Matthew Burrows

April 2012

Audience Questions

1. How many spanners?

2. What sizes?

3. Which manufacturer?

What do I care about most?

1. Do you install bathrooms?

2. Any customer references?

3. Experience & qualifications?

What do I care about most?

Suggested Approach

1. Identify Customers & other interested

parties

2. Appoint relationship manager

3. Establish communications and

engagement

4. Understand required outcomes

5. Define how outcomes will be achieved

6. Report; manage change; drive

continual improvement

Customers

Relationship Manager

Communications & Engagement

Outcomes

Services & SMS

Reporting; Change; Improvement

Identify Customers and

other interested parties

Who are our customers?

Who else has an interest?

1

CUSTOMERS

(AND OTHER INTERESTED PARTIES)

Other Interested Parties

OTHER

SERVICE

PROVIDERS

SERVICE PROVIDER

Contract

Service Requirements

Services

Se

rvic

es

User Organizations

Services

SUPPLIERS

(SERVICE

PROVIDERS)

& INTERNAL

GROUPS

Se

rvic

es

Customers

Core Relationships

Other interested parties

• Who are they?

• Executives / Management

• Internal groups

• Customers of our customers

• Users

• Shareholders

• Government

• Regulators

• Professional bodies

• Suppliers

Qualification

Before we waste time or money…….

• Do we want/need a relationship?

• What’s in it for you?

• What’s in it for them?

• Are we compatible?

• Can we help each other?

• Do we have a choice?

Appoint Relationship

Manager

Named individual responsible for managing the relationship and customer

satisfaction

2

What type of relationship?

‘til death us do part?

• Long, short or fixed term?

Forsaking all others?

• Exclusive or open?

In sickness and in health?

• While we get what we want?

Love or Lust?

First ‘law’ of interpersonal attraction

Relationships must be rewarding

Exchange Theory

• View feelings in terms of profits, i.e. amount of reward obtained

minus the cost. (Homans 1974)

• 2 kinds of intimate relationship (Mills and Cark 1980)

• Communal couple – concern for each other

• Exchange couple – mental record of who is ‘ahead’

Equity Theory

• Adds “investment” to reward, cost and profit

Scorekeeping mentality guarantees both will be dissatisfied

Suspicious, fearful, paranoid and insecure compared with giving

and trusting types (Murstein et al, 1977)

Earning the right relationship

Necessary Evil

Competent Supplier

Trusted Partner

‘cost to be minimised’

‘cost to be optimised’

‘cost and value in balance’

Establish

communications and

engagement Agree communications and engagement mechanism

Promote understand of business environment, and requirements

3

“The process responsible for maintaining a positive

relationship with customers. Business relationship

management identifies customer needs and ensures that the

service provider is able to meet these needs with a

appropriate catalogue of services. This process has strong

links with service level management.” ITIL 2011 Edition

•Main purpose: Capture demand in business/service context

a) BRM process identifies customer need/demand

b) Business strategy identifies business objectives

c) Continual Improvement opportunities fed in

Business relationship management

BUSINESS RELATIONSHIP MANAGEMENT

Service Strategy

Interacts with all other processes throughout the lifecycle – owning relationship with customers and business units

Continual Service ImprovementService OperationService TransitionService Design

Understand required

outcomes

Understand required outcomes (customers and other interested parties)

4

What do they need?

Need

Outcome? Before you define your journey, you need to know where you’re going and why

What is Service Management?

As a customer, I want…..

Service which works

I have expectations about…..

how good the service is

how long it will take

how much it costs

how well it meets my needs

Service Management makes it happen

Customers and Service Providers

Customer is interested in…..

Results of the service

That it helps achieve outcomes!

Service Providers need to know…..

required outcomes

which services we deliver

how well we have to do it

Service Management makes it happen

What is IT Service Management (ITSM)?

IT Service Management is…..

How we do end-to-end service, so

customers can achieve outcomes

Good IT Service Management is…..

everything we do –

services, people, process,

tools, data, ICT, partners

Service Management makes it happen

Understand each other

“Service: a means of delivering value to customers by

facilitating outcomes customers want to achieve without

the ownership of specific costs and risks.” ITIL 2011 Edition

SERVICE PROVIDER

SERVICE MANAGEMENT SYSTEM (SMS)

CUSTOMERS

(AND OTHER INTERESTED PARTIES)

Service Requirements

Services

Policies Objectives Plans

Processes Documentation Resources

Outcome?

Example: Service Portfolio

•Service Portfolio contains all

services

• pipeline, live & retired

•Service Contract details

services & options selected by

each business unit

• Agreed/forecasted quantity

• One contract for each BU

•Service Account Plan details

future demand and initiatives

• Volume forecasts, business

changes, projects, new

requirements

Create Service Contract from Catalog

SERVICE CONTRACT

Service Contract: What we deliver

TODAY

High-Level Process: • Business Relationship Manager works with their

Senior Customer contact • Use the Service Catalog, select services, options

and service levels • Discuss any gaps between offerings and

requirements • Document in the Service Contract

Main Body: Meeting Structure; Interfaces & Contacts; Escalation; Reports structure; Contract Change; Review Period; Approvals etc. Schedules: Sch1: Products List Sch2: Business Processes List Sch3: Business Process Services Sch4: Bespoke Services Sch5: End User Services Sch6: Contract KPIs Sch7: Support Hours Sch8: Business Criticality Sch9: Priority and Service Levels Sch10: Disaster Planning

SERVICE CATALOG

Service Catalog: What can be delivered

TODAY

Service Account Plan v Service Contract

SERVICE CONTRACT

Service Contract: What we deliver

TODAY

Service Account Plan: What we plan to deliver

TOMORROW

Contents: Account Structure Business stakeholders Business Forums Business Vision & Strategy Technology Vision & Strategy 12 – 18mth Product Roadmaps Customer communications Business & Technology Service Improvement Planning

Main Body: Meeting Structure; Interfaces & Contacts; Escalation; Reports structure; Contract Change; Review Period; Approvals etc. Schedules: Sch1: Products List Sch2: Business Processes List Sch3: Business Process Services Sch4: Bespoke Services Sch5: End User Services Sch6: Contract KPIs Sch7: Support Hours Sch8: Business Criticality Sch9: Priority and Service Levels Sch10: Disaster Planning

SERVICE ACCOUNT PLAN

Other interested parties

• Who are they?

• Regulators, professional bodies, suppliers; internal groups,

shareholders, etc.

• What are the objectives & outcomes?

• Improvement in Efficiency and Effectiveness?

• Cost reduction?

• Standardisation?

• Improvement in service quality?

• Greater maturity?

• Revenue protection or growth

Who does it give benefit to?

What are the benefits?

Define how you can help

achieve outcomes

Design Service Management System (SMS) and the Services which aim to meet

the requirements

Agree what you’re going to do and how you’re going to do it

Service Catalogue, Contracts/Agreements, SLAs

5

SERVICE PROVIDER

CUSTOMERS

(AND OTHER INTERESTED PARTIES)

Service Requirements

Services

Customer-centric service provider

Using a robust Service management system (SMS)

“management system to direct and control the service management activities of the service provider”

Note: A management system is a set of interrelated or interacting elements to establish policy and objectives and to achieve those objectives.

We are a Service provider

“organization or part of an organization that manages and delivers a service or services to the customer”

We do Service management

“set of capabilities and processes to direct and control the service provider’s activities and resources for the design, transition, delivery and improvement of services to fulfil the service requirements”

SERVICE PROVIDER

SERVICE MANAGEMENT SYSTEM (SMS)

CUSTOMERS

(AND OTHER INTERESTED PARTIES)

Service Requirements

Services

Policies Objectives Plans

Processes Documentation Resources

Definitions from ISO/IEC 20000-1:2011

Service Management System (SMS) Elements

SERVICE PROVIDER

SERVICE MANAGEMENT SYSTEM (SMS)

CUSTOMERS

(AND OTHER INTERESTED PARTIES)

Service Requirements

Services

POLICIES

PROCESSES

SMS GENERAL PROCESSES

DESIGN/TRANSITION PROCESSES

CONTROL PROCESSESSERVICE DELIVERY PROCESSES

Organizational Management

Management review

SMS establishment

and maintenance

Audit

Measurement

Improvement

Human resource

management

Risk Management

Information item

Management

Capacity management

Service continuity and

availability management

Service level management

Service reporting

Information security

management

Budgeting and accounting for

services

Configuration management

Change management

Release and deployment management

RESOLUTION PROCESSES

Incident and service request

management

Problem management

RELATIONSHIP PROCESSES

Business relationship management

Supplier management

Service transition

Service designService

requirements

Service planning and monitoring

RESOURCESDOCUMENTATION

OBJECTIVES PLANS

Customer

Portfolio

Contract

Portfolio

Service

Portfolio

Service

Catalogue

CMS

CMDBs

Project

Portfolio

Business Objectives

SM Scope, Policy &

Objectives

Suppliers

Information &

Communications

Technology (ICT)

Recordsetc.

Service Management

Plan

Outcome?

SERVICE PROVIDER

SERVICE MANAGEMENT SYSTEM (SMS)

Work Instructions

Procedures

Processes

Service

Management

Plan

Scope,

Policy &

Objectives

Owner: Top Management

Approval: Business Management

Owner: Management Representative

Approver: Top Management

Owner: Process Owners

Approver: Management Representative

Owner: Process Managers

Approver: Process Owners

Owner: Process Managers

Approver: Process Owners

Includes Service Management

Scope, Policy and Objectives

Contents include process

framework and all policies

Separate documents for

each process

Steps required for each

process

Local detailed working

instructions (where

required)

CUSTOMERS

(AND OTHER INTERESTED PARTIES)

Service Requirements

ServicesBusiness

Objectives

SMS Hierarchy

SM Scope, Policy &

Objectives

Service Management

Plan

Process Description

Procedures

Work Instructions

Outcome?

Example – process interactions

Service Level

Management

Process

Business

Relationship

Management

Process

Supplier

Management

Process

SLA Schedule

Customer

(BUs)

Service

Reporting

Process

Technology

RequirementsSupply Requirements

Undepinning ContractR

ep

ortin

g

Re

qu

irem

en

ts

Pe

rform

an

ce

Re

po

rt

Co

nso

lida

ted

Re

po

rt

Se

rvic

e C

on

tract &

Re

po

rting

Bu

sin

ess/S

erv

ice

Re

qu

irem

en

ts

Delivery and

Support

Processes

Se

rvic

e R

eq

uire

me

nts

Delivered Services

Op

era

tion

al L

eve

l

Ag

ree

me

nts

De

live

red

Se

rvic

es

Project/Programme

Initiation/Engagement

Programme &

Project

Management

Processes

Change

Management &

Release

Management

Processes

Reporting

Reporting

While creating the business case…..

Proposal Development

phase Project

Execution phase

Project Implementation

phase Benefits

Harvesting phase

Approval

Revised Processes & Products Delivered

Solution Implemented

Ben

efits

B

ene

fits

Needs

Needs

Ou

tco

me

s

Ou

tco

me

s

As soon as project is approved…..

Proposal Development

phase Project

Execution phase

Project Implementation

phase Benefits

Harvesting phase

Approval

Revised Processes & Products Delivered

Solution Implemented

Ben

efits

B

ene

fits

Needs

Needs

Ou

tco

me

s

Ou

tco

me

s

Service Design • Map key relationships

and dependencies

• Ensure common high-

level understanding

• Confirm all aspects

are covered

• Service

• Organization

• Process

• Data

• Application &

Integration

• Infrastructure

Service

CUSTOMERS

(AND OTHER INTERESTED PARTIES)

Service / Product / Business Process

SuppliersTeams

Infrastructure

Supporting

servicesOLAs

Supporting

services

Underpinning

contracts

SupplierSupport team

System H/W System S/WDatabase

managementNetworks ApplicationsDataEnvironment

Service

Components?

Service

Components?

Service

Components?

Service

Components?

Service

Components?SLAs

Components? Components? Components?

Outcome?

Service Components

SERVICE PROVIDER

SERVICE MANAGEMENT SYSTEM (SMS)

CUSTOMERS

(AND OTHER INTERESTED PARTIES)

Service Requirements

Services

SERVICE DESIGN

POLICIES

OBJECTIVES

PLANS

PROCESSES

DOCUMENTATION

RESOURCES

Business Objectives

Requirements

Utility:name, description,purpose, impact, contacts

Warranty:service levels, targets,service hours, assurance,

responsibilities

Assets/resources:systems, assets,

components

Assets/capabilities:processes, supporting

targets, resources

Assets/capabilities:resources, staffing, skills

Environment ApplicationsData

Supporting services

OLAs, contracts

Support teams

Service Management

processes

Policy, strategy, governance, compliance

SLAs/SLRsIncluding cost/

price

Suppliers

Service

Infrastructure

Service

Knowledge

Management

System

(SKMS)

Suppliers

Project

Portfolio

CMS

CMDBs

Service

Portfolio

Service

Catalogue

Contract

Portfolio

Customer

Portfolio

Report ; manage

change; drive continual

improvement Manage change (including requirements)

Proactively drive improvements

Measure satisfaction

Deal with complaints

6

PROJECT MANAGEMENT

ExecutePlan CloseInitiate

Monitor and Control

CHANGE MANAGEMENT

CoordinateAuthorize/RejectAssessRaise and

RecordReview Close

Configuration management

Release & deployment management

BUSINESS RELATIONSHIP MANAGEMENT

CUSTOMERS, BUSINESS UNITS, & OTHER INTERESTED PARTIES

BUSINESS PORTFOLIO MANAGEMENT

SERVICE LEVEL MANAGEMENT

PRE-PROJECT

1

2 3 4

5

6

7

Idea / Outline

Requirement

Change

Request

Business

Requirements

Specification

High Level

Design

Draft SLA

content

Detailed

Design

Approved

SLA

1 2 3 4 5 6 7

Relationship Breakdown: Duck 1982

1. Intra-psychic phase: Focus on partner’s behaviour; assess adequacy of partner’s role/performance; evaluate negative aspects of relationship; consider costs of withdrawal; assess positive aspects of alternatives.

2. Dyadic phase: Confront partner; negotiate ‘our relationship’ talks; attempt repair and reconciliation; assess joint cost of withdrawal or reduced intimacy.

3. Social phase: Negotiate post-dissolution state; initiate gossip/discussion with others; create face-saving & blame-placing stories.

4. Grave Dressing phase: ’Getting over’ activity; retrospective; post-mortem; public distribution of own version of break-up story.

Dissatisfaction with

relationship

Can’t stand it any more

INTRA-PSYCHIC PHASE

Justified in withdrawing

DYADIC PHASE

I mean it SOCIAL PHASE

It’s now inevitable

GRAVE DRESSING

PHASE

Common causes of relationship breakdown

Avoiding the common causes of relationship breakdown (Duck

1988)

• Ineptitude or lack of skills in self-expression

• One partner is often over-confident

• Rule-breaking

• Deception

• Tiredness, boredom, and lack of stimulation

• Relocation and difficulty of maintenance

• Conflict

What are the qualities of

a good relationship?

To keep your marriage brimming,

With love in the loving cup,

Whenever you're wrong, admit it;

Whenever you're right, shut up.

Ogden Nash

Principles for IT Service Providers - example

• Maximise business value from technology spend

• Deliver services with maximum efficiency, quality and

certainty in balance with business needs

• Forge genuine partnership with business colleagues,

customers and suppliers

• Develop technology innovation as a competitive

differentiator

• Motivate and develop business/technology

professionals in value added roles

“Service: a means of delivering value to customers by facilitating outcomes

customers want to achieve without the ownership of specific costs and risks.” ITIL

2011 Edition

Suggested Approach

1. Identify Customers & other interested

parties

2. Appoint relationship manager

3. Establish communications and

engagement

4. Understand required outcomes

5. Define how outcomes will be achieved

6. Report; manage change; drive

continual improvement

Customers

Relationship Manager

Communications & Engagement

Outcomes

Services & SMS

Reporting; Change; Improvement

What is ISO/IEC 20000?

• International Standard for IT Service Management

(ITSM)

• Was originally British Standard BS15000, developed

in the 1990’s

• 2005 version replaced by 2011 version

• Certification shows you have met the minimum

requirements for effective ITSM

Value of ISO20k

Independent verification of good ITSM

• Impartial auditing – by a Registered Certification Body

(RCB)

• ‘Prove it to retain it’ – regular audits

Promotes business alignment

• You have to demonstrate how you meet business needs

• Requires Business Relationship Management (BRM)

Improves quality of services & efficiency of organisation

Increasingly contractually required by customers

Structure of ISO/IEC 20000

ISO/IEC 20000-1:2011 Service Management System

Requirements

• The standard itself – “shall” – what you have to comply with

ISO/IEC 20000-2:2012 Code of Practice

• Guidance on how to meet requirements – “should”

ISO/IEC 20000-3:2009 Scope Definition and Applicability

ISO/IEC 20000-4:2010 Process Reference Model

ISO/IEC 20000-5:2010 Exemplar Implementation Plan

What is SFIA?

• Skills Framework for the Information Age (SFIA) is an effective,

practical tool produced by the industry for the industry

• SFIA can underpin the approach to IT professionalism in your

organisation, as it does in many organisations around the

world, including the UK Government

• SFIA provides the most widely accepted description of IT skills,

across 7 levels of attainment – from new entrant to director

• The SFIA Foundation accredits consultants and partners, and

provides training

• Find out more online: www.sfia.org.uk

SFIA now

• V5 released December 2011

• Jobs being advertised using

SFIA

• Training being aligned to SFIA

• Available in multiple languages

and used globally

• Credentialing, Mentoring &

CPD being aligned