Focus on Outcomes

In this multi-sourced, multi-partner environment we are in today, we need to focus on outcomes. The contracts, SLAs, and every communication has to be focused on outcomes.

The process must be identifying customer outcomes working backward toward the partners.

When we see poor experience, both from the consumers and employee point-of-view, it is usually due to the lack of alignment with outcomes.

The same is true for establishing an ITSM/ESM program, implementing an ITSM tool, implementing a CMDB, and everything else.

If your organization is not yielding the success you desire, contact Service Management Leadership to hear how we can help your organization.

Value Co-Creation

The ITIL4 concept of value co-creation is novel and practical as it means that both the service provider and service consumer contribute to the creation of value.

As we think about this further, very few things are purchased without input from the consumer. When you have a house built, there is co-creation as each party provides feedback to help the outcome (house) be what each party desires.

This ITIL4 concept should further solidify the need for relationship-building between IT and the consumer. It also means that agreements with third-party partners need to be focused on delivering outcomes the consumer desires.

Back to Basics

We are in a time when the basic fundamentals are overlooked and remain underappreciated.

People are anxious about all that is going on.

Companies are striving to show value via Digital Transformation. The focus is on innovation, not doing the current things better.

In a time when executing well is overlooked and underappreciated, I want to encourage you to focus on doing a great job (executing) and improving your skillset + capabilities.

Incremental improvement is like compound interest. It will grow and build off the previous improvement. This will yield much better results than trying to hit home runs.

Impacts of Not Doing Service Management Correctly

I have been posting about how we’ve misplaced Service Management and pushed it down to SLA enforcement.

I have also frequently posted about how we need to begin seeing Service Management from the consumer’s perspective.

Oddly, these are the same issue:

We have failed to “implement” Service Management correctly and have instead focused on IT metrics and measures, including those to keep external partners in check, all while forgetting that we should be focused on providing services consumers and customers see as valuable, including metrics to measure how well we’re doing.

Ever since ITILV3 came out in 2008, the goal of Service Management has been to offer “Value” as determined by the consumers.

Service Management has not changed.

We have.

No wonder business leaders are unhappy with their IT groups.

The time is now to start doing things correctly.

Example of Poor Experience Management

There are many non-IT examples of Experience Management I love to use to illustrate concepts.

One such is the issue of the walk to baggage claim in the Houston Airport. See link below.

The airport was getting a lot of complaints saying they had to wait too long for their baggage.

Instead of addressing the underlying issue (Experience), the airport re-routed foot traffic the MUCH LONGER way so that the bags would arrive soon after the passengers (bag owners) arrived.

Complaints plummeted.

Which this may be a good short-term way of looking at the problem, how do you think the passengers feel now after the cat is out of the proverbial bag?

Did the airport properly address the Experience problem?

Iterative Approach

One of the themes central to Service Management, Agile, Lean, and many more is an iterative approach.

When we think of our personal lives, we need to take the same thought process. We will not immediately get better at anything.

For example, if you need to lose weight for a special day, you skip a meal or two. When you “need” to lose weight, you introduce structure to help you eat better and exercise.

When you want long-term improvement, you put a structure in place to iteratively improve. Even though you may not see immediate results, it is ok since you are committed for the long term.

This brings me back to the Warren Buffett quote of why he got into finance. He said it was after he understood the concept of compound interest.

This same compounding works in all areas of life.

Effective Change Management

Of the Service Management processes/practices, Change Management/Enablement is usually guilty of being the most bureaucratic.

The rules and order are necessary to reduce risk.

However, there are ways to follow the stated process and still deliver better outcomes.

Let’s face it, even with the heavy reliance on rules and compliance, we still do a relatively poor job at Change success rate. We should be above 98%, but most companies and organizations are well below that. This results I’m a lot of money lost and wasted.

The answer is to:
1. Understand how the consumers and stakeholders consume your process and improve their Experience
2. Execute the process

Need For a Great ITAM Program

In the Deloitte Global ITAM Survey 2021, there are several points of interest, including:

– A vast majority (84%) of respondents believe that they lack a truly effective ITAM initiative in place in their organizations. 

– More than half the respondents believe that cost efficiencies can be achieved by reducing overheads from IT asset inventory management, software deployment, issue tracking, patch management, etc. Fifty percent of respondents also believe that timely and reliable utilization of technology by personnel is a realistic expectation from a focus and investment in ITAM. 

– Nearly three-quarters of respondents (73%) aspire to transform the primary role of ITAM in their organizations to a broader decision-making role with regard to controlling and automating procurement, usage, and deployment of IT assets

Outcomes

Consumers of IT services want one thing: outcomes.

For far too long, we’ve measured process and steps when we should have measured the outcomes.

This is where Service Management and Experience Management join to improve the services.

If you walk into a deli or sandwich shop, you order, then wait for your food.

Take the analogy to IT services.

As the consumer, you are concerned only with the sandwich and the Experience.

As the provider, the deli obtains the ingredients and builds the sandwich, delivers to you, then ensures the rest of the restaurant is clean.

Imagine if we only measured the deli metrics. They’d be incomplete.

But, a combination of both Experience and Service Management leads to an optimal outcome.

Changes in IT Service Delivery

There’s a major disconnect afoot. Every aspect of IT service delivery is becoming increasingly complex while organizations are reducing in-house staff in favor of managed services partners who want to deliver the minimum as per the contract.

For example, without in-house expertise, how are you solving:

1. The increased demands of business stakeholders?
2. The sprawl of technology as every organization becomes a technology organization?
3. The increased complexity of software licensing?
4. The need for improved Experiences?
5. The desire for faster speed-to-delivery while understanding risk?

and so much more.

Service Management Leadership was founded to help organizations prepare for and excel in these types of situations.