Tag Archives: ESM

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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Doug Tedder is a panelist on BrightTalk’s “ITSM in 2020: Experts’ Predictions” webinar

December 3, 2019:  Doug Tedder, principal consultant of Tedder Consulting LLC, will appear as a panelist on the December 12 BrightTalk webinar “ITSM in 2020:  Experts’ Predictions”.

Doug joins Claire Agutter,  Director of Scopism and ITSM Zone, and Roy Atkinson,  Senior Writer/Analyst for ICMI and HDI of InformaTech on the panel to discuss what 2020 will mean to ITSM.

The webcast airs at 11:00am ET on December 12. 2019.  To register for the webcast, visit https://tinyurl.com/v64ahf3 .

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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Doug Tedder discusses “Modern Service Management” on the StatusGo podcast by InterVision

May 20, 2019 – “Is ITIL® dead?”  

That’s the question that Jeff Ton, SVP of Product Development and Strategic Alliances,  asked Doug Tedder, Principal of Tedder Consulting to begin Episode 22 of InterVision’s “Status Go” podcast.

During the 33 minute podcast, Jeff and Doug discuss ITIL and IT Service Management (ITSM) in an age of digital transformation and agile: What modern ITSM looks like, how to succeed, what might be going wrong with your implementation and even how it can work with an agile environment.  Doug stressed, “Modern service management is about doing what is right for your organization.  You have to find the right balance between responsiveness and stability.”

Listen to the podcast here.

Enterprise Service Management or Enterprise Silo Management?

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Kelly orders chocolates through her favorite confectioner’s digital storefront from the comfort of her living room. Kelly makes her selection, enters her credit card and shipping information, and presses the “order now” button. Within seconds, she receives an on-screen message from the confectioner, thanking her for her order, and informing her that she’ll have her chocolates the next day.

At the confectioner, Kelly’s request is first processed by the Order Entry Department, who confirms her information and charges the sale to her credit card. Order Entry then creates a sales order, which is sent to the Fulfillment Department. Fulfillment selects the chocolates from inventory and updates the inventory management system with the change. Fulfillment then packages Kelly’s selections and sends the package to the Shipping Department for overnight delivery.

All of this behind-the-scenes activity happened without any involvement from Kelly – other than her single interaction to order the chocolates.

Are your customers enjoying a differentiated experience interacting with your company’s digital storefront?

Are the customer’s interactions seamless and friction-free?

Do materials and information flow smoothly through the organization?

If you’re not able to answer ‘yes’ to the above questions, then you have some compelling reasons to implement enterprise service management (ESM).

Some Popular Approaches to ESM

Many ESM approaches consist of extending the use of the IT service management tool into other areas of an organization, such as Facilities or Human Resources. This is a popular approach that often results in cost optimization of the IT service management tool by using that tool outside of the IT organization.

In a lot of ways, this is a reasonable thing to do. Whether it is a work order being completed by the facilities organization, or human resources on-boarding a new employee, using a tool that facilitates a consistent, repeatable approach to information capture and managing workflow just makes sense.

Another popular approach is establishing an enterprise service desk. Like an IT service desk, the enterprise service desk becomes a single-point of contact for internal employees to receive assistance with any request or issue. Employees benefit from having only a single point of contact for any organizational need or issue. The organization benefits by delivering a centralized approach for managing such contacts, rather than having each department having to individually staff such functions.

Implementing a self-service portal is also a popular approach for ESM. Employees can use a portal to find information or make requests without having to contact anyone. Issues such as requesting a replacement for a burned-out light bulb or updating voluntary benefits can be conveniently managed from an employee’s workplace.

But are any of these approaches really “enterprise service management”? Or are these examples of enterprise silo management?

What You’re Doing is Enterprise Silo Management

Extending the ITSM tool to other areas of the organization may improve the ROI of the tool. Establishing enterprise service desks may help centralize management of internal requests and issues. Implementing enterprise self-service portals can result in time savings for employees. It may even result in optimized departmental processes and workflows.

But if the goal of your ESM initiative is to only extend the use of IT’s service management tool into non-IT areas of the organization, what you’re doing is Enterprise Silo Management. You’re enabling (encouraging?) your organization to continue working as a collection of siloed departments.

While I would agree that optimizing departmental processes and workflows is a good thing to do, keep in mind that departmental optimization will deliver benefit…to only that department. It’s like speeding up one part of a conveyor belt but ignoring the big stack of boxes on either end. In fact, it’s really not speeding anything up – it is only exacerbating the symptoms of an organization whose interdepartmental workflows are not well integrated.

This is where these so-called approaches to ESM fall short. These approaches don’t enable or deliver a cross-departmental flow of information and work. There’s no end-to-end view of enterprise value streams. Requests or issues that (will) come up within the enterprise still requires the consumer (employee) to know what they need and what organization fulfills that need before they interact with the portal.

By following these approaches, your business will never realize the value of enterprise service management.

Why Your business Needs Enterprise Service Management

Organizations operating within a silo mentality, in which the departments within the organization are poorly connected with (or even isolated from) other parts of the organization, cannot react or respond as quickly as needed to changes in market spaces or business.

Think about it. There is no single part of an organization that can exist in complete independence from the other parts of the organization. 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.

And in the digital age, having the ability to quickly shift and react to changes in market spaces is critical for business success.

This is why your business needs ESM – Enterprise Service Management.

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 workflows enable organizational agility because there is clarity and shared understanding regarding 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.

Moving to Enterprise Service Management

Here are some tips to help you move from Enterprise Silo Management to Enterprise Service Management.

1. Strong leadership is required 
To have success with ESM, the focus must shift from achieving departmental objectives to enterprise goals. Silo mentality must be eliminated from the organization.

2. Teach employees the business of the business 
Many employees today are unaware of how the business operates outside of their own area or department. Having a good understanding of how the business does business helps with ESM implementation and enables improved employee productivity.

3. Map the enterprise value streams
No single part of an organization is independent of the rest of the organization; it takes all parts of an organization to deliver value to its customers.  Mapping value streams at the enterprise levels helps the organization visualize how work and value flows through the organization and to the customer.

4. Define or lean out processes
For each value stream, form a cross-departmental team to define any needed supporting processes. If processes are defined, review those processes to ensure that they are as lean and waste-free as possible.

5. Iterate
Don’t try to instantiate all your enterprise value streams within your service management tool at the same time. Rather, start with a single enterprise value stream, capture any learnings, and then apply those learning to the next value stream-to-tool implementation. (By the way, this approach should be the “new normal” for maintaining your ESM implementation.)

So, should organizations optimize at the departmental level or at the enterprise level? The fact is that to be successful in the digital age, organizations must do both. Doing one without the other only results in internal friction and waste.

Following the above tips will get you on the right path for good ESM that also results in optimized departmental and enterprise work streams.

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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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5 Ways Processes Make SMBs More Agile

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“Processes” often sound like a dirty word for small and medium-size businesses (SMBs). When you’re working in a small organization, your team has no choice but to work together to ensure maximum productivity.  Many SMBs worry that processes will actually hurt productivity.

The common concern goes something like this:

  • Having a process will just slow down projects by requiring approvals and meetings 
  • Once a process is in place, the organization will need to pivot or focus in another direction because they must be nimble – and processes will only get in the way of pivoting
  • Defining and implementing a process takes too much time and most people don’t stick to it – so why bother implementing it?

These worries result from badly implemented and poorly designed processes. Good processes won’t cause the above problems. In fact, good processes make your company more agile. 

Here are 5 ways that good processes will improve your organization.

1. Processes increase transparency within organizations

Even in SMBs, there can be silos and lack of communication on goals and initiatives because everyone is so focused on their individual roles. A proper process ensures effective collaboration between everyone. When everyone is clear on process and more importantly, the reasons for a process, they are more likely to support that process from their respective position.

But that’s not all.  This second part is especially important for SMBs. Often, team members understand what everyone else is doing but not necessarily why they are doing it or how it drives business. A process breaks down those communication barriers so that everyone is confident in each role and the projects that are driving the company forward. 

2. Greater accountability 

Usually in SMBs, everyone wears many hats. Your marketing person may also be in charge of sales and web development and your HR person could also be in charge of customer service.

This can be a great thing and it can make your company extremely agile — sometimes.  But when people handle many different responsibilities, it can be difficult to see who is really doing what. 

Generally, when a small group of people are doing many different things and the processes aren’t clear, projects can get dropped or mistakes are made. With so many overlapping responsibilities, it’s easy to point blame on everyone or no one. You may often hear: “I have so much going on that I didn’t realize that project was on my plate” or “I just assumed So-and-So was handling that.”

Processes eliminate this problem because they make everyone’s responsibilities very clear. With a process, no one can say “I didn’t realize that activity was on my plate to do” because they – and everyone else – will know exactly what falls under their roles and responsibilities.

3. No More Throwing Spaghetti at The Wall

A common problem among SMBs is that employees often feel there is no time to actually find long-term solutions to issues.  As a result,  they’re constantly forced to fix things quickly and making it work “for now.”

But, the “for-now” approach actually leads to lost time and less productivity because you are constantly having to go back to fix that same problem over and over again. In short, you’re just throwing spaghetti at the wall just hoping one of these solutions will stick.

Processes create clear paths to reliable and repeatable long-term solutions. When you create a process that efficiently creates a long-term solution, this results in your team having the time to take care of their other projects and responsibilities.

4. Your budget will go farther

SMBs have limited budgets – everyone knows this. Processes help you to do things more efficiently and effectively, with more of a focus and connection to the bottom line.

When you have haphazard projects, you’re “throwing spaghetti at the wall”.  There is no accountability, and it is very easy for your team to be working on things that don’t connect to the bottom line.  

This means your team is working hard – they might even be overworked – but you’re not actually growing your business. 

What then happens is one of two things: your team feels overworked and under-appreciated and their work starts to decline or you hire more people to get more work done, even if it’s for projects that don’t necessarily provide value to the organization. 

Either way, you are paying for a company that might not be delivering as much value as it could.

Developing efficient and effective processes helps ensure every project connects to the bottom line. This way your team won’t be wasting their time or energy, and you won’t be wasting money paying for work that doesn’t actually grow your business!

5. You can be continuously improving

In an SMB, many owners and team members are often just trying to stay afloat and put out fires as they come up. They are finding quick fixes, squeezing by on tight budgets and just trying to stay ahead of the competition. 

It can be hard to see much growth or understand how the business is actually growing. With a process, you can establish a baseline from which to measure improvements. You’ll be able to say “This is where we started and this is where ended up and here’s what went right and what went wrong.”

Defined processes give your business a chance to improve. You’ll have a clearer picture of what decisions you as the business owner need to make.  You will enable your team members to feel empowered about what they are able to accomplish and it provides a greater sense of responsibility and contribution to the company’s success.

The point of this is: the right process can help your organization accomplish more and grow faster. So instead of questioning the value of processes or avoiding them all together, take the time to establish the right processes or improve the ones that you already have. By defining processes, you actually become more agile – you can quickly and confidently identify and implement the operational changes required to quickly respond to changes in the market and keep you ahead of your competition.

Looking for more support?

Tedder Consulting’s new Process Improvement Workshop can help you quickly and effectively improve your processes in your organization! Learn more about it here!

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How to Defeat Silo Mentality

Share twitterlinkedinmailThere’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!Share twitterlinkedinmail

Warning: You Might Be Already Disappointing Your Customers

Share twitterlinkedinmailWe have bad news for some IT organizations. You might already be disappointing your customers. The Fourth Industrial Revolution has already occurred and customer expectations are higher than ever.

Most of these increased customer expectations are due to new technologies. Customers expect and want innovation from the brands they do business with and they are more informed than ever about the different options available to them. They want more and if they can’t get it from a certain brand, they will go to a competitor. 76% of customers now report it’s easier than ever to take their business elsewhere.

This means that brands and specifically, IT teams, need rethink how they manage their services and technologies. IT teams need to act more efficiently and be more in sync with the rest of the organization. Above all, they need to understand their customers’ expectations.

There are four things customers expect now that every organization needs to address.

1. Connected Processes

Customers see a connected brand, not an individual department. This is why connected processes are crucial and why every part of the organization must work together and technology must seamlessly link every piece of the customer’s journey.

70% of customers say connected processes, including seamless handoffs or contextualized engagement based on earlier interactions are very important to winning their business.

Device hopping is prevalent among most consumers. They jump from phone to tablet to computer and back to phone again. They expect to have the exact same experience with a brand, no matter how they are connecting with that brand. 60% of consumers change their contact channel depending on where they are and what they’re doing. So, if they have a conversation on Twitter with that brand, they expect the call center representative to know about it when they call in the next day.

For IT, that means they need to create connected processes that include every part of the organization.

2. Personalization

Personalization may be the most important customer expectation post-Fourth Industrial Revolution. Online, everything is personalized. Just look at the way Google personalizes search results! So, consumers expect their customer service experiences and buying experiences with a brand to be personalized as well.

84% of customers say being treated like a person and not a number is very important to winning their business. They expect personalized offers based on their purchase history, retargeted offers in ads or emails and user-generated content.

Companies now must design multiple personalized experiences for each single product or service. More importantly, organizations must end silo behaviors so that everyone in the organization has access to communication history, buying habits and customer preferences.

3. Innovation

If you’re not innovating, then you are already falling behind. 63% of customers expect companies to provide new products and services more frequently than before.

Just look at how expectations around cell phones have changed. The iPhone and Android competition have led consumers to expect constant innovation. If your phone is over a year old, it’s already considered “old”. If either one of these companies don’t put out a new model every year, they risk losing a huge chunk of the market. Customers expect new and better models all of the time. If you don’t meet customer expectation, you can bet that your competitors will.

For IT organizations, this means they must improve their processes so they can shorten product development cycles and complete projects faster than ever. This is not news for many CIOs as 65% of IT teams say innovation for competitive differentiation is a high priority.

4. Response Times

Social media revolutionized how buyers communicate with brands. Consumers are always on and always connected and they want to answers quickly. 77% of US consumers rank “Valuing My Time” as the most important part of online customer service.

Even when they can’t reach a call center using traditional means, customers are reaching out in different ways and they expect your customer service team to have all of the information about their customer journey and their needs. This, of course, brings us back to the importance of ending silo behavior and improving connected processes.

Customers also expect self-service options when it comes to their needs. They want self-checkouts and access to their data and accounts. IT organizations need to be prepared for the customer’s desire for data and provide the correct tools that consumers can use.

What can IT do to improve?

It’s clear that customers expect more. How can IT organizations change to support these new customer expectations? In a recent survey, 62% of execs said they had a management initiative or transformation program to make their business more digital.

Embracing VeriSM™ can help IT organizations lead their organizations into digital transformation. VeriSM™ stands for Value-Driven, Evolving, Responsive and Integrated Service Management. It’s a business-oriented approach to Service Management. It’s designed to keep the entire business connected and evolving so that it provides more value to the consumer.

VeriSM™ does away with the “one size fits all” approach and facilitates a tailored approach so the organization can focus on using the right practices that will fit the business’ needs. Not only will it keep the organization focused on business goals, but it will also help break down silos within the organization.

Whether you choose to embrace VeriSM™ or another service management approach, it’s clear that consumers are already in the digital age and IT organizations must keep up. IT leaders need to focus on faster project timelines, improved processes, better interdepartmental communication, and delivering a superior customer experience.Share twitterlinkedinmail