Tag Archives: CIO

AI, Digital Transformation, EX, Human-Centered Design, Leadership

Technology is Easy. Experience is Hard. Here’s How to Get it Right.

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There is a tendency within many organizations to take a “technology first” approach to solve every business challenge. In more cases than not, this approach simply creates more challenges and friction within organizations; it is a very short-sighted view.

Organizations do need technology – without it, organizations cannot compete in the digital economy.

But there is a lot of FOMO in today’s business technology environment, valuing speed over strategy.

The often-ignored aspects of rapid technology implementation

When an organization prioritizes speed of implementing technology, it usually results in some significant issues being ignored. Issues such as:

  • Changes to the organizational operating model. Technology changes the enterprise operating model by reshaping how the whole business creates, delivers, and captures value across structure, processes, people, and governance—not just how IT runs.
  • Impact of change on people. Organizations often underestimate, if not ignore, the impact of technology implementation on the people the technology was intended to help.
  • The weight of technical debt. Unless governance keeps pace with technology introduction, rapid introductions of technology can introduce new technical debt in system architectures, data, and model lifecycle. At the same time, many organizations ignore the impact of existing technical debt from legacy systems, customizations, and integrations.

Experience enablement ensures successful technology implementations

Think about it – in the digital economy, all companies have some level of technology enablement. But this ever-increasing rush to implement technology out of the fear of being left behind will have negative consequences – unless the fundamental challenges noted above are addressed.

But I believe that success with technology implementation depends on a single critical factor – the people that use that technology. This highlights the need for a good human experience, both between organizations and their external stakeholders as well as the stakeholders within those organizations.

I am convinced that the experience – the total end‑to‑end journey and feelings of a person interacting with a company or product –  is the differentiating factor for organizations in the digital economy. But if technology implementations do not enable that differentiating experience, those organizations will not realize their full potential in the digital economy.

Can an organization achieve its strategy, the demand for speed and agility in the marketspace,  and address the need for a good experience for those that interact with technology? The answer is yes – but organizations first must slow down to go fast.

Four Steps to Slow Down and Accelerate Success

How can an organization meet the demands for speed and agility in the market space, yet ensure that technology implementations enable the right experience? It can be done – if organizations first slow down to go fast. Here are the four steps organizations must take to slow down to accelerate success.

  • Digital business strategy – A well-defined digital business strategy is a critical first step for organizations wanting to leverage technology to deliver business outcomes and value. A digital business strategy ensures that the appropriate technologies are identified for achieving those business results.
  • Mapping value streams – A value stream map shows how value flows through an organization – and the systems and technology that enables the flow of value. When organizations understand their value streams, they can identify and address any areas of friction resulting from the use of technology.
  • Define proto personas – Proto personas help organizations understand the goals, needs, and behaviors of the consumers that will be using their products and services.
  • Journey mapping – Whether it’s a customer or an employee, it’s critical to understand the experience of people’s interactions with an organization. Use those proto personas to produce journey maps. Journey maps depict the touchpoints and experiences – and the impact of technology (good or bad) – humans have while interacting with an organization.

Technology without delivering the right experience is a recipe for failure

As I’ve written before, if technology implementations do not enable that differentiating experience, those organizations will be left behind in the digital economy. But admittedly,  organizations taking a “tools first” approach to business challenges is nothing new.

But, delivering that right experience should not be left to chance. A “tools first” approach may address one area of concern but typically will miss other areas of concerns. Different consumers have different expectations of the experience they have with organizations. Implementation of technology without a well thought and integrated business strategy results in wasted time, money, and resources. Such an approach usually results in needless complexity. The different value streams within an organization have different requirements for velocity. Technology solutions must accommodate those requirements.

These are leadership issues, not technology issues. And it takes courage to stand in the face of well-intentioned but misguided demands for rapid technology implementations.

The best way to ensure success in the digital future is to plan for that future. Defining the digital business strategy, mapping value streams, understanding who will be interacting with your organization using proto personas, and journey mapping provides a clear path to success in the digital age.

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AI, ESM, Leadership

From IT Support to Enterprise Nerve Center: ESM Is the CIO’s AI-Era Edge

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In this recent CIO.com article, Mike Blandina, the CIO at Snowflake, made some predictions regarding the CIO role. As one would expect, AI adoption is a significant part of Blandina’s predictions, but there are a few details within his predictions that I found interesting:

  • The need for governance frameworks – As organizations adopt AI-enabled capabilities, they must also adopt responsible AI practices. CIOs will be held accountable to implement governance frameworks that span the entire AI lifecycle, with clear ownership, regular audits, and documented risk assessments.
  • Enterprise-wide innovation – The CIO role will shift from ‘IT’ to ‘ET’ – enterprise technology The traditional IT metrics will still matter, but CIOs will increasingly focus on business outcomes. The IT function becomes less about infrastructure and more about delivering intelligence.
  • Technology must move from only support to business-critical – Blandina concludes his article by stating that “successful CIOs will be those who elevate technology from a support function to the central nervous system of the business.”

Admittedly, these are all topics that have been long discussed. What is different now?

At the risk of stating the obvious, the difference now is the business demand to adopt AI-enabled capabilities. This demand represents a significant opportunity for CIOs to transform the role and reputation of IT. Now is the time to act.

Are you ready for the new (renewed?) expectations of the CIO role? Can your IT organization elevate its thinking from just developing and implementing technology solutions to delivering business outcomes?

If not, enterprise service management (ESM) may be the solution.

Why ESM is the solution

ESM is a way to meet the new expectations that organizations will have of CIOs. While ESM leverages the principles of IT Service Management (ITSM), true ESM is not just extending IT workflows into other departments within an organization. ESM is an organizational capability for holistically delivering business value and outcomes, based upon shared processes, appropriate technology, increased organizational collaboration, and better communication across the organization.

As I’ve said before, when done well, ESM drives greater operational efficiency, fosters cross-department collaboration, reduces costs, enhances customer satisfaction, and increases an organization’s ability to adapt quickly to changing business needs. It also strengthens governance and compliance, while the improved service delivery resulting from effective ESM enables a truly differentiated customer experience.

Don’t fall for “imposter ESM”

Unfortunately, many organizations have adopted what I would call “imposter ESM”. For example, many organizations have fallen into the trap of trying to extend IT-oriented workflows into other parts of the organization. Other organizations have used the guise of an ESM initiative to spread the costs of an expensive ITSM tool across the organization. Still others take a technology-first approach and install department-specific modules intended to manage workflows within those departments.

None of these approaches deliver the benefits of real ESM adoption. The CIO can avoid imposter ESM by following these tips:

  • ESM is best considered as a business strategy designed to deliver value and improve both the employee and customer experience across the enterprise.
  • ESM requires that organizations break down silos and focus on end-to-end value streams, which involves collaboration across departments.
  • ESM establishes the foundation for compliance to governance policies to ensure consistent and measurable business outcomes and value.

Good ESM positions organizations to take advantage of AI-enabled capabilities. But it’s more than that – good ESM positions the CIO to establish IT as a business-critical capability, driving appropriately-governed technology to deliver business outcomes.

Elevate Enterprise Value through Strategic ESM Foundations

These critical success factors for ESM also provide a great foundation for effective ESM.

  • Understanding how value is perceived within the organization – Talk to other business leaders to understand how they perceive value – and how to measure and report on that value.
  • Understanding and mapping organizational value streams – Value stream mapping provides visualization of how value flows through the organization. A value stream map also depicts where collaboration is required for the customer to realize value.
  • Understanding the journeys of customers and employees – Journey mapping provides insights into the experience of individuals as they interact with the organization. Journey mapping provides the foundation for delivering differentiated human experiences, both within and external to the organization.
  • Committing to continual improvement – Formally build continual improvement capabilities to ensure that the organization can react to changes in the business environment in a timely fashion to ensure on-going value to its stakeholders.

AI adoption can be transformational with an organization. But, as with any transformational and impactful solution, there is no “magic wand.”  Technology – like AI – only amplifies the current state of workflows and behaviors – right or wrong. Outcomes come from the interactions of people, systems, and tools – not just tools alone. Good business results come from an effective strategy for achieving objectives – not from chasing technology without clear business goals and defined success measures.

Good ESM is no different. But the benefits of good ESM are more than establishing a holistic and collaborative approach for delivering business value and results. Good ESM provides the foundation for governance, fuels innovation by understanding how work gets done, and shifts the role of IT from technology support to business enabler.

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Business Relationship Management, ITSM, Leadership

CEOs want tech results, not tech talk – Here’s how to deliver

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While many CEOs know that the use of technology is crucial for business success, what they don’t know or understand how technology use contributes to that success.

According to this CIO.com article, CIOs reported that less than 2% of their CEO bosses understood the totality of the technology stack.

And in today’s $24 trillion global digital economy, that is a problem.

The right technology solutions can enable competitive differentiation for any organization. But organizations need to have the right skills and mindset in place to enable, support, and deliver that differentiation.

Investments in technology is expensive – a wrong decision can cost an organization significantly. Those poor decisions can often be traced to the lack of an integrated business and technology strategy. In some cases, the IT strategy is developed separately from business strategy .  IT doesn’t help itself either – how can CEOs decide where to make investments in technology when IT proposals discuss technology benefits, such as uptime or features, rather than business results like growth, margin, or customer experience?

According to this McKinsey article , many CEOs struggle to understand exactly how IT initiatives and investments drive revenue, customer experience, and efficiency. As a result, IT looks like a cost center. But more than that, projects and investments in technology often become fragmented and underused, resulting in missed opportunities for new products, services, or operating models. One need look no further than the well-documented technology “misses” of companies like Kodak, Blockbuster, and Nokia.

Good service management is the solution

Good service management can solve the technology understanding gap between CEOs and CIOs. But many CIOs often think “we’ve tried that and it didn’t solve this problem.”

But did those organizations really implement good service management? Good service management is not just standing up a service desk and installing a ticketing and workflow tools. Good service management is not just utilizing service management practices to manage IT.  Good service management facilitates value realization and business results.

Think about it. Without alignment and integration with the rest of the organization, the IT organization cannot deliver the value and results expected from investments in technology. And this is exactly what good service management does. Good service management is much more than just implementing some tool and standing up a service desk. Good service management requires a holistic view of how technology enables value realization and business results.

Good service management starts with (I’ve said it before) alignment of IT with business goals. Adopting practices like portfolio management, business analysis, relationship management, and strategy management prevents implementation of “technology for technology’s sake” (like rushing to adopt AI-enabled capabilities for example), helps prioritize technology investments and IT efforts based on business impact.  Doing this will give CEOs insights into how technology enables return on investment and delivers business results.

But adoption of these practices only establishes the needed scaffolding for enabling and delivering the business value and results expected by the CEO from investments in technology.

McKinsey suggests two actions that every CIO must take with CEOs to close the understanding gap. Coincidentally, these two actions are foundational for good service management.

  • Meet with the CEO to clarify business outcomes, not technology. Identify and agree on 3-5 business outcomes where technology much help (such as growth, risk, customer experience) and capture these outcomes as plain, non-technical language statements.
  • Map IT to these outcomes by creating simple, one-page views that link business goal to technology capabilities to 2-3 simple measures that the CEO can track.

These two actions will have the following impact on service management and IT:

  • Identifies the right success measures for IT. Many IT organizations measure success in terms of technology (uptime, time to resolve, volume of tickets); measures that are meaningless outside of the IT organization. IT success should be measured and reported to the CEO in terms of business results – reduced waste, customer experience, and business growth.
  • Shifts the perception of IT as being a “cost center” to a “value enabler” by providing the CEO with regular visibility into how IT is enabling business outcomes.

Three things you can do now to help the CEO

  • Build better business relationships. Often the only interactions between IT and other business colleagues is limited to project meetings or interactions with a service desk professional. If you are an IT professional, when is the last time you met a colleague outside of IT for coffee to talk about how technology helps – or gets in the way of – doing work and delivering business results? These meetings will provide huge insights into how technology is perceived within the organization.
  • Define services in terms of business processes and outcomes. Stop putting off or ignoring this task. Services facilitate the realization of business results. The more the IT organization defines services in terms of business processes and outcomes, the less the IT organization will be perceived as a “cost center” and barrier to getting work done.
  • Start reporting the right things in the right way. Stop reporting metrics outside of IT that have no meaning to anyone outside of IT. Start reporting metrics like reliability and cost avoidance that are related to business objectives.

Technology doesn’t drive success – understanding how it enables success does. CEOs and CIOs who close that gap through strong service management transform IT from a misunderstood cost center into a true value enabler.

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AI, Leadership

Suffering from AI fever? Here’s why the big picture still matters

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Is your organization exhibiting “AI fever”? “Symptoms” include people asking questions like:

  • “How can our organization take advantage of AI-enabled capabilities?”
  • “Where can we leverage AI to automate our workflows?”
  • “How can we use AI to improve efficiency and reduce costs?”
  • “What happens if our competitors beat us to the market with an AI-based solution?”

These are legitimate questions. Effective adoption of AI-capabilities is changing the way that companies work, by driving workflow efficiencies and automation, providing data analysis and insights that weren’t before possible, improving work quality, personalizing experiences, and more.[i]  The market is crowded with solutions, all of which make it seem so simple to fully take advantage of AI capabilities.  It’s easy for organizations to get lured in.

But the potential results from AI adoption don’t excuse organizations from doing the needed critical thinking before making solution decisions. Before jumping on the AI bandwagon, organizations must answer questions like:

  • What problem will AI solve for the organization?
  • Do customers want an AI-based solution, and if so, how should it help them?
  • Is the necessary foundation in place within the organization to benefit from AI adoption?
  • How will AI fit into the “big picture” of the organization?

The big picture must come first

Understanding the big picture must come first before considering any AI solution. Why is having a holistic (or big picture) approach so important, especially with AI adoption?

First, AI adoption can have a significant impact on the entire organization. Many organizations only think of AI as something that will only impact IT or technology, but the impact can be much more than that. AI impacts multiple areas of an organization, and having a holistic approach and strategy ensures that AI initiatives are aligned across all parts of the organization.[ii]

Without taking a holistic approach to AI adoption, organizations risk implementing a point solution within a workstream that is neither sustainable nor enhances organizational efficiency. While there may be local benefits, the actual outcome is that the overall workstream becomes less efficient. Implementing a solution in this way would be like speeding up only the middle of a conveyor belt. While widgets may move along faster on the conveyor belt, the constraints at the beginning and end of the conveyor belt become highlighted and problematic.

Data and ethics are two of the more significant considerations for the effective use of AI. AI needs data – lots of it – and that data must be of high quality and integrity if results are to be trusted and reliable. The use of data also presents ethical considerations, with issues like data privacy, bias, and appropriate use. These factors mean that data quality and data governance are also part of the AI big picture.[iii]

To fully use the capabilities engineered into AI solutions, these solutions typically require training to function effectively. People within an organization must develop skills and competencies to use the solutions. But here’s perhaps an unexpected twist – not only do the people using the solutions require training, but the solution itself requires training as well. These solutions must be trained using the datasets provided by the organization and tailored for organizational-specific tasks and use cases. Having people with the skills and knowledge for data preparation, tuning algorithms, data visualization, and problem-solving are needed for training the AI.

AI adoption challenges

While AI can bring a lot of capabilities to enhance an organization’s performance, it is far from a “magic wand.”   Here are a few challenges organizations are facing with AI adoption.

  • People. Will people feel threatened by AI adoption? Or will they feel enabled? The best AI capabilities are worthless unless they enhance the ability of people to do their work. Effective and comprehensive organizational change management as part of AI adoption is critical.[iv]
  • Good AI will not fix broken processes. Having well-defined processes is the foundational structure for AI adoption. It’s straightforward: bad processes result in poor AI adoption and poor outcomes. Without clearly defined workflows, how can an organization identify valuable use cases or strategically expand AI-enabled capabilities, such as automation, or agentic AI.
  • Missing the skills needed for success. This article from ARM highlights the impact of the lack of in-house AI talent is having on AI adoption. Nearly one-half of leaders feel that the lack of skilled talent is a primary barrier to successful AI implementation.

How to treat AI fever

Do you have that big picture view of your organization? Is your organization prepared to take advantage of the right AI capabilities that elevate organizational performance, efficiency, and capability? Now is the time to get ready. Here are four tips for ensuring a holistic approach to AI adoption.

  • Map your value streams. One of the most significant challenges to adopting and exploiting AI capabilities is that organizations don’t understand their value streams, much less have mapped those value streams. Value stream maps depict the big picture of how work and value flow through an organization. It also identifies where constraints may be within the organization. With this holistic understanding of its value streams, organizations can better figure out if AI solutions will enhance performance…or enhance constraints.
  • Focus on ongoing learning and development. “Training as an event” cannot keep pace with the rapid changes in AI capabilities. The rapid pace of AI enhancements demands a continual learning approach to training and development. Adaptive learning is an educational approach that tailors educational experiences to meet an individual’s unique needs, skills, and learning pace, facilitating a continual learning experience.[v]
  • Invest in your current staff. The best source of knowledge about how work is currently done is the people that are doing the work. This is the exact knowledge that is needed to train AI. Invest in reskilling or upskilling current employees in AI concepts and technologies, enabling them to take on new career opportunities that will emerge with AI adoption.
  • Answer the “why.” Building a business case not only answers how and why AI adoption will address a business challenge, but it also drives the needed commitment from senior management for making it happen.

AI capabilities are evolving at a dizzying pace. Having a holistic or big picture view of the organization is the  best way of ensuring that your organization can take advantage of the right AI solutions at the right time to deliver the right results.

[i] “Artificial Intelligence is changing how companies work”, https://www.deloitte.com/ch/en/Industries/technology/perspectives/artificial-intelligence-Is-changing-how-companies-work.html , retrieved April 2024.

[ii] “Why adopting AI needs a holistic approach”,  https://betanews.com/2025/02/03/why-adopting-ai-needs-a-holistic-approach-qa/ , retrieved April 2024.

[iii] Ibid.

[iv] “Adopting AI-driven Change Management: Key strategies for Organizational Growth”, https://voltagecontrol.com/articles/adopting-ai-driven-change-management-key-strategies-for-organizational-growth/ , retrieved April 2024.

[v] “Understanding Adaptive Learning:  How AI is revolutionizing personalized education”, https://elearningindustry.com/understanding-adaptive-learning-how-ai-is-revolutionizing-personalized-education , retrieved April 2024.

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AI, ESM, ITSM

Will AI break ITSM out of its IT operations cage?

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AI is about to break ITSM from its IT operations cage.

Many ITSM implementations are less about service management, and more about IT operations, or IT process management, or IT measures and reports. Here are some examples:

  • To many organizations, ITSM is about a weekly meeting to discuss changes to the computing infrastructure, attended by people that have little qualification or authority to discuss, much less approve such changes.
  • To many organizations, ITSM is about pulling together a group of individuals, sitting them down in front of computer screens and telephones, calling that group of people a “service desk”, then provide little training and less enablement for responding to all IT-related issues or questions.
  • To many organizations, ITSM is about establishing a portal through which consumers of technology can register requests for the IT organization to fulfill.
  • To many organizations, ITSM is about implementing a tool, several out-of-the-box workflows (that may or may not be suitable for the organization) and publishing a few reports that have no meaning to anyone outside of IT.

In other words, for these organizations, ITSM is not about the organization at all. ITSM is not about how people, process, and technology deliver business outcomes and enable business value realization. In these organizations, ITSM is about IT.

AI is about to change all of that.

AI will push ITSM front and center

Frankly, AI can nail (has nailed) down the operational aspects of ITSM. Current AI capabilities are well-suited to take on many of the operational aspects of ITSM, like routing work, resolving simple incidents, gathering, analyzing, and logging information, tracking assets, suggesting knowledge articles to resolve an end-user issue, and more.

And that’s the challenge that introducing AI will have for organizations that adopted ITSM only to manage IT operations. With the use of AI, IT will become increasingly visible to the rest of the organization. As a result, ITSM can no longer be a “back office” activity, but rather “front-and-center” as organizations navigate within a digital world. But are IT and organizations ready?

When IT cannot articulate how its products and services deliver business results and enable value realization (beyond cost savings/avoidance), the answer is “no”.

Why is this a problem?

The fact is that many ITSM implementations have ignored the very practices that would enable the “business value and outcomes” conversation with executives. Practices like portfolio management and service catalog, (real) problem management, and continual improvement, for example.

Because these practices have been ignored, IT organizations cannot discuss topics like service cost models. They can tell you what infrastructure costs, or how much is being paid out on support contracts and licensing costs…but not what makes up the specific costs of designing, delivering, maintaining, and supporting services. They can’t predict how investing in improvements will benefit the larger organization and ultimately the business customer. They can’t correlate business value streams to specific IT products and services that enable business results.

Some implementations have isolated service management activities that should be approached from a holistic perspective. In many organizations, service design activities are typically performed by application development teams that are focused on writing code, but with little or no involvement from those that will be supporting or using the solution post-implementation.  Another example is organizations that perform software deployments to production environments outside of the purview of an ITSM change management practice.

It gets worse. According to this Forrester post, organizations that have invested in ITSM are finding that more and more of those investments are going toward paying additional costs from maintaining the tools rather than improving ITSM capabilities and driving business benefit.

AI will force Service Management to be an organizational capability

Service management has typically been considered an IT function, but in an ever-increasing digital world, that just won’t work. Service management must be an organizational capability.

For service management to be truly effective, it must reflect and support entire organizational value streams, not just the IT portions. Technology is no longer department specific. Technology connects entire value streams within all organizations. But it doesn’t stop there; in the digital ecosystem, it’s technology that connects organizations to partner organizations to deliver products and services. If enterprise-wide workflows that support value delivery all the way to the customer are missing or undefined, the result is a bunch of disjointed, siloed activities that result in a poor customer experience, missed business opportunities, and loss of competitive capability.

AI will manage the operational aspects of service management, and push ITSM out of the back office. Businesses must start now to elevate their organizational service management capabilities.

Breaking ITSM from its IT operations cage

What first steps should organizations take to begin to make service management an organizational capability? Here are some suggestions:

  • Invest in training – One of the challenges with current ITSM implementations is that the people involved in the delivery and support of products and service have not been properly trained in service management concepts. Rather, they blindly follow whatever the ITSM tool does, and do not understand the broader concepts and contexts of “service management.”
  • Map organizational (not just IT) workflows – Develop value stream maps or customer journey maps to illustrate how work moves through the organization or where customers interact with the organization. Include the touchpoints where people, processes, and technology enable the business results and value desired by the organization. These maps capture information that is foundational for developing a service catalog.
  • Identify business measures – Using these completed maps, identify the performance measures that reflect business outcomes and value.

The era of AI is not just an upgrade for ITSM – it’s a complete transformation for organizations.  As AI takes over the operational heavy lifting, ITSM’s true purpose can no longer be confined to just IT.  Instead, service management must evolve into a core organizational capability, seamlessly connecting people, process, and technology across entire value streams to deliver real business outcomes. This shift is not optional; it’s essential for organizations that want to thrive in a digital world where technology is the backbone of value delivery and customer experience.

Now is the time for organizations to break free from legacy mindsets, invest in holistic training, map out end-to-end workflows, and measure what truly matters to the business. By doing so, they can ensure that service management becomes a strategic enabler – one that drives innovation, agility, and competitive advantage in the age of AI.

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ITSM

Why your ITSM house of cards is a bad deal for your business

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Is your ITSM implementation like a house of cards, prone to fail with the slightest disturbance?  Here’s some examples:

  • A request for change that isn’t appropriately vetted yet is implemented within the live environment. Subsequently, that implemented change results in an extended outage of a critical business system.
  • Service interruptions are characterized by frantic efforts to restore service, cause analysis exercises that produce more theater than substance, and lost opportunities for improvement.
  • A seemingly simple service request that requires extraordinary effort and time to fulfill.
  • An IT organization that is surprised when the failure of a third party’s product or service cripples the business.

ITSM, done well, delivers effective and efficient services and practices based on the use of technology.  Done well, ITSM connects IT efforts and technology investments to business results and strategy.

Instead, what many ITSM implementations produce (or reinforce) is siloed behavior, disjointed delivery efforts, lack of transparency, and poor end-user satisfaction. Further exasperating the situation is that in many cases, IT doesn’t even understand how what it does enables business results and value realization.

Why does bad ITSM happen within good IT organizations?

Every IT organization has talented people who are knowledgeable, smart, and have outstanding technical skills. These people are motivated to be the absolute best that they can be and are driven to  succeed. Good ITSM should augment the efforts of these talented people and enhance the overall performance of the IT organization. ITSM should help the IT organization become a valued, respected, and competitive differentiator for a business.

Sadly, this is not the case with many IT organizations. Many implementations have fallen short of achieving the benefits of good ITSM and wasted the talents and efforts of people within IT because the foundational elements needed for success are missing. What are some attributes of a “house of cards”  ITSM implementation?

  • Taking only a “technology-first” approach – While having the appropriate tools are important, good ITSM doesn’t result only from the implementation of technology. With a technology-first approach, ITSM thinking becomes limited to the capabilities of the technology, and not how ITSM should meet the needs of the business.
  • No alignment to organizational strategy – ITSM implementation is about IT, not about how IT efforts and provided technologies enable the achievement of business goals and objectives. Other than justifying the organization’s investment in the selected technology, there is no business case that was developed to help executives recognize the value of the investments in ITSM.
  • No shared and agreed understanding of ITSM benefits – Some organizations believe that ITSM is just something “that the service desk does” for processing a user request or managing an incident. Making a bad situation worse is that many within IT think that ITSM has nothing to do with the work that they are doing.

How did this happen?

There are several reasons why ITSM is no more than a house of cards for many organizations.

Many ITSM implementations suffer from short-term thinking, prioritizing technology implementation over business value and employee experience, or even worse, prioritizing internal IT concerns over business results.

A house of cards ITSM implementation is often the result of inconsistent processes and a lack of governance, exasperated by poorly designed, implemented, and unenforced policies.  As a result, different parts of the IT organization manage its work differently, making transparency into IT difficult.

In most fragile implementations, ITSM was treated as an IT initiative, not a business initiative.  Had business stakeholders been involved from the beginning, ITSM would be business-oriented, with reports and measures that matter. Instead, ITSM became a layer of bureaucracy for interacting with IT.

Regardless of how it happened, there’s been no reason for senior business management to care about ITSM – until now.

Why business executives need to care

Historically, many senior business executives have paid little attention to service management – and understandably so. Reports contained data that had no meaning to executives. Performance metrics produced by IT said one thing, but end-users told a vastly different story regarding their experiences with technology and processes. ITSM was viewed simply as something being done at the service desk. With so many foundational elements missing, many ITSM implementations gave executives little reason to care.

But times are changing – and changing fast.

Businesses are rapidly and increasingly relying on technology to drive the business –  and the customer experience – to new horizons.  With ever increasing frequency, customers are interacting with technology, such as intelligent automation, chatbots, natural language processing, and generative AI, and not with humans.

But without good ITSM, how can an organization ensure that technology is delivering the desired value and outcomes needed by both the business and its customers? There are many known cases (including the UK’s NHS IT program[i], Canada’s Phoenix Pay System[ii], and Knight Capital Group software deployment[iii]) where businesses that ignored good service management practices and have experienced significant and embarrassing failures.

The fact is that today’s digitally driven businesses require good ITSM for business success. The question that was usually never answered remains – how will your ITSM implementation support your business’ strategy?

Today is a good day to prepare for the ITSM of tomorrow

Good ITSM is more relevant today than ever for modern, digital businesses. Here are three steps for moving ITSM from a house of cards to a reliable and solid business capability.

  • Develop a business capability map. A business capabilities map is a visual tool used to depict what a business does, not how it does it. A business capability describes the capacity, materials, and expertise an organization has or needs to complete its work.[iv] One of the things that makes a business capability so interesting from an ITSM perspective is that capabilities have outcomes.
  • Conduct an ITSM capability assessment. Not to be confused with a maturity assessment, a capability assessment evaluates the organization’s service management abilities, capacity, and skills. Do not limit this assessment to IT operations – look at ITSM capabilities holistically, from strategy through design, development, transition, and continual improvement.
  • Do a gap analysis between the business capability map and the ITSM capability assessment. What areas of business capability are well-supported by good ITSM practices? Where are the gaps between business capabilities and ITSM capabilities? What are the impacts of those gaps? What needs to be done differently from an ITSM perspective to meet the demands and requirements of those business capabilities?

Stop relying on an ITSM approach that is built as a house of cards. Completing the above steps will start your ITSM implementation on an incredible transformation to strategic capability, both for the organization and for IT.

[i] Asgarkhani, M. (2022). Failed tech deployment initiatives: Is poor IT governance to blame? European Conference on Management Leadership and Governance, 18(1), 524–528. https://doi.org/10.34190/ecmlg.18.1.728

[ii] Ibid.

[iii] https://dougseven.com/2014/04/17/knightmare-a-devops-cautionary-tale/

[iv] https://www.lucidchart.com/blog/a-quick-guide-to-business-capability-maps , Retrieved February 2024.

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ITSM

Is your ITSM approach looking through the windshield…or at the rear-view mirror?

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“In the business world, the rear-view mirror is always clearer than the windshield.”

Sadly, this 1991 Warren Buffet quote applies to many ITSM implementations. Why?

Because the focus of those ITSM implementations is on what has happened, instead of what is happening.

Think about it. Our respective businesses are focused on the view through the metaphorical windshield. The view through the “windshield” represents both what is happening now and the journey ahead. And while the future is unknown, businesses try to create the future by establishing goals and objectives. From a business perspective, the possibilities and opportunities for success are typically found when the organization is looking through the windshield.

Continuing the metaphor, the focus of so many ITSM implementations is the rear-view mirror – a view of what has happened. Make no mistake – trending and performance reports, monitoring tools that deliver event alerts, and recently-written knowledge articles are important contributors to good ITSM. But those reports, tools, and articles are typically inwardly focused, discussing items and topics that are relevant and meaningful only to the IT organization. In other words, those ITSM implementations are more focused on yesterday and less on the future.

The impact of always looking in the rear-view mirror

Why is the “rear-view” perspective an obstacle for ITSM implementations? I would argue that the perspective of continually looking back is not aligned with business goals and objectives. This is one of the factors between ITSM being perceived as a business enabler versus ITSM viewed as a costly expense.

It comes down to this question – what does your business perceive as “value”? Candidly, business value is rarely – if ever – found by looking in the rear-view mirror. In my experience, businesses perceive value when actions taken within the organization result in achieving business  mission, vision, goals, and objectives (MVGO). Businesses perceive value when the data captured, used, and maintained within the organization produces information that enables timely, fact-based decision-making. Businesses perceive value as innovation, responsiveness to the market, increased revenues and profitability, delivering a differentiated experience, and standing out from competitors.

Shifting the ITSM view to the windshield

Does your ITSM implementation enable your business? How does your ITSM implementation help the organization to achieve its MVGO? For many organizations, ITSM is more about IT and less about their businesses. Few organizations (in my experience) develop and maintain a service portfolio, much less a service catalog. I rarely find ITSM implementations reporting measures that relate to the business objectives; rather, most measures and reports align to internally defined IT performance targets.

I’m not suggesting that IT departments stop supporting and delivering the operational aspects of ITSM. I am suggesting, however, that ITSM implementations expand their scope to include the “windshield”. The mindset must shift from seeing ITSM as a means of control or just implementing some tool. The mindset must shift to viewing ITSM as a business enabler.

This means that ITSM implementations must become more strategic from a business perspective. Strategy is about aligning resources and efforts to achieve organizational goals – in other words, looking through the windshield, not just the rear-view mirror.

Shifting the ITSM view to the windshield

Here are some tips for shifting ITSM from just a “rear-view” mirror perspective to also include the windshield.

  • Learn the business of your business. By understanding the business, IT professionals can make informed decisions, improve their communications with non-IT colleagues and become more proactive in developing technology-based proposals for growing and improving business activities.
  • Understand how people, processes, and technology (PPT) enable business outcomes. How does (or can) people, process, and technology enable the organization to achieve its MVGO? What are the vital business functions of the organization? How does PPT enable those business functions?
  • Think and act in terms of business outcomes. How can (or does) ITSM enable or deliver the business results that impact MVGO? Having answers to this question will help shift the perspective and perception of ITSM to a more strategic and business-aligned capability.
  • Measure and report things that are relevant and meaningful to your business. Frankly, no one outside of IT cares how quickly the service desk responds to requests or how many incidents are closed. Identify, measure, and report on metrics that have an impact on the business of the business.
  • Shift SLAs from an IT operational focus to a business focus. In my experience, what many ITSM implementations call a “Service Level Agreement” (SLA) are neither agreed with anyone outside of IT, or discuss the business impacts of IT services. Unfortunately, this is an approach that is deeply engrained within many ITSM implementations. Begin the shift by working with non-IT colleagues to map a frequently followed value stream. Doing this will result in a mutual understanding of the value stream, the business drivers, and success criteria. Use this information to then document and agree a business-focused SLA for that value stream.

In many organizations, ITSM has not achieved its potential. Part of the reason for that is that those ITSM implementations are too focused on the past and only on the IT organization. What could be possible if those ITSM implementations also look ahead rather than just looking behind?

Need some help shifting your ITSM perspective from just the rear-view mirror to what is happening now and ahead?  Let Tedder Consulting and our proven and impactful approach change your ITSM environment to a business enabler.  Contact us today!

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ITSM, Leadership, Organizational Change

Nothing will change. Unless you change.

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A few years ago, I was invited to conduct an ITSM assessment for an organization. While the request itself wasn’t unusual, it was unusual in that I had conducted an ITSM assessment for that same organization a few years prior. The  IT leadership of the organization had not changed over that time, apart from a different person leading their ITSM adoption efforts. But I was intrigued by the prospect of revisiting a past client engagement to learn whether my previous recommendations had had the positive impact that I had determined was possible.

After conducting interviews, examining their ITSM policies and procedures,  reviewing their IT strategy, and evaluating their ITSM performance reports, I was disappointed to find that there had been no substantial change in their ITSM journey from when I first visited.

I confronted the CIO with my findings. During our conversation, he acknowledged that there had not been much progress in their ITSM journey. He went on to ask if I would simply just tell them exactly what they needed to do, based on my “deep” knowledge of his organization.

I was taken aback. It had been a few years since that first assessment. Over the course of the two engagements,  I had spent about a total of 30 days interacting with the organization – hardly what I would consider a qualification for having a “deep knowledge” of the organization.

So, I took a deep breath, looked the CIO in the eye, and told him that – that I felt that 30 days of engagement over a few years doesn’t constitute a “deep” knowledge of the organization. Further, it was not an issue of not knowing what needed to be done – what needed to be done was clearly outlined in both assessment reports. The issue was that no one – including the CIO – wanted to change.

And then I said it.

“Nothing will change unless there is change.”

And with that, our meeting ended. I packed up my laptop,  left the building, drove away….and  subsequently was not invited back.

Everybody wants change. No one wants *to* change.

I see it all the time. People within an organization get enthusiastic about making a change, improving what is currently being done, expanding and enhancing their capabilities, thinking in terms of possibilities. Excitement fills the discussions within the conference rooms. People leave meetings eager to get started.

And then the time comes for the work that needs to be done to make the change….and sadly, things often go kaput.

What happened?

The 3 U’s of failed change

I’m no psychologist, but from everything that I have read, experienced, and observed about failed change, it seems to come down to the basic human instinct of fear of change. In my experience, that fear of change presents itself in one or more of the following symptoms that I call the “three U’s of failed change”.

  • Unknown – Change pulls people out of their personal comfort zones, where they feel safe. According to this article, this uncertainty feels like failure to our brains, and our brains automatically work to prevent us from failing.
  • Unprepared – Many people resist change because they feel unprepared. Provided training doesn’t really prepare people for the change, and as a result, there is a feeling of loss of mastery. Communications aren’t two-way, so there is no opportunity for feedback or to get answers to questions.
  • Unwilling – Even though people know that processes and systems aren’t working as well as they could, people have become comfortable in their interactions with those processes and systems. They “know” where the issues are, and how to make things work despite those issues. Changes to those processes and systems are perceived as a threat to the personal value of the people doing that work.

These are powerful reasons why change fails, but they are not insurmountable.

How can anything change…unless *you* change?

Is change working through your organization? Are you personally going through change? The answer to these questions is likely “yes”. Organizations are continually changing and evolving. As individuals, we are continually evolving as well. Think about it – what is different about your organization today when compared to two years ago? Compared to two months ago? What events or learnings over that time – both from a professional perspective and a personal perspective – have had an influence on you?

Change is constant – in our lives and in our careers. Here are some tips that I have found useful when experiencing change.

  • Educate yourself. Much of the angst around change is the fear of the unknown. To combat that fear, learn all that you can about what is changing. This will help restore any feelings of loss of mastery.
  • Ask questions. Fill in gaps in your understanding about what is changing. Listen for the “why” – the compelling reason change is necessary, and what success will look like after the change. This will help with any feelings of being unprepared.
  • Try it on. While it takes courage to push through the unknown, leaning into the change and exploring possibilities provides a sense of control. Being a pioneer within the change helps overcome feelings of loss of value. Trying on the change also provides you with valuable insights that you can use to make data-driven decisions about your next steps.

Change is a constant – in our organizations, in our jobs, and in our personal lives. Don’t let change paralyze you – take control. Educating yourself, asking questions, and trying on the change gives the you power and control you need to successfully push through the unknowns associated with change.

 

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Human-Centered Design, ITSM

Can Human-centered Design rescue your ITSM investment?

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Is your organization struggling to realize a return on investment with ITSM?

If you answered “yes”, you’re not alone. Many organizations are not getting the expected return on investment that was expected by adoption ITSM practices. Organizations are facing several challenges to realizing a ROI with ITSM.

  • “IT Operations only” approach. Many ITSM implementations have only focused on ITOM (IT Operations Management) aspects, such as managing user support requests, resolving incidents, or implementing changes. Services are not defined in terms of business outcomes or business value, making it difficult to determine the holistic benefit of ITSM practices.
  • Poorly defined workflows. This survey revealed that 43% of organizations cited excessive manual processing or insufficient automation as their top ITSM challenge. This points toward having poorly defined or undefined workflows that are obstacles for automation and AI-enabled capabilities.
  • Ineffective ITSM practices. According to this survey , 56% of businesses reported a significant impact on revenue due to technology downtime. Does this indicate ineffective incident management, problem management, change management, and continual improvement practices?
  • Total cost of ownership associated with ITSM tools. The cost of implementing ITSM doesn’t stop with the implementation of the tool. Ongoing maintenance costs, both in terms of licensing, support, and daily management of the platform contribute to the cost of ownership. Post-implementation costs, such as user training, organizational change management, and ongoing process improvements also add to the cost of ownership. Many IT organizations also struggle with what they see as conflicting demand between business priorities and operational activities.
  • Lack of specific ITSM success goals and metrics. Many organizations have not defined specific success measures for ITSM adoption. Further compounding the challenge is that organizations have not defined metrics that indicate how ITSM contributes to the organization achieving its mission, vision, and goals.

These are big challenges for many ITSM implementations determining an ROI. But in my opinion, there are two reasons why ITSM isn’t delivering the expected ROI.

  • ITSM has been and continues to be about IT, not about the business. Most ITSM implementations are focused on how to manage the work of IT, not on delivering business results.
  • ITSM practices were not designed with business outcomes and value in mind but instead based upon the requirements of the ITSM tool being implemented.

And even if one of the drivers for ITSM implementation was to manage interactions with end users – an operational aspect of IT management – the end user typically had no voice or input into the design of ITSM practices. And the lack of user involvement with ITSM design shows up in the experience with IT. As an example, the 2023 Global IT Experience Benchmark report from Happy Signals indicates that 49% of survey respondents identified “IT Support Services” as a negative factor regarding their experiences with IT.

Haven’t people always been a core focus of ITSM?

In theory, a core focus of ITSM is the people that interact with technology. “Customers” are the people that have defined the requirements and need for a service. It is the customer that determines the value of the service that IT provides. Customers are also users of those IT services. “Users” are people that rely upon and interact with IT services to get their work done. The use of the technology associated with these IT services is intended to improve productivity and efficiency of users in getting this work done.

But in practice, ITSM adoption has been more about how IT manages its work, and less about how the experience or success people have with technology. In fact, users are rarely – if ever – part of process design or technology implementations associated with ITSM.

Think about it. In practice, most incident management practices are built around routing and closing tickets as quickly as possible. Service desks and their agents are evaluated by how quickly an issue is closed (with “closed” usually being an IT judgement, and not confirmed with the end user), and not in terms of the user experience.

In practice, Service Level Agreements (SLAs) do not discuss business performance measures, but describe how IT measures its work. And many SLAs are defined by IT with no input from the end user or customer – yet the end user is expected to act within the terms of the SLA. In practice, “customer” satisfaction surveys are not engaging the customer, but rather the user. Compounding the situation is that the return rates of those satisfaction surveys are anemic, and actions are rarely (in practice) taken based on the information captured in the few surveys that are returned.

So how can organizations get the focus of ITSM back on people?

It’s about PPT plus HCD!

In the early 1960s, Harold Leavitt introduced what eventually became known as the “golden triangle” or “three-legged stool” of People, Process, and Technology (PPT) as guidance for managing change within an organization. The model represents if one component shifts, the other two must also shift to maintain an effective balance as change progresses.[i]  The PPT framework is simple but powerful. And while PPT is a mantra often heard as part of ITSM adoptions, the ‘people’ aspect is often ignored, as the focus is typically on the implementation of the technology associated with ITSM.

How can organizations take impactful, people-focused actions based on the PPT framework? This is where human-centered design (HCD) comes in. HCD is a framework for creative problem-solving that focuses on understanding the needs, wants, and limitations of the people who will most directly benefit from the solution.[ii]  It’s about designing with empathy for the people that will be interacting with the solution. HCD is composed of three elements:  desirability – the product or service meets users’ needs; feasibility – the product or service is technically feasible;  and viability – the product or service is viable as a business model.

There are real benefits when organizations shift to an HCD approach.

  • Technology teams build better, more robust products and services when they have a true understanding of individuals, their needs, and their journeys. [iii]
  • Leveraging human-centered design principles also helps technology teams deliver faster and at lower costs — mostly because they’re hitting closer to the mark on their first delivery. [iv]
  • Gartner’s 2021 Hybrid Work Employee Survey, which found that employers with a human-centric philosophy across the business saw reduced workforce fatigue by up to 44%, increased intent to stay by as much as 45%, and improved performance by up to 28%.[v]
  • A McKinsey study found that over 5 years, companies with strong design practices outperformed their industry counterparts in terms of revenue growth and returns to shareholders. [vi]

It’s a compelling argument for introducing HCD into ITSM practices – and bringing the focus of ITSM back to people.

Shifting the focus of ITSM to people

How can HCD be applied to ITSM? It all starts by asking “what do people really want?” from ITSM. Here are some tips for getting started.

  • Start where you are. Don’t throw away what has been done with ITSM, but human-centered design begins with a mindset shift. Commit to making ITSM more about the business and less about IT by shifting from a “technology-first” mindset to a “human-first” mindset.
  • Truly capture and understand the user perspective. Let’s face it – the way that the user perspective is typically captured today (via post interaction surveys sent from the service desk) isn’t that effective. What are better ways for IT organizations to understand the user experience? First, asking better questions (not rating questions) will yield better answers into the true user perspective. Going to where work is being done and observing user interactions with technology is powerful and informative. Hosting regular, periodic small focus group meetings with users provides opportunities for deeper discussions about the user perspective.
  • Include users in continual improvement actions. Including end users as part of continual improvement actions uncovers underlying needs, improves experience, and helps provides solutions that solve the real issue.

Shifting ITSM practices from a technology-first to a people-first approach will have a major positive impact on users, customers, organizations – and ITSM.

Need help with shifting your ITSM practices from a technology-first mindset to a people-first mindset? It starts with understanding the user’s experience. We can help – contact Tedder Consulting for more information.

[i] forbes.com/sites/forbestechcouncil/2024/04/19/20-expert-tips-for-effective-and-secure-enterprise-ai-adoption,  Retrieved April 2024.

[ii] https://www.mural.co/blog/human-centered-design Retrieved April 2024.

[iii] https://www.cio.com/article/413079/cios-find-big-benefits-in-shift-to-human-centered-design Retrieved April 2024

[iv] Ibid.

[v] Ibid.

[vi] https://www.mckinsey.com/capabilities/mckinsey-design/our-insights/the-business-value-of-design, Retrieved April 2024.

 

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ESM, ITSM

The Curious Case of the Missing IT Strategy

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IT organizations often get stuck in a vicious cycle of never-ending work. IT implements solution after solution, fixes one problem after another, and no matter how many times they do it, those solutions and fixes never seem to stick. IT often finds itself just trying to keep up with what appears to be a constantly changing business. IT is often seen as the anchor slowing business down and has earned a reputation of being the slowest path toward technology implementation.  And when budget times come around, IT never seems to manage to get its fair share. 

These are signs that an IT organization is missing strategy.  This is a massive problem for both IT and the organizations that IT works within. Why are so many IT organizations missing a strategy?  What can be done to establish a viable IT strategy?

One thing that is certain – the strategy can’t just be “do”.

The Missing IT Strategy

Of course, no leader intentionally avoids developing strategy. It’s usually a consequence of a number of factors. However, in the case of the missing IT strategy, the CIO has to establish a business-technology (not technology alone) strategy, talk and share that strategy with other leaders, incorporate and underpin the larger business strategy, and drive the IT organization forward following that strategy. If a CIO spends too much of their time doing or supervising the day-to-day work within an IT organization instead of delegating, she won’t have the time (or energy) to be strategic. If a CIO has to spend more time supervising the daily activities of IT than ensuring business outcomes and value, that’s usually an indicator of a missing IT strategy. 

The second indicator of a missing IT strategy is the lack of true service management. Why? Because if the service management foundation is not strong or well executed, IT can never be strategic. If IT ignores:

  • Defining services in terms of business value and outcomes
  • Creating workflows that are based on services, not technologies or organization charts
  • Publishing performance reports that are relevant to and meaningful for the business 

then IT is setting itself up for failure.  Many organizations look at service management as just something that a service desk does.  But good service management provides the capability of relating technology investments to business outcomes.  This makes good service management a critical part of the foundation of IT. Having a solid foundation is what keeps IT relevant, reliable, and able to scale to meet business needs. WIthout good service management, IT will waste a lot of time just trying to keep up with service requests and putting out fires instead of enabling the realization of business strategy.  

Finally, the third indicator of a missing IT strategy is a “one thing at a time” mentality. To stay on track, IT organizations often choose to focus on just one initiative at a time. This might help your team feel less overwhelmed, but it often comes with the cost of missing a holistic view of the organization. The ability to see the birds eye view of how the organization relies on technology to create better outcomes for end users and customers is one of the most important skills for an IT leader.  Having this big picture view enables the IT leader to be even more strategic.  

Why does IT need a strategy?

IT operating as only a support team is no longer an option for any business. The speed of business has increased significantly over the last decade, due in a large part to the introduction of new technologies, such as automation, mobile computing, cloud-based services and machine learning. IT has to be the driver and enabler of technology. Whether it’s realized or not, technology has become “baked into” every aspect of the organization. 

The question is “has IT become ‘baked in’ as well?”  Without a well-defined IT strategy, the answer to this question is usually “no”.   

Defining, socializing, and executing a strategy strengthens IT’s role within an organization. It’s what separates the IT organizations that are treated as order takers from the IT organizations that are treated as valued partners. 

How to solve the case of the missing IT strategy

Here are three things that IT leaders can do to solve the case of the missing IT strategy.

What is the business strategy?  How can technology enable realization of business strategy? To shift from a “support only” team to a strategic asset, IT first has to understand the goals and objectives of the overall organization – and how technology can be used to enable realization of those goals and objectives. IT’s strategy must be tied to these business goals and objectives. IT leaders have to take a step back from the inner workings, day-to-day activities of IT and look at the bigger picture of the organization. 

Elevate to real service management, not just some arbitrarily selected processes.  Once IT understands the role of technology in achieving business strategy, IT must then elevate its approach to service management.  Service management is more than just fulfilling requests and resolving outages. An effective approach for elevating service management is to identify and map the value streams of an organization, then identifying how technology underpins those value streams.  Value streams help identify the products and services that IT must deliver. This exercise not only lays out what service management must enable and deliver for the organization, it is also a great way to align what IT is doing to the overall needs of the business. 

Report IT performance in business terms. Once you’ve elevated your service management and understand the goals and objectives of the company, then you’ll be able to produce and publish performance reports that reflect how IT contributions enabled achievement of business goals and objectives.  Having this capability is significant for a number of reasons.  First, it demonstrates that IT truly understands what is important to the organization.  Secondly, it provides the ability to evaluate if IT strategy is meeting business needs.  And lastly, it begins to change the perception of IT as just being a “support team” to a strategic asset.

Thinking and working strategically is transformative for an IT organization. After you’ve seen how IT integrates with the rest of the organization, you won’t be able to go back to working only in a ‘support’ role.  By defining and executing an IT strategy , your entire business will become stronger.  

Need help developing an IT strategy that is aligned with your business objectives?  Let Tedder Consulting help!  Tedder Consulting will first visit your organization to understand your business, goals, and current IT situation.  Tedder Consulting will then conduct an analysis of your IT services and practices to determine how they are operating. Finally, we deliver a plan for aligning your technology strategy to your business goals.  For more information, contact Tedder Consulting today.

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