An Overview of IT Governance

… and CIO’s must balance among many competing priorities. Maximize return: Improve business results; grow revenue and earnings, cash flow, reduced cost-of-operation Increase agility: Enable the business organization and operations to adapt to changing business needs Improve performance: Improve business operations performance end-to-end across the enterprise Increase customer and employee satisfaction Mitigate risk: Ensure security and continuity of internal business operations, while minimizing exposure to external risk factor

Needs, Issues & Challenges Planning Alignment Capital, Capacity, Priorities Flexibility Lack of Business aligned strategy Making new outsourcing decisions Deployment Complexity in number of project No means of capturing demands Management of Service Changes Cannot aggregate need and distribute ROI Deployment Complexity through lack of standard & legacy No means of prioritization of business need Lack of IT resource transparency Demand Supply Strategic Tactical Operations IT and Business Resources Quality No means of reporting SLA Efficiency Must reduce IT costs by 30% Ineffective project Management Reduce costs across business No Audit Trails Missed targets due to lack of steering control No means of governing outsourced contracts Control Procedure, Audits, Metrics

Decision rights framework & mechanisms What is IT Governance? (Ref.)HP working definition Vision, goals/priorities, measures; value prop & service portfolio; resource approaches & commitments; change management plans Decision rights framework & mechanisms IT governance is the formal process of defining the strategy of the IT organization and overseeing its execution to achieve the goals of the enterprise. Translation into aligned, tactical, operational plans; closed-loop monitoring & control; accountability; regulatory compliance Aligned/synchronized with the enterprise strategy, including other key asset strategies

Who are the Decision Makers? Non-Cooperative Cooperative Business Decision IT Decision Business and IT Collaboration Centralized Business Exec. IT Exec. Business and IT Exec. Federal Business and IT Exec./Mgt. Business Exec./Mgt. IT Exec./Mgt. De-centralised Business Mgt. IT Management Business and IT Mgt. Anarchy

Core Competencies for Effective IT Governance Balance the demand for IT services with available resources to meet immediate and strategic goals. Align operational and strategic IT investments to business strategies & objectives. Supply / Demand Management Establish effective, collaborative relationships with business stakeholders and suppliers. IT Strategy Management Relationship Management IT Operating Model Understand the drivers of IT costs to allocate appropriate costs to the consumers of IT services. Establish policies, standards, models and processes for managing IT as an enterprise asset Enterprise ArchitectureManagement Financial Management Portfolio Management Lifecycle management of infrastructure, applications and services

The HP IT Governance Capability Model Role of IT Role of IT None None None None Utility Utility Utility Utility Dependent Dependent Agile Agile IT Governance IT Governance 1: Initial Level 1: Initial Level 2: Repeatable 2: Repeatable 3: Defined Level 3: Defined Level 4: Managed 4: Managed 5: Optimized Level 5: Optimized Capability Levels Capability Levels Balanced & Balanced & IT Strategy IT Strategy Ad Hoc or IT Ad Hoc or IT Supply Supply Enterprise Enterprise Deliver to Budget Deliver to Budget Aligned Adaptive Aligned Adaptive Management Management Centric Centric Constrained Constrained Demand Driven Demand Driven Enterprise Enterprise Ad Hoc Review of Ad Hoc Review of Enterprise IT Enterprise IT Portfolio Portfolio IT Cost IT Cost Emerging ROI Emerging ROI Business Unit Business Unit Portfolio Portfolio Portfolio Portfolio s s s s Management Management Minimization Minimization Aligned Aligned n n n n Based Funding Based Funding i i i i Synergies Synergies Management Management a a a a m m m m o o o o Enterprise Enterprise Enterprise Enterprise Ad hoc / Ineffective Ad hoc / Ineffective Initial Enterprise Initial Enterprise Program Program - - based based Architecture Architecture - - Business Strategy Business Strategy D D D D Integrated Enterprise Integrated Enterprise Ad hoc Technical Ad hoc Technical Architecture Architecture Business Strategy Business Strategy Agile Enterprise Agile Enterprise y y y y Architecture Architecture Architecture Architecture Enterprise Enterprise Architecture Architecture Architecture Architecture Compliant Compliant Aligned Aligned Architecture & Architecture & t t t t Architecture Architecture Driven Design Driven Design Linked Linked Architecture Architecture b b b b i l i l i i i l i i i l Management Management Management Management Architecture Architecture Management Management Program Program Design Design Architecture Architecture Business Planning Business Planning a a a a p p p p a a a a Optimized Optimized C C C C Financial Financial Expense Driven, Expense Driven, IT Cost IT Cost Enterprise Cost Enterprise Cost IT Cost Transfer IT Cost Transfer Business Value Business Value e e e e c c c c Management Management Budget Focused Budget Focused Minimization Minimization Management Management Impact Impact n n n n a a a a n n n n r r r r Balanced & Balanced & Balanced & Balanced & e e e e Supply / Demand Technology Technology Technology Technology Supply Supply Supply Supply v v v v o o o o Value Based Value Based Value Based Value Based Demand Driven Demand Driven Demand Driven Demand Driven Aligned Multi Aligned Multi Aligned Multi Aligned Multi - - - - Management Management Based Based Based Based Constrained Constrained Constrained Constrained G G G G Sourcing Sourcing Sourcing Sourcing T T T T I I I I Business Relationship Technology Technology Technology-Based Technology - based Relationship Service Centric Service Centric Business Centric Business Centric Customer Centric Customer Centric Management Centric Centric Services Services Management IT Operating IT Operating Business Process Business Process Business Process Business Process Internal Service Internal Service Internal Service Internal Service Silo Silo Silo Silo IT Process-Based IT Process IT Process IT Process - - - Based Based Based Shared Services Shared Services Shared Services Shared Services Model Model Based Based Based Based Provider Provider Provider Provider 19 April 2017 7

IT Governance Framework IT Governance Models - the 5 Characteristics There are many models. But they share 5 characteristics: Underpinned by processes that must be implemented (e.g. Incident management) Supported by technology Define business change issues to be addressed Define organisational realignment to be achieved Include some way of measuring the value to be achieved (e.g. balanced scorecard) Corporate Governance IT Governance Framework Val IT Cobit ITIL ISO PPM Methods … Processes Technology BTO portfolio Business Change Org. Alignment & Competencies People Value Benefits Assurance 19 April 2017 9

How to Implement Governance Execute IT Governance Assessment Setup Framework Design Processes Implement Supporting Tools Execute assessment to identify gaps Define new role of IT in organization Define evolution roadmap to address the gaps Define roles and responsibilities Setup communication path to support IT-business alignment Define management structures for decision making, reporting and escalation Define policies Define processes Define KPIs and reporting requirements Implement tool to support the execution of the solution Implement tools for data collection and management reporting Continuous Improvement Plan (Control Lifecycle) Identify indicators to monitor strategy execution Define steering committee to manage relationships within IT and between business & IT Review IT strategy periodically and evolve governance environment 19 April 2017 10

Critical success factors for ITG Clarity of Purpose Senior Management Commitment Management of Business Change Focus, execute and enforce Measure achievable targets and expectations Don’t over-engineer IT Governance Evolution not revolution

Practical Advice to Successfully Implementing ITIL Best Practices Ed Holub Research Vice President, IT Operations Management Gartner for IT Leaders Gartner 25th Annual Data Center Ed Holub Conference 2006 28 November-1 December 2006 Rio All-Suite Hotel & Casino Las Vegas, NV These materials can be reproduced only with Gartner's written approval. Such approvals must be requested via e-mail — vendor.relations@gartner.com.

Hype Surrounding ITIL ITIL makes the business love the IT group! Tactical Guideline: In 2006, ITIL has progressed well beyond the Peak of Inflated Expectations on the IT Operations Hype Cycle, but user organizations should still be wary of the significant hype resulting in confusion and unrealistic expectations. ITIL makes the business love the IT group! ITIL is easy! Buy our tool and have ITIL! Everybody is doing it … What's next … ITIL cures cancer! ITIL solves world hunger! Technology Trigger Peak of Inflated Expectations Trough of Disillusionment Slope of Enlightenment Plateau of Productivity time visibility ITIL 2005 ITIL 2012 ITIL 2006 ITIL 2008 ITIL 2010 IT Operations Management Hype Cycle There has been a great deal of hype surrounding the Information Technology Infrastructure Library (ITIL). Much of this is being generated by vendors jumping on the ITIL bandwagon in an attempt to generate additional revenue. The fact that more and more organizations are leveraging ITIL, oftentimes with budget funds being specifically allocated to acquire improved tools, is reinforcing the vendors' heavy marketing of their systems management tools as enablers of ITIL. Coverage in the technology press has also fueled interest level in ITIL, albeit typically with oversimplified examples that give a false sense of how easy it is to reap the benefits of ITIL. Gartner's IT Operations Management Hype Cycle tracks the annual progress of various technologies and processes in terms of client expectations. In mid-2005, ITIL was judged to be just past the Peak of Inflated Expectations, and by the latest publication in July 2006 had progressed significantly toward the Trough of Disillusionment. Based on the continued increase in interest by organizations in leveraging ITIL, we are projecting that ITIL will start to come out of the trough in 2008, be in the Slope of Enlightenment in 2010 and be approaching the Plateau of Productivity in 2012.

Key Issues 1. What is ITIL and how can it serve as a guide to transforming operations? 2. What pitfalls should be avoided when implementing ITIL? 3. What are the critical success factors and practical methods to maximize return on investment?

Key Issues 1. What is ITIL and how can it serve as a guide to transforming operations? 2. What pitfalls should be avoided when implementing ITIL? 3. What are the critical success factors and practical methods to maximize return on investment?

Positioning the Frameworks Key Issue: What is ITIL and how can it serve as a guide to transforming operations? Level of Abstraction High Low IT Relevance Holistic Specific TCO ITIL CMMI CobiT Six Sigma ISO 9000 National Awards (e.g., Baldrige) People CMM Scorecards ISO 20000 CMM = capability maturity model CobiT = Control Objectives for Information and Related Technology ITIL = IT Infrastructure Library TCO = total cost of ownership IS0 20000 = IT service mgt standard ISO 9000 = quality mgt standard Point solutions are useful, but a broader, holistic approach to process and quality improvement is POWERFUL. ITIL is one of many frameworks designed to help facilitate improvement. It is useful to understand how ITIL compares to other popular frameworks. To select a set of process improvement models, you must honestly assess the organizational scope of the improvement initiative — for example, whether it covers the IT organization or the entire company — and the ultimate goal: operational process improvement or business transformation. This awareness, combined with a solid understanding of the various process improvement models (that is, their purposes, strengths, weaknesses, philosophical orientations and shared attributes), will make it easier to select and integrate appropriate models to achieve the desired results. The models in the upper left of the figure are extremely relevant to the IT organization and can be powerful tools for improving performance, but the tools themselves will have little meaning to anyone outside the IT organization. The models in the lower right of the figure have achieved high degrees of credibility with business people, so the IT organization that can employ them successfully will earn credibility. Deciding which approach to take will depend on a variety of cultural factors, including enterprise predilection for following the "proven path" or charting an independent course; power, influence and role of the champion; governance maturity; and organizational vision. No "best practice bundle" of approaches will work for every company or IT organization.

Process Framework — ITIL Strategic Planning Assumption: Through 2010, most organizations will implement as little as 20 percent of the total ITIL framework (0.7 probability). ITIL is a best-practice process framework. Service delivery Service support Others (application management, security management) Shows the goals, general activities, inputs and outputs of the various processes. Key Issue: What is ITIL and how can it serve as a guide to transforming operations? Although the ITIL has some information relevant to security, application management and so on, the vast majority of organizations focus their attention on the service delivery and service support processes listed on the following slide. ITIL is intentionally a high-level framework, describing "what" should be done, but not providing prescriptive guidance on "how" to do it. There is currently a new version of ITIL being developed. One of the purposes of the refresh is to offer more prescriptive guidance. The new version is planned to roll out in 2007 and will impact the current certification process for individuals. Action Item: ITIL is a process framework. Successful implementation of ITIL requires that organizations identify and expand process areas as appropriate (for example, adding process views for asset management, systems and network monitoring).

ITIL: The Good and the Bad Service Delivery: Service-level management Financial management Capacity management IT service continuity Availability management Service Support: Incident management Problem management Change management Configuration management Release management Service Desk Core Benefits: Standard process language Emphasis on process vs. technology Process integration Standardization enables cost and quality improvements Focus on customer Limitations: Not a process improvement methodology Specifies "what" but not "how" Doesn't cover all processes Doesn't cover organization issues Hype driving unrealistic expectations Key Issue: What is ITIL and how can it serve as a guide to transforming operations? The ITIL framework does not cover the full service management spectrum, nor does it cover the processes at the procedural level. In fact, most IT organizations will have slightly different interpretations of ITIL and comfort levels to which they will vary from adhering to strict ITIL terminology. Therefore, groups seeking to maximize their investments in ITIL will use those elements they deem appropriate (for example, change management), bolstered by other processes (for example, configuration management) with additional processes and integration points (for example, production acceptance/control) to effectively build a more complete and relevant work structure. Indeed, it is not uncommon for organizations to leverage as little as 20 percent of the strict ITIL framework, adding processes/tasks and significant process variations to define the remaining 80 percent of the work structure. Action Item: IT operations groups must recognize those elements of the ITIL framework that can be leveraged and not be afraid to embellish the framework with tasks and processes that help to create a more complete work structure.

Key Issues 1. What is ITIL and how can it serve as a guide to transforming operations? 2. What pitfalls should be avoided when implementing ITIL? 3. What are the critical success factors and practical methods to maximize return on investment?

More Process Refinement Initiatives Fail Due to Ineffective Governance than Due to Bad Designs Stakeholders IT operations and production engineering Architecture and standards IT controller IT service desk Security and compliance Business applications Steering Committee Responsibilities Service management vision Project management and process prioritization Funding and infrastructure investment Technical architecture Standards, tools and vendor criteria Measurement criteria Reporting to management IT management must have a vision of how to organize for successful adoption of the IT Service Management processes. Process management success requires a framework. A governing community affords a solid starting point. Via this forum, documented policies institute a set of procedures to regulate and control asset processes. It establishes a system of authorizations by which various persons or groups coordinate their efforts and take on specialized roles and functions. The IT organization constructs a network of appropriate dependencies based on a realistic appraisal of what it and others can provide. We are talking about a vehicle that allows the IT organization to control where it is going, not where it has been. The governance will require cross-departmental collaboration. It will offer a forum in which policies can be agreed to and grievances can be aired. In addition to the application development team, the operational change group, the service desk and operations, the governance committee should include stakeholders from the lines of business. The lines of business will provide some of the vision — expectations for new business objectives, new employee growth and merger-and-acquisition activity. Action Item: Scope the Service Management initiative small initially. Broaden it with success.

Trying to Run Before Walking Key Issue: What pitfalls should be avoided when implementing ITIL? Strategic Planning Assumption: Through 2012, 30 percent of large enterprises will achieve end-to-end IT service management, up from fewer than 15 percent today (0.8 probability). Reactive Proactive Analyze trends Set thresholds Predict problems Measure appli-cation availability Automate Mature problem, configuration, change, asset and performance mgt processes Fight fires Inventory Desktop SW distribution Initiate problem mgt process Alert and event mgt Measure component availability (up/down) IT as a service provider Define services, classes, pricing Understand costs Guarantee SLAs Measure & report service availability Integrate processes Capacity mgt Service Value IT as strategic business partner IT and business metric linkage IT/business collaboration improves business process Real-time infrastructure Business planning Level 1 Level 2 Level 3 Chaotic Ad hoc Undocumented Unpredictable Multiple help desks Minimal IT operations User call notification Level 0 Tool Leverage Manage IT as a Business Service Delivery Process Engineering Operational Process Engineering Service and Account Management Level 4 The IT Management Process Maturity Model shows how, over time, IT organizations evolve toward increasing levels of management process maturity. Gartner first presented the model in 1999 to aid IT organizations in plotting a course toward service management and value creation. By understanding where it is positioned in the IT Management Process Maturity Model, an IT organization will be more capable of charting its path to higher levels of maturity, including investing in people, process re-engineering and tools. It is important to note that each maturity level provides the foundation for the higher levels. People, processes and tools must be in place at one level before the organization can proceed to the next. You can't skip steps, although you can focus your efforts on improving the process maturity for a specific IT service or business application, rather than trying to do it for every aspect of the IT infrastructure. Even as IT organizations move up, there will always be additional work, continuous engineering and improvements under way at each level. Action Item: Understand your position in the IT Management Process Maturity Model and set a goal of the level you need to reach to best support the business. Use the model to help plot a strategy for sequential improvement by investing in IT operations management tools, people and processes to achieve higher maturity levels.

Assuming Tools Will Solve Your Problems Strategic Planning Assumption: Through 2010, at least 50 percent of organizations' primary focus for ITIL implementation projects will be tools acquisition (0.8 probability). "Man is a tool-using animal. Nowhere do you find him without tools; without tools he is nothing, with tools he is all." – Thomas Carlyle Be wary of vendor hype Focus on process first Tools can be enablers or inhibitors Assess capabilities of your current tools Review new tools where they would pay significant dividends Buy what you need, as you need it Key Issue: What pitfalls should be avoided when implementing ITIL? One of the major contributors to hype surrounding ITIL is the marketing strategies of systems management tools vendors. While the lack of effective tools can certainly be an inhibitor to the full exploitation of IT service management principles, tools should not be the primary focus. Tools that support the integration of ITIL processes are beneficial, but most IT operations organizations are not fully utilizing the systems management tools they already have licensed. The implementation of new tools involves not only money on tools licenses, but a significant amount of time to plan and implement the new tools. It is unlikely that a single vendor offers a suite of tools that completely satisfies the requirements of an IT operations organization; therefore, additional time and effort will be spent on integrating tools from different vendors. Action Item: Start by reviewing the capabilities of your current tools and only invest in new tools that will significantly improve your ability to achieve your overall IT service management goals.

Confusing the 'Means' With the 'End' Tactical Guideline: Leaders must ensure they never lose focus on the underlying goals and objectives for their ITIL initiative. This Is Not the Goal! ITIL Six Sigma CMM-I Malcolm Baldrige "Certification" Etc. Certification Does Not Guarantee Good Outcomes! Beware of Process for Its Own Sake! Process Improvement Is About Better Outcomes and Experiences for Customers Key Issue: What pitfalls should be avoided when implementing ITIL? The notion of business process improvement is at the peak of its Hype Cycle, and IT is not immune. Many standards, such as ITIL, CobiT and CMM-I, exist for IT, yet their differences, their benefits, and the overall rationale and impact of a process program for IT are poorly understood. Never lose focus that implementing ITIL is a means to an end. Don't stress the importance of achieving a particular level of maturity, or earning an external certification more than the underlying reasons that ITIL is being utilized. Process improvement can take on a life of its own and staff members can become resistant if they perceive ITIL is simply adding more bureaucracy to their daily jobs. Focus, instead, on the benefits the users or customers of IT will receive such as lower costs, higher quality and consistency, or the ability to respond more quickly to changing requirements.

Key Issues 1. What is ITIL and how can it serve as a guide to transforming operations? 2. What pitfalls should be avoided when implementing ITIL? 3. What are the critical success factors and practical methods to maximize return on investment?

Keep Focus Narrow and Deliver Benefits Key Issue: What are the critical success factors and practical methods to maximize return on investment? Strategic Imperative: The sponsor of the ITIL process initiative should focus efforts on a subset of process improvement opportunities. Determine Where to Start Not necessarily on the least mature processes 80 percent of clients start on core service support processes like change, incident and problem management Configuration management is a steeper challenge Service-level management is often first of service delivery processes Deliver Benefits Quickly to Address "Pain Points" Examples: Reduce percentage of changes causing incidents, improve MTTR Builds momentum Take an Iterative Approach Design 80 percent solutions and plan to improve later Channel benefits to "self-fund" the next phase Periodically reassess priorities When learning about ITIL, it doesn't sound like it would be very hard to adopt best practice processes that adhere to the spirit of the guidance. ITIL describes a lot of common-sense principles and doesn't involve any "rocket science." However, effectively using ITIL is more about cultural change than anything else and people can only absorb so much change at once. Taking on too large of a scope, such a working on all 10 of the core service support and service delivery processes at once, will almost always result in the ITIL implementation initiative getting bogged down. Momentum will be hard to maintain and staff will begin to wonder if it is really worthwhile. If a periodic belt-tightening exercise occurs, the ITIL effort will undergo much scrutiny because few benefits have been achieved because resources are spread too thin. Therefore, approach ITIL as a phased effort and keep the scope focused initially on the areas that you can address pain points and deliver measurable benefits in a reasonable time frame, such as four to six months. The positive results from the early implementations will help boost commitment at the senior levels and break down resistance at the worker level. Some clients then use the benefits, such as reduced labor required to perform tasks, as a way to reinvest in the next phase of improvements. Action Item: At the end of each significant phase of implementing ITIL, stop to reassess the priorities of the plan and make adjustments as necessary on what to focus on next.

Build Top-Down and Grass-Roots Support Strategic Planning Assumption: Through 2010, 50 percent of organizations will not build sufficient top-down and grass-roots support for ITIL (0.8 probability). CIO or Head of Infrastructure and Operations must be visible champion ITIL is much more about people than technology Change culture to embrace standardization vs. unique solutions Don't ignore the aspects of people change and simply concentrate on process and tools Treat as an Organizational Change Initiative Emphasize "WIIFM" Tailor messages for stakeholder groups Reward process victories vs. traditional hero behavior Communicate Frequently and Consistently Clearly articulate underlying goals and objectives Report on progress – macro and micro Key Issue: What are the critical success factors and practical methods to maximize return on investment? Without both top-down support from senior management and buy-in and support from the worker-level personnel, it will be very unlikely to achieve the goals associated with an ITIL implementation. Many clients lacking one of these key ingredients report their first attempt to leverage ITIL "stalled" and they are regrouping for a second go at it. If senior management such as the CIO or head of IT operations and infrastructure doesn't act as a sponsor and champion for the effort, it will require an inordinate amount of time by the lower-level employees working on building the business case to "sell" it to management. While ITIL does focus on process improvement, it is much more of an organizational change initiative than anything to do with technology. Therefore, it's important that leaders frequently talk about the reasons the organization needs to change, and that they provide the support and resources to make it happen. In many organizations, the technical staff members will react to an ITIL-based process improvement effort as simply the latest management fad, more bureaucracy, more forms to fill out to slow them down from doing their job and so forth. It is important to explain the benefits they will see personally as well as what the organization has to gain. Action Item: Reward good process behavior that improves quality and prevents problems just as the traditional hero who saves the day and fixes a problem was rewarded in the past.

Take a Structured and Holistic Approach to Process Refinement Strategic Imperative: Lay out a plan that includes creating a solid foundation to build upon and includes the necessary steps to manage the transition plan as process changes are rolled out. Structure Program What is the Governance Structure? What pain points are addressed? Measurement and Governance How will you know when you achieve the desired maturity? How will you market and communicate the program value and progress? Task-Level Process Detail Information Requirements Automation Detail = Reference Material = Detail Design = Implementation Adopt Process Taxonomy Common and consistent language! Better alignment of expectations! Adopt Process Reference Architecture Define a conceptual, integrated target state! Clean-sheet design concept! Develop Process Baseline(s) How do the current processes perform? Identify key gaps against best practice! Develop Transition Approach and Plan How should the target state be implemented? Knowledge transfer and training! Build Technical Integration Framework What standards and protocols should be used? How should new automation be assimilated? Implement and Manage Implement the target state! Operate and manage new processes! Build Process Logical Architectures Define the target state detail for each process! Key Issue: What are the critical success factors and practical methods to maximize return on investment? The chart above represents a process utilized by Gartner Consulting on many process refinement engagements with large, complex client organizations. While the average organization pursuing an ITIL implementation on its own may not go to this level of detail, there are several important lessons to learn. The temptation when doing process refinement is to rush to the development of complex process workflows. Unfortunately, there are prerequisites to successful process refinement. It is important to lay out a strategy and plan for the initiative, which includes defining the goals. Next it is important to establish some type of baseline for the performance of the current processes so that improvement can be measured. Of course, there are the core activities of working on defining new processes, or at least specific changes and improvements to the current processes. But, the effort doesn't stop there. Developing a document or Web pages that describe the wonderful new processes adds no value unless people begin to use the new processes. Don't underestimate the level of effort to transition people to the new processes, to acclimate them to proper procedures and to track metrics to provide ongoing feedback on the health of processes.

Leverage Process Integration Tactical Guideline: IT operations groups should invest in improving their processes to detect and respond when incidents occur, and leverage knowledge gained to prevent similar problems in the future. Comprehensive monitoring Iteratively tune thresholds Filter out noise Train operations center staff Automate on call staff notification Perform parallel investigation Designate senior technical leaders Utilize problem isolation tools Prioritize effort based on criticality Dedicate staff to problem management Conduct quick review on all problems Perform in-depth postmortem on significant problems Identify root cause risk areas Identify action items and track to completion Maintain an Availability Hit List Availability Management Smell the smoke Problem Fireproofing Incident Management Firefighting Take action to prevent future problems Discover anomalies as soon as possible, preferably before customer impact Resolve incidents as quickly as possible 1 2 3 Key Issue: What are the critical success factors and practical methods to maximize return on investment? Architecting systems to be highly available is ideal when possible. However, most IT operations groups have to support a large installed base of systems that were not designed with the robustness to support ever-increasing availability requirements. Therefore, it is important to enhance processes to detect anomalies and respond to them as quickly as possible. Implementing monitoring isn't terribly difficult; however, it can result in operators being flooded with events. Clients should iteratively tune their monitoring thresholds and provide training to their operators to ensure they know how to interpret alerts. For critical applications, multiple platform support teams (that is, server, network and database) should be engaged to troubleshoot the problem. This will reduce the mean time to repair by avoiding the delays associated with an issue being sequentially passed from support team to support team as they determine it's "not my problem." Designating a senior technical leader who can coordinate the efforts of all teams will ensure problem isolation occurs as quickly as possible. Detailed postmortems should be conducted on significant problems to identify risk areas that need to be addressed. Maintaining an "availability hit list" identifying the top five to 10 problem areas can help focus attention where it is needed the most. Action Item: Focus on how ITIL processes interrelate with each other and look for opportunities to optimize across processes.

Use Metrics to Drive Behavior and Measure Progress Strategic Planning Assumption: Through 2009, 25 percent of IT operations organizations will significantly enhance their performance by having a well-balanced set of metrics (0.7 probability). People inherently want to do a good job What gets measured gets attention What doesn't get measured drops off the radar People will take action to move a metric in a positive direction People will do "dumb" things People will stop doing "smart" things Focus on analysis and action vs. reporting Select a few key metrics instead of many Measure what will help you improve, not what's easy to measure Create "tiers" of metrics tailored to different audiences Key Issue: What are the critical success factors and practical methods to maximize return on investment? Successful organizations typically have well-defined and -articulated goals and objectives. Translating these goals and objectives into quantifiable metrics is a way to motivate people to try and achieve them. However, metrics can be a double-edged sword. People will modify their behavior to do what they think will help achieve a particular metric on which they are being judged. If the metrics aren't carefully selected, the behavior that is encouraged may actually hinder the organization from achieving its goals. For instance, if service desk agents are measured by the number of calls they handle, they will naturally attempt to keep each call as short as possible to rack up the numbers. This can be damaging to customer service. At the other extreme, if the same service desk agents are judged on the percentage of calls that are resolved without having to escalate, they will keep the customer on the phone for excessive time in the hopes they can solve the problem. By creating a balanced set of metrics, you can ensure that people better understand the desired behavior. They will find ways to avoid either extreme. Metrics are powerful, but tricky. They should be monitored to ensure they are serving as a means of measuring something you want to achieve. Action Item: Examine the metrics you track today to see if they actually encourage the right behavior.

Effectively Staff Crucial Roles Strategic Imperative: Choosing individuals with credibility in the organization and the appropriate mix of skills is vitally important to achieving the goals of your ITIL-based service management transformation initiative. Designate individuals as process owners Assign (virtual) teams of subject matter experts Utilize program or project managers Desirable characteristics for team members – Credibility – Communication skills – Process and customer focus – Ability to deal with ambiguity – Commitment to the cause Key Issue: What are the critical success factors and practical methods to maximize return on investment? We often hear that problems must be addressed from a "people, process and technology" perspective. Yet, being IT people, we tend to focus our attention on the technology the most, we are just beginning to raise the focus on process, and the people part of the equation is often overlooked. For ITIL to be successful in an organization, it is imperative that highly credible people play leadership roles. Organizations will typically name individuals to serve as the process owner for one or more processes. The role of the process owner is to lead the definition of the process, the creation of metrics to track the ongoing health from both an efficiency and effectiveness perspective, and drive for continual improvement. In some cases, this is a dedicated position, but most often it is a part-time role. Others from across the organization such as senior network or server administrators are assigned to work on a virtual team supporting the process owner and helping to champion the adoption of standard processes in the technical community. It's important that an organization doesn't assign these and other critical process roles simply to the resources that are "most available." It's important that individuals that have credibility with both management and the technical staff are chosen, and that they can deal with the ambiguity often associated with process improvement. People will make or break your ITIL initiative

Comprehensive Approach to Improvement Six σ IT Operational Processes — ITIL App. Development Processes — CMM, CMMI, ASL Project Management Processes — PMI 1. Establish the Work 2. Align Roles With Work RACI 3. Identify Appropriate Measures 4. Apply Governance CobiT Key Issue: What are the critical success factors and practical methods to maximize return on investment? Since no process framework represents all IT perspectives today, it is imperative that the IT organization be capable of identifying those frameworks that are a best fit with the work currently being done in that organization, expanding and building on those frameworks as necessary to create a more complete interpretation of the work structure. ITIL is a great place to start, but be aware of how others can be leveraged as well. There are as many interpretations of the processes as there are people who believe they should "own" those processes/tasks. Identifying who participates, at what points in the process and their level of participation (Responsible = participates, Accountable = owns the function, Consulted = advisory role, Informed = notified of work) is often referred to as RACI modeling. In addition to helping organizations communicate participation, RACI models help identify gaps/overlaps in participation that often wreak havoc with organizational performance. Rather than looking for a single source of performance information, organizations should identify which measures accurately represent their performance/quality.

Recommendations Recommendations Keep the scope narrow enough to deliver tangible benefits before losing momentum. Demonstrate senior management commitment repeatedly to inspire grass-roots support. Remember that ITIL is an organizational change initiative. Look for "best of fit" process modifications. Tools are not a substitute for good process. Set attainable process improvement measurement targets. Maintain awareness that process improvement is a means to an end. Keep the scope narrow enough to deliver tangible benefits before losing momentum. Demonstrate senior management commitment repeatedly to inspire grass-roots support. Remember that ITIL is an organizational change initiative. Look for "best of fit" process modifications. Tools are not a substitute for good process. Set attainable process improvement measurement targets. Maintain awareness that process improvement is a means to an end.

Implementing ITSM at DTS Our approach Current efforts

Approach Why we are embracing ITSM Serve our customers more efficiently and effectively Position DTS to take on new services Prepare DTS to manage services across two data centers

Approach Leverage experience/expertise of others Change to an IT service culture Internalize incremental changes

Approach Build an ITSM foundation core Tendency to look at a single ITIL process Keep in mind the linkages between processes

Approach Take actions to address specific organizational issues Completed ITIL Foundations training Began the “change the language” campaign Established the Service Desk function Developed first version of a service level agreement Conducted assessments

Current Efforts Defining Service Request Management process to replace our current SR system Procuring consulting services To support refinement of implementation roadmap To raise the maturity of other processes

How is DTS Implementing ITSM? With multiple projects following project management practices With Executive sponsorship With stakeholder involvement With some communication and a lot more to come With feedback and course adjustments