Slides

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Ian Clayton
Principal
Service Management 101 LLC
A Manifesto for Cloud-relevant
Service Management
The Consequence of Hybrid Cloud Computing
on Service Management Practices
Based upon the USMBOK
Highlights:
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The economic imperatives driving Cloud adoption
The elements of a service management system and provider organization
The impact of Cloud upon the system and organization
How to adapt your service provision model to incorporate cloud options
COPYRIGHT © 2010 VKSII, All Rights Reserved
Introduction
 In this session we shall explore:
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The economic and management imperatives driving cloud computing, the
common cloud options
The perspectives, scope and content of the ‘service management manifesto’
The elements of a service management system and service provider organization
from both the ITIL® and USMBOK® perspectives
The impact of Cloud upon the system and organization, and specifically key
practices, processes, roles, policies and artifacts
How to adapt your service provision model to incorporate cloud options
A six-step method for ensuring your service management initiative remains cloud
relevant A basic primer on Cloud Computing based upon US Federal Government
definitions.
COPYRIGHT © 2010 VKSII, All Rights Reserved
Cloud 101: Introduction
 The ‘Cloud’ was originally a metaphor for the Internet, the area outside of your own
network
 Cloud computing has many diverse definitions, summarized, the Cloud is an ondemand self-service Internet infrastructure where you pay-as-you-go and use only
what you need, all managed by a browser, or application.
 Cloud computing is broken up into multiple segments
represented by the Cloud Pyramid and including:
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Cloud Infrastructure
Cloud Platforms
Cloud Applications
 Analyst firm IDC says cloud services will
outpace traditional IT spending over the next five years and will represent $44.2
billion by 2013 – its huge business!
COPYRIGHT © 2010 VKSII, All Rights Reserved
The US Federal Government Does and Defines
Cloud Computing
 With an IT budget of more then 70 billion dollars a year, the US government
represents the largest IT consumer on the planet
 With this kind of money at stake, the influence the US government imposes
is enormous and directly influences how we as an industry both define and
use the cloud
 The National Institute of Standards and Technology (NIST), a non-regulatory
agency of the United States Department of Commerce with a mission to
promote U.S. innovation and industrial competitiveness, has prepared
definitions on behalf of the US Government for Cloud Computing
 It is expected these definitions will be the de facto standard the entire US
government will be given – for more information visit:
http://csrc.nist.gov/groups/SNS/cloud-computing/.
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The NIST Cloud Definition Framework
Hybrid Clouds
Deployment/Deliver
y
Models
Service
Models
Private Cloud
Software as a Service
(SaaS)
Community
Cloud
Public Cloud
Platform as a Service
(PaaS)
Infrastructure as a Service
(IaaS)
On Demand Self-Service
Essential
Characteristics
Source:
NIST
Common
Characteristics
Broad Network Access
Rapid Elasticity
Resource Pooling
Measured Service
Massive Scale
Resilient Computing
Homogeneity
Geographic Distribution
Virtualization
Service Orientation
Low Cost Software
Advanced Security
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The Management Imperative
“Address One of My Problems!”
 Today's economic climate is causing
management to tighten budgets and reprioritize projects
 It is acting as an accelerant for
management expectations of the
benefits from investing in a service
management initiative
 All investments are subject to greater
scrutiny, with projects being
reprioritized and non-performers
shelved, or abandoned, perhaps
permanently
 Initiatives must complete and deliver on
their promise, or a specific subset of
deliverables, within a 30, 60, or 90-day
period.
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Why ‘Cloud’ Makes the Business Pulse Race
 Some of the more common benefits attributed to
Cloud Computing include:
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A more agile and responsive IT investment
decision-making process
Greater alignment of IT investments with business goals
Paying only for what you use, a new generation of ‘service economics’
Even more rapid, utility styled request and deployment of information services
Greater scalability in all ways, linking real-time demand and utilization with
planned capacity – ‘just in time service’
Higher quality of service, less downtime caused by non-standard or inconsistently
architected and designed infrastructures
More cost effective use of all types of technology resources, including human
Annual savings in hardware, power and human labor costs
Environmentally friendly ‘green IT out of a box?’
THE AVAILABILITY OF VIABLE OFFERINGS!
COPYRIGHT © 2010 VKSII, All Rights Reserved
The Open Cloud Manifesto
 The purpose of the Open Cloud Manifesto is to
“… initiate a conversation that will bring together the emerging cloud
computing community (both cloud users and cloud providers) around a core
set of principles”
 The document discusses:
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What is Cloud Computing and why it is
important
Challenges and barriers to adoption
The goals of an Open Cloud
Guiding principles for an Open Cloud
 For more information visit the website:

www.opencloudmanifesto.org
COPYRIGHT © 2010 VKSII, All Rights Reserved
“Mirror Mirror on the Wall…”
 The benefits of Cloud mirror those suggested as resulting
from an IT Service Management or ITIL® project, while
mugging ITSM for its benefits, Cloud exposes a number
of failings in the traditional ITSM approach:
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The sheer glacial speed of progress and delivery of tangible business benefits
The often veiled commitment of specialized, scarce resources to a
long-term effort
A lack of support from the application and systems management functional groups
A failure to properly integrate business continuity, security, facilities management and
capacity planning disciplines
The inability to relate customer activities to consumption of IT resources
The lack of stakeholder support in ITSM as a value creating initiative
 Cloud reminds us the business need has not changed and what is wanted is a
demand driven, pay as you go, utility styled approach related to specific
business outcomes.
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For Now.. a Hybrid Cloud
 Cloud service providers may struggle
to accommodate highly customized
applications and IT may baulk at
migrating sensitive systems
 Likely result is many IT organizations
will face the challenge of managing a
hybrid cloud infrastructure over the next 2-3 years
 Meanwhile, cloud computing is busily establishing a next generation of service
management ‘best practices’, involving:
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Subscription based offerings
More agile service agreements
An order-fulfillment provisioning model
Federated design of the service management system that spans dueling silos and the total
customer experience
 All the while the cloud options will have to tackle the emerging service experiential
economy, where the customer experience matters most,
successful outcomes aside.
COPYRIGHT © 2010 VKSII, All Rights Reserved
The (Universal) Service Management Manifesto™
 The purpose of the service management manifesto is to clarify the definition
of service management and what it means to differing constituents
 Like the open cloud manifesto the intent is to initiate a conversation that will
bring together the service management community on a universal basis
around a core set of principles
 The manifesto has five perspectives:
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The customer perspective, representing consumers or products and services
The provider perspective, for service providers
The professional perspective for individuals working within service industries
The vendor perspective for suppliers to service organizations
The community perspective, for organizations such as trade and professional
associations, representing the industries, organizations, and individuals involved
in the consumption and provision of the products and services.
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The Service Management ‘Cloud’ Elements
The Service Management System
The Service Provider Provisioning System
The Service Provider Organization
Source: USMBOK
 The service management system has two discrete but co-designed elements: the
provisioning system and the organization
 Apart from security and data governance, Cloud Computing poses a number of major
challenges to any organization active, or considering a service management initiative
COPYRIGHT © 2010 VKSII, All Rights Reserved
The natural tendency of organizations to think
‘Inside-Out’
 Firstly, it’s a natural tendency and common
for most organizations to look inward
at what work they do – to think inside-out
 Inside-out thinking places a greater emphasis, sometimes total, on how the
work is performed, its efficiency, productivity, and the product quality
 This is especially true if the organization is detached or insulated from its end
customers, a monopoly, the economy is healthy, and the operational
environment stable
 Performance measures are more focused on the work performed by the
service provider, processes, or technologies than on customer outcomes
 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 initiative with customer results and
satisfaction levels.
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7 Signs You are Failing Your Customers (and You)
– and may be ‘inside-out’
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Key service staff are unable to state easily, clearly and briefly who the
customers are, what we do for them, and the basis for customer satisfaction
The view of the customers, what they care about, and how you serve them,
differs significantly across the organization
When compared, more time is spent on internal issues, processes and
conflicts than on discussing the customer outcomes and needs
Few of your decisions are explicitly driven by customer needs
You have trouble adapting to normal variations in the customer operations
and get blindsided by changes in strategy and behavior
You are trying to apply one rigid practice or process framework to all
customer situations
You do not know how your efforts relate to the interests and desired results
of your customers?
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Manifesto: What is “Service Management”?
 Service management is a systematic method for managing the provision of
services to customers at a known quality and cost
 Service management ensures the desired results and customer satisfaction
levels are achieved cost effectively
 Service management is a means by which the customer experience and
interaction with our products and services is managed
 Service management is also a transformation method for any organization
that wishes to operate as a service provider organization
 The origin of service management is in product management
 Service management concepts and methods are universally applicable to any
industry, including information technology (IT).
COPYRIGHT © 2010 VKSII, All Rights Reserved
Manifesto: Service Management requires…
 The adoption of a service perspective to the planning of product offerings
and allocation of resources
 The embedding of a service subscription, consumption and provision logic in
the management approach
 A focus on the desired customer relationship and successful customer
outcomes required by customers
 A commitment to being operated and managed as a ‘service (provider)
organization’
 A matching of the quality of service, and its cost of provision, to customer
requirements and objectives
 Understanding points from which service can be accessed, managing the
‘service encounter’, and designing how services are supported
 A system and organization for the fulfillment of ‘service requests’.
COPYRIGHT © 2010 VKSII, All Rights Reserved
What is IT Service Management (ITSM)?
 The origin of the term is generally unknown, but it has been in mainstream
use during the 1990s, historically it has been associated with the introduction
of, or improvement of existing IT operational practices through the adoption
and adaptation of industry ‘best practices’
 ITIL® defines ITSM as, “The implementation and management of quality IT
services that meet the needs of the business…”
 Wikipedia defines IT Service Management as, “a discipline for managing
information technology (IT) systems, philosophically centered on the
customer's perspective of IT's contribution to the business…”
 IT Service Management is also the term commonly used to describe the
process centric effort of transforming an IT organization from one focused on
managing the IT infrastructure, to managing the provision of information
system services.
COPYRIGHT © 2010 VKSII, All Rights Reserved
The Promise of IT Service Management (ITSM)
“The startling and inconvenient truth about many IT Service
Management projects is that they fail the sponsoring IT
organization and the customer”
“Given the record so far, it is highly likely that without a major
outside-in thinking ingredient, the emerging refreshed ISO
20000 standard will continue to propagate an inside-out
approach and result in a similar failure”
Ian Clayton, Principal, Service Management 101.
COPYRIGHT © 2010 VKSII, All Rights Reserved
The Cloud Discussion is a ‘Darwinian Event’ for
Traditional ITSM
 The Cloud discussion polarizes ITSM theorists and differentiates
them from pragmatic practitioners
 Proponents of familiar ‘must-have’ ITSM artifacts, such as
service catalogs and configuration management databases (CMDB)
are either strangely quiet, or forming committees designed
to ensure inter-operability
 To compound matters, few if any ITSM training classes have adapted their curriculum
to include Cloud concepts
 Some of the most vocal ITSM evangelists are soliciting ideas rather than leading their
peers through this latest metamorphosis
 Have no doubt, the option of Cloud Computing represents a ‘Darwinian Event’,
causing management to rethink the value of an ITSM initiative, and to reassess an
investment in existing ITSM qualification schemes and inflexible frameworks, such as
the IT Infrastructure Library®.
COPYRIGHT © 2010 VKSII, All Rights Reserved
What is a Service Management System?
 The service management system represents all the operational and
administrative elements required by a service organization to respond to
market opportunities and customer needs
 The system’s purpose is to enable the cost effective design, development,
offering, contracting, provisioning and support of quality assured services
 The goal of a service management initiative is to establish and sustain a
service management system
 The journey to a service management system requires the transformation of
an organization and adaptation of ‘best practices’.
COPYRIGHT © 2010 VKSII, All Rights Reserved
Service Management System Fundamentals
 The service management system should answer a number of question:
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How the service provider decides which customer communities 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 existing or prospective 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 satisfaction
level perspective
How the service provider plans will be aligned with those of customer
What transformation method will be used and how will the provider continuously improve.
COPYRIGHT © 2010 VKSII, All Rights Reserved
The ITIL® Service Management ‘System’
 ITIL provides a simplistic four
stage ‘lifecycle’ based system
 The stages are supported by a
continual improvement fifth
and cyclic ‘stage’
 There is no detail or overarching representation of how
requests or incidents journey
through the system
 There are multiple inputs to
the ITIL ‘system’, including
incidents and service requests.
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Source: SMBOK™ Service
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COPYRIGHT © 2010 VKSII, All Rights Reserved
ITIL® ‘Processes’ Impacted by Cloud
 ITIL does not provide in core
books an overall
representation of how
processes co-operate
 The core documentation
describes approximately 36
subject areas or ‘process’
candidates
 The likely impact is based upon
ITIL V3.0 descriptions.
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Source: SMBOK Service
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COPYRIGHT © 2010 VKSII, All Rights Reserved
Key ITIL® Artifacts Impacted by Cloud
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Application Portfolio
Asset Register
Authority Matrix (RACI Chart)
Availability Plan
Back-out Plan
Business, IT Service Continuity Plans
Capacity Plan
Change Record, Schedule, emergency
Configuration Management Database
Definitive Media Library
Incident record, impact statement
Operational Level Agreements (OLA)
Patterns of Business Activity
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Problem record, cause statement
Release identification, record, unit
Requirement Catalog
Security Policies and Profiles
Service Acceptance Criteria
Service Catalog
Service Contract and Level Agreements
Service Improvement Plan
Service Level Packages
Service Level requirements, Targets
Service Pipeline
Service Portfolio
Service Request (Request Fulfillment)
Underpinning Contracts
COPYRIGHT © 2010 VKSII, All Rights Reserved
The ITIL® Roles
 ITIL does not provide an
overall organizational
structure or ‘role continuum’
 The core documentation
describes approximately 47
responsibilities or ‘roles’
 These roles include at least
two that are implied
 The likely impact is based upon
ITIL V3.0 descriptions.
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COPYRIGHT © 2010 VKSII, All Rights Reserved
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The ITIL® Qualification Scheme
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 The ITIL Qualification Scheme
(IQS) issues certificates based
upon proof of progressive
knowledge of ITIL core
publications
 Proof is by examination
 The IQS is a certificate issuing
scheme
 The likely impact is based upon
ITIL V3.0 descriptions.
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COPYRIGHT © 2010 VKSII, All Rights Reserved
H
The USMBOK® Service Management System
H
Business Planning Framework
Performance Management Framework
H
The Service Lifecycle
H
Customer
Model
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Requirement
Lifecycle
H
Enterprise
Model
H
Service
Model
Service
Request
M
Request
Lifecycle
H
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Asset
Lifecycle
Support
Lifecycle
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Quality
Lifecycle
H
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Revision
Lifecycle
Change
Lifecycle
Release
Lifecycle
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M
Service
Retire
Event
Lifecycle
Policy Framework
H
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Provision Lifecycle
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Operations Lifecycle
Service Transaction Engine
H
SYSTEM
Governance Framework
Knowledge Domains
Service
Customer
Management
Service
Fulfillment
Management
Service
Quality
Management
Service
Delivery
Management
Service
Operations
Management
COPYRIGHT © 2010 VKSII, All Rights Reserved
Service
Infrastructure
Management
Service
Value
Management
ORGANIZATION
Service Request: The Key Input to Service System
•New Technology
L
 Improvement statement is a
•Derivative Technology
Non-Customer
•Incremental Service Improvement
Oriented Needs
aggregation of:
•Derivative Market
 Customer oriented needs
M
 Non-customer needs
Customer
Interview
 Idea generation
Improvement
 Catalog-driven service enquiries from
Statement
H Customer
official ‘service access points’ by
Oriented
Needs and Wants
authorized persons
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 Problem statement developed from:
Idea
Generation
 Service incident records
 All inputs are consolidated into a
common service request format as the H Service
Service
Catalog
Request
primary and singular input to the Service
System.
H
Service
Incidents
COPYRIGHT © 2010 VKSII, All Rights Reserved
Problem
Statement
Source: USMBOK
Service
System
Service Provider Organization: The Role
Continuum
Relationship
Requirement
Responsibility
Regulations
Order
Fulfillment
Marketing
Opportunity
Partnering
Quality
Performance
Excellence
Back
Office
Delivery
Operations
and
Support
The Service Management System
Infrastructure
and
Materials
Management
Service
Infrastructure
Facing
Customer
Facing
The Role Continuum
Source: USMBOK
 Represents the specialized roles required to operate and manage a service
organization, spanning the customer and infrastructure facing roles
 Mandatory role taxonomy input to a governance framework
 Provides context for application and ownership of operational policies,
procedures, and ‘best practices’
COPYRIGHT © 2010 VKSII, All Rights Reserved
USMBOK®: Knowledge Domains & Knowledge
Areas
 The USMBOK contains 40
knowledge areas,
corresponding to major
competency (practice)
 Each knowledge area
leverages existing
information references
and in some cases
credential programs
 Supports skill-path, rolebased curriculum
 Leverages proven and
universally applicable
service industry methods
 Spans the OI-IO
Continuum.
COPYRIGHT © 2010 VKSII, All Rights Reserved
Adjusting Your Service Management Initiative
Think ‘Outside-In’
 Outside-In thinking is not new, with roots in marketing management, and
accepted business management theory dating back past Peter Drucker
 Outside-In thinking puts the interests of the customer first
 It ensures an explicit customer reason is in every decision, including what
services to offer and the makeup of those services
 Outside-in cares most about successful customer outcomes (SCOs)
 Observe customers ‘in their own habitat’ to understand their behavior, how
they think and act, and what motivates them to behave in certain ways
 It is in increasing use by the more successful business enterprises
 Many ‘quality improvement’ such as Lean and Six Sigma lack suitable
outside-in thinking and are embracing it now.
COPYRIGHT © 2010 VKSII, All Rights Reserved
The Basis of Outside-In Thinking:
Customer Experience, Outcomes, Satisfaction
 The customer, and customer experiences matter most because quality goods
and customer satisfaction are commoditized
 Customer satisfaction leads to loyalty and advocacy
 Loyalty lowers costs and is increasingly necessary to be competitive. The
best way to drive loyalty is to create consistently compelling and authentic
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
 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.
COPYRIGHT © 2010 VKSII, All Rights Reserved
6-Step Method to Ensure Your Service
Management Initiatives Remains (Cloud) Relevant
1.
Organize
6.
Innovate &
Improve
2.
Recognize
OutsideIn
Thinking
5.
Foster
Community
3.
Manage
Experience
4.
Personalize
1. Organize for customer relevant
service management
2. Recognize, respect and picture
customers and their end
customers
3. Manage the customer’s total
service experience
4. Deliver personalized service
5. Foster a customer community and
manage the entire customer
lifecycle, from satisfaction, to
loyalty and advocacy
6. Engage in Continuous Innovation
and Improvement
COPYRIGHT © 2010 VKSII, All Rights Reserved
Summary
 Remember - Customers are in control in a service economy
 Cloud Computing remains an emerging and maturing option for a service
provider
 As yet it is not subject to any standard definition or regulation – caveat
emptor (buyer beware) reigns
 Cloud places a significant emphasis and impact on key areas:
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Security and data governance
Understanding your successful customer outcomes and required relationship
Managing service provision and the total customer experience
 There is, and will continue to be a major impact on education and
professional qualifications (certificates, certification and credentials) - CHECK.
COPYRIGHT © 2010 VKSII, All Rights Reserved
Upcoming Events
 Outside-In Service Management Foundations™

San Diego, Solana Beach , October 25-26 2010
 USMBOK Foundations™:

San Diego, Solana Beach , October 27-29 2010
 Launch of three online website services, @ Oct 12:



Service Management University™
Service Management Connections™ – professional community, ‘Yahoo:Answers’
Service Management Manifesto™
 Certified Service Management Professional (CSMP)™

San Diego, Solana Beach November 15-29 2010
 For classroom training discounts and news on upcoming website services
goto http://www.servicemanagement101.net and register for free
 Or call Ian on +1 (858) 461-1253
COPYRIGHT © 2010 VKSII, All Rights Reserved
The Guide to the USMBOK Publication




By registering for this webinar you
receive a $50 discount off the list
price of the Guide to USMBOK book
The Guide is a ‘Rosetta Stone’ for
service management, codifying and
connecting:
 Universally applicable concepts
and methods for any service
management initiative
 Elements of a service
management system
 Key roles in a service
organization
Your promotion code is ‘GUIDE50’
A companion publication is the
USMBOK Lexicon.
COPYRIGHT © 2010 VKSII, All Rights Reserved
Ian Clayton
Principal
Service Management 101 LLC
A Manifesto for Cloud-relevant
Service Management
The Consequence of Hybrid Cloud Computing
on Service Management Practices
Thank You – Any Questions?
[email protected]
Universal Service Management Body of Knowledge: www.usmbok.org
My Blog at http://www.ianmclayton.com
COPYRIGHT © 2010 VKSII, All Rights Reserved
Step 1: Organize for Customer Relevant Service
Management
 Empower and motivate your organization to think customer first by linking
compensation to customer outcomes
 Create a culture where an explicit customer reason drives every decision
 Focus on who you do work for, why you do what you do for them, before you
look at what work you do
 Use customer perceptions of your products not your own
 Inspect customer interactions (moments of truth/ touch points) & reengineer
 Design practices using customer scenarios (service requests) and engage
customers in co-designing ideal scenarios
 Service management means managing the total customer experience
 Practices should be designed and streamlined using customer scenarios
 Measure what matters - defines customer relevant measures then internal
measures and assess degree of alignment and synchronization.
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Understanding the Customer
 A customer (perhaps unknowingly) uses a combination of the three vital
service equations and are focused on:
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Achieving their desired results
Receiving personalized service that leaves them satisfied they are relevant, and
that service is ‘delivered as promised’
 Consequently:
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A quality process is irrelevant to the customer unless it directly effects value by
helping achieve results (easier, more consistently), lowers the cost of providing
the service
Process maturity is irrelevant unless the level of maturity can be aligned with the
minimum, or optimum capability needed to satisfy the agreed service level
objectives – or customer expectations.
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Step 2: Recognize, Respect and Picture Customers
& their End Customers
 Develop a deep understanding of how your customers do their jobs and
value their time
 Ground your success in knowing your customers and their successful
customer outcomes (SCO)
 Who is the customer?
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What is the scenario?
What are the desired outcomes?
What are the conditions of satisfaction?
What are the moments of truth and metrics?
What are the related and/or supporting customer scenarios?
 Remember everything your organization knows about the customer
 Ensure everyone in your organization has access to a 360-degree view of the
customer ‘picture’, their SCOs, service encounters and moments of truth.
COPYRIGHT © 2010 VKSII, All Rights Reserved
Step 3: Manage the Customer’s Total Service
Experience
 Manage service encounter and moments of truth – the customer experience
 Remember, its all about customer ’DNA’

Do not assume, alienate, abuse, annoy, abdicate
 Eliminate the creation of unplanned customer interactions
 Deliver a seamless customer experience across channels and touch points
 In deciding what to put on your portal first, start with the most commonly
requested information or transaction
 Redesign your customer facing processes from a customer’s point of view
 Give customers control over their experience, place requests, check status,
view history, optionally trouble shoot their own problems
 Make it easy for customers to do business with you.
COPYRIGHT © 2010 VKSII, All Rights Reserved
Step 4: Deliver Personalized Service
 Personalize interactions with customers – walk in your customer’s shoes
 Customers will...


Buy before they try, buy by the piece, mix and match
Want to reshape and repurpose goods and services, to share and co-brand
 Observe people in their own habitat to understand their behavior, how they
think and act, and what motivates them to behave in certain ways
 Tune service encounters, touch points and moments of truth
 Maintain a list of top scenarios for each customer
 Custom-fit information presented and offers
 Give customers the ability to design their own products
 Personalized service may lead to a need for community
 Recruit lead customers to co-design with you and map the ideal state
COPYRIGHT © 2010 VKSII, All Rights Reserved
Step 5: Foster a Customer Community and
Manage the Customer Lifecycle
 Relate and group customers with common interests and needs
 Common needs foster community, build a community around each set of
needs, line of service or service or set of successful customer outcomes
 Introduce and reinforce common terminology and values
 Help customers support other customers
 Design community based and relevant customer support
 Reward customers for being ‘sticky’, loyal and advocates
 Remember, customers want to be consulted about the community
 Communities create added value and support the satisfaction-loyaltyadvocacy customer lifecycle.
COPYRIGHT © 2010 VKSII, All Rights Reserved
Step 6: Engage in Continuous Innovation and
Improvement
 Respect the management imperatives
 Establish a continuous improvement program (not service, not process)
 Continuously refine your work to make it easier for customers to do their
jobs
 Defines customer relevant measures then internal measures and assess
whether existing practices are aligned to deliver SCOs
 Experiment on a small-scale to help improve your customer understanding of
your strategy
 Continuously improve processes based upon customer feedback
 Start the transformation with simple steps, one customer, one SCO.
 Ask customers what they want, be vigilant of customer cues
 Identify and address the high inertia elements of your strategy
 Move from process/product centric to customer centric
COPYRIGHT © 2010 VKSII, All Rights Reserved
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