ITIL ® Continual Service Improvement www.best-management-practice.com ITIL ® Continual Service Improvement 9 780113 313082 ISBN 978-0-11-331308-2 Over time business requirements will change, so even with successful service operations in place, there is still a need to re-align service provision with these changing business needs. What was good enough last year is unlikely to meet requirements next year; therefore improvement opportunities need to be constantly assessed and implemented. This continual cycle of service improvement will help protect against losing competitive edge and will ensure that the best possible outcomes are being achieved. ITIL Continual Service Improvement focuses on the elements involved in identifying and introducing a cycle of service management improvements. It provides structure for the approach to assessing and measuring services, and helps you to avoid temporary fi xes in favour of a continual improvement in quality that truly benefi ts the business customer. 2011 edition B E S T M A N A G E M E N T P R A C T I C E P R O D U C T 7188 ITIL CSI AN Cover V1_3.indd 1-3 11/07/2011 11:54 ITIL ® Continual Service Improvement London: TSO CSI_Prelims.indd 1 09/07/2011 09:46 Published by TSO (The Stationery Ofce) and available from: Online www.tsoshop.co.uk Mail, Telephone, Fax & E-mail TSO PO Box 29, Norwich, NR3 1GN Telephone orders/General enquiries: 0870 600 5522 Fax orders: 0870 600 5533 E-mail: customer.services@tso.co.uk Textphone 0870 240 3701 TSO@Blackwell and other Accredited Agents Customers can also order publications from: TSO Ireland 16 Arthur Street, Belfast BT1 4GD Tel 028 9023 8451 Fax 028 9023 5401 © Crown Copyright 2011 This is a Crown copyright value added product, reuse of which requires a Licence from the Cabinet Office Applications to reuse, reproduce or republish material in this publication should be sent to The Efficiency & Reform Group Service Desk, Cabinet Office, Rosebery Court, St Andrews Business Park, Norwich, Norfolk NR7 0HS Tel No: (+44) (0)845 000 4999, E-mail: servicedesk@cabinet-office.gsi.gov.uk or complete the application form on the Cabinet Office website, Licensing section. 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P002425506 c70 07/11 CSI_Prelims.indd 2 09/07/2011 09:46 Contents List of figures v List of tables vii Foreword viii Preface ix Acknowledgements x 1 Introduction 1 1.1 Overview 3 1.2 Context 6 1.3 ITIL in relation to other publications in the Best Management Practice portfolio 8 1.4 Why is ITIL so successful? 8 1.5 Chapter summary 10 2 Service management as a practice 11 2.1 Services and service management 13 2.2 Basic concepts 20 2.3 Governance and management systems 25 2.4 The service lifecycle 27 3 Continual service improvement principles 33 3.1 Continual service improvement approach 35 3.2 CSI and organizational change 36 3.3 Ownership 36 3.4 CSI register 36 3.5 External and internal drivers 37 3.6 Service level management 37 3.7 Knowledge management 38 3.8 The Deming Cycle 38 3.9 Service measurement 38 3.10 IT governance 42 3.11 Frameworks, models, standards and quality systems 42 3.12 CSI inputs and outputs 44 4 Continual service improvement processes 45 4.1 The seven-step improvement process 47 5 Continual service improvement methods and techniques 71 5.1 Methods and techniques 73 5.2 Assessments 74 5.3 Benchmarking 79 5.4 Service measurement 85 5.5 Metrics 91 5.6 Return on investment 106 5.7 Service reporting 111 5.8 CSI and other service management processes 112 5.9 Summary 125 6 Organizing for continual service improvement 127 6.1 Organizational development 129 6.2 Functions 129 6.3 Roles 129 6.4 Customer engagement 138 6.5 Responsibility model – RACI 138 6.6 Competence and training 139 7 Technology considerations 143 7.1 Tools to support CSI activities 145 7.2 Summary 152 CSI_Prelims.indd 3 09/07/2011 09:46 iv | Contents 8 Implementing continual service improvement 153 8.1 Critical considerations for implementing CSI 155 8.2 Where do I start? 155 8.3 Governance 156 8.4 CSI and organizational change 157 8.5 Communication strategy and plan 162 8.6 Summary 164 9 Challenges, risks and critical success factors 165 9.1 Challenges 167 9.2 Critical success factors 167 9.3 Risks 167 9.4 Summary 168 Afterword 169 Appendix A: Related guidance 173 A.1 ITIL guidance and web services 175 A.2 Quality management system 175 A.3 Risk management 176 A.4 Governance of IT 176 A.5 COBIT 176 A.6 ISO/IEC 20000 service management series 177 A.7 Environmental management and green/sustainable IT 177 A.8 ISO standards and publications for IT 178 A.9 ITIL and the OSI framework 178 A.10 Programme and project management 179 A.11 Organizational change 179 A.12 Skills Framework for the Information Age 180 A.13 Carnegie Mellon: CMMI and eSCM framework 180 A.14 Balanced scorecard 180 A.15 Six Sigma 180 Appendix B: Example of a continual service improvement register 183 Appendix C: Risk assessment and management 187 C.1 Definition of risk and risk management 189 C.2 Management of Risk (M_o_R) 189 C.3 ISO 31000 190 C.4 ISO/IEC 27001 191 C.5 Risk IT 192 Appendix D: Examples of inputs and outputs across the service lifecycle 195 Abbreviations and glossary 199 Index 239 CSI_Prelims.indd 4 09/07/2011 09:46 Figure 1.1 The ITIL service lifecycle 3 Figure 1.2 I TIL’s relationship with other Best Management Practice guides 9 Figure 2.1 Conversation about the definition and meaning of services 14 Figure 2.2 Logic of value creation through services 18 Figure 2.3 S ources of service management practice 19 Figure 2.4 Examples of capabilities and resources 21 Figure 2.5 Process model 21 Figure 2.6 The service portfolio and its contents 25 Figure 2.7 Architectural layers of an SKMS 26 Figure 2.8 P lan-Do-Check-Act cycle 27 Figure 2.9 Integration across the service lifecycle 30 Figure 2.10 Continual service improvement and the service lifecycle 31 Figure 3.1 Continual service improvement approach 35 Figure 3.2 K nowledge management leads to better IT decisions 38 Figure 3.3 W hy do we measure? 39 Figure 3.4 The seven-step improvement process 40 Figure 3.5 Knowledge spiral – a gathering activity 41 Figure 3.6 Enterprise governance (source: CIMA) 42 Figure 4.1 From vision to measurements 50 Figure 4.2 M onitoring and data collection procedures 55 Figure 4.3 Common procedures for processing the data 57 Figure 4.4 Service level achievement chart 62 Figure 4.5 F irst- to fourth-order drivers 64 Figure 5.1 The relationship of services, processes and systems 77 Figure 5.2 The value of a process versus the maturity of a process 79 Figure 5.3 A vailability reporting 86 Figure 5.4 S ervice measurement model 88 Figure 5.5 Technology domain versus service management 89 Figure 5.6 Service management model 90 Figure 5.7 F rom vision to measurement 92 Figure 5.8 Number of incidents opened by service desk over time 96 Figure 5.9 Comparison of incidents opened and resolved on first contact by the service desk 96 Figure 5.10 Deriving measurements and metrics from goals and objectives 99 Figure 5.11 Reported outage minutes for a service 100 Figure 5.12 IT balanced scorecard 104 Figure 5.13 T he expanded incident lifecycle 114 Figure 5.14 C onnecting business and service capacity management 116 Figure 5.15 B usiness capacity growth model 117 Figure 5.16 C onnecting service and component capacity management 117 Figure 5.17 Connecting businesses, service and component capacity management 117 Figure 5.18 Capacity management activities 120 Figure 5.19 S ources of knowledge 123 Figure 5.20 R easons for a risk management process 124 Figure 6.1 Activities and skill levels needed for continual service improvement 134 List of figures CSI_Prelims.indd 5 09/07/2011 09:46 vi | Figure 6.2 Service management roles and customer engagement 139 Figure 7.1 The application of the architectural layers of the CMS 147 Figure 7.2 Service-centric view of the IT enterprise 151 Figure 8.1 P rocess re-engineering changes everything 157 Figure 8.2 V ision becomes blurred 163 Figure 8.3 C SI roles and inputs 164 Figure C.1 T he M_o_R framework 190 Figure C.2 ISO 31000 risk management process flow 191 Figure C.3 ISACA Risk IT process framework 193 vi | List of figures CSI_Prelims.indd 6 09/07/2011 09:46 | vii Table 2.1 The processes described in each core ITIL publication 29 Table 3.1 CSI inputs and outputs by lifecycle stage 43 Table 4.1 Policy template example 49 Table 4.2 M onitoring and data collection procedures 55 Table 4.3 Procedures for processing the data 57 Table 5.1 Pros and cons of assessment approaches 76 Table 5.2 Average results of over 100 process assessments before improvement 84 Table 5.3 CMMI maturity model 84 Table 5.4 K ey performance indicators of the value of service management processes 90 Table 5.5 High-level goals and key performance indicators 91 Table 5.6 Examples of service quality metrics 94 Table 5.7 Response times for three service desks 97 Table 5.8 An example of a summary report format 100 Table 5.9 S ervice report of outage minutes compared to goal 101 Table 5.10 Percentage of incidents meeting target time for service restoration 101 Table 5.11 Sample key performance indicators 102 Table 5.12 Service desk balanced scorecard example 105 Table 5.13 S WOT analysis 107 Table 5.14 S ample SWOT analysis for CSI 107 Table 5.15 D epartmental requirements 116 Table 5.16 R isk register 125 Table 6.1 Skills involved in Step 1 – Identify the strategy for improvement 135 Table 6.2 Skills involved in Step 2 – Define what you will measure 135 Table 6.3 Skills involved in Step 3 – Gather the data 135 Table 6.4 Skills involved in Step 4 – Process the data 135 Table 6.5 Skills involved in Step 5 – Analyse the information and data 136 Table 6.6 Skills involved in Step 6 – Present and use the information 136 Table 6.7 Skills involved in Step 7 – Implement improvement 136 Table 6.8 Comparison of CSI manager, service level manager, service owner and business relationship manager roles 137 Table 6.9 An example of a simple RACI matrix 140 Table 8.1 Eight steps that need to be implemented, and the main reasons why transformation efforts fail (from Kotter, 1996) 158 Table 8.2 Table for sample communication plan 163 List of tables CSI_Prelims.indd 7 09/07/2011 09:46 Back in the 1980s no one truly understood IT service management (ITSM), although it was clear that it was a concept that needed to be explored. Hence a UK government initiative was instigated and ITIL® was born. Over the years, ITIL has evolved and, arguably, is now the most widely adopted approach in ITSM. It is globally recognized as the best-practice framework. ITIL’s universal appeal is that it continues to provide a set of processes and procedures that are efficient, reliable and adaptable to organizations of all sizes, enabling them to improve their own service provision. Having progressed a service from strategy to design through transition and then into live operation, where do we go then? Continual service improvement (CSI) is the answer. One of the cornerstones of the ITIL service lifecycle is that we should always strive to improve, as to do otherwise leads to standing still, potentially followed by stagnation and ultimately death. Improvements can be a reduction in weaknesses or an enhancement of strengths, as well as adopting new approaches to existing activities. ITIL Continual Service Improvement offers guidance on ways to measure, review and act to identify and adopt improvements in service provision. If you have not started your IT service management journey then you may find that this publication is a good place to start, as you can use it to identify those areas where your organization will most benefit from applying service management practices. The principles contained within ITIL Continual Service Improvement have been proven countless times in the real world. We encourage feedback from business and the ITSM community, as well as other experts in the field, to ensure that ITIL remains relevant. This practice of continual service improvement is one of the cornerstones of the ITIL framework and the fruits of this labour are here before you in this updated edition. There is an associated qualification scheme so that individuals can demonstrate their understanding and application of the ITIL practices. So whether you are starting out or continuing along the ITIL path, you are joining a legion of individuals and organizations who have recognized the benefits of good quality service and have a genuine resolve to improve their service level provision. ITIL is not a panacea to all problems. It is, however, a tried and tested approach that has been proven to work. I wish you every success in your service management journey. Frances Scarff Head of Best Management Practice Cabinet Office Foreword CSI_Prelims.indd 8 09/07/2011 09:46 [...]... of the service lifecycle The primary purpose of the continual service improvement stage of the service lifecycle is to learn from experience and to apply that learning in order to continually improve the quality of IT services and to optimize costs www.best-management-practice.com/IT-ServiceManagement-ITIL/ Continual service improvement must permeate and become woven into every stage of the service. .. consistency across the core publications 1.1 OVERVIEW ITIL Continual Service Improvement provides bestpractice guidance for the CSI stage of the ITIL service lifecycle Although this publication can be Continual service improvement Service transition Service strategy Service design Service operation The ITIL framework is based on the five stages of the service lifecycle as shown in Figure 1.1, with a core... APM Group – The Accreditor Service Desk Sword House Totteridge Road High Wycombe Buckinghamshire HP13 6DG UK Tel: +44 (0) 1494 458948 Email: servicedesk@apmgroupltd.com Continual service improvement is cyclical in nature; there are periods of stability followed by more improvements, then a new level of stability is followed by more improvements and so on ITIL Continual Service Improvement gives practical... CSI_Chapter_01.indd 5 1.1.5 Target audience ITIL Continual Service Improvement is relevant to organizations involved in the development, delivery or support of services, including: n Service providers, both internal and external n Organizations that aim to improve services through the effective application of service management and service lifecycle processes to improve their service quality n Organizations that... supports the services Service design is the stage in the lifecycle that turns a service strategy into a plan for delivering the business objectives ITIL Service Design provides guidance for the design and development of services and service management practices It covers design principles and methods for converting strategic objectives into portfolios of services and service assets The scope of ITIL Service. .. management and capability improvement ITIL Continual Service Improvement describes best practice for achieving incremental and largescale improvements in service quality, operational efficiency and business continuity, and for ensuring that the service portfolio continues to be aligned to business needs Guidance is provided for linking improvement efforts and outcomes with service strategy, design,... customer to receive the ‘real’ (core) service Enhancing services are services that are added to a core service to make it more exciting or enticing to the customer Enhancing services are not essential to the delivery of a core service, and are added to a core service as ‘excitement’ factors, which will encourage customers to use the core service more (or to choose the core service provided by one company... are: n Type I – internal service provider An internal service provider that is embedded within a business unit There may be several Type I service providers within an organization n Type II – shared services unit An internal service provider that provides shared IT services to more than one business unit n Type III – external service provider A service provider that provides IT services to external customers... access management processes; as well as the service desk, technical management, IT operations management and application management functions 1.2.5 Continual service improvement ITIL Continual Service Improvement (this publication) provides guidance on creating and maintaining value for customers through better strategy, design, transition and operation of services It combines principles, practices... recommendations on improvement opportunities in each lifecycle stage: service strategy, service design, service transition, service operation and CSI itself n Review and analyse service level achievement n Identify and implement specific activities to improve IT service quality and improve the efficiency and effectiveness of the enabling processes n Improve cost effectiveness of delivering IT services without . Integration across the service lifecycle 30 Figure 2.10 Continual service improvement and the service lifecycle 31 Figure 3.1 Continual service improvement approach. inputs and outputs 44 4 Continual service improvement processes 45 4.1 The seven-step improvement process 47 5 Continual service improvement methods