allstate- cathy kirch- back to the future with itil-final

© 2008 Allstate Insurance Company

Cathy A. Kirch

13th Annual InternationalIT Service Management

Conference and Exhibition

ITIL® is a Registered Trade Mark of the Office of Government Commerce in the United Kingdom and other countries.2

AgendaAgenda

• Allstate Insurance at a Glance

• Allstate Journey to IT Service Management

- Moving from concept and implementation to results

• Continual Service Improvement with Process Assessments

• IT Service Management - Get back to the future


• The nation's largest publicly held personal lines insurer

• A Fortune 100 company, selling 13 major lines of insurance, including auto, property, life and commercial

• Corporate headquarters in Northbrook, Illinois• 2007 revenues more than $36 billion• Insures 17 million households in the U.S. and

Canada • Encompasses more than 70,000 professionals with

operations in 49 states and Canada• Technology operations located around the globe

Allstate Insurance at a Glance


Allstate Insurance at a GlanceAllstate Insurance at a Glance

Allstate’s Technology Environment

• High-Speed Networking• Integration Architecture• J2EE and .Net• Large Scale Networks• Message Brokering• Performance Management• Rich Media Management• Service Oriented Architecture• Unix, Windows and Mainframe platforms• Web Content Management• Web Services

• Advanced Analytics• Business Process Management• Capacity Planning• Data Warehousing• Document Imaging• Enterprise Content Management• Enterprise Databases• Enterprise Information Integration• ETL (Extract, Transform, Load) Tools• Financial Applications• High-Availability and Disaster Recovery

• Multiple operating systems • Multiple technology platforms • Multiple database systems

• 6,000+ IT professionals• 5,000+ software applications• 100,000+ desktop computers supported

Applications and Services


AgendaAgenda


• Allstate Journey to IT Service Management - Moving from concept and implementation to results


• IT Service Management- Get back to the future


Allstate Journey to IT Service Management –Moving from concept & implementation to results

First Generation (1939-1954) – vacuum tube

Second Generation Computers (1954 -1959) - transistor

Third Generation Computers (1959 -1971)

Fourth Generation (1971-1991) – microprocessor

Fifth Generation (1991 and Beyond)


Results---------------------------------------------------------------------------------------------------------------------------

2004 - Process Improvement –

2005: - Changed alignment to ITIL

- Standardized Priority Schema

- Reduced MTTR P1 Incidents

- Improved classification---------------------------------------------------------------------------------------------------------------------------

2006 - Enterprise enrollment of

2007: Change Management

---------------------------------------------------------------------------------------------------------------------------

2008: Adoption and Maturity

Assessments –

reset our goals

refresh baseline

Opportunities-------------------------------------------------------------------------------------------------------------------------

2004 - Speed

2005: Cost efficiency

Ease of navigation

------------------------------------------------------------------------------------------------------------------------

2006 - Reduce

2007: - Processes

- Silos------------------------------------------------------------------------------------------------------------------------

2008: Where are we?




What is our Vision and Strategy?To Support common process across the Enterprise-

Allstate Technology and Operations; Investments; and Allstate Financial Technology by Enterprise wide adoption of ITIL framework

• Common roles and responsibilities across the Enterprise

• Common process language and repeatable procedures - reduce the learning curve from one area to another

• Increased visibility into change activities

• The ability to reduce change collision

Benefits for the organization:

• Recording of authorized changes to aid resolution that improves Incident activities

• Faster mean time to repair

• Support metrics that allows for continued improvement

• Compliance with regulatory requirements

• Common repository for approved changes and reporting


2004

Created the Process behind the process

What Allstate added to ITIL

• Education & Training program

• Communications & Marketing defined

• Centralized Reporting System

• Functional governance organization with focus on People, Process & Technology

©2005 Allstate Insurance Company11

Processes Behind the Processes:What ITIL didn’t tell you about implementation

People, process & technology- what is the challenge?

• People

• Process

• Technology


Processes Behind the Processes:What ITIL didn’t tell you about implementation

Strategic vision of education and training

Purpose• Created for collaboration and guidance around

necessary training needs for the implementation of IT Service Management within Allstate

• Charged with centralizing opportunities to ensure cost effective and efficient approaches are used for training around ITIL courses

• Provides recommendations for target audiences to associated ITSMconferences

The

BusIness

The

Technology

Planning to Implement Service Management

Applications Management

The BusinessPerspective

ICTInfrastructureManagement

ServiceSupport

ServiceDelivery

SecurityManagement


Check

Governance

Continuous Improvement

Check

Governance


2004


2005-2006

Adding in CobiT

• Deliver with the end in mind

• Selecting control objectives to focus on while developing processes

• Year of communications

• Practitioner of the year award

• Communications & Marketing

• Education & Training


“Driving Miss Alignment”Using ITIL and CobiT to ensure governance

How we put it all together

1) Aligning CobiT and ITIL

2) Project team identified their deliverables by category

3) Focus on the fundamentals

• CobiT - governance of IT, audit and control standards

• ITIL process framework of best practices

• Process Maturity Model - measuring capability in stages

CobiT: what is it and why use it?



“Driving Miss Alignment”Using ITIL and CobiT to ensure governance

IT RESOURCES

IT RESOURCES

• data• application

systems• technology• facilities• people

• data• application

systems• technology• facilities• people

PLANNING AND ORGANISATIONPLANNING AND ORGANISATION

AQUISITION ANDIMPLEMENTATIONAQUISITION ANDIMPLEMENTATION

DELIVERY AND SUPPORT

DELIVERY AND SUPPORT

MONITORINGMONITORING

• effectiveness• efficiency• confidenciality• integrity• availability• compliance• reliability

• effectiveness• efficiency• confidenciality• integrity• availability• compliance• reliability

Criteria Business Objectives

Based on CobiT Version 3.2

Check

Governance


Check

Governance


2005-2006

Statement Weight Weight

Level Compliance Contribution Value 1 ITIL / CobiT Process 10 4 0.00 10

1 1.00 1.00 1.00 2 Process and Practices 10 4 0.00 10

2 1.00 1.00 1.00 3 Internal Control Assurance 10 4 0.00 10

3 0.00 1.00 0.00 4 Process Compliance (External) 10 4 0.00 10

4 0.00 1.00 0.00 5 Process Metrics 10 4 0.00 10

5 0.00 1.00 0.00 6 Process Quality Management 10 4 0.00 10

Maturity Level = 2.0 7 Marketing & Communications 10 4 10.00 10

8 Training and Education 10 4 0.00 10

9 Technology and Automation 10 4 0.00 10

10 ITIL Process Dependencies 10 4 0.00 10

11 0 0.00 0

4 12 0 0.00 0

Configuration Management

Process NameAllstateMaturity Level Assessment

0.00 1.00 0.00 1.00

Com

plia

nt

Com

plia

nt

Not

Com

plia

nt

Not

Com

plia

nt

Mat

urity

Lev

el 3

Maturity Level Calculation

Use ticks 4 for compliance value (4 on the keyboard)

The

BusIness

The

Technology

Planning to Implement Service Management

Applications Management

The BusinessPerspective

ICTInfrastructureManagement

ServiceSupport

ServiceDelivery

SecurityManagement


October 5, 200818

Plan for education/training and communication Example

• Framework education

• Logistics

• Availability of students and instructors

• Measures of success

• Train the trainer

Framework & Role-Based Training:

Implementing an Enterprise Change Management Process

Define your tasks, effort, duration, start time

2007 ITIL V3?


Check

Governance


Check

Governance


2007

Building the Bridge

• Business Service Management office focused on Service Catalog

• One enterprise process for Change Management

• Strong Project Management

• Strong Partnership with Claims


• Education & Training - ITIL V3

Increased visibility across

the bridge!

Added dialog betweenthe groups


2008

Pulling it all together

• Acknowledging complementary frameworks

• New ITSM Tool implemented

• Catalog acceleration

• Enterprise-wide goal adopt ITIL

• Centralizing ITSM governance

• Strong partnership with Enterprise Application area


• Education & Training - ITIL V3 PO1 Define a strategic IT PlanPO2 Define the information architecturePO3 Determine the technological directionPO4 Define the IT organisation andrelationshipsPO5 Manage the IT investmentPO6 Communicate management aims anddirectionPO7 Manage IT human resourcesPO8 Manage qualityPO9 Assess and manage IT risksPO10 Manage Projects

PLAN AND ORGANIZEPLAN AND ORGANIZE

ACQUIRE ANDIMPLEMENT

ACQUIRE ANDIMPLEMENT

DELIVER AND SUPPORT

DELIVER AND SUPPORT

AI1 Identify automated solutionsAI2 Acquire and mantain application softwareAI3 Acquire and maintain technology infrastructureAI4 Enable operation and useAI5 Procure IT resourcesAI6 Manage changesAI7 Install and accredit solutions and changes

DS1 Define and manage service levelsDS2 Manage thierd-party servicesDS3 Manage peformance and capacityDS4 Ensure continuous serviceDS5 Ensure systems securityDS6 Identify and allocate costsDS7 Educate and train usersDS8 Manage service desk and incidentsDS9 Manage the configurationDS10 Manage problemsDS11 Manage dataDS12 Manage the physical environmentDS13 Manage operations

MONITOR andEVALUATE

MONITOR andEVALUATEME1 Monitor and evaluate IT performanceME2 Monitor and evaluate internalcontrolME3 Ensure compliance wihtexternal requirementsME4 Provide IT governance

IT RESOURCES

IT RESOURCES

•Applications•Information•Infrastructure•People

•Effectiveness•Effficiency•Confidientiality•Integrity•Availability•Compliance•Reliability

InformationCriteria

InformationCriteria

Business & Governance ObjectivesBusiness & Governance Objectives



2008 - BSM How can we leverage our Enterprise goal #4 to increase

availability with ITIL adoption? How do we role out ITSM tool with 5000+ users active? Are all problems created equal?

2004 - SMCOE How do we build the Process behind the Process? Red to green – can we improve Incident Classification? How do we define Education & Training program in IT?

2005 - ITSM @ Allstate

How do we build the process with governance built in? What does standard documentation look like? How do we create process policies?

2006 - ITSM @ Allstate/Availability Mgmt

How does a process become defined and documented What does Business Service Management (BSM)

organization look like? Can we move faster in a decentralized mode?

2007 - Availability Management

How do we conduct an enterprise role out of change? How do we introduce a Service Catalog? What is the right ITSM tool with our complexity?

ITIL – Key Questions on the Journey



AgendaAgenda



- Moving from concept and implementation to results




Continual Service Improvement with Process Assessments How does ITIL V3 fit in?


Goal: • Continual Service Improvement (CSI) will move beyond talking to

action. CSI will address ways that overall process and service provision can be improved.

Activities:• Business case Return On Investment (ROI)• Identify the overall health of IT Service Management• Portfolio alignment in real-time with business needs• Growth and maturity of the service management practice• How to measure, interpret and execute results

Continual Service Improvement with Process Assessments


Identify:Vision

StrategyGoals

1. Define what you should measure

5. Analyze data, trends &

plans Targets met,

corrective action

4. Process data with frequency format & system

accuracy

3. Gather data, who, how, when

2. Define what you can measure

6. Present and Use

information, assment,

action plans

7. Implement Corrective

Action

GOALS

ITIL’s 7-step Improvement process @ Allstate



Forrester - Inquiry Spotlight, ITIL Q4 2008

Evidence of increasing maturity of ITIL initiatives



2008 Adoption assessments Objective: Understand the adoption and adherence in different functional organizations

1. Define what you should measure

• 2008 success of adoption• Catalog acceleration• Project performance• Operational measures

2. Define what you can measure• Tangible evidence• Focused on education• Established roles• number of Services on

boarded



3. Gather data, who, how, when

• By functional organization

• By the Assessment team

• Catalog tool

• Project Manager

4. Process data with frequency, format, & system accuracy

• Success of Adoption

• Adoption Rating

• Project results

5. Analyze the data, trends, plans

• Observations

• Recommendations



Adoption assessment Reporting 6. Present and use information, assessment summary, and action plans

• Adapt the results to the business

• All areas are not the same

• Areas covered: Infrastructure, Application Support, Application Development

• Different Business Lines- Financial; Investments; Products; Claims

• Defined a report

7. Implement corrective action



Lessons Learned:

• Allow time for logistics & reporting

• Good note taking a must

• Be prepared for change

• All areas are not the same

Next Steps:

• Use the Information for 2009 planning & implementation

• Formalize CSI Manager role

• Confirm pain points

• Gap closure

Analyzing Data

Gathering Data

Processing Data

Gathering the Data

Processing the Data

Analyzing the Data

Presenting

and using the Information

From Figure 6.1 CSI – Activities and skill levels needed for CSI



AgendaAgenda



- Moving from concept, and implementation to results




What:

• From grass roots to executive sponsorship

• From program and operational efforts, back to a program governance approach

• Focus on the six core documents

• Establish standard roles

How:

• 7 step continual improvement brought to life

• Applied to the program

• Applies to the process

• Centralize common functions within an organization

• Creation of Continuous Process Improvement Teams (CPIT)

• Establishing enterprise roles

• Utilize compliance avenues

IT Service Management- Get back to the future


Service Strategy Roles

IT Service Management Enterprise Service Lifecycle Stages

and Corresponding Roles

Service Operation Roles

Service Design Roles

Service Transition Roles

Continual Service Improvement

Process OwnerProcess LeadProcess AnalystIT PlannerIT Designer ArchitectService Design Manager/ArchitectsService Catalog ManagerService Level ManagerOLA Coordinator (s)Availability ManagerService Continuity ManagerCapacity ManagerSecurity ManagerSupplier Manager

Process OwnerProcess LeadProcess AnalystService ManagersFinancial Mgmt Mgr

Process OwnerProcess LeadProcess Analyst Service Desk AnalystService Desk ManagerService Desk SupervisorIncident ManagerIncident Coordinator (s)Problem ManagerProblem Coordinator (s)

Process OwnerProcess Lead Process AnalystService Asset & Configuration ManagerChange ManagerChange Coordinator (s)CAB MembersRelease Deployment ManagerRelease Package Build Manager

Process OwnerProcess LeadCSI ManagerService OwnersReporting Analysts



Business Rules• Process Flows / Mapping

• Identify control points • Roles & Responsibilities • Policies – Scope, Authority• Operational Procedures• Education & Training• Communications & Marketing

Corrective Action• Communications• Roles & Responsibilities • Education &Training• Policies & Procedures• Performance Management• Process Design

Governance Types

Strategy

Investment

Project

Process

Technology

Operations

Human Resources

Suppliers

Governance

Documents

Documents& Records

Co

nti

nu

al

Imp

rov

em

en

t

Various frameworks lead to governance. Governance is the policies, procedures and regulations under which IT operates. It is the mechanisms, put in place to ensure adherence and compliance with those policies and regulations.

Operational Execution

PLANPLAN

DODO

Adherence & Compliance• Metrics, Reporting • Technology (Tools, Automation, Data) • Self Assessment • Independent Assessment Records

CHECKCHECK

ACTACT

PLAN

AC

T

Check

DO



• Going forward

• Functional areas on boarded with vision and target adoption rates

• Defined gap closure

• Enterprise audits

• Role based training

• Ongoing assessments

• Ensure we have tied our work to the business




Level 1Initial

Level 2Repeatable

Level 3Defined

Level 4Managed

Level 5Optimized

Current State Inventory & Analysis

Project Mgt

Office

ITSMRoadmap

Technology & Architecture Governance

Process Governance

Process OwnerOperational Governance

Project Governance

Maturity Assessment

Target Maturity

ProjectPlanning

Project Implementation

OperationalExecution

Too many people and too many organizations are looking for the big-bang approach to improvements. It is important to understand that a succession or series of small, planned increments of improvements will not stress the infrastructure as much and will eventually amount to a large amount of improvement over time.

CSI pg 113.


Measures

PLAN

AC

T

Check

DOGovernance

PLAN

AC

T

Check

DO

Continual Improvement


Hold your position with the wedge

PLAN - Planning for improvement initiatives- project plan

DO - Implementation of improvement initiative- project

CHECK - Monitor, measure and review services and service management processes- audit

ACT - Continual service and service management process improvement - decisions made: status quo, close the gap or add necessary resources to support another round of Plan Do Check Act for continual service improvement

Mat

urity

Lev

el

Time Scale



• Govern continual process improvement

• Advance training and education for all levels including new employees

• Adapt your goals and deliverables to the business needs

• Only one enterprise process

• Identify the different business lines - financial, investments, products, claims and advance their adoption

Things to know:

• Adopting ITIL Version 3 and widened adoption most likely will impact maturity score

• Expect leap frogging between- CobiT, ISO 20K and ITIL

• Clear roles are a requirement within the Service Management program

• Know the health of the program through regular assessments

• Incremental approach



• We are always analyzing the data- where are we now?

• We look for adherence to policy and process

• We understand this all takes time

• We run IT like a business

• We accept IT Service Management is business as usual

Things we have done to mature:

• We have not implemented ITIL

• We are evolving IT Service Management

• Moved from: managing technology to managing service processes

• We are always developing service management for customers and clients

© 2008 Allstate Insurance Company32

Questions?

Cathy A. KirchAllstate Insurance Company

Process Consultant 2007 Project of the Year

2006 Practitioner of the YearITIL Expert,

V2 Service Manager & Practitioner

[email protected]

allstate- cathy kirch- back to the future with itil-final

Documents

service management conference

change management

registered trade mark

office4 allstate insurance

globe allstate insurance

glance allstate journey

continual service improvement

office6 allstate journey