SESSION 501 Tuesday, November 3, 11:15am - 12:15pm

Track: The Beginner's View

Simple and Practical Advice for ITSM Transformations

Derek Lonsdale Managing Consultant, PA Consulting derek.lonsdale@paconsulting.com

Session Description

If you want a road map for your ITSM journey and a detailed, empirical approach for delivering a successful ITSM transformation, you” ll want to attend this session. Attendees will discover an approach that has evolved through more than thirty ITSM transformation projects across the healthcare, pharmaceutical, energy, and finance verticals, and they’ll receive practical hints and tips on process governance, process design with input from ITIL, Lean, and Six Sigma, technology and data design, and solution implementation. (Experience Level: Fundamental)

Speaker Background Derek Lonsdale is a former service desk manager who leads PA Consulting’s ITSM business in the US. He is an ITIL v3 Expert, an ISO 20000 consultant, and a Lean expert accredited by the Lean Enterprise Research Centre at Cardiff Business School. With a passion for developing people and organizations, Derek has contributed to the design and deployment of service management solutions for more than thirty clients in the US and Europe and the US.

Simple and practical advice for ITSM transformations

Derek Lonsdale

Moving to a new technology set to automate IT services requires some of the following challenges to be overcome:

As businesses become more reliant on IT, IT must have a robust, value add solution

Resist the urge to buy first , then figure out how to use it. Use your processes and data model to develop functional and non functional specifications for tool selection and subsequent tool configuration by integrators.

The urge to pick a product first.

Use the people identified in governance to design formal processes by adopting and adapting the ITIL * process framework as necessary. Create and enforce policy to guide process design and adoption.

p Buying into formalized processes

Processes need an appropriate governance framework with process owners, process managers and process improvement team members identified and appointed early in the transformation initiative.

Instituting accountability

There is often a poor understanding of the end-to-end process or service, creating a silo’d, dysfunctional approach. Ensure training covers the e2e approach including new Key Performance Indicators. Communicate often!

Driving change and making it stick!

q Proper process design documents will describe key IT business data definitions. Use this to help identify the sources of truth for all your data and build a strong data model as part of your conceptual solution architecture.

i Clearly define the data

Don’t forget to optimize the process flow by using elements of Lean and Six Sigma to identify value and remove waste. Exploit common process; streamline and integrate by automation.

Optimizing and streamlining

p

i

*ITIL® is a registered trade mark of AXELOS Limited

Should I run this as a project?

• Yes!

• Business case

• Establish project governance

• Develop and agree a charter

• Determine what success looks like; measure it

• Brainstorm a project plan (Use C&E tool)

• Identify key milestones

• Formally manage risks and issues

Presentation title here edit using View/Header and Footer/Slide

Example project roles The roles referred to in each of the process guides are based on the below. These are based on a

large project, but could easily be adapted to a program level.

Projects Projects

Projects Workstreams

Steering Committee Project Sponsor

Project Director

Project Management Office

The SC made up of representatives from across the business and the regional offices and mandated to make key decisions

The Project Sponsor with the suitable seniority and support for the program

The PMO filters the pyramid of information and escalated as needed

The management team split vertically with the Project Director managing upwards and outwards and the PMO assuring the day-to-day operation

Workstreams manage the different aspects of the work, overseen by the PMO

Understanding all the activities and deliverables required for each phase gate provides greater control and better chance of success.

A structured approach with phase gates and deliverables provides effective visibility/control

Activities

Establish Process Accountability

Select and launch process improvement team

Draft Charter\

Draft WBS

Draft Communication Plan

Education

– Executive overview

– Foundations training

Governance Process Design Technology/ Data Design Implementation

Activities

Document / Review Supplier-Input-Process-Output-Customer (SIPOC)

Perform Voice of Customer

Conduct FMEA Workshop

Conduct VSM Workshop

Develop operational definitions

Document Current State (as-is Process)

– Process Flow

– Metrics / Baseline Data

– Artefacts & Tools

Activities

Gather business requirements:

Develop Conceptual Solution Architecture

Develop Logical Solution Architecture ((if applicable)

Develop Physical Solution Architecture

Activities

Update to-be Process as appropriate

Implement solution

Develop SOPs, Training Plan & Process Controls

Update Process Repository

Develop Continuous Process Improvement Plan

Capture Lessons Learned

Deliverables:

Charter

Work break down structure

Communication Plan

ITIL Certification

Deliverables

SIPOC

As-is Process Document

To-be Processes

High Level Implementation Plan

Organizational Change Management Plan

Deliverables

Conceptual Solution Architecture

Physical Solution Architecture

Test Plan including Use Cases

Training Material

Deliverables

Continuous Improvement Plan

Lessons Learned Document

SOPs

Team Feedback Session

Define and agree the new ITAM Services

Pilot the new ITAM service with 2-3 business areas

Design the new ITAM processes

Create a list of software assets

Identify existing license and contract documentation

Create a prioritized list of the software assets

Gather existing data

Select a replacement ITAM tool

Implement and integrate ITAM tool with related services

Delete records of disposed equipment

Scan for hardware assets and reconcile asset records

Standardize and improve the hardware deployment process

Design service transition plan, including education

Improve software license knowledge and understanding

Communicate challenges and successes

Create a committee to guide Asset Management

Agree the revised Asset Management Policy and scope

Agree future asset ownership and accounting model

Planning: Multiple “streams” of activities are required to reach the recommended future state

A centrally provided IT Asset Management service, enabled by an integrated technology solution

Software Technology Process

Hardware Governance People

Define service management governance early including strategic and operational stakeholders

Defining your governance framework with appropriate process owners and a process

improvement team is the first step to building the right level of buy-in across the organization.

Process Governance Board Provide executive level support and guidance for the enterprise IT service management processes; Review, align, prioritize, approve

Process Improvement Teams Recommend process improvements and provide operational level governance for the enterprise IT configuration management process: Identify, mentor, resolve, support

Subject Matter

Experts Process Managers Process Owners

Project Managers Technology

Partners

Using business criteria to influence prioritization and utilizing existing best practice for governance, process and data design, implementation will be faster and more successful

ITSM requires collaboration between people, governance, process and technology

Process

People & Governance

Technology

Determine process priorities based on an ITIL maturity assessment and relevant prioritization criteria derived with business input

Use a collaborative design approach between process, technology, people & governance to cater for all aspects of the implementation

Prepare and train your organization to implement the governance model & confirm steady-state

Data

Process Architecture &

Standards

Review the level to which core Service

Management process components are

evident for each process. Review alignment

and standardization of process

documentation and definitions (including

prioritizations and categorizations).

Systems & Tools

Review the extent to which processes are

support by systems and tools. Evaluate the

consistency in deployment and use of such

tools. Evaluate the extent to which interfaces

have been established (manual to

automated) and whether this provides a

consists view of all data.

People & Competencies

Review the approach taken to process

ownership. Evaluate alignment of roles and

responsibilities within and across the

processes. Look for evidence of

accountabilities and responsibilities linked to

performance measures, both for the process

and individuals.

Governance & Reporting

Review process governance, including

decisions making forums, approvals required

and the extent to which the process can

appropriately address exceptions. Evaluate

the level and consistency of reporting across

the processes and how this is used for

improvement purposes.

Dimensions of

Capability & Maturity

Assessment dimensions Each process being assessed has four components to make sure we focus on all relevant areas and not just the process itself.

High level SIPOC example Starting your process design by developing the SIPOC is a great way to build the foundation of a successful design effort.

Failure Mode Effects Analysis (FMEA) overview

• FMEA is a step-by-step approach for identifying all possible failures in a design, a manufacturing or assembly process, or a product or service.

• Failure modes – these are the ways in which something might fail. Failures are any errors or process gaps, especially ones that affect the customer, and can be potential or actual failures.

• A severity rating is used to determine how serious each effect is

• An occurrence rating estimates the probability of failure occurring

• A detection rating estimates how well the controls can detect either the cause or its failure mode before the customer is affected

• Effects analysis refers to studying the consequences of those failures.

• Failures are prioritized according to how serious their consequences are, how frequently they occur and how easily they can be detected. The purpose of the FMEA is to take actions to eliminate or reduce failures, starting with the highest-priority ones.

Risk Priority Number Example Rating Severity Occurrence Detection

1 No effect Remote: Failure is unlikely

Almost certain detection

2 Minor process gap noticed by some customers

Low: Relatively few failures

High chance of detection

3 Noticeable to customers resulting in potential for lost

business

Moderate: Occasional failures

Moderate chance of detection

4 High probability of customer dissatisfaction and lost business

High: Repeated failures

Very low chance of detection

5 Almost certain loss of customer or customer

confidence/satisfaction

Very high: Failure is almost inevitable

Little to no chance of detection

RPN is severity x occurrence x detection. Maximum score is 5x5x5=125

FMEA – Example walk through Review the steps and associated process gaps. As a group determine the impact of the process gap and arrive at the Risk Priority Number rating

Process Function

(Step)

Potential Failure

Modes

(process gaps)

Potential Failure

Effects

S

E

V

Potential Causes of

Failure

O

C

C

Current

Process

Controls

D

E

T

R

P

N

EXAMPLE

Intake from other

processes

The type of activity that

should be treated as a

change is not clear

Too many changes going

through the CAB dilutes

the risk assessment

conducted on the

Change

4

The type of activity that

becomes a change is not

clearly documented.

Production and non

production changes are

treated the same

3

None 4

48

Creation

Validation

Assessment

Review & Authorization

Implementation & PIR

Change Evaluation

Example benefits

• Speeded up Biotech IT transformation by six months

• Automated access management to provide application access in 30 minutes rather than five days

• Reduced support costs by up to 50%

• Improved incident resolution time by 30%

• Reduced hardware acquisition from 60 days to five days

• Reduced overall operating costs by 15%

• Improved onboarding time across HR and IT from 38 days to 12 days

Baseline your people competencies and empower them with new skills and knowledge

Put additional efforts in preparing your organization by giving adequate training in processes and technology. Baseline your current knowledge to measure improvements and where to direct your attention for continuous improvements activities.

Before implementing new processes and starting training, baseline current knowledge so you can measure progress and improvements. In surveys, measure the knowledge of:

• Process definitions of services provided

• Goals and key benefits of new processes

• Purpose of the processes

• Interfacing service management processes

• Roles & responsibilities involved with planning, deploying

and maintaining processes

• Metrics associated with or measuring the processes

Enhance process capabilities providing better understanding and service quality

Improve knowledge, resulting in less rework

Improve accuracy of assessment of impact on other functions/processes/ applications

Enable quicker resolution of incidents and problems

Training will:

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