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Copyright 2006, Integrated Solutions Management
Service Level Agreements Service Level Agreements --
Friend or Foe?Friend or Foe?
www.ismonline.com
Integrated Solutions Management
Presentation ObjectivesPresentation Objectives
Copyright 2007, Integrated Solutions Management
Understand Service Level Agreement (SLA) Concepts
Review SLA Keys to Success
Provide Usable Concepts, Tools and Techniques, and Best Practices
Answer Questions
Integrated Solutions Management
Corporate Background / CustomersCorporate Background / Customers
Copyright 2007, Integrated Solutions Management
Enterprise/IT TransformationIT/Business Alignment and GovernanceProcess Engineering and AutomationOrganization Change Management
Service/Asset ManagementService ManagementAsset ManagementRelationship Management
Solution ManagementProject ManagementProject Management OfficeSolution Lifecycle Services
Integrated Solutions Management
Current Reality Current Reality –– Help Desk PerspectiveHelp Desk Perspective
Copyright 2007, Integrated Solutions Management
If you do not define whowho you support, then you support everyone
If you do not define whatwhat you support, then you support everything
If you do not define whenwhen you support, then you support all the time
Integrated Solutions Management
SLA LevelSLA Level--Set Set –– Initial QuestionsInitial Questions
Copyright 2007, Integrated Solutions Management
Formal SLA’s in force and updated regularly ?
Working on implementing SLA’s now? Using ITIL?
Types of SLA’s – IT Infrastructure (Network, Server, PC’s), Business Applications (Email, ERP, CRM, etc.), or IT Services ?
Chargeback costs against SLA’s ?
Responsibility for Negotiating ? Measuring ? Modifying ?
Difficulties with SLA’s – Commitment ? Creation ? Measurement ? Modification ?
Integrated Solutions Management
Copyright 2007, Integrated Solutions Management
SLA LevelSLA Level--SetSetService Level Agreement:
An agreement that builds the foundation of a business relationship,
sets the expectations between the service provider and the
customer, and describes the products or services to be delivered,
the single point of contact for end-user problems, and the metrics
by which the effectiveness of the processes are monitored and
improved.(Gartner)
Integrated Solutions Management
SLA LevelSLA Level--Set Set ---- Brief History of SLA’sBrief History of SLA’s
Copyright 2007, Integrated Solutions Management
Started in 1970’s to Cut Costs and Improve PerformanceCentralized Mainframe and TerminalsResponse Times and Mainframe “Uptime”
1980”s – Early 1990’s – SLA’s were Out of Favor Distributed Client/Server, Networked EnvironmentsDifficult to Measure because of Complex Environment and
Immature Processes and Tools
Late 1990’s – Early 2000’s – SLA’s Making a ComebackIT focused on Resource-Specific (Network, Server) Availability
Goals – Quantitative MeasuresBusiness Units want End-to-End Availability and Performance of
Applications supporting Business Processes operating in “e-time” – Qualitative Measures and Business Value
Integrated Solutions Management
Copyright 2007, Integrated Solutions Management
SLA LevelSLA Level--Set Set –– Stages of MaturityStages of Maturity
Chaotic Ad HocUndocumentedUnpredictableMultiple Help DesksMinimal IT OperationsUser Call Notification
Reactive Best EffortFight FiresInventoryInitiate Problem Mgmt Process
Alert and Event Mgmt
Monitor Availability(Uptime/Downtime)
Operational Process Engineering
Service and Account Management
Tool Leverage
Proactive Analyze TrendsSet ThresholdsPredict ProblemsAutomateMature Problem , Configuration /Asset, Change and Performance Mgmt Processes
Service Delivery Process Engineering
Service Define Services, Classes, Pricing
Understand CostsSet Quality GoalsDevelop SLA’sMonitor and Report on Services
Capacity Planning
Business Management
Value IT and Business Metric Linkage
IT/Business Collaboration improves Business Process
Real-Time InfrastructureBusiness Planning
Value Management
Gartner
Level 1
Level 2
Level 3
Level 4
Level 5IT Management Process Maturity Model
Integrated Solutions Management
Defining IT Services Defining IT Services –– Standard ServicesStandard Services
Copyright 2007, Integrated Solutions Management
Personal Service RequestsUsually involve System Access or Install, Move, Add, Change or Remove (IMAC) activities for Hardware and Software componentsGoverned by Standards and Approval PoliciesDefined Workflow, Customer Responsibilities, IT Responsibilities, Service Level Targets, CostsShould set Target of 80% of Requests ordered using Standard Services - Presented to Customers via IT Service Catalog (Intranet)
ITStandardService
Customer View IT View
• Availability• Responsibilities• Pre-requisites• Service Level Goals
• Workgroups• Responsibilities• Staffing/Skills• Tasks - Tools• Service Level Goals
Integrated Solutions Management
Defining IT Services Defining IT Services –– Enterprise ServicesEnterprise Services
Copyright 2007, Integrated Solutions Management
Integrated Services provided to whole Enterprise or to Business Units or Departments
Comprised of end-to-end availability of Business Applications, Hardware/Network infrastructure components, Service/Support Model, Backup/Recovery, Performance Management, etc. to Desktop
Defined Services to support IT/Business Alignment and measure Business Value of IT Organization
IT Service
Definition••••••
IT Service
Definition••••••
IT Service Planning and Management
Process
Infrastructure
Components
Business Applications
Enterprise
Business
Units
Critical Success Factors
KPI’s
Roles and Responsibilities
Solution Development /Deployment Processes
Service/Support Model
ITIL Service Delivery
Processes
Customer
Requirements
Disaster Recovery /
Business Resumption
Vendors Information
Security Requirements
Backup and
Restore IT Staff/Skills
Regulatory Compliance
Business
Continuity
Plan
Technology
StandardsGoals and
Objectives
Enterprise Strategic Plan
IT Strategic/Tactical
Plan
Informatio
n
Management
Strategy
IT Systems
Strategy
Asset Management/Total Cost of Ownership
Communications
Measurements and
Metrics
IT Service
Definition••••••
IT Service
Definition••••••
Service Level Agreements Planning &
Budgeting
Customer Relationship Management
Management Dashboards and Reports
IT Business Value
ManagementEnterprise ,
Application, Technology
Architectures
Service Catalog
IT/Business Alignment
Inputs:
Benefits:
IT Service
Definition••••••
Integrated Solutions Management
SLA LevelSLA Level--Set Set –– SLA ComponentsSLA Components
Copyright 2007, Integrated Solutions Management
SLA Purpose and ScopeCustomers, Locations,
Service Coverage
Roles/Responsibilities Customer and Service
Provider
Definition of Terms
Business/Technical Requirements
Application, Availability, Performance, Reliability
Costs, Fees, Penalties
Service Objectives, Constraints, Exclusions
Supported Products, Services Provided
Relationship Management Primary and Mgmt ContactsIssue Escalation/Resolution
Measurements & Mgmt Reporting
SLA Change Mgmt Process
Approvals
Integrated Solutions Management
SLA LevelSLA Level--Set Set ---- Benefits of SLA’sBenefits of SLA’s
Copyright 2007, Integrated Solutions Management
Define and Manage Customer Expectations
Open Communications and Clarify Responsibilities
Baseline Services, Service Levels, and Costs (Service Provider Model)
Align IT and Customer toward Common Business Goals
Justify Service/Support Infrastructure Investment
Build Foundation for End-to-End Services Supply Chain –Customers – IT Organization – Third-Party Vendors
Operate IT as Effective and Efficient Business, Focusing on Consistency and Performance, while Delivering Measurable Business Value
Integrated Solutions Management
“SLA Don’ts”“SLA Don’ts”
Copyright 2007, Integrated Solutions Management
Use SLA’s as Shields, Weapons, or to Squelch ComplaintsSLA must be based on the right MotivesSLA can not foster an “Us against Them” Mentality SLA must foster Relationships that define “What’s Important” in
Business Terms
Use SLA’s as Catch-AllsEnsure SLA’s are not trying to Measure Everything or Measure to
Parameters not in AgreementEnsure SLA’s do not make Process Difficult and Confusing, Causing
Conflicts
Watch the Language Ensure SL’s are not Open-Ended, nor Defined in Technical TermsEnsure SLA does not affect organization each time it tries to Measure
and Report
Integrated Solutions Management
“SLA Do’s” “SLA Do’s” ---- StrategyStrategy
Copyright 2007, Integrated Solutions Management
Understand Customer’s Business Priorities and Service Requirements
Define Standard Services for Personal Information Technology Rqmts
Define Enterprise Services for Enterprise Information Technology Requirements, focused on IT’s Value to the Business
Involve Customers and Key IT Functions in SLA Definition
Link Service Levels to Enterprise Cost Structure, both for Goals and Failures
Develop and Measure SLA’s in Business Terms linked to Desired Business Outcomes
Include Service/Support Organization as Critical Component of IT Technical Infrastructure – Establish and Protect Funding year-to-year to Maintain Service Levels at Agreed-upon Levels
Once Successful, Communicate, Publish and Market IT’s BusinessValue, both Internally and Externally
Integrated Solutions Management
“SLA Do’s” “SLA Do’s” –– Structure and SystemsStructure and Systems
Copyright 2007, Integrated Solutions Management
Develop SLA Leadership, Management Commitment, Governance, Ownership, and Accountability
Instill Common Service Level Beliefs and Values across Organization
Formalize Service Level Planning and Management Process acrossEnterprise -- Automate with Monitoring Tools and Repositories
Develop Service Cost Model for Defined Standard Services – Basis for offering different Levels of Service
Develop Standard SLA Template (80% - 90%), Customize for each Customer and/or Service (If required)
Formalize Key Operational Processes that Support Service Delivery and Customer Support (Incident/Problem, Service Request, Change,Asset/Configuration, Capacity/Performance, Relationship Management)
Integrated Solutions Management
Moving Forward with SLA’sMoving Forward with SLA’s
Copyright 2007, Integrated Solutions Management
Assess Current Situation with SLA’s . . . Friend or Foe ?
Obtain/Confirm Commitment to SLA’s based upon WIN-WIN Model
Define/Validate Customer’s Business Requirements
Develop/Refine Service Management Strategy, Standard Service Offerings, and Enterprise Services
Develop/Refine Automated Service Level Planning and Management Process and Measurement Repositories
Develop/Refine Service Management Process Infrastructure
Develop/Refine Standard SLA Template and Conduct “Pilot” with “Understanding” Customer
Monitor, Measure, and Continuously Improve Service Management Process Infrastructure
Integrated Solutions Management
Copyright 2007, Integrated Solutions Management
Thank YouThank You
QuestionsQuestionsAndAnd
AnswersAnswers
Integrated Solutions Management, Inc.
www.ismonline.com