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.

Improving SLAs

As we talk more and more about Experience Management, please keep in mind that it is a complement to Service Management and the current SLAs and metrics.

It will not replace them. Rather, it offers context from the consumer’s perspective.

Critical Success Factors

The topic of Critical Success Factors is not discussed enough. We need to understand the criteria for success before embarking on the initiative.

Below is another excerpt from my book, ITIL4: The New Frontier.

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In every part of our lives, we have Critical Success Factors (CSFs). A CSF is a leadership term for an element that is necessary for an organization or project to achieve its mission. As the name might suggest, CSFs are things that must happen for the initiative to be successful. When considering whether an ITIL4 initiative is successful, there are a few CSFs relevant to every organization and a few more that are organization-specific. If we think of ITIL4 from a business standpoint, what got us this far (in terms of processes and metrics) will not get us to where we want to be. ITIL4 enables new and different capabilities. We then must find a way to measure the new capabilities and outcomes.

Here are a few broad CSFs to consider. There are many more we could include, but these are the ones that are consistent across most organizations.

·        Is there organizational and leadership support?
·        Does leadership understand the value gained by adopting ITIL4?
·        Are goals in place for the initiative?
·        Are the goals measurable?
·        What other measures are in place?

·        Are viable metrics and measures in place to measure improvement?
·        Are adequate resources (personnel, monetary, and technology) available throughout the life of the ITIL4 initiative?
·        Is there a good balance of people, process, and tools?
·        Is the culture receptive to the change?
·        Is there enough in-house expertise to be successful long-term?
·        Are you able to identify and assess the current state as a starting point and measure growth against it?
·        Is there a “front door” to IT services (e.g., Service Desk, ITSM tool, etc.)?
·        With the focus on iterative improvement, is there a culture for improvement?
·        Is scope defined (e.g., practices, CMBD configuration items, and future scope placed on a roadmap)?
·        Are all stakeholders identified and engaged?
·        Is there a mechanism for stakeholders to provide feedback? Is it accepted and considered?
·        Is Customer Experience and Satisfaction measured or will it be in the near future?
·        Will training be developed for all stakeholders?
·        Does the Service Management organization have the appropriate level of Governance?

·        Do all service providers – internal and external – use the same processes and practices?
·        Is the organization able to pivot and alter course as business objectives change?

Impact of Experience on the Bottom Line

As I learn more about the applications and implications of Experience Management – and its potential impact on IT Service Delivery – the Return on Investment is unmistakable.

It has been proven that improved experience drives better services which brings money savings and increased funding in the future.

The secret is understanding the service delivery from the consumer’s perspective. This should permeate the entire breadth of IT services.

Let me know if you want to learn more about Experience Management.