service management strategy / changegroup

ChangeGroup Flæsketorvet 68 DK-1711 København V

Telefon: +45 3332 7778 [email protected] www.changegroup.dk

SERVICE MANAGEMENT STRATEGY



SERVICE MANAGEMENT STRATEGY ROADMAP

Karsten Grinderslev

Owner STEPS AHEAD



AGENDA

•  Why Service Management?

•  What is a Service Management Strategy? – Why have one?

•  Status today?

•  Possible strategy output?

•  Business alignment

•  Service Management scope (Business Services)

•  A simple SMS road map

•  What’s in it for me?



CV

•  IT Service Management, Strategy, Operation, Outsourcing, Tools, Processes, Change and Project Management

•  Management since 1998: •  CTO, Compaq outsourcing (2000-2002) •  CTO, Ministry of Science… (2003-2005) •  Service Director, Danisco (2005-2012)

•  Owner, Steps Ahead since 2013: •  Service Management (tools, processes, maturiy and xBU distribution) •  Project/program management •  Outsourcing •  ChangeGroup consultant



WHY DON’T WE…?

•  Cross business units measure all out services?

•  Communicate with out users/customers in the most efficient way?

•  Share knowledge in a structured and more efficient way?

•  Focus on driving down ’ticket’ volume?

•  Systematically analyze and uptimize processes?

•  Work to change cost units into value add units?

•  See all business units as service providers? •  and act accordingly?



WHY SERVICE MANAGEMENT?

Service Management

Evolution at snail pace



WHAT IS A SM STRATEGY?

•  Service Management is managing the services delivered by one or more business units – or company – to it’s users/customers.

•  The Service Management Strategy (SMS) describes goals and how to meet the defined goals for the services in scope.

•  The SMS is an underlying strategy to the company strategy and /or business unit strategy.



WHY HAVE A STRATEGY?

•  Becuase: •  A strategy align deliverables to the business

strategy •  The strategy define goals and provide a path to

goals •  A strategy tells you what to do – and that not to

do! •  Measureable goals allows you to deliver KPI

status and adjust •  A visible ”all inclusive” strategy – driven by top

management – matures the organisation •  Benchmark with comparable organisations

becomes possible

The goal of the SM strategy is to support the business strategy in the most efficient way and thus be a value add rather than a cost centre



TWO MODELS

•  Two models exist: 1.  A cross BU Service management strategy 2.  A BU Service management strategy

Business

Business Unit

Service management

Department: A - B - C



MODEL I

The purpose of the Service Management strategy is to support the business objectives at a required well defined service level in a cost-efficient manner.

How to organize (example) •  All BU services are shown in the general Service catalogue •  SLA is approved by management board and included in each service in service catalogue •  All Service requests are managed via the shared SM platform (Service catalogue) •  Each BU has a support organisation supporting the services in scope (or shared service org.) •  The BU support organisation use the shared SM tool, processes and guidelines •  The BU deliver the level of service described in the SLA •  Shared reporting and dashboard services



WHY DIFFICULT TO IMPLEMENT? •  Does it make sense? •  Why has no one done it? •  What are the main obstacles?

•  No focus from CEO and board? •  No business case? •  Reluctance to change? •  “We don’t want to be measured!” •  “You cannot compare HR/Finance services to IT service!”

But isn’t Service management just:

The users or customers needs services

The service provider deliver the services as agreed

Satisfactory services = efficient users/customers



MODEL II

Each business unit may/may not have a SMS.

The strategy may not exist and/or differ from other BU strategies

Today’s services (examples) •  HR: Local HR is available via phone Monday-Friday 9-16. No SLA •  Finance: Finance requests are forwarded to a shared mailbox. No SLA •  Facility services: Local FS is available via phone Monday-Friday 9-12. •  Marketing: Find someone in Marketing who can help you! •  IT: 24x7 Servicedesk, SLA on all tickets, application availability, infrastructure, end user computing etc.



STATUS TODAY?

•  Less than 10% have a Service Management strategy!

•  Most mature BU’s: IT, Finance, HR, Facility Services

•  Some have fragments of a strategy (IT best in class) •  SLA compliance, End-user satisfaction, 1st call resolution rate

•  Development at slow pace last 10 years (IT) •  Growing # of shared services (HR, Finance, IT) •  Improved tools – more user friendly •  ITIL processes matured •  More business process focus •  Horizontal scope developed

•  Waiting for the business to tell us what they want! •  Many companies without an IT Strategy, SLA, etc.



HOW IS THE MARKET EVOLVING?

•  Cost of services are in focus – value for money •  Outsourcing always an option

•  Deliver service in the most efficient way •  Demand for automation •  Increasing self service •  Better and more efficient support channels •  Alignment cross BU’s •  New support channels (FB, Twitter)

•  Services / applications / products = simplified and aligned

•  Services moves to the cloud •  IBM estimate 50% in 2017

•  IT budget moves to the business •  IBM estimate 80% owned by the business in 2020



POSSIBLE OUTCOME?



POSSIBLE OUTCOME?

•  More automated processes will provide: •  Lower cost / request •  Faster resolutions (more efficient users, more satisfied users, incident reduction, reduced

delivery cost)

•  Push knowledge to the users will provide: •  More self service will allow users to find information faster (24x7) •  eLearning will mature users, increase efficiency and reduce IT cost

•  Share services cross Business units will: •  Unify/align service processes (reduce cost/maintance, share reporting) •  Reduce operational cost (all use same platform/application) •  Provide common service catalogue (simplify user access)

•  Maturity will secure focus on the strategy, CSI and Business •  Increased focus on business understanding and requirements •  Knowing what not to do



IT STRATEGY ! ITSM STRATEGY

Business Strategy HR

Finance

Marketing

Procurement

Legal

Etc

IT Strategy Operation

Application

Service Management

Servicedesk Operation Application



THE IT STRATEGY

Horizontal ITSM strategy

Ope

ratio

n

App

licat

ion

Dig

ital

plat

form

s

Ser

vice

desk

Ons

ite

supp

ort

Vend

or

mgm

t

Fina

nce

Vision & Mission

Governance

Architecture

Operation & Infrastructure

ITSM

Project

Vendor & Partnership

Sourcing

IT Strategy

ITSM Strategy is one of many

components in the IT Strategy

Focus



BUSINESS ALIGNMENT

Competitive advantage • High quality products • Efficient low cost delivery

Process innovation • Optimizing business processes • Maximize automation

Operational excellence • Live cockpit information • Zero incidents • Best in class

New Markets & Channels • Grow AP by 25% • Include Africa ($1B)

Competitive advantage • Upgrade SAP v 12.5 • Provide onsite support at critical plants

Process innovation • Commit to build BPO office • Map process landscape and optimize

Operational excellence • BI/Cockpit solution • Develop business incidents cockpit • Establish IT Academy

New Markets & Channels • Secure IT scalability • Establish AP/Africa support org.

Business Strategy IT Strategy SM Strategy Competitive advantage • Deliver 24x5 SAP support Q2-15 • 24x5 onsite support in India, China, SA – Q4-15

Process innovation • Create IT process team • Support SM process usage cross business units

Operational excellence • IT Academy training in min. 50% business application in 2015

• >90% in 2016

New Markets & Channels • Secure IT scalability Q3 2015 • Setup onsite org. in AP Q3 2015

What will the IT strategy do to support the business strategy?

What will the SM strategy do to support the IT and the business strategy?



THE STRATEGY BREAK DOWN - I Business Strategy

Increase employee efficiency

IT Strategy • Provide Academy platform • Reduce # IT support tickets • Automate support process • Better support channels

SM Strategy • Build Academy platform. With HR create eLearning sessions on most

important business applications (Q4 2015) • Create Problem Management team – reduce # tickets by >5% (end Q4

2015) • Build Service catalogue and automate request/Incident handling where

possible. More than 5% automated (end Q3 2015) • Deliver 24x5 chat support (Q2 2015). More than 20% user tickets via chat

(end Q4 2015)

IT Operation • Build eLearning platform according to

specs. before end Q1 2015 • KPI: Availability >99,5%, Incidents

<5/month, daily backup with 95% success (from Q4 2015)

IT Application Services

• With HR configure eLearning application (ready end Q2 2015)

• Develop support process (end Q3 2015)

• Create eLearning modules (with identified business teams) – ready 1. Dec 2015

IT Servicedesk • PM: Create PM team, define goals and make plan.

Execute plan – measure, report • SC: Appoint responsible. Analyze processes, make

automation/marketing plan, execute, measure, etc • Chat: Appoint responsible. Define scope, make

implementation and marketing plan, execute, measure, etc



THE STRATEGY BREAK DOWN - II

Servicedesk manager Responsibility: Overall responsible Tasks: Appoint responsible within SD,

define scope, approve project plan, follow up on progress, make necessary org. changes, report progress to strategy board

Appraisal: Part of appraisal and bonus programme

IT Servicedesk • PM: Create PM team, define goals and make plan.

Execute plan – measure, report • SC: Appoint responsible. Analyze processes, make

automation/marketing plan, execute, measure, etc • Chat: Appoint responsible. Define scope, make

implementation and marketing plan, execute, measure, etc

Project responsible Responsibility: Deliver chat functionality (using

existing Lync application) to all users and secure it’s being used as planned

Tasks: 1.  Create PID, project plan, RACI, training plan etc. 2.  With Marketing create marketing/communication

plan 3.  Execute plan and report as agreed with SD manager Appraisal: Part of appraisal and bonus programme

SD employee Responsibility: Use chat as describes in role

description. Support increasing use of chat Tasks: 1.  Login to “Chat support” when on duty 2.  When communicating with user first try

chat 3.  Encourage users to use chat Appraisal: More than 15% tickets closed

using chat



SUMMARY Business => IT Strategy mapping •  Goal 1 •  Goal 2 •  Etc…..

ITSM Strategy •  Goal 1 •  Goal 2 •  Etc…..

Projects •  Project 1 •  Project 2 •  Etc…..

Business <> IT SLA •  Agreed services •  Agreed Service levels

Behavioural changes •  Departments •  Teams •  Individuals



SM STRATEGY EXAMPLES

End user satisfaction >95%

From Q2 2015

1st call resolution rate >70% Q4 2015

Gold appl. availability >

99,95%

Problem management reduce tickets >5% per year

Problem management reduce tickets >5% per year

Silver appl. availability > 98,50%

From Q1 2015

Onsite support solves < 15% of all tickets

Q3 2015

Successful Changes > 90%

Language support (DK, UK, DE, FR, ES) available Q4-2015

Chat via Service catalogue available

Q2 2015

Academy training platform available

Q3 2015

Project HR ITSM platform -

available Q4 2015

Project Finance ITSM platform -

available Q4 2015

Weekly SLA reports to business stake holders

Q3 2015

>80% support via Service catalogue

Q2 2016

Master Business SLA signed

Q3 2015

End user satisfaction survey process implemented

Q2 2015 8x5 direct SAP 2nd

level support channel implemented

Q2 2015

Servicedesk chat support (Lync) implemented

Q4 2015 1st call resolution

rate >60% Q2 2015



THE SM ROADMAP Describe & scope the Strategy

Describe Services

Finance and

resource overview

Create business

case

Prioritize and

Approve

Plan & Execute

Measure Adjust

Change (CSI)



•  Appoint SMS owner

•  Define organisation

•  Setup SMS board (IT/Business)

•  SMS board workshop (1/2 - 1 day) •  Map services to IT strategy goals •  Discuss SM goals (pro/con) •  Business value (where/whom?) •  Output: SM strategy draft (v/1)

DESCRIBE & SCOPE

Describe & scope

the Strategy

Describe Services

Finance and

resource overview

Create business

case

Prioritize and

Approve

Plan & Execute

Measure Adjust

Change (CSI)



•  Detailed description per service incl.: •  Resources needed (=> capability mapping) •  User/customer involvement •  Describe the service (purpose and expected

outcome)

•  Workshop with team: •  Define the service process •  Define service delivery team(s) •  Tool requirements/adjustments •  Test scenarios + plan •  Measurable goal(s) •  Reporting requirements •  Complete ”Service template”

DESCRIBE THE SERVICES

Describe & scope

the Strategy

Describe Services

Finance and

resource overview

Create business

case

Prioritize and

Approve

Plan & Execute

Measure Adjust

Change (CSI)



•  Investment needed (SMS owner): •  Internal resources

•  IT capabilities •  Business capabilities

•  External resources •  Tools •  Marketing •  Maintenace •  Other?

•  Ressource investment overview

FINANCE AND RESOURCES

Investment 2015 Cost Per year (+2016)

IT internal IT external Business

100 hrs 30 hrs

N/A

50.000 dkk 30.000 dkk

5.000 dkk

Tool 0 dkk

Maintenance 0 dkk

Marketing (internal) 30 hrs 15.000 dkk

TOTAL 95.000 dkk 5.000 dkk

Describe & scope

the Strategy

Describe Services

Finance and

resource overview

Create business

case

Prioritize and

Approve

Plan & Execute

Measure Adjust

Change (CSI)



1.  Workshop: Service value (IT<>Business)

2.  Investment required (previous task)

3.  Outcome •  Cost change in IT/Business •  Value add:

•  Users, IT (efficiency) •  Customers

4.  Complete business case incl.: 1.  Hard value (netto cost +/-) 2.  Soft value (business value) 3.  Pay back time and assumptions & prerequisite 4.  Recommendation

CREATE BUSINESS CASE

Describe & scope

the Strategy

Describe Services

Finance and

resource overview

Create business

case

Prioritize and

Approve

Plan & Execute

Measure Adjust

Change (CSI)



EXAMPLE

Service “Automate Hire process”

Volume Cost Saving How to measure cost savings

Investment + 3 yrs service 110.000 dkk

Servicedesk efficiency: Service use/year = 500 Saving/service = 200 dkk

300.000 dkk Save 0,25 FTE in Servicedesk

Customer value: Service use/year = 500 Saving/service = 100 dkk

150.000 dkk ??

Pay back time < 10 mth

Net value (3 year period) 340.000 dkk



SMS board and business representatives

1.  Prioritize services 1.  Mandatory services 2.  Other services (business value – effort – cost)

2.  Map services to budget

3.  If needed – adjust services in scope to meet budget – or adjust budget

4.  Obtain CIO approval (optional CFO)

PRIORITIZE AND APPROVE

Describe & scope

the Strategy

Describe Services

Finance and

resource overview

Create business

case

Prioritize and

Approve

Plan & Execute

Measure Adjust

Change (CSI)



EXAMPLE

Service Type Cost 2015 Cost 2016 Business value per year

Pri

Infrastructure Mandatory - running 1M dkk 1M dkk High 1

Service catalogue New service (all) 0,25M dkk 0,1M dkk 250.000 dkk 2

Service “Hire process” New service (HR) 110.000 dkk 0 110.000 dkk 2

Service “SD availability” Extended service (IT) 100.000 dkk 100.000 dkk ? 4

Service “BYOD support” Mobile support 100.000 dkk 100.000 dkk Medium 3

Service XX ….



1.  Appoint PM 2.  Define implementation team (RACI) 3.  Allocate resources 4.  Create project plan (all services in scope) 5.  Describe tasks 6.  Identify stakeholders 7.  Create communication plan 8.  Obtain approval ----------------------------------- Execute project plan

PLAN & EXECUTE

Describe & scope

the Strategy

Describe Services

Finance and

resource overview

Create business

case

Prioritize and

Approve

Plan & Execute

Measure Adjust

Change (CSI)



1.  As defined in project plan: •  Measure results •  If deviations, prepare recommendations •  Resport to SMS borad

2.  Adjust if needed and approved by the the board 3.  Adjust SMS scope accordingly 4.  Communicate to stakeholders if scope change 5.  Update Service catalog

MEASURE / ADJUST / CHANGE

Describe & scope

the Strategy

Describe Services

Finance and

resource overview

Create business

case

Prioritize and

Approve

Plan & Execute

Measure Adjust

Change (CSI)



WHAT’S IN IT FOR ME? Role Possible outcome Business (CEO, board) •  IT service delivery aligned to business needs

•  Possibility to Influence service scope and level •  Cost transparency •  More efficient organisation

End users •  Increased efficiency •  Better and faster support •  Service level visibility

Customers •  More likely that Service will meet customer expectations

CIO •  Business & IT strategy transparency •  Knowing what NOT to do •  Align IT services to business needs and obtain business approval •  Easier to benchmark

Servicedesk manager •  Clear goal definitions •  Knowing what NOT to do •  Easier to map Servicedesk goals to individual goals (FTE) •  Easier to define service catalogue

CTO •  Better Knowledge sharing •  More efficient operational processes (ITIL) •  Move more tickets to ServiceDesk

IT Consultant •  Identify new “customers” •  Reuse IT experience in other BU’s •  Increase experience with other BU’s



Q & A