Service Portfolio - Preparing for the Future of your Organization

Service Portfolio
Preparing for the Future of
your Organization

Introduction
Michael Cardinal
ITIL Expert
CPDE
20 years ITSM experience
20 years college instructor
Woodturner

What we want to learn today…
 Develop a clear understanding of the Service Portfolio and its value to the business
and IT
 Understand the link between correctly defined services and a successful Service
Portfolio
 Understand the Implementation cycle for the Service Portfolio
 Comprehend the Service Portfolio Management process and the Service Portfolio
Lifecycle

Service Portfolio
If only the White Star Line had used Portfolio Management with the
Titanic…

Service Portfolio (1)
A Service Portfolio is the complete set of services managed by a service
provider
 Describes services in terms of business value
 Articulates business needs and the provider’s response
 Provides a way to compare service competitiveness
 Clarifies strategic questions
 Why do we exist?
 What do we do?
 Why should customers buy these services?
 Why should they buy services from us?
 What are our strengths, weaknesses, opportunities and threats?
 How should resources and capabilities be allocated?
Service Portfolio Management articulates how the perspective, position, plan and
patterns will be translated into actual services.

Service Portfolio (2)
 Represents all of a service provider’s commitments and investment across all
customers and market spaces
 Present contractual commitments
 New service development
 Ongoing service improvement plans (SIPs)
 Third-party services
 Represents all resources presently engaged or being release across the service
lifecycle
 Includes service in a conceptual stage
 Facilitates understanding of the opportunity costs of the existing portfolio and better
fiscal discipline
The purpose of service portfolio management is to ensure that the service provider
has the right mix of services to balance the investment in IT with the ability to meet
business outcomes.

The Portfolio Approach
 SPM ensures that before making tactical plans for how to manage services, the
service provider understands
 All services it provides
 The investments in those services
 The strategy and objectives of each service
 This approach
 Prevents missteps such as
 Performing organizational design before determining services
 Performing a tool selection before optimizing processes
 Ensures continuity between the high-level intent and the detailed execution
Portfolios instill the financial discipline needed to ensure investments yield value

Service Portfolio Structure

Services (1)
Service
Core
Service
Enabling
Service
Enabling
Service
Enhancing
Service
 Core – basic outcomes
 Enabling – needed to deliver a core
service
 Enhancing – make a core service more
exciting
A service is a means of delivering value to customers by facilitating
outcomes customers want to achieve without the ownership of specific costs
and risks.

Defining Services
1 Define the market and identify customers
2 Understand the customer and their needs
3 Quantify the outcomes
4 Classify and visualize the service
5 Understand the opportunities (market spaces)
6 Define services based on outcomes
7 Define Service Models
8 Define service units and packages

Implementation
If you build it, will it float?

Implementation Approach
Copyright © AXELOS Limited 2011 Reproduced under license from AXELOS Limited. All rights reserved.

Service Portfolio Mechanism-Example

Service Portfolio Management
What is your destination?

SPM Process (High Level)

Key Roles
SPM Process Manager
 Carries out the generic Process Manager role
 Manages and maintains the Service Portfolio
 Keeps the portfolio up to date and attractive to customers
 Markets the portfolio and Service Catalog so that customers and potential customers
are aware of available services
 Helps formulate service packages and options
The SPM Process Owner carries out the generic Process Owner role and works with
the other process owners to ensure an integrated approach to the design and
implementation of the PSM process.

Portfolio Lifecycle
Manning the Watch…

Service Portfolio and the Lifecycle
The Service
Portfolio serves as
the conduit for
services throughout
their lifecycle

SPM and market spaces
Service Portfolio

Portfolio Design Considerations (1)
 Each version of a service should be assigned a number or other unique identifier to
assist in clearly monitoring the progress of that version of the service throughout its
lifecycle.
 It is preferable that each particular version of a service should only exist in one section
of the portfolio at a time, be it service pipeline, service catalogue or retired services.
 Newer versions of a service may be in the pipeline while the current version is in the
catalog, or in the catalog while an older version is in the retired services.
 If an organization identifies any circumstances in which two different service versions
might appropriately exist in the same section of the portfolio simultaneously, the
organization should carefully define the rules governing such circumstances
 Organizations should define clear and unambiguous policies regarding what
conditions are required for each defined service status to be achieved.
 From the ‘requirements’ status to the ‘chartered’ status, a service should appear in the
service pipeline.

Portfolio Design Considerations (2)
 Once a service achieves the ‘operational’ status in the live environment, it should
appear in the service catalog
 Between ‘chartered’ and ‘operational’ each organization should make clear and
unambiguous policies regarding when a service will move from pipeline to catalogue,
based on the organization’s desired goals, objectives and uses for the pipeline and
catalog
 Between ‘operational’ and ‘retired’, each organization should have clear and
unambiguous policies regarding when a service will move from catalogue to retired
services, based on the organization’s desired goals, objectives and uses for the
catalogue and retired services
 There should be clear designation of responsibility and accountability for all aspects of
a service as it progresses through its lifecycle. It should be clearly defined which
person or role has accountability for each version.

Moral of the Story
 Do not make promises…anticipate and prepare for the future by analyzing the
present and the past
 Use the data, information and knowledge available, or go find it
 Once developed the Service Portfolio should be the core of your SKMS
 A Service Portfolio is planned, design, built, operated and improved using the
Service Management lifecycle
 Services in the portfolio are defined, analyzed, approved and chartered using the
Service Portfolio Management process
 A Service Portfolio is a dynamic and living document used to manage the path into
the future

Michael Cardinal
Practice Manager
mcardina@TEKsystems.com
Thank you

Service Portfolio - Preparing for the Future of your Organization

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