecycle stages. B. It seeks to ensure that charging revenue equals IT spending. C. It looks at internal strengths and weaknesses and external threats and opportunities. D. To maximize the benefit to the business by making a change while minimizing the risks associated with making changes. 4. How does active monitoring and measuring provide direct value to the business? A. By looking at strengths, weaknesses, opportunities and threats. B. By validating previous decisions, directing activities to meet targets, justifying a course of action, and intervening for corrective actions. C. By comparing service utility to service warranty. D. By creating service reports directly from tools. 5. Which projection of value encompasses investment savings, changes in state, monetary results, and savings percentage vs. investment cost? A. Improvements B. Benefits C. Return on Investment (ROI) D. Value on Investment (VOI)

32 6. What are the three types of metrics? A. Technology, process, service. B. Technology, process, user. C. Performance, process, user. D. Daily, weekly, monthly. 7. The CSI Approach asks six basic questions associated with the fundamental steps of an improvement cycle. Each cycle establishes a new baseline from which the Service Provider can compare results that: A. Validate previous decisions B. Direct activities in order to meet set targets C. Justify factual evidence or proof that a course of action is required D. Intervene for subsequent changes and corrective actions E. All of the above 8. The CSI Register is a database or structured document that records all of the improvement opportunities identified. It is part of A. Configuration Management Database B. Service Knowledge Management System C. Configuration Management System D. The DML 9. Which of the following statements is CORRECT? A. The Deming Cycle is used primarily as a quality assurance tool B. The 7-Step Process implements the PDCA approach to improvement C. The 7-Step Improvement process was the predecessor to the Deming Cycle D. Deming simplified the 7-Step Improvement process to come up with the PDCA Cycle

33 10. Which of the follow statements is CORRECT? A. Baselines represent CSFs and KPIs at the operational level B. Baselines measure the Service Providers existing results in supporting the achievement of desired business outcomes C. Baselines are used to measure process maturity at the tactical level. D. Baseline are only used when building a Service Design Package resulting from a chartered Service Improvement E. A, B & C F. A, B & D G. B, C & D H. A, C & D

34 Answer Key: 1. D Each of the other four stages (Service Operation, Service Transition, Service Design, and Service Strategy) uses the Continual Service Improvement processes. 2. B A baseline establishes a reference point against which the results of a Continual Service Improvement plan can be compared. 3. A It seeks to improve process efficiency and effectiveness, and it provides guidance on how to improve services in the other Lifecycle stages. 4. B Measuring and monitoring provides value to the business by validating previous decisions, directing activities to meet targets, justifying a course of action, and intervening for corrective actions. 5. D Value on Investment (VOI) encompasses ROI, the monetary benefits, and the long-term improvements to identify the additional value they create. 6. A Technology consists of component metrics, process consists of Critical Success Factors (CSF) and Key Performance Indicators (KPI), and service consists of end-to-end metrics. 7. E Each cycle establishes a new baseline from which the Service Provider can compare results that validate previous decisions, direct activities in order to meet set targets, justify factual evidence or proof that a course of action is required and Intervene for subsequent changes and corrective actions. 8. B Service Knowledge Management System. 9. B The 7-Step Process implements the PDCA approach to improvement.

35 10. E Baselines represent CSFs and KPIs at the operational level. Baselines measure the Service Providers existing results in supporting the achievement of desired business outcomes. Baselines are used to measure process maturity at the tactical level.

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