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March 2011 - Posts

IT must deliver "value" to the business or you are irrelevant

Published: March 31 2011, 09:17 AM | 3 Comment(s)
by Robert Stroud

Do you have a service catalog containing a large number of IT components? If you do, do they have costs of the technology component and does it have the fully loaded costs including operational maintenance and enhancement? Additionally do you have metrics to measure the service in business terms that the business relates to, not simply server availability?

The answer is probably not, or partially at best, and yet you wonder why the business sees little value in the IT Department.

A fundamental challenge in most organizations I visit is the lack of correlation or connection between IT metrics and the business. Technical and process performance of IT services are typically measured in terms of response time, availability, raw costs, incident response times and so on but these IT metrics do not engender or communicate value to the business.

In the past IT has been defined and positioned as a technology provider working from the ground up, writing the applications, testing, promoting to production, enhancing and also running the entire infrastructure to deliver the service. Now each person involved in the delivery of the service is focused on their components and assuring their component but has little focus on the consumed service.

Moving forward, the relevant IT organization must focus on the service delivered to business and the value it offers. It is only when IT is viewed as efficient and valuable in the eyes of the business that value will be perceived. This requires a fundamental transition of the IT focus from a bottom up approach to a top down approach where you work with the business to define the business value metrics up front as part of the solution specification and requirements that are directly linked to critical business performance metrics external to the IT organization.

An example that I often use with IT folks harkens back to the time when I was in banking--the cost of a transaction. A fully loaded branch originated transaction would include a large component of non-IT costs such as premises, branch labor and so on and if you assume that the total cost is $20, the total aggregated IT costs may be $1 per transaction. (This assumes performance, availability, etc.).  When the total cost of for an Internet transaction is maybe a total of $2, of which the IT portion is still $1, the business can make a decision to invest in offerings that move transactions from the branch environment and rationalize the branch network if they wish, but, this decision would then be weighed against customer value and expectations. In short the IT investment and then expenditure would be driven by the business strategy.

In summary IT MUST focus on business contribution.

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By: Robert Stroud
Robert Stroud serves as VP and as Service Management, Cloud Computing and Governance Evangelist at CA Technologies. Robert also serves as an International vice president of ISACA, is part of the Framework committee and was the former chair of the COBIT Steering Committee. Robert also serves on the itSMF...
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A Clock with No Numbers or hands- Knowing Your Audience

Published: March 28 2011, 01:21 PM | no comments
by Rich Graves

My wife and I recently purchased a new alarm clock that has no numbers or hands on the large clock face. This clock is not intended for us but rather our two year old daughter. The goal of this clock is tell her the time in her terms. As she would say simply "morning time or night night time." When it's morning time, or rather a reasonable hour for her to get out of bed and bother daddy, the top half of the clock face lights up showing a pink dancing cow with a sun in the background. When it's time to go to bed the lower half of the face which displays the same cow comfortably tucked into bed with a moon in the background lights up. That's it two modes- either night or day and nothing else. I love the simplicity of this clock and its focus on the intended audience- a toddler. Now whether the clock actually keeps my two year old in bed past 6am is a topic for another blog.

The makers of this clock (Kid'Sleep Classic by Kid'Sleep) understood the problem- toddlers get out of bed too early. They also understood the user- a two year old that can't tell time yet. From a self-service perspective end users and customers come to a web site with a problem- they need help. The issue I often see is that the self-service site is not built for the correct audience. The most common mistake in site design is terminology. The terminology of the site is built in terms of IT users and not the actual audience. The site should be in the user's language and not IT's language. Your end users can't spell ITIL and don't want to. Therefore they don't know the difference between a service request and an incident. And they certainly can't pick the right category for their ticket if there are hundreds to choose from and many have terms like Server, SAN and Exchange in them.

If you are building a self-service site consult your audience throughout the process. Ask them what consumer web sites they use and attempt to have a similar experience. If you have an existing self-service site take a look at it from the user's perspective. Is it in their language? Is it simple to use and navigate to find the two or three items they are looking for when deciding to go to the site? If users categorize their own ticket- is the list of categories reasonable in number (10-100 at most) and understandable to non-IT users? Now go out to your non-IT end users and confirm your assumptions.

I look forward to your comments, not only on IT self-service but on getting kids to sleep longer.

 

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By: Rich Graves
Rich Graves is a Senior Principal Product Manager at CA Technologies. Rich works on a team focused on strategy and innovation for the Service & Portfolio Management Customer Solutions Unit. During his eleven-plus years at CA, he has focused entirely on the Service Management and support market segments...
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"Just enough" Service Management - itSMF New Jersey - 6pm Monday March 28th

Published: March 24 2011, 02:45 PM | no comments
by Robert Stroud

Just returned from the ISACA EuroCACS conference in Manchester London where it was my honour and privilege to meet w"the Baby - Manchester, UK 2011"ith several hundred industry professionals and take a look at "the Baby" (more on this next week).

The highlight for me was the networking at the event. There were many shared stories of how IT needs to be nimble and agile to meet the constantly evolving business requirements (that is a good thing for us IT professionals) which is leading to a focus of the appropriate or "just enough" service management.

In line with this theme, for those of you service management, project management and governance professionals in the New Jersey area, I will be speaking on Monday evening at the local itSMF chapter meeting: "Efficient, effective and "just enough" Service Management to deliver business value!"

In this session I will be discussing strategies for delivering a service management program that is well defined, fuels itself by returning resources as fuel for execution and delivers factual based reporting for attestation to support data driven decisions!

The meeting commences at 6pm and for registration and meeting location details visit the itSMF USA NJ LIG Website!

Look forward to seeing you there!

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By: Robert Stroud
Robert Stroud serves as VP and as Service Management, Cloud Computing and Governance Evangelist at CA Technologies. Robert also serves as an International vice president of ISACA, is part of the Framework committee and was the former chair of the COBIT Steering Committee. Robert also serves on the itSMF...
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For Exceptional Customer Service Emulate the Ritz Carlton

Published: March 23 2011, 11:06 AM | 3 Comment(s)
by Rich Graves

I recently had the chance to cash in some Marriott hotel points to stay at the Amelia Island Florida Ritz Carlton for a special occasion. It was a fantastic trip with several luxuries and beautiful scenery but what stood out was the exceptional service. It goes without saying that this level of service comes at a price but the value to me as the customer was well worth it. There were several factors that came to mind when tying my experience back to the world of IT service management that I think are valuable to consider in your organization.

  • Urgency - The staff's urgency to address all requests was what I found most impressive. Every time I picked up the phone or asked the staff for something they assumed all my requests were urgent. The refrigerator in our room wasn't working properly and when I called about it the person on the phone said they would send up a technician immediately and if it wasn't fixed to our liking they would replace it. They were respectful of my time, understood the problem and what the appropriate resolution would be. How they addressed it wasn't my concern. It was about immediate first call resolution and minimizing my time on the phone.
  • Authority- This is often one of the biggest issues when it comes to call center and internal IT analysts. They either aren't empowered with authority or don't believe they have authority. The lack of authority requires technicians to transfer calls or contact managers and ultimately delays resolving the issue/incident and poor customer satisfaction. From the Ritz staff I never heard "let me check with my manager."
  • Ownership- Each person I dealt with owned the issue. When I asked for directions to the restaurant, the staff member personally walked me there. When I called about the broken refrigerator, I wasn't transferred to housekeeping or facilities. I was told they'd get me a working refrigerator right away. Successful first-call resolution means the first point of contact needs to identify the problem and understand the satisfactory end result, then be held accountable for ensuring the issue is resolved, even if it requires involving others to fix it.
  • Consistency- The level of service was consistent across the different staff members I dealt with. The lack of consistency is often a pain point for end users when dealing with first level IT service desk teams. This is often due to different areas or levels of expertise amongst a team. An investment in regular technical and customer service training as well as a strong knowledge base can improve consistency across the team and empower your analysts.
  • "The customer is always right, even when they're wrong"- This is one of my favorite quotes. I heard it many years ago when watching a program on the staff at a high end New York hotel. Great customer service employees are trained not to cast blame or judgment about a request. It's not about pointing the finger at what the customer did to get themselves in the problem to begin with. It's about understanding the problem and providing a solution. Service desk analysts should not judge a user but rather educate them and get the user back up and running.

Any study in customer service will certainly bring Ritz Carlton up as a reference case but I think from an ITSM perspective we need to think about how our end users expect to be treated. And what level of service we can afford to provide as an organization. Exceptional service comes with a price but the value it gives users may far outweigh the cost. Create your own business case to examine the "right" level of service for your end users or customers. What is your goal as an organization and what level of service do your employees/customers expect? Is your team trained and empowered to focus on urgency, authority, ownership and consistency?

In the end IT should focus on is getting users back to work quickly and remember that every end user is working on generating revenue for the business.

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By: Rich Graves
Rich Graves is a Senior Principal Product Manager at CA Technologies. Rich works on a team focused on strategy and innovation for the Service & Portfolio Management Customer Solutions Unit. During his eleven-plus years at CA, he has focused entirely on the Service Management and support market segments...
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Six Predictions for the CIO in 2011 part 6 - The Changing Role of the CIO!

Published: March 22 2011, 09:30 AM | 4 Comment(s)
by Robert Stroud

The role of the CIO is fundamentally transitioning from one of simply managing operations to managing IT as a service value chain, a chain that may become more complex over time. This transition will require IT to weave together and optimize the complex network of partners that make up the Service Value Chain to best support various customers to enable business. These operational changes will allow the CIO to be agile and allow delivery based on demand at the most cost effective rate.  With the operational aspects in place, the CIO will also need to move quickly and reorganise to ensure that IT can drive and deliver innovation to the business.

In fact, prediction number six (and this is the most transformational prediction) is that the role of the CIO will transition to that of the Chief Innovation Officer.  The Chief Innovation Officer will have a team that will partner directly with the business to deeply comprehend the business strategy, partnering to deliver solutions rapidly to the business to exploit the market opportunities.

The transition of the CIO to Chief Innovation Officer has already begun in some organisations.  For example,  a manufacturer CA Technologies works with is treating all new product development as an innovation project that encompasses all aspects of the program of work, including the IT components. In this case, the team treats the technology components as a single aspect of the innovation and the financials. Initial and ongoing costs, as well as profitability, are profiled and tracked, which allows the business to more rapidly make determinations. 

The CIO of tomorrow will need to be focused on driving innovation first, with the delivery of services to be effectively managed based on the capacity demand.

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By: Robert Stroud
Robert Stroud serves as VP and as Service Management, Cloud Computing and Governance Evangelist at CA Technologies. Robert also serves as an International vice president of ISACA, is part of the Framework committee and was the former chair of the COBIT Steering Committee. Robert also serves on the itSMF...
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