introduction to usmbok-2010

COPYRIGHT © 1996-‐2009 VKSII

Ian Clayton Principal Service Management 101 LLC

IntroducGon to the Universal Service Management Body of Knowledge (USMBOK™)

An overview of a universally applicable ‘body of knowledge’ for the design, development and operaGon of service management systems and service provider organizaGons.

Support site: www.sm101-‐support.com

Email: [email protected]


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Topics

  The service age, and the relaGonship between a product, a service, and service management

  IntroducGon to a ‘body of knowledge’   ExploraGon of the Universal Service Management Body of Knowledge

(USMBOK™)

  The service management system   20+ elements, 15-‐stage service lifecycle

  The service provider organizaGon   Knowledge domains (roles) & Knowledge areas (competencies)

  The service management qualificaGon scheme

  Sneak peek at the upcoming online best pracGce statement library.


The Service Age

  Changes offered by new technologies have led to global service based economies -‐ we are in the ‘service age’

  Service operaGons now comprise more than 80% of the Gross DomesGc Product (GDP) of major countries such as the United States and it is esGmated 85% of US workforce is in services

  Its common to have only 20% of product prices driven by direct manufacturing labor

  The remaining 80% are costs associated with the design, support, and general operaGons of services

  Work that adds no value (as viewed by the customer), typically comprises 50% of total service costs.


Principles of the Service Economy

  Customers are in control

  Customer outcomes count most

  Value is measured from customer outcome perspecGve

  Best performance metrics and measures are customer relevant   Customers don’t necessarily value concepts such as service management or

process improvement you are able to associate it to beneficial impact on how they how they achieve their desired results, or their cost

  We have entered the ‘experien4al economy’, where the customer’s interacGon and overall experience using products and services is the paramount concern

  RespecGng and managing the customer experience (encountering and using the service) is at the core of customer saGsfacGon.


The Management ImperaGve “Address One of My Problems!”

  Today's economic climate is causing management to Gghten budgets and re-‐prioriGze projects

  It is acGng as an accelerant for management expectaGons of the benefits from invesGng in a service management iniGaGve

  All investments are subject to greater scruGny, with projects being reprioriGzed and non-‐performers shelved, or abandoned, perhaps permanently

  IniGaGves must complete and deliver on their promise, or a specific subset of deliverables, within a 30, 60, or 90-‐day period and have customer relevance.


What is a “Service”?

  A service is any act, deed or performance that one party or person can offer to another – (now a legal definiGon), a transac4on

  The value of a service to the customer is through the results it helps them achieve by its use

  The importance of the service to the provider is through:   The sa4sfac4on it provides the customer in achieving their desired results, also

termed (successful customer outcomes)   The consequences of the saGsfacGon, including loyalty, brand recogniGon,

differenGaGon, up sell opportuniGes, and referencibility   The revenue it generates for the provider compared with the cost of fulfillment

  All services are products and subject to the goods-‐service con4nuum.


  A means of typifying a product and determining the ‘people’ element

  At the pure goods end of the conGnuum the product is the more tangible item

  At the service end the service aspect is more dominant   InformaGon system services span the enGre conGnuum, providing logisGcal support

to the sale of products as well as enabling customer results through use of a service.

The Goods-‐Service ConGnuum

Source: USMBOK

Food

Clothing

Jewelry

House

Automobile

Television

Restaurant

Auto Repair

VacaGon

EducaGon

Legal Advice

DenGst

Healthcare

TANGIBLE Goods-‐dominant

Products

INTANGIBLE Service-‐dominant

Products


What is “Service Management”?

  Service management is a systema4c method for managing the provision of services to customers at a known quality and cost

  Service management ensures the desired results and customer sa4sfac4on levels are achieved cost effecGvely

  Service management is a means by which the customer experience and interac4on with our products and services is managed

  Service management is also a transforma4on method for any organizaGon that wishes to operate as a service provider organizaGon

  The origin of service management is in product management

  Service management concepts and methods are universally applicable to any industry, including informaGon technology (IT).


Service Management requires…

  The adopGon of a service perspec4ve to the planning of product offerings and allocaGon of resources

  The embedding of a service subscrip4on, consumpGon and provision logic in the management approach

  A focus on the desired customer rela4onship and successful customer outcomes required by customers – thinking ‘outside-‐in’

  A commitment to being operated and managed as a ‘service (provider) organizaGon’

  A matching of the quality of service, and its cost of provision, to customer requirements, objecGves and the outcomes

  Understanding points from which service can be accessed, managing the ‘service encounter’, and designing how services are supported

  A system and organizaGon for the fulfillment of ‘service requests’.


IT Service Management (ITSM)

  ITSM is the term commonly used to describe the effort of transforming an IT organizaGon from one focused on managing the IT infrastructure, to also managing the provision of informaGon systems as services

  The startling and inconvenient truth about tradiGonal IT Service Management projects – they fail the sponsoring organiza4on and customer

  Why, because most ITSM projects are ‘inside-‐out’.

  Inside-‐out thinking means they target benefit in the form of improved internal pracGces, starGng and ouen staying, with a process, technology, or a best pracGce focus

  They require a considerable up front and sustained investment before benefits are returned, they likely never return a tangible customer benefit

  They are complex, harder to conGnuously improve, suffer from inadequate communicaGon, and lack key stakeholder support.


What is a ‘Body of Knowledge’?

  A ‘Body of Knowledge’ or BOK is a repository of informaGon containing the sum (known) total of all documented expert knowledge of a profession

  It codifies the knowledge, posiGons its relevance to other BOKS, and provides a pragma4c framework for its use

  It defines what we know and what we do with that knowledge, the core competencies shared by the profession

  It helps us determine what to teach, how to hire, and how to posiGon the profession overall within an industry

  It conGnues to evolve as the profession evolves through open dialog and representaGon and is a ‘living’ reference for the professional.


Body of Knowledge Building Blocks

  A BOK should include the following key elements:   A published ‘Guide’ to the BOK, its goals, scope and content   A ‘Lexicon’ or glossary of key concepts and terms   A website that provides a general overview that encourages and enables

discussion within the professional community served   A specificaGon for a study program and qualificaGon scheme   A readily available library of ‘best prac4ce’ statements

  The general architecture of a body of knowledge (BOK) should be inclusive, open and extensible and allow conGnuous development of the BOK using transparent governance methods and be representaGve of the professional community it serves.


What is Universal Service Management?

  Service management has been a long-‐standing subset of product management

  Service management as a concept and management approach predates this recent use by IT organizaGons

  Recently the concept of ‘IT service management’ has been associated with the transforma4on of an IT organizaGon

  Universal service management recognizes the heritage of both the ITSM and product management sources and promotes their combined methods and concepts as a universally applicable framework for any type of service organizaGon.


What is the USMBOK?

  The USMBOK defines service management as a systemaGc method for managing the provision of services to customers at a known quality and cost, to achieve their successful customer outcomes, its elements include:   The business planning & performance management frameworks

  The enterprise, customer and service models

  The 15 stages of a service lifecycle

  The policy management framework

  The governance framework

  The service transacGon engine

  And nine supporGng lifecycles that include: request, requirement, quality, asset, revision, change, release, event, and support

  It recognizes the heritage of both the ITSM and product management sources and promotes their combined methods and concepts as a universally applicable framework for any type of service organizaGon.


The Guide to the USMBOK PublicaGon

  The foremost responsibility of a service management professional is to understand the working elements of a service management system and service organizaGon, and how they interoperate to manage the customer experience and produce successful customer outcomes

  The Guide to the USMBOK provides a singular, coherent and comprehensive blueprint, and vital reference to help the service management professional in successfully achieving this responsibility

  The USMBOK also describes in outside-‐in thinking terms (customer interest first), service management as a means by which the customer experience and interacGon with products and services is managed, and design of service encounters, moments of truth, and the customer and service request pathways

  For the provider organizaGon, the Guide respects Lean Thinking and offers a conGnuous improvement approach within service management, acGng as a transformaGon method for any organizaGon that wishes to operate as a customer centric service organizaGon.


Service Management Related Knowledge Areas

  Much of the knowledge, tools , techniques and methods used for managing service are unique to service management

  A number of generally related ‘knowledge areas’ are required to ensure a successful strategy and operaGon

  It is unlikely any single person will have all the knowledge and skills required

  Key addiGonal areas include:   Standards & regulaGons   Related bodies of knowledge   Environment specific knowledge

  Leadership skills   Inter-‐personal skills.

Source: USMBOK


Two Fundamental Service Management EquaGons

Needs & Wants Expressed as Requirements

Capabilities Expressed as Offerings EXPECTATION =

Results Produced + Quality of Service

Price + Cost of Acquiring Service

VALUE =


What is a Service Management System?

  The service management system represents all the operaGonal and administraGve elements required by a service organizaGon to respond to market opportuniGes and customer needs

  The system’s purpose is to enable the cost effecGve design, development, offering, contracGng, provisioning and support of quality assured services to targeted customer communiGes

  The goal of a service management iniGaGve is to establish and sustain a service management system that is customer relevant

  The journey to a service management system requires the transformaGon of an organizaGon and adaptaGon of ‘best prac4ces’.


The Service Management System


Service Management System Fundamentals

  The service management system should answer a number of quesGon:   How the service provider decides which customer communiGes to serve

  What governance will be used to ensure the voices of the customer, provider and regulators is heard, and documented properly as service requirements

  How services will be marketed to each community

  How an exisGng or prospecGve customer can request service

  How requests for service are fulfilled

  How the design, development and provision of services is funded

  What key roles are required to manage the provision of service

  How performance will be measured and managed from a results achieved, and saGsfacGon level perspecGve

  How the service provider plans will be aligned with those of customer   What transformaGon method will be used and how will the provider

conGnuously improve.


  The Enterprise Model, a single descripGon of the vital locaGons, organizaGonal units, roles, persons and mandated regulaGons

  The Customer Model, one or more descripGons of the business environment, markets, compeGtors and customer communiGes

  The Service Model, one or more descripGons of how the service provider will service each Customer Model

  Alignment is achieved by the synchronizaGon of these three operaGonal models.

The Alignment Models


  The framework provides a common planning approach referenced by both the customer and service provider

  The framework includes:   Vision/philosophy   Value statements   Mission/Charter statements   SituaGon/Status analysis   ObjecGves/Goals   Strategies   TacGcs

  The framework is consistent with common strategic planning and business planning good pracGces.

The Business Planning Framework (BPF)


The Performance Management Framework (PMF)

  The framework provides a consistent method of establishing and measuring progress against the objecGves set in the business planning framework

  The framework spans seven major performance measures:   Key result area   Key performance indicator   Key performance target   Vital mission acGvity   Service level objecGve   Service level indicator   Service infrastructure event   Rule of thumb

  The framework integrates customer and service provider performance management systems.


The Enabling Lifecycles

  Nine stand-‐alone lifecycles are engaged as required to enable the overall service lifecycle:   Request

  Requirement   Asset   Quality   Revision (service/product)   Change   Release

  Support   Event

  When and how each enabling lifecycle is uGlized is subject to operaGonal rules (policies) defined within the governance framework.

Request Lifecycle

Quality Lifecycle

Revision Lifecycle

Change Lifecycle

Release Lifecycle

Event Lifecycle

Requirement Lifecycle

Asset Lifecycle

Support Lifecycle


The Policy Management Framework

  Policy-‐based management is an administraGve approach that is used to simplify the management of a given endeavor by establishing policies to deal with situaGons that are likely to occur

  Policies are operaGng rules that can be referred to as a means of maintaining order, security, consistency, or other ways of successfully furthering a goal or mission and defined at a minimum of least three levels:   Global, mandatory use as defined across enterprise

  Regional, relevant to geographic region (country, state, industry sector)

  Local, specific to locaGon, group or role.


Service Request: The Key Input to Service System

  Improvement statement is a aggregaGon of:   Customer oriented needs   Non-‐customer needs   Idea generaGon

  Catalog-‐driven service enquiries from official ‘service access points’ by authorized persons

  Problem statement developed from:   Service incident records

  All inputs are consolidated into a common service request format as the primary and singular input to the Service Lifecycle.

Improvement Statement

Service Request

Customer Interview

Problem Statement

Service Incidents

Service Catalog

Idea GeneraGon

• New Technology • DerivaGve Technology • Incremental Service Improvement • DerivaGve Market

Non-‐Customer Oriented Needs

Customer Oriented Needs and Wants

Service Lifecycle or Service TransacGon Engine


The Service Lifecycle

  The lifecycle spans customer subscripGon to un-‐subscripGon, and service opportunity to reGrement

  The service lifecycle is placed at the core of the service provider organizaGon operaGons

  The lifecycle has fiueen discrete but consecuGve stages that start with a service request

  The lifecycle has two major elemental lifecycles, the provision lifecycle (from opportunity to commission), and operaGons (from producGon-‐status operaGon to reGrement).

Opportunity

Require

Define

Plan

Concept

Approve

Design

Develop

Assure

Deploy

Commission

Operate

Maintain

Revise

ReGre

Provision

Operate


The Service TransacGon Engine (STE)

  The service transac4on is at the core of the service experience and represented by service requests

  Service requests are processed by transacGon processing applicaGons

  The service transacGon engine (STE) represents the real-‐Gme use of system services and applicaGon-‐based transacGon processing

  The vast majority of service requests are successfully processed

  Issues with processing can result in engagement of the event, service support and other enabling lifecycles.

Post TransacGon

TransacGon Pre

TransacGon

The basis of a quality-‐based customer saGsfacGon survey


The Governance Framework

  The governance framework provides the opera4onal rules by which the overall elements of the USMBOK inter-‐operate spanning four key levels

  The framework is subject to regula4ons (compliance) defined within the Enterprise Model

  The framework defines the scope of each USMBOK element and how it is used within a service provider organizaGon

  Specifically, the framework defines how each knowledge domain and area is involved in decisions to provision, operate, support and manage each service.

Corporate

Provider

Service

OperaGonal


The Service (Provider) OrganizaGon

  An organizaGonal element of the service management system that offers, contracts, and provides or delivers an instance of a service to a customer

  A service organizaGon contains key responsibiliGes that span the customer-‐infrastructure role con4nuum

  The concept is applicable to any IT organizaGon with the mission of delivering informaGon systems as a service to the enterprise and customer communiGes.


The Role ConGnuum

  Represents the specialized roles required to operate and manage a service organizaGon, spanning the customer and infrastructure facing roles

  Mandatory role taxonomy input to a governance framework

  Provides context for applicaGon and ownership of operaGonal policies, procedures, and ‘best pracGces’

Custom

er

Facing Service

Infrastructure Facing

RelaGonship Requirement Responsibility RegulaGons

Order Fulfillment MarkeGng Opportunity Partnering

Quality Performance Excellence

Back Office Delivery

OperaGons and

Support

Infrastructure and

Materials Management


The Role ConGnuum


Knowledge Domains (Roles)

  Seven major roles, represent key responsibiliGes found within a service provider organizaGon, including:   Service Customer Management

  Service Fulfillment Management

  Service Quality Management

  Service Delivery Management   Service OperaGons Management

  Service Infrastructure Management

  Service Value Management

  Each role has ‘knowledge areas’ represenGng mulGple skills or competencies with ‘knowledge, skills and abiliGes’.


Knowledge Areas (Competencies)

  The USMBOK contains 40 knowledge areas, corresponding to major competency (pracGce)

  Each knowledge area leverages exisGng informaGon references and in some cases credenGal programs

  Supports skill-‐path, role-‐based curriculum

  Leverages proven and universally applicable service industry methods.

Source: USMBOK


The natural tendency of organizaGons to think ‘Inside-‐Out’

  Firstly, it’s a natural tendency and common for most organizaGons to look inward at what work they do – to think inside-‐out

  Inside-‐out thinking places a greater emphasis, someGmes total, on how the work is performed, its efficiency, producGvity, and the product quality

  This is especially true if the organizaGon is detached or insulated from its end customers, a monopoly, the economy is healthy, and the operaGonal environment stable

  Unfortunately, ‘inside-‐out’ thinking is commonly associated with a failure to think customer, to understand why the work is performed, and to fail to associate the benefits of a project or iniGaGve with customer results and saGsfacGon levels

  Most IT Service Management iniGaGves are ‘inside-‐out’.


The Basis of Outside-‐In Thinking – Customer First!

  The customer, and customer experiences ma`er most because quality goods and customer saGsfacGon are commodiGzed

  Customer loyalty lowers costs and is increasingly necessary to be compeGGve. The best way to drive loyalty is to create consistently compelling and authenGc experiences for the customer

  To design these experiences, we need a new skill set, a new way of understanding people, and of understanding our customers

  We must observe people in their own habitat to understand their behavior, how they think and act, and what moGvates them to behave in certain ways

  This understanding enables us to design things that are meaningful and valuable to people, helping them achieve their desired results, outcomes

  We must not start by designing products and internal processes, and start designing experiences. We must design services from the outside in.


The Outside-‐In, Inside-‐Out (OI-‐IO) ConGnuum™

  Represents the span of centricity and transformaGon journey of a prospecGve service organizaGon

  Provides context for a transformaGon journey driven by a conGnuous improvement program

Custom

er

Centricity

Infrastructure Centricity

Customer Experience

SaGsfacGon

Loyalty

Advocacy

Stakeholder Scenarios

InteracGon

Touchpoints

Successful Outcomes

Service Request

Service Encounter

Moments of Truth

Business/IT Alignment

Service

Product

Brand

Standard Work

Best PracGce

Process

Capability

Maturity

Infrastructure and

Materials Management


The Outside-‐In (OI) Inside-‐Out (IO) ConGnuum™

Source: Outside-‐In Service Management™, © 2009 Ian Clayton

CommodiGes Goods Service Experience


The Service Management QualificaGon Scheme (SMQS)

  Peer-‐based (not hierarchical) credenGal scheme focused on the ROLES and COMPETENCIES required to successfully operate and manage a service provider organizaGon

  Spans and leverages a universal, holisGc view of service management

  Deliberately developed to be compliant with the ANSI/ISO/IEC 17024 InternaGonal Standard for accreditaGon agencies

  Includes three-‐year con4nuing educa4on cycle based upon a combinaGon of work experience and educaGon history

  Offered and managed by the non-‐profit organizaGon, the Service Management Society (h`p://www.sm-‐s.org).


SMQS: Personal CredenGals

  CerGfied Service Management Professional (CSMP)™   CerGfied Lean Service Professional (CLSP)™   Cer4fied Associate in Service Management (CASM)™   Cer4fied in Service Management Fundamentals (CSMF)™   Cer4fied Sustainable Opera4ons Professional (CSOP)™   CerGfied Knowledge Domain based ‘roles’:

  Cer4fied Service Customer Manager (CSCM)™   Cer4fied Service Fulfillment Manager (CSFM)™   Cer4fied Service Quality Manager (CSQM)™   Cer4fied Service Delivery Manager (CSDM)™   Cer4fied Service Opera4ons Manager (CSOM)™   Cer4fied Service Infrastructure Manager (CSIM)™   Cer4fied Service Value Manager (CSVM)™.


Summary

  Service management is a systema4c method for managing the provision of services to customers based upon a known quality, cost, desired results, and customer sa4sfac4on levels.

  Service management, born out of product management, describes concepts and strategies useful as a transforma4on method for any organizaGon intending to change and operate as a service provider, including an informaGon technology (IT) organizaGon.

  The Universal Service Management Body of Knowledge (USMBOK) organizes, disGlls and provides ready access to a core body of knowledge for service management that can be universally applied within any service industry and service provider organizaGon.


The Guide to the USMBOK PublicaGon

  By a`ending this webinar you receive a $75 discount off the list price of the Guide to USMBOK book

  The Guide is a ‘Rose`a Stone’ for service management, codifying and connecGng:

  Universally applicable concepts and methods for any service management iniGaGve

  Elements of a service management system

  Key roles in a service organizaGon

  Your promoGon code is ‘GUIDE75’   A companion publicaGon is the

USMBOK Lexicon.


Ian Clayton Principal Service Management 101 LLC

INTRODUCTION TO THE USMBOK™ SERVICE MANAGEMENT 101 SERIES

Thank You.

Any quesGons?

[email protected]

www.sm101-‐support.com For more informaGon please visit: www.servicemanagement101.net

Universal Service Management Body of Knowledge: www.usmbok.org

Ian’s personal blog: www.ianmclayton.com.


USMBOK Best PracGce Statement Library

  ConGnuously updated online library of best pracGce statements

  More than 5000 entries, spanning:   USMBOK   ITIL V2 and V3   Deciphers for ITIL

  Roadmap describes gradual expansion and addiGonal content:

  Key Performance Measures   Decipher for InternaGonal

Standards (ISO 20000)   Access requires annual subscripGon   Next release scheduled for August 1st,

2010


Upcoming Events

  Complimentary Webinars:   6 Steps to Outside-‐In Service Management™

Thursday January 28th – 08:00-‐09:00a Pacific Time

  IntroducGon to the ITSM-‐SOS™ Program Friday February 5th – 09:00-‐09:45a Pacific Time

  EducaGon:   CerGfied Lean Service Professional (CSMP)

April 12-‐14, San Diego CA   CerGfied Service Management Professional (CSMP)

April 19-‐23, Orlando FL


What is Universal Service Management?

  Service management has been a long-‐standing subset of product management

  Service management as a concept and management approach predates this recent use by IT organizaGons

  Recently the concept of ‘IT service management’ has been associated with the transforma4on of an IT organizaGon

  Universal service management recognizes the heritage of both the ITSM and product management sources and promotes their combined methods and concepts as a universally applicable framework for any type of service organizaGon.


A Service SpecificaGon

  A service need to be specified in terms understood by its prospecGve and actual customer communiGes, from the “outside-‐in”, and include many if not all of the following a`ributes:   Consumer Benefits

  FuncGonal Parameter(s)

  Access Points

  Consumer Count (Capacity)

  Readiness (Availability) Times

  Support Times

  Language(s)

  Fulfillment (Level) Target/ObjecGves

  Maximum Impairment (Number, Frequency and DuraGon per Incident)

  Delivery DuraGon per Access Point

  Delivery Unit and Price per Unit.

introduction to usmbok-2010

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