session 307 developing a strategic service plan 1 ©2017 .../media/hdiconf/files/copy... ·...
TRANSCRIPT
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Session 307:Developing a Strategic Service Plan That Demonstrates the
Value of Your Support CenterJohn Custy
Managing Consultant JPC Group
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John Custy
john.custy
John [email protected]
Service Management Practitioner, Consultant and Educator
Ron Muns Lifetime Achievement Award IT Industry LegendDevOps Certified InstructorITIL Expert and ITIL Accredited TrainerISFS, ISMAS based on ISO/IEC 27002ISO/IEC 20000 ConsultantKCS Verified ConsultantHDI Faculty & Certified Instructor
Top 25 Thought Leaders in Technical Support and Services Management25 ITSM Service Management Experts to Watch in 201720 Best ITSM People to Follow on Twitter
ITSMNinja
johncusty
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SERVICE STRATEGYStrategies, Polices, Services, Value
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Strategy, Policy & Plan
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Reproduced from on Axelos ITIL® SS Figure 5.1
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Corporate Strategy What should be the capabilities that
distinguish the company?What should be the company’s comparative
advantage in adding value to its individual businesses?
What businesses should the company be in?
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Business Unit StrategyWho should be the customers that define our target
market?What should be the value proposition that
differentiates our products and services with those customers?
What should be the capabilities that make our business better than any other in delivering that value proposition?
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Strategy to Achieve Balance
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Reproduced from on Axelos ITIL® SS Figure 5.5
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Service StrategyHow to deliver services that customers’
business outcomesHow to manage the services Includes: strategies, Policies, Resources,
Constraints, ObjectivesWhat are the trade-offs that need to be made
to better serve customers and outperform competitors?
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Services StrategyVision and Mission articulate how the service
provider differentiates themselves to provide valueBusiness know-howBreadth and scope of service offeringsCost
What is the value (social, monetary)How does your strategy differentiate you from
your competitors?
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Value of a Services StrategyActivities are linked to business (customer)
outcomesIdentify types and levels of services requiredEnsures organizational structure needed to
deliver the services is identified. Facilitates an agile approach to changesEasier to identify the return on services
investment
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Value Chain
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Adding value to a product passing through a chain of activities is called Porter's value chain (after Michael Porter for his discussion of it in Competitive Advantage: Creating and Sustaining Superior Performance).
Reproduced from Axelos ITIL® SS Figure 3.8
Money spent, value added and value realized
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What is a Service?A services is a means of delivering value to
customers by facilitating outcomes customers want to achieve without the ownership of specific costs
or risks. IT managed as a set of services IT deploys products as assets to deliver servicesAssets are the components that make up servicesOutcomes are achieved when the activities
performed by the business facilitate outcomesThe business must define the outcomes
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Outputs vs. OutcomesOutputs
What IT delivers, e.g., reports
Availability, reliability, downtime
Was the service delivered?
Compliance to the standard performance levels
Outcomes What the customer does with
the reports Was the customer outcome
achieved? Did the customer use the
service to achieve the outcomes?
Business cycles or outcomes may need variable level of performance
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Value Creation Though Services
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Value is defined by the customerAffordable mix of featuresAchievement of objectivesValue changes over time
Based on Axelos ITIL® SS Figure 3.5
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Internal & External Services
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Internal services support internal activity
External services achieve business outcomes
Reproduced from Axelos ITIL® SS Figure 3.9 Services and Value
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Understanding ValueValue can only be calculated once value is
realized (outcomes achieved)Value realized must be greater than cost
IT must link activities to where the business realizes value
If unable to link to where value is added, IT is cost, no value-added
If no linkage, then value only perceived when costs are reduced.
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How is Value Determined for Your Customers?
Value may be monetaryHigher profits Lower expenses Increased Revenue
Value may social Saving livesCollecting taxesPositive impact on peoples lives – e.g. Education For non-profit organizations it is services that allow
the organization to met its mission better
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Strategy to Support Business Processes
Ensure outcomes are defined IT services supporting the outcomes are
identifiedIdentify how support services support the
outcomes and the dependencies.
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Service Value Perception What service(s) did IT provide?
Components and systems Facilitating business activities and outcomes Service Portfolio and Service Catalog are critical to
communicating value What did the services achieve?
How did the IT services help the customer? How important are the IT services to facilitating the business
outcomes? What is the cost/price of the services?
What the cost/price compared with what the customer achieved using the service?
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Value Capture Value capture is the ability of a service provider to retain a
portion of the value that has been created and realized. The ability of a service provider to differentiate themselves
and offer more value over time depends on: Whether they are able to obtain funding to develop and
improve services, over and above the cost of operating the services.
Value capture is a good way of obtaining this funding Easier to link the cost of this development to the service directly Easier for the customer to evaluate the value of service
improvements.
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STRATEGY MANAGEMENT PROCESS
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Successful Strategy Management
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Reproduced from Axelos ITIL® SS Figure 4.3The Strategy Management Process
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Strategic Assessment Current state assessment Identify constraintsSWOT Internal view – strengths, weaknessesExternal view – opportunities, threats
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Analyzing Internal EnvironmentExisting servicesFinancial AnalysisHuman ResourcesOperationsRelationship with Business Units
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Analyzing the Internal Environment Existing services – What are the differentiators today? Financial analysis – What is the cost of services, and the return on investment
in the service provider. How does the service contribute to the achievement of business outcomes.
Human resources – What are the skills and capabilities of the service provider? Where are these sourced? Where is there a risk of losing people with hard to replace skills/competencies? What is the capability of the training, recruitment, management, compensation, succession planning, and labor relations?
Operations - How efficient and effective is the organization supporting and delivering services? Where is there duplication of effort or technology, adequate level of control, impact of incidents, the ability to manage change etc.
Relationship with the business units – Is there a good understanding of the overall strategy and requirements of the customer (internal or external), and how well is the service provider currently meeting those requirements and enabling that strategy.
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Service DifferentiatorsWhat are barriers for another service provider? Are there unique services? Unique knowledge or relationships? How costly is it to change service providers?Which stakeholders are most satisfied? Low cost, high quality, features (utility)?
Which stakeholders are least satisfied? High cost, poor quality, features (utility)?
Which services are considered core for the business?
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Analyzing the External Environment Industry and market analysis – What services are competitors using? What technologies are our
competitors investing in? What are the potential disruptive services or technologies in our market space? What kind of sourcing models are they using (e.g. is there a trend in outsourcing specific types of service?).
Customers Who are our customers? What challenges and opportunities are they facing? What are their strategies? How good is our relationship with them? Do we know what services our customers are they using? Do we know why they use the services they use? Who are the key influencers for our customers?
Suppliers Who are our suppliers? What changes are our suppliers forecasting for their products and services? How will these changes impact our current services and architectures? Is this the supplier who will meet our needs three years from you?
Partners Who are our partners partnered with? What opportunities and strengths do they offer? Are they still relevant? Will they be relevant 3 years from now? What are our contractual obligations?
Competitors How have competitors differentiated themselves? How do our costs compare to their costs? Do competitors offer higher quality or lower cost services than we do? Are they gaining or losing ground in the market?
Technology How will new technology impact the services provided? How will it change the way services are provided, e.g. AI, VR, AR, 5G?
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Analyzing the External Environment Legislation and regulation What legislation or standard will impact
the way we work (for example, Sarbanes-Oxley (SOX), ISO/IEC 27001)? Do competitors face the same constraints? Could our compliance be a differentiators?
Political How are our current practices and strategies impacted by political changes? Will changes in fiscal policy enhance or limit our ability to provide services? How will we (or will we) continue to offer services in politically volatile areas?
Socio-economic What is the economic forecast, and will it impact our current situation? Is there pressure to reduce headcount? What is the policy regarding social responsibility? How are we impacted by social responsibility groups?
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NEXT STEPS
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Assess the Current State Where is organization with respect to Service Models, Vision, Mission What changes are necessary to achieve the service model, goals,
objectives Services capability assessment Sourcing assessment
Internal, external, combination Which people/roles are at risk? Staff training plans and development (internal and external) Engagement /Satisfaction Levels
Technology Assessment Service Management toolset Telephony Knowledge Management Remote Management (including mobile device management)
Organizational structure assessment
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Strategic AssessmentDefine the future state (vision)What changes are needed?How will the changes impact the current
strategy?
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Your Actions Ensure that you understand your corporate/business
strategy How will your services support the achievement of the
business goals and objectives? Understand customer segmentation and priorities Business Relationship ManagementWho are the key stakeholders? Who are the key influencers – internal or external? Why would customers buy the services from you? Understand which services support which business
processes
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Your Actions Identify the impact of the different customer segments
and priorities on the services strategyWhich stakeholders drive business strategy?What stakeholders contribute the most to
corporate/business goals and objectives? Which services enable key business processes
(IT) Service Management model Service Level Management Core, enabling, supporting services Service Packages
Supplier Management
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Your Actions Evaluate and update your metrics and KPI’sStrategic metricsTactical metricsOperational metrics
Review and revise your service demand
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OutputsMission and Vision statementsService Pipeline identifying new and changed
services Strategic Plans (investments)Predictive Service Analytics PoliciesTactical and Operational Plans
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Outputs Career Development Planning Services Marketing program Internal Communications program Document service offerings (aligned with service
catalog)
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Consistency and Agility
Best performers are consistent
Consumers expect consistent products
People appreciate consistent management
Consistent leaders possess resilience and grit.
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