delivering professional it services: change, an underestimated value

7th South East Europe ITSM Conference7th South East Europe ITSM Conference

Delivering Professional IT Services: Change, an Underestimated Value

Harris Apostolopoulos BEng(Hons), MSc, EMBA, PhDcStrategic PM & Business Development [email protected] 05 Feb 2015

In Brief

Many organizations deliver significant change through formalprojects, and the failure to ensure that projects address the full ServiceManagement and operational requirements as well as the functionalrequirements can be a costly, and risky for an organization.

Service Transition ensures that the transition processes are streamlined,effective and efficient so that the risk of delay is minimizedeffective and efficient so that the risk of delay is minimized.

Where there is major change there will be complexity and risk. Thereare usually many interdependencies to manage and conflicting prioritiesto resolve, particularly as new and changed services transition and go live.

Service Transition takes into consideration aspects such as organizationalchange and adaptation of the wider environment in which they operatechange and adaptation of the wider environment in which they operatethat would influence an organization’s use of the services and theassociated risks (ITILv3 Service Transition, p.3).

Agenda

Significance11

22 Change Management

Ch d Ri kCh d Ri k33

44 Summary

Change and RiskChange and Risk

Significance

• Market needs are constantly changing; leadership, communication, strategic businessplanning, flexibility, speed, cultural adaptation and change management are morethan mandatory.

• Too much emphasis is given on deliverables or outcomes (e.g. Service capabilities),or to the related processes (the way things have to be done).

• Uncontrolled changes regardless of size and complexity, can certainly pose risks, ofit d t j t d ff t j t i ti ’any magnitude, to projects and affect project success or even an organisation’s

coherence.

S ifi ll “S i T iti b t ti bl i t t i• Specifically “Service Transition best practices can enable improvements to servicesand Service Management capability by ensuring that the introduction, deployment,transfer and decommissioning of new or changed services is consistently wellmanaged” (ITILv3 Service Transition, p.3).g ( , p )

Services Life Cycle

Service Design

Service Strategy DesignStrategy

Service Transition

Continual Service

Improvement

Service Operation

p

The ITIL® Core

Changes can happen during the whole services life cycle…

Change Definitions / Key Terms

• Change(Service Transition) The addition, modification or removal of anything that could have aneffect on IT Services The Scope should include all IT Services Configuration Itemseffect on IT Services. The Scope should include all IT Services, Configuration Items,Processes, Documentation, etc.

• Change Management(Service Transition) The Process responsible for controlling the Lifecycle of all Changes(Service Transition) The Process responsible for controlling the Lifecycle of all Changes.The primary objective of Change Management is to enable beneficial Changes to bemade, with minimum disruption to IT Services.

• Change Model(Service Transition) A repeatable way of dealing with a particular Category of Change. AChange Model defines specific pre-defined steps that will be followed for a change of thisCategory. Change Models may be very simple, with no requirement for approval (e.g.Password Reset) or may be very complex with many steps require approval (e g majorPassword Reset) or may be very complex with many steps require approval (e.g. majorsoftware release).

• Request for Change(Service Transition) A formal proposal for a Change to be made. An RFC includes details(Service Transition) A formal proposal for a Change to be made. An RFC includes detailsof the proposed Change, and may be recorded on paper or electronically.

Change Management

Changes arise for a variety of reasons:g y

• Proactively, e.g. seeking business benefits such as reducing costs or improving services or increasing the ease and effectiveness of supportg pp

• Reactively as a means of resolving errors and adapting to changing circumstances

Changes should be managed with a view to:g g

• Optimize risk exposure (supporting the risk profile required by the business)• Minimize the severity of any impact and disruptionMinimize the severity of any impact and disruption• Be successful at the first attempt

(ITILv3 Service Transition, p.42)

Change Process Flow


Changes Implementation to services through Service Transition (Service Portfolio Example)

Policy:All changes to the Service Portfolio or service catalogue are implemented throughC S

( p )

Change Management and the changes that are managed by the Service Transitionlifecycle stage are defined and agreed.

P i i lPrinciples:

• A single focal point for changes to the production services minimizes the probability ofconflicting changes and potential disruption to the production environmentconflicting changes and potential disruption to the production environment.

• People that do not have the authority to make a change or release into the productionenvironment should be prevented from having access.

• Familiarity with the Service Operations organization enhances mobilization and• Familiarity with the Service Operations organization enhances mobilization andenables organizational change.

• Increasing knowledge and experience of the services and production environmentimproves efficiency.p y


Changes Implementation to services through Service Transition (cont.)

Principles:p

• Each release package will be designed and governed by a Request for Changeraised via the Change Management process to ensure effective control andg g ptraceability.

• Standardized methods and procedures are used for efficient and prompt handling ofall changes, in order to minimize the impact of change-related incidents on business

ti it i lit d kcontinuity, service quality and re-work.• All updates to changes and releases are recorded against service assets and/or

configuration items in the Configuration Management System.


Best Practices

• The definition of a change is clearly definedg y• Internal and external changes are differentiated• Changes are justified through the development of a clear Business Case• Changes to services are defined in a Service Design Package that Service TransitionChanges to services are defined in a Service Design Package that Service Transition

can use to measure the actual vs predicted progress and performance.• The existing Change Management process may need to be standardized and

enforced.• Management commitment to enforcing the process is essential, and it must be clearly

visible to all stakeholders.• Configuration auditing aims to identify unauthorized changes• Do not accept late requests for changes that cannot be properly managed


Risk(s)

• Potential risks can be found everywhere. The difficult part in not only to identify them(hidden risks is more difficult to be found) but also to control them.

• Risk : A possible event that could cause harm or loss, or affect the ability to achieve objectives (Service Transition v.3, p.243).

• A simplistic definition of risk in terms of probability of occurrence is:

Risk = Probability x Impact

• Change and Risk management integration seems necessary

Top five Change Risks

• ‘By managing changes, you manage much of the potential risk that changes y g g g , y g p gcan introduce’

The top five risk indicators of poor Change Management are:p p g g

• Unauthorized changes (above zero is unacceptable)• Unplanned outagesp g• A low change success rate• A high number of emergency changes• Delayed project implementationsDelayed project implementations


Changes are associated to Risks

Risks have a tendency to grow exponentially with time if left unmanaged

Risk Profile

Risks have a tendency to grow exponentially with time if left unmanaged.

Drake (2005a, 2005b), cited via Service Transition v.3, p.143

The Seven Rs of Change Management

The following questions must be answered for all changes...

What is the REASON for the change?

What is the RETURN required from the change?

What are the RISKS involved in the change?

What RESOURCES are required to deliver the change?

Who is RESPONSIBLE for the build, test and implementation of the change?

What is the RELATIONSHIP between this change and other changes?What is the RELATIONSHIP between this change and other changes?

No change is without risk, changes have to be evaluated monitored & controlled!


The Emotional Cycle of Change


Change Categories Classification

Depending on a plethora of classifications, change can be categorised but notlimited to as:

• Individual• Organisational

• Rules / Regulations • Continuous / Discontinuous

• Structural / Restructure• Cost cutting• Process

• Evolutionary (step by step)• Revolutionary (drastic)• Strategic

• Cultural• Technical • System

• Transformational• Risky / Controlled / Monitored• Technological

• Planned / Unplanned• Remedial

• Developmental• Proactive / Reactive

Project Change Curve

source: http://www.leanhrm.com/change.html

Kotter’s Change Model

Error #1: Not Establishing a Great Enough Sense of Urgency

Error #2: Not Creating a Powerful Enough Guiding Coalition

Error #3: Lacking a Visiong

Error #4: Undercommunicating the Vision by a factor of Ten

Error #5: Not Removing Obstacles to the New VisionError #5: Not Removing Obstacles to the New Vision

Error #6: Not Systematically Planning for and Creating Short-Term Wins

Error #7: Declaring Victory Too Soon

Error #8: Not Anchoring Changes in the Corporation’s Culture

Kotter, J. P. (1995). Leading Change: Why Transformation Efforts Fail. Harvard Business Review (March-April), 1-10.

SummaryService Transition ensures that the transition processes are streamlined, effective and efficient so that the risk ofdelay is minimized.11

22Where there is major change there will be complexity and risk.

22

33 The existing Change Management process may need to be standardized and enforced. Management commitment toenforcing the process is essential, and it must be clearly visible to all stakeholders.The existing Change Management process may need to be standardized and enforced. Management commitment toenforcing the process is essential, and it must be clearly visible to all stakeholders.

44Since change and risks cannot be avoided services stakeholders have to take into account the levels of risk theycan tolerate. By managing changes, you manage much of the potential risk that changes can introduce.

The primary objective of Change Management is to enable beneficial Changes to be made with minimum disruption

As a ground rule, try not accept late requests for changes that cannot be properly managed..As a ground rule, try not accept late requests for changes that cannot be properly managed..

55

66

The primary objective of Change Management is to enable beneficial Changes to be made, with minimum disruptionto IT Services.

g y p q g p p y gg y p q g p p y g

“I do not believe you can do today’s job with yesterday’s methods and be in business tomorrow”

Nelson Jackson

Delivering Professional IT Services; Change an Underestimated Value

Th k Y !Questions?

Thank You!

[email protected]

delivering professional it services: change, an underestimated value

Leadership & Management