Tag Archives: enterprise service management

Outcomes vs Outputs: The Real Proof of IT’s Value

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The typical workday looks much different today than it did just a few months ago. Instead of driving to work and walking into the building, employees are going online and signing in to their messaging or collaboration tools.

Instead of physically taking a document to a client for a signature, they’re being sent digitally for electronic signatures.

Instead of popping into an office, managers are checking in with employees via texts, instant messages, and video calls.

As many businesses continue to work remotely amid the COVID-19 pandemic, it has become increasingly clear that technology is keeping the business together. Because of this, IT has to move into a more strategic role. For years, experts have been advising IT leaders to take their seat at the strategy table and be involved in the larger business decisions. Many IT leaders have jumped at this opportunity while others have struggled to figure out how to demonstrate IT’s ability to be more than a support function.

This shift of IT from a support function into a strategic partner can start with a simple shift. The shift from focusing on outputs to outcomes can make a world of difference for IT organizations.

Outcomes vs. Outputs

Let’s begin by addressing the difference between outputs and outcomes.

Outputs are the actions or activities that an IT organization completes. They are quantitative and easily measured.

Outputs could include:

  • Moving files and documents into the cloud
  • Closing tickets in record times
  • Installing new technology

Many IT organizations measure outputs as a way to illustrate their productivity and value. The thinking is that the more outputs they complete, the more the rest of the business will see IT as being valuable.

While outputs are important, outputs only tell part of the story. The real measure of value is the outcomes that are enabled by those outputs. Outcomes are the results that the business wants or needs to achieve.

Outcomes are business objectives such as:

  • Increased market share
  • Higher customer satisfaction scores
  • Increased profits

For example, the outcome of moving computing capability to the cloud is a more mobile and flexible work environment. The output enables the outcome. For every output IT is completing, the CIO must know and communicate what the business is now able to do as a result, or outcome, of that output.

That means before listing an output on a project list, IT managers must ask: “What outcome is this going to enable?

By doing this, you can cut down on the amount of busywork or projects that are not contributing to the bottom line. It will also show what outputs are ineffective. In some cases, IT delivers an output that doesn’t enable or deliver any real business outcomes. If this is the case, you’ll need to review the output and determine if it is truly needed.

This shift may also show that some of your metrics and KPIs are ineffective ways of measuring IT’s performance. For example, if your team has a high first-contact resolution rate but employees are still reporting poor service, then the first-contact resolution rate isn’t a good indicator of your performance.

How to Make This Shift

What do IT leaders need to do this to make this shift in their organizations?

Build Business Relationships
IT leaders need to understand the outcomes the business wants to achieve. They should seek out key stakeholders and have regular conversations about their technology needs and their goals and objectives. This will allow IT leaders to begin to see the end-to-end value of their outputs and initiatives.

Define and Map Services
Once you know the desired outcomes, you can map IT services to them. Map how the outcomes of your services connect to business objectives.

Measure Outcomes
It’s not enough to simply list off the number of outputs your team completes each month. Engage your stakeholders to identify outcomes and how an output contributes to an outcome.

The Future of IT

At the beginning of this article, I mentioned that IT has no choice but to evolve now. The way we work will be changed forever. Even when businesses return to the office, there will be different expectations around flexibility and how technology enables flexible mobile workforces. The business will want to be prepared for the future, should anything like this happen again and they’ll be looking at IT to help plan and prepare for those possibilities.

CIOs and IT leaders must approach their goals and initiatives differently if they want to rightfully play a leadership role in their organizations. Connecting IT outputs to business outcomes enables IT leaders to help shape the future of their organizations.

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Future-Proofing Higher Education With Employee Experience

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Higher education is facing many obstacles. The entire industry has shifted over the last few years and many higher education institutions are having to adjust how they operate to meet those changes. This article will explore how employee experience and good service management can help higher education institutions overcome those obstacles.

The Changes in Higher Education

One of the biggest changes in higher education is the shifting student demographic. Just a few years ago, student populations were made up of 18-22-year-olds, who lived on campus, went to school full-time, and were working toward a 4-year degree. Today, many students are adult learners, part-time students or taking classes completely online. Many individuals are questioning whether a traditional higher education degree is worth the financial burden and are opting out of traditional higher education altogether.

Additionally, students on campus are dealing with different struggles than past students. Many students are forced to balance multiple jobs while in school to make ends meet. This has resulted in students struggling with increased financial pressure and higher education has become plagued with mental health problems.

And on top of all of those changes, higher education is struggling with decreased funding, increased competition, and budget cuts. Higher education institutions must find innovative and cost-effective ways to engage current, prospective, and past students. The best, easiest and smartest way to do that is by engaging their employees.

The Need for Engaged Employees

Perhaps most worrisome among higher education institutions is that they are struggling with employee engagement. Simply stated – many higher education faculty and staff members are not engaged. Gallup performed a detailed study on employee engagement across several industries. After performing 258 million interviews including 75,000 with faculty and staff members, Gallup found that just 34% of faculty and staff within higher education are engaged at work. This engagement score is lower than most of the industries that Gallup measures.

Unengaged employees could be costing institutions at the bottom line. The faculty are often the institution’s frontline for their students. An engaged faculty can provide students with tools they need to overcome the obstacles they’re facing, which will not only help students stay at the institution, but can help create a dedicated and successful alumni network.

Also, engaged employees are more likely to stay at the institution. Studies have shown that focusing on employee engagement can result in better retention rates and cost savings over time. In fact, according to the American Council on Education, Iowa State University estimates an average savings of more than $83,000 per faculty member retained when engagement practices are applied. Employee turnover can be costly – so imagine how much that adds up over time when good faculty members are retained!

The Institution’s Role in Employee Experience

The question is what can the institution do to support employee experience? Mike Bollinger, global AVP of thought leadership and advisory services for Cornerstone OnDemand notes, “Faculty and staff members help create the student experience, and it’s up to the institution to provide their employees with the learning curriculum, professional development opportunities and recognition they deserve to help both higher education employees and their students succeed.”

Higher education institutions can leverage technology and services to create a better employee experience that includes professional development, learning opportunities, and better operational management.

Digital is an obvious choice for most of these experiences. Higher institutions are already successfully implementing digital-first experiences like digital workflows, online onboarding, training programs, and online learning management systems.

But future-proofing higher education with employee experience requires more than creating digital-first experiences. Technology alone won’t guarantee an exceptional employee experience. Good service management is necessary. The service management I’m referring to is not just IT service management. I’m referring to the holistic approach of delivering value through the use of services, based on the use of technology. Some refer to this as Enterprise Service Management. Whether you call it Enterprise Service Management, service management, or IT service management, one thing needs to remain the same: you must focus on how organizations can co-create value and then deliver that value using technology.

What can higher education leaders do to create exceptional employee experiences?

Institutions must acknowledge the silos that exist among their faculty and staff before they can begin to consider the technological needs. Silos are culturally embedded in higher education institutions. There are silos between faculty and staff. There are silos among adjuncts, full-time professors and tenured professors, as well as, silos among departments. Working to create open lines of communication and to empower the entire institution to collaborate to run higher education as a business. It’s important that both faculty and staff adapt their thinking and actions in terms of value and outcomes instead of activities and things.

This is where IT can take the lead within an institution. Higher education CIOs can work with the rest of the institution to understand the overall goals and determine how technology can help the institution meet those goals.

There are two steps a CIO can take to begin this process.

Identify, map, and manage value streams
When a CIO maps value streams across the institution and identifies where technology is used to support those value streams, they can begin to identify and eliminate redundant spending and waste. They can also begin to find process improvements that can support better employee experience.

Establish an experience center
An experience center is a little like an expanded IT service desk. It is a single point of contact for reporting and managing service issues. Successful experience centers have well-defined processes supporting defined value streams. The experience center can benefit both the student and the faculty and staff as it supports the entire engagement lifecycle of both the students and the faculty. It reduces any frustrations or problems using technology so they can be quickly solved.

Higher education is evolving and the evolution isn’t going to slow down any time soon. While there are many questions about the future of higher education, one thing that remains certain is that the time is now to engage employees and strengthen the brand, operations and bottom line of an institution. This approach of addressing and improving the employee experience of faculty and staff on the front line can create a ripple effect that will leave the end-users, the students, feeling satisfied, cared for and supported by their institutions.

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Flipping the ESM Switch: Pressure Off, Ease On

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There’s a buzz around Enterprise Service Management (ESM) these days and with good reason! I see Enterprise Service Management as the future of Service Management. With the ever-increasing business reliance on the use of technology, more organizations will need to adopt Enterprise Service Management.

But what exactly does ESM do for your business and, more importantly, how can you start to implement it without complicating it?

At its core, ESM is applying IT Service Management concepts to the entire enterprise. It makes it easier to provide solutions to colleagues within your organization and to deliver value to customers outside of your organization.

While ESM is not about reinventing the wheel, it’s certainly not about force-fitting every department into established ITSM processes and workflows.

Implementing ESM is about leveraging what you have to make your tools, processes, and teams work better so that you can drive the same business value across the organization. It should flip the switch from pressure to ease.

Let’s look at some areas where ESM will ease the pressure within your organization.

Pressure:
“Other teams will insist on having it their way and using their tools and processes.”

Every department has its own defined set of processes, tools, and workflows. This can create a power struggle where each department is certain that their way is the best option. This can create difficulties during ESM implementation as each department could try to force others into adopting their processes or tools.

Ease:
“We are all working toward a common goal so there is no longer ‘my way’ and ‘your way’ – it’s now ‘our way’. “

The fundamental shift that must occur for ESM to be successful is to let go of the notion of independent goals and objectives. Every department, every team, every individual must be aligned with the overall goals of the organization. No matter your role in the organization: HR, accounting, marketing or IT, everyone is working to serve the customer. Department leaders and the C-suite must coach their teams to stay focused on these goals. If the organization is aligned on shared, common goals, it will be easier to adjust processes and workflows that work best to meet customer demands.

Pressure:
“My department is unappreciated and burnt out.”

Contrary to popular belief, it is not only members of the IT organization who often feel burnt out and unappreciated. In many organizations, every team member can feel as if their work goes unnoticed and unappreciated. When teams are focused on internal goals and not on organizational goals, teams fall into working in their own silo. One of the results of this silo mentality is that no one is clear on who is accomplishing what within the organization, which makes it difficult to understand how everyone contributes to organizational goals.

Ease:
“ESM results in clearly defined end-to-end processes, which means every part of the team will understand who contributes and how.”

Good ESM makes it easier to assign and see responsibility and accountability across each service or product. Not only does this hold everyone accountable for completing their piece of the process, but every team will be able to clearly be recognized for how they contribute. This can be the motivation that many team members need to keep contributing and to respect the other departments also involved in the delivery of services and products.

Pressure:
“Our department does its job and meets our part of the process – it’s other departments that drop the ball.”

Ease:
“Enterprise Service Management provides increased visibility and performance and helps management understand what has been achieved.”

Good ESM processes help provide insight into the value that each business function provides and communicates that value to customers and other business stakeholders. With Enterprise Service Management, no one can drop the ball because everyone knows who is in charge of what aspect of the process. There are clear communication channels and a high degree of visibility and transparency. Leaders must encourage their teams to embrace this as it will identify gaps, provide clear insight into contributions, and eliminates “blame” culture.

If you feel any of these pressures, then it may be time to introduce the ease of Enterprise Service Management. How can you start implementing it in your organization with ease instead of friction?

1. Justify Enterprise Service Management in business terms

ESM doesn’t always sell itself. Just like any change in an organization, the benefits need to be articulated in business terms. Explain the actual business benefits including revenue, competitive advantage or enhanced customer experience. Look at how many hours ESM can save from eliminating inefficiencies and miscommunications and how it can bring even more value to the organization.

2. Don’t treat ESM as ITSM

ESM cannot be an IT project. ESM is not about simply extending ITSM into the enterprise. It’s an organizational change that impacts every member of the team. Remember, ESM is about leveraging what you already have in place — and that includes every process and perhaps tools other departments use, as well. It must feel collaborative and inclusive to everyone in the organization

3. Respect the holdouts

It’s natural for some departments in your organization to fully embrace ESM and for others to be more resistant to this change. Instead of marginalizing the departments who are holding out on ESM, work with them to show how ESM can benefit their team. If ESM is going to be successful, every team needs to be willing to accept and try it. Forcing Enterprise Service Management on a department will only cause problems down the road. By continuing to emphasize the collaborative nature of ESM and the ability for every team member to be heard, you will be able to win over those holdouts.

4. IT- Focus on yourself first

IT can drive ESM, but there is no point extending sub-optimal service management practices outside of IT. If your ITSM processes are not meeting your needs, or if your own team is struggling with certain aspects of ITSM, focus on cleaning up in-house before trying to extend service management into the enterprise. If you are having successes from ITSM efforts, then your argument for ESM will be more impactful and you’ll have an easier time extending it throughout the enterprise.

ESM is not a passing fad. As more customers expect more personalization and self-service, the need for ESM is only going to increase. The best way to maintain a competitive advantage and keep your customers happy is to start implementing ESM in your organization today.

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Enablement over Control: How To Demystify ESM in Your Organization

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In July 2018, I wrote a blog about why your company may not be excited about ESM. Close to a year later, the popularity of Enterprise Service Management has been increasing across all industries as more vendors expand from IT-only solutions into enterprise solutions.

And yet, many CIOs find themselves surrounded by team members and colleagues who remain hesitant to move forward with ESM. It’s no secret that many organizations can be slow to change. But why would business leaders be hesitant to adopt this change, especially, considering the growing number of documented case studies that demonstrate the tangible benefits of Enterprise Service Management?

I believe the hesitation to move towards Enterprise Service Management comes down to control – or the perception of who has control – with Enterprise Service Management. Some executives fear giving up control, especially when it comes to their team and the way it accomplishes its work. If leaders feel embracing Enterprise Service Management means handing over control of their team, systems, and processes over to IT, then they are going to be resistant.

Additionally, ITSM has long had a reputation for being too rigid and forced in its processes and frameworks. Many leaders in the organization may have come to view ITSM as a barrier to productivity instead of an enabler. Given this perspective, it’s no surprise that some leaders are not excited to embrace ESM in their departments.

CIOs are in the unique position to demystify ESM in their organizations.  CIOs can help lead the change that enables their entire organization to be more efficient and effective and achieve greater employee and customer satisfaction.

How can you demystify ESM within your organization? These tips can help you begin.

  1. ESM is not extending ITSM processes to every other part of the business

This may be the biggest misconception I’ve seen about Enterprise Service Management, both from those inside and outside of IT.

Let me be clear, Enterprise Service Management is not extending ITSM processes and frameworks into the rest of the business. Instead, it’s about using Service Management best practices to co-create processes and systems that work with every department across the enterprise. Simply put, this is not a hostile takeover. It’s a peaceful merger for the greater good of the organization.

To increase support, IT leaders must emphasize the benefits of Enterprise Service Management for each department. Work with other departments to understand the strengths and weaknesses of their current processes and be prepared to address how Enterprise Service Management can work with those strengths and address any gaps that exist. Ask for real-world scenarios the department encounters so you can provide context for where ESM can fit into these scenarios.

Additionally, demonstrate how the impact of ESM on the end user can increase support among departments and especially among the C-suite. Enterprise service management will help put more tools in the user’s hands, which ultimately can lead to faster responsiveness and a more consistent experience for end users. If, for example, a sales or marketing leader can understand how adopting ESM principles will enable their team to provide better services and bring in more sales, they’ll be more willing to adopt those principles.

2. It’s not about a tool

Contrary to popular belief, ITSM isn’t implemented by purchasing and using a tool – neither is ESM. Some leaders may see Enterprise Service Management as a justification for more investment into expensive tools (that don’t always work).

Instead of leading with the tool, lead with the end goal, which should relate back to the external customer.  Follow up with shared processes, increased collaboration and better communication. These are the important pieces of Enterprise Service Management. Tools help improve and speed delivery of shared processes, collaboration, and communication –  but they don’t cause those things.

Other leaders will see the investment into a tool as an investment in their team if they are able to see the end result and how their team is a part of that solution.

3. Frameworks are not inhibitors to productivity

We’re back to that “control” piece again. Many leaders and team members see frameworks as red tape, as a barrier to efficiency.

But, good ITSM practitioners know that when roles and processes are defined, there is better accountability which leads to improved efficiency and effectiveness. There is no room for “I thought someone else was handling it.” There are no gaps in productivity because everyone understands who is doing what, when it is being done, how their work contributes to business success, and what is expected of them.

Frameworks open the door for transparency — and this is actually a good thing for every leader. When a process is transparent, a leader is able to:

  • Claim credit for the work that their team is accomplishing
  • Have a better view of where and how they are contributing
  • Be able to articulate their own team’s value

Every leader knows the pain of not getting credit for their work and having to justify their expenses. Frameworks can decrease that pain.

4. True ESM is designed to fit the enterprise, not the other way around

Finally, the most important factor to iterate to the organization is that Enterprise Service Management is not a rigid, IT-controlled process. It’s something that’s co-created. It’s something that every department leader will have a say in, and it will be designed to address the unique goals, strengths, and weaknesses of each organization. Real Enterprise Service Management is flexible and customizable.

What can you do to get started?

If you know that Enterprise Service Management can improve your organization but you don’t know where to get started, I recommend focusing on two areas.

The first is to make sure your ITSM house is in order. This is the opportunity for IT to be seen as a leader in the organization. If you are able to “walk the talk” of Service Management and demonstrate how well it works, you’ll be better positioned to win over other leaders.

The second is to look for opportunities for quick improvement that involve other departments. Identify other departments that are reliant on processes that can be improved by technology, automation and service management practices. Work with these departments to implement smaller service management initiatives. Wins in this area can make the business case for larger enterprise-wide initiatives.

My prediction is that Enterprise Service Management will only become more popular with more organizations adopting it. Now is the perfect time to prepare your IT organization for this shift and to be a leader in this movement.

Interested in making larger strides towards Enterprise Service Management? VeriSM is an ideal stepping stone from your current ITSM practices into ESM. Learn more about VeriSM in our upcoming training class this June or schedule a call to learn more!

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How ITIL4 Opens the Door to ESM

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A prevalent approach to Enterprise Service Management (ESM) today is to extend the use of the IT Service Management (ITSM) tool to other areas of an organization outside of IT.  Some organizations also try to apply their existing ITSM concepts, like managing requests or service interruptions, to those other areas.

This approach is essentially dropping the “IT” from ITSM and adding an “E”. Sorry, that doesn’t make it “ESM”.  While good ITSM practices can be adapted for use across the enterprise, ESM has to be more than just arbitrarily imposing ITSM across an organization.

What is ESM?

ESM is the application of service management principles and technologies beyond just IT and across an organization. ESM applies service management principles to other areas of an organization to improve performance, measurability, effectiveness, responsiveness, and efficiency.

Does this sound familiar to you? Well, it should if you’ve been around this blog before! ESM mirrors what good ITSM practices accomplish, except on a larger scale.


ESM is much more than applying IT processes and principles outside of IT. It’s a holistic way of including and blending individual departmental approaches into common and shared processes, systems and technology across the organization.  It requires organizational change just as much as a technological change. It requires strong leadership, clearly articulated vision and business goals, and clear communication and collaboration between departments.

ESM is all about how to best enable and support the value streams of an organization.  ESM must take an enterprise, not IT, perspective regarding how to best facilitate the delivery of end-to-end value through an organization.  ESM is not about trying to fit organizational capabilities and work products into predefined IT(SM) processes, but rather ensuring the most effective approach for leveraging all of the capabilities of an organization. 

With ESM, the organization develops a holistic approach to integrating, connecting and working together to leverage technology by creating processes, systems and workflows that benefit the company, the employee, and the customer.

Why is ESM important?

The best business value is created when all parts of the business are contributing and collaborating to deliver value in the most effective and efficient way.   In the digital age, organizations must be able to quickly shift and react to changes in market spaces is critical for business success. It won’t be enough that IT makes a change to an application or the marketing department launches a new campaign.   The enterprise must be able to shift or pivot as needed – when needed.

This is why good ESM is so important. 

Good ESM:   

  • Provides business decision support – Good ESM provides transparency into how work is done within the organization.  Decisions become data-driven, based on objectives measures captured as part of enterprise value streams.   
  • Enables organizational agility – Well defined, interdepartmental value streams and workflows enable organizational agility because there is clarity and shared understanding regarding those value streams and workflows.  This helps leaders understand where to pivot if needed. Good ESM results in improved cohesiveness and collaboration within the organization and aligns activities toward shared organizational goals, not on departmental objectives.
  • Improves organizational understanding of the business – Individual departments not only understand their workflows and processes, but also how information, work, and value flow across the organization.  There is a greater awareness of the interdependencies between the various departments within the organization. 
  • Enables an enhanced customer experience – Good ESM removes the internal friction that gets in the way of a good customer experience.

 

How ITIL4 can open the door for ESM?

ITIL® 4 introduced in February 2019, is the latest evolution of the popular ITSM framework.  Among the new or revised concepts within ITIL4 are two nuggets than can help open the door for ESM – the Service Value System (SVS) and the Four Dimensions Model.   

The Service Value System

The SVS “represents how the various components and activities of the organization work together to facilitate value creation through IT-enabled services”.  The SVS starts with an input of either “demand” or “opportunity” and ends with value.  A “demand” represents the need for something to happen, whether it’s a product or a service.  An “opportunity” represents a potential for value-add or improvement for the organization.  “Value” is the perceived benefits that will or should result from acting upon the demand or opportunity.

Applying the SVS concept to ESM, an enterprise value stream similarly begins with a demand – an order from a customer, on-boarding of a new employee – or an opportunity – a new product line.  To realize value from either of these scenarios requires the actions of multiple parts of the organization.  No single part of the organization alone can by itself deliver the value required from that demand or opportunity.  Good ESM recognizes and facilitates those actions across the enterprise.

Drilling into the SVS a bit more, there are three key components that I think can be directly applied to ESM:

  • Guiding Principles – Overarching recommendations that guide an organization in all circumstances.
  • Governance – Ensures that the policies of the organization are defined and carried out; keeps all parts of the organization pointed in the same direction.
  • Continual Improvement – Activities that ensure that the organization is proactively improving; that the organization collectively and individually is anticipating and responding to changing conditions, both within the organization and the marketplace, to meet the needs of the customer, the organization, and the employee.

The Four Dimensions Model

The Four Dimensions Model describes factors that have influence on the delivery of value. The Four Dimensions are:

  • Organizations and People – In addition to the “org chart”, this dimension looks at culture, skills, competencies, and capacity of the organization.
  • Information and Technology – Technologies and the appropriate use and protection of information are crucial enablers for today’s enterprises.
  • Partners and Suppliers – Every organization and every product and service delivered by an organization, has reliance on partners and suppliers. 
  • Value Streams and Processes – The enablement and delivery of value depends on effective and efficient workstreams, controls, and procedures.

I look at the Four Dimensions Model as a tension matrix – any change in any one dimension will have an effect – good or bad – on the other dimensions.  The Four Dimensions Model encourages a holistic look at how an organization facilitates value for all stakeholders of an organization.

Applying the Four Dimensions to ESM adoption, without the proper training and development of skill sets, the organization cannot successfully exploit information and technology nor realize value stream effectiveness.   Just extending ITSM tools into the enterprise ignores organizational cultural and competency aspects, does not address enterprise value streams, or recognizes the partnerships (both within and external to the organization) that make enterprises work. 

The key takeaway

I’ve long thought that a good ITSM implementation is key for success in the digital economy.  And that service management also must move outside of IT.  With new concepts like the SVS and the Four Dimensions Model, ITIL4 seems to be thinking the same thing. 

ITIL4 can open the door for ESM – and that’s a good thing.   

 

Ready for your ITIL4 certification? Register forTedder Consulting’s ITIL4 Foundation class.

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IT Service Management Still Matters – Here’s Why

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Believe it or not, your company has always been doing IT Service Management (ITSM) – from the moment it first used a computer. 

Whether formally defined or not, ITSM exists in some form in every organization that leverages technology in achieving business results.

Don’t think so?  Consider this:

  • What happens when the phone rings in IT? Someone answers it.
  • What is something breaks in the production environment? It gets fixed.
  • When business colleagues ask for something different in a live system or application?  A change is made.
  • When business colleagues request new capabilities based on the use of technology?  The request capability is planned, funded, designed and implemented.
  • When a colleague needs advice or instruction?  Help is provided.

All that seems like ITSM to me. But good ITSM has to be more than just answering the phone or making a change. Is your approach to ITSM working as it should?

The “usual” approach to ITSM…and why it doesn’t work

If ITSM hasn’t delivered the expected value for your organization, it’s usually because of one or more of the following reasons:

  • Many organizations implemented only the reactive aspects of ITSM – incident, problem, change, service desk, request – and nothing more.  They utilized whatever out-of-the-box process definitions that came with the ITSM tool – but those processes didn’t match the current state of IT, much less meet the business need.  Despite those challenges, those organizations did receive some benefit…. but not the full benefit of a good ITSM implementation. 
  • Some organizations implemented ITSM with a focus more on managing the technology and less on delivering services supporting business functions.  Those organizations implemented ITSM processes from a control perspective, which resulted in practices that actually got in the way of the organization taking advantage of using technology.
  • Many organizations’ ITSM implementations were never elevated beyond the IT organization.  ITSM was an IT project, not a business initiative.  Because core ITSM concepts were not implemented, like IT services defined in terms of business value and outcomes, artifacts like a service portfolio were never defined.  As a result, business leaders do not have critical ITSM resources and information that could help them make informed decisions about technology investments.  Nor do they have any data that helps them recognize the value provided by the IT organization.
  • Some organizations didn’t even elevate ITSM beyond IT operations.  As a result, IT became a “house divided”, with each side of the house actually working against the other side.

Is ITSM no longer important?

But despite these challenges, practicing good ITSM is more important now than ever.  Why? 

  • Because your organization is now completely dependent on technology to perform business processes and functions.  There is no part of any business that doesn’t have some dependency on the use of technology.
  • Because business and technology must work seamlessly.  “Business-IT alignment” is not enough.  It’s now about integration, not alignment.
  • Because organizations must take a holistic view of the use of technology to ensure the best return on investment and ensure that corporate governance and policies are enforced.   In a world of data privacy concerns and security breaches where business interruptions due to technology issues are widely publicized, organizations must take a holistic approach to managing and leveraging technology.
  • Because IT is still “on the hook” for the effective and efficient use of technology and business value delivery, regardless of whether those technology resources are provided from on-premise or via the cloud.
  • Because investments in technology must deliver an optimal return on investment.  The days of implementing technology for technology’s sake are long gone.
  • Because technology is always changing and evolving, organizations need a way to deal with that change in a consistent, technology-agnostic manner.

But this doesn’t mean that “ITSM as usual” is the right approach going forward.  In fact, the “usual approach” is usually why ITSM hasn’t delivered or fulfilled its promise.  And certainly, the “usual approach” to ITSM won’t be enough for the modern business.

What does modern ITSM look like?

The goal of ITSM has always been to make the best use of technology to deliver business value. But that’s not what many organizations have done with their ITSM efforts.

Many ITSM implementations struggled or even failed because the focus was on implementing a framework or methodology – or even worse, a tool – rather than doing the things that helped the business realize value in its use of technology.

A modern organization needs a modern approach to ITSM.   A modern approach to ITSM has the following characteristics:

  • More than one tool in the ITSM toolbox – Some look at methodologies like Agile, Lean, or DevOps as “anti-ITSM”, when in fact, these approaches address areas of the usual ITSM implementations that were previously skipped or ignored.  Even more compelling, these methodologies compliment traditional approaches like ITIL® and COBIT®.  The modern ITSM toolbox leverages the right tool for the job.
  • Emphasizes “enablement” over “control” – ITSM implementations must shift from a mindset of “control” to a mindset of “enablement”.  IT must be adaptable and responsive to business change, but at the same time, consistent, secure and reliable. A modern approach to ITSM strikes the right balance between responsiveness, adaptability, consistency, security, and reliablity to help organizations realize its business goals and objectives.
  • Inclusive – Many ITSM implementations never moved beyond IT Operations.  Make no mistake – developing and implementing the operational capability to respond to incidents, fulfill requests, or implement changes in a consistent and repeatable way was (and is!) a good thing.  But modern ITSM must be inclusive.  Modern ITSM must include not only all of IT, but also include the business that IT serves.
  • Looks at the organization from the “outside-in” – The (true) customer does business with the business – not an individual part of the business.  Effective service management will help a business act and present itself as a holistic entity and not a collection of parts.

Top 5 Reasons Why ITSM (Still) Matters

Here are my top 5 reasons why ITSM still matters:

1. ITSM enables IT to deal with ever-changing technologies in a consistent way while still ensuring the right level of governance.

2. ITSM enables Shift-Left toward the end-user. In the digital age, you cannot sacrifice quality for speed and IT teams must work as a cohesive unit. 

3. ITSM enables teams to deliver technology in a business-relevant way at the right cost and quality and show how IT is contributing value, all the way to the bottom line

4. ITSM ensures that the use of technology meets business need and delivers value and outcomes. ITSM expands thinking from processes that manage technology to practices that not only manage technology but deliver real business outcomes and value

5. Provides the opportunity and the ability to identify, justify, and implement improvements with transparency. 

Making ITSM a Strategic Capability

In the digital era, ITSM must be a strategic capability of your organization.   ITSM must become one of the primary ways that a business executes and fulfills its strategy.

How can you improve your ITSM efforts?

  • Define services in terms of value streams/value chains
  • Take an agile approach to process design
  • Shift-left to deliver a better end user/customer experience
  • Build peer support within the organization
  • Distributed, sourced: changing from traditional centralized IT with everything completed in-house

IT has always played a prominent role in the success of the organization but typically has played that role from the back office.  In the digital era, IT’s role is much more prominent and visible and IT must become more business and leadership focused.

Does your organization need to take a modern approach to  service management?  With our Next Generation ITSM consulting service, Tedder Consulting can get you there – contact us today!

For more pragmatic advice and service management insight, click here to subscribe to my newsletter!

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How to Defeat Silo Mentality

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There’s a beast lurking in many organizations. It can tear an organization to shreds from the inside out, quietly and quickly.

No, I’m not talking about some horror movie. I’m referring to silo mentality. It’s a growing problem for many organizations. A recent study of senior executives showed that “only 25% of respondents described their organizations as ‘effective’ at sharing knowledge across boundaries.”

While silo mentality may be common, it’s not healthy. It’s a problem that could drastically slow business growth in the digital age.

But there is a solution to silo mentality that is accessible to every organization and leaders across the globe. Before we get to the solution, let’s discuss the problem.

What is Silo Mentality?

Silo mentality is the mindset present when certain departments or sectors do not want to share information with others in the same organization.

Just like at a farm, silos in organizations hold resources that are separated by types. In the farming community, it’s important to protect resources from the outside elements but in business, silos end up causing delayed projects, low morale and increased costs.

Most leaders want to blame silo mentality on the employees themselves. But silo mentality is often to the result of poor leadership, communication and management.

Most silos form when employees develop a greater sense of loyalty to their individual team or department than loyalty to the organization. While team loyalty is not necessarily a bad thing, it can be disruptive when the needs of the company as a whole become secondary to the needs of the closest team members.

Managers and leaders must encourage a culture of collaboration, communication and ownership. If managers and leaders spend their time pointing fingers, hiding information or not taking ownership of their mistakes, then that mentality will trickle down into their teams, as well!

Silo mentality has many disruptive side effects. It can cause groupthink, stereotyping, redundancies and duplicative efforts between departments, and a misunderstanding of strategy. These effects can cause increased project costs, missed deadlines and low morale.

But the most damaging side effect is that the customer suffers when silo mentality exists in an organization. Most jobs within organizations have specific roles and responsibilities. When a task or issue occurs that “doesn’t fit the job description” in a siloed workforce, the task is usually tossed to the next person. This can occur several times over and the person who suffers the most is the person who had the issue in the first place: the customer.

Companies that suffer from silo mentality will lose customers and therefore profits due to the inefficiencies caused by it. Organizations have started trying to eliminate silo mentality by encouraging a service-oriented approach and cross-functional collaboration. And luckily, there is a more formal method to these tactics that leaders can take. It’s called Enterprise Service Management and it might sound a little bit familiar to you.

What is Enterprise Service Management?

Enterprise service management (ESM) describes the application of service management principles and technologies beyond just IT and across an organization. ESM applies service management principles to other areas of an organization to improve performance, measurability, effectiveness, responsiveness, and efficiency.

Does this sound familiar to you? Well, it should if you’ve been around this blog before! ESM mirrors what good ITSM practices accomplish, except on a larger scale.

Of course, you may be thinking that you can just take your existing ITSM processes and systems and simply apply them across the organization. It doesn’t exactly work like that.
ESM is much more than applying IT processes and principles outside of IT. It’s a holistic way of including and blending individual departmental approaches into common and shared processes, systems and technology across the organization.

It requires organizational change just as much as a technological change. It requires strong leadership, clearly articulated vision and business goals, and clear communication and collaboration between departments.

With ESM, the organization develops a holistic approach to integrate, connect and work together to leverage technology by creating processes, systems and workflows that benefit both the company and the customer.

How Can ESM Defeat Silo Mentality?

This is where silo mentality will begin to break down through ESM. By implementing ESM, the organization doesn’t need to just adapt to IT processes and systems. It’s not about IT (or any part of an organization for that matter) having its own set of processes and systems and expecting the rest of the organization to align to those processes. Rather, it’s about getting all parts of the organization having a shared understanding of business value and how the parts of the business interact to deliver value to the customer.

With ESM, every department must be represented in the development of more efficient workflows and processes that better enable the use of technology and eliminate any obstacles that exist between departments. Including each department in these activities develops buy-in to what will work best for the organization. This buy-in makes it easier for ESM implementation and it also correctly positions IT to understand how each department uses technology, how they view it, what they need from it, and align those needs to organizational goals.

For any of this to work, one of the first things the organization needs to do is to speak the same language. The problem many departments run into is that they don’t understand the specific terminology used within each department. For example, an “incident” for IT is very different than an “incident” for facilities.

Leaders need to work with their managers and teams to integrate their teams so they can begin to understand one another. One way is by incorporating job shadowing days where team members can spend time learning about another department. Another way may be to host knowledge sharing meetings where departments share their current projects and its impact on the business and effect on customers. Increasing communication and transparency between departments helps everyone begins to understand how each team contributes to the organization.

Once your team speaks the same language and you being to implement shared practices, processes, and technology across the organization, silo mentality will begin to fade. After all, the barriers that resulted from having separate practices, processes and technologies will be blended into a shared approach, which is how the organization should interact anyway.

How To Implement ESM into Your Organization?

One of the best ways is to start small with a single workflow that involves different departments.

For example, the workflow that supports onboarding a new employee involves the human resources, IT, corporate security, and facilities departments. Pull together representatives from each of these departments and agree on the critical success factors for onboarding a new employee. Map the work that is done by each department when a new employee is hired. Review what information is needed by each department as they do that work. This will begin to identify the dependencies and sequences of work between these departments. Map the flow of work among these departments that would result in the best result for both the new employee and the impacted departments. Identify and define measures that indicate that the workflow will meet the agreed critical success factors. Now map how and where technology supports this workflow. Small projects like these can create an environment that is open to organization wide enterprise service management roll outs.

Remember ESM won’t be rolled out overnight and it may not be met with open arms by everyone in the organization. Continue to identify supporters who are open to new projects, learn to speak the language of the business and keep your ears open for feedback and ideas from other departments. Remember, ending silo mentality starts from the top!

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Why Service Management must move out of IT

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Is your IT service management “future ready”?

A recent MIT Sloan Management Review article[1] discussed how organizations must become “future ready”.  The article stated that becoming future-ready requires change to the enterprise on two dimensions:  the customer experience and operational efficiency.

Of these two dimensions, the customer experience will drive competitive advantage for businesses.[2]  Is your service management ready to enable and drive that differentiating customer experience?

The Future’s Impact to today’s (IT) Service Management

For many organizations, service management continues to be narrowly focused on the day-to-day operations within IT and follows a “service provider/internal customer” approach. To become “future-ready”, this approach to service management must change.

The organizational mindset of an internal service provider/internal customer construct must change to an enterprise service management approach.  The business exists to serve customers, not just others within the same business.  In other words, all parts of the business must work together to drive business success.

Value streams are the threads that link the parts of the business together for producing and delivering products and services.

Every part of a business is part of one or more value streams that delivers products and services to customers.  Technology underpins those value streams; by itself, technology doesn’t provide value to a business.[3] But because technology use is so ubiquitous within businesses, the line between technology (or IT) and business functions have become blurred.  In some organizations, the line does not exist.

This has two implications for service management.

  • Service management processes must be “waste free”. Any bureaucracy or non-value-added work within processes must be eliminated. Eliminating waste, bottlenecks, and manual intervention in processes help facilitate a good customer experience – things just “work”.
  • Service management processes must reflect and support the entire value stream, not just the IT portion. IT’s contribution to enterprise value streams, while important, is only a portion of those value streams. Having good enterprise service management processes facilitates good handoffs between contributors within the value stream, enables measurability, helps drive effective workflows, and promotes viewing value and outcomes from the customer perspective, not an internal perspective.

This means that service management must move out of IT and into and across the enterprise.

What is the impact to IT?

When service management moves into and across the enterprise, what does this mean for IT?

First, having strong business acumen becomes critical for IT.  Some IT organizations are too focused on technology and lack business acumen. Business acumen must be a core competency of the IT organization.  Why?  Because the business is about the business first, not technology.  Technology only enhances or enables what the business wants to do.  Having a strong business acumen helps IT understand why, not just how, technology can help.

IT can then become the trusted advisor for exploiting technology for business advantage.  IT must help its business find the right balance between “leading edge” and “tried and true” technologies; again, dependent on business goals and objectives.  To do this, IT must internalize business goals and objectives to understand and develop competencies and awareness of current and emerging technologies.

Lastly, “order taker” IT organizations will be outsourced.  If an IT organization cannot demonstrate or promote how it delivers true business value, IT will appear to be a commodity.  And commodities can be obtained from anywhere.

But if your IT organization is practicing good service management, IT can take a leadership role in expanding service management across the enterprise.

Get Service Management “future ready”

To get service management “future ready”, here are four things you must do:

  • Service management must be (re) envisioned from the customer perspective – the true customer. The true customer is found outside of the organization, not inside the organization.  This means that you have to understand how value is created and flows through the organization (or value streams).  Service Management must underpin the entire value stream – from the customer through the business and back to the customer.  Service Management must take an “outside in” approach so you can understand how work is getting done – and where obstacles and bottlenecks may exist.
  • Shift the service management focus to the entire organization. – The objective is to ‘float all boats’ in the service management ‘harbor’, not just the ‘IT boat’.  Why? The customer does business with the business, not with an individual component within the business.  Siloed business operational models must end.  If one part of the value stream fails, the entire value stream fails. This means that service management must expand to include all parts of the enterprise so you can work transparently and deliver an outstanding, consistent, and repeatable customer experience – as an aligned, integrated organization.
  • Automate. Humans have better things to do than call a service desk to reset a password or request products to which they are already entitled and eligible to receive. Now take this idea one step further – do you really want to irritate your customers with such tediousness?   Drive toward automating those day-to-day operational activities so you can free up people to do what they do best – innovate, imagine, and problem-solve.
  • Invest in knowledge management. Knowledge management must become an enterprise-wide capability.   In the “always connected, always on” digital economy, organizations can ill afford to spend time rediscovering what is already known within an organization.  Neither can there be siloes of knowledge within an organization.  Effective knowledge management is a key enabler of a “future ready” service management approach.

Service management can no longer be about just IT.  Service management has never been about this or than methodology – frankly, there is no “one-size-fits-all” methodology – it is about delivering business value and results.  The future-state service management approach is a blend of several methodologies and practices from all parts of the business (including IT) that enable the whole business to deliver value and results.  Get “future ready” now by moving service management beyond IT and into the enterprise.

Need to expand  service management into the enterprise, while still leveraging your existing investments?  With our Next Generation ITSM consulting service, Tedder Consulting can help you get the best of both worlds – contact us today!

For more pragmatic advice and service management insight, click here to subscribe to my newsletter!

 

Picture credit:  Shutterstock

[1] Weill, Peter and Stephanie L. Woerner., “Is Your Company Ready for a Digital Future?”. MIT Sloan Management Review, Winter, 2018.

[2] Ibid.

[3] Westerman, George. “Your Company Doesn’t Need a Digital Strategy”. MIT Sloan Management Review, Spring, 2018.

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