servmngmntoffice startup kit

2011-2012 Plexent 972-381-0077 www.plexent.com

Service Management Office

Start-Up Kit

Table of Contents 2 Introduction

3 8 Steps to Implementing a Service Management Office

15 Get Started

17 About Plexent

Plexent 2011-2012

2011-2012 Plexent 2 972-381-0077 www.plexent.com

Introduction

8 Steps to Implementing a Service Management Office (SMO)

The primary role of the SMO is to provide delivery of high quality technology infrastructure management (both strategic and tactical) to internal customers. And, at the highest level, the Service Management Office is tasked with nurturing an internal network of champions at the executive level of the enterprise so the entire company understands the role of (and costs associated with) corporate technology.

So, recognizing the need, how does an IT manager go about establishing a Service Management Office?

1. Develop a SMO vision and mission. It is important to understand the difference between a vision and a mission. A vision shows the long term goal or view of the SMO and is used to define how the SMO will operate or exist in the environment within which they function or would like to function. A mission defines their purpose, or to put it more clearly, it describes their reason for being

2. Create a SMO Charter. The purpose of the SMO charter is to define the scope, objectives and participants of the SMO. It provides an initial guide that outlines why the SMO has been created i.e. their purpose, their areas of influence and governance, their overall role in the organization and their level of authority.

3. Define SMO roles and responsibilities. Its critical to develop clarity regarding roles within the SMO. Well-defined leadership structures and reporting relationships will be of great help in seamlessly integrating the office into the hierarchy of the IT organization. Cross-functional and supporting roles must also be defined.

4. Determine which processes to implement. To get the complete benefit from IT Service Management, all of the processes should be moved into operation together. However, for the majority of organizations this is an impracticable and unrealistic approach to take. So, how does the SMO determine which processes to implement and in which order?

5. Create actionable policies, processes, and procedures. Many of the functions of a SMO are likely being handled by other work groups within the IT organization. In many cases, it will simply be a matter of reassigning existing process and procedures to the SMO. However, these processes then need to be refined to ensure consistency with the vision of the office, and eliminate redundancy with other functions in the IT organization.

6. Establish a communications plan. Inform the rest of the enterprise (and your own department) what the roles and responsibilities of the office will be, and the impact on provision of IT services. Good internal marketing is the key to success in properly communicating the SMOs vision and policies. Most important: it must be clear that the SMO is an enabler of IT services, not a gate keeper or barrier to these services.

7. Develop metrics. Its impossible to quantify SMO success, or areas for improvement, without metrics and internal customer feedback mechanisms.

8. Commit to continual service improvement. A continual service improvement process gives managers a framework for actually implementing process changes in areas where improvements are necessary.

At the end of the day, a Service Management Office should streamline processes and enhance enterprise efficiencies.


8 Steps to Implementing a Service Management Office

1. Develop a SMO Vision and Mission As the organization responsible for inspiring quality, a vision and mission must drive the SMO team

members. This, in turn, will inspire the organization.

Where there is no vision, the people perish -Proverbs

Before diving in, it is important, however, to understand the difference between a vision and a mission. A

vision shows the long term goal or view of the SMO and is used to define how the SMO will operate or

exist in the environment within which they function or would like to function. A mission defines the purpose

and describes the reason for the SMOs being.

A vision changes as the needs and goals for the

business change, whereas a mission is more

static. For example, the mission of a

pharmaceutical company may be to provide an

economic solution to the costly provision of life

saving drugs. However, over the course of the

companys lifetime, while this mission may remain

at its core the company may have numerous

visions that are determined by their customer

base, desire to grow and outside influences:

Vision 1 (Customers) To be the number one

choice for lifesaving drugs by clinics and hospitals

throughout the United States within the next three

years.

Vision 2 (Growth) To support missions and clinics

in third world countries by providing economic, yet

clicincally proven, solutions to pharmaceutical challenges.

Vision 3 (Outside Influences) To help our customers cost effectively provide lifesaving medication in

todays challenging economic climate.

The SMO vision should be created with the requirements of your customer base in mind. You should also

consider any organizational development i.e. strategy, immediate or long term, and any external factors that

may influence the SMOs role. The SMO should also determine how frequently to review the vision, based

on organizational dynamics.

A well defined vision statement can help provide:

Direction

Motivation

Action

Stimulation


2. Create a SMO Charter

The purpose of the SMO charter is to define the scope, objectives and participants of the SMO. It provides

an initial guide that outlines why the SMO has been created including its purpose, areas of influence and

governance, overall role in the organization and level of authority.

A crucial component of the charter is a business case. This provides the justification and value proposition

for the existence of the SMO.

The SMO charter is typically a short

document that is supported by more

comprehensive documents such as those

that detail roles and responsibilities, metrics,

policy and process creation etc.

The charter should be broad enough that it

can remain unchanged as the SMO evolves.

It can also act as an anchor throughout the

life of the SMO, providing them with a focus

point for discussions and disputes.

As a communication tool, it plays an

important role, as it can be used to help sell

the SMO to the rest of IT and, more

importantly, to the business.

The charter must have an executive sponsor, ideally the CIO. The role of the SMO sponsor is outlined in

section 3. Define SMO Roles and Responsibilities.

Typical contents of a SMO Charter:

SMO Definition

Purpose of the SMO including a business case

SMO vision and mission

SMO scope

SMO objectives

SMO team and a brief description of each role

Photo: Art Es Anna


3. Define SMO Roles and Responsibilities Its critical to develop clarity regarding roles within the SMO. Well-defined leadership structures and

reporting relationships will be of great help in seamlessly integrating the SMO into the hierarchy of the IT

organization. Cross-functional and supporting roles must also be defined.

Consider writing an expectations document for all SMO members, regardless of role. This document or

simple list will set the tone and expectations for the teamwork that must occur in order for the Service

Management Office to thrive.

Example: Role of an SMO Team Member

Understand the strategic implications of any process implemented

Appreciate the significance of a process for all major stakeholders and ensure the interests of those

stakeholders are well represented

Have a broad understanding of the challenges the customer organization may face in adopting any

of the processes

Ensure the process meets and continues to meet business requirements

Assist with conflict resolution around process priority and the resources allocated for each process

Provide guidance to process managers and users of

the process

Consider and review any ideas for process

improvement

Submit ideas for process improvement

Ensure processes are being adhered to and that

corrective action is taken where necessary

Ensure the purpose and need for both the SMO and

the processes are well communicated throughout the

organization

Ensure the effectiveness and efficiency of the

processes are reported to the SMO and executive

management


SUGGESTED ROLES

ROLE DESCRIPTION

SMO Sponsor The SMO sponsor is an executive level role and acts

as the figure head of the SMO, rather like the chairman

of a board of directors. The SMO Sponsor is not

usually involved in the day to day running of the SMO,

and, instead, focuses on championing the SMO and

helping to obtain financial support (budget). Also acts

as an escalation point for disputes and problems. The

SMO Sponsor can provide valuable input for the

business case (see SMO Charter) and can help

actively promote the SMO.

SMO Director The SMO Director will chair the SMO and has the

overall responsibility for the Service Management

Program by ensuring that best practice is adopted and

sustained throughout the organization. Accountable for

the success of Service Management in the

organization.

Process and Function Owners for all

processes and functions implemented

in your organization. Examples include

but are not limited to:

Service Level Management

Incident Management /Service

Desk

Financial Management

Change Management

Problem Management

A process/function owner is accountable for ensuring

that a process is being performed according to the

agreed and documented process and is meeting the

aims of the process definition. Each process owner is

responsible for working with the process managers to

define and gather the KPIs for associated area of

responsibility, as well as ensuring any process

improvements identified by the committee are

implemented.

Process Managers for all processes

implemented in your organization.

Examples include but are not limited

to:

Service Level Management

Incident Management

/Service Desk

Financial Management

Change Management

Problem Management

A process manager is responsible for the day to day

management of a process. Should ensure the specific

process activities are being performed correctly across

the organization. Works closely with the process

owners to define and gather the KPIs for area of

responsibility. Audits the process on a basis agreed

with the SMO and should audit for compliance,

effectiveness and efficiency. Provides regular updates

to the SMO on the success of the process.


4. Determine Which Processes to Implement To get full benefit from IT Service Management, all of the processes should, ideally, be moved into

operation together. However, for the majority of organizations, this is an impractical approach to take, and is

not best practice. So, how does the SMO determine which processes to implement and in which order?

The first activity the SMO should undertake to help make this determination is to conduct a detailed

assessment. The assessment will help to identify the existence or absence of any key processes, as well as

the strengths and weakness of the organization as a whole. A good assessment can not only provide this

information but it can also provide a detailed roadmap for process implementation and cultural change.

The difficulty comes when determining the type of assessment to use. There are a number of assessments

available ranging from short, inexpensive self-assessments to lengthy, detailed and expensive ones

performed by a third party. Which one to choose is dependent on a number of factors including time and

budget, so evaluate your options carefully. Also consider whether you want a quick check of the vital

statistics or a complete health checkup. Sometimes both may be appropriate. For example, if

management buy-in for a detailed assessment is difficult to achieve, then being able to prove poor vital

statistics can help make the case for a more detailed and complete checkup.

Likewise, during the prioritization of the recommendations, include review by nonIT stakeholders to ensure

that your roadmap is going to take you where you need to go, without unnecesary midcourse corrections.

In our experience, quicker benefits can be gained by starting with Incident Management, Problem

Management, Change Management, Release Management and Configuration Management. The pain felt

by both the business and IT if these processes are not working properly is often acute. When looking for

health improvement it makes sense to focus on the most painful areas first.

Steps to determine which processes to implement first:

Carry out an assessment of both the processes and the effectiveness of the IT organization in its

support of the business

Do gap analysis on assessment findings

Create set of recommendations based on assessment findings

Prioritize recommendations

Create implementation roadmap


5. Create Actionable Policies, Processes and Procedures

Many of the functions of an SMO are likely being handled by other work groups within the IT organization.

In many cases, it will simply be a matter of reassigning existing process and procedures to the SMO.

However, these processes then need to be refined to ensure consistency with the vision of the office, and

eliminate redundancy with other functions in the IT organization.

Honesty is the best policy. -Benjamin Franklin

A policy is a document that outlines specific requirements or management intentions that must be followed.

With regards to ITSM, policies are usually process specific, covering a single service management area.

For example, a Change Management Policy would cover the rules and requirements on changes within the

IT environment. Do not overlook the requirement to create and use a policy for Service Management itself.

Policies are used to ensure consistency. Generally a policy contains the following:

General: Description, purpose, owner, version, creation/effective date and the last review date

Scope

The policy itself

List of people that reviewed and approved the policy

A process is a document that shows a set of activities with the inputs that initiate each activity and the

outputs generated from those activities. A visual representation (process map) is usually generated to show

the following:

Who is responsible for each activity, via swim lanes

The triggers that would call for the initiation of the process

Defined inputs

The activities/procedures that make up the process

Defined and measurable outputs

Associated governance points where control, regulatory or accepted standards compliance is

monitored

A procedure is document that shows the steps for an activity and feeds into the process.

If a governance department already exists within your organization then the SMO should work closely with

this department and take advantage of their experience, knowledge and skill. They can act as a Subject

Matter Experts (SME) providing assistance regarding content, look and feel of process and SMO

documentation or they may actually be the central control point for ITSM documentation ensuring the

inclusion of all pertinent governance elements.


6. Establish a Communications Plan Good bilaterial communiation is the key to easing any type of organizational change. Following, well

outline the importance of strong communication of key points when adopting a SMO, however, without

abundant opportunities to listen to your stakeholders, your outbound messaging will fall on deaf ears.

Good internal marketing is the key to properly communicating the SMOs vision and policies. Inform the rest

of the enterprise (and your own department) why the organization has been created, what the roles and

responsibilities of the office will be, and the impact on provision

of IT services. Most importantly, it must be clear that the SMO

is an enabler of IT services, not a gatekeeper or barrier to these

services.

For the SMO to reach its goals, a certain amount of cultural and

operational change will be required. Change can only succeed

with the correct use of frequent and appropriate

communication; without it, rumor and uncertainty will be most

likely ensue. When people dont know why, they often make

up their own truths. This often creates fear, uncertainty and

doubt. Communication and messaging will avoid employees'

anxieties and will also aid in getting them to support the

initiative.

Communication is not a

one-time event.

Its an ongoing campaign.


THE COMMUNICATION PLAN

A well-planned and executed communication plan can

help avoid resistance and can even build enough

grass-roots enthusiasm to get much of the

organizations staff contributing to a successful SMO

implementation.

Your communication plan should:

Outline an awareness campaign.

Identify key stakeholders.

Determine the communication objectives for

each group of stakeholders.

Determine a communication strategy for each

group of stakeholders.

Determine the best communication approach

and medium (face to face, email, newsletter

etc.) for each group of stakeholders.

Determine the best time to communicate to each group of stakeholders.

Communicate to each group of stakeholders.

Build a momentum stategy to keep the communication going.

As mentioned earlier, listening is a critical part of the communication plan. Make sure you

incorporate ways to hear your customers. You must create a dialogue with stakeholders, and not fall

into the trap of only TELLING. Inbound communication tips:

Be frequent and ongoing. Dont ask for input once and then stop.

Give opportunities for stakeholders to give input regarding changes.

Give opportunities to provide input in a format that works for your organization. For many of our

customers, facilitated workshops have worked

nicely. Perhaps, suggestion boxes or contests

promoting feedback work better for your team.

Listen more than you tell.

TIP: When determining how to communicate to a particular

group of stakeholders it is beneficial to have a

representative from that group as be part of your team.

GOAL

Right Information to the

Right People at the

Right Time in the

Right Format using the

Right Medium


7. Develop Metrics Its impossible to quantify SMO success, or areas for improvement, without metrics and internal customer

feedback mechanisms.

Metrics tell you where you are, in relation to success or failure, and can

direct you to those areas that need improvement.

Before beginning any form of improvement it is important to establish a

baseline or starting point for later comparison. This can be difficult if

the capability for measurement does not yet exist, however the

outcome of the assessment should provide the SMO with a good

starting baseline until metric capabilities are developed.

The metrics should be products of the SMO vision. Remember that

this vision demonstrates the objectives of the SMO so the metrics

should be used to show how well they are doing in reaching their

goals.

Both the vision and SMO charter are based on business requirements;

therefore the measurements should show how well the SMO is doing

in meeting these needs.

Metrics must be quantifiable.

We often see the mistake of using qualitative rather than quantitative

data as a measurement. There is a big difference between the two, for

example if we were to measure beer:

Use quantitative measurements, as these are not open for interpretation.

WHY MEASURE?

To validate

To justify

To give direction

To intervene

BEER MEASUREMENTS

QUANTITATIVE QUALITATIVE

Amount e.g. 1 pint

Temperature e.g. 45 F

Price e.g. $4

Nice hop smell

Cold

Expensive


METRIC GUIDELINES

Only use metrics that you can actually report.

Dont create too many metrics to start. Keep them to a minimum; five or six balanced key metrics

should suffice. You can add more as your capability and maturity grow.

Metrics should be reported on in regular intervals: weekly, monthly, quarterly, etc. The SMO should

determine the frequency upfront.

Stakeholders should be involved in deciding the content and visual presentation of any metrics that

will be presented to them for their use and benefit.

Post the reports in a location accessible to the stakeholders.

Stakeholders should review the metrics on regular intervals.

There should be a documented management response to the reported metrics.

Remember, the business is typically not interested in metrics, but rather information it can use decisively.

Therefore, use metrics that yield measures in a way that effectively shows the business the value of SMOs

and ITSMs capability to support it.

BUSINESS LANGUAGE SAMPLE METRICS

Reduce costs

Improve customer service

Increase output

Build competitive advantage

Address/meet customer requirements

Meeting/supporting strategic goals

Financial (Revenue, Cost, Margin, etc.)

Business volume

Customer satisfaction

End user response time

Productivity


8. Commit to CSI

While setting up a SMO may be a one-time event, managing the SMO and ensuring it continues to support

the business goals and objectives is an ongoing journeythat requires the development of a culture of

Continual Service Improvement (CSI).

A well-designed and well-managed SMO will ensure the services and processes continue to meet the businesss dynamic and sometimes volatile needs and requirements.

The only thing constant in life is change -Franois de la Rochefoucauld (1613-1680), French author

WHY DOES CHANGE HAPPEN? When change occurs in Service Management, it typically happens for one of three reasons: 1. change in business requirements

2. change in technology

3. external influence such as legislation regulation or evironment

It is also the SMOs responsibility to design the SMO and all processes in such a way that it is relatively easy to adjust to needed changes. To ensure this agility, the SMO should be built so that it:

Is aware of relevant changes.

Is easily adjustable in order to appropriately maximize business benefits.

Has the authority to ensure a managed response.

Ensures that all aspects of a change are considered effectively and efficiently.

Minimizes the effect upon the business and IT when responding to such changes.

The quality of a service, process or the SMO itself is measured by determining how well the services meet your customers expectations. As these expectations change or improvements are realized, the SMO must ensure that metrics and measurements are reviewed, both to show evidence of the improvements, as well as to ensure that the correct metrics and measurements are in place.


CSI CONSIDERATIONS

Continual Service Improvement has no end. CSI is not a crash diet it. Its a culture. If you become complacent after arriving at a given level of improvement you will soon be passed by competing service providers. Be proactive and look for ways in which you can make a difference to the success of your organization. Here are some important items to remember as you move along this path: Accountability - Foster accountability for CSI throughout your organization from the CEO down to the people who clean the building. Everyone has a part to play in your companys success. It cannot fall on the shoulders of one or two individuals. Where appropriate, make use of tools such RACI (responsibility) charts to help achieve this goal.

Morale Employee satisfaction and morale are huge success factors for achieving a CSI culture. Keep your morale high by having clear roles and responsibilities, communicating and celebrating achievements and creating opportunities to contribute ideas and recommendations for improvement.

Compliance A level of control needs to be created around the delivery of services and the processes that support them. This does not mean bureaucracy, but it does mean that a level of discipline is necessary to ensure the agreed level of quality is maintained. Compliance is about acting responsibly and it legitimizes

results through the application of standards. When a standard approach is taken, it is far easier to predict and manage outcomes.

Tolerance to change and risk Different organizations have different tolerance for change and risk, based on the characteristics of their market space and that of their customers. Some are required by the business to make quick changes but manage incremental improvements later, providing a high level of redundancy to ensure quality. Others have a less urgent need for change and take a more conservative and possibly cost efficient approach to improvement. The SMO must be in tune with these aspects and manage to them. CSI is such a crucial part of Service Management that you may want to go beyond the SMO and create a separate CSI team that is made up of some SMO members as well as members of other groups, including customers and users. This team would liaise between these groups and provide an end to end perspective.

Have some level of effort focused on continually improving. Remember that Volatire once wrote, Perfect is

the enemy of good. True.

Youll never be finished, because your organization is constantly changing. Be proactive and look for ways

in which you can make a difference to the success of your organization. Youll be glad you did. Its worth

the effort.

Tip In order to foster ongoing

improvement, consider achieving

an ISO/IEC 20000 certification for

one or more of your IT services.

This standard contains an ongoing

Continual Service Improvement

requirement which will force your

organization to be committed to

improved quality.


Get Started Whatever your approach, and regardless of any limitations, make sure you establish some form of organized Service Management. Know where you want to go as a service provider. Draw a line in the sand and move forward, one step at a time. Are you ready to get started? Here are some additional resources for you.

PLEXENT BLOG

Be sure to subscribe to our blog, as we regularly publish tips and articles regarding SMO adoption.

COMPLIMENTARY SMO STARTUP CONSULTATION We are happy to offer a one hour complimentary Service Management Office (SMO) consultation to help you get started. SMO JUMPSTART WORKSHOP Ready to commit to quality in your IT services by building a Service Management Office? Schedule a SMO Jumpstart Workshop. This one and a half day workshop will help you:

Energize your team by building a common vision for your Service Management Office.

Create your SMO charter.

Get a jumpstart on defining your Service Management Office organizational chart.

Increase the organization's confidence by creating a clear roadmap for SMO adoption.

Weve seen successful Service Management Offices in operation and we know you can do it, too. Best of luck on your quest for improvement.

2011-2012 Plexent 972-381-0077 www.plexent.com

ABOUT PLEXENT

IT improvement & simplification. We arm you to justify IT to the business.

We are rock stars at:

IT measurement and reporting.

ITIL training, Cloud Computing training, ISO 20000 training.

IT improvement consulting.

With strengths in IT service management, ITIL, IT Governance & Compliance, ISO Standards, COBIT, CMMI, software selection and Project Management, we arm IT to drive, motivate and guide the business.

iRunIT is the industrys first business value dashboard software.

We will get you to the finish line of IT improvements in significantly less time for a fraction of the cost.

Plexent lives in Dallas and works globally. For more information, please call +1.972.381.0077 or visit www.plexent.com.

Plexent Headquarters

16479 Dallas Parkway, Suite 140 Addison, Texas 75001 Phone: +1.972.381.0077 Fax: +1.972.381.8150 Web: www.plexent.com E-mail: [email protected] Twitter @plexent.com

SMO Startup Kit is published by Plexent. This material is proprietary and confidential information released with restrictions, and is intellectual property of Plexent, L.P. and contains subject matter that comprises intellectual property of Plexent, L.P., including work(s) that are Copyright 2007-2012, Plexent, L.P. Reproduction, distribution or use without the express written consent of Plexent, L.P. is prohibited. Plexent Trademarks means all names, marks, brands, logos, designs, trade dress, slogans and other designations Plexent uses in connection with its products and services. You agree to comply with the Plexent Trademark and Logo Usage Requirements. You may not remove or alter any Plexent Trademarks, or co-brand your own products or material with Plexent Trademarks, without Plexents prior written consent. You acknowledge Plexents rights in Plexent Trademarks and agree that any use of Plexent Trademarks by you shall inure to Plexents sole benefit. You agree not to incorporate any Plexent Trademarks into your trademarks, service marks, company names, Internet addresses, domain names, or any other similar designations, for use on or in connection with computer or Internet related products, services or technologies. Plexent is committed to respecting others intellectual property rights, and we ask our users to do the same. If you believe your work has been copied in a way that constitutes copyright infringement in anyway, please contact our copyright agent at 972.381.0077. Plexent and itDNA are registered trademarks of Plexent. Plexent owns and holds a license for the use of ITIL copyrighted material with HMSO the administrator of Crown copyright information. ITIL is a registered trademark, and a registered community trademark of the Office of Government Commerce, and is registered in the U.S. Patent and Trademark Office. IT Infrastructure Library is a registered trademark of the Office of Government Commerce in the United Kingdom and other countries.

All ISO publications are protected by copyright. ISO/IEC 20000 and ISO/IEC 27001 are published by the International Organization for Standardization (ISO) and International Electrotechnical Commission (IEC).

servmngmntoffice startup kit

Documents