Implementation and Improvement of Service Design Tutorial

7.1 Implementation and Improvement of Service Design

Implementation and Improvement of Service Design Welcome to Learning Unit # 7 of ITIL Lifecycle Intermediate Service Design Certification Course by Simplilearn! Implementing Service Design best practices defined in ITIL is all about defining, designing, implementing and managing the processes, policies and technology required for the design of IT services. We shall discuss the approach for implementing the Service Design practices and some relevant methodologies in this module. Let’s look into the syllabus of this unit in the next slide.

7.2 Syllabus

Syllabus The objectives of this learning unit are to cover: The knowledge, interpretation and analysis of service design principles, techniques and relationships and their application to the design of effective service solutions The six-stage implementation/improvement cycle and how the activities in each stage of the cycle are applied How business impact analysis, service level requirements and risk assessment can affect service design solutions. In the next slide we will learn about the business impact analysis.

7.3 Business Impact Analysis

Business Impact Analysis Business Impact Analysis is an important activity that provides vital inputs while ascertaining the business needs, impacts and risks. It determines the areas of the organisation which will be affected by major incidents or disasters and the impact it will have on the organisation as a whole. Business Impact Analysis thus helps in identifying the vital business functions of the organisation and helps dictate the strategy for risk reduction and disaster recovery. From a Service Management perspective, Business Impact Analysis tries to determine the impact of service loss to the business. Hence, the Business Impact Analysis reports and information have a very great influence on how services are designed and implemented. In particular, Business Impact Analyses activities enable the service provider organisation in: Identifying the critical services, defining what constitutes a major incident on these services and the subsequent impact and disruption caused to the business; Identifying the Acceptable levels and times of service outage; Identifying the Critical business and service periods; Determining the financial impacts due to loss of service, which is a very important input for financial management for IT services; and Identifying the potential security implications of a loss of service that are important considerations in the management of risk. Let’s look into service level requirement in the next slide.

7.4 Service Level Requirement

Service Level Requirement Service level requirements represent the customer or business requirements that should be fulfilled by the service or an aspect of a service. These are basically the levels of utility and warranty expected from the service and are based on business objectives. Service level management is responsible for ascertaining the Service level requirements. The ability to deliver against these requirements will be assessed and finally agreed in a formal service level agreement. The documented and signed-off service level agreements then become binding on both the parties. It is very important that for new services, the Service level requirements are determined as early as possible in the service life cycle. The high level requirements are normally determined during the strategy stage, but the detailed requirements should be determined and documented before the start of design activities. Designing services with focus on Service level requirements is essential from a service design perspective. This induces an entirely different approach for designing and developing the services and helps in meeting the design objective more aptly. Let’s move on to next slide to learn about risk to service and business.

7.5 Risk To Service And Processes

Risk to Service and Business Risk assessment and management should be performed throughout the service life cycle. Risk registers should be regularly reviewed and updated. Risks that are no more relevant should be closed, new risks identified should be added and risks that have changed status or severity should be updated. The relevance of the risk responses should be analysed and changes made if required. When implementing the Service Design and IT Service Management processes, business-as-usual practices must not be adversely affected. Minimising impact on current services should be one of the key considerations during the production and selection of the preferred solution. Risk assessment should also be considered during the Service Transition activities as part of the implementation process. We shall learn about implementing service design in the next slide.

7.6 Implementing Service Design

Implementing Service Design The design of appropriate and innovative IT services requires the use of best practices defined around processes, policies and architectures. The designs should be flexible enough to meet the changing requirements of the business. One of the key requirements for an efficient service management is the design and implementation of relevant processes. Sometimes a basic question may arise as to ‘Which processes should we implement first?’ In fact it is better to implement all the processes as the benefits derived are much greater than implementing processes individually. However, as organisations cannot implement everything in one go, a detailed assessment needs to be performed and short-, medium- and long-term strategies needs to be developed. This should include analysing the strengths and weaknesses of IT service provision. The key sources for these are customer satisfaction surveys, interactions with customers and IT staff, and analysis of current processes. The next step is to set implementation priorities against the goals of improvement plans. The short-term quick-wins implemented should be amended at appropriate intervals to integrate into long-term goals. Key players and stakeholders should be involved in decision-making all through the implementation stages. This will ensure understanding the requirements and ensuring that only suitable processes are implemented. In the next slide we will look into implementing service design through CSI approach.

7.7 Implementing Service Design Through Csi Approach

Implementing Service Design through CSI approach A project management method based on Continual Service Improvement approach can be adopted for the implementation and improvement of Service Design. The continual service improvement approach involves addressing six questions. These are: What is the vision? The answer to this question enables getting a clear understanding of the vision by ascertaining the high-level business objectives and ensures alignment between business and IT strategies. Where are we now? This involves assessing the current situation in terms of the business, organisation, people and processes. This could be addressed through assessments or benchmarking exercise and acts as a baseline for the implementation or improvement initiative. Where do we want to be? This step involves defining the future desired state and agreeing the priorities for improvement. How do we get there? This involves developing a plan for achieving the desired state. Did we get there? Measurements and metrics need to be put in place to show that the milestones have been achieved and that the business objectives and business priorities have been met. How do we keep the momentum going? The on-going step is to consolidate the improvement achieved and keep the momentum going. This involves educating and motivating people and making improvements ‘a way of life’ in the organisation. We shall now discuss these steps in more detail.

7.8 What Is The Vision?

What is the vision? The first step is to review the organisation culture and environment within the service provider organisation. This is essential to judge if the people are ready to accept and facilitate the implementation of the proposed changes and improvements. The key activities within this step are to: Establish a vision that is aligned with the business vision and objectives; Establish a precise scope of the improvement project or program; Establish a set of high-level objectives that are in line with vision; Establish governance, sponsorship and budget; Obtain senior management commitment; and Establish a culture that is focused on: Quality Customer and business requirements and satisfaction A learning environment Continual improvement in all areas Commitment to the ‘improvement cycle’ Ownership and accountability In the next slide we will learn about reviewing or assessing the changes prevailing in the current situation.

7.9 Where Are We Now?

Where are we now? While planning to implement or improve service design, it is essential to build on the strengths of the existing cultures and processes. Hence, after defining the vision and high-level objectives, a review of the current situation needs to be performed. This activity includes a review, assessment or a more formal audit of the current situation, using one or more techniques such as: An internal review or audit; Maturity assessment; External assessment or benchmarking; ISO/IEC 20000 audit; An audit against COBIT; Strengths, Weaknesses, Opportunities and Threats (SWOT) analysis; or A risk assessment and management methodology.

7.10 Where Are We Now?

The review or assessment should cover all areas of the service provider organisation. In specific, the areas to be reviewed are: The culture and maturity of the service provider organisation; The processes in place and their capability and maturity; The skills and competence of the people; The services and the underlying technology; The suppliers, contracts and their capability; and The quality of service and the current measurements, metrics and Key Performance Indicators. A comprehensive report summarising the findings and recommendations should be created. The key objective of this review or assessment should be to obtain baseline measurements and metrics of the current state. These will help in identifying the best opportunities for improvement; develop a set of measurable targets; and provide a basis for later comparison. In the next slide we will learn about the next step, i.e. define the desired future state.

7.11 Where Do We Want To Be?

Where do we want to be? Having performed the baseline assessment, the next logical step is to define the desired future state. Considering the current state assessment report and the established vision the planned outcomes should be formulated. These may include: Improved IT service provision alignment with overall business requirements; Improved quality of Service Design; Improvements in service levels and quality; Increase in customer satisfaction; or Improvements in process performance. The key deliverable of this activity is to translate the desired future state into a set of specific, measurable, achievable, relevant and time-bound – SMART objectives. This ensures setting clear and unambiguous expectations from people who will be involved in the implementation or improvement of Service Design stage. We will now look into the plan stage of service design in the next slide.

7.12 How Do We Get There?

How do we get there? The next step is to develop a comprehensive plan detailing the path from the current state to the agreed future state. This plan should clearly define all the activities and should include: The improvement actions; The approach to be taken and the methods to be used; Activities and timescales; Risk assessment and management; Resources and budgets; Roles and responsibilities; and Monitoring, measurement and review. The challenges, critical success factors and key performance indicators should also be identified and incorporated in the plan. In the next slide we will learn to measure if we have succeeded in our plan.

7.13 Did We Get There?

Did we get there? In the earlier planning stage, we have seen that measurements and metrics are also identified. These along with the current state baseline in step two provide the basis for measuring the progress made and determining if we are progressing in the right direction to achieve the desired future state. This will then enable to determine if we have achieved the set SMART objectives. Some examples of common metrics that can be used to determine the achievements are: percentage reduction in Service Design non-conformances; percentage increase in customer satisfaction; and percentage increase in the availability of critical services; The specific checks that need to be performed after completion of the improvement initiatives and actions are: Did we achieve our desired new state and objectives? Are there any lessons learnt and could we do it better next time? Did we identify any other improvement actions? Let’s now understand how we can keep the momentum going in the next slide.

7.14 How Do We Keep The Momentum Going?

How do we keep the momentum going? It is stated that ‘if there is anything constant it is change’. Hence, after achieving the desired state, it is important to look for moving the organisation to a new desired state in line with the business vision and objectives. In other words, the organisation should look for identifying more improvements and establishing a continual service improvement culture. This requires: Developing a learning environment; Establishing a desire to improve throughout the organisation; Recognising and reinforcing the message that quality and improvement are everybody’s job; and Maintaining the momentum on improvement and quality. Let’s learn about the measurement of service design in the next slide.

7.15 Measurement Of Service Design

Measurement of Service Design Let us now discuss the Balanced Scorecard, which is a very popular measurement framework. The Balanced Scorecard was developed by Robert Kaplan and David Norton in the 1990. They recognised that the general way of focusing organisational measurements and metrics only from a financial perspective had many weaknesses. The balanced scorecard approach provides a clear prescription as to what organisations should measure to achieve their goals. The Balanced Scorecard framework encourages measuring a company’s activities in terms of its vision and strategies. It involves viewing the organisation from four different perspectives, and it is valuable to develop metrics, collect data and analyse the organisation relative to each of these perspectives. The four perspectives are : Financial Perspective – What is the cost of IT service provision? Customer Perspective – What do customers expect of IT service provision? Internal Processes Perspective – What should IT excel at? Learning and Growth Perspective – How will IT ensure that the business will keep generating added value in future? In the next slide we will look into balance scorecard.

7.16 Balance Scorecard

Balance Scorecard An example of ‘Balanced Scorecard’ is shown in this slide. It may be noted that all the four perspectives are linked and together support the vision and strategic objectives of the organisation. Please spare a few minutes to look at the four perspectives and the components within these four views. Let us now learn about measurement of service design in the next slide.

7.17 Measurement Of Service Design

Measurement of Service Design We shall now discuss a process improvement approach – The Six Sigma approach. The Six Sigma methodology was developed by Bill Smith at Motorola Inc. in 1986. It is a data-driven process improvement approach that supports continual improvement. Though it was originally designed to manage process variations that cause defects, it has today grown into one of the significant tools for measuring and improving processes and reducing defects. The key objective of Six Sigma approach is to reduce errors to fewer than 3.4 defects per million executions. The Six Sigma methodology recommends adopting different approaches for existing and new processes. These are popularly known as DMADV and DMAIC methodologies. We shall now briefly discuss these two methods. The DMADV methodology is an improvement system used to develop new processes at Six Sigma quality levels. The different steps in this methodology are : The Define step involves formally defining the goals of the design activity that are consistent with customer demands and organisation strategy. The ‘Measure’ step is concerned with identifying the Critical Success Factors, process capability and performing a risk assessment.

7.18 Measurement Of Service Design

The next step is ‘Analyse’. This step involves developing and designing alternatives, creating a high-level design and evaluating the design capability to select the best design. The next step ‘Design’ is concerned with developing detailed design, optimising the design and preparing the plan for design verification. The final step is to ‘Verify’. This involves setting up pilot runs, implementing the production process and final hand over to process owners. We will continue with measurement of service design in the next slide.

7.19 Measurement Of Service Design

Measurement of Service Design The second methodology is DMAIC. This is an improvement system for EXISTING processes which are falling below specification and performance does not meet expectations. In such cases incremental improvements may be planned and achieved through DMAIC. Let us now look at the steps within the DMAIC method. The first step is to ‘Define’ the problem, the voice of the customer, and the project goals, specifically. The next step ‘Measure’ is concerned with identifying the key aspects of the current process and collecting relevant data. The third step is ‘Analyse’. This step involves analysing the data to investigate and verify cause-and-effect relationships. The relationships are determined and an attempt is made to ensure that all factors have been considered. Then the root cause of the defect under investigation is identified. The ‘Improve’ step is concerned with improving or optimising the current process based upon data analysis using relevant techniques and then creating a new, future state process. The pilot runs are conducted to establish process capability. The final step is to ‘Control’. This involves continuous monitoring and control of the process to ensure that any deviations from targets are corrected before they result in defects. Let’s look into the prerequisite for the success in the next slide.

7.20 Prerequisite For The Success

Prerequisite for the success The main objective of introducing measurement initiatives and programmes is to build efficiency and effectiveness of the processes, lifecycle stages or overall service provision. The prerequisites for implementing a successful measurement system for Service Design are: The establishment of clearly defined goals and objectives for the service design stage; A strong understanding of the processes, procedures, functions, roles and responsibilities associated with successful service design; A strong understanding of the interfaces and dependencies between service design elements and the rest of the service lifecycle; A strong understanding of and alignment with the needs of the business; The development of appropriate measurement and analysis technology, methods and techniques to achieve defined plans; Ensuring alignment of measurements with the required metrics to accurately evaluate the health of service design, identify and implement opportunities for improvement and validate improvement accomplishments; and A regular review of the measurement programme to ensure on-going alignment with overall service and service management requirements. Let’s look into the summary of this unit in the next slide.

7.21 Summary

Summary: In this unit we have learned about six-stage implementation and improvement cycle and how the activities in each stage of the cycle are applied as well as how business impacts analysis, service level requirements and risk assessment can affect service design solutions.

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