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SESSION 402 Thursday, November 2, 10:15am - 11:15am
Track: The Generalist
Overcoming the Barriers to Creating a Robust Service Catalog
Philip Hellerman Sr. Configuration Manager, Toyota [email protected]
Session Description Many organizations want to pursue a Service Catalog initiative. However they are reluctant to do so because of roadblocks including lack of funding, resistance to changing to a new paradigm and lack of understanding of the ROI thata successful catalog brings to the organization. This session identifies many of these barriers and offers a concrete pathway to overcoming them.
Speaker Background Phil Hellerman is the consummate ITSM professional, with broad and deep expertise in ITIL, ITSM, Agile. He has more than twenty-five years of experience in IT operations and infrastructure management, and has tactically led a variety of ITSM initiatives, focusing on service portfolio and catalog development, SACM, and change management, in a number of Fortune 50/100/500 corporations.
Overcoming the Barriers to Creating a Robust Service
Catalog by
Philip J Hellerman
Agenda
• Introduction
• Building Blocks for Creating Services
• Service Costing
• Communications Plans
• Pilot Programs
• Organizational Dependencies
• Keys to Success and Takeaways
Introduction
• Services are an IT Operational Model• Not driven from a tool capability
• Not driven from a process requirement
• Demand Drivers• Customer Frustration
• Lack of Cost Transparency
• Poor IT-Business Alignment
Business Issues Driving Need for Services
• Perceptions that internal IT organizations not meeting needs• Unclear what services are available
• Difficult to find where to request services
• Timing• No way to know up-front how long something will take
• Cost Averse• If you have to ask how much it cost; you cant afford it
Audience Poll
• What business problems challenge your organization?• Customer Frustration
• Lack of Cost Transparency
• Poor IT-Business Alignment
• All of the above
• None of the above
Challenges Facing IT Organizations
• Lack of Cost Transparency • Poor visibility of costs for request frequency and fulfillment options • What type of requests do I get most often?• What service goals should I have?• Am I meeting goals or expectations?• Activity-Based Costing allocation?• What are my fixed and semi-variable costs?
• Poor IT-Business Alignment• IT organizations have a difficult time aligning costs to business consumers• Under continuous pressure to cut costs for shared services• Need to drive traffic to lower cost, self-service channels• Need to show how value is delivered to the business
Key Pillars of Service Development
• IT-Business Alignment• Using the Catalog to define services in business terms • Service planning/forecasting • Service request/ordering
• Cost Transparency• Right-sizing the Supply Organization• Using customer demand• Creating customer conversations based on transparency of choices and cost• Responsibility for consumption placed with the customer
• Customer Satisfaction• Creating a partnership• Define the optimal cost/performance balance• Service Level Tracking
Poll
• Are your IT Services defined in “Business Speak”?• Yes, we have a complete business focused Service Portfolio
• No, but we do have a “Technical Speak” Service Catalog
• We have just started defining services
• We haven’t started yet but plan to soon
• No we don’t plan on defining services in “Business Speak”
Building Blocks for Creating Services
Building Blocks for Creating Services
• Service Portfolio
• Service Catalog
• Services Structure
• Taxonomy
• Service Catalog vs. a Request Portal
• Defining a Service
What is the Service Portolio
• Identification of capabilities managed by IT
• Service Lifecycle Management- Pipeline- Live or available- Retired
• Executive view
• Maps to business requirements
• Allocates resources and risk
• Identifies investments made by IT
What is the Service Catalog?
• Structured interface describing all Live IT Services• Visible to “partners”• Provides Service Information
• Deliverables e.g. SLAs
• Prices
• Contact points
• Variety of Catalogs can exist• “Actionable”
• Technical Service Catalog• Business Service Catalog• Project Catalog• Localization Catalog• Supplier Catalog
How Services be Structured?
• Structure• Component; equivalent to a Configuration Item (CI)
• IT System
• Component• Stand alone
• Aggregated with others to form an IT System
• IT Service• Composed of 1 or more Components or IT Systems
• Can be priced
Taxonomy
Mammal
Carnivore
Dog
Service Family
Service Category
Service Name
Biological Taxonomy IT Service Taxonomy
IT Service Taxonomy
• Service Family• Highest level of the Service Taxonomy
• Identifies the general classification of those Services below it
• Example - End User Serivces
• Service Category• Supports a more specific and refined classification of the Service
• Example - Collaboration Services
• Service Name• Identifies the Service by its common name
• Example - Instant Messaging and Email
Services are Not Requests!
Service• Strategic
• Aggregated capabilities associated with a specific selection; less frequently performed.
• Employee Onboarding
• Server Provisioning
• Complex scope, aligning business requirements with IT capabilities
• ITIL Alignment: Service Strategy and Design
• Price, charge backs and show backs can be used as levers to influence demand
• Defined as a Configuration Item (CI) in the Configuration Management System (CMS)
Request• Tactical/transactional
• Single, low cost transactions; frequently performed.
• Access to an environment
• Software install
• Specific scope; aligning tasks and activities performed by IT with a list of routine requests
• ITIL Alignment: Service Operations
• No capability to influence demand.
• Not recorded as an CI; just executed.
Service Portfolio to Service Catalog Analogy
Phillippe the Chef unpacks the ingredients and separates them by type of item; meat,
vegetables, spices etc.
The Global IT organization unpacks the ingredients and separates them into
components; labor, software, licenses. These components are called Configured
Items (CIs).
The Eatery
Phillippe the Chef creates a menu item, prices it and adds
to the menu.
At Global IT, the Service Owner takes the components and IT Systems, identifies the cost of the components and
combines them into a Service.
Customer pays the bill shown in the menu.
Global IT Customer pays the identified price of the Service.
Phillippe the Chef stores the ingredients and has an inventory
of the ingredients.
At Global IT, the Service Owner knows what components and IT Systems are stored by looking at
the Service Portfolio
Vendors/Suppliers
The Eatery receives ingredients (meat, vegetables, spices etc.) for menu items.
The Global IT organization receives “ingredients” that will be used to
construct a service; labor, hardware, software, licenses.
Customers of The Eatery select items to eat from the menu.
Customers of Global IT select Services from the Service Catalog
The waiter delivers the ordered menu item.
Global IT delivers the Service to the Customer.
Service Types
• Core Service – Provides the basic outcomes desired by the customer • Accounts Payable/Receivable• Payroll• Email
• Enabling Service – Required to deliver a core Service• Time Tracking• Network• Database Administration• Documentation
• Enhancing Service – Enhancement to a core Service• Differentiates the Service• 7x24 Service Desk Support
• Service Package – Collection of two or more Services that have been combined to offer a solution to a specific customer need
• Email combines network, storage, UI software, etc.
Service Deconstruction
End-User Services
Collaboration Services
(Core Service)
Enabling Services Enhancing Services Service Options
Network
Storage
Account Administration
Service Management
Service Desk Support
System Monitoring
Information Security
Service Desk Support8 x 5Service Desk SupportService Desk Support
Mailbox Size (Maximum)2 GB10 GBUnlimited
Wireless DevicesiPadiPhone
iPhone 7
Multi-languageSpanishFrenchJapanese
Service SupportGoldSilverBronze
iPhone 7 Plus
Service Costing
Calculating the Cost of a Service
• Create a working spreadsheet identifying Service Components • Naming Convention
• ServiceName_Components*.xls
• Primary Costs
• Secondary Costs
• Activities Supporting the Service• Identifies all activities or tasks and their costs that are performed to support the Service.
• Spreadsheet
Working Spreadsheet for Component Costs
• Goal• Develop a working spreadsheet for
the Components of the Service
• Results• Naming Convention
• ServiceName_Components*.xls
• Activities Supporting the Service
• Identifies all activities or tasks and their costs that are performed to support the Service.
• Spreadsheet
1. Spreadsheet
2.
PM/Developer/
Tech Analyst
Architect/
Strategy
General
Support
$125.00 $170.00 $55.00
As needed Process EmailReview emails that request adding/permitting user
entitlements or access to specific web sites.Service Name Organizational owner Name Name 0.25 $125.00 $31.25
To
tal L
ab
or
Co
st
Example (Using PM/Developer/Tech Analyst Rate activity takes 15 minutes)
Hourly Rate
Fre
qu
en
cy
Activity Name Description Service Using Team Responsible Primary Secondary
Tim
e S
pen
t in
Ho
urs
(Q
TY
)
Primary Costs Associated with Service
• Goal• Identify all primary costs used or
required to support the Service
• Results• Reduces costs by identifying the
primary costs of the Service
• Limits business and legal risks
Frequency Indicate how often this activity is performed. Values are
typically, daily, weekly, monthly or as needed.
Activity Name Provide a short name for the activity.
Description Describe the activity you are performing in enough detail so
that others could pick up the spreadsheet and know what task
you are performing.
Service Using Identify the name of the Service that uses this activity.
Team Responsible Identify the organizational owner of the Service.
Primary Indicate the name of the primary owner of the activity.
Secondary Indicate the name of the secondary owner of the activity
Time Spent in Hours
(QTY)
Estimate or calculate the time spent on this activity. Be sure to
factor in the frequency of the activity. This information will be
used to determine a part of the cost for the Service
Hourly Rate Identify the hourly rate as provided by Financial Management .
Total Labor Cost This is a calculation of the time spent for the activity times the
hourly rate. This will be become part of the price for the
Service.
Seconday Costs Associated with Service
• Goal• Identify all software and tool costs
used or required to support the Service.
• Results• Reduces costs by identifying
potential software are tools
• Limits business and legal risks related to ownership issues
Tool or Software Name Name of the tool or software used in conjunction with this
Service.
Version Indicate the version of the software or tool.
Vendor Name of the vendor who produces the tool or software. Not
the vendor name used to purchase the tool or software.
Current Status Identifies the current status of the software
Description Provide a brief description of the tool or software.
Team Responsible Name of the team that “owns” the software or tool.
Ownership is typically the cross functional team that
provides technical support for the tool or software.
Primary Indicate the name of the primary owner of the software.
Secondary Indicate the name of the secondary owner of the software.
Cost of Software Purchase price or maintenance cost for the Service.
Number of Users Number of users that use the Service and subsequently the
number of individuals that can be allocated the expense of
the tool or software.
Cost per Element Cost allocated for each user for the tool or software. This is
calculation of the cost of the software divided by the
number of users.
Software and Tools Supporting the Service
Seconday Costs Associated with Service
• Goal• Identify all licenses and their costs
required to support the Service.
• Results• Software licenses are sometimes
required as a requirement to operate the Service.
• Instant Messaging (IM)• Each individual who uses IM must have an
additional license in order to chat. • Legal compliance since the license grants
an end-user permission to use the software.
• Identifies any additional costs associated with the Service
• Total price of the Service may be accurately represented to the customer.
Licenses Supporting the Service
License Identify the name of the license used in conjunction with this Service. This should be spelled out so the name clearly identifies name of the license.
Version Indicate the version of the license. Vendor Identify the name of the vendor who manufactures the
software for which the license applies. This is not the name of the vendor from which you purchased the license.
Current Status Identifies the current status of the license.Description Provide a brief description of the license.Service Using Identify the parent Service that requires the license.Team Responsible Identify the name of the team that “owns” the software
or tool. Ownership is typically the cross functional team that provides technical support.
Primary Indicate the name of the primary owner of the license. Secondary Indicate the name of the secondary owner of the license.
Cost per License Indicate the cost for each license.Maintenance Cost Indicate the maintenance cost for the license, if any.Number Users Identify the number of users who have the license.Cost per Element Calculate the cost per license. This calculation should
include the maintenance cost.
Seconday Costs Associated with Service
• Goal• Identify external suppliers and their costs
that are required to support the Service.
• Results• External Suppliers; typically a Third Party • Responsible for supplying Services that
are required to deliver IT Services. • Examples
• Commodity hardware
• Software
• Network/telecom providers• Outsourcing Organizations.
• Contracts with these external entities are known as underpinning contracts.
External Suppliers Supporting the Service
External Supplier Name The Managed Service Provider name.
Supplier Service Name Name the Supplier uses for its Service.
Version Optionally, identify the version of the
Supplier’s Service.
Current Status Current status of the license.
Description Briefly describe the Suppliers Service.
Team Responsible Team that “owns” the relationship with
the Supplier. Typically it is the cross
functional team that works with the
Supplier.
Primary Primary contact for this supplier.
Secondary Secondary contact.
Contract Cost Cost of the Managed Services contract.
Maintenance Cost Maintenance cost for the Managed
Services.
Number Users Number of users who use the Service
provided by the Supplier.
Cost per Element Calculate the cost per license. This
calculation should include the
maintenance cost.
Type of Costs• Direct Labor - Assigned to or
associated with the individual chartered with either creating or supporting the specific Service.
• Fixed Cost (Direct) - Expenses that do not change. Can be traced and assigned to the specific Service.
• Direct Overhead Cost – Costs except for direct labor, direct materials, and direct expenses. Example: accounting fees, advertising, depreciation, interest, legal fees, rent, repairs, supplies, taxes.
• All Other Cost – Costs not classified as a direct or fixed costs. Example: cost for annual software maintenance, depreciation or administrative expenses.
• Fixed Cost (Indirect) - Costs that do not change regardless of the amount of the Service that is used by the Business Customer. Example: rent Allocation to the Service of the share of the Fixed Cost.
Communications Plans
Communication Plan
• Key to Success• Constructing • Strategy• Types of Communications
• Leadership• Stakeholder• Testers• End Users• External Suppliers• Others
• Milestones• Schedule
Sample Communications PlanWeek Type Content Audience
0 Email Announcing Project
Progress to Date
Schedule for Kickoff Meeting
Contact Information
1 Web Meeting
Kickoff Meeting
Reviewing the Communications Plan
Calendar and Milestones
Q & A Session
Communication – End-of-week
Reiterated Q & A
Any weekend activities
Summary of weeks activities
Look ahead to next week’s activities
2 Email Communication – End-of-week
Introduce UAT schedule
Any weekend activities
Summary of weeks activities
Look ahead to next week’s activities
3 Web Meeting
UAT Meeting
Demonstrate UAT process
Review UAT schedule
Q & A Session
Communication – End-of-week
Reiterated Q & A
Re-inforce UAT schedule
Any weekend activities
Summary of weeks activities
Look ahead to next week’s activities
Week Type Content Audience
4 Email Announcement that UAT Begins
UAT schedule
Communication – End-of-week
UAT progress
Any weekend activities
Summary of weeks activities
Look ahead to next week’s activities
5 Web Meeting
UAT Progress
Q & A Session
Communication – End-of-week
Reiterate UAT Q & A
Announce end of UAT
Any weekend activities
Summary of weeks activities
Announcement of GO-LIVE
6 Email
Web Meeting
Web Meeting
Communication
Go-Live Date
Schedule Web Meeting
GO-LIVE Approval
Leadership Review
Approval
Communication of Approval
Announcment of Go-Live Meeting
Meeting
Q & A
Identify support call-lists
Pilot Programs
Pilot Program
• Essential for success
• Results in an implementation with limited risk
• Needs a Focused Plan Detailing• Estimated timeframes and participation
• Including milestones
• Identification of risks, mitigation steps and dependencies
• Roles and responsibilities for execution
• Transition plan at conclusion of Pilot
• Identification of KPIs for each objective and goal, which are designed to test:
• Identification of control points to be monitored
Organizational Dependicies
Organizational Considerations
• Service Owner is the key• Responsibility for daily care and feeding of the Service
• Empower ownership
• Responsible for continual improvement of the Services
• Primary stakeholder in all of the underlying IT processes that enable the Service
• Important to include Financial Management
• Empower Individuals• Ownership ensures success with Services
• Clearly define organizational roles and responsibilities
Keys to Success and Takeaways
Keys to Success
• Services are an IT Operational Model• Not a tool implementation
• IT acceptance of the cost model is most challenging• Work with the Financial team to develop a cost models
• Select “low hanging fruit” for the first Service Pilot
• Acknowledging differences between Requests and Services
• Determine the organizations process maturity
