SESSION 402 Thursday, November 2, 10:15am - 11:15am Track: The Generalist

Transcription

1 SESSION 402 Thursday, November 2, 10:15am - 11:15am Track: The Generalist Overcoming the Barriers to Creating a Robust Service Catalog Philip Hellerman Sr. Configuration Manager, Toyota pjhmc2348@hotmail.com Session Description Many organizations want to pursue a Service Catalog initiative. However they are reluctant to do so because of roadblocks including lack of funding, resistance to changing to a new paradigm and lack of understanding of the ROI thata successful catalog brings to the organization. This session identifies many of these barriers and offers a concrete pathway to overcoming them. Speaker Background Phil Hellerman is the consummate ITSM professional, with broad and deep expertise in ITIL, ITSM, Agile. He has more than twenty-five years of experience in IT operations and infrastructure management, and has tactically led a variety of ITSM initiatives, focusing on service portfolio and catalog development, SACM, and change management, in a number of Fortune 50/100/500 corporations.

2 Overcoming the Barriers to Creating a Robust Service Catalog by Philip J Hellerman Agenda Introduction Building Blocks for Creating Services Service Costing Communications Plans Pilot Programs Organizational Dependencies Keys to Success and Takeaways

3 Introduction Services are an IT Operational Model Not driven from a tool capability Not driven from a process requirement Demand Drivers Customer Frustration Lack of Cost Transparency Poor IT-Business Alignment Business Issues Driving Need for Services Perceptions that internal IT organizations not meeting needs Unclear what services are available Difficult to find where to request services Timing No way to know up-front how long something will take Cost Averse If you have to ask how much it cost; you cant afford it

4 Audience Poll What business problems challenge your organization? Customer Frustration Lack of Cost Transparency Poor IT-Business Alignment All of the above None of the above Challenges Facing IT Organizations Lack of Cost Transparency Poor visibility of costs for request frequency and fulfillment options What type of requests do I get most often? What service goals should I have? Am I meeting goals or expectations? Activity-Based Costing allocation? What are my fixed and semi-variable costs? Poor IT-Business Alignment IT organizations have a difficult time aligning costs to business consumers Under continuous pressure to cut costs for shared services Need to drive traffic to lower cost, self-service channels Need to show how value is delivered to the business

5 Key Pillars of Service Development IT-Business Alignment Using the Catalog to define services in business terms Service planning/forecasting Service request/ordering Cost Transparency Right-sizing the Supply Organization Using customer demand Creating customer conversations based on transparency of choices and cost Responsibility for consumption placed with the customer Customer Satisfaction Creating a partnership Define the optimal cost/performance balance Service Level Tracking Poll Are your IT Services defined in Business Speak? Yes, we have a complete business focused Service Portfolio No, but we do have a Technical Speak Service Catalog We have just started defining services We haven t started yet but plan to soon No we don t plan on defining services in Business Speak

6 Building Blocks for Creating Services Building Blocks for Creating Services Service Portfolio Service Catalog Services Structure Taxonomy Service Catalog vs. a Request Portal Defining a Service

7 What is the Service Portolio Identification of capabilities managed by IT Service Lifecycle Management - Pipeline - Live or available - Retired Executive view Maps to business requirements Allocates resources and risk Identifies investments made by IT What is the Service Catalog? Structured interface describing all Live IT Services Visible to partners Provides Service Information Deliverables e.g. SLAs Prices Contact points Variety of Catalogs can exist Actionable Technical Service Catalog Business Service Catalog Project Catalog Localization Catalog Supplier Catalog

8 How Services be Structured? Structure Component; equivalent to a Configuration Item (CI) IT System Component Stand alone Aggregated with others to form an IT System IT Service Composed of 1 or more Components or IT Systems Can be priced Taxonomy Biological Taxonomy IT Service Taxonomy Mammal Service Family Carnivore Service Category Dog Service Name

9 IT Service Taxonomy Service Family Highest level of the Service Taxonomy Identifies the general classification of those Services below it Example - End User Serivces Service Category Supports a more specific and refined classification of the Service Example - Collaboration Services Service Name Identifies the Service by its common name Example - Instant Messaging and Services are Not Requests! Strategic Service Aggregated capabilities associated with a specific selection; less frequently performed. Employee Onboarding Server Provisioning Complex scope, aligning business requirements with IT capabilities ITIL Alignment: Service Strategy and Design Price, charge backs and show backs can be used as levers to influence demand Defined as a Configuration Item (CI) in the Configuration Management System (CMS) Tactical/transactional Request Single, low cost transactions; frequently performed. Access to an environment Software install Specific scope; aligning tasks and activities performed by IT with a list of routine requests ITIL Alignment: Service Operations No capability to influence demand. Not recorded as an CI; just executed.

10 Service Portfolio to Service Catalog Analogy The Eatery Vendors/Suppliers The Eatery receives ingredients (meat, vegetables, spices etc.) for menu items. The Global IT organization receives ingredients that will be used to construct a service; labor, hardware, software, licenses. Phillippe the Chef unpacks the ingredients and separates them by type of item; meat, vegetables, spices etc. The Global IT organization unpacks the ingredients and separates them into components; labor, software, licenses. These components are called Configured Items (CIs). Phillippe the Chef stores the ingredients and has an inventory of the ingredients. At Global IT, the Service Owner knows what components and IT Systems are stored by looking at the Service Portfolio Phillippe the Chef creates a menu item, prices it and adds to the menu. At Global IT, the Service Owner takes the components and IT Systems, identifies the cost of the components and combines them into a Service. Customers of The Eatery select items to eat from the menu. Customers of Global IT select Services from the Service Catalog The waiter delivers the ordered menu item. Global IT delivers the Service to the Customer. Customer pays the bill shown in the menu. Global IT Customer pays the identified price of the Service. Service Types Core Service Provides the basic outcomes desired by the customer Accounts Payable/Receivable Payroll Enabling Service Required to deliver a core Service Time Tracking Network Database Administration Documentation Enhancing Service Enhancement to a core Service Differentiates the Service 7x24 Service Desk Support Service Package Collection of two or more Services that have been combined to offer a solution to a specific customer need combines network, storage, UI software, etc.

11 Service Deconstruction Enabling Services Enhancing Services Service Options Network Storage Account Administration Service Management Service Desk Support System Monitoring Information Security Service Desk Support 8 x 5 Service Desk Support Service Desk Support Mailbox Size (Maximum) 2 GB 10 GB Unlimited Wireless Devices ipad iphone iphone 7 iphone 7 Plus Multi-language Spanish French Japanese Service Support Gold Silver Bronze End-User Services Collaboration Services (Core Service) Service Costing

12 As needed Process Activity Name Description Service Using Team Responsible Primary Secondary Review s that request adding/permitting user entitlements or access to specific web sites. PM/Developer/ Tech Analyst Hourly Rate Architect/ Strategy General Support $ $ $55.00 Service Name Organizational owner Name Name 0.25 $ $31.2 Calculating the Cost of a Service Create a working spreadsheet identifying Service Components Naming Convention ServiceName_Components*.xls Primary Costs Secondary Costs Activities Supporting the Service Identifies all activities or tasks and their costs that are performed to support the Service. Spreadsheet Working Spreadsheet for Component Costs Goal Develop a working spreadsheet for the Components of the Service Results Naming Convention ServiceName_Components*.xls Activities Supporting the Service Identifies all activities or tasks and their costs that are performed to support the Service. Spreadsheet 2. Frequency 1. Spreadsheet Example (Using PM/Developer/Tech Analyst Rate activity takes 15 minutes) Time Spent in Hours (QTY) Total Labor Cost

13 Primary Costs Associated with Service Goal Identify all primary costs used or required to support the Service Results Reduces costs by identifying the primary costs of the Service Limits business and legal risks Frequency Indicate how often this activity is performed. Values are typically, daily, weekly, monthly or as needed. Activity Name Provide a short name for the activity. Description Describe the activity you are performing in enough detail so that others could pick up the spreadsheet and know what task you are performing. Service Using Identify the name of the Service that uses this activity. Team Responsible Identify the organizational owner of the Service. Primary Indicate the name of the primary owner of the activity. Secondary Indicate the name of the secondary owner of the activity Time Spent in Hours Estimate or calculate the time spent on this activity. Be sure to (QTY) factor in the frequency of the activity. This information will be used to determine a part of the cost for the Service Hourly Rate Identify the hourly rate as provided by Financial Management. Total Labor Cost This is a calculation of the time spent for the activity times the hourly rate. This will be become part of the price for the Service. Seconday Costs Associated with Service Goal Identify all software and tool costs used or required to support the Service. Results Reduces costs by identifying potential software are tools Limits business and legal risks related to ownership issues Tool or Software Name Version Vendor Current Status Description Team Responsible Primary Secondary Cost of Software Number of Users Cost per Element Software and Tools Supporting the Service Name of the tool or software used in conjunction with this Service. Indicate the version of the software or tool. Name of the vendor who produces the tool or software. Not the vendor name used to purchase the tool or software. Identifies the current status of the software Provide a brief description of the tool or software. Name of the team that owns the software or tool. Ownership is typically the cross functional team that provides technical support for the tool or software. Indicate the name of the primary owner of the software. Indicate the name of the secondary owner of the software. Purchase price or maintenance cost for the Service. Number of users that use the Service and subsequently the number of individuals that can be allocated the expense of the tool or software. Cost allocated for each user for the tool or software. This is calculation of the cost of the software divided by the number of users.

14 Seconday Costs Associated with Service Goal Identify all licenses and their costs required to support the Service. Results Software licenses are sometimes required as a requirement to operate the Service. Instant Messaging (IM) Each individual who uses IM must have an additional license in order to chat. Legal compliance since the license grants an end-user permission to use the software. Identifies any additional costs associated with the Service Total price of the Service may be accurately represented to the customer. License Version Vendor Current Status Description Service Using Team Responsible Primary Secondary Cost per License Maintenance Cost Number Users Cost per Element Licenses Supporting the Service Identify the name of the license used in conjunction with this Service. This should be spelled out so the name clearly identifies name of the license. Indicate the version of the license. Identify the name of the vendor who manufactures the software for which the license applies. This is not the name of the vendor from which you purchased the license. Identifies the current status of the license. Provide a brief description of the license. Identify the parent Service that requires the license. Identify the name of the team that owns the software or tool. Ownership is typically the cross functional team that provides technical support. Indicate the name of the primary owner of the license. Indicate the name of the secondary owner of the license. Indicate the cost for each license. Indicate the maintenance cost for the license, if any. Identify the number of users who have the license. Calculate the cost per license. This calculation should include the maintenance cost. Seconday Costs Associated with Service Goal Identify external suppliers and their costs that are required to support the Service. Results External Suppliers; typically a Third Party Responsible for supplying Services that are required to deliver IT Services. Examples Commodity hardware Software Network/telecom providers Outsourcing Organizations. Contracts with these external entities are known as underpinning contracts. External Supplier Name Supplier Service Name Version Current Status Description Team Responsible Primary Secondary Contract Cost Maintenance Cost Number Users Cost per Element External Suppliers Supporting the Service The Managed Service Provider name. Name the Supplier uses for its Service. Optionally, identify the version of the Supplier s Service. Current status of the license. Briefly describe the Suppliers Service. Team that owns the relationship with the Supplier. Typically it is the cross functional team that works with the Supplier. Primary contact for this supplier. Secondary contact. Cost of the Managed Services contract. Maintenance cost for the Managed Services. Number of users who use the Service provided by the Supplier. Calculate the cost per license. This calculation should include the maintenance cost.

15 Type of Costs Direct Labor - Assigned to or associated with the individual chartered with either creating or supporting the specific Service. Fixed Cost (Direct) - Expenses that do not change. Can be traced and assigned to the specific Service. Direct Overhead Cost Costs except for direct labor, direct materials, and direct expenses. Example: accounting fees, advertising, depreciation, interest, legal fees, rent, repairs, supplies, taxes. All Other Cost Costs not classified as a direct or fixed costs. Example: cost for annual software maintenance, depreciation or administrative expenses. Fixed Cost (Indirect) - Costs that do not change regardless of the amount of the Service that is used by the Business Customer. Example: rent Allocation to the Service of the share of the Fixed Cost. Communications Plans

16 Communication Plan Key to Success Constructing Strategy Types of Communications Leadership Stakeholder Testers End Users External Suppliers Others Milestones Schedule Sample Communications Plan Week Type Content Audience 0 Announcing Project Progress to Date Schedule for Kickoff Meeting Contact Information 1 Web Meeting Kickoff Meeting Reviewing the Communications Plan Calendar and Milestones Q & A Session Communication End-of-week Reiterated Q & A Any weekend activities Summary of weeks activities Look ahead to next week s activities 2 Communication End-of-week Introduce UAT schedule Any weekend activities Summary of weeks activities Look ahead to next week s activities 3 Web Meeting UAT Meeting Demonstrate UAT process Review UAT schedule Q & A Session Communication End-of-week Reiterated Q & A Re-inforce UAT schedule Any weekend activities Summary of weeks activities Look ahead to next week s activities Week Type Content Audience 4 Announcement that UAT Begins UAT schedule Communication End-of-week UAT progress Any weekend activities Summary of weeks activities Look ahead to next week s activities 5 Web Meeting 6 Web Meeting Web Meeting UAT Progress Q & A Session Communication End-of-week Reiterate UAT Q & A Announce end of UAT Any weekend activities Summary of weeks activities Announcement of GO-LIVE Communication Go-Live Date Schedule Web Meeting GO-LIVE Approval Leadership Review Approval Communication of Approval Announcment of Go-Live Meeting Meeting Q & A Identify support call-lists

17 Pilot Programs Pilot Program Essential for success Results in an implementation with limited risk Needs a Focused Plan Detailing Estimated timeframes and participation Including milestones Identification of risks, mitigation steps and dependencies Roles and responsibilities for execution Transition plan at conclusion of Pilot Identification of KPIs for each objective and goal, which are designed to test: Identification of control points to be monitored

18 Organizational Dependicies Organizational Considerations Service Owner is the key Responsibility for daily care and feeding of the Service Empower ownership Responsible for continual improvement of the Services Primary stakeholder in all of the underlying IT processes that enable the Service Important to include Financial Management Empower Individuals Ownership ensures success with Services Clearly define organizational roles and responsibilities

19 Keys to Success and Takeaways Keys to Success Services are an IT Operational Model Not a tool implementation IT acceptance of the cost model is most challenging Work with the Financial team to develop a cost models Select low hanging fruit for the first Service Pilot Acknowledging differences between Requests and Services Determine the organizations process maturity

20 Thank You! Philip J Hellerman pjhmc2348@hotmail.com