Service Management Strategy / ChangeGroup
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The document outlines a service management strategy that emphasizes aligning business services with overall business strategy for enhanced efficiency and value. It discusses the current state of service management across business units, key obstacles to effective implementation, and proposed models for structuring service management to support organizational goals. Additionally, it highlights outcomes such as improved automation, user satisfaction, and cross-business unit alignment as essential benefits of a well-defined strategy.
Service Management Strategy / ChangeGroup
- 1. ChangeGroup Flæsketorvet 68 DK-1711 København V Telefon: +45 3332 7778 info@changegroup.dk www.changegroup.dk SERVICE MANAGEMENT STRATEGY
- 2. ChangeGroup Flæsketorvet 68 DK-1711 København V Telefon: +45 3332 7778 info@changegroup.dk www.changegroup.dk SERVICE MANAGEMENT STRATEGY ROADMAP Karsten Grinderslev Owner STEPS AHEAD
- 3. ChangeGroup Flæsketorvet 68 DK-1711 København V Telefon: +45 3332 7778 info@changegroup.dk www.changegroup.dk AGENDA • Why Service Management? • What is a Service Management Strategy? – Why have one? • Status today? • Possible strategy output? • Business alignment • Service Management scope (Business Services) • A simple SMS road map • What’s in it for me?
- 4. ChangeGroup Flæsketorvet 68 DK-1711 København V Telefon: +45 3332 7778 info@changegroup.dk www.changegroup.dk CV • IT Service Management, Strategy, Operation, Outsourcing, Tools, Processes, Change and Project Management • Management since 1998: • CTO, Compaq outsourcing (2000-2002) • CTO, Ministry of Science… (2003-2005) • Service Director, Danisco (2005-2012) • Owner, Steps Ahead since 2013: • Service Management (tools, processes, maturiy and xBU distribution) • Project/program management • Outsourcing • ChangeGroup consultant
- 5. ChangeGroup Flæsketorvet 68 DK-1711 København V Telefon: +45 3332 7778 info@changegroup.dk www.changegroup.dk WHY DON’T WE…? • Cross business units measure all out services? • Communicate with out users/customers in the most efficient way? • Share knowledge in a structured and more efficient way? • Focus on driving down ’ticket’ volume? • Systematically analyze and uptimize processes? • Work to change cost units into value add units? • See all business units as service providers? • and act accordingly?
- 6. ChangeGroup Flæsketorvet 68 DK-1711 København V Telefon: +45 3332 7778 info@changegroup.dk www.changegroup.dk WHY SERVICE MANAGEMENT? Service Management Evolution at snail pace
- 7. ChangeGroup Flæsketorvet 68 DK-1711 København V Telefon: +45 3332 7778 info@changegroup.dk www.changegroup.dk WHAT IS A SM STRATEGY? • Service Management is managing the services delivered by one or more business units – or company – to it’s users/customers. • The Service Management Strategy (SMS) describes goals and how to meet the defined goals for the services in scope. • The SMS is an underlying strategy to the company strategy and /or business unit strategy.
- 8. ChangeGroup Flæsketorvet 68 DK-1711 København V Telefon: +45 3332 7778 info@changegroup.dk www.changegroup.dk WHY HAVE A STRATEGY? • Becuase: • A strategy align deliverables to the business strategy • The strategy define goals and provide a path to goals • A strategy tells you what to do – and that not to do! • Measureable goals allows you to deliver KPI status and adjust • A visible ”all inclusive” strategy – driven by top management – matures the organisation • Benchmark with comparable organisations becomes possible The goal of the SM strategy is to support the business strategy in the most efficient way and thus be a value add rather than a cost centre
- 9. ChangeGroup Flæsketorvet 68 DK-1711 København V Telefon: +45 3332 7778 info@changegroup.dk www.changegroup.dk TWO MODELS • Two models exist: 1. A cross BU Service management strategy 2. A BU Service management strategy Business Business Unit Service management Department: A - B - C
- 10. ChangeGroup Flæsketorvet 68 DK-1711 København V Telefon: +45 3332 7778 info@changegroup.dk www.changegroup.dk MODEL I The purpose of the Service Management strategy is to support the business objectives at a required well defined service level in a cost-efficient manner. How to organize (example) • All BU services are shown in the general Service catalogue • SLA is approved by management board and included in each service in service catalogue • All Service requests are managed via the shared SM platform (Service catalogue) • Each BU has a support organisation supporting the services in scope (or shared service org.) • The BU support organisation use the shared SM tool, processes and guidelines • The BU deliver the level of service described in the SLA • Shared reporting and dashboard services
- 11. ChangeGroup Flæsketorvet 68 DK-1711 København V Telefon: +45 3332 7778 info@changegroup.dk www.changegroup.dk WHY DIFFICULT TO IMPLEMENT? • Does it make sense? • Why has no one done it? • What are the main obstacles? • No focus from CEO and board? • No business case? • Reluctance to change? • “We don’t want to be measured!” • “You cannot compare HR/Finance services to IT service!” But isn’t Service management just: The users or customers needs services The service provider deliver the services as agreed Satisfactory services = efficient users/customers
- 12. ChangeGroup Flæsketorvet 68 DK-1711 København V Telefon: +45 3332 7778 info@changegroup.dk www.changegroup.dk MODEL II Each business unit may/may not have a SMS. The strategy may not exist and/ or differ from other BU strategies Today’s services (examples) • HR: Local HR is available via phone Monday-Friday 9-16. No SLA • Finance: Finance requests are forwarded to a shared mailbox. No SLA • Facility services: Local FS is available via phone Monday-Friday 9-12. • Marketing: Find someone in Marketing who can help you! • IT: 24x7 Servicedesk, SLA on all tickets, application availability, infrastructure, end user computing etc.
- 13. ChangeGroup Flæsketorvet 68 DK-1711 København V Telefon: +45 3332 7778 info@changegroup.dk www.changegroup.dk STATUS TODAY? • Less than 10% have a Service Management strategy! • Most mature BU’s: IT, Finance, HR, Facility Services • Some have fragments of a strategy (IT best in class) • SLA compliance, End-user satisfaction, 1st call resolution rate • Development at slow pace last 10 years (IT) • Growing # of shared services (HR, Finance, IT) • Improved tools – more user friendly • ITIL processes matured • More business process focus • Horizontal scope developed • Waiting for the business to tell us what they want! • Many companies without an IT Strategy, SLA, etc.
- 14. ChangeGroup Flæsketorvet 68 DK-1711 København V Telefon: +45 3332 7778 info@changegroup.dk www.changegroup.dk HOW IS THE MARKET EVOLVING? • Cost of services are in focus – value for money • Outsourcing always an option • Deliver service in the most efficient way • Demand for automation • Increasing self service • Better and more efficient support channels • Alignment cross BU’s • New support channels (FB, Twitter) • Services / applications / products = simplified and aligned • Services moves to the cloud • IBM estimate 50% in 2017 • IT budget moves to the business • IBM estimate 80% owned by the business in 2020
- 15. ChangeGroup Flæsketorvet 68 DK-1711 København V Telefon: +45 3332 7778 info@changegroup.dk www.changegroup.dk POSSIBLE OUTCOME?
- 16. ChangeGroup Flæsketorvet 68 DK-1711 København V Telefon: +45 3332 7778 info@changegroup.dk www.changegroup.dk POSSIBLE OUTCOME? • More automated processes will provide: • Lower cost / request • Faster resolutions (more efficient users, more satisfied users, incident reduction, reduced delivery cost) • Push knowledge to the users will provide: • More self service will allow users to find information faster (24x7) • eLearning will mature users, increase efficiency and reduce IT cost • Share services cross Business units will: • Unify/align service processes (reduce cost/maintance, share reporting) • Reduce operational cost (all use same platform/application) • Provide common service catalogue (simplify user access) • Maturity will secure focus on the strategy, CSI and Business • Increased focus on business understanding and requirements • Knowing what not to do
- 17. ChangeGroup Flæsketorvet 68 DK-1711 København V Telefon: +45 3332 7778 info@changegroup.dk www.changegroup.dk IT STRATEGY ! ITSM STRATEGY Business Strategy HR Finance Marketing Procurement Legal Etc IT Strategy Operation Application Service Management Servicedesk Operation Application
- 18. ChangeGroup Flæsketorvet 68 DK-1711 København V Telefon: +45 3332 7778 info@changegroup.dk www.changegroup.dk THE IT STRATEGY Horizontal ITSM strategy Operation Application Digital platforms Servicedesk Onsite support Vendor mgmt Finance Vision & Mission Governance Architecture Operation & Infrastructure ITSM Project Vendor & Partnership Sourcing IT Strategy ITSM Strategy is one of many components in the IT Strategy Focus
- 19. ChangeGroup Flæsketorvet 68 DK-1711 København V Telefon: +45 3332 7778 info@changegroup.dk www.changegroup.dk BUSINESS ALIGNMENT Competitive advantage • High quality products • Efficient low cost delivery Process innovation • Optimizing business processes • Maximize automation Operational excellence • Live cockpit information • Zero incidents • Best in class New Markets & Channels • Grow AP by 25% • Include Africa ($1B) Competitive advantage • Upgrade SAP v 12.5 • Provide onsite support at critical plants Process innovation • Commit to build BPO office • Map process landscape and optimize Operational excellence • BI/Cockpit solution • Develop business incidents cockpit • Establish IT Academy New Markets & Channels • Secure IT scalability • Establish AP/Africa support org. Business Strategy IT Strategy SM Strategy Competitive advantage • Deliver 24x5 SAP support Q2-15 • 24x5 onsite support in India, China, SA – Q4-15 Process innovation • Create IT process team • Support SM process usage cross business units Operational excellence • IT Academy training in min. 50% business application in 2015 • >90% in 2016 New Markets & Channels • Secure IT scalability Q3 2015 • Setup onsite org. in AP Q3 2015 What will the IT strategy do to support the business strategy? What will the SM strategy do to support the IT and the business strategy?
- 20. ChangeGroup Flæsketorvet 68 DK-1711 København V Telefon: +45 3332 7778 info@changegroup.dk www.changegroup.dk THE STRATEGY BREAK DOWN - I Business Strategy Increase employee efficiency IT Strategy • Provide Academy platform • Reduce # IT support tickets • Automate support process • Better support channels SM Strategy • Build Academy platform. With HR create eLearning sessions on most important business applications (Q4 2015) • Create Problem Management team – reduce # tickets by >5% (end Q4 2015) • Build Service catalogue and automate request/Incident handling where possible. More than 5% automated (end Q3 2015) • Deliver 24x5 chat support (Q2 2015). More than 20% user tickets via chat (end Q4 2015) IT Operation • Build eLearning platform according to specs. before end Q1 2015 • KPI: Availability >99,5%, Incidents <5/month, daily backup with 95% success (from Q4 2015) IT Application Services • With HR configure eLearning application (ready end Q2 2015) • Develop support process (end Q3 2015) • Create eLearning modules (with identified business teams) – ready 1. Dec 2015 IT Servicedesk • PM: Create PM team, define goals and make plan. Execute plan – measure, report • SC: Appoint responsible. Analyze processes, make automation/marketing plan, execute, measure, etc • Chat: Appoint responsible. Define scope, make implementation and marketing plan, execute, measure, etc
- 21. ChangeGroup Flæsketorvet 68 DK-1711 København V Telefon: +45 3332 7778 info@changegroup.dk www.changegroup.dk THE STRATEGY BREAK DOWN - II Servicedesk manager Responsibility: Overall responsible Tasks: Appoint responsible within SD, define scope, approve project plan, follow up on progress, make necessary org. changes, report progress to strategy board Appraisal: Part of appraisal and bonus programme IT Servicedesk • PM: Create PM team, define goals and make plan. Execute plan – measure, report • SC: Appoint responsible. Analyze processes, make automation/marketing plan, execute, measure, etc • Chat: Appoint responsible. Define scope, make implementation and marketing plan, execute, measure, etc Project responsible Responsibility: Deliver chat functionality (using existing Lync application) to all users and secure it’s being used as planned Tasks: 1. Create PID, project plan, RACI, training plan etc. 2. With Marketing create marketing/communication plan 3. Execute plan and report as agreed with SD manager Appraisal: Part of appraisal and bonus programme SD employee Responsibility: Use chat as describes in role description. Support increasing use of chat Tasks: 1. Login to “Chat support” when on duty 2. When communicating with user first try chat 3. Encourage users to use chat Appraisal: More than 15% tickets closed using chat
- 22. ChangeGroup Flæsketorvet 68 DK-1711 København V Telefon: +45 3332 7778 info@changegroup.dk www.changegroup.dk SUMMARYBusiness => IT Strategy mapping • Goal 1 • Goal 2 • Etc….. ITSM Strategy • Goal 1 • Goal 2 • Etc….. Projects • Project 1 • Project 2 • Etc….. Business <> IT SLA • Agreed services • Agreed Service levels Behavioural changes • Departments • Teams • Individuals
- 23. ChangeGroup Flæsketorvet 68 DK-1711 København V Telefon: +45 3332 7778 info@changegroup.dk www.changegroup.dk SM STRATEGY EXAMPLES End user satisfaction >95% From Q2 2015 1st call resolution rate >70% Q4 2015 Gold appl. availability > 99,95% Problem management reduce tickets >5% per year Problem management reduce tickets >5% per year Silver appl. availability > 98,50% From Q1 2015 Onsite support solves < 15% of all tickets Q3 2015 Successful Changes > 90% Language support (DK, UK, DE, FR, ES) available Q4-2015 Chat via Service catalogue available Q2 2015 Academy training platform available Q3 2015 Project HR ITSM platform - available Q4 2015 Project Finance ITSM platform - available Q4 2015 Weekly SLA reports to business stake holders Q3 2015 >80% support via Service catalogue Q2 2016 Master Business SLA signed Q3 2015 End user satisfaction survey process implemented Q2 2015 8x5 direct SAP 2nd level support channel implemented Q2 2015 Servicedesk chat support (Lync) implemented Q4 2015 1st call resolution rate >60% Q2 2015
- 24. ChangeGroup Flæsketorvet 68 DK-1711 København V Telefon: +45 3332 7778 info@changegroup.dk www.changegroup.dk THE SM ROADMAP Describe & scope the Strategy Describe Services Finance and resource overview Create business case Prioritize and Approve Plan & Execute Measure Adjust Change (CSI)
- 25. ChangeGroup Flæsketorvet 68 DK-1711 København V Telefon: +45 3332 7778 info@changegroup.dk www.changegroup.dk • Appoint SMS owner • Define organisation • Setup SMS board (IT/Business) • SMS board workshop (1/2 - 1 day) • Map services to IT strategy goals • Discuss SM goals (pro/con) • Business value (where/whom?) • Output: SM strategy draft (v/1) DESCRIBE & SCOPE Describe & scope the Strategy Describe Services Finance and resource overview Create business case Prioritize and Approve Plan & Execute Measure Adjust Change (CSI)
- 26. ChangeGroup Flæsketorvet 68 DK-1711 København V Telefon: +45 3332 7778 info@changegroup.dk www.changegroup.dk • Detailed description per service incl.: • Resources needed (=> capability mapping) • User/customer involvement • Describe the service (purpose and expected outcome) • Workshop with team: • Define the service process • Define service delivery team(s) • Tool requirements/adjustments • Test scenarios + plan • Measurable goal(s) • Reporting requirements • Complete ”Service template” DESCRIBE THE SERVICES Describe & scope the Strategy Describe Services Finance and resource overview Create business case Prioritize and Approve Plan & Execute Measure Adjust Change (CSI)
- 27. ChangeGroup Flæsketorvet 68 DK-1711 København V Telefon: +45 3332 7778 info@changegroup.dk www.changegroup.dk • Investment needed (SMS owner): • Internal resources • IT capabilities • Business capabilities • External resources • Tools • Marketing • Maintenace • Other? • Ressource investment overview FINANCE AND RESOURCES Investment 2015 Cost Per year (+2016) IT internal IT external Business 100 hrs 30 hrs N/A 50.000 dkk 30.000 dkk 5.000 dkk Tool 0 dkk Maintenance 0 dkk Marketing (internal) 30 hrs 15.000 dkk TOTAL 95.000 dkk 5.000 dkk Describe & scope the Strategy Describe Services Finance and resource overview Create business case Prioritize and Approve Plan & Execute Measure Adjust Change (CSI)
- 28. ChangeGroup Flæsketorvet 68 DK-1711 København V Telefon: +45 3332 7778 info@changegroup.dk www.changegroup.dk 1. Workshop: Service value (IT<>Business) 2. Investment required (previous task) 3. Outcome • Cost change in IT/Business • Value add: • Users, IT (efficiency) • Customers 4. Complete business case incl.: 1. Hard value (netto cost +/-) 2. Soft value (business value) 3. Pay back time and assumptions & prerequisite 4. Recommendation CREATE BUSINESS CASE Describe & scope the Strategy Describe Services Finance and resource overview Create business case Prioritize and Approve Plan & Execute Measure Adjust Change (CSI)
- 29. ChangeGroup Flæsketorvet 68 DK-1711 København V Telefon: +45 3332 7778 info@changegroup.dk www.changegroup.dk EXAMPLE Service “Automate Hire process” Volume Cost Saving How to measure cost savings Investment + 3 yrs service 110.000 dkk Servicedesk efficiency: Service use/year = 500 Saving/service = 200 dkk 300.000 dkk Save 0,25 FTE in Servicedesk Customer value: Service use/year = 500 Saving/service = 100 dkk 150.000 dkk ?? Pay back time < 10 mth Net value (3 year period) 340.000 dkk
- 30. ChangeGroup Flæsketorvet 68 DK-1711 København V Telefon: +45 3332 7778 info@changegroup.dk www.changegroup.dk SMS board and business representatives 1. Prioritize services 1. Mandatory services 2. Other services (business value – effort – cost) 2. Map services to budget 3. If needed – adjust services in scope to meet budget – or adjust budget 4. Obtain CIO approval (optional CFO) PRIORITIZE AND APPROVE Describe & scope the Strategy Describe Services Finance and resource overview Create business case Prioritize and Approve Plan & Execute Measure Adjust Change (CSI)
- 31. ChangeGroup Flæsketorvet 68 DK-1711 København V Telefon: +45 3332 7778 info@changegroup.dk www.changegroup.dk EXAMPLE Service Type Cost 2015 Cost 2016 Business value per year Pri Infrastructure Mandatory - running 1M dkk 1M dkk High 1 Service catalogue New service (all) 0,25M dkk 0,1M dkk 250.000 dkk 2 Service “Hire process” New service (HR) 110.000 dkk 0 110.000 dkk 2 Service “SD availability” Extended service (IT) 100.000 dkk 100.000 dkk ? 4 Service “BYOD support” Mobile support 100.000 dkk 100.000 dkk Medium 3 Service XX ….
- 32. ChangeGroup Flæsketorvet 68 DK-1711 København V Telefon: +45 3332 7778 info@changegroup.dk www.changegroup.dk 1. Appoint PM 2. Define implementation team (RACI) 3. Allocate resources 4. Create project plan (all services in scope) 5. Describe tasks 6. Identify stakeholders 7. Create communication plan 8. Obtain approval ----------------------------------- Execute project plan PLAN & EXECUTE Describe & scope the Strategy Describe Services Finance and resource overview Create business case Prioritize and Approve Plan & Execute Measure Adjust Change (CSI)
- 33. ChangeGroup Flæsketorvet 68 DK-1711 København V Telefon: +45 3332 7778 info@changegroup.dk www.changegroup.dk 1. As defined in project plan: • Measure results • If deviations, prepare recommendations • Resport to SMS borad 2. Adjust if needed and approved by the the board 3. Adjust SMS scope accordingly 4. Communicate to stakeholders if scope change 5. Update Service catalog MEASURE / ADJUST / CHANGE Describe & scope the Strategy Describe Services Finance and resource overview Create business case Prioritize and Approve Plan & Execute Measure Adjust Change (CSI)
- 34. ChangeGroup Flæsketorvet 68 DK-1711 København V Telefon: +45 3332 7778 info@changegroup.dk www.changegroup.dk WHAT’S IN IT FOR ME? Role Possible outcome Business (CEO, board) • IT service delivery aligned to business needs • Possibility to Influence service scope and level • Cost transparency • More efficient organisation End users • Increased efficiency • Better and faster support • Service level visibility Customers • More likely that Service will meet customer expectations CIO • Business & IT strategy transparency • Knowing what NOT to do • Align IT services to business needs and obtain business approval • Easier to benchmark Servicedesk manager • Clear goal definitions • Knowing what NOT to do • Easier to map Servicedesk goals to individual goals (FTE) • Easier to define service catalogue CTO • Better Knowledge sharing • More efficient operational processes (ITIL) • Move more tickets to ServiceDesk IT Consultant • Identify new “customers” • Reuse IT experience in other BU’s • Increase experience with other BU’s
- 35. ChangeGroup Flæsketorvet 68 DK-1711 København V Telefon: +45 3332 7778 info@changegroup.dk www.changegroup.dk Q & A