SESSION 504 Thursday, November 2, 11:30am - 12:30pm Track: The Specialist
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1 SESSION 504 Thursday, November 2, 11:30am - 12:30pm Track: The Specialist Agile + BRM + ITIL = What You Need To Be Cloud-Ready! Maureen Jesuthasan Senior IT Strategist, Virtustream maureen.jesuthasan@virtustream.com Session Description You can run an entire business from the cloud, but there;s no guarantee it will be successful if you limit your focus to technology requirements. Before you say "IaaS, SaaS, and PaaS," you should focus on the following four letters: ITIL. This session will show IT business leaders and their teams the value of developing a process framework prior to engaging in technical planning. You ll get the definitions, concepts, core elements, and skills to develop an effective strategy to implement a cloud-based, services-centric IT organization via the ITIL service strategy best practices. Speaker Background Maureen Jesuthasan is a senior IT strategist for Virtustream, with more than twenty-three years of IT service operations experience in a variety of roles. She;s a solutions-oriented professional with a dedicated career of analyzing, designing, and facilitating the implementation and operational acceptance of business solutions and their supporting technology platforms. One of three finalists for the Pink Elephant 2012 Practitioner of the Year Award, Maureen is a certified ITIL Expert and also holds certifications in PRINCE2 and Lean IT.
2 ITIL+ BRM + Lean IT + Agile = What You Need to be Cloud Ready Introduction Maureen Jesuthasan, Senior Manager West Monroe Partners, Energy & Utilities mjesuthasan@westmonroepartners.com LinkedIn Certifications ITIL Expert Lean IT Professional Lean Six Sigma Green Belt Business Relationship Professional
3 Overview Purpose The Cloud: What Is It? Let s Get Cloud Ready! Planning For Success Resetting the Vision: Putting It All Together Purpose Provide a recommended strategic approach to potential Customers who are contemplating a Cloud services transition Provide business case as to why a blend of complementary frameworks and methodologies is best when developing a long-term, Cloud strategy ITIL (Service Strategy Lifecycle) Business Relationship (BRM) Lean IT Agile (Delivery & Development)
4 The Cloud Benefits (.if implemented well) Reduction of Operational Issues Utilizing standardized services can significantly reduce issues and defects Agility Shorten IT projects resulting in fewer FTEs to deliver the project and a quicker and more predictive time-to-market Operational Savings Standardize products and releases. Reduces the need for spending operational dollars for fire fighting purposes Resource More efficient projects and fewer operational issues allow your employees to spend their time on other more useful activities Innovation Utilizing or combining always ready services can result in new and innovative business models, generating new value propositions and resulting in new revenue streams The Cloud Financial Benefits (.if a strong partnership between the Business & IT exists) IT costs reduced by an average of 24% over non-cloud environments 40% of that savings total was reinvested back into Business to support new initiatives Customers that follow this model are 3Xs more likely to achieve their individual digital transformation goals* * IDG Global Survey, Sponsored by EMC, of 905 IT Executives-September 2015
5 The Cloud What It is Not (. if implemented poorly) A Quick Ticket To Operational Cost Savings Focusing on achieving hard cost savings alone can limit the full potential of the cloud. Investigate how additional value can be achieved via the elimination of waste An Immediate Answer to all Data Security Needs Depending on the global design of the cloud, a company has to be aware of data privacy laws of the countries that will host the presence of virtual servers Ensures Fast Performance 100% of the Time The speed of the connection between where you access your data and where it is stored in your cloud might not be as fast as the high speeds you may be used to with an on-site server An effort that is limited to just the Virtualization of servers Not true! Success in the cloud relies on the development of a strategic plan that requires the on-going partnership of both the Business & IT The Challenge What is the best way to go from Point A to Point B? Is the journey to the Cloud yet another IT project or is it something more? How can a technology project support the strategic objectives of the Enterprise? What are the pitfalls that should be avoided? In Other Words, Where Should We Begin?
6 Let s Get Cloud Ready! Building a Strategy The essence of strategy is choosing what not to do, Michael Porter, Economist, Researcher, Author, Advisor, Speaker & Teacher at Harvard Business School Step One: Choose Not to Make the Journey to the Cloud Yet Another IT Project Let s Get Cloud Ready But How? ITIL Service Strategy Lifecycle Advantages Limitations A well balanced theory for developing a strategic roadmap Explains the classification of logic of Strategic, Tactical or Operational services through Service Portfolio (SPM) Identifies the key roles Demand Service Portfolio Business Relationship Financial ITIL Service Strategy Lifecycle Tends to be overlooked Primary focus is positioned towards the Service Transition & Service Operations lifecycle(s) IT strategy often deviates from Business strategy due to immature Demand best practices Misconception (on ITs part) of which services deliver strategic value Does not provide a roadmap on how to roll-out the processes within the lifecycle Result: IT Was Not Meant To Live By ITIL Alone!
7 Planning for Success What Do We Need To Realize Success? The Foundation Supporting Frameworks, Methodologies & Disciplines Purpose Business Relationship Catalyst for the Transition of an Ad-hoc Provider to that of a Strategic Partner Ensures Alignment of True North Values Service Portfolio Business Relationship Lean IT Establishes Continual Improvement Mindset Enables Continual Flow Demand Financial Agile How Work is Managed & Prioritized Work is Performed in Small, Bundles ITIL Service Strategy Lifecycle BRM Explained As a Discipline As a Discipline, Business Relationship embodies a set of competencies (knowledge, skills, behaviors) that foster productive, value producing relationships between a provider and the business units they serve* Demanding Shaping Servicing Purpose: The process by which possibilities for using the provider s services within the business are surfaced and capitalized upon Goal: Identify a set of possibilities that will create the most value for the organization Special Note: Also referred to as Demand Purpose: Coordinates resources, manages Business Partner expectations, and integrates activities in accordance with the business partner-provider partnership Goal: To ensure that business partner-provider engagement translates demand into effective supply requirements Exploring Value Harvesting Purpose: identifies and rationalizes demand Goal: Sense business and technology trends to facilitate discovery and demand identification. An ongoing process that aligns analysis of new business, industry & technology insights that could produce new, value-added outputs Purpose: Ensures the success of business change initiatives Goal: Track and review performance, identify ways to increase the business value from business-provider initiatives and services, and initiates feedback that triggers continuous improvement cycles * Reference: Business Relationship Professional, Pink Elephant. February 2017
8 BRM Explained As a Role Connector Orchestrator Navigator As a Role, the Business Relationship Manager is a connector and translator between a Provider organization and a Business Unit by constantly Connecting, Orchestrating and Navigating Business demand* Objective: Facilitate productive connections and mobilize Projects & Programs Benefits Business: Stimulate, shape demand while raising IT savvy IT: Ensure appropriate supply Objective: Orchestrate capabilities to drive value from Provider services Benefits Business: Coordinate and aggregate demand IT: Orchestrate key provider roles Objective: Facilitate Business- Provider convergence Benefits Business: Facilitate business strategy & road mapping IT: Guide Architecture, Portfolio & PMO * Reference: Business Relationship Professional Slide Book, Pink Elephant. February 2017 Business Relationship (BRM) How Does it Support Service Portfolio (SPM)? Service Portfolio The purpose of the Service Portfolio (SPM) is to ensure that an organization can manage costs and risks associated with a Service Portfolio, while meeting the performance expectations of its partners.* The SPM process acts as both gatekeeper and monitor for service and technology investments, while BRM provides the business partner interface. Business Relationship As defined by BRM Institute, the purpose of the Business Relationship (BRM) capability is to stimulate, surface and shape business demand for a provider s products and services and ensures that the potential business value from those products and services is captured, optimized, and recognized. Gatekeeper: SPM ensures that all new requests undergo a rigorous vetting and review process prior to their entry into the services pipeline This intake process requires a formal business case be submitted, analyzed, and approved in alignment with IT/business strategy. Monitor: SPM defines and manages several strategic service artifacts that clarify this linking of business drivers with technology, including service models, service charters, and links to business outcomes. Result: The interplay between these two areas is perhaps the most critical combination in the ITIL framework Do not confuse Service Portfolio with Service Catalog! Ensure that all strategic supporting services are acknowledged within the Service Portfolio prior to developing the Service Catalog! * Reference: Leveraging Your BRM Capability with ITIL Service Portfolio Process, BRM Institute. April 2017
9 Business Relationship Myth or Reality? The 2017 CIO Sentiment Survey shows that more than one out of three CIOs expect to introduce products out of IT that drive new business and allow their companies to compete in new markets To facilitate this shift, IT shops are partnering with their business counterparts to bridge the gaps between talent and teams CIO Magazine: State of the CIO 2017 An influx of business knowledge enables IT to better understand what the business needs from their systems and data* Reference: CIO Magazine: "State of the CIO 2017: The New Reality, 'Hero s Merge From Ones & Zeros'", February 21, 2017 Strategy Planning What is Your True North? True North is a Lean IT way of thinking It is the overarching value system of the Enterprise and is determined by the Business Serves as the guiding compass that defines the strategic direction of Enterprise Ideally, everyone throughout the Enterprise should support the True North value system Adherence to True North Values Increases the Integrity of BRM & SPM
10 Why Lean IT? The inclusion of Lean framework helps to animate the foundational approach of the ITIL Service Strategy lifecycle by providing the how to direction which brings the ITIL body of knowledge to life The Voice of the Customer is the driving force that determines what is Critical to Quality Value-added (i.e. strategic supporting) services are documented via Value Stream Maps (VSM) and are continuously reviewed to identify opportunities for improvement Work is conducted via a model of pre-defined steps that never deviates from the standard The definition of Continual service Improvement is transitioned away from that of a another ITIL process but that of a way of life (i.e. Kaizen Mindset) Waste removal supporting activity is incorporated into resource management plans Reliance on visual management (i.e. Kanban) to support on-demand reporting and identification of bottlenecks Resource management is enhanced by identifying Work In Progress (WIP) limits Lean IT Cultures Enable Continuous Flow Performing Work With Purpose Being Agile (And What Exactly Does That Mean?) Agile Agile Software Development Agile Delivery In it s early form, Agile emphasized a close collaboration between application development teams and their aligning business stakeholders which resulted in frequent delivery of business value (i.e. code). Since then Agile has evolved to include multiple methodologies as influenced by the parent approach. Definition: The ability to create and respond to change in order to succeed in an uncertain and turbulent environment. Definition: An umbrella term for a set of methods and practices based on the values and principles expressed in the Agile Manifesto Goal: Solutions evolve through collaboration between self-organizing, cross-functional teams utilizing the appropriate practices for their context Definition: The practice of translating the needs of a group and its members to process improvements and provide new offerings that result in delivered change to the organization. Agile delivery methods can be used to complete work that does or does not involve technology. Goal: Work outputs are built around a value stream, which commonly touches several business functions. * Reference: Agile 101, Agile Alliance
11 The Perfect Pairing BRM & Agile (Development & Delivery) BRM As Navigator Agile as Tactical\Operational Partner Strong business relationship management will ensure that the ship is moving in the right direction of True North values Effectiveness is measured by leadership in both the enabling business functions The BRM team owns value for investment at the highest levels of business functions and on behalf of executive leaders and investors of the organization. * Alignment with BRM will ensure that strategic vision will be translated into value-added outputs An effective Agile team s work aligns to company strategy Product Owners correctly focus on successful delivery by their team; whereas, BRM support will ensure alignment with longerterm roadmaps BRMs are able to span Agile teams to ensure the delivery of roadmaps and blueprints via value added outputs Successful BRM teams partnered with effective Agile teams will produce the best results * Reference: A Perfect Union: BRM and Agile Development and Delivery, BRM Institute. April 2017 Resetting the Vision Recreating the Strategic & Operational Support Models TRUE NORTH The important and constant focus the organization should have on value Re-organize existing services into an overall Service Portfolio, which aligns with the Mission-Vision-Intents-Outcomes of the Enterprise Service Team #1 Mission Vision Intents Outcomes Service Portfolio (Strategic Services) Program (Initiatives) Service Team #2 Service Team #3 Service Governance Strategy Purpose Major Objective Enabling Components Measureable Future Achievements Business Oriented Agile Teams Decision Authority Establish a bi-modal management approach for IT, which is the practice of managing two separate but coherent styles of work One half of the organization focused on predictability (i.e. operations); the other on exploration (i.e. strategy) Empower the BRM to focus on strategic activities such as shaping the current & future needs of the Customer Evolve the roles of the Technical Architect to conduct Tactical in addition to Operational activities that align back to True North focus Adopt the Agile Delivery method for all work that requires validation from the Customer The BRM serves the diplomat between the Customer & Technical Architect and the ensures that the work is placed into the pipeline The Technical Architect owns the validation process and works with their Customer counterpart Processes Measurements Operations
12 Conclusion Parting Thoughts Identify the True North of Your Corporate Culture Review the Corporate Mission-Vision-Intents- Outcomes statements and annual reports Is IT aligned with the value system? Establish a Well-Defined Service Portfolio Entries should be specific to Business Services that support the strategic vision of the Enterprise Establish a Bi-Modal Culture Adopt a BRM approach to ensure that strategic intents are being realized via tactical & operational outputs Determine if BRM engagement is best handled via an Enterprise, Line of Business, Business Process or Geographical perspective Financial Gains Baseline your current costs to measure your success over time Acknowledge the added value of eliminating waste, not just hard cost savings Tool Time Once you have figured out your path, then (and only then!) understand the tool suites that are available to you Understand how the tools are deployed and used to create a best practice cloud implementation strategy Appendix
13 References Resources Business Relationship Institute (BRMI): BRM Training: Lean IT Association (LITA): Agile Alliance: Articles CIO Magazine: "State of the CIO 2017: The New Reality, 'Hero s Merge From Ones & Zeros'", February 21, 2017 BRM Institute : A Perfect Union: BRM and Agile Development and Delivery, April 2017
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