ITIL® Executive Overview
Benefits of a Service Management Framework1 H 39 M
Learn about the benefits of implementing an IT service management framework with the ITIL® executive overview mini series taught by Jo Peacock.
Benefits of Service Management
- Episode Description
This 2-parter gives looks at the common complaints that businesses have with IT and the reasons for implementing an IT Service Management framework. In the 2nd episode we explore the numbers behind the benefits that have been reaslised by organisations of varying sizes globally.
Welcome to ITProTV. I'm your host, Don Pezet. [CROSSTALK] [MUSIC] >> You're watching ITProTV. >> Hello, and thank you for watching ITProTV. Helping you learn everywhere you go. I'm your host, Zach Memos, for this episode of ITIL Executive Overview. Benefits of Service Management is the name of this episode, let's find out more from our expert Jo Peacock. >> [LAUGH] Well, there's an introduction, yeah that was a scary introduction. Zach, how are you? >> Good, doing great. And this is very exciting, beginning of a little miniseries here. >> Yeah, normally when we are in a sort of a classroom environment, for instance, then we would quite often get, or I would quite often get asked to provide overviews for executive levels. People that didn't necessarily wanna go on an ITIL foundation course. >> Right. >> Or people that, because I mean that's a three day course. That's a three day class, they didn't necessarily want the accreditation. But also they want to understand more about what the benefits of ITIL are, and what the benefits of implementing a service management framework are. So really, the intention of this particular series is to, and it is a very short series so we can call it a miniseries, is just to really go over what we would normally do in an executive overview, which is take a look a the benefits of service management. And I don't just mean sort of the hypothetical benefits. I don't mean the theoretical benefits. What I actually mean are the tangible benefits as well. What you expect to achieve by or the benefits you expect to realize by implementing the service management framework. And so that's what I wanted to do in this particular series. >> And that's the takeaway from this course. >> Well not just that, but it's also a look at sort of ITIL as a framework. >> Okay. >> So in our first episode we're going to review the actual tangible benefits from implementing the service management framework. And then in our subsequent episodes, we're just going to look at the ITIL framework in a little bit more depth. >> Okay. >> We're not going to go to the depth that's needed for an ITIL foundation class, because obviously we've got an ITIL foundation series and we really don't need to repeat all of that, but we are aware. And I'm perfectly aware because of the queries that I get, that there are those out there that don't necessarily want to take an accredited class but that simply want to have an understanding of ITIL itself. >> Right. >> And so for the first part of this particular series we're going to be looking at benefits, and then in the second part of this series we're gonna spend some time, a few episodes, just looking at our ITIL processes themselves. >> Wonderful. >> And just a really quick recap over what those processes are, just a synopsis of ITIL. >> Fantastic. >> But when I talk about the benefits, I'm not just talking about the benefits of ITIL though. And I think that's something that I kind of want to make clear right at the very start, we are not talking about benefits of just ITIL. We're talking about the benefits of a structured service management framework. >> Okay. >> What do you know about the difference between or the relationship between service management and project management? [LAUGH] This is called putting him on the spot, right. [LAUGH] >> Jo, I'm gonna defer to you on this one. >> [LAUGH] >> I know that you know more than I. >> Well the reason that I ask is because there is an overlap between the two, and we call that dev ops. We call that service transition, and we'll take a look at it in a subsequent episode. But there is, as I said, there is an overlap. But project management are responsible for creating new services. They are responsible for designing and developing and then deploying new services into the live environment. And service management, well I like to think of service management as the book end to that. Service management are the people that actually take a look at the strategy, they come up with the ideas for the new services. But then what they'll also do, they'll hand that over to project management and project management design and develop and then deploy. And then service management pick up the new service and then they run it as part of business as usual, as part of the operational perspective. So what we're going to be doing in this particular series is we're going to be just taking a look at the operational side of things, so the business as usual side of things. Now there is gonna be some overlap into project management. And in fact there's actually going to be some tenderals into project management where we might not have the project management guys pick up certain things. And we might say, well look, that still needs to happen. And so because it still needs to happen, it's gonna happen at this point in time. But we're going to do it at the same time that the project guys are going to do it. Or we might ask the project guys do it own our behalf. So there is a synergy between the two. I expect there to be teamwork, I expect it. If there's not, then we've got a very disjointed IT team. And I have to say, and I am gonna say this, that that's actually quite common. That's not an unusual to have an IT team that consists of two distinct sides. And I hear this all the time, where we've got project team and the development guys, and then we have got the service operation guys and the business as usual guys, and they're the support guys as they're called. So the project guys build something and then they kind of throw it over the wall to the support guys, and the support guys have got to deal with it afterwards. Yeah, that's not exactly how you want it. >> Not ideal. >> No, what we want is a cohesive IT structure, that's what we want. We want collaboration between the two. And in an ideal world there shouldn't be a barrier between them. They shouldn't be two separate teams. They should be two cohesive teams that collaborate on not just on projects but also on support work as well. >> Okay. >> And that's what we're aiming for. And if we have service management and project management implemented and we have a framework for both, and you'll actually find that that does work and it works really well. But it also saves us money. Let's face it, that's what everybody wants, right. >> I wanna make money. >> [LAUGH] >> Save money, ain't gonna happen. Make money. [LAUGH] >> [LAUGH] No Zach, you wanna save money. >> I wanna save money. >> Yes you do. >> She's right. >> Let's take a look at some common complaints for IT. Because what I'm really doing here is looking at the justification for service management. Not just ITIL, we're talking about things like SIAM and we're also talking about [INAUDIBLE] as well. There are other service management frameworks out there. And of course we already have, at the time of recording, we have a SIAM series. We are currently in production with a series as well. So we are involved with all of the service management frameworks and not just ITIL. But these are common complaints across the world, around the world, just general complaints. If you think about, and this is just sort of market research, by the way. This is not something that we have done ourselves. We've taken our information from places like Gartner and Forrester. This is just general market research. Do you know that 21% of our organizations, just companies in general, view IT as an expensive overhead? >> Certainly. I would have thought it would be even higher than that. >> Yeah, it's only 21%. >> Yeah. >> I think a lot of organizations now, if we were to turn the clock back to when ITIL first started, so over 20 years ago now. >> Way back in the day. >> [LAUGH] Yeah, when that first started, it would've been more than that. But now we recognize that IT is an integrated part of our industry. But nevertheless, they're still 21%, so that's still quite high given that you're talking about the generation of people that cannot leave their cell phones for longer than five minutes. Right, and yet still 21% of people think that it's just an overhead, that's quite scary. And only 45% of people consider IT, that's the IT team, to be necessary because they- >> Thought that number would be higher as well. >> Well, no, I mean, I would have thought, well, actually, yes, you're right. Because if only 45% consider IT to be necessary, I mean, we need IT to do absolutely everything in our organization. >> To do absolutely everything. >> You can't get into our building without IT. You can't get through a door, probably in your building, without IT. You can't do anything without IT, IT sends and receives email, IT sends and receives texts. It's IT that sends and receives or makes and receives a phone call now because it's all VOIP, it's all voice over IP. So when you consider that IT is part of absolutely everything that we do, and yet only 45% of organizations think that they need it. >> It's baffling. >> [LAUGH] No, we all need it, and 100% of organizations use it. What about, 32% of business users see IT as a valued partner? That means that the rest of them see IT as something other than valued. >> Like an errant cousin or something? >> Right [LAUGH] or even as a partner, I mean, consider this. Because IT is, well, it's a partnership with the organization, and yet there's only 32% of business users, that's people like you and Zach. Only 32% of people consider IT to be valuable. That's, yeah, and 37% of business users perceive that what we do in IT is lay down the law, that's what it says. >> [LAUGH] >> What we do is constrain it, that's what we do. And if it wasn't for the the IT team, we'd be able to do whatever we wanted, which is great, but there'd be chaos. But they don't perceive the value in that. They think that we constrain, and they don't understand why we constrain. And a lot of this is down to miscommunication, by the way. And again, that's something else that is really something we can address by implementing the service management framework. And 14% of organizations, this is quite low compared to the others, and I'm kind of impressed by this, but then I'm not, because it worries me. 14% of organizations do not consider IT to be necessary for business advancement. In other words, we could have grown without IT. >> Yeah, we're talking about the guy that sells brownies on the corner here, I think [LAUGH]. >> Well, I don't know, because even he needs IT now. >> No, I believe that, eveybody does. >> Because if you're selling brownies, let's just take him. Let's say that here in the US, for instance, if you're selling brownies in the corner, then you're making money out of that. And that means that you've gotta pay taxes on that money. Guess how you pay your taxes? You have to do this in IT, you have to get on to the tax service. Whether it's HMRC, whether it's the IRS, no matter who it is. Your tax organization, your tax department, you've gotta file your taxes. So to turn around and say that even the guy, that's probably the guy on the street corner selling brownies, well, the fact is that he needs IT as well. And you can't tell me that he doesn't have a cellphone. >> Right, that and also, unless he's on social media, he's missing a huge portion of the market, he could be reaching millions. >> Right, right, and yet 14% of organizations don't consider that they need IT to advance. >> That's crazy. >> That's still a huge amount, I mean, I know it's lower than the rest, but it's still a huge amount. >> It is, it is. >> So I want to sort of point out here, we've got the stated benefit of implementing best practice. And what that means is, in the ITIL publications, and we'll talk about them in a little while. But in the ITIL publications, we have stated benefits. In other words, they say well, what we do in a service management framework is provide value to the business. Zach knows something about value, what do you know about value, Zach? >> Value is perceived. >> Right, okay- >> But you didn't think I was gonna do that did you [LAUGH]? >> No, I was hoping you were, I didn't actually set him up for this, so I'm glad. I didn't prepare him for this, but value is perceived. One of the things that we miss out in IT, we're not very good at selling ourselves in IT, by the way, did you know that? >> Yeah, I imagined so. >> We're not, we tend to be the kind of people, I mean, you've seen that just looking at the previous slide. We tend to be the departments and the teams that will just sort of sit in the corner and just quietly get on with our work. And we're not very good at selling ourselves, we're not very good at saying, this is what we've achieved, this is what we've done. And because of us, you have been to achieve this. We don't do that, we just wait for them to ask us for something, and then we tend to give it to them and say, there you go, that's what you asked for. Or, no, you can't have what you asked for, but we've given you this instead. And we're not very good at sort of articulating why it's been like that. We're really not good at that, so when we talk about providing value in the form of goods or services, you will be amazed by how many organizations don't appreciate the value of IT. And it's simply because we're just not very good at articulating how valuable we are. We should be in a position where we integrate IT with the business strategy. In other words, whatever the business is decided is a strategy, then IT shouldn't be running, behind picking up the pieces and trying to catch up, IT should be leading that now. Like I've said, without IT, you can't even get through the front door. So IT should be leading the strategy, they should be driving the strategy. And in fact, they should be the ones that sit in on the board of any organization and say, hey look, we've got this new technology, we can do this for you. What we're also able to do, by the way with implementing best practice, is with a framework, we can control cost. A lot of IT organizations, a lot of IT departments, for instance, that, and we call them service providers in ITIL. But there are a lot of IT departments that don't really have a good handle, should I say, on cost. How much money is being spent and where it's being spent. And what we do is, we take a budget from the organization and we're actually seen as a cost center to the organization. When in fact, if we can demonstrate that we are delivering value, then we should be seen as a profit center. So a lot of implementing service management allows you to take the cost center, and turn that into a profit center. So we're no longer just a cost, we're no longer a drain on the budget, but we're actually seen as driving a profit for the organization. It's a huge change in perspective, that's what we should be aiming to achieve, and that's what you can achieve by implementing best practice, as well as management of risk. It's all about implementing efficient and effective processes. Now efficiency means Doing it right the first time, by golly. >> [LAUGH] No, it doesn't, we talked about this, Zach, you know we have. And not just prior to this particular episode, but we have talked about this at length. And efficiency means minimal waste. And in service management terms, it means achieving an outcome, that's being effected with well, minimal waste. Minimal waste in terms of time, so as quickly as you possibly can. Minimal waste in terms of money, as cheaply as you possibly can. But minimal waste in terms of scale, finding the right person to do the right job. >> Which is exactly what I meant by doing it right the first time. >> Did you know that having somebody overskilled doing a particular job is just as inefficient as having somebody who is underskilled. >> Yes, we talked about that before. >> We have talked about this before in one of our other series. We have talked about this. Because the person that is overskilled is generally not going to be giving 100% to that particular task at hand. They're probably gonna be distracted, I can do this with my eyes closed. They're gonna be distracted. Whereas the person that's underskilled at least is going to be trying to deliver 100%. Now, nevertheless they're going to be slightly behind in terms of productivity because they need the necessary skills. But the person that's overskilled is going to miss things as well. They're not gonna give 100%. So either one are just as inefficient as the other. So we need to have somebody who has the right skill level to do the right activity. >> Like the age old expression, overqualified. >> Right, yeah, it's really dangerous to have somebody that's overqualified. You might think that it's a great idea, but it's not. They're gonna get bored very, very easily and they're not going to give you 100%. So we talk about efficient and effective processes. And effective processes means actually doing what it's suppose to do and delivering the output that it's suppose to deliver. We want to have continual improvement embedded into sort of the business as usual, and in normal operations. Continual improvement means that we continually, in other words, on a regular basis, it's an iterative approach. We have an iterative approach to assessing and evaluating ourselves as IT and evaluating whether we are delivering value to the business that's about improving quality. But it's really about ensuring that we remain aligned to the needs of the business. That's what we need to do. So improvement to the business, or rather business benefits of bringing in IT service management, means that in an organization, we've got a handle on IT. We know what IT is doing. And we are able to make better decisions on our strategy, based on what IT can provide us because we have faith in IT. If IT understand the organization, then the organization can be more agile in the market place. Because again, they have that trust with IT, but IT is also working for the business. IT is not a constraint, It means that because IT understands what the business is trying to achieve, we can be efficient and effective at providing efficient services. In other words, improving their productivity. And again, having efficient and effective methods and processes for managing our suppliers means that we have rationalized sourcing as well. Because we're able to do it here in IT. We are able to the business, with a structured framework, with efficient and effective consistent processes, we are able to deliver competitive advantage to the organization. And in IT, what that means for us is that if we have got a structured, consistent, efficient, and effective framework, it means that we actually get a reduction in support cause. It means that our resolution rates go up. It means that we can implement more successful changes. And again, we can make better sourcing decisions. And then when we say, I just wanna go back to that more succesful changes, I also want to bring in the increased volume of changes as well. Because if our processes are more efficient and we have a consistent way of managing change, then actually we can handle a higher volume of change. And something else that we do too with consistency is bringing a common language. This is a huge, big benefit to IT. Because it means that our IT teams are talking to each other in a common language, but it also means that our IT teams are able to talk to all of their suppliers in a common language. Because if I consider ITIL itself as a service management framework then, let's just say that ITIL is the most globally recognized service management framework. Well, I said globally, in the world. It's the most widespread service management frame work. If you are a supplier, or a vendor, and you are trying to bid for a particular contract say within the government, anywhere around the world you have to demonstrate that you are working to an ITIL framework. That you understand service management, and that you are working to best practices. But actually you are therefore able to demonstrate that you make best use of the tax payers money that's being given to you. So there is actually a requirement if you want to be a supplier to government, that you work to a best practice framework. Well if that's a requirement then that means that they're working in a certain way and they want to make sure you're working in a certain way. So we're all using the same common language, we all have exactly the same way of working. Ultimately, efficiency leads to higher customer satisfaction, that's what it is that we are aiming for. And so why do we want to adopt ITIL itself, then? Well, ITIL is pretty much the same as any other service management framework. But as I've said, ITIL is the most globally recognized, should we say. And what you do with ITIL, is you adopt it, and you adapt it to suit your organization. So, it will help you to improve your overall quality, it will help you to control costs, and it will help you to align service management to the business and align IT to the organization. >> And Jo, at the beginning of the show you mentioned tangible reasons, and that you'd give us some numbers, so where are we at with that? >> Yeah, I did, yeah. But, right, well I'll just taking a look at the time, actually. And so what I'm gonna do, is I'm gonna leave you with a little bit of a teaser. So we're gonna come back in a part two, and we're gonna talk about that in part two. >> Part two of ITIL Executive Overview. Benefits of Service Management, part two coming your way, this has been part one. Make sure you watch everything in the ITIL Executive Overview series, you're gonna be very glad that you did. And by the way, you'll also be in the course library, where there's thousands of hours of additional content that's there to help you be successful. So check that out as well. Well, what do you know about ITProTV. ITProTV is binge-worthy, thanks for watching, I'm Zach Memos. >> And I'm Jo Peacock. >> We will see you again very soon. [MUSIC] >> Thank you for watching IT Pro TV.