4/12/2016
BCIS 5520
IT Service Management
Continual Service Improvement (P1)
Class 12.01
Spring 2016
Dr. Becker
Class 13: Continual Service Improvement
(P2); Virtual Organizations
• Homework (N/A) Class #14 –(4/20; click here)
• Readings:
 NEW** Foundations in ITSM (ITIL v3 Foundations Course in a Book), Orand
(O; April 2013)
 Chapter: 12 Continual Service Improvement (Part 2)
 Chapter: 13 Tools, Techniques, and Security Issues (4/27?)
REVIEW
▫ Foundations of ITSM based on ITIL v3, Jan von Bon (JVB)
 Chapter: 7 & 13 Continual Service Improvement
 Foundations in ITSM (ITIL v3 Foundations Course in a Book), Orand &
Villarreal (O&V)
 Chapters: 11 Continual Service Improvement (Part 1)
 Other Materials
 Class Handouts & Readings
 Guest Speakers:
 TBA
 Homework #Final Project Q&A; Bonus? (5/4):
1
4/12/2016
Class 12: Continual Service Improvement
(P1); Virtual Organizations
• Readings (April 13):
• Homework #8A (Bonus: 4/13-20):
▫ Foundations of ITSM based on ITIL v3, Jan von Bon (JVB)
 Chapter: 7 & 13 Continual Service Improvement
 Foundations in ITSM (ITIL v3 Foundations Course in a
Book), Orand & Villarreal (O&V; June 2011; & April 2013)
 Chapters: 11 Continual Service Improvement (Part 1)
 Other Materials
 Class Handouts & Readings
 Homework #9A (Bonus: 4/20-27):
▫ ITSM Continual Service Improvement (CSI):
▫ a) Deming Cycle or b) CSI Best Practices
 Homework #Final Project Q&A; Bonus? (5/4)
2016 Project Topics DRAFT
1.
Curran, Kevin: “IT Risk Management and Productivity: A
Delicate Relationship and How to Use it to Your Advantage”
2.
Gill, Manrajdeep, “IT Service Catalog Management: Building The
Service Catalog A Case Study: Hunt Consolidated”
2
4/12/2016
Figure 1: Building a Service Catalog
Curran: IT Risk Management and Productivity: A Delicate
Relationship and How to Use it to Your Advantage
Figure 1: Increased Security
Impact on ITSM Productivity
Figure 2: Risk vs. Reward:
Linear vs. Convex (decreasing) relation
3
4/12/2016
IT Security Management (ITSM)
• Purpose/Goal:
▫ Align IT and business security and ensure that the
Information security is managed effectively in all
service activities
Term Paper & Presentation Project
(400 pts.); DRAFT (100 pts)
The subject of the paper should be relevant to the management of information assets and can be based on one of the
topics covered in class, mentioned in your textbook, or any other topic relevant to IT Service Management.
I. Introduction to topic. Title and statement of the topic (100 to 250 words). The topic statement should be in
paragraph rather, rather than outline, form. Answer the question: Why should we care about your topic? Use outline
form for rest of the paper when appropriate.
II. Key Issues (KIs) for management of topic. Answer the question: To what things (i.e., nouns) must you pay
attention in order to be successful at managing topic? You cannot have more than 10 or fewer than 5 KIs, preferably 6
to 8. NOTE: These MUST lead to the definition of CSFs in V. below
III. Model/framework/theory/taxonomies. Answer the question: What concepts, paradigms, approaches, etc.
are there to help us understand and/or organize the subject matter?
IV. Primary content -- Cover the subject matter – Provide management with the “how to do it” details. Ideally
the content of section III and/or II provides you with a way to organize this section into several sub-headings. Case
examples could go here too. Put longer cases, and supporting materials which cannot be easily cited in the References
section into the Appendix.
V. Critical success factors (CSFs) for successful management of this area. Answer the question: What things
must be done right in order to be successful at managing this? Ideally this section links back to
section II’s KIs. Section V's CSFs should serve as your conclusions and summary section; but, if necessary, include
a separate section before this one to deal with additional conclusions. You cannot have more than 10 or fewer than 5
CSFs, preferably 6 to 8.
VI. References. [Not included in word counts]
VII.Appendix. [Not included in word counts] Include PowerPoint Presentation Slides here. Copies of
important references; website materials; and figures and tables not included in main body of report.
•
•
Proposal (25 pts.. 400-750 words) due: Feb 19th
Paper (325 pts.; 3000-5000 words) & Presentation (50 pts.; slides) due: April 30th
4
4/12/2016
Term Paper & Presentation Project
(400 pts.); DRAFT (100 pts)
The subject of the paper should be relevant to the management of information assets and can be based on one of the
topics covered in class, mentioned in your textbook, or any other topic relevant to IT Service Management.
I. Introduction to topic. Title and statement of the topic (100 to 250 words). The topic statement should be in
paragraph rather, rather than outline, form. Answer the question: Why should we care about your topic? Use outline
form for rest of the paper when appropriate.
II. Key Issues (KIs) for management of topic. Answer the question: To what things (i.e., nouns) must you pay
attention in order to be successful at managing topic? You cannot have more than 10 or fewer than 5 KIs, preferably 6
to 8. NOTE: These MUST lead to the definition of CSFs in V. below
III. Model/framework/theory/taxonomies. Answer the question: What concepts, paradigms, approaches, etc.
are there to help us understand and/or organize the subject matter?
IV. Primary content -- Cover the subject matter – Provide management with the “how to do it” details. Ideally
the content of section III and/or II provides you with a way to organize this section into several sub-headings. Case
examples could go here too. Put longer cases, and supporting materials which cannot be easily cited in the References
section into the Appendix.
V. Critical success factors (CSFs) for successful management of this area. Answer the question: What things
must be done right in order to be successful at managing this? Ideally this section links back to
section II’s KIs. Section V's CSFs should serve as your conclusions and summary section; but, if necessary, include
a separate section before this one to deal with additional conclusions. You cannot have more than 10 or fewer than 5
CSFs, preferably 6 to 8.
VI. References. [Not included in word counts]
VII.Appendix. [Not included in word counts] Include PowerPoint Presentation Slides here. Copies of
important references; website materials; and figures and tables not included in main body of report.
•
•
Proposal (25 pts.. 400-750 words) due: Feb 22nd
Paper (325 pts.; 3000-5000 words) & Presentation (50 pts.; slides) due: May 2nd
Class 13: Continual Service Improvement
• Homework (9A) Class #13 –(4/18; click here)
• Readings:
▫ Foundations of ITSM based on ITIL v3, Jan von Bon (JVB)
 Chapter: 7 & 13 Continual Service Improvement
 Foundations in ITSM (ITIL v3 Foundations Course in a Book),
Orand & Villarreal (O&V)
 Chapters: 11 Continual Service Improvement
 Other Materials
 Class Handouts & Readings
 Guest Speakers:
 Charles Williams, Sr. Partner, KEDARit;
 Barbara Stewart, Director, IT Shared Services—Celanese
 Susan Shellhase, Global ITIL Project Lead—Celanese
 Homework #9A (4/18):
▫ ITSM Continual Service Improvement (CSI):
▫ a) Deming Cycle or b) CSI Best Practices
5
4/12/2016
ITIL ITSM Lifecycle: Operations
1.
2.
3.
4.
5.
Service Strategy
Service Design
Service Transition
Service Operation
Continual Service
Improvement
Other Topics
• Case Assignments 9A:
Continual Service Improvement
▫ Deming Cycle?
▫ CSI Best Practices
• Virtual Teams (Cloud Computing & ITIL?)
▫ “Best Practices for Managing Collaborative
Technologies & Virtual Teams,” (Becker, et. al.);
2001 AMCIS Proceedings, Aug. 2001. Boston.
• Cherwell Dashboard Webinar -- Mr. Garrison
6
4/12/2016
REVIEW: IT Service Continuity
Management (ITSCM)
• Purpose/Goal:
▫ Support the overall business continuity
management process by ensuring that the
required IT technical and service facilities (ICT),
can be resumed within required and agreed upon
time.
ITSCM Objectives
1. Maintain an up-to-date set of continuity and
recovery plans
2. Perform regular Business Impact Analysis
3. Provide expertise to all areas of the business on
continuity and recovery-related issues
4. Ensure that the continuity and recovery
mechanism are in place
5. Take proactive measures to improve
availability of services
6. Negotiate agreements with IT service providers
to support the continuity and recovery plan
7
4/12/2016
ITSCM Key Points
• Value for the Business
▫ ITSM is vital! Intelligent risk management plan for
the enterprise
• ITSCM components:
▫ Recall Westerman article on Risk Management




Access
Integrity
Continuity
Strategic
ITSCM : Activities, Methods, and
Techniques
• Initiation
• Requirements and strategy
▫
▫
▫
▫
Business Impact Analysis
Risk Estimation
Risk Response Measures
ITSCM recovery options
• Implementation
• Ongoing Operations
8
4/12/2016
ITSCM Activities & Processes (Fig.
10.8 (courtesy OGC) )
Interfaces: I/Os
• Interfaces
▫ Incident and Problem Management system
▫ Availability management system
▫ Service level management system
• Inputs
▫ Business information & requirements
▫ IT information; Financial information
▫ BCM (Business Continuity Management) strategy & plans
▫ Change information
▫ CMS
▫ Testing schedules
• Outputs
▫ Revised ITSCM policy and strategy
▫ BIA exercises and reports
▫ Risk analysis and management reviews and reports
▫ Continuity plans
▫ Test scenarios; reports and reviews
9
4/12/2016
Suggested KPI’s
• Outcome of regular audits of ISCM plans
• Extent to which service recovery targets are
agreed upon and documented in the SLA
• Test results of the ITSCM plan
• Regular review of the ITSCM plans
• Risk reduction vs. costs
ITSCM CSF’s
• Estimated time to restore operations
• Organizational awareness
10
4/12/2016
11.0 Continuous Service
Improvement (CSI) -- Overview
• Continuous Service Improvement (CSI)
▫ Focuses on ensuring that services are aligned and
continually realigned to meet business needs.
▫ Nothing is out of scope of CSI as it strives to provide
measurements for both services and processes.
• Key Concepts. The Scope of CSI includes:
▫ Overall health of the IT Service Management
▫ Continual alignment of IT services with business
▫ The maturity of the enabling of IT processes. I.e.,
continuous improvement
11.1 Continuous Service Improvement:
Value Proposition to Business
1. Increased organizational competency
2. Improved integration between people and
processes
3. Reduced redundancy, increasing business
throughput
4. Minimized lost opportunities
5. Assured regulatory compliance; and
6. Improved ability to rapidly react to change.
11
4/12/2016
11.2 Governance & CSI
• Governance promotes fairness
and transparency
▫ Ensures documentation of
processes is clear and readily
available.
▫ Areas of Governance:
 Enterprise Governance -Framework
 Corporate Governance -Conformance
 Business Governance -Performance
 IT Governance –
Accountability &
responsibility
• Figure: Governance (OGC)
11.3 PDCA/Deming Cycle
• Plan-Do-Check-Act (PDCA) Cycle
Dr. W. Edward Deming
1900-1993
▫ Based on Deming’s work on continuous quality
control (1940’s).
 W. Edward Deming’s 14 points
 Basis for 6-Sigma, TQM, etc.
▫ 3 Basic TQM components:
1. Focus on the Customer
2. Measurable objectives & goals; i.e., metrics
3. Monitor and obtain continuous improvement
12
4/12/2016
Deming Philosophy Synopsis
• "Dr. W. Edwards Deming taught that by
adopting appropriate principles of management,
organizations can increase quality and
simultaneously reduce costs (by reducing waste,
rework, staff attrition and litigation while
increasing customer loyalty). The key is to
practice continual improvement and think of
manufacturing as a system, not as bits and
pieces."[22]
Deming Philosophy (cont.)
In the 1970s, Deming's philosophy was summarized by some of his Japanese
proponents with the following 'a'-versus-'b' comparison:
(a) When people and organizations focus primarily on quality, defined by the
following ratio,
{Quality} = {Results of work efforts}/{Total costs}
quality tends to increase and costs fall over time.
(b) However, when people and organizations focus primarily on costs, costs
tend to rise and quality declines over time.
13
4/12/2016
PDCA Cycle for CSI (ISO/IEC 20000)
Deming’s 14 Points/Principles
1.
Create constancy of purpose toward improvement of product and service, with the aim to become competitive, stay in
business and to provide jobs.
2.
Adopt the new philosophy. We are in a new economic age. Western management must awaken to the challenge, must learn their
responsibilities, and take on leadership for change.
3.
Cease dependence on inspection to achieve quality. Eliminate the need for massive inspection by building quality into the
product in the first place.
4.
End the practice of awarding business on the basis of a price tag. Instead, minimize total cost. Move towards a single supplier
for any one item, on a long-term relationship of loyalty and trust.
5.
Improve constantly and forever the system of production and service, to improve quality and productivity, and thus
constantly decrease costs.
6.
Institute training on the job.
7.
Institute leadership (see Point 12 and Ch. 8 of "Out of the Crisis"). The aim of supervision should be to help people and machines and
gadgets do a better job. Supervision of management is in need of overhaul, as well as supervision of production workers.
8.
Drive out fear, so that everyone may work effectively for the company. (See Ch. 3 of "Out of the Crisis")
9.
Break down barriers between departments. People in research, design, sales, and production must work as a team, in order to
foresee problems of production and usage that may be encountered with the product or service.
10. Eliminate slogans, exhortations, and targets for the work force asking for zero defects and new levels of productivity.
Such exhortations only create adversarial relationships, as the bulk of the causes of low quality and low productivity belong to
the system and thus lie beyond the power of the work force.
11. a. Eliminate work standards (quotas) on the factory floor. Substitute with leadership.
b. Eliminate management by objective. Eliminate management by numbers and numerical goals. Instead substitute with
leadership.
12. a. Remove barriers that rob the hourly worker of his right to pride of workmanship. The responsibility of supervisors must
be changed from sheer numbers to quality.
b. Remove barriers that rob people in management and in engineering of their right to pride of workmanship. This
means, inter alia, abolishment of the annual or merit rating and of management by objective (See Ch. 3 of "Out of the Crisis").
13. Institute a vigorous program of education and self-improvement.
14. Put everybody in the company to work to accomplish the transformation. The transformation is everybody's job.
14
4/12/2016
11.4 Continuous Service
Improvement--Activities
• Overall Audits IT Services:
▫
▫
▫
▫
▫
▫
▫
Review management information and trends
Periodically conduct maturity assessments
Periodically conduct Internal audits of processes
Review deliverables for relevance
Make recommendations for improvement
Measure customer satisfaction
Conduct external and internal service reviews to
identify opportunities for improvement
11.5 The CSI Model
6 Questions:
1. What is the vision?
2. Where are we now?
3. Where do we want to
be?
4. How do we get there?
5. Did we get there?
6. How do we keep the
momentum going?
15
4/12/2016
7 Step CSI Improvement Process
View of Continuous Improvement…
16
4/12/2016
Management Pyramid: Step 6 feeds
Step 3 (gather data) at each level
17
4/12/2016
11.6 CSI: Service Measurement
Key Questions:
1. Why are we monitoring and measuring?
2. When do we stop? Costs vs. benefits?
3. Is anyone using the data?
4. Do we still need this?
Reasons for Measurements
1. To validate
2. To direct
3. To justify
4. To intervene
11.7 Baselines and Types of Metrics
• Definition:
▫ A baseline is a point to compare to later. A.k.a.,
benchmarks
• Types of Metrics
1. Technology metrics -- IT infrastructure
2. Process metrics – CSFs and KPIs
3. Service metrics – Overall ability to achieve
SLAs. The end-to-end performance
18
4/12/2016
11.8: CSI Key Points
1.
Service performance reports from service operations is the
major input to CSI
2. CSI major output: Service Improvement Plan
3. Purpose of CSI is continual alignment of IT and business
plan
4. Scope of CSI is the overall health of ITSM
▫ Like “blood work”
5. Governance ensures fairness and consistency
6. PDCA cycle: Plan, Do, Check, Act
7. CSI Model: 6 Questions
8. 4 Reasons to measure.
9. Metrics can be qualitative or quantitative
10. 3 types of metrics: 1) Technology, 2) process and 3) service
Other Topics
• Case Assignments 9A:
Continual Service Improvement
▫ Deming Cycle?
▫ CSI Best Practices
• Virtual Teams (Cloud Computing & ITIL?)
▫ “Best Practices for Managing Collaborative
Technologies & Virtual Teams,” (Becker, et. al.);
2001 AMCIS Proceedings, Aug. 2001. Boston.
19
4/12/2016
“COMMUNICATING IT PERFORMANCE AS IT VALUE”; MISQ
Executive; March, 2011. Mitra, Sambamurthy & Westerman
Defined IT value as follows:
IT value is measured by performance metrics on dimensions that stakeholders
find important.
There are several implications of this definition.
1. The metric must be important to a stakeholder, or it does not communicate value. The
performance dimension measured may be monetary, such as revenue or profit, or non- monetary,
such as customer satisfaction or process reliability.
2. Perceptions of value may change as stakeholder requirements change. For example,
growth-oriented metrics may be less important during recessionary times than efficiency metrics.
3. Even if a measure is perceived to be important, there is little value in improving it beyond
what key stakeholders find acceptable. For example, in the case of business process
reliability or user satisfaction, “good enough” may indeed be good enough, and there may be no
benefit in overspending to exceed stakeholder requirements.
4. Business executives want to know the value gained from changes in performance, not
performance measures of current IT operations. According to one CIO, this is akin to asking the
question: “What’s the value of my heart to my body?” I can’t live without it, so my heart is worth
the whole value of my body.”
In summary, business and IT leaders must develop an understanding of what performance measures
matter to stakeholders and then compare initiatives based on how they will improve those measures
20
4/12/2016
The CIO Metrics Portfolio
Columns Represent
• Operations metrics capture the performance of existing infrastructure and business processes. These
typically include reliability, cost, and quality of operational execution. Quality is measured in terms such
as defect rates, or customer satisfaction. Value from operations typically comes from improving
performance to acceptable levels.
• Project metrics capture the successful execution of change activities. While most IT departments
measure whether projects were executed on time, budget, or scope, few have effective processes to assess
the business value realized from the projects.
• Innovation metrics describe the enterprise’s ability to pursue potentially valuable opportunities that it
would not pursue through its traditional activities. Innovation process metrics typically include breadth
of scanning, extent of employee involvement, and the number and potential benefits of investigated ideas.
Other innovation metrics are firm specific, such as incorporating new technology in the IT infrastructure,
enabling new business models, facilitating new product features, and transforming business processes.
Rows Represent
• IT metrics describe technology service performance. Some, such as help desk performance, are specific
to IT services. The CIO has primary responsibility for IT metrics.
• Business process metrics focus on the performance of business processes, such as business process
efficiency and quality. Although these metrics are traditionally the domain of business process owners,
there are often direct links to IT since the performance of many business processes is significantly
affected by the IT infrastructure.
• Business unit metrics focus on overall business or business unit performance, as exhibited by
financial and customer-facing measures. Although these metrics are ultimately the most important
measures of business performance, the link to specific IT-related activities can be difficult to make.
THE END… Class 13
• Continue with Continuous Service Improvement
next week.
21