connecting itsm to it governance
DESCRIPTION
IT governance helps customers and providers talk about value, costs, and risks–three key components in the definition of an IT service. IT service management can support IT governance by making IT more transparent, by adding control points for governance, and by better connecting what IT does to what the institution most needs. Conversely, IT governance can support IT service management by advocating for IT services and by providing a high-level decision-making framework, firm commitments, policies, and architectural standards. We’ll briefly review what IT governance is, and then talk about the role of specific IT service management processes in supporting IT governance–processes such as IT service portfolio management, IT financial management, IT supplier management, IT change management, and IT continual service improvement. We’ll also briefly introduce how COBIT 5 can help ITIL practitioners connect service management capabilities to IT governance.TRANSCRIPT
JOHN BORWICK, MANAGER AND FOUNDERHIGHER EDUCATION IT MANAGEMENT, LLC
Connecting ITSM to IT Governance
http://www.heitmanagement.com/itilcg2014
John Borwick, PMP®, ITIL® Expert
Wake Forest University, 2003-2012 Director of Service
Mgt PMO Director
Manager and Founder,HEIT Management
Career goal: Make people’s lives easier by improving how higher education IT is managed.
Higher Education IT Management, LLC
One-on-one coachingCustom engagementsBlogNewsletter
http://www.heitmanagement.com
Agenda
Background: ITSM, IT governancePreparing for an IT governance meeting
Providing visibility and transparency Understanding and explaining IT costs Understanding value Understanding risks Responding to IT governance concerns
Ways IT governance can help ITSMCOBIT as a reference sourceQ&A
Background: IT service management
IT service management (ITSM)
Organizations: itSMF, HDI, ITIL CGGuidance: ITIL®, ISO 20000Certifications (for people): ITIL
foundations, ITIL intermediate certificates, ITIL expert
ITIL’s definition of a service
“A service is a means of providing value to customers by facilitating outcomes they want to achieve without the ownership of specific costs and risks.”
Specific costs Specific risks
Hardware support needs to be renewed
Database administrators need to go to training
IT tool stops working due to a software patch
Water leak in the data center
Examples of specific costs and risks
Background: IT governance
Aside: what is “governance?”
Board of Trustees
IT governance
Organizations: ISACA, IT Governance Institute
Guidance: ISO38500, Implementing and Improving IT Governance, …
Certifications (for people): CGEIT® (Certified in the Governance of Enterprise Information Technology)
IT governance fundamentals
Cost
Value
Risk
IT providers own costs and some risks
Cost
Value
Risk
IT consumers own value and some risks
Cost
Value
Risk
IT Consumers IT Providers
ValueTime saved in
recruitingImproved candidate
qualityRisksPeople
understanding the technology
CostsOS licensesTime spent on
maintenanceRisksHardware failureUnanticipated
demand
Example: Admissions CRM tool
IT governance depends on effective IT management practices
IT governance cannot make decisions in a vacuum
IT governance will push you to improve processes
Build improvement loops: Make and communicate guesses based on what you
have Plan for incremental improvements from meeting to
meeting
Preparing for an IT governance meeting
Multiple IT governance groups
Board-level IT
governance ?
Cabinet-level IT
governance
Academic IT governance
Administrative IT
governance
Visualize a cabinet-level IT governance meeting
ProvostCFODean(s)CIOVP, Alumni RelationsVP, Facilities
http://www.flickr.com/photos/89228431@N06/11080482376/
Providing visibility and transparency
Service catalog management
Business service catalog, or “Lines of Service”
Use the language of the catalogHighlight existing IT work
70%
30%
Operations vs. En-hancements
OperationsEn-hance-ments
Service catalog reports:demand by department
Service # incidents # requests # changes
Business intelligence
87 220 85
Desk-side support
350 103 9
Web site support
20 30 20
… … … …
IT service catalog report for Finance for CY2013Q4
Service portfolio management
Add service information to your project portfolio reporting
Raise the visibility for ongoing IT support costs
Service pipeline report
Project Status Line of service
Customer(s)
Net impact to IT operations
Admissions CRM tool
In progress,On schedule
Administrative services
Admissions +1 IT FTE
Virus scanning tool
In progress, Behind schedule
Desk-side support
All departments
-0.5 IT FTE
… … … …
Understanding and explaining IT costs
Service level management
Define and approve a global service level Access to the Service Desk Next-business-day response
Build “tiers” of service Gold: 24x7x365, one hour response Silver: 24x7x365, four hour response Bronze: 9x5, next business day response
Costs of service by tier
Tier Cost
Gold $300,000
Silver $200,000
Bronze $150,000
• Email service:
• Customers pay for exceptions
IT financial management
Translate the IT budget into IT service costs
Non-personnel Direct costs (e.g. server hardware for the LMS) Indirect costs
Personnel “Billable hours” vs. overhead
IT costs by service
Service Costs (budgeted) Service level
Administrative support
$300,000 Gold
Web site support $150,000 Silver
Reporting $300,000 Bronze
Personnel set-aside for project work
$250,000 --
Total operating budget $1 million
Understanding value
Business relationship management
Proactive customer meetingsBriefings to CIO and IT leadership
Customer satisfaction reports
Reports by Service Desk contact Service Desk to end users
Reports by service Business Relationship Management to the service’s
customersOverall IT satisfaction reports
Business Relationship Management to campus
Demand management
Working with customers to understand demand
Influencing demand, e.g. through marketing
Understanding risks
Service Design “warranty” processes
Availability managementCapacity managementIT service continuity managementIT security management
Provide “levers” to IT governance
Disaster recovery for the Learning Management System has not been done. Options:
1. $0: All records lost if there’s a fire2. $100k/yr: Records stored off-site; returning
the service to production would take 2 weeks and $500k
3. $1 million + $100k/yr: Records stored off-site and a “hot standby” environment will be ready
Responding to IT governance concerns
Service Improvement Programs (SIPs)
Standard process for improvingRaises the visibility of service improvements
Ways IT governance can help ITSM
Ways IT governance can help ITSM
SponsorshipAdvocate for the language of IT servicesFocus on the customer
COBIT as a reference source
Control Objectives for Information and related Technology (COBIT)
Organization: ISACAGuidance: COBIT 5 (and many
supplementary publications)Certifications (for people): COBIT 5
Foundation, COBIT 5 Implementation, COBIT 5 Assessor
COBIT 5’s processes
37 processes including governance processes: EDM01 Ensure Governance Framework Setting and
Maintenance EDM02 Ensure Benefits Delivery EDM03 Ensure Risk Optimisation EDM04 Ensure Resource Optimisation EDM05 Ensure Stakeholder Transparency
APO09: Manage Service Agreements
APO09.01: Identify IT servicesAPO09.02: Catalogue IT-enabled services
Inputs include an “approved resources plan” from IT governance
APO09.03: Define and prepare service agreements
APO09.04: Monitor and report service levelsAPO09.05: Review service agreements and
contracts
APO09 “Related Guidance”
ISO/IEC 200005.0 Planning and implementing new or changed
services6.1 Service level management
ITIL V3 2011Service Strategy, 4.4 Demand ManagementService Strategy, 4.2 Service Portfolio ManagementService Design, 4.2 Service Catalogue ManagementService Design, 4.3 Service Level Management
Review
Background: ITSM, IT governancePreparing for an IT governance meeting
Providing visibility and transparency Understanding and explaining IT costs Understanding value Understanding risks Responding to IT governance concerns
Ways IT governance can help ITSMCOBIT as a reference source
Q & A
http://www.heitmanagement.com/itilcg2014