Capability Oriented Service Transition Approach Dinsha Palkhiwala
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1 Capability Oriented Service Transition Approach Dinsha Palkhiwala
2 Session Over view What this session covers:- Problem statement How is Service transition different to Application / Infrastructure transition Capability Oriented approach for Service Transition Critical Success Factors Key Risk to be managed Key benefits What this session does not do:- Purport to be all encompassing in outlining all there is to know about Service Transition management Does not provide a Silver Bullet to solve all Service Transition Management issues 2
3 The problem statement Time and again IT faces the challenge that what IT thinks as a very successful project is deemed to be not so successful by business. The perennial problems is that traditionally IT has focused on delivery of IT assets with the assumption that these assets by some magic will become the Business enablers to create business benefits. Reality is that as organisations move to Outsourcing, Cloud sourcing, SasS, IasS and AasS models they have to realise that it is the Services which are business enablers which Create Capabilities Consumption of which, Provides business the ability to derive Benefits. 3
4 Service Transition spans across project Life cycle Service Transition is primarily transformation of current capabilities to successful creation and establishment of future capabilities Infrastructure or Application projects transition activities Bridging two phases Conceptual Solution Solution & Service Design Solution & Service Build Transition Conceptualise & Strategies Future state Design Plan to transform - current to future Implement Future state Operate Future State Confirm Future State Service Transition projects transition activities full life cycle 4
5 Why different approach for Service Transition? Key Differences between Infrastructure / Application & Transition project management Attributes Infrastructure / Application Service Transition Focus Technology Transformation Organisation & Capability Transformation - People & Process Deliverables Tangible & Physical Intangible Scope Software, application and Infrastructure Service Portfolio Sign off criteria Tangible relatively simple Capability based & can be subjective Key Impact IT Internal Technical Services Customer facing Business Services Milestones Technology based Capability based Stakeholder Management Medium to Low Mainly Technical Stakeholders (Internal & External) High to Medium Diverse cohort of Stakeholders Customers, Business, IT (Internal & External) Budget Costing models well defined Costing models with many variables Time frame Relatively well defined Most of the time end event driven Knowledge transfer Well defined and can be gained through documentation People based and need Observe & Execute activity with documentation 5
6 Current state Service Transition complexity External Internal Medium Low High Medium Internal External Target state Service Transition can be of different flavour and complexity it is important to adopt actual execution to different variations. HR & Industrial Relations External Market / Media Transition of Services Business Teams Do not underestimate People aspects - Be cognisant of the organisation change aspect of the Service Transition Operate and Govern Executive Decision Makers Contracting Review Services Service Transition Dimensions Strategy Development Evaluation Request for Proposal Suppliers IT Management Team Impacted Staff 6
7 Service Transition project manager -competencies Service Transition is much more complex compared to Technology and Application Transition - This makes it necessary for Service Transition project manager to typically have a much broader competency set Core competencies Project Management Service Management Organisation Transformation Management Process Management Supplementary competencies Risk Management Vendor Management Contract Management Financial Management Business Stakeholder Management Requirements Management Service Architecture 7
8 Current to Future state Capability Project to Operation - New Service created Or Existing service Modified scenario one Current state -Project domain Business Users Project support Contact Business Capability changes Support first point of contact & First call resolution capabilities Future state Operations Domain organisations existing Service Management Eco-system Technical support Applicatio n Support Data Base support Governance & Service delivery Capability changes External Service Providers External Service Provider capability & contract changes 8
9 Current to Future state Capability Operation to Operation - Transfer of existing Services from one to other provider scenario two Current state Capabilities Technology / Asset based operations Business Users Help Desk Technology support Business Capability Support first point of contact Governance & Service delivery Future state Capabilities Service Based operations Changing organisations existing Service Management Eco-system Technical support Application Support Data Base support External Service Providers External Service Provider capability & contract changes 9
10 Service Transition scenarios - Comparative considerations Attributes Project to Operation - scenario 1 Operation to Operation scenario 2 Primary Success criteria New or changed service meets agreed business requirements - fit for purpose No degradation of existing services fit for use Service Performance Predictive modelling based on Service Level Objectives Establish bench mark based on current performance and SLAs Service demand & capacity Predictive modelling based on Pattern of Business usage Establish capacity and demand management plans Service support Predictive based on likely use case and project experience Establish process, organisation structures and performance measure to be met at least Business impact Functional may not be able to perform new capability Operational will not be able to perform current operations business disruption Transition complexity Organisation change Service Provider management In most cases confined to one Transition Project Manager & single service provider Most likely managed through business process and functional change Relatively simple as unlikely to have conflict of objectives and interest between parties Invariably multiple Transition Project Managers & service providers involved Most cases HR, IR, Contractual, legislative & Organisation impact (outsourcing, insourcing) Quite complex Very high possibility of tension between old & new service providers 10
11 Current vs Future Capability Gap management Avoid reinvention - Reuse the existing capabilities - Investigate existing organisation capability and competencies before creating new. IT Service Enablers to meet the Outcomes (O) S 1 S 2 S 3 S4 C1 C2 C3 C4 C5 C6 C1 C2 C3 C4 C5 C6 Organisation Capability Current vs Future Business Requirements Future state Outcomes O 1 O 2 O 3 O Understand business requirements to define future state outcomes. 2. Identify key Organisation capabilities critical for delivering successful outcomes. 3. Conduct a capability gap analysis between current & future state 4. Map the gap analysis to capability object inventory 5. develop and implement a capability gap closing plan
12 Capability Life Cycle - from current to future state Develop New Capabilities & Products N As far as possible build new or changed capabilities using already tested Capability Objects to reduce the risk of unknown Y Does it exist? 3 Products Technology Products are the tangible items that customers use - Desktop - Voice Network - Build & Implement Assemble 2 Capabilities Capabilities are the activities + that IT staff perform that underpin and enable the delivery of products - Service Desk - Support - Service Management N Design Catalogue of Product & Capability Objects Y Does it exist? IT Service Catalogue IT Service portfolio is made up of Product and Capability. - Application Hosting - Enhancement - Support - Management Assemble N Y Does it exist? Transition & Support Deliver Requirements Analysis 4 Business Requirements 1 12
13 Critical Success Factors (CSF) Following are some key CSFs which need to be considered at every stage of the service transition management project. Optimised? Is it Fit for purpose? Avoid Star ship Enterprise syndrome - Avoid temptation of over engineering Delivers Value? Allows business to meet its objectives in the desired timeframe? Manages Operational Risks? Does it create any detrimental impact on existing services or business capabilities? Sustainable? Supportable, Maintainable, Reliable, Scalable Affordable? Meets Total Cost of Ownership goals and strategies Operatable? Services fit operational requirements as stipulated in handover check list Strategically aligned? Does it align to Sourcing guideline, Business & Enterprise strategy, architecture, policies and principles? 13
14 Potential Risk factors to consider Lack of right resources with right competency Service Transition project manager with no service management background solution architect is a technical architect and not a service architect A perceived small change to existing service has potential to create a much wide service disruption across a much larger service portfolio Underestimating People aspects - People behave differently under stress - Teaming is critical Underestimating testing effort - Insufficient Use case scenarios to successfully complete appropriate testing. Too many assumptions with very little validation Lack of clarity on Target state ownership -Low maturity of the receiving entity Service owner role and responsibility Decision making process decision rights - Too many and overlapping signoff points Acceptance criteria Lack of or insufficient overall coordination, governance and clarity on interdependencies in complex multi-stream transition specially involving internal and external parties with contractual obligations Unavailability of right resources from Operation domain internal and external - Inability to get specific and definite answers from Operations domain 14
15 Key benefits of capability based service transition approach Applying these concepts, to real life situations will result in Higher probability of success -Successfully manage the transition of services, to service providers, whilst safeguarding the ongoing business Better alignment to business outcomes & organisation strategic objectives - new or modified service entirely meets the business needs and expectations, when transitioned to the operational phase. Minimise the risk, to performance of services currently in operation, Sustainable operation of the services without a need for retro fit of fixes in operations. The success or failure of the transition can be measured by well definable outcomes in business context Business can relate to this approach much better and hence easy to gain their participation A stepped approach can be applied to create intermediate capability states resulting early realisation of benefit Estimation of Total Cost of Ownership (TCO) is much more predictable and defendable. 15
16 Take away -Key Messages Service Transition is primarily transformation of current capabilities to successful creation and establishment of future capabilities Service Transition is different to Technology and Application Transition - This makes it necessary for Service Transition Manager to typically have a much broader competency set Infrastructure and Application projects deal with tangible aspects whereas Service Transition projects typically deal with intangibles Unlike typical Infrastructure or Application project, Service Transition project has full life cycle involvement from Concept, Design, Build, Implement and Operate phases of the life cycle Service Transition can be of different flavour and complexity it is important to adopt actual execution to different variations. Most organisations have existing Service Management Eco-system - Avoid reinvention - Reuse the existing capabilities - Investigate existing organisation capability and competencies before creating new. As far as possible build new or changed capabilities using already tested Capability Objects to reduce the risk of unknown Do not underestimate People aspects - Be cognisant of the organisation change aspect of the Service Transition for complex scenario it is advisable to involve Organisation Change professionals to manage these aspects 16
17 ? Dinsha Palkhiwala Mobile
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