The Real Deal: Developing Your Service Portfolio and Catalog – Session 204

Agenda• Introductions• Service Portfolio vs. Service Catalog• Who Cares? Show the Value of IT!• Where to Start• Agile Approach

– Assess– Design– Adopt– Improve– Control

• Summary• Learn More!

Introductions• Paul Solis – Cask, LLC• You– Who has implemented a Service Portfolio and

Catalog in their organization? – Who has used Agile techniques for process or

service design?

Service Portfolio vs. Service CatalogAudience Service Portfolio Service Catalog

Business • Improves perception of service quality on business-critical IT services

• Complete definition of business investment in IT

• Simplifies process for requesting services from IT

• Introduces self-service ordering mechanism

IT • Defines service cost• Clearer understanding of

support and management of services

• Improves IT’s credibility with the business

• Automates order-to-delivery process for services

• Centralized ordering point reduces out-of-process requests

Who Cares?

Show the Value of IT!Business Services

Service Name and Description

SLA

Service Cost

Customer Experience

• Meaningful and memorable

• Well thought through services

• Target specific customers

• Tell customers what they get and how much

• Educate customers• Easy to use

Where to Start• Service Portfolio first!• Start top down with customer facing

services:– Engage the business – not with a blank

sheet of paper– Define the current business services – Demonstrate how they are bundled and

packaged– Define business outcomes and value

• Service Portfolio becomes the service-decision making framework

• The Service Portfolio is a solid foundation to instantiate a customer-facing Service Catalog

Through 2013, 70% of IT organizations with an IT service portfolio management project will rush to develop the IT service catalog as a customer-ordering mechanism before documenting their IT service portfolios.

By 2015, 80% of IT organizations that developed their IT service catalogs prior to their IT service portfolios will suffer the additional cost of overhauling the service catalog contents once the portfolio is defined.*

* Source: Gartner

Traditional vs. Agile ApproachesTraditional ITSM Agile Service Management• Cookie cutter process diagrams that

require an organization to fit into something that doesn’t work for them

• A stack of non-actionable documents

• Unfocused; Let’s Implement ITSM

• Long overextended engagements

• Focus on processes and tools first and understanding the organization last

• Lack of customer interaction, communication and adoption strategies

• A process focus rather than a service-oriented focus

• Combination of industry best practices including ITIL, Lean Six Sigma and ISO/IEC 15504

• Agile focus on high priority goals, “customer stories”, to rapidly provide tangible results

• Aligning services and processes to organizational mission and goals

• Repeatable to focus on “real” service and process quality improvement

• Continuous feedback throughout

Agile Approach – What is Agile• AGILE - Marked by ready ability to move with

quick easy grace (www.merriam-webster.com)

• Agile Service Management embraces agile principles by:– Executing high involvement strategies to enable the

people who will be executing the process to design process that meet real needs

– Enabling changing priorities to ensure the effort addresses the most pressing needs the business faces even as those needs change over time

– Implementing frequent feedback cycles to ensure course corrections occur early in the implementation cycle

– Delivering frequently to ensure the organization gains efficiencies early and often through out the overall effort.

aSM™ for Portfolio and Catalog – Phases

Customer Stories

Data Collection

Prioritize Services

AssessDefine Services

Service Attributes

Service to Process Map

Orderable Services

DesignCustomer Training

Marketing

AdoptPublish Catalog

Customer Feedback

ImproveMaintenance Plan

Re-prioritize Customer Stories

Control

Iteration Start and End

Service Portfolio

Service Catalog

Sample Agile Iteration

• Usually between 3-4 weeks• If it is too long you are no longer delivering

service design quickly

1 - 3Assess

3 - 17Design

17 - 21Adopt

21 - 24Improve

24 - 26Control

3Customer Stories Defined

and (Re)Prioritized

17Portfolio Services Defined

and Orderable Catalog Services Determined

21Training and

Marketing Developed

24Service Catalogand Customer

Feedback

26Maintenance

PlanContinuous

Daily Feedback

Next Iteration

Assemble aSM™ Team• Agile Lead – Coordinates the team’s

efforts

• Team Members – Bring subject matter expertise to assessment, design, improvement, adoption and control activities

• Customers – Represent the service users

• Stakeholders – Have a significant interest in the results of service execution

• Service Owner – Manages the service under development or improvement

• Executive Champion – Top down leadership that will support overall portfolio project and resource requirements

Customer Stories• “Customer stories” are equivalent to “User stories” as defined by

Agile Software development methodologies (i.e. SCRUM)• Demand Management

– Services that customers need first and want second (not something that IT needs or wants)

– Use data collected to decide which customer(s) to start with• Terminology:

– Customer Who– Action What– Achievement Result

• Service design should address the “How” for these storiesAs a <customer> I want to <action> so that <achievement>.

Assess

Data Collection

• Know what Services you currently provide to which Customers

• Identify Service Owners• Use data collection form to gather

information from customers and IT• You will use information collected to

understand which customers you will target first

Bonus Material

Assess

Prioritize Stories and Services

• Create a “Services Backlog” register that describes the type of work to be done

• Use your defined iteration time to determine how much work can be done within that time

• Assign team member(s) to develop the services and attributes assigned

Assess

Low

High

Priority

Services Backlog

Schedule Regular Feedback

• Set up daily 15 minutes morning feedback meeting to ensure iteration is on target

• Facilitated by Agile Lead• Typical attendees:

Agile Lead, Service Owner(s), Team Member(s), Stakeholder(s)• Customer(s) should be invited

weekly at a minimum to provide collective feedback

Design

Who am I?

Define Services and Attributes

• What to name the service(s)• A description that is meaningful to the

customer• Who are the customers of the service(s)?• Who is the service owner?• What are the associated service level

agreements (SLAs)? If any.• Does the service belong to a service family? • What does the service cost?

Design

Service to Process Mapping

Need to ensure there are ways to deliver and support the Service:• How does the Service get delivered? – Request Fulfillment

• How are issues with the Service handled? – Incident Management– Problem Management

• How can the Service be changed in the future?– Change Management– Service Portfolio and Catalog Management

Design

Service CostingInputs• Capital Expenses

– Applications – Traditional Licensing– On-premise Hardware

• Operating Expenses– Labor and support (Internal and

External)– Cloud (SaaS, IaaS, PaaS)

• Other Expenses– Training– Marketing

Build a repeatable Service Costing Model

Design

Determine Orderable Services

• Tangible items or services customers can order

• Transition these items, attributes and costing into the Service Catalog

• Organized by Service Hierarchy developed within Service Portfolio

Design

Marketing• “If we build it they will come” doesn’t

work in the real world• Build a marketing plan that can be

executed every time a set of major services are released into the Service Catalog

• IT in a sales and marketing role• Things to include:

– Strategy– Value proposition– Delivery mechanisms (i.e. social, emails,

intranet, posters, all-hands, etc.)– Testimonials - remember your customers as

part of the aSM™ team?– Training

Adopt

What movie is this from?

Customer Training

• Training plan• Schedule• Easy Access

– Live classroom– Recorded

• What’s in it for me?– Align to employee

goals– Situational usage

• On-going maintenance

Adopt

Publish the Catalog Services

• User-friendly– Easy navigation– Familiar consumer experience

• Transparency to customer• Soft launch first

– Gather testimonials– Work out any kinks – Ensure end-to-end request

fulfillment process is operational and effective

• Go Live!

Improve

Re-Prioritize Stories and Services

• Time for the next iteration• Services Backlog needs to

be reprioritized– Customer priorities change– People change roles – Resourcing availability and

skillsets change– Leadership direction changes– New regulation requirements

Control

Low

High

Priority

Services Backlog

On-going Management

• Service Backlog register• Integration with Change Management• Periodic reviews of the process• Measures for success:– # of new services– # of customer stories fulfilled– New service request fulfillment success rate (%)

Control

Bonus Material

Summary

• Service Portfolio first!• Agile approach to Service Portfolio and

Catalog enables an organization to– Engage with the customer – Keep up with changing requirements– Deliver results faster

• Don’t bite off more than you can chew!

Learn More…• Questions and Answers• Contact me directly for more

information on Agile Service ManagementPaul SolisPhone: 619-274-0459Email: paul.solis@caskllc.com @caskllc Find me on LinkedIn

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