demystifying itil part 1: itil introduction and...

© 2007 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice

Demystifying ITILPart 1: ITIL Introduction and Overview

Terry LongoITIL/PM/BA Program ManagerHP Education US

© 2007 Hewlett-Packard Development Company, L.P.

Understanding The Context

−Many IT organizations continue to struggle with the goalof alignment to organizational goals and activities

−Pressure continues to increase on IT to deliver value forthe money

− IT must become increasingly agile to meet changingorganizational requirements

− It is common for IT to fall short of meeting theorganization’s needs and expectations, despite IT’ssincere efforts to do so

There is thus the challenge to address the “credibility gap”between IT and the organization.


Identifying the Credibility Gap

IT Infrastructure

I

I

II

I

I

II

I

P

P

P

P

P

P P

C

C

C

C

C

C

C

OrganizationalProcesses

City Depts and Citizens

Services

Governments

Reports

etc.

Otheroutboundactivities

IT Organization

The Gap


Characterizing the Credibility Gap

• The necessity of prioritizing is recognized andaccepted. The lack of framework for effectiveprioritization leads to

• Low customer satisfaction

• Inability to discern what is valuable to do and what is not,leading to wasted effort

• Low quality of changes

• Inefficient use of IT resources (people and infrastructure)

• Expectations that are rarely met

• Difference in perceived vs. actual IT performance

• Lack of understanding about IT’s contribution to the organization

• Project implementations not meeting requirements

• etc.!


Filling the Gap

IT Infrastructure

I

I

II

I

I

II

I

P

P

P

P

P

P P

C

C

C

C

C

C

C



Services

Governments

Reports

etc.


IT Organization

The GapIT Services via IT Service Management


IT Service Management (ITSM)

• ITSM is the “what” for how to close the business/ITgap

• One of the “hows” for “doing” IT ServiceManagement is ITIL

• ITIL is best practices guidance on managing IT


IT Service Management (ITSM)

• At the heart of IT Service Management is thenotion of the IT Service

− IT works with the organization to understand what isrequired in the organization’s terms – IT Servicesand Service Level Agreements based on ServiceLevel Requirements stated in IT’s customers’language

−Then, IT implements, operates, and supports the ITinfrastructure in order to deliver those IT Services toagreed levels of quality and availability


ITIL/ITSM Value

• ITIL/ITSM help IT organizations deliver IT Servicessuch that

• The delivery of IT Services is cost-justifiable

• IT Service quality and availability levels are agreed to,measured, monitored, reported, and reviewed regularly

• The IT infrastructure is managed efficiently (best use ofresources) and effectively (achieving intended results)

• Activities are prioritized relative to organizational value

• Change is controlled to minimize negative impact on ITServices

• IT Services are aligned to and drive organizationalstrategy

Service Culture• Recognition that IT only exists to underpin the objectives of

the organization

• A mission to deliver agreed levels of service

• A willingness to go that ‘extra step’ to satisfy Customer needs

• An understanding of the Customers’ perspective

• Achieving a Service Culture depends on:

– Senior Management support

– A good understanding of why IT Services are being provided

– An understanding of the impact on the organization of poorservice

– Clear targets to aim for, and from which to progress

IT Infrastructure Library (ITIL) Version 2

A set of books & modules, used as acomplete code of best practice for ITService Provision

A roadmap which defines the relationshipsbetween people, processes andinfrastructure necessary for effective ITService provision

The only comprehensive, publiclyavailable guidance on IT ServiceProvision

Developed by the OGC (Office ofGovernment Commerce) - BritishGovernment

International Certification programs

In place since 1986


The Face of ITIL Version 2

IT Infrastructure

I

I

II

I

I

II

I

P

P

P

P

P

P P

C

C

C

C

C

C

C



Services

Governments

Reports

etc.


Service Level Management Service Desk

Other ITIL Processes Overlaying the IT Organization

Tactical Interface:Customers and ITTactical Interface:Customers and IT

Operational Interface:Users and IT

Operational Interface:Users and IT

What is an IT Service (v2)?

• A set of related functions

• provided by IT systems

• in support of one or more parts of the overallorganization

This service can be made up of hardware,software and communication facilities, but isperceived by the customers as a self-contained,coherent entity

Process Orientated Working

Incident &Pro

blemManagement

Change Management

Configuratio

n Management

IT ServicesIT Services

CDB

Service Planning

ADB

CMDB

ProblemManagement

OperationsManagement

(NOC)

Service LevelManagement

IncidentManagement

User

Change Mgmt.

R& I Approve Implement

Service RequestInformation RequestService Outage

incident

RfCCI Registration

EventAutomated T/T

trendedincidents

KnownErrors

Procurement& Asset Mgmt.License Mgmt.

Workstation Mgmt.

•Performance & Capacitymonitor/report•InfrastructureMonitor/Control

ServiceDesk

serv

ice

requests

H/W, S/WDevelopment

Release toProduction Server Provisioning

S/W Control/DistributionPatch Management

Virus S/WPolicies

ReleaseManagement

Security

Availability

Continuity

Capacity

Financial

SLA

1

2

3

4

SWSW SW SW

SWSW SW

Services

1

2

3

4

5

network

Org.Unit A

Employee A1Employee A2

Prioritization &Escalation Rules

12

3

Org.Unit C

Org.Unit B

Service Catalog

DHSDSL

IntakeProcesses

ConfigurationManagement

Customer

ComponentMgmt.

Subsystem &Process Mgmt.

ITas a

business

ServiceMgmt.

ITSM Metrics

Decrease CoS,Increase QoS

SLAs/OLAs/UC

In/On ProcessEffective &Efficient

ComponentThresholds

ThreatsContingencies

ResilienceMaintainabilityServiceability

DemandWorkloadResources

Performance

CostsChargeback

ITSM v2 Framework

The Challenge with Processes

• Processes help to organize work better

• They are aligned to activity and output, notnecessarily to value

• You have to know what you want to achieve, orelse assume that the customer does

• Processes are not strategic

• Bottom line: Managing IT needs more than just aset of processes, people and tools

The Evolution of IT Service Management

Role

ofIT

StrategicPartner

ServiceProvider

TechnologyProvider

Time

Focus: Quality and Efficiency ofIT Processes• IT is a service provider• IT is separable from organization• IT budgets as expenses to control

Focus: Org-IT Alignment& Integration• Service Mgmt for IT and non-IT• Automated and Integrated Operations• Strategy and Portfolio Governance• Continuous ImprovementIT Service

Management

IT InfrastructureManagement

ServiceManagement

Focus: Stability and Control of the Infrastructure• IT are technical experts• IT concerned with minimizing businessdisruption• IT budgets are driven by external benchmarks

ITIL v2

ITIL v3

ITIL v1

Definition of a Service (v3)

A ‘service’ is a means of delivering value to

customers by facilitating outcomes customers

want to achieve without the ownership of

specific costs and risks


The ITIL V3 Structure

Continual ServiceImprovement

ITIL

ServiceServiceStrategies

ServiceOperation

ServiceDesign

ServiceDesign

ServiceTransition

Image Source: ITIL Refresh Project

ITIL V3 Books

Improvementactions & plans

ContinualServiceImprovement

ServiceOperation

OperationalservicesOperational Plans

ServiceTransition

Transition PlansTested solutions

SMKS

ServiceDesign

SolutionDesigns

ArchitecturesStandards

SDPs

Se

rvic

eP

ort

foli

oS

erv

ice

Ca

talo

gu

eIT Customers

ServiceStrategy

StrategiesPolicies

Resource andconstraints

Objectives fromRequirements

Requirements


Business Strategy and Planning, Enterprise Analysis, Portfolio Management, Decision Packages

A Linear View of theRequirements and IT Service Life Cycles

Elicit Analyze Document Validate Assess...VerifyPlan



Service Strategy


Elicit Analyze Document Validate Assess...

Design/Build

Transition Operate Improve

VerifyPlan

Business Strategy /Service Strategy

Alignment

Communication



Service Strategy



Design/Build


VerifyPlan


Alignment

Service CatalogService Pipeline

Communication



Service Strategy



Design/Build


VerifyPlan


Alignment

Project(s) Project(s)

Communication

Project(s)




Service Strategy



Design/Build


VerifyPlan


Alignment

Continuous Validation, Negotiation, Change Mgmt, Relationship Mgmt

Communication


Demystifying ITILPart 2: Best Practices for PracticalApplication of Service Management

Pat Connelly

Vice President, Gartner Consulting

6 November 2008

29© 2008 Gartner, Inc. All Rights Reserved.

Key Questions

What are key considerations for leveraging ITIL to improveservice management?

How can IT organizations get off on the right foot to use ITILconcepts?

How can IT organizations gage the health of their ITSM effortsand keep it on track?


ITIL: Considerations for Practical Application

The Good

– Highlights the importance of a service orientation

– Helps provide a standardized process context and a common language

– Identifies the core activities for its processes

– Increases service and process development confidence and consistency amongstvarious stake-holders

– Strong community and supporting resources

The Bad

– There are many different interpretations of ITIL

– ITIL is not always consumable out of the box by all levels within the organization

– Successful IT performance requires more than process optimization

– Not all IT capabilities are covered by ITIL


A Holistic Approach to IT Service Improvement

There are many frameworks, and it can bedifficult to navigate the availableresources

– Varying scope, purpose, depth/breadthand accessibility

Avoid being focused on a framework vs.desired results

–This should not be “An ITIL Project”!

– Infuse the best of all worlds forservice improvements by leveragingstrengths of different industry-standard frameworks (e.g., ITIL,CobiT, HDI, MOF, ISO Standards,etc.)


There is No Single Silver Bullet:Navigate the Most Appropriate Resources to Leverage

Specific IT Processes& Functions

IT AssetsCorporateGovernance

IT Governance& Mgmt

IT Process &Service

Mgmt

Quality andcontinuous

improvement

COSO

COBIT

ITIL

ISO20000

HDI

Assess

men

tG

uid

elin

es

Pre

sc

rip

tive

CMMi

CORBA

Baldrige

ISO9000

TQM

PMBOK

Prince2

PeopleCMM

ISO17799

ISO27001

SOAP

LeanEFQM

SixSigma

CGTF ISG

XML

TOGAF

Zachman

ENTERPRISE-WIDE IT-SPECIFIC

Turnbull

MOF


And Be Wary of the Hype…

Gartner Hype Cycle for ITOperations Management -

2008

Gartner Hype Cycle for ITOperations Management -

2008


Why Do ITSM Efforts Fail?

Gartner sees ITSM Programs stall or stop for many reasons:

Lack of focus on cultural change and governance

– Unsuccessful “Tom Sawyer” approach to induce organizational change frombottom-up

Limited visibility into benefits or improvements achieved

– No business case or measurement program to demonstrate results and/or progress

“Tools First” approach drives program in different directions

– Process improvement opportunities take backseat to tool replacement projects

Disparate workstreams not managed like a Program

– Separate projects not coordinated or integrated appropriately

Running out of steam

– New priorities, new demands on resources

Higher hanging fruit is too hard to reach!


What is the most significant challenge toimplementing ITIL in your organization?

Source: Gartner (April 2008)


Are You Starting on the Right Foot?

Track Against Five Key Critical Success Factors for ITSM Programs

1. Service Management Charter and Business / IT Alignment

– Program-level goals and objectives, business case and benefits alignment,scope or processes targeted, CSFs, and roadmap

2. Integration and Coordination across IT

– Program-level integration across individual processes / workstreams / projects

3. Roles and Organization

– Program structure and roles, organizational change management, skills andstaffing

4. Tools and Automation

– ITSM tooling portfolio and broader strategy for automation and architecture

5. Metrics and Governance

– Measurement of progress and improvement against program objectives,structure and effectiveness of governance and compliance

© 2008 Gartner, Inc. All Rights Reserved.

Program Charter and Execution Elements

– Alignment to Business Goals and Objectives

– Desired Benefits from Service Orientation and ITSM

– Program Scope Statement

– Identification and Roles of Stakeholders

– Program Management Approach

Program Roadmap

Issue Management

Scope Change Control

Risk Management

Quality Assurance

Status Reporting, etc.

– Critical Success Factors

– Rolling 12-18 month Roadmap and Transition Plan

– Program-level Common Artifacts

Taxonomy of Organization-specific ITSM Terms

Library of Roles

Process Reference Architecture

Process Refinement Templates and Methodologies

– Communications Strategy and Plan

– Cultural Change Management Strategy and Plan, etc.

A formal Program Charter should exist forthe ITSM initiative and be reviewed forupdates every six months:

“No really, Why Are We Doing This?”

Many organizations have either nevercreated a charter, or have not reviewed itsince it was initially drafted

The key is not to view program chartermaterials as required ‘documents’, butrather use these for tracking accountabilityto the stated benefits and coursecorrections.

The Program is the Glue!

Example of Components within the“Program Charter” dimension…

Have these been considered andarticulated?

1. Service Mgmt. Charter and Business/IT Alignment


2. Integration Successful programs proactively manage

integration across several dimensions:

– Process-to-Process Integration

Common Blueprint and convention forprocess hand-offs in design effortsacross all IT silos

– Project-to-Project Integration

Single, integrated view of all programworkstreams that affect the servicemanagement outcomes, includingprocess, tool and people initiatives

The program should be responsible forthe choreography of integration acrossindividual process efforts and otherworkstreams

Example of Components within the“Program Charter” dimension…

How many do you have that are current?

2. Integration and Coordination across IT


3. Roles and Organization

How is your organization implementing role ofprocess owner?

Source: Gartner (April 2008)

Successful programs have strongand dedicated program leadership

– Beware of assigning multiplesroles to individuals (programlead, process owner, processmanager, etc.)

Do not underestimate the ramp-upof resources needed for training,cultural change andcommunications during iterativedeployments

– At best, many programs arevictims of their own success andunable to accommodateincreasing needs or timelines

3. Roles and Responsibilities


4. Tooling and Automation Successful programs recognize the needto map the broader ITSM tooling portfolioand automation interactions

The ITSM tooling architecture should beexplicitly defined for tactical and strategictouchpoints to other related families oftools

– Need to understand the interactions withmonitoring, system management,job scheduling, asset, discovery,mobile notification, project portfoliomanagement, etc.!

“But don’t I need a new ITSM toolsuite?”

– Most organizations are tool-rich,but process poor – i.e., you mayalready be over-tooled.

How are you managing the broaderITSM tooling portfolio?

4. Tools and Automation:Much more than just a Help Desk tool….


5. Metrics and GovernanceDetermine What Should Be Measured and How?

A tiered measurement structure is required forensuring the appropriate level of velocity andeffectiveness of change

– Enterprise Level Metrics

e.g., Financial Metrics; ServiceImprovement Metrics; CustomerSatisfaction Metrics;Regulatory Compliance Metrics

– Operational Metrics

Efficiency Metrics (How well are youexecuting)

Effectiveness Metrics (Are youexecuting the right things well)

The use of Enterprise level metrics as amarketing vehicle are critical in retainingexecutive sponsorship

Process Maturity(Relative to Peer)

=

- +

The overall maturity rating of key ITprocesses based on the Gartnermaturity model.Process Maturity

(Relative to Peer)

=

- +Process Maturity

(Relative to Peer)

=

- +

The overall maturity rating of key ITprocesses based on the Gartnermaturity model.

Service Level(Relative to Peer)

=

- +

The combined performance of keyservice activities, including availability,problem resolution, and response time.Service Level

(Relative to Peer)

=

- +Service Level

(Relative to Peer)

=

- +

The combined performance of keyservice activities, including availability,problem resolution, and response time.

Cost Efficiency(Relative to Peer)

=

- +

The combined efficiency of all ITservice areas, including mainframe,server, client and peripherals, helpdesk, and data and voice networks.Cost Efficiency

(Relative to Peer)

=

- +Cost Efficiency

(Relative to Peer)

=

- +

The combined efficiency of all ITservice areas, including mainframe,server, client and peripherals, helpdesk, and data and voice networks.

Overall(Relative to Peer)

+-

=


+-

=

Overall performanceof cost efficiency,

service delivery, andprocess maturity.

Scales are relative to peer performance: “+” is greater, “=“ is equal, and “-” is lower than peer performance.

Savings Opportunities

1. Mainframe2. Wintel Server3. Client and Peripherals

Investment Opportunities

1. Data Networking2. Unix Server3. Help Desk

Gartner for IT LeadersSM Scorecard for IT Infrastructure & Operations

= Peer Range = Peer Average

= Peer Middle Quartile = XYZ

This scorecard provides a measurement framework for analyzing and optimizing IT servicedelivery. It contains an objective assessment of cost efficiency, service levels and processmaturity. Accordingly, the scorecard highlights both areas of strength and areas of potentialimprovement relative to peer organizations.

The ability to communicate IT investments in terms of business performance is fundamentalto establishing proper alignment with business goals. Comparing infrastructure spend relativeto revenue helps determine if investment levels are competitive.

Infrastructure Spend as a Percentage ofRevenue Relative to Peers

“Is investmentaligned withbusinessstrategy?”

Change in Infrastructure Spend vs.Change in Revenue

“Is the trajectoryof IT spendingaligned with thedirection ofbusinessgrowth?”

XYZ Peer

-25.0%

25.0%

-25.0% 25.0%

Change in Revenue

Ch

an

ge

inIT

Sp

en

din

g

Limited

scalability?

IT spending

growth in step

with revenue

growth

IT spending

decline in step

with revenue

decline

Good

scalability?

XYZ, 9.0%

Peer, 7.5%

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

7.0%

8.0%

9.0%

10.0%

Process Maturity(Relative to Peer)

=

- +

The overall maturity rating of key ITprocesses based on the Gartnermaturity model.Process Maturity

(Relative to Peer)

=

- +Process Maturity

(Relative to Peer)

=

- +

The overall maturity rating of key ITprocesses based on the Gartnermaturity model.

Service Level(Relative to Peer)

=

- +

The combined performance of keyservice activities, including availability,problem resolution, and response time.Service Level

(Relative to Peer)

=

- +Service Level

(Relative to Peer)

=

- +

The combined performance of keyservice activities, including availability,problem resolution, and response time.

Cost Efficiency(Relative to Peer)

=

- +

The combined efficiency of all ITservice areas, including mainframe,server, client and peripherals, helpdesk, and data and voice networks.Cost Efficiency

(Relative to Peer)

=

- +Cost Efficiency

(Relative to Peer)

=

- +

The combined efficiency of all ITservice areas, including mainframe,server, client and peripherals, helpdesk, and data and voice networks.


+-

=


+-

=

Overall performanceof cost efficiency,

service delivery, andprocess maturity.

Scales are relative to peer performance: “+” is greater, “=“ is equal, and “-” is lower than peer performance.

Savings Opportunities

1. Mainframe2. Wintel Server3. Client and Peripherals

Investment Opportunities

1. Data Networking2. Unix Server3. Help Desk

Gartner for IT LeadersSM Scorecard for IT Infrastructure & Operations

= Peer Range = Peer Average

= Peer Middle Quartile = XYZ

This scorecard provides a measurement framework for analyzing and optimizing IT servicedelivery. It contains an objective assessment of cost efficiency, service levels and processmaturity. Accordingly, the scorecard highlights both areas of strength and areas of potentialimprovement relative to peer organizations.

The ability to communicate IT investments in terms of business performance is fundamentalto establishing proper alignment with business goals. Comparing infrastructure spend relativeto revenue helps determine if investment levels are competitive.

Infrastructure Spend as a Percentage ofRevenue Relative to Peers

“Is investmentaligned withbusinessstrategy?”

Change in Infrastructure Spend vs.Change in Revenue

“Is the trajectoryof IT spendingaligned with thedirection ofbusinessgrowth?”

XYZ Peer

-25.0%

25.0%

-25.0% 25.0%

Change in Revenue

Ch

an

ge

inIT

Sp

en

din

g

Limited

scalability?

IT spending

growth in step

with revenue

growth

IT spending

decline in step

with revenue

decline

Good

scalability?

XYZ, 9.0%

Peer, 7.5%

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

7.0%

8.0%

9.0%

10.0%


5. Metrics and Governance Successful programs are aggressively utilizing

metrics to track incremental performance of afew key KPI’s over each 6-12 month period:

– Significant creativity and diligence required forbaselining

– Immediate readiness of reporting capabilitiesis critical for deployment

– Different sets of metrics should be tied tomaturity levels/capabilities for each processalong the journey of their roadmap.

Beyond the collective process metrics,program-level metrics are critical fordemonstrating improvement and effectiveness

– Programs need to measure performanceindicators too

– “How can we prove that the program is gettingincreasingly more efficient and effective atfacilitating the process improvement efforts?”

5. Metrics and Governance:How Healthy is the ITSM Program?

Source: OGC “Service Design”


Putting It All together:Where are you in the lifecycle?

Define Strategy andStructure Program

Service Management Drivers,Objectives and Pain Points.

Task-LevelProcessDetail

Information

Requirements

Automation

Requirements

Define IT Service PortfolioDefining IT Services and Catalog;

Consumption Approach? Chargeback?

Adopt Process ReferenceArchitecture and Taxonomy

Define a conceptual, integrated target state!Common and Consistent Language

Develop Process Baseline(s)How do the current processes perform?Identify key gaps against best practice!

Develop Transition Approachand Plan

How should the target state be implemented?Knowledge transfer and training!

Build Technical IntegrationFramework

What standards and protocols should be used?How should new automation be assimilated?

Implement and ManageImplement the target state!

Operate and manage new processes!

On-going Measurement and GovernanceHow will you know when you achieve the desired maturity?

How will you market and communicate the program value and progress?

Build Services and Process ArchitecturesDefine and Design the target state detail!

= Strategy & Structure

= Detail Design & Transition Plan

= Transition & Operation

= Continuous Improvement


Closing Thoughts


Ultimately It's All About Implementing EffectiveServices — Not Designing New Processes

Service Management is about improving alignmentbetween the organization and IT services and not aboutprocess for process sake!

Practitioners will need to juggle additional balls in the airwhile better processes are being defined and implemented– However, this short term pain typically leads tosubstantial long term gains for the organization and thepractitioners themselves

You have to invest to save

Transition will take two to three years


What are our next steps? Where should we start?

Are our ITSM vision and strategy explicit? Are they widelyunderstood?

Have we targeted the appropriate programmaticapproach for our specific context?

Does our transformation plan account for all critical successfactors?

Are we in danger of falling into one or more of the commonmissteps?

Homework Questions

Do we have a consistent and thorough understanding of ITSMfundamentals?Have we inadvertently “bought into” any of the commonmyths?


Concluding Comments

To demonstrate value, you need to establish a clear link between thecapabilities being improved and critical IT service improvements

Effective governance is critical for success

Tools enable processes, but are not a substitute for good process

Do not try to refine a single process or a subset of processes withoutestablishing an overall IT frame of reference of how the refinedprocess will fit in the target operating environment;

Take into account your organization’s culture and ability to assimilatechange… Effective Organizational Change Management is critical tothe success of such initiatives

ITSM requires an enterprise-wide goal, but a step-wiseimplementation approach:

Iterative Improvement over Delayed Perfection!


Questions


Thank you!

demystifying itil part 1: itil introduction and...

Documents