The service management lifecycle includes four key stages: service strategy, service design, service transition, and service operation. Service strategy involves designing and implementing service management as an organizational capability and strategic asset. Service design ensures IT services fulfill business objectives and customer needs. Service transition focuses on risk, knowledge, change, and configuration management to smoothly transition from strategy, design, and development to operations. Service operation strives to manage operational priorities like availability. Continual service improvement (CSI) should be integrated into each stage to embed feedback and improvement across the lifecycle. CSI uses a 7-step process to identify strategy, define metrics, gather and analyze data, and implement improvements to optimize capabilities, drive efficiency and value, and demonstrate benefits