SESSION 504 Thursday, November 2, 11:30am - 12:30pm

Track: The Specialist

Agile + BRM + ITIL = What You Need To Be Cloud-Ready!

Maureen Jesuthasan Senior IT Strategist, Virtustream maureen.jesuthasan@virtustream.com

Session Description You can run an entire business from the cloud, but there;s no guarantee it will be successful if you limit your focus to technology requirements. Before you say "IaaS, SaaS, and PaaS," you should focus on the following four letters: ITIL. This session will show IT business leaders and their teams the value of developing a process framework prior to engaging in technical planning. You’ll get the definitions, concepts, core elements, and skills to develop an effective strategy to implement a cloud-based, services-centric IT organization via the ITIL service strategy best practices.

Speaker Background Maureen Jesuthasan is a senior IT strategist for Virtustream, with more than twenty-three years of IT service operations experience in a variety of roles. She;s a solutions-oriented professional with a dedicated career of analyzing, designing, and facilitating the implementation and operational acceptance of business solutions and their supporting technology platforms. One of three finalists for the Pink Elephant 2012 Practitioner of the Year Award, Maureen is a certified ITIL Expert and also holds certifications in PRINCE2 and Lean IT.

ITIL+ BRM + Lean IT + Agile = What You Need to be Cloud Ready

Introduction

Maureen Jesuthasan, Senior ManagerWest Monroe Partners, Energy & Utilities

Emailmjesuthasan@westmonroepartners.com

LinkedInhttps://www.linkedin.com/in/maureenjesuthasan

Certifications• ITIL Expert• Lean IT Professional• Lean Six Sigma Green Belt• Business Relationship Management Professional

Overview

• Purpose

• The Cloud: What Is It?

• Let’s Get Cloud Ready!

• Planning For Success

• Resetting the Vision: Putting It All Together

Purpose

• Provide a recommended strategic approach to potential Customers who are contemplating a Cloud services transition

• Provide business case as to why a blend of complementary frameworks and methodologies is best when developing a long-term, Cloud strategy

• ITIL (Service Strategy Lifecycle)

• Business Relationship Management (BRM)

• Lean IT

• Agile (Delivery & Development)

The CloudBenefits (….if implemented well)

Agility

Shorten IT projects resulting in fewer FTEs to deliver the project

and a quicker and more predictive time-to-market

Innovation

Utilizing or combining “always ready” services can result in new and innovative business models,

generating new value propositions and resulting in new revenue

streams

Reduction of Operational Issues

Utilizing standardized services can significantly reduce issues

and defects

Resource Management

More efficient projects and fewer operational issues allow your

employees to spend their time on other more useful activities

Operational Savings

Standardize products and releases. Reduces the need for spending operational dollars for

“fire fighting” purposes

The CloudFinancial Benefits (….if a strong partnership between the Business & IT exists)

* IDG Global Survey, Sponsored by EMC, of 905 IT Executives-September 2015

• IT costs reduced by an average of 24% over non-cloud environments

• 40% of that savings total was reinvested back into Business to support new initiatives

• Customers that follow this model are 3Xs more likely to achieve their individual digital transformation goals*

The CloudWhat It is Not (.…if implemented poorly)

Ensures Fast Performance 100% of the Time

The speed of the connection between where you access your data and where it is stored in your cloud

might not be as fast as the high speeds you may be used to with an

on-site server

An effort that is limited to just the Virtualization of servers

Not true! Success in the cloud relies on the development of a strategic plan that

requires the on-going partnership of both the Business & IT

A Quick Ticket To Operational Cost Savings

Focusing on achieving hard cost savings alone can limit the full

potential of the cloud. Investigate how additional value can be achieved via

the elimination of waste

An Immediate Answer to all Data Security Needs

Depending on the global design of the cloud, a company has to be aware of

data privacy laws of the countries that will host the presence of virtual servers

The Challenge

What is the best way to go from “Point A” to “Point B”?

• Is the journey to the Cloud yet another IT project or is it something more?

• How can a ‘technology’ project support the strategic objectives of the Enterprise?

• What are the pitfalls that should be avoided?

In Other Words, ……”Where Should We Begin?”

Let’s Get Cloud Ready!Building a Strategy

“The essence of strategy is choosing what not to do…”,

Michael Porter, Economist, Researcher, Author, Advisor, Speaker & Teacher at Harvard Business School

Step One: Choose Not to Make the Journey to the Cloud Yet Another “IT Project”

Let’s Get Cloud Ready…But How?

Service Portfolio

Management

Demand Management

Business Relationship Management

Financial Management

ITIL Service Strategy Lifecycle

ITIL Service Strategy Lifecycle

Result: IT Was Not Meant To Live By ITIL Alone!

• A well balanced theory for developing a strategic roadmap

• Explains the classification of logic of Strategic, Tactical or Operational services through Service Portfolio Management (SPM)

• Identifies the key roles

• Tends to be overlooked• Primary focus is positioned towards the Service

Transition & Service Operations lifecycle(s)

• IT strategy often deviates from Business strategy due to immature Demand Management best practices

• Misconception (on ITs part) of which services deliver strategic value

• Does not provide a roadmap on how to roll-out the processes within the lifecycle

LimitationsAdvantages

Planning for SuccessWhat Do We Need To Realize Success?

Service Portfolio

Management

Demand Management

Business Relationship Management

Financial Management

The Foundation

• Establishes Continual Improvement Mindset• Enables Continual “Flow” Lean IT

• How Work is Managed & Prioritized• Work is Performed in Small, Bundles Agile

Supporting Frameworks, Methodologies & Disciplines

Purpose

ITIL Service Strategy Lifecycle

Business Relationship Management• Catalyst for the Transition of an Ad-hoc Provider to

that of a Strategic Partner• Ensures Alignment of ‘True North’ Values

BRM ExplainedAs a Discipline

As a Discipline, Business Relationship Management embodies a set of competencies (knowledge, skills, behaviors) that foster productive, value producing relationships between a provider and the business units they serve*

Demanding Shaping

• Purpose: The process by which possibilities for using the provider’s services within the business are surfaced and capitalized upon

• Goal: Identify a set of possibilities that will create the most value for the organization

• Special Note: Also referred to as Demand Management

Value Harvesting

• Purpose: Ensures the success of business change initiatives

• Goal: Track and review performance, identify ways to increase the business value from business-provider initiatives and services, and initiates feedback that triggers continuous improvement cycles

Servicing

• Purpose: Coordinates resources, manages Business Partner expectations, and integrates activities in accordance with the business partner-provider partnership

• Goal: To ensure that business partner-provider engagement translates demand into effective supply requirements

Exploring

• Purpose: identifies and rationalizes demand • Goal: Sense business and technology trends

to facilitate discovery and demand identification. An ongoing process that aligns analysis of new business, industry & technology insights that could produce new, value-added outputs

* Reference: “Business Relationship Management Professional”, Pink Elephant. February 2017

BRM ExplainedAs a Role

As a Role, the Business Relationship Manager is a connector and translator

between a Provider organization and a Business

Unit by constantly Connecting, Orchestrating and Navigating

Business demand*

Connector

Objective: Facilitate productive connections and mobilize Projects & Programs

Benefits• Business: Stimulate, shape

demand while raising IT savvy

• IT: Ensure appropriate supply

Orchestrator

Objective: Orchestrate capabilities to drive value from Provider services

Benefits• Business: Coordinate and

aggregate demand• IT: Orchestrate key provider

roles

Navigator

Objective: Facilitate Business-Provider convergence

Benefits• Business: Facilitate business

strategy & road mapping• IT: Guide Architecture,

Portfolio & PMO

* Reference: “Business Relationship Management Professional Slide Book”, Pink Elephant. February 2017

Business Relationship Management (BRM)How Does it Support Service Portfolio Management (SPM)?

The purpose of the Service Portfolio Management (SPM) is to ensure that an organization can manage costs and risks associated with a Service Portfolio, while meeting the performance expectations of its partners.*

The SPM process acts as both gatekeeper and monitor for service and technology investments, while BRM provides the business partner interface.

Gatekeeper: SPM ensures that all new requests undergo a rigorous vetting and review process prior to their entry into the services pipeline This intake process requires a formal business case be submitted, analyzed, and approved in alignment with IT/business strategy.

Monitor: SPM defines and manages several strategic service artifacts that clarify this linking of business drivers with technology, including service models, service charters, and links to business outcomes.

Result: The interplay between these two areas is perhaps the most critical combination in the ITIL framework

As defined by BRM Institute, the purpose of the Business Relationship Management (BRM) capability is to “…stimulate, surface and shape business demand for a provider’s products and services and ensures that the potential business value from those products and services is captured, optimized, and recognized.”

Business Relationship ManagementService Portfolio Management

* Reference: “Leveraging Your BRM Capability with ITIL® Service Portfolio Management Process”, BRM Institute. April 2017

Do not confuse Service Portfolio with Service Catalog! Ensure that all strategic supporting services are acknowledged within the Service Portfolio prior to developing the Service Catalog!

Business Relationship ManagementMyth or Reality?

CIO Magazine: State of the CIO 2017

• The 2017 CIO Sentiment Survey shows that more than one out of three CIOs expect to introduce products out of IT that drive new business and allow their companies to compete in new markets

• To facilitate this shift, IT shops are partnering with their business counterparts to bridge the gaps between talent and teams

• An influx of business knowledge enables IT to better understand what the business needs from their systems and data*

Reference: CIO Magazine: "State of the CIO 2017: The New Reality, 'Hero’s Merge From Ones & Zeros'", February 21, 2017

Strategy Planning What is Your “True North”?

• True North is a Lean IT way of thinking

• It is the overarching value system of the Enterprise and is determined by the Business

• Serves as the “guiding compass” that defines the strategic direction of Enterprise

• Ideally, everyone throughout the Enterprise should support the “True North” value system

Adherence to True North Values Increases the Integrity of BRM & SPM

Why Lean IT?

The inclusion of Lean framework helps to “animate” the foundational approach of the ITIL Service Strategy lifecycle by providing the “how to direction” which brings the ITIL body of knowledge to life

• The “Voice of the Customer” is the driving force that determines what is Critical to Quality

• Value-added (i.e. strategic supporting) services are documented via Value Stream Maps (VSM) and are continuously reviewed to identify opportunities for improvement• Work is conducted via a model of pre-defined steps that never deviates

from the standard• The definition of Continual service Improvement is transitioned away from that

of a another ITIL process but that of a way of life (i.e. Kaizen Mindset)• Waste removal supporting activity is incorporated into resource

management plans• Reliance on visual management (i.e. Kanban) to support on-demand reporting

and identification of bottlenecks• Resource management is enhanced by identifying Work In Progress (WIP) limits

Lean IT Cultures Enable Continuous “Flow”

Performing Work With PurposeBeing Agile (And What Exactly Does That Mean?)

Agile

Definition: The ability to create and respond to change in order to succeed in an uncertain and turbulent environment.

Agile Software Development

Definition: An umbrella term for a set of methods and practices based on the values and principles expressed in the Agile Manifesto

Goal: Solutions evolve through collaboration between self-organizing, cross-functional teams utilizing the appropriate practices for their context

In it’s early form, Agile emphasized a close collaboration between application development teams and their aligning business stakeholders which resulted in frequent delivery of business value (i.e. code).

Since then Agile has evolved to include multiple methodologies as influenced by the parent approach.

* Reference: “Agile 101”, Agile Alliance

Definition: The practice of translating the needs of a group and its members to process improvements and provide new offerings that result in delivered change to the organization. Agile delivery methods can be used to complete work that does or does not involve technology.

Goal: Work outputs are built around a value stream, which commonly touches several business functions.

Agile Delivery

The Perfect PairingBRM & Agile (Development & Delivery)

Successful BRM teams partnered with effective Agile teams will produce the best results

BRM As Navigator

• Strong business relationship management will ensure that “the ship” is moving in the right direction of True North values

• Effectiveness is measured by leadership in both the enabling business functions

• The BRM team owns value for investment at the highest levels of business functions and on behalf of executive leaders and investors of the organization. *

Agile as Tactical\Operational Partner

• Alignment with BRM will ensure that strategic vision will be translated into value-added outputs

• An effective Agile team’s work aligns to company strategy

• Product Owners correctly focus on successful delivery by their team; whereas, BRM support will ensure alignment with longer-term roadmaps

• BRMs are able to span Agile teams to ensure the delivery of roadmaps and blueprints via value added outputs

* Reference: “A Perfect Union: BRM and Agile Development and Delivery”, BRM Institute. April 2017

Resetting the VisionRecreating the Strategic & Operational Support Models

The important and constant focus the organization should have on value

• Re-organize existing services into an overall Service Portfolio, which aligns with the Mission-Vision-Intents-Outcomes of the Enterprise

• Establish a “bi-modal” management approach for IT, which is the practice of managing two separate but coherent styles of work

• One half of the organization focused on predictability (i.e. operations); the other on exploration (i.e. strategy)

• Empower the BRM to focus on strategic activities such as shaping the current & future needs of the Customer

• Evolve the roles of the Technical Architect to conduct Tactical in addition to Operational activities that align back to True North focus

• Adopt the Agile Delivery method for all work that requires validation from the Customer

• The BRM serves the “diplomat” between the Customer & Technical Architect and the ensures that the work is placed into the pipeline

• The Technical Architect owns the validation process and works with their Customer counterpart

Operations

Program Management(Initiatives)

Service Management Governance

Service Team #1

Service Team #2

Service Team #3

Processes

Measurements

Service Portfolio Management (Strategic Services)

Strategy

Mission

Vision

Intents

Outcomes

TRUENORTH

Purpose

Major Objective

Enabling Components

Measureable Future Achievements

Business Oriented Agile Teams

Decision Authority

ConclusionParting Thoughts

Identify the True North of Your Corporate Culture

• Review the Corporate Mission-Vision-Intents-Outcomes statements and annual reports

• Is IT aligned with the value system?

Establish a Bi-Modal Culture

• Adopt a BRM approach to ensure that strategic intents are being realized via tactical & operational outputs

• Determine if BRM engagement is best handled via an Enterprise, Line of Business, Business Process or Geographical perspective

Financial Gains

• Baseline your current costs to measure your success over time

• Acknowledge the added value of eliminating “waste”, not just hard cost savings

Tool Time

• Once you have “figured out’ your path, then (and only then!) understand the tool suites that are available to you

• Understand how the tools are deployed and used to create a best practice cloud implementation strategy

Establish a Well-Defined Service Portfolio

• Entries should be specific to Business Services that support the strategic vision of the Enterprise

Appendix

Resources• Business Relationship Management Institute (BRMI): https://brm.institute/

• BRM Training: https://brm.institute/professional-development/

• Lean IT Association (LITA): http://www.leanitassociation.com/

• Agile Alliance: https://www.agilealliance.org/

Articles• CIO Magazine: "State of the CIO 2017: The New Reality, 'Hero’s Merge From Ones & Zeros'",

February 21, 2017

• BRM Institute : “A Perfect Union: BRM and Agile Development and Delivery”, April 2017

References