ITIL 4® Executive Overview

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  • ITIL 4
    • Management Summary
    • Benefits of ITIL
    • ITIL Guiding Principles
    • ITIL Guiding Principles Part 2
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Management Summary

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This episode looks at the common complaints that businesses that are addressed by the implementation of best practice guidance.

Welcome to ITPro.TV. I'm your host, Don Pezet. [CROSSTALK] >> You're watching ITPro.TV. >> Hello everyone, and welcome back to another exciting edition of ITPro.TV. I'm your host Vonne Smith and this is our ITIL Executive Overview Series. And in this episode, we are going to take a look at the management summary. Here she is, Ms. Jo Peacock. >> Hey, Vonne, how are you? >> I am doing fantastic. How are you? >> It's great to be here with you. On this, well, I guess I was gonna say exciting but I wouldn't say exciting. We're looking at a summary of ITIL. And it's not that I don't think that ITIL is exciting, but we're gonna be looking at some facts and figures in this particular series. >> But facts and figures can be exciting. >> Okay. [LAUGH] >> [LAUGH] >> I'll take your word for it. No they can't seriously. In this particular series is really just to give everybody an overview of ITIL. So we will be doing that a little bit later on in this series, but also to give us some details of the ROI. The cost benefits and also the none financial benefits of implementing a management framework such as ITIL. So actually when we start of with this particular serie, we're not just gonna be concentrating on ITIL we're going to be looking at sort of pain points that most organizations faced with IT. And we're going to be looking at the benefits of all different frameworks as well. So we're not just going to be thinking about ITIL itself. >> Because it is something I know from our previous ITIL series that we've done together in the whole context. >> Yeah. >> You did the whole certification preparation. So how about think holistically? Remember that was one of our values, correct? >> Yeah, and ITIL itself, as we've moved and now we are into ITIL 4, ITIL itself has become more and more holistic. And we've had to step away from just pure service management and look at actually management of IT as a whole. And in fact, if we take a look at other frameworks and other methodologies such as VeriSM and even SIAM, then we're looking at the management of the organization and not just IT, because IT is no longer a separate part of the organization. If you think about your day to day work, let's just think about well not even just your work, your day to day living for instance, when is the first time you interact with IT on a morning? When is the first time you interact with IT? >> As soon as I open my eyes, because my alarm clock is on my phone. >> Right, okay. >> [LAUGH] >> You might think that that's the first time you interact with IT but it's not. >> Okay, well I take that back. >> Right. >> [LAUGH] >> You interact with IT while you're still sleeping. And for all of you that's out there that think no, no, no, I don't. Yes, you do. You sleep on a bed, I'm assuming? >> Yes. >> Yeah, good, right. And you've got sheets on that bed? >> Yes. >> Right. I could tell you now that unless your bed is old sort of like 40 years old, unless your sheets are over 40 years old, they were manufactured with some form of IT. >> You always get me Jo. [LAUGH] >> You get dressed? Well, you do cuz you stood there. >> I kinda have to, to come to work. [LAUGH] >> And the clothes that you're wearing are made with some form of IT. And even if they're actually made by hand and a lot of people would say, yeah, but I like to make my own clothes. That's great, but you're using a pattern that's been printed off on a printer that been shipped to you, and guess what the postal service use? >> I think there's a lot of IT in shipping. [LAUGH] >> Right, and we actually forget the fact that sort of going back 30 years ago. Yes, okay you can say that the first time you interacted with IT was maybe when you walked into the office. But the fact is that the first time you interact with IT on a morning is now when you open your eyes, you're interacting with IT immediately. And there is nothing that you do throughout the day that doesn't interact with IT. >> And, [LAUGH] I've been hosting with you for a while, and you always do that. Cuz I always think of technical devices, the phones, or something mechanical, that's what you kind of think of with technology. Be as things like clothing and sheets and those things, yes. To be able to have them and purchase them, it all requires IT. >> Yeah, and in fact, there's probably and I would challenge everybody out there watching right now. There's probably nothing that you are stood in right now that you are wearing that doesn't involve some form of IT. Unless you actually made it yourself, and even if you did where did you get the fabric from? Yeah, where did your wool come from? Unless you went outside into that field and sheared that sheep yourself, then I will pretty much guarantee. Well even then, what machine did you use to do it? >> Right, yeah. >> Yeah, you're interacting with IT in every single minute of every day, almost. And yet, take a look at this particular slide. 21% of organizations think of IT as an expensive overhead, and only 45% of organizations think that IT is necessary. And yet you can't walk through the door. You can't get to the door of your building without IT. And I don't know many organizations that would want all their employees to be sat there naked. Somehow it just doesn't seem quite right. And yet only 32% say IT is the valued partner. They see IT is being an expense overhead. And Vonne is kind of standing there now looking at these particular stats and thinking. >> Seriously, I'm like really? And at the next one, the 37% of business users perceive that IT constraints the business. By the way, my files are on TV over there, that's why I'm looking. >> [LAUGH] >> [LAUGH] Often to yonderville, really? >> Yeah. >> That's just yeah, these stats are kind of make me do the like, [SOUND]. [LAUGH] >> We all know, and anybody that knows ITIL know that ITIL came from the UK government. And yet, I can tell you now that having been in that environment, having been in the treasury, having been in the the GC, I can tell you now. That as far as the government was concerned, at the time when ITIL came about and while ITIL was evolving? Then as far as the government is concerned, there are a lot of people in the government that consider IT just to be a necessary evil. And in fact, most of them would take the word necessary out of that particular statement. They were just see it as being an evil. Something that's there to hinder and not to facilitate. And how many organization feel that way. Now I know that we will feel that way about processes and about the way that we do things that having to follow up processes, follow policies. But did you realize that actually most organizations can't stand IT? I know for a fact that you have called up a service desk, a help desk at least once in your life and thought to yourself, my goodness, haven't you? >> Yes. >> Right. >> Yes, definitely, I have to go through all these different procedures or different people. And then I'm pass around to, I need to pass you off to this department and that department passes you off to another one and I'm just like, what? >> Because we all have that sinking feeling. How many times have you actually tried to get on to one of these remote chat box systems and found that you're actually chatting with a robot? You are chatting with a bot, you're not chatting with a person. And you can tell that straight away, because they're not reading quite what you've said in that right way. And they giving you answers that don't actually, you know, have any relevance to the question that you've asked. And yet, what do you do? We're in IT, and yet we hate IT. >> [LAUGH] >> So you can see where these stats come from. >> Yeah. >> And I mean, these stats aren't just stats that we've made up. These stats are, these are figures that have from a lot of the, if we think about people like Gartner, for instance, or we think about all of the companies all around the world that actually go out and they survey organizations. And also from international standards, etc, we collate all of these stats, and we bring all of this together, and we take a look at it. And you think, do people really think like that? They still do. >> Yeah, because I've been working with you on different governance series. I'm like, my gosh, how could this be. But then I kind of think back to myself as a regular individual, if you wanna say, somebody that has worked in the public sector. And I can remember things like, well I have to enter these particular things in this particular portal, I have to go through all these screens. When it could have been so much easier if I would of just called up Sally or whatever in that department say, hey can you help me with this? But no I have to go through the, portal which is IT. >> Right. >> And I have to do all this stuff when it could of been so much easier. So it's funny now thinking back. Wait, I've had the same thoughts myself. So you just have to kind of see it in a different perspective from as a user versus somebody who's like, well, all of this governance training is fantastic. [LAUGH] >> Right, and and it's funny because I mean, I'm always the one that says all this governance training is fantastic, and governance really works. And it's only actually in this particular forum that I get the opportunity to show you exactly how it works and to show you the facts and figures of how it works and actually why it's necessary as well. I mean take a look at the first bullet point on this slide, 21% of organizations view IT as expensive. Now, again I'll take this back to you personally, and I think when was the last time you bought a cell phone, when was the last time you bought a mobile phone? And what did you think about the cost of that mobile phone? She's grinning, I know when the last time she bought a new mobile phone was. >> Yeah, and we buy ours outright, so we don't let, I don't do like the subsidized and it's always like that's a lot. >> Right, but you still do it. >> Yes. >> Right, we'll take a look at that first step again. 21% of organizations view IT as an expensive overhead. So they still do it in the same way that you still by that phone. We still think that it's expensive though, but we'll still go out and buy it. Because it's deemed as necessary. We still go out and buy it. And now if I were to analyze any one of your organizations at this point in time and I said to you and I went to and there's something that we do for say an ISO 20000 audit. If I went around, and I said, right, okay, is this particular piece of equipment on your desk, is this piece of equipment necessary for you to do you work? Every single person that has a piece of IT in front of them, in your organization, will find a justification for having that piece of equipment. They'll find a justification for needing it. And yet only 45% of organizations will actually view IT as necessary. But if I ask each individual within those organizations whether they actually needed that MacBook or whether they needed that Surface and then they would tell me yes they did. Because if you offer to go to any person within your organization and say, I'm gonna take that MacBook away and I'm going to replace it with a Windows 95 PC cuz it's cheaper. Right, every single person would just laugh, just in the same way that Vonne's just laughed at me. And every single person will say, no don't, I actually need what I have. And you look at these negative figures. And these are, like I said, aren't just made up figures. So does this show to me then? Within the organization, what does this show to me is somebody who wants to guide leadership within the organization. Well it tells me that we have got to get better at promoting ourselves but we've also got to get smarter in our use of IT. The one thing that IT is really, really not very good at is promoting itself. IT teams within organizations are pretty bad at it to be perfectly honest. We're not sales people, and in fact, I will tell you and Vonne will tell you as well that I wouldn't make a very good sales person. >> I don't know, I think you've been selling this government straining to me pretty well. And I'm just like, mm-hm, this is great. >> But that's not selling. I'll give you facts and figures, right? I'll tell it straight, but I'm not particularly great at selling. >> But to me, that's what sells to me. When you're painting this amazing picture, you're telling it like it is. And to me, that appeals to me. So that, give it to me straight and we're having a conversation. You give me the goods and the bads and so then I make my own judgement call. Like okay yeah, this is why organizations should possibly try to adopt some of this as much as possible within their everyday lives. >> And if IT were better at that communication, and they're not. IT teams are generally not particularly great at communication. If they were better at that communication, then we wouldn't have 21% of organizations that are viewing IT as an expensive overhead. Because they'd understand the costs behind IT, we wouldn't have 45% of organizations that consider IT to be necessary, we'd have 100% of organizations that consider IT to be necessary. So it's the 37% of people that actually are all organizations that think that IT constrains the business. Now, I want to just spend a little bit of time talking about that because what you mentioned there when I mentioned it constraint in the business, what you talked about immediately was about processes and about policies. Because when I sort of asked you about pulling in a service desk, you said to me, yes, but then apparently, we've got to go through this particular process and then this particular process and this particular process. So that tells me then, that there's a misconception between management practices and between IT because we think of both in exactly the same way. We think that the practice and that the process is the same as the technology. Well, it's not. You see, IT doesn't constrain the business. Because IT, information technology, this laptop, this thing that I've got on my desk right now is a tool, and will only facilitate an outcome. Won't actually do anything for me until tell it what to do. So it's not IT that's constraining the business is it? It's the processes that are constraining the business. Not IT, she's grinning. >> It's when you break it down like that Jo, every time I'm just like, you're right. [LAUGH] But as a regular person, as a user, it's we do like convolute all of it. We associate that with the the general practice of IT. And it's not until you, someone like you that kinda breaks it down into those chunks. You're right. But it's still hard to, Change people's conception of it. >> Right, yeah, it's really, really difficult to change the perception that people have. And so if I were to say to you as an organization or I were come along and say to you, Vonne, we're going to implement some processes. And these processes are gonna make life better for you. What would you say? >> Probably laugh. And be like, ha ha, sure. [LAUGH] >> No, no no. This is a common reaction. >> Yeah. >> Yeah, and I mean this is why we have to consider techniques like organizational change management, which is something that we covered in another series. But this is why we have to look at organizational change management, because the majority of people, their reaction is actually, yeah, all right. >> Cuz now you're slapping more bureaucracy on me, you're making me do more things- >> There we go, that's the word, bureaucracy. >> Yes, you're making me do more things for my job when I could just do it this way, I only need two steps. Why are you making me do seven steps? Why are you making me login and actually ask for a HelpDesk ticket? Why do I have to put in a ticket? >> Yes. >> And why does it have to be documented? That's all those things that just makes you feel that you're being put on more. >> Right, so if I were to show you this, what would you think? See, apparently, according to Gartner, right, the stated benefits of implementing best practice are that it provides value, that it controls cost, that it manages risk, that it implements efficient and effective processes. Okay, yeah? What would you think then, if I told you that, given the fact that I have just simply turned around to you and I said to you, okay, we're gonna bring in some processes. And your first reaction was to visibly recoil, which she did. >> [LAUGH] >> So what do you think of that then? >> Well and those are all like, well yes, it's good to control cost, it's good to- >> Right. >> Manage risks. These are all positive things, >> Okay. >> These are all, we can improve quality. All of this sounds like this would be a good thing for any organization. >> Yeah, but then how do we balance that then with that perception of, but this is just more bureaucracy? Yes, cuz if I'm controlling something, if I'm controlling cost, then is that bringing in more bureaucracy? How does this solve this? It's a bit of a dilemma. This is the dilemma that most, what we call, C-suite level executives face, and this is the reason why we have this particular series is because we wanted to give you that return. We want to sort of really put that into some tangible facts and figures that you can then take to your board. That you can use as justification for service management, for implementing best practice. It's not just about ITIL. And to be perfectly honest, I don't care whether you use the work ITIL or not. What I'm concerned about is that you implement best practice and you adapt best practice to become good practice for your organization, something that's efficient and effective. And they were the two words that we were using there in that particular bullet point. >> And I think you haven't necessarily said this just yet, but it's the creating the need, right. It's starting from the leadership because if somebody is, hey, talk about that selling, remind me about, hey, I'm gonna sell this to you. But you have to do it in a way that people are going to be on board, not to where, cuz as soon as you said, hey, we're going to do this new process, [SOUND]. Wait, but if you kind of, if you frame it the right way to me, then I as a user, as these people down here if you want to say, I'm going to be more on board to do this if you communicate it to me the right way. Of how is it gonna help me? >> Organizational change management. >> Exactly. >> Yeah, organizational change management. I know that we've covered it in another series, but organizational change management starts with creating a need, creating a sense of urgency, and communicating that need. And if you want more information, then just take a look at the Internet, and look at Gartner's Eight Steps, and you'll see Gartner's Eight Steps for Transformational Change there. And we talk about creating a sense of urgency, creating a need, and that's what we have to do with best practice. This tells me that we've got a need, we've got a need to implement practice or best practice. So now what we've got to do is work out how we're going to implement it. And part of creating that need means selling the benefits to the board and to the organization. And I don't mean selling as in going out there and standing somewhere and maybe just outside the cafeteria or something with a big stall and saying hey look at these benefits. But you've gotta understand what you want best practice to achieve before you can then go and promote it to the rest of the organization. And if you don't know what best practice can do for you, then you're hardly going to be able to promote it. And the one thing that we don't want is anyone going out there and saying, right, we're implementing ITIL and we're gonna implement it out of the book, and it's gonna stick, and you're all going to follow it. Because guess what, it's not going to work. ITIL will only work, any best practice will only work if it's adapted for your organization. >> I'm just thinking of back in the day when my parents like, you're gonna eat your peas and you're gonna like it. I'm like, but I don't want to. >> Yeah, that's the way that a lot of organizations have adopted best practice. >> But if you cover it in some cheese and make an airplane game like, ooh look, I like peas. >> [CROSSTALK] covered in cheese, right, okay. >> [LAUGH] But the idea is you can't just force it upon me, and I'm talking more for me as a user. But where does that come from? Like what you are saying, it's gotta come from the top. And if everybody up here is on board, then I'm going to be more willing to say, yeah, I'll do this, this is good for us. >> Well that's that second step in Gartner's Eight Steps there, is creating and forming a guiding coalition. In other words, having the leadership, having a team of leadership on board that's actually going to promote this. If we take a look, I've got some better figures for you. This is what organizations have seen, and a little bit later on in our next episode we're going to look at some at some specific organizations. But this is what organizations have seen by implementing best practice, by implementing ITIL specifically. But look at this, a 57 to 75, I know that seems quite specific, but when Gartner and there are a lot of other agencies that went out and that sought these figures. 57% was the lowest, that's the lowest reduction in unplanned work. 57% improvement, that's the lowest figure. That seems like quite an improvement in itself, 57%. But actually, between 57 and 75, 57 is the lowest improvement. That's a substantial improvement in unplanned work, or a reduction rather in unplanned work. 10 to 25% improvement in labor productivity, you might say, well that's not a huge amount. But imagine if you took 10% off your salary bill every single month. I don't know what your salary bill is for your organization, but imagine reducing that by 10%. And then think about in reducing that by 25%. That's a huge amount. And I'm not talking about bringing in new technology, I'm not talking about investing a lot of money. What I'm talking about is implementing best practices. 20% improvement in customer satisfaction surveys. I don't know of any organization that's going to ignore that particular statistic because everybody wants happy customers. Cuz if we don't have happy customers What are they gonna do? They're gonna go somewhere else. So everybody wants that. As well as the, well I was gonna say the intangible benefits, but they're not intangible, they are just simply difficult to for us to measure such as marketplace agility and improve decision making. They're difficult for us to measure. One thing that I do want to point out though is that bottom bullet point is that the non-monetary benefits of implementing IT specifically tend to be long term. Financial benefits that we're gonna talk about in our next episode, the financial benefits tend to be shorter. You realize them almost immediately, but the non-monetary benefits, they tend to be a long term benefit. This is the benefit for the organization, what about benefits for IT of adopting service management? Well, adopting service management means that we're gonna get a reduction in support calls. And we're gonna be looking at the statistics in our next episode. It means that we're going to have more successful changes because we have got a structured methodology. We've got a structured way to implement change. And the other thing that we've talked about, and we talked about a lot in our ITIL 4 foundation series is a common language. How important is a common language, Vonne? >> [LAUGH] This happens every time we get together. >> [LAUGH] >> A lot, yes, but this kind of goes back to when you've used certain words within a specific series whether it's ITIL or VeriSM, or whatever. You're using a word that means something to me that's different to what it means to you in the context of a specific framework and And it can get a little muddled sometimes. And so it's just, wait, that's what that particular word means. >> Right. >> And that's what that word means within its context. >> Yeah. >> That's a big thing. >> One of the biggest misconceptions that organizations have is in the difference between an incident and a problem. A lot of organizations will see an incident and a problem as being exactly the same thing. Now, of course, if we've gone through ITIL Foundation and any version ITIL Foundation to be honest. >> That's a great example because that's exactly what I did. I'm like, they're the same thing. She's like, no, they're not. And now I know that they definitely are not the same thing. >> Right. >> But the way that I would see it before I kinda knew background of this and the context of it within ITIL, those words mean Completely different things to me now. >> And yet, there's a huge amount of efficiency savings, and we'll look at this in the next episode. A huge amount of efficiency savings to be had just in knowing the difference between an incident and a problem. It can save you money but just knowing the difference between an incident and a problem. There's always an example that I use and I use it in every single series that I do, but in every single course that I teach as well, in that there's a word that we use that is a common word and it's the word revise. What does that word mean to you? >> Well, since we've gone through this before, I'll go ahead and play this [LAUGH]. >> [LAUGH] >> Revise, if you told me to revise this paper. >> Yeah. >> I would go and edit it, I would change it. You want me to use different words, you want me to revise this speech for you, so I would rewrite the speech better. >> Right. >> Probably not better. [LAUGH] >> But I don't want you to do that. If I told you to go away and revise a paper, I want you to study it. >> Mm-hm. >> Because to me, revise means something different. Revise, look again. Yeah, that's what that means to me. And so there are two dictionary definitions to the word revise. One means to study and one means to do again, should make changes. And in the US we use the one to do it again as the default definition, in the UK we use the version which says to study as the default definition. So what that actually means is that, yes, there is not a common language, even though you'd think that we were speaking a common language. But more importantly than that is that costs you money. How does it cost you money? It's simple. If I asked Vonne to go away and revise something and what I wanted her to do was spend an hour studying something. And I've just paid for an hour of her time. If I ask Vonne to go away and revise something and I can even check that she's understood, do you know what I mean? ANd she'd say yes cuz I used a word that she's familiar with. If I ask her to go away and revise something and she then spent six hours changing something that I hadn't asked her to change, then guess what? She has just spent five hours worth of my money that she didn't need to. Because in studying it she would have only taken an hour. Think about the labor costs involved in that. Think about how much money you can potentially save. And it's a real sum. Just by having the common language. The benefits are incredibly tangible, it's not just about the improved customer satisfaction surveys and having happier customers. Yes that leads to direct sales, but then we're also talking about a reduction in labor costs. Ultimately what we want is we want you to have an improved quality of IT by adopting a best practice framework. We want you to be able to control your costs. But the bottom bullet point there about aligning IT with business, your IT needs to not just respond to the needs of the business, but your IT needs to help to drive the needs of the business and influence the needs of the business. And IT shouldn't be just dragged along. It shouldn't just be a necessary evil. IT is something that the organization would consider to be fundamental part of the organization, because without IT, the organization wouldn't exist. So I keep saying that there's a lot of things that we're gonna cover in the next episode. So I think what we should do right now is we're gonna take a little bit of a break, and then when we come back we'll take a look more specifically at ITIL and the benefits that ITIL can actually bring to an organization. >> All right, sounds like a lot of great information coming our way. So thank you so much Jo and thank y'all for watching. But we're gonna go ahead and sign off for ITProTV. I've been your host Vonne Smith. >> And I'm Jo Peacock. >> We'll see you soon. [MUSIC] >> Thank you for watching ITProTV.

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