SESSION 207 Wednesday, November 1, 11:30am - 12:30pm Track: People, Culture, and Value

Transcription

1 SESSION 207 Wednesday, November 1, 11:30am - 12:30pm Track: People, Culture, and Value Problem Management: A Culture Shift Toward Delivering Business Value Jim Bolton President, Propoint Solutions jbolton@propointsolutions.com Session Description IT is experiencing a fundamental cultural shift in emphasis from efficient utilization of resources (fix it fast) to effective realization of business value (prevent failures). This session begins with a case study on successfully dealing with constraints. The session will then shift to the synergies and important differences between incident management and problem management. Finally, you ll get recommendations on how to address the most common challenges to implementing a problem management process that delivers b+l38usiness value. Speaker Background Jim Bolton has more than a decade of experience in architecting ITSM solutions by applying ITIL best practices, ISO process disciplines, and Six Sigma concepts. He is the coauthor of Problem Management: A Practical Guide, and the founder and president of Propoint Solutions. An HDI business associate and former member of the HDI Strategic Advisory Board, Jim received his MBA in technology management from the University of Phoenix, and he is a certified ITIL Expert and ISO/IEC Consultant. In recognition for his industry contributions, Jim received the Information Technology Industry Legend Award in 2014.

2 Problem Management: A Cultural Shift Toward Delivering Business Value JBolton@PropointSolutions.com International Best Practice Co-Author Problem Management: A Practical Guide Jim is the founder and president of Propoint Solutions Inc. He is an ITSM Consultant, ITIL Training Provider, Courseware Developer, IBP Author, and Speaker at conferences around the world on ITSM topics. He a member of the HDI Faculty, and has served on the HDI Strategic Advisory Board, the itsmf and HDI Local Chapter Boards, and as track chair for itsmf and HDI annual conferences. Jim s credentials include: an MBA in Technology Management, ITIL v3 Expert, ITIL v2 Manager, ITIL SOA and OSA Certificates and the itsmf ISO/IEC Consultant Certificate. Jim Bolton On a personal note: As my friend and colleague Ken would say, There are a number of things I know nothing about.this topic is not one of them.

3 When I was a kid growing up on the farm the average American farmer produced enough to feed 25.8 people. Today's American farmer feeds about 155 people worldwide. * That s a 600% Increase! How did they do it? The soil is the same The weather is the same No increase in staff Problem Management!! * Source: American Farm Bureau Federation Problem Management - Workarounds Drones analyze plant foliage to locate trouble areas. Farmers then quickly and precisely apply solutions only where needed.

4 Problem Management - Root Cause Analysis By analyzing yield data from prior years, farmers are able to adjust seed dispersion to compensate for variability in soil types. Problem Management - Proactive, Analytics Farmers are collaborating using blockchain based systems to securely share data. Farmers use soil samples and yield data from prior years to proactively dial in nutrients. They are looking for changes that will increase yield by just 2%!

5 Problem Management Has Transformed Farming! Has it Transformed IT Organizations? NO! Based on the most recent HDI Practices and Salary Survey of Technical Support Organizations: Only 49% claim to have adopted Problem Management Only 27% have a formal Problem Management process Only 10% have dedicated PM resources It s Time for a Fundamental Transformation Problem Management: A Cultural Shift Toward Delivering Business Value 1. Process From Incident Management to Problem Management 2. Mode From Sustainer to Dreamer 3. Metrics From Reactive to Value

6 1. Process Case Study: It s planting season and you are out in the field planting corn with your 40 row planter. The weather forecast is calling for rain so you need to quickly get the planting completed. Suddenly you hear a squeaking wheel on the corn planter. You should: a. Turn Up the Radio b. Grease the squeaking wheel c. Grease all of the planter wheels d. Replace the squeaking wheel e. Buy a new planter Problem Incident Problem Management Management Permanent Quick Root Cause Solutions Fixes Incident Management Incident Database Matching Workaround Problem Management Problem Record Known Error Root Cause Workaround Problem DB KEDB or KB CI at fault RFC Change Management Change / Release

7 Incident Management Incident An unplanned interruption to the standard operation of a service, or a reduction in the quality of that service Reactive; Firefighting Logs data used for trending by Problem Management Categorizes incidents which aids in appropriate incident and problem assignments Prioritizes incidents which triggers problem prioritization vs. Problem Management Problem The underlying cause of one or more incidents Proactive; Value Characteristic of high-performing organizations More than restoring services Eliminate recurring incidents Prevent incidents from occurring Schedule Time for Problem Management But we only have an IT Staff of 7 including the CIO! If there is no Major Incident impacting the business, we will spend every Friday Afternoon from 1:00 PM to 5:00 PM on Problem Management

8 2. Mode From Sustainer to Dreamer lost golf ball Sustainer We are on autopilot Just follow the process That won t work The boss won t approve it We are already too busy Source: Innovation Resource; Robert Tucker

9 Dreamer Wouldn t it be great if Problems become opportunities Obstacles are challenges Impossible just takes a bit longer Source: Innovation Resource; Robert Tucker Dreamer Put yourself in the customer s shoes: What would be an outstanding experience? What would keep me coming back? What would make me tell others about this business?

10 Dreamer From Fixing to Bringing Value The Incident 9:00PM slow drip at water meter near the floor drain A repair person shows up in 20 minutes and fixes the leak Bringing Value When I ask about my gas meter not being level, the repair person offers to stay and fix it They cut and install the new pipe They repaint my meter They re-light all of my gas appliances They check each appliance for CO emissions They check my CO detectors and discover one is defective Dreamer From Fixing to Preventing The Incident 2,000 miles of aging water pipe Fix broken pipes quickly Bringing Value - Prevent Utilities employees suggest preventative corrosion protection Renewing water pipes is 2-5% of the cost to replace them In 2 years, maintenance costs were reduced by $90 million Roadway disruptions are reduced by 95%

11 3. Metrics We Get What We Measure According to the most recent HDI Practices and Salary Survey, 88% of customer satisfaction surveys are reactive. If we are focused on the Check Engine light, we will forever be doing Incident Management instead of adding value! Source: 2016 HDI Practices and Salary Survey Shift From IT Metrics to Business Value!! IT Operation Traditional Metric Metric Business Business Outcome Value Metrics Help Desk Time to Resolve End user satisfaction Data Center System Uptime Service Availability Hardware or Software Upgrade Level of Support for equipment or applications Operating risks averted New capabilities enabled New System Implementation Service Delivery Schedule and project budget goals Process Maturity Revenue generated Change in market share Productivity improvement Speed and efficiency as compared to competitors Source: CIO Magazine, adopted from K2 Solutions

12 Metrics for Problem Management Reduced Incident Resolution Time - Report the cumulative savings for developed workarounds - To fund PM resources - To fund PM training - To fund Knowledge Management tools Metrics for Problem Management Reduced Incident Volume - Predict the cumulative value of eliminating repeat incidents - To build a business case for the permanent fix - To build a business case to transition staff from Incident Management to Problem Management - To build a business case for additional PM training - To build a business case for implementing PM tools

13 Metrics for Problem Management Proactive Problem Management Establishing the value of actions taken to prevent incidents that have not yet occurred - To build a business case for preventative investments - To effectively communicate value to your customers - To build trust/support for future preventative investments Problem Management: A Cultural Shift Toward Delivering Business Value Process From Incident Management to Problem Management Mode From Sustainer to Dreamer Metrics From Reactive to Value

14 I am committed to facilitating this essential shift in my organization It was just a dream until I wrote it down HDI 2008 Emmitt Smith When I get back to the office, here is what I am going to do: Process: Shift focus and transfer resources to Problem Management Mode: Encourage ideas (problems are really opportunities) Metrics: Report on actions that bring value Session 207