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Practical Advice for Leveraging ITIL Version 3

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Hype Surrounding ITIL

• ITIL makes the business love the IT group• ITIL is easy• Buy our tool, and

have ITIL• Everybody is doing it

• What's next- ITIL cures cancer- ITIL solves world hunger

Technology Trigger

Peak ofInflated

ExpectationsTrough of

Disillusionment Slope of Enlightenment Plateau of Productivity

time

visibility

ITIL 2005

ITIL 2012

ITIL 2006

ITIL 2008

ITIL 2010

IT Operations Management Hype Cycle

ITIL 2007

ITIL v.3

There has been a great deal of hype surrounding the Information Technology Infrastructure Library (ITIL). Much of this is being generated by vendors jumping on the ITIL "bandwagon" in an attempt to generate additional revenue. The fact that more organizations are leveraging ITIL, often with budget funds being specifically allocated to acquire improved tools, is reinforcing vendors' heavy marketing of system management tools as enablers of ITIL. Coverage in the technology press also has fueled interest levels in ITIL, albeit typically with oversimplified examples that give a false sense of how easy it is to reap the benefits of ITIL.Gartner's IT Operations Management Hype Cycle tracks the annual progress of various technologies and processes in client expectations. In mid-2005, ITIL was judged to be just past the Peak of Inflated Expectations, and by the latest publication in July 2007 had progressed almost to the Trough of Disillusionment. Based on the continued increase in interest by organizations in leveraging ITIL, we are projecting that ITIL will start to come out of the trough in 2008, be in the Slope of Enlightenment in 2010 and approach the Plateau of Productivity in 2012. Because of the introduction of ITIL version 3 in June 2007, we added a separate data point to show that version 3 had not yet reached the Peak of Inflated Expectations.




Agenda

1. What is ITIL, and what are the implications of version 3 being released?

2. What pitfalls should be avoided whenimplementing ITIL?

3. What are the critical success factors and practical methods to maximize return on investment?

4. How to use metrics to motivate staff and measure success




ITIL Version 2:The Good and the Bad

Service Delivery• Service-level management• Financial management• Capacity management• IT service continuity• Availability management

Service Support• Incident management• Problem management• Change management• Configuration management• Release management

Service Desk

Core BenefitsStandard process language Emphasis on process vs. technologyProcess integrationStandardization enables cost and quality improvementsFocus on the customer

Limitations• Not a process improvement

methodology• Specifies "what," but not "how"• Doesn't cover all processes• Doesn't cover organization issues• Hype driving unrealistic expectations

ITIL version 3 published 30 May 2007

Key Issue: What is ITIL, and what are the implications of version 3 being released?The ITIL framework does not cover the full service management spectrum, nor does it cover the processes at the procedural level. In fact, most IT organizations will have slightly different interpretations of ITIL and comfort levels in adhering to strict ITIL terminology from which they will vary. Therefore, groups seeking to maximize their investments in ITIL will use the elements they deem appropriate (for example, change management), bolstered by other processes (for example, configuration management), with additional processes and integration points (for example, production acceptance/control), to effectively build a more complete and relevant work structure. Indeed, it is common for organizations to leverage as little as 20% of the strict ITIL framework, adding processes/tasks and significant process variations to define the remaining 80% of the work structure.Action Item: IT operations groups must recognize the elements of the ITIL framework that can be leveraged and should not be afraid to embellish the framework with tasks and processes that help create a more complete work structure.




Audience polling survey at Gartner Data Center Conference on November 2006 (N = 171), Gartner Infrastructure, Operations and Management Conference on June 2007 (N = 102) andGartner Data Center Conference on November 2007 (N = 87).

Polling Results: Characterization of ITIL Adoption

0% 20% 40% 60%

"Completed" adoption

Implementing 2+ years

Implementing 0-2 years

Plan to start in next 18months

No plans at this time

Nov-06Jun-07Nov-07

Key Issue: What are the key trends and strategies driving the adoption of ITSM?Three surveys of attendees at approximately six month intervals beginning in November 2006 have shown some interesting trends. Relatively few clients characterize themselves as having completed as much ITIL implementation as they plan. There has been significant growth in the percentage of clients that have been working on implementing ITIL for more than two years, rising from 9% in November 2006 to 29% by November 2007. This is consistent with Gartner client inquiries, and accounts for the reduction in attendees responding that they are working on ITIL, but for less than 2 years. It should be noted that the results are partially attributable to the makeup of the audience at the Data Center and IT Infrastructure, Operations & Management conferences, representing a higher number of progressive companies in IT operational processes. Based on client inquiries, it is also assumed that if the survey consisted of a greater percentage of European or Australian organizations, then it would have reflected a higher percentage adopting ITIL.




ITIL Version 3: Service Life Cycle Approach

• Service Strategy- Link IT service strategies to customer

value

• Service Design- Design services to satisfy business

objectives

• Service Transition- Implement service designs- Service knowledge management

system- Refinement of change, configuration

and release processes

• Service Operation- Deliver and manage services- Refinement of incident and problem

management processes- Event and access management

• Continual Service Improvement- Never-ending review for opportunities

Core ITIL Value-Added Products

Source: ITIL

Key Issue: What is ITIL, and what are the implications of version 3 being released?During the last decade, the global IT industry has experienced a growing emphasis surrounding the ITIL. In the first two versions of the ITIL framework, IT service and service catalog concepts were introduced. However, the materials lacked the full spectrum of IT service management, and it did not cover the processes at the procedural level. The recent release of version 3 introduces the service life cycle, incorporating version.2 content as foundational and offering more-granular concepts of an IT service from inception to retirement. Five life cycle titles form the core of ITIL practice: Service Strategy, Service Design, Service Transition, Service Operation and Continual Service Improvement. The core of version 3 will be supported by an Introduction and Key Element Guides, along with multiple topic-specific complementary guides and an integrated service life cycle model, including service, organizational, process and technology maps. The first generation of ITIL content was released in the late 1980s and took over a decade to gain global industry attention. The version 3 content is a sizable extension to version 2 and will require a similar timeline for IT organizations to digest.Action Item: IT organizations should allocate a training budget to educate product, process and relationship managers about ITIL version 3 concepts, knowing that actual implementation may still be several years out.




Audience polling survey at Gartner Data Center Conference on November 2006 (N = 178),and Gartner Infrastructure, Operations and Management Conference on June 2007 (N = 106) andGartner Data Center Conference on November 2007 (N = 92)

Polling Results: Impact of ITIL Version 3

0% 20% 40% 60%

Aware, but no immediateplans to adopt

Plan to adopt V3, but notslowing down in meantime

Slowing down until V3 isavailable

Previously unaware of V3

We have no ITIL plans

Nov-06Jun-07Nov-08

Key Issue: What is ITIL, and what are the implications of version 3 being released?In late 2006 and mid-2007 Gartner conducted surveys at two conferences about the impact of ITIL version 3. In November 2006, a full six months before version 3 was published, over 50% of the respondents had not heard of version 3 before attending the conference. That was not terribly surprising. However, the second survey was conducted in June 2007 several weeks after version 3 was released, and more than 40% of respondents had still not heard of version 3. Of those that had heard of version 3, they mostly had no immediate plans to adopt it or weren't going to slow down their version 2 implementation. Gartner has seen an increase in client inquiries about version 3, reflecting growing interest in understanding its implications. However, we don't anticipate a significant surge in clients actively working to adopt the new guidance in version 3 until 2008.




Drivers and Hurdles to Implementing ITILSurvey: What is your main driver in implementing ITIL? (N = 180)

Improve quality 53%Increase agility 21%Decrease cost 13%Compliance/risk 9%None of the above 4%

Resources

Identities/Security

Workloads/Data

Pro

visi

onin

g

Optimization

Availability

Real-Time Infrastructure

Standardize Infrastructure

Automate

Standardize Process

Optimize

Survey: What is your biggest hurdle in implementing ITIL? (N = 164)

Requires too much change in culture 43%Lack of organizational guidance 21%Organization too focused on tools 15%Can't justify ROI 12%Too high-level to implement 5%Lack of experienced consultants 4%

Key Issue: What is ITIL, and what are the implications of version 3 being released?Improving IT management process maturity is a long process but will reward IT organizations that undertake the effort. Developing a portfolio of standardized IT services with repeatable process methodologies for service delivery and support will help IT organizations improve IT service quality, reduce costs and increase business value and agility. Setting up the right personnel performance metrics and rewards will encourage IT operations staff to look beyond the reactive "firefighting" mode to devote the time and training required to document repeatable processes, become proficient in their execution and achieve predictable service quality. Senior IT management must assign publicly a high priority to process improvement projects, or these will be relegated to the "back burner." Change individual personnel performance evaluation criteria to encourage (or require) cross-silo process collaboration; and offer incentives for correct behavior. With behavior and culture changes, the people affected must buy into the plan. As part of communications from senior management, reinforce how the change from a technology-centric to a customer- and service-centric mentality will improve the professional life and marketable skills of all involved; also prove how it will enable them to succeed in the IT organization. Don't focus on achieving a specific maturity level as the goal, because this will likely engender destructive behavior. Instead, ensure that you are focusing on the end results of delivering more predictable, cost-effective IT services.

Strategic Imperative: The single biggest opportunity for IT operations organizations to succeed in the squeeze for better, faster and cheaper is to improve their process maturity.




Key Issues








More Process Refinement Initiatives Fail Because of Ineffective Governance Than Bad Designs

Stakeholders• IT operations and production

engineering• Architecture and standards• IT controller• IT service desk• Security and compliance• Business applications

Steering Committee Responsibilities• Service management vision• Project management

and process prioritization• Funding and infrastructure investment• Technical architecture• Standards, tools and

vendor criteria• Measurement criteria• Reporting to management

Key Issue: What pitfalls should be avoided when implementing ITIL?IT management must have a vision of how to organize for the successful adoption of IT service management processes. Process management success requires a framework. A governing community affords a solid starting point. Via this forum, documented policies institute a set of procedures to regulate and control asset processes. It establishes a system of authorizations by which various persons or groups coordinate their efforts and take on specialized roles and functions. The IT organization constructs a network of appropriate dependencies based on a realistic appraisal of what it and others can provide. This approach yields a vehicle that enables the IT organization to control where it is going, not where it has been.Governance will require cross-departmental collaboration. It will offer a forum where policies can be agreed to and grievances can be aired. In addition to the application development team, the operational change group, service desk and operations, the governance committee should include stakeholders from the lines of business. The lines of business will provide some of the vision — expectations for new business objectives, new employee growth and merger-and-acquisition activity.Action Item: Scope the service management initiative small initially. Broaden it with success.




Strategic Planning Assumption: Through 2012, 30% of large enterprises will achieve end-to-end IT service management, up from fewer than 15% today.

Trying to Run Before You Can Walk

Reactive

Proactive• Analyze trends• Set thresholds• Predict problems• Measure appli-

cation availability• Automate• Mature problem,

configuration, change, asset and performance mgmt. processes

• Fight fires• Inventory • Desktop SW

distribution• Initiate

problem mgmt. process

• Alert and event mgmt.

• Measure component availability (up/down)

• IT as a service provider

• Define services, classes, pricing

• Understand costs• Guarantee SLAs• Measure and report

service availability• Integrate processes• Capacity

mgmt.

Service

Value• IT as a strategic

business partner• IT and business

metric linkage• IT-business

collaboration improves business process

• Real-time infrastructure

• Business planning

Level 1Level 2

Level 3

Chaotic• Ad hoc• Undocumented• Unpredictable• Multiple help

desks• Minimal IT

operations• User call

notification

Level 0

Tool Leverage

Manage IT as a Business

Service Delivery Process Engineering

Operational Process Engineering

Service and Account Management

Level 4

Key Issue: What pitfalls should be avoided when implementing ITIL?The IT Management Process Maturity Model shows how IT organizations evolve toward increasing levels of management process maturity. Gartner first presented the model in 1999 to aid IT organizations in plotting a course toward service management and value creation. By understanding where it is positioned in the IT Management Process Maturity Model, an IT organization will be more capable of charting a path to higher levels of maturity, including investing in people, process re-engineering and tools. It is important to note that each maturity level provides the foundation for the higher levels. People, processes and tools must be in place at one level before the organization can proceed to the next. You can't skip steps, although you can focus your efforts on improving the process maturity for a specific IT service or business application, rather than trying to do it for every aspect of the IT infrastructure. Even as IT organizations move up, there always will be additional work, continuous engineering and improvements under way at each level. Action Items: Understand your position in the IT Management Process Maturity Model, and set a goal of the level you need to reach to best support the business. Use the model to help plot a strategy for sequential improvement by investing in IT operations management tools, people and processes to achieve higher maturity levels.




Assuming Tools Will Solve Your Problems

• Be wary of vendor hype• Focus on process first• Tools can be enablers or inhibitors• Assess the capabilities of your

current tools• Review new tools where they would

pay significant dividends• Buy what you need, as you need it

"Man is a tool-using animal. Nowhere do you find him without tools; without tools he is nothing, with tools he is all."

— Thomas Carlyle

Key Issue: What pitfalls should be avoided when implementing ITIL?One of the major contributors to hype surrounding ITIL is the marketing strategies of system management tools vendors. Although the lack of effective tools certainly can inhibit the full exploitation of IT service management principles, tools should not be the primary focus. Tools that support the integration of ITIL processes are beneficial, but most IT operations organizations are not fully utilizing the system management tools they already have licensed. The implementation of new tools involves not only money for tools licenses, but a significant amount of time to plan and implement the new tools. It is unlikely that a single vendor offers a suite of tools that completely satisfies the requirements of an IT operations organization; therefore, additional time and effort will be spent on integrating tools from different vendors. Action Item: Start by reviewing the capabilities of your current tools, and invest only in new tools that will significantly improve your ability to achieve overall IT service management goals.




Confusing the Means With the EndThis is not the goal!

ITIL

Six Sigma

CMMI

Malcolm Baldrige

Certification

Certification does not guarantee good outcomes!

Beware of process for its own sake!

Process improvement is about better outcomes and experiences for customers.

Key Issue: What pitfalls should be avoided when implementing ITIL?The notion of business process improvement is at the peak of its Hype Cycle, and IT is not immune. Many standards, such as ITIL, CobiT and CMMI, exist for IT, yet their differences, benefits, and the overall rationale and impact of a process program for IT are poorly understood. Never lose focus that implementing ITIL is a means to an end. Don't emphasize the importance of achieving a particular level of maturity, or earning an external certification more than the underlying reasons ITIL is being used. Process improvement can take on a life of its own, and staff members can become resistant, if they perceive ITIL is simply adding more bureaucracy to their daily jobs. Focus, instead, on the benefits that IT users and customers will receive, such as lower costs, higher quality and consistency, or the ability to respond more quickly to changing requirements.

Tactical Guideline: Leaders must ensure they never lose focus on the underlying goals and objectives for their ITIL initiatives.




Key Issues








Keep Focus Narrow, and Deliver Benefits

Determine where to start• Not necessarily on the least mature processes• 80% of clients start on core service support processes like change,

incident and problem management• Service-level management is often the first of service delivery

processes • Consider service life cycle approach in ITIL version 3Deliver benefits quickly to address "pain points"• Reduce percentage of changes causing incidents, improve MTTR• Builds momentumTake an iterative approach• Design 80% solutions, and plan to improve later• Channel benefits to "self-fund" the next phase• Periodically reassess priorities

Key Issue: What are the critical success factors and practical methods to maximize return on investment?When learning about ITIL, it doesn't sound difficult to adopt best practice processes that adhere to the spirit of the guidance. ITIL describes many common-sense principles and doesn't involve "rocket science." However, effectively using ITIL is more about cultural change than anything else, and people can absorb only so much change at once. Taking on too large a scope, such as working on all 10 core service support and service delivery processes at once, will almost always result in the ITIL implementation initiative bogging down. Momentum will be hard to maintain, and staff will begin to wonder if the initiative is worthwhile. If a periodic belt-tightening exercise occurs, the ITIL effort will undergo much scrutiny, because few benefits have been achieved, owing to resources being spread too thin. Therefore, approach ITIL as a phased effort, and keep the scope focused initially on areas where you can address pain points and deliver measurable benefits in a reasonable time frame, such as four to six months. Positive results from early implementations will help boost commitment at senior levels and will break down resistance at the worker level. Some Gartner clients then use the benefits, such as reduced labor required to perform tasks, as a way to reinvest in the next phase of improvements.Action Item: At the end of each significant phase of implementing ITIL, stop to reassess the priorities of the plan, and make adjustments, as necessary, on where to focus next.




Strategic Planning Assumption: Through 2010, 50% of organizations will not build sufficient top-down and grassroots support for ITIL.

Build Top-Down and Grassroots Support

• Tailor messages for stakeholder groups• Reward process victories vs. traditional hero behavior

Emphasize WIIFM

Treat as an organizational

change initiative

Communicate frequently and

consistently

• CIO or head of infrastructure and operations must be a visible champion

• ITIL is much more about people than about technology• Change the culture to embrace standardization vs.

unique solutions• Don't ignore people change by concentrating only on

process and tools

• Clearly articulate underlying goals and objectives• Report on progress — macro and micro

Key Issue: What are the critical success factors and practical methods to maximize return on investment?Without top-down support from senior management, and buy-in and support from worker-level personnel, you are unlikely to achieve the goals associated with an ITIL implementation. Many clients lacking one of these key ingredients reported that their first attempt to leverage ITIL "stalled" and that they are regrouping for a second try. If senior management, such as the CIO or head of IT operations and infrastructure, doesn't sponsor and champion the effort, then lower-level employees will spend more time working on building a business case to "sell" to management. Although ITIL focuses on process improvement, it is more of an organizational change initiative than anything to do with technology. Thus, leaders must talk often about the reasons the organization must change and must provide the support and resources to make it happen. In many organizations, technical staff react to an ITIL-based process improvement effort as simply the latest management fad, more bureaucracy and more forms to fill out to slow them in doing their jobs. It is important to explain the benefits they will see personally, as well as what the organization has to gain.Action Item: Reward good process behavior that improves quality and prevents problems just as the traditional hero who saves the day and fixes a problem was rewarded in the past.




Take a Structured and Holistic Approachto Process Refinement

Structure ProgramWhat is the governance structure?What pain points are addressed?

Structure ProgramWhat is the governance structure?What pain points are addressed?

Task-Level Process Detail

InformationRequirements

AutomationDetail

= Reference Material

= Detail Design

= Implementation

Define IT Service PortfolioIT's service catalog; tiered services?

Consumption approach? Chargeback?

Adopt Process Reference Architecture

Define a conceptual, integrated target stateClean-sheet design concept

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

Develop Transition Approach and 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

Build Process Logical ArchitecturesDefine the target state detail for each process

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

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

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

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

Key Issue: What are the critical success factors and practical methods to maximize return on investment?The chart above represents a process utilized by Gartner Consulting on many process refinement engagements with large, complex client organizations. Although the average organization pursuing an ITIL implementation on its own may not go to this level of detail, there are several important lessons to learn. The temptation when doing process refinement is to rush to the development of complex process workflows. Unfortunately, there are prerequisites to successful process refinement. It is important to lay out a strategy and plan for the initiative, which includes defining the goals. Next, it is important to establish a baseline for current processes performance so that improvement can be measured. Of course, there are the core activities of working on defining new processes, or of specific changes and improvements to current processes. But the effort doesn't stop there. Developing a document or Web pages that describe the wonderful new processes adds no value unless people begin using the new processes. Don't underestimate the level of effort to transition people to the new processes, to acclimate them to proper procedures, and to track metrics to provide ongoing feedback on the health of the processes.

Strategic Imperative: Lay out a plan that includes creating a solid foundation to build on and the necessary steps to manage the transition plan as process changes are rolled out.




Effectively Staff Crucial Roles

• Designate individuals as process owners• Assign (virtual) teams of subject matter experts• Use program or project managers• Desirable characteristics for team members:

- Credibility- Communication skills- Process and customer focus- Ability to deal with ambiguity- Commitment to the cause

People will make or break your ITIL initiative

Key Issue: What are the critical success factors and practical methods to maximize return on investment?We often hear that problems must be addressed from a "people, process and technology" perspective. Yet, being IT people, we still tend to focus most of our attention on technology. We are just beginning to raise the focus on process, and the people part of the equation is often overlooked. For ITIL to be successful in an organization, it is imperative that highly credible people play leadership roles. Organizations typically will name individuals to serve as process owner for one or more processes. The role of the process owner is to lead the definition of the process, the creation of metrics to track the ongoing health from an efficiency and effectiveness perspective, and drive for continual improvement. In some cases, this is a dedicated position, but most often it is a part-time role. Other individuals from across the organization, such as senior network or server administrators, are assigned to work on a virtual team supporting the process owner and helping to champion the adoption of standard processes in the technical community. It's important that an organization doesn't assign these and other critical process roles simply to resources that are "most available." It's important to choose individuals who have credibility with management and technical staff, and that they can deal with the ambiguity often associated with process improvement.

Strategic Imperative: Choosing individuals with credibility in the organization and the appropriate mix of skills is vitally important to achieving the goals of your ITIL-based service management transformation initiative.




Leverage External Resources

Formal training- Foundation certification- Practitioner certification- Manager/master certification- ITIL diploma/advanced diploma- Overview exposure methods

Sharing lessons learned- Gartner, vendors, peers, itSMF

Consulting assistance- Assessment, planning and implementation assistance

Don't reinvent the wheel, learn from others!

Key to Success

Key Issue: What are the critical success factors and practical methods to maximize return on investment?ITIL is a set of high-level guidance intended to apply across a wide range of IT organizations in different industries. It must be adapted to fit the unique needs of an individual organization. However, many lessons can be learned and pitfalls avoided by observing others who have gone before. Inquiries to Gartner indicate that the most common way to leverage external resources is through formal training, often leading to the foundation level of certification. This is a great way to baseline the knowledge of individuals who will participate in ITIL initiatives. Some clients send a smaller number of individuals through the more comprehensive practitioner-and manager-level certifications. Networking with peer organizations is a great way to swap "war stories" about what has worked, and (often more valuable) what hasn't worked as well. Vendors will share the case studies of their successful customers, and Gartner can provide advice tailored to your situation. The IT Service Management Forum (itSMF) is an international organization with more than 35 country chapters and many local interest groups focused on knowledge sharing to advance IT service management. Finally, some organizations choose to leverage consulting firms to provide "hands on" help in many ways, such as assessing the maturity of current processes, building a plan to implement service management and even assisting in the actual implementation.




Infrastructure &Operations Maturity Model:Four Key Dimensions of Assessment

AgilityQualityEconomics

Customer Satisfaction

Business Management

People

Process

TechnologyBusiness Value

Business Contribution

• Focus• Standards• Integration• Metrics

• Standards• Efficiency• Agility• Service quality• Tools

• Planning• Financial

management• Metrics• Governance• Sourcing• Project management

• Organization• Roles• Culture• Skills• Training• Metrics

Key Issue: What are the key trends and strategies driving the adoption of ITSM?In October of 2007, Gartner introduced a new Infrastructure and Operations Maturity Model (IOMM). Process-centricity is necessary but not sufficient for a broad IT maturity model. Process-centricity makes sense when process alone drives maturity and all other elements follow. However, in the IT industry, technology is constantly evolving. Discontinuity is the norm. In other words, technology is also a causal factor driving maturity. An IT maturity model must also be technology-centric. As IT becomes more ingrained in business processes and becomes more of a profit center, IT organization, culture and skills will also need to radically change. Change in culture and organization will often be a prerequisite to process improvement and a shift in how technology is leveraged. An IT maturity model must also be people-centric. Finally, the intersection of process, technology and cultural improvement should be directed toward making IT run as a business for the business. The business of IT must be managed differently and more cohesively, with all the business functions that are required of their business customer counterparts, including product management, marketing, business development and cost accounting. As a result, the IOMM includes a focus on maturity in four dimensions: people, process, technology and business management. We equate people, process and technology to the legs of a stool, with business management bringing them together. The combination of all four drive business value, including service quality, economics (efficiency), agility, customer satisfaction and business contribution.




IT Management Process Maturity Assessment

Business contribution metrics

Integrated IT and business processes

Dynamic automation

Innovation, DRM as component of BCM

5

Formal SLAs, metrics drive optimization initiatives

Fully defined service delivery architecture

Automation extensively implemented

Capacity Mgmt., Pre-production Rigor, IT Service Portfolio Mgmt., Service-level Mgmt.

4

Track and trend OLAs, availability targets

Integrate adjacent processes

Standards enforced

Release Mgmt., IT Service Delivery, Instrumentation, IT Operations Center

3

OLAs, SLAs for support

Few outside tools

SomeIT Service Support, Desktop Mgmt., Project Mgmt., Basic DRM

2

Ad Hoc — From Tools

NoneNoneBasic Mgmt. Tools Define Process

1

NoneNoneNoneNone0Level Focus/Implementation

Standards/Automation Integration Metrics

As organizations progress in IT management process maturity, they focus on more-encompassing and complex IT management processes. In Level 1, the focus is on visibility, and control and management tools are used to begin to get it (such as inventory, event management and backup/recovery). Moving to Level 2, the focus is on customer satisfaction, and more-formalized management processes are defined and implemented for IT service support and project management. Level 3 adds greater maturity in release management, which is difficult to achieve in Level 2 because of the process integration required across departments outside of I&O. Service delivery processes are the focus at Level 3, including adding an IT operations center function. Level 4 significantly steps up business management processes, including IT portfolio management and service-level management, as well as furthers release management with greater pre-production rigor and capacity management based on business demand analysis. Level 4's focus is on running IT as a business as an internal service provider, with a focus on formalized roles and associated processes. Level 5 adds formalized innovation processes, such as those of an emerging technology organization. The other three process attributes increase in capability and business orientation, as well as raising maturity levels.




Example of Depth Behind Each Dimension: Process Dimension, Metrics

• Business value/contribution metrics well understood, reported, optimized• BAM metrics implemented for business process health, IT service health

correlated with business process.• Innovation metrics analyzed for business impact and optimization opportunities.

5

• Metrics emphasize continuous optimization and comparison to industry best practices.

• Formal SLAs, customer reporting with action plans, if necessary.• IT service metrics aids business decision making and prioritization

4

• OLAs for all defined processes; trended and assessed for improvement opportunities (e.g., time to provision new employee, infrastructure provisioning time, DR success, changing causing incidents).

• Application-level SLA targets are implemented, tracked and trended.• IT initiates SLA definitions in design phase of new projects.

3

• OLAs implemented for component performance, availability and vendor reliability/serviceability.

• SLAs implemented for end-user support. • Process performance tracked and trended.

2• No formal metrics; tools may define metrics1

Each dimension and attribute gets defined further in the model so that an organization can evaluate its specific maturity placement for that dimension/attribute by analyzing how closely its state matches those in the model. For example, an organization may analyze the process — metrics dimension/attribute (shown in the graphic) and select Level 3 as the one that most closely represents its environment (because, for example, they have operating-level agreements [OLAs] defined for all processes, they assess OLAs for improvement opportunities and they have implemented service-level agreement [SLA] targets for applications). The Gartner model does not provide for detailed scoring for each attribute; however, the attributes are each weighted so that the scoring for the attributes can be added together to determine the maturity level for the dimension. Based on the overall dimension maturity level, the model identifies recommended actions for improvement, as well as Gartner research that may assist.




Elapsed Time and Effort Are Greater Between Levels 2, 3 and 4

01

3

4

5

Proactive

Service-Aligned

BusinessPartnership

Survival

Critical Success Factors

2

CommittedAwareness

Resources and Effort

Time

• Senior management commitment

• Persistence and patience

• Culture of continuous improvement

• Funding

• New metrics

Key Issue: What are the interdependencies between ITSM processes and principles and high quality DR and BCM?The steps through the maturity model are not evenly distributed in time and effort. Although each step represents significant improvement and benefit, there is greater time and effort in moving from committed to proactive, and from proactive to service-aligned. This is, in part, because of the radical cultural changes introduced in these stages in moving to institutionalizing IT service management, including processes, organizational structure, technology implementation and business management functions. For example, moving from a dedicated IT service infrastructure to a shared IT service infrastructure significantly changes the way assets are acquired and planned, as well as the way IT service costs are assessed and pricing is implemented. As a result, to persist through these levels requires a sustained level of management commitment — commitment in funding, to culture changes and reorganizations, to process improvements and to changing metrics. Given that CIOs often have relatively short tenure, this commitment must ride through executive and leadership changes. Therefore, commitment often has to rise above the IT organization (although the evangelists will be inside IT) to the CEO level, especially when it comes to the commitment to standardization (and, to some extent, centralization).




Comprehensive Approach to Improvement

Six σ

IT Operational Processes — ITIL

Application Development Processes — CMMI

Project Management Processes — PMI

1. Establish the work

2. Align roles with work RACIRACI

3. Identify appropriate measures

4. Apply governance

CobiT

Key Issue: What are the critical success factors and practical methods to maximize return on investment?Because no process framework represents all IT perspectives, it is imperative that the IT organization be capable of identifying frameworks that are a best fit with the work currently being done in the organization, expanding and building on the frameworks, as necessary, to create a more complete interpretation of the work structure. ITIL is a great place to start, but be aware also of how others can be leveraged.There are as many interpretations of the processes as there are people who believe they should "own" the processes/tasks. Identifying who participates, at what points in the process and their level of participation (Responsible = participates, Accountable = owns the function, Consulted = advisory role, Informed = notified of work) is referred to as RACI modeling. In addition to helping organizations communicate participation, RACI models help identify gaps/overlaps in participation that often wreak havoc with organizational performance.Action Item: Rather than looking for a single source of performance information, organizations should identify the measures that accurately represent their performance/quality.




Key Issues








Use Metrics to Drive Behavior and Measure Progress

• People inherently want to do a good job• What gets measured gets attention• What doesn't get measured drops off the radar• People will take action to move a metric in a

positive direction- People will do "dumb" things- People will stop doing "smart" things

• Focus on analysis and action vs. reporting- Select a few key metrics, instead of many- Measure what will help you improve, not what's

easy to measure- Create "tiers" of metrics tailored to different audiences

Key Issue: What are the critical success factors and practical methods to maximize return on investment?Successful organizations typically have well-defined and well-articulated goals and objectives. Translating these goals and objectives into quantifiable metrics is a way to motivate people to try and achieve them. However, metrics can be a double-edged sword. People will modify their behavior to do what they think will help achieve a particular metric on which they are being judged. If the metrics aren't carefully selected, the behavior that is encouraged may actually hinder the organization from achieving its goals. For instance, if service desk agents are measured by the number of calls they handle, they naturally will attempt to keep each call as short as possible to rack up numbers. This can be damaging to customer service. At the other extreme, if service desk agents are judged on the percentage of calls resolved without having to escalate, they will keep the customer on the phone for an excessive time in the hope of solving the problem. By creating a balanced set of metrics, you can ensure that people better understand the desired behavior. They will find ways to avoid either extreme. Metrics are powerful, but complex. They should be monitored to ensure that they serve as a means of measuring something you want to achieve. Action Item: Examine the metrics you track today to see if they actually encourage the right behavior.




High-level Metrics for Infrastructure and Operations Organizations

• Availability / Quality- IT Service Index- Aggregate Service Level Agreement Achievement- Customer Satisfaction Survey

• Efficiency / Cost- IT Service Unit Cost Reduction- Budget Adherence- Benchmarking Performance

• Agility / Innovation- Increased Speed of Change- Business Benefits from Technology Innovation




Even If the ‘Gold Mine’ Is Hard to Get to — The Nuggets You Do Pick Up Are Well Worth the Journey

Process, service and quality improvement are not a one-off activity. Investments in fundamental improvements will pay off many times over.

Results based on actual improvement metrics collected from a subset of Gartner Consulting clients.

Typical improvements during a three-

year period

Task Improvement

Time:For Infrastructure Management Tasks reduced by 54%To identify cause and fix downtime incidents reduced by 49%To bring new system into production reduced by 39%

Costs & Staff:Overall cost to manage workload reduced by 28%Increase in productivity per staff member by 26%

Availability:Server downtime reduced by 79%Network downtime reduced by 74%Overall system downtime reduced by 76%

Customer Satisfaction:Line of Business (LOB) Dissatisfaction with IT reduced by 82%

This data was collected from 25 Gartner consulting clients in 2005, and is based on benefits resulting from process improvements occurring over a 2.5- to 3-year period. Following is an example of the data behind this analysis.A financial services firm adopted IT Service Management three years ago and has been working to improve its change, configuration, incident, problem and availability management processes. Some of the benefits the firm has seen are as follows:

• Reduced time to repair (root cause) from 14 hours to 6 hours.• Reduced time to detect problem from 20 minutes to 60 seconds.• Reduced network system alerts from 500,000 per day to 60.• Now resolve 92 percent of level 1 incidents without escalation.




Service Management Process Maturity by the Numbers

• The Average Process Maturity across Service Management processes still leaves much to be desired (based on a 1-5 CMMi Like Scale)

IT Service Management Process Maturity

0.00.51.01.52.02.53.03.54.04.55.0

Availa

bility

Man

agemen

t

Chang

e Man

agem

ent

Config

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on M

anag

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t

Enterp

rise C

apacit

y Plan

ning

Incide

nt Man

agem

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IT F

inanc

e Man

agem

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Proble

m Man

agem

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Releas

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agem

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Servic

e Con

tinuit

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Servic

e Des

k

Servic

e Lev

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IT Process

Mat

urity

Lev

el

Industry Average

Best Observed Implementation*

* Analysis based on 473 Gartner Consulting observations

5 = Optimized: Highly mature, fully optimized4 = Controlled: Proactively managed and controlled3 = Defined: Moderately mature, consistently defined process across the enterprise2 = Repeatable: Starting to be seen in silos across the organization, but may be executed differently across

various groups1 = Ad hoc: Immature process with no leverage, ad hoc




What Should Be Measured and How?

• A tiered measurement structure is required for ensuring the appropriate level of velocity and effectiveness of change

- Program-Level Metrics• e.g., Financial Metrics; Service

Improvement Metrics; Customer Satisfaction Metrics; Regulatory Compliance Metrics

- Process-Specific Metrics• Efficiency Metrics (How well are you

executing)• Effectiveness Metrics (Are you executing

the right things well)• Value Metrics (Is the effective execution

creating the expected business value)

• The use of program-level metrics as a marketing vehicle are critical in retaining executive sponsorship




Incident Management / Service Desk Metrics

Mean Time to Restore Service (MTTR)% First contact resolution (FCR)# of Incidents / calls% of Incidents by category (see next slide for examples)Average call duration (on phone)Abandonment rate% Repeat incidents% of Incidents associated with a problem# or % of high severity incidentsService desk agent utilization %Average # of incidents per agent (monthly)Transactional customer satisfaction survey (after each incident)Periodic customer satisfaction survey (once or twice annually)

Recommendations




Understanding IT Service and Support Demand Mix

End-users submit problems about how to accomplish, access or operate IT resources.

A specialized end-user problem regarding establishing or regaining access privileges to IT resources.

A specialized case of an end-user break/fix problem that affects a substantial group of end users.

End-users can't access or operate IT resources for various reasons.

IT- or non-IT-related service requests regarding a range of support-specific service offerings.

End-user request for IT install, moves, adds or changes that aren't the result of an infrastructure failure.

"How-to"

IMAC

ServiceRequest

Break/Fix

Outage

Password Security

27% to 43% of contact volume






What actions can service desk organizations take to improve customer service and reduce inefficiency costs?To improve service and support delivery, the IT service desk must develop ways of automating the "knowledge" that is

made available to IT service desk analysts to resolve requests within the computing infrastructure. The only way to automate that knowledge is to gather detailed information regarding the total demand by type of problem and service request. Accurate coding of each request is critical so that the data can later by analyzed properly. Call types to analyze include: 1) How-to: End-user-placed calls regarding how to accomplish, access or operate IT resources. 2) Break/fix: End-user calls placed as a result of a problem with accomplishing, accessing or operating IT resources. 3) Password reset: A specialized end-user call regarding establishing or regaining access privileges to IT resources. 4) Outage: A specialized case of an end-user break/fix call affecting a substantial group of end-users ("flood calls"). Calls are placed to the help desk to inform, inquire or complain about accessing or operating IT resources. 5) Service request: IT-related and non-IT-related service request calls (or status checks on requests) regarding a range of support-specific service offerings. 6) Install moves, adds and changes (IMAC): Changes are user-placed calls resulting in changes to the IT infrastructure that aren't a result of IT infrastructure failure.Action Item: IT service desk management must establish a categorization schema, training analysts on how to use it, and have a team lead to review logs to ensure consistent coding

Strategic Planning Assumption: Through 2010, the complexity of issues managed by Level 1 service desk will drive the average call length up 10% (.8 probability).




Distinguish Service, Cost, Value and Operational Metrics

Cost • Average case load management

L0, L1 and L2 tiers: e.g., L0 30%, L1 55% and L2 12%

• Service analyzed by cost per channel: call, e-mail, self-service, Web chat

Value• End-user productivity• Service comparison with ESPs• Savings per proactive

automation

ServiceCustomer satisfaction dashboard ratings based on service transaction, annual and project survey, e.g., transaction satisfaction 4.35 on scale of 1 to 5, or 85%

Operational• Contact resolution rate:

e.g., 75%• Abandonment rate: e.g., <4%• Average analyst production goal:

e.g., L1 400 to 600 per analyst

What actions can service desk organizations take to improve customer service and reduce inefficiency costs?IT organizations can display their value to the bottom line by moving beyond traditional IT service and support statistics and tracking business-related metrics. IT service and support excellence will require the IT service desk and other IT departments to align with new, more-business-oriented metrics. A more-holistic analysis of service places balanced attention on quality, value and cost. The following metrics are among those most likely to be embraced through 2010 by the IT service and support organization: allocation of contact volume, portfolio mix, contact avoidance, contacts per end-user, end-user productivity, customer satisfaction ratings and service value vs. cost (see "CIOs Need Better IT Service and Support Metrics," DF-22-5393). To analyze service value vs. cost, calculate the cost per transaction for every channel (phone, e-mail, Web and so on). Review these findings against satisfaction ratings and service value rankings from the business. To gain an accurate picture of cost by service, IT management needs to gather all contact data by tier and channel and calculate the associated costs. Business survey and channel interaction data offers useful insight into trends of demand, such as whether end users prefer e-mail vs. the phone. Good interaction cost assessment by channel gives guidance toward operational efficiencies. For example, password resets handled by Level 1 staff cost, on average, $12 per transaction, while Web self-service costs $2.Action Item: Develop account service value based on satisfaction and SLA requirements, which should base the IT service and support portfolio on sound business guidance.

Strategic Planning Assumption: Through 2008, 60% of IT service desks will not have the data required to measure performance (.8 probability).




Knowledge Automation Affects Efficiency of Incident and Problem

How-toPassword Resets

Intranet/InternetSelf-ServiceLe

vel 0

Service Desk Analyst ResourceLe

vel 1

Manual Environment

Password Resets

Outag

e

Break/F

ixTechnical Staff ResourceLe

vel 2

Strategic Staff ResourceLe

vel 3

Outage

How-to$1 to $10

$10 to $37

$35 to $250

$100 to $500

Cost per Transaction

Break/Fix

What actions can service desk organizations take to improve customer service and reduce inefficiency costs?New automation technologies and service processes alter the delivery model from one-to-one (agent-to-employee) to one-to-many (automated-solution-to-employees). The primary value of enhancing the CSD with self-service capabilities is to provide proactive, more-automated and better-quality service at increasingly lower costs. However, doing so requires a deep understanding of what constitutes success by aligning tools, processes and problem types to improve overall productivity.Most companies have at least four tiers of support, starting with the service desk and increasing from there in terms of the level of touch and the cost of touch. The goal of automation is to provide some self-service capability and to drive the resolution of the problem down to less-expensive tiers. Password resets and some "how-to" questions, which would be answered by the service desk in an environment that isn't automated, would move down to a new self-service tier with little or no incremental cost per call. Some break/fix and outage issues, all of which were once escalated to Tier 2 and Tier 3 technical-support staff, can be resolved by the service desk by leveraging asset data shared via asset, inventory and configuration discovery tools.Action Item: Examine all problems and escalations to rationalize processes and push problem resolution to the most-efficient and cost-effective tier in the support structure.

Strategic Planning Assumption: Through 2008, problem resolution driven down to Level O and Level 1 support will reduce support costs at the service desk by as much as 25 percent to 50 percent (0.7 probability).




End-user Training

Bug Fixes

Cross Training

KM Repository

Optimized Application Development Support via Subject Matter Knowledge Transfer

Time

Num

ber o

f Sup

port

Cal

ls

Initial Rollout

Legacy

Level 2 and 3

Level 2 and 3

$$$$

Level 1 $$

Level 1

Level 2 and 3

Level 2 and 3

Level O

What actions can service desk organizations take to improve customer service and reduce inefficiency costs?In analyzing the life cycle of support, it's generally described in four escalation levels (0 to 3). Application support most often represents an escalation from the service desk (Level 1) to application development (AD) resources at Level 2 and Level 3. Historically, many incidents were logged at Level 1 and dispatched to subject matter experts within AD. Typically, the AD support group would cover incidents ranging from "how-to" to end-user errors, bugs or requests for small enhancements (less than two person-weeks). This may involve working with the user to aid in knowledge assistance, report generation or electronic data-gathering requirements. Today, there is interest in devoting AD support personnel more toward maintaining operational applications and less toward consistent and mundane issue resolution, by pushing down traditional AD Level 2 and Level 3 incidents down to Level 0 and Level 1 where overall resolution costs are much lower. AD support and the service desk should work together to analyze those Level 2 and 3 AD support requests that can be more cost-effectively handled by Level 0 and 1. The pace of moving calls from Level 3 to Level 0 and 1 will require a cost and customer service impact analysis, taking into consideration the complexity and consistency of the request, the level of training Level 1 analysts will need, the cost of fixing bugs, the effort required to document into a knowledge base the root cause analysis, and budget allocation between the AD support and service desk departments.Action Item: Excellence in IT service and support requires adherence to incident and problem workflows and knowledge resolution grooming between the CSD and AD.

Strategic Imperative: IT service and support excellence requires improved incident and problem handling between application development and the service desk.




Problem Management Metrics% of Incidents defined as problems# of Problems Outstanding# of Known errors (workaround available)# or % of Repeat problems# of Major problem reviews# of Action items from major problems review in progress# of Action items from major problem reviews completed

Recommendations




Relationship Between Change, Configuration, and Release Management

Process-oriented (not a doer)

Change requests

Change approvals

Change impact (if CMDB or dependency mapping)

Process-oriented (not a doer)

Maintenance planning & policy

Change groupings

Change scheduling

Integration testing

Management task development and testing

Discoverer

Doer/changer/deployer

Policy/standard development

Audit/compliance/remediation

CMDB

& Others

Change

Configuration

Release

Key Issue: What are the drivers and trends in configuration and release management, and how will it continue to evolve? Three key processes that become critical to the success of an agile enterprise ready for the increase in change frequencies are: Change, configuration and release management. Change management is often established to enhance the audit and governance process, ensuring that the right changes happen at the right time, by the right people to the right components with an understanding of the impact of this change on other infrastructure components. Change management is a passive process, it doesn't actually affect a change but it is the workflow to govern the approval, implementation and verification process. Configuration management is an active process. It involves, provisioning, updating, discovering, baselining and patching infrastructure components and IT services, and is also the process that audits for configuration compliance and remediation. With a focus on IT transforming to a "service provider", recent configuration management projects are tied CMDB initiatives which promises to deliver a consolidated repository with an IT services view to aid in understanding the impact of changes. Although most IT organizations are focused on change and configuration, release management as a complement is imminent — to ensure the integration testing rigor required for 24x7 as well as management policy development. Change configuration and release management are different, but they have critical points of integration. Action Item: IT management must be prepared to make investments in change, configuration and release management in a consistent, parallel and incremental fashion.




Change Management Metrics# of RFCs (requests for change)% of Changes resulting in an incident (or positive version)% of Changes that had to be backed out (failed changes)% Urgent changes (out of cycle workflow required)# of Unauthorized changes detected# of Preventative changes% of Changes grouped in to releases% of Changes discussed at the Change Advisory Board (CAB)% of Changes discussed at the CAB resulting in an incident% of Changes not discussed at the CAB resulting in an incident

Recommendations




Configuration Management Metrics# of Configuration Items (CI) being managed% of Changes failing due to CI errorsAccuracy of CI / CMDB audits# of CI changes without a RFCFrequency of configuration drift report analysisSLA breaches due to inaccurate CMDB

Recommendations




Release Management Metrics# of Releases% of Successful releases (or negative version)% of Urgent releasesAdherence to published release scheduleAvailability of Test/QA environments% of Incidents preventable by testing

Recommendations




Service Level Management MetricsCustomer satisfaction (typically based on surveys)# of SLAs breached# of SLA targets almost breached% of SLA breaches due to missed OLAs% of SLA breaches due to third party (Underpinning Contracts)Frequency of productive service reviews with customers# of Services with defined SLAs# of Services without defined SLAs

Recommendations




Considerations When Defining Services• Define who the customer is for

each service• IT operations customers may

be end users or application development groups

Focus on Customers

"Who"

Services must make sense to

customers

1

• Establish suites of related services, such as workstation services

• Provide distinct options to fit different requirements

• Identify required components to deliver the end-to-end service

Define Suites of Services

"What"

Aggregate similar services to

simplify for IT and customers

2

• Clearly articulate service characteristics

• Describe service delivery SLAs • Describe service availability SLAs• Explain how SLAs will be measured

and reported quantifiably

Establish SLAs

"How Well"

Managing expectations is the single most important goal

3

Key Issue: What are specific incremental steps to begin taking that will yield benefits?Determine the customer constituencies for IT operations. Some of the services IT operations provides are delivered directly to end users, such as the provisioning of laptops or desktop PCs with software and connectivity. Other services, such as application hosting, may be provided to an application development group, which in turn uses it as infrastructure to run a service it offers to a business unit such as CRM or order processing. To avoid creating confusion from a large number of discrete services, group similar services into suites. For example, a workstation services suite could include the PC or laptop, file and print services, e-mail and network connectivity, as well as associated services, such as access to the help desk and support for install, move, add and change requests. Aggregating services into suites helps in communicating with customers and managing demand and expenses at a more-aggregated level. SLAs help customers understand what to expect,but must be based on accurate forecasts of demand. There are typically service delivery SLAs, such as three business days to provision a workstation for a new employee, and service availability SLAs, such as corporate intranet availability of 99.5% on a 24x7 basis. If the business exceeds its forecasted demand significantly, the SLA should be renegotiated and the IT organization given time to re-provision its services to accommodate the increased demand. If the business significantly overestimates what it will consume, it still bears the cost of what turned out to be unneeded overprovisioning, assuming the IT department has already invested in the infrastructure improvements.

Tactical Guideline: Service-level definitions must be two-way, with the business detailing the amount of service it will consume (demand side) and the IT organization committing to the service quality it will deliver (supply side).




IT Financial Management MetricsFinancial objectives met (adherence to budget and/or profitability)Accuracy of forecasts% of Total IT costs accounted forProduction of financial reports and forecasts on scheduleCompletion of financial audits on scheduleAnnual unit cost reduction for IT servicesStaffing efficiency ratiosBenchmark results against peers% of Total staff time spent on financial activities

Recommendations




Capacity Management MetricsCapacity forecast accuracy (business growth)Capacity forecast accuracy (workload volumes)Capacity forecast accuracy (IT resources consumed)Incidents due to capacity shortfallsSLA breaches due to capacity shortfallsUnplanned capacity upgrades requiredUnplanned acquisitions due to capacity

Recommendations




IT Service Continuity Management Metrics

# or % of Services with service continuity plansFrequency of validating business requirements (RTO’s and RPO’s)Frequency of reviews of service continuity plansFrequency of tests of service continuity plansCost to test service continuity plansSuccess rate of tests# of action items identified to remediate issues uncovered during testing% of Third-party service continuity plans tested% of service continuity plans tested by junior-level technical personnel

Recommendations




Availability Management MetricsAvailability of servicesAvailability of platforms (servers, networks, storage, etc)Service index / pain index (impacted user minutes)# of Outages due to hardware, applications, process, human error, etc.# or % of outages due to third-party service providers# of Service improvement plans in progress# of Service improvement plans not yet staffedMTTR

Recommendations




Q & A / Discussion