1. Quint Wellington Redwood ©2002 business value through IT performance Performance Based Service Management (PBSM) “A new approach for quick & measurable business performance improvement” Dragana Mijatovic MSc, MBA Senior Consultant Quint Wellington Redwood

2. Quint Wellington Redwood ©2002 business value through IT performance The ITIL implementation Process-based Implementation Key Unit of planning: process Key Success Indicator: maturity improvement Implementation style:  Working groups working per process  Often experts hired to design ITIL processes  Often tool experts hired to configure and implement the Service Management Tool  Traditional discussion on which process first

3. Quint Wellington Redwood ©2002 business value through IT performance The challenges of traditional ITIL implementations No goal/focus Focus on individual processes with a lack of integral overview Too many KPIs Unprepared management team An inconsistent organization No Communication and Management of Change Plan Processes ITIL compliant, but customers still not satisfied

4. Quint Wellington Redwood ©2002 business value through IT performance Business Market IT Customers Reliable Service No Service Outages No IT Outages New Services Quick Time to Market of Changes New Use of IT Service + Price + Customer = Perceived Value Improvements Service + Price + Customer = Perceived Value Serving Customers

5. Quint Wellington Redwood ©2002 business value through IT performance IT Services and Value Drivers 1. Lost Production Hours 2. Time to Market of Changes 3. Effectiveness of Changes 4. Quality of Plans 5. Number of Proactive Changes No IT Outages Quick Time to Market of Changes “Maintain current functionality” “Provide new functionality” “Give advice on current and new functionality” New Use of IT Management Imperative: Communication with the (IT) Customer

6. Quint Wellington Redwood ©2002 business value through IT performance Calculating Lost Productivity A. No. of incidents and resolution times B. Time that incidents are open C. Time that IT customers cannot work D. Excess cost and lost revenue  

7. Quint Wellington Redwood ©2002 business value through IT performance Actual Case 5 billion euro global company 150 IT staff Over 4500 users 50 locations 3 IT Shared Service Centers

8. Quint Wellington Redwood ©2002 business value through IT performance Net cost to business January to December 2008 January to May 2009 4.4 mill 3 mill 0.78 mill

9. Quint Wellington Redwood ©2002 business value through IT performance Results: Incidents Explanation Backlog  Reduced from 483 (1 Dec 08) to 6 (22 May 09)  Reduction of backlog is not just administrative  Some incidents translated to problems (approx. 30) Time to Repair  Reduced  Normal distribution of performance  Goal: maintain current performance, reduce MTTR of low incidents Number of Incidents  Problem Management

10. Quint Wellington Redwood ©2002 business value through IT performance Customer Results Reduced lost production hours by over 85% Cost of IT disruptions reduced by over 82% Improved service level performance to over 90% of calls resolved with reduced timeframe IT employee involvement increased (better understanding of their contribution to the business)

11. Quint Wellington Redwood ©2002 business value through IT performance Getting started Create a group of people who have ITIL knowledge Implement the Help Desk Implement the Service Management Tool Start registering incidents and service requests Define standard changes For non standard changes implement your accept, approve, authorize steps Take your deadlines seriously and manage them

12. Quint Wellington Redwood ©2002 business value through IT performance Way of working

13. Quint Wellington Redwood ©2002 business value through IT performance Typical Project Activity The following activities will be carried out:  Step 1 Measure: Measure performance based on Value Drivers  Step 2 Analyze: Determine areas of improvement using team members observations in combination with the Value Driver measurements;  Step 3 Plan Activities: Determine measures to improve performance and assign actions to the members of the Improvement Team;  Step 4 Communicate: Explain the findings and the way forward;  Step 5 Execute: Execute performance improvement measures Stage 3 Performance Improvement Stage 2 MOC Preparation Stage 4 Advanced Control Stage 1 Project Start-Up

14. Quint Wellington Redwood ©2002 business value through IT performance Performance Based Service Management Measurable, fact based, result- oriented way of improving IT services delivery, aligned with business objectives Steps beyond ITIL by limiting the number of business- focused IT KPIs, called the IT Value Drivers Radically improves IT Organization capabilities in a short time with easily and unambiguous measurable results It is a repetitive method building on previous achievements to improve step by step – a defined evolutionary approach Uses available resources

15. Quint Wellington Redwood ©2002 business value through IT performance Characteristics of PBSM Quick Wins, Business results driven  2 week incremental result windows ongoing PBSM is built on a core of Management of Change  The product is sustainable, long lasting  Facilitates skills transfer to the organization  Drives positive organizational change through objective approach, quantitative measures, fact based PBSM is a 'fit for purpose' use of industry recognized best practices (ITIL, ISO20K, PRINCE2, Lean Six Sigma)  Innovative  Practical  Measurable  Customizable for each engagement

16. Quint Wellington Redwood ©2002 business value through IT performance PBSM: Market Proven Methodology “This project has delivered the CBS the necessary building blocks to improve our productivity. The approach, developed with Quint (reporting, assigning actions for improvement and execution) is applicable to all circumstances and the building blocks can be used over and over again.” “Quint’s advisors have the know how of the best practices in this area and aren’t afraid to get their hands dirty. We now score an 8 or higher in terms of customer satisfaction and we have Quint to thank for that!” PBSM elements in conjunction with ITIL v3 are currently being implemented in a major Greek services organization

17. Quint Wellington Redwood ©2002 business value through IT performance “Teach a man to fish… ” “Give a man a fish; you have fed him for today. Teach a man to fish; and you have fed him for a lifetime”

18. Quint Wellington Redwood ©2002 business value through IT performance Quint Wellington Redwood www.quintgroup.com THIS DOCUMENT CONTAINS PROPRIETARY INFORMATION, WHICH IS PROTECTED BY COPYRIGHT. ALL RIGHTS RESERVED. NO PART OF THIS DOCUMENT MAY BE PHOTOCOPIED, REPRODUCED OR TRANSLATED TO ANOTHER LANGUAGE WITHOUT THE PRIOR CONSENT OF QUINT WELLINGTON REDWOOD, AMSTERDAM © Copyright 2009 Quint Wellington Redwood