Using assessment & benchmarking techniques as a strategic approach to drive Continual Service Improvement
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1 Using assessment & benchmarking techniques as a strategic approach to drive Continual Service Improvement Ian MacDonald Function Leader, Group Technology Co-operative Group IT
2 Session Outline What you should get out of this session:- The commercial reasons for continued assessment and benchmarking. Gaining an IT Context on the importance of providing value for Money IT Services. A framework you can adopt in driving Continual Improvement. The methods and approaches that support assessment. How to use the results from assessments Some examples of how these have been applied and benefits gained Lessons learned
3 Speaker Profile IT ROLES INDUSTRY BODIES PUBLICATIONS Computer Operations Technical Support IT Trainer Systems Programming Availability Manager Service Management Infrastructure Management Service Operations Continual Service Improvement Share Europe Guide UK Guide Share Europe UK Availability Think Tank ITSMF OGC PRSM BCS ITSMF Service Talk Conference papers ITIL V2 QA ITIL V2 Author (Availability Management) ITIL V3 QA (CSI) ITSMF Case Studies
4 Assessment & Benchmarking The ability to continually assess and benchmark your overall IT capability will play an important role in helping you to demonstrate and evidence your commitment to Continual Service Improvement (CSI). The greatest value derived from Assessment and Benchmarking is when it is positioned as an integral part of the IT organisations strategic intent to continually improve the capability of the IT organisation and its people to deliver improved services to its business customers. Assessment and Benchmarking is not viewed as a one off exercise or point in time activity but an ongoing commitment that provides the focus, direction and guidance that drives Continual Service Improvement across the IT organisation.
5 Assessment & Benchmarking A Commercial Perspective (1) Good..who says so? Facing reality sounds simple - but it isn't. Selfdelusion can grip an entire organization and lead the people in it to ridiculous conclusions. Jack Welch (b. 1935) Retired CEO of GE In the competitive marketplace and commercial world in which we operate, the IT organisation can no longer get away with simply believing that it is good at what it does. Thinking you are good is now no longer good enough!
6 Assessment & Benchmarking A Commercial Perspective (2) Continual Service Improvement The Software The Hardware The Premises The Staff Total Customer Cost Value For Money Our Products Our Services Our People Our Image Total Customer Value This model provides useful insight and thinking. The business will recognise Cost which is tangible. Value is a feeling or perception which needs to be positively influenced. This is where assessment and benchmarking can play a significant role in positively influencing Value and driving Continual Service Improvement to maintain the momentum
7 Assessment & Benchmarking Strategic Framework What is the vision? Establish a compelling sense of purpose (Vision, Mission, and Core Capabilities) for the IT organisation that embraces the customer, service and value for money as desired outcomes. Where are we now? Develop an approach to use assessment and benchmarking techniques to establish the baseline measures across the areas that are critical to achieving your Vision How do we keep the momentum going? Where do we want to be? Define the measures, targets and end states that you need to attain in achieving the Vision. How do we get there? Use the outputs from your assessments and benchmarking to identify the gaps. Define the roadmap and supporting initiatives and objectives to drive the organisation forward. Did we get there? Repeat your assessments and benchmarking to compare results with the original baseline measures to verify demonstrable improvements.
8 The Organisational SATNAV Where do we want to be? How do we get there? Before you start any Journey You need to know where you are going Why you are going there Where you start The distance (Gap) that you need to cover Where are we now? The route you need to follow
9 Make it Compelling Creating a Sense of Purpose Business Leaders Gartner Company Vision Vision Statement Mission Statement Creating a Sense of Purpose Core Capabilities Industry & Marketplace Company Mission The Motto Brand Strapline Colleagues Establish a compelling sense of purpose (Vision, Mission, and Core Capabilities) for the IT organisation that embraces the customer, service and value for money as desired outcomes.
10 Supporting the customer experience 24 hours a day Our Core Capabilities Operational Stability Outcome: - Our IT and business services are characterised as being secure with minimal failures and rapid recovery. We carefully manage the introduction of changes to the IT Infrastructure to ensure these are applied successfully to avoid disruption to our colleagues and customers. Technology Change Outcome: - We maintain the IT infrastructure and continually enhance our processes and working practices to provide an agile and flexible response to accommodate changing business needs. We work proactively with our business colleagues to ensure technology is fit for purpose and supports their business needs. Compliance and Security Operational Excellence Our Vision Outcome: - We invest in our people to develop our skills and expertise to keep our To be the knowledge trusted and valued forward looking risks and deliver stimulate the plans to innovative mitigate and eliminate thinking. legacy We risks. benchmark our business partner performance the delivery and of capabilities Customer Insight to understand how we compare with industry best quality IT Services practice and exploit this learning so we can deliver greater value to our colleagues and customers. Outcome:- Our IT and business services comply with IT security policy and standards to ensure the Co-Operative Banking Group can meet its legal and regulatory obligations. We proactively identity and address control weaknesses and embrace audits as an opportunity to improve. We ensure the effective control of operational Outcome: - We understand how our IT Services support the business and contribute to a positive customer experience. We consistently do the right things well and embrace continuous improvement to make the changes that provide tangible benefits to our colleagues and customers. Our Mission To consistently exceed the service expectations of our customers and to exploit our insight, knowledge and expertise to deliver value for money IT Services Operational Excellence Outcome: - We invest in our people to develop our skills and expertise to keep our knowledge forward looking and stimulate innovative thinking. We benchmark our performance and capabilities to understand how we compare with industry best practice and exploit this learning so we can deliver greater value to our colleagues and customers. Commerciality Outcome: - We understand the difference between cost and value. We think and behave like a commercial IT services company to ensure we can differentiate our services from those of our competitors in the marketplace. We promote our successes and achievements in order to demonstrate to our colleagues and customers the Value for Money we provide. Supplier Management Outcome: - We work with our suppliers to ensure they understand our business and consistently meet the service requirements of our customers. We recognise their strengths and we work in partnership to harness our combined capability to deliver greater value for our colleagues and customers.
11 Assessment & Benchmarking Methods Self Assessment Self Assessment Is performed using a structured questionnaire. Once completed the responses are assessed against a recognised industry maturity model or standard to provide a score or rating. Certification Certification verifies the organisations compliance to a recognised standard and includes a formal audit by an independent and accredited body. Benchmarking Benchmarking is the process of measuring the quality, time and cost of organisational activities and comparing these results against best practices and/or peer group organisations. Awards An award is something given to individuals, teams or organisations to recognise excellence in a certain field.
12 Assessment & Benchmarking Our Scope and Approach Capability Reference/Maturity Model Self assessment Bench-marking Certification Provider Date Completed Application Support & Maintenance Desktop (Britannia estate) Infrastructure & Operations Management Gartner Benchmarking Model with Gartner September Peer Group Analysis 2011 Gartner Benchmarking Model with Gartner September Peer Group Analysis 2011 Gartner I&O Maturity Model Gartner March 2011 ITIL Processes IT Security (Online Banking Channels) OGC Process Maturity Model and ITIL best practice Office of Government Commerce ISO27001 Standard British Standards Institute (BSI) Q March and September 2011 IT Security ISO Standard KPMG May 2011 Mainframe (Run) Gartner Benchmarking Model with Peer Group Analysis Gartner September 2011 Service Desk SDI Service Desk Maturity Model Service Desk Institute November 2011 Service Desk Storage Unix (Run) Wintel Gartner Benchmarking Model with Gartner September Peer Group Analysis 2011 Gartner Benchmarking Model with Gartner September Peer Group Analysis 2011 Gartner Benchmarking Model with Gartner September Peer Group Analysis 2011 Gartner Benchmarking Model with Gartner September Peer Group Analysis 2011
13 Example:- Self Assessment (ITIL Process Model) ITIL Process: Change Management Process Goal:- To ensure that standardised methods and procedures are used for efficient and prompt handling of all changes in order to minimise the impact of Change related incidents upon service quality, and consequently to improve the day-to-day operations of the organisation Process Management Assessment Customer Perspective G A G A A Process Owner assigned Process Management fully established Core Process Documented End-End Process Documented Process Measured 3.4 R Process Optimised Process Maturity Self Assessment Customer Interface External Integration Management Information Quality Control Products Internal Integration Process Capability Management Intent Pre Requisites OGC target score to achieve capable process Self-Assessment scores for process 4 from 9 Indicators meet or exceed OGC maturity targets ITIL Gap Analysis 1. The Change process can be bypassed. This is a significant key controls issue. 2. The scope of current Change Management policies is limited. ITIL provides guidance on additional and more stringent policies to improve the success rate of change and reduce downtime. 3. The CFS change categories are not aligned to ITIL. Common terminology becomes more important as the process encompasses 3 rd parties and the interfaces to Release Management are further developed. 4. ITIL assigns a priority to changes raised. Priority is not used within CFS. 5. Implemented changes are not confirmed by the change raiser as completed. Changes are automatically closed 48hrs after their scheduled implementation. 6. The documented process does not denote Change Authorisation and make the necessary differentiation between approval (interested parties) and authorisation (CAB, Change Manager). Policy change is required. 7. There is no policy defined (In Incident Mgmt or Change Mgmt) for the delegation of change authorisation in emergency situations and the criteria and supporting procedures to mobilise an emergency CAB (CAB/EC). 8. ITIL recommends the use of a Change Model(s) to allow the pre-authorisation of standard changes (Low risk, well understood, proven). This encourages use of the Change Management system but without the overhead and rigour applied to normal changes. Change Models are not used by CFS (This could help with issue 1). 9. The measurement for Change success is based upon compliance with the process rather than quality of change and its implementation. 10. There are gaps in the range of Metrics and KPI s produced or reported. eg reporting to differentiate between Late and Emergency change is not detailed in the OPRM.
14 Example:- Certification (Service Desk Institute ) Key Performance Results Service Desk Certification Final Score Star Rating 3.59
15 Example:- Benchmarking (Internal IT Services) Measure Peer Group Avg ITOPS + Service Desk Number of FTE personnel Costs per FTE Number of contacts per FTE Cost per contact Avg contacts per user First time fix rate Average Agent Talk Time per call Mainframe Number of FTE personnel Costs per FTE Costs per MIP Number of MIPS per FTE Mainframe Availability (Bank Platform) UNIX Number of FTE personnel Costs per FTE Measure Peer Group Avg ITOPS + Application Support (Excludes Steria) Number of FTE personnel Costs per FTE Number of Applications per FTE Costs per supported application Wintel (Excludes SCC) Number of FTE personnel Costs per FTE Number of OS instances per FTE Cost per OS Instance Desktop (Excludes SCC) Number of FTE personnel Costs per FTE Number of devices per FTE Cost per device Number of OS instances per FTE Cost per OS Instance Storage Number of FTE personnel Indicates where CBG compares favourably against the selected Peer Group Costs per FTE Number of installed TB per FTE Cost per installed TB
16 Example:- Awards (Industry Recognition) 2011 BCM Awards Winner - International Best Practice Submission of the Year 2010 Operational Team Of The Year
17 Using the Results What is the vision? Self Assessment Results and identified gaps Benchmarking results and identified areas of inefficiency Certification and target levels Where are we now? How do we keep the momentum going? Where do we want to be? How do we get there? Operational Planning Define department/team objectives Define new or revised KPI s and measures Assign accountability and ownership Did we get there? Review KPI s and measures Plan for repeat Assessment and Benchmarking exercises Promote your successes (Internal and External)
18 Example:- Using Self Assessment Score IT SCORE Self Assessment Results Input to Operational Planning Areas for Improvement GAPS Deploy and adopt industry best practices at every opportunity Implement process management Establish IT service ownership Improve systems monitoring and tooling integration Improve Asset & Configuration Management Establish Business and Service capacity management Drive greater virtualisation of the infrastructure estate Centralise functions where appropriate Push greater Service Desk Self Service capability out to business areas Focus reward and recognition on staff who build robustness into processes and infrastructure Develop succession planning for key roles Develop measures that demonstrate business value Target for 2013 Proactive Level 3
19 Benefits Gained Some examples of how assessment and benchmarking has driven business improvement:- Increased ITIL Process maturity and process outcomes Process Ownership established driver for ongoing CSI New and revised measures established set against industry acknowledged targets Certified Service Desk (Customer Led certification) driving ongoing customer focus Capacity Management now delivering E-E service capacity plans Enhanced customer satisfaction (Business recognising change in IT operations) Enabled us the share with the business how our IT Services compare (Cost and Efficiency) with our peer group Reaffirms that in many cases we are doing the right things Drives our Operational planning (provides insight, guidance and direction) Directly influences strategic direction Greater pride within the IT workplace
20 Lessons Learned
21 A Final Thought:- The Importance of Image If you don t fly the flag yourself, nobody will do it for you! Continual Service Improvement The Software The Hardware The Premises The Staff Total Customer Cost Value For Money Our Products Our Services Our People Our Image Total Customer Value Don t let your successes and achievements become a missed opportunity to promote the professional standing of IT and its people
22 ANY QUESTIONS
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