Professional Documents
Culture Documents
Practice Organizational Change Management
Practice Organizational Change Management
management
11th January
2020
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Contents
1 About this document 3
General Information 4
Value streams and processes 15
Organization and people 24
Information and technology 31
Partners and suppliers 34
Important reminder 35
Acknowledgments 36
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General Information
2.1 PURPOSE AND DESCRIPTION
Key message
The purpose of the OCM practice is to ensure that changes in an organization are implemented
smoothly and successfully, and that lasting benefits are achieved by managing the human aspects
of the changes.
OCM is a practice that serves the continually emerging wish and need for organizational growth,
improvement, and evolution.
To improve product and service portfolio, organizational structure or underlying technology, people are
essential for the transformation to be successful. Organizational evolution enables a change in their
capabilities, the way they work, feel, and behave. These changes should not be forced upon people but
should lead to a new valuable system, so people could willingly adopt new ways of behaviour and work.
Key message
People are responsible for changes in behaviour as a response to changed circumstances (i.e. Changes
to the system in which we work).
OCM aims to build a value-driven environment across the organization and enable successful
organizational changes of a required scope. According to the organizational vision and need, all
stakeholders should adopt new ways of working, as well as minimize risks and possible negative impacts
of any change to the quality of service/products and consumer experience.
This is achieved by recognizing and understanding stakeholders’ expectations and values, having the
vision, co-creating plans and actions, communicating effectively, empowering employees, and anchoring a
new cultural approach.
OCM contributes to every part of the service value system (SVS). It incorporates three premises:
● The practice is integrated into value streams and ensures that changes are effective, safe, and meet
stakeholders’ expectations.
● The practice does not aim to unify all the changes planned and carried out in an organization into one
big picture: this is neither possible or required.
● The practice should focus on balancing effectiveness, agility, compliance, and risk control for all
changes in the defined scope.
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Change is a different way of executing tasks. Doing it as it has previously been done, but in a more
efficient and productive way. Change uses external impact to modify actions.
Transformation is a different way of working. It involves changes in beliefs, values, and wishes.
Transformation results shift in the organizational system and as a result, in personal and organizational
behaviour. The transformation is based on learning from previous mistakes.
Evolution is a state of continual improvement through transformation and change. The foundation of
evolution is constant adjustments in values, beliefs, and behaviour, with the use of internal and
external feedback.
There is an important distinction between organizational change and transformation. Before any
organizational change is executed, stakeholders should consider the actions mentioned, as it will change
the attitude and may impact the result.
Defining an initiative as a change or a transformation, helps to select appropriate methods for its
management. It is also important to identify whether a specific change contributes to the organization’s
evolution.
To understand the evolutionary context and every change or transformation contribution to the
organization’s development, a high level of system intelligence from the stakeholders is required. System
intelligence enables organizations to move from personal growth to team growth and from managed
groups to creative and mature teams.
Dealing with changes related to people requires a high level of presence, consciousness, self-leadership,
and responsibility from all stakeholders. Through the whole organizational change lifecycle, it is
important to focus on all three dimensions: individuals involved in change, relationships between them,
and systems in general.
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To create flexible, resilient, and fulfilled individuals, teams, and systems, organizations should aim
to support the development of three forms of intelligence1:
Emotional Intelligence is the ability to access, express, and use one’s emotions in an efficient way. It
describes having emotional self-awareness and the capacity to manage feelings by directing them toward
goals. It also ensures the ability to self-motivate, suppress impulsive actions, and delay immediate
satisfaction in order to achieve the goals.
Social intelligence builds on emotional intelligence. It is the capability to identify emotions of other
people by not making assumptions, being empathetic, and open to co-creative actions and new ways of
working in order to achieve common goals and build positive relationships. It also includes knowing and
using social roles and rules, effective listening, and conversational skills.
Systems intelligence is the ability to understand, reflect upon, express, and incorporate the wider
context of the system(s) a human interacts within into actions. It combines sensitivity about the
environment with system thinking. In regards to the ITIL guiding principles, it is based on the ability to
think and work holistically, while focusing on value, in the context of adaptive complex systems. It is the
capability to see oneself as a part of a system, identify system characteristics, be aware of system rules
and patterns, and be able to contribute to a system development consciously.
If the culture of an organization is supported with personal values, it encourages people to bring their
best effort and commitment to work. If personal and organizational values are aligned, any resistance to
change will be viewed as an additional source of information and resource for improvement. Managing
resistance will not be needed.
Organizational culture can be described as a set of values that are shared by a group of people, including
ideas, beliefs, practices and expectations about how people should behave. More information can be
found in ITIL® 4: Direct, Plan and Improve.
Recognizing the distribution of values through the levels and identifying those that enable or limit the
organization’s evolution, will generate sources of information for organizational change, planning, and
execution.
1
Based on articles and methods https://www.teamcoachingzone.com/wp-
content/uploads/2015/01/RSI-White-Paper.pdf and https://www.crrglobal.com/relationship-systems-
intelligence.html [Accessed 25th October 2019]
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“Organizations that focus exclusively on the satisfaction of the lower needs, are not adaptable and do not
empower employees. Consequently, there is little enthusiasm within the workforce, and there is little
innovation and creativity. These organizations are often ruled by fear and are not healthy places to work.
Employees often feel frustrated and complain about stress.” Organizational changes are usually not
successful in this type of organizations.
“Organizations that focus exclusively on the satisfaction of the higher needs lack the basic business skills
and capabilities necessary to operate effectively. They are ineffectual and impractical when it comes to
financial matters. They are not customer oriented, and they lack the systems and processes necessary for
high-performance.”
“The most successful organizations are those that have mastered both their “deficiency” needs and their
“growth” needs. They create a climate of trust, have the ability to manage complexity, and can respond
or rapidly adapt to all situations.” These organizations present environment for transformation and
evolution.2
2
Quotations from https://www.valuescentre.com/wp-
content/uploads/PDF_Resources/Additional_Articles/Article_Importance_of_Values.pdf [Accessed 25th
October 2019]
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The OCM practice should include approaches to situations of different complexity. Organizations
define the changes, the level of control, and the principles that should be addressed by the
practice. Change definition considerations can be found in the change enablement practice.
An example of a set of principles that can help guide the organizational changes to be successful through
designing an adaptive environment is shown below. Leaders in an organization must translate these
principles to suit the specific requirements of their business if they are to achieve the target of their
change.
This practice should aim to create an environment where people may participate in change
leadership as a shared practice.
• Change stakeholders are valuable change agents: they can make vital contribution to an
organizational transformation. People are naturally problem solvers with a unique capacity to
adapt to a continually developing environment.
• Human-centred design of the OCM process. The needs and values of stakeholders should be
understood.
• Map stakeholders’ and organizational values.
3
https://www.forbes.com/sites/carstentams/2019/09/10/metamorphle-nine-principles-for- good-
design-of-organizational-change/#2a1851283d31 [Accessed 25th October 2019]
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● Sustained improvement
• Keep co-creation as the centre approach for organizational change. Therefore, every area
of an organization is open for feedback and improvement. Co-creation is a choice that
joins different parties to produce a mutually valued outcome.
• To maintain the achieved good result for organizational change, systems should continually
evolve depending on organizational needs and vision.
2.3 SCOPE
The scope of the OCM practice includes:
This practice supports all value streams and can be used with any other practice as they can all initiate
organizational changes. However, organizations usually limit the application of the OCM practice to a
finite number of changes, where behaviour, capabilities, responsibilities and/or roles are to be
changed.
Other practices may significantly contribute to the organizational changes in the four dimensions of
service management. These are listed in Table 2.1.
4
Self-Determination Theory, the leading motivational theory developed by Edward Deci and Richard Ryan.
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Table 2.1 Organizational changes in the four dimensions of service management
Information and technology Hardware and software Usually addressed by the change
Service architecture enablement practice in
Service design conjunction with the project
Technical and user documentation management, service design, and
architecture management
practices. Some OCM activities may
be used to support training,
design, and so on
Organizations and people
Organizational structure Usually addressed by the OCM in
Roles and responsibilities conjunction with the project
Culture and rules of work management, workforce and talent
behaviour management, and relationship
management practices
Personal competencies
Value streams and processes Value streams architecture May be addressed by the change
enablement together with the OCM
Work processes and procedures
practice and/or other practices
Process documentation
Partners and suppliers Service dependencies on third May be addressed by the change
parties at the architecture level enablement practice in
conjunction with the supplier
Contractual arrangements with
management, OCM and/or other
third parties (new suppliers,
practices
change of responsibilities, and so
on.)
There are several activities and areas of responsibility that are not included in the OCM practice, although
they are still closely related to change. These are listed in Table 2.2, with references to the practice
guides in which they can be found. It is important to remember that the ITIL practices are collections of
tools to use in the context of value streams; they should be combined as necessary, depending on the
situation.
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Table 2.2 Activities related to the OCM practice that are described in other practice guides
Strategy management
Continual improvement
Business analysis
Deployment management
Portfolio management
A complex functional component of a practice that is required for the practice to fulfil its purpose.
A practice success factor (PSF) is more than a task or activity, as it includes components from all four
dimensions of service management. The nature of the activities and resources of PSFs within a practice
may differ, but together they ensure that the practice is effective.
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OCM technics and instruments can only be effective when they are used in the right way and moment, and
with commitment from change stakeholders.
An organization that adapts changes can be established by creating an atmosphere where people are
encouraged to speak up, challenge the way things are done, and listen and communicate effectively.
Adaptive environments stimulate discussions and input for changes, considers agile vision, and new ways
of operation. This culture may not only impact internal communication within an organization, but also
cooperation with partners and suppliers.
To assist OCM practice with creating and maintaining an efficient change-enabling culture, it is important
to use the following practices:
2.4.2 Establishing and maintaining a holistic approach and continual improvement for
organizational change management
Identifying opportunities to improve organizational changes, principles, and methods are important.
Improvements can also be initiated in areas such as the practice’s processes, tools, or other resources;
and should aim to improve the practice and the experience of the stakeholders.
It is important to ensure that service improvements are not only initiated, but also effectively
implemented. An approach to implementing improvements is described in the continual improvement
practice guide. Also, it is vital to use multiple practices in the context of value streams, to maintain the
progress of the continual improvement of services.
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This practice ensures that stakeholders are identified and that their values and expectations are
captured, considered, and met as appropriate. This is done in combination with the relationship
management, risk management, and business analysis practices.
Organizations should focus on the continual monitoring of stakeholder engagement and satisfaction during
change planning, realization, and after the change is complete. Ongoing communication, status updates,
and feedback collection are important components of managing satisfaction and the workforce and talent
management practice.
Many change-related governance and compliance requirements affect the OCM practice. It is important
that organizations capture them, understand them, and ensure that they are met. The practice supports
this by:
Key metrics for the OCM practice are mapped to its PSFs. They can be used as KPIs in the context of value
streams in order to assess the contribution of the practice to the effectiveness and efficiency of those
value streams. Some examples of key metrics are given in Table 2.3.
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Creating and maintaining a change- Awareness of the organizational change, principles, and methods across
enabling culture across the the organization
organization
Attitude towards organizational changes across the organization
Establishing and maintaining a Stakeholder satisfaction with the procedures and communications
holistic approach and continual
Amount of improvements initiated by the OCM practice
improvement for organizational
change management Stakeholders satisfaction with knowledge about up to date
transformational methods and tools
Ensuring organizational changes are Change initiators’ satisfaction with change outcomes
realized in an effective manner,
Change success/acceptance rate over period
leading to stakeholders’ satisfaction
and meeting compliance requirements Compliance with formally stated requirements, according to audit reports
The correct combination of metrics into complex indicators will make it easier to use the data for the
ongoing management of value streams, and for the periodic assessment and continual improvement of the
OCM practice. There is no single best solution. Metrics will be based on the overall service strategy and
priorities of an organization, as well as on the goals of the value streams to which the practice
contributes.
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Figure 3.1 The contribution of the OCM practice to the service value chain
For more detailed description of OCM’s contribution to value streams, see ITIL® 4: Direct, Plan and
Improve, section 7.3.1.6.
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3.2 PROCESSES
Each practice may include one or more processes and activities that may be necessary to fulfil the
purpose of that practice.
Process
A set of interrelated or interacting activities that transform inputs into outputs. A process takes one or
more defined inputs and turns them into defined outputs. Processes define the sequence of actions and
their dependencies.
Table 3.1 Inputs, activities, and outputs of the organizational change lifecycle management
process
Organization vision and strategy Create change team New behaviour in a system
Financial guidelines and constraints Create change vision, plan, New roles
quick wins
Risk information New capabilities
Communicate change
Policies and regulatory requirements Role descriptions
Lead to change, enable
Guidance materials
operation
Change review reports
Anchor new state of the system
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Figure 3.2 shows the workflow for organizational change lifecycle management.
The process may vary depending on the change type and scope. Table 3.2 provides examples of the
activities in two different scopes of change5.
Organizations should embrace the diversity of architectures and approaches to management to ensure the
flexibility of services and meet stakeholder expectations.
Understand need The program manager of an IT project Service owner introduces the need for a
and scope identifies the need to change organizational new role.
structure and the change lead is nominated by
Relevant Service Stakeholders discuss
management team (change sponsor).
and decide:
Change lead together with management team ● Why this change is needed?
answers the following questions: ● Is it aligned with the company vision
and targets?
● Is the change needed? ● What are the opportunities and
● Is it needed right now? threats?
● Is it aligned with the vision and targets?
● What problem(s) will it help solve?
● What are the opportunities and threats it
may bring to the system?
5
https://rework.withgoogle.com/blog/changing-the-change-rules-at-google [Accessed 25th October 2019]
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● Which inputs are needed before a final ● How will successful implementation or
decision is made? failure look like?
● Who is responsible for the inputs? ● What are the alternatives to the
● Will it impact the strategy? change?
● Are new priorities emerging? ● How it will impact the system?
● What is the desired future state of the
system?
● What are the risks of obtaining the future
state?
● How will success or failure look like?
● What are the alternatives to this change?
Create Change Change lead and management team answer Relevant service stakeholders discuss
team the questions: and decide:
● Who is responsible for the final decision? ● Who is responsible for the final
decision?
● Who can make decisions if there are doubts
or disputes through the change?
● Who will design and create the role
description?
● Who are all the stakeholders?
● Who will play the role?
● Who is impacted by change?
● Who else will be impacted by a new
● Who may resist the change and how can role?
they be heard and supported?
● Who will contribute the most to change?
Create change Change team creates change vision and a Relevant service stakeholders discuss
vision, plan, quick plan: and decide:
wins
● What actions need to be done How change will be executed?
● How will all four dimensions of service
management be covered in a change? How will all four dimensions of service
● How will change be communicated? management be covered in a change:
● How can change be absolute?
● How can the change be managed through ● Is there a need for new technologies
the journey? for the role?
● What are the possible quick wins? ● How will the person learn to take a
● How can any positive or negative progress role?
be identified? ● Are processes or instruction updates
● How will change be measured? needed?
● How can the role be introduced to the
Employees who will be impacted by changes partners?
are involved in the discussion and plan review
as early as possible. Their ideas, fears, and
resistance are heard and considered.
Lead to change Time is invested to present and discuss the Change executed as planned before.
answers to the questions above to change
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Anchor new state The change progress and results are All service stakeholders, including the
of the system measured: person who plays a new role, observe
the operation and share their feelings
● organizational health metrics (employee
and feedbacks about a change.
survey, new capabilities review)
● business performance metrics (related
service quality, customer satisfaction)
Sustain system Management and change team ensures that Corrective action plans are implemented
prioritization of tasks is set up and clear for if required, lessons learned are captured
all stakeholders to be able to distinguish time and knowledge is shared within the
between ongoing operation and change organization.
actions.
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Communicate The communication strategy is executed and All other roles who are in
change maintained to sustain ongoing awareness. communication with business analyst are
open for any questions. Joined quick
Leaders refocus operation to connection with
improvement discussions are held
the change once or twice a day: constantly in a formal and informal way.
This process includes the activities listed in Table 3.3 and transforms the inputs into outputs.
Policies and regulatory requirements Create adaptability improvement Requirements and information for
plan and initiate improvement knowledge management,
Financial guidelines and constraints within OCM workforce and talent management,
relationship management
Employees surveys
Risk information
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Activity Example
Understand internal OCM includes leading together with the management team, service owners
organizational system and other relevant stakeholders review and analyse:
Factors, influences and ● The current organizational values and the way they are precepted by
challenges employees. As well as analysing the individual values of people.
● Results and progress of recent organizational changes and requests for
organizational structure improvement from other practices.
● Employees and customers surveys.
● Other data that may help to understand if the organization is flexible and
competitive enough to meet the vision and strategy.
Identify external factors and OCM includes leading together with the management team, service owners
influences continually review and analyse:
Optimize response OCM includes leading together with the management team and service
owners on the foundation of two previous steps to identify the optimal
response of change adaptability level to organizational strategy. The OCM
leader uses knowledge management tools to share the most valuable
information within the organization.
The OCM team recognizes that not all best practices and new approaches
should be implemented and used. Even though the fear of missing out may
cause desire to use all the best approaches for improvement, organizations
should only use those that are best for its interests and suits the vision.
Create adaptability The change leader registers everything required, initiates improvements, and
improvement plan and run processes it with the involvement of continual improvement practice.
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This will be implemented and part of the improvement plan combined with
knowledge management, relationship management, change enablement, and
continual improvement practice.
The OCM practice activities are performed by the service provider, as described in Tables 3.2 and 3.4.
They may involve customers, suppliers, and partners. These activities are also supported and sometimes
partially automated by tools and technologies which are described in the following sections.
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Roles are described in the context of processes and activities. Each role is characterized with a
competence profile based on the following model shown in Table 4.1.
Competence Description
code
Examples of the roles that can be involved in OCM activities, the associated competency profiles, and
required skills are listed in Table 4.2.
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HR specialist
Decision making
Service owner
Analytical skills
Product owner
Risk analysis
Risk management
Project management
technics
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Presentational skills
Mentoring, consultancy,
and coaching
Management team
representative
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Understanding emotional,
social, and system
intelligence
Mentoring, consultancy,
and coaching
Management team
representative
HR specialist
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Service owner
Product owner
Understanding emotional,
social, and system
intelligence
Understanding
organizational structure
Service owner
Knowledge of continual
Product owner
improvement method
HR specialist
Continual improvement
manager
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The role of a change leader should focus less on pushing through a change project, and more on creating
the change-enabling environment, where stakeholders can choose to adapt for the new required state of
the organizational system.
● The initial processing and verification of a change request by coordinating an action of understanding
the change need and scope.
● Coordinating the identification, nomination, and creation of a change team.
● Empowering, mentoring, and leading a change team through the whole change lifecycle.
● Formally communicating decisions made through the change lifecycle to the stakeholders and affected
parties.
● Monitoring and reviewing the activities of the teams that are involved in a change.
● Conducting regular ad hoc practice analyses, and initiating improvements to the practice, procedures,
used methods, and tools.
● Developing the organization’s expertise in the methods and approaches for the OCM practice.
● Creating an environment that embraces psychological safety, mutual respect, and trust; where
employees can realize potential as self-initiating change agents.
● Reinforcing conformity with the change mandate by holding the change team accountable.
The competency profile for these roles is LACM, though the importance of each of these competencies
varies from activity to activity.
Shared leadership models support organization’s evolution by shifting from top-down one-hero leadership
to interdependent, coordinative leadership by a change team. A change team is a team of people with
different capabilities and skills who work together and lead change to achieve mutually desired outcomes.
The shared leadership is a set of shared practices that should be executed by people at all levels of an
organizational structure.
A change team and a change lead are responsible for defining, communicating, and executing the change
vision and plan. It is expected that the change team will apply its ingenuity and contribute ideas and
efforts to change.
When organizational change is a part of a big project or program, it is also supported by a project
management team.
A change team member should demonstrate the following types of behaviour to support change processes:
● taking risks
● eager to learn new ways of working
● unlearning old methods
● assuming new responsibilities and letting go obsolete ones
● gathering feedback
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● discussing errors
● celebrating and acknowledging small and big wins.
Many organizations may include a change team and temporary teams assigned for a specific change,
especially if the change is treated as a project. For more details on project teams, please see the
management practice guide.
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Service Desk
One important success factor of any change is an efficient distribution of accurate, timely, and up-
to-date information. The distribution of information and ideas relies on the employees’ network
density. The more links between social-network modes, the more likely that information will
spread.
In bigger networks, people can benefit from the diversity of information channels, and the amount
of perspectives to see one change. Network density makes it more likely that change
understanding and acceptance will be achieved faster6.
6
https://www.forbes.com/sites/carstentams/2018/04/23/it-takes-a-village-change-
management-as-community-building/#d1c52f85683e [Accessed 25th October 2019]
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Understand need and Workflow systems, Enabling and controlling Medium, more impact
scope backlog management workflow for changes; on organizations with
tools, and Kanban prioritization of backlog large volumes of
boards and workflow changes
management; workflow
visualization
Create change vision, Workflow systems, Formalization and Very high, especially for
plan, quick wins backlog management structuring of plans and large volumes of
tools, Kanban boards, required actions. Quick changes
project management and traceable remote
tools, ideation platforms control
Lead to change, enable Workflow management Visualization and Very high, especially
operation tools, collaboration and reporting for up-to-date when many changes are
reporting tools, Kanban views on the ongoing realized simultaneously
boards, and project changes
management tools
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Service Desk
Anchor new state of the Reporting tools, Analysing, summarizing Medium to high,
system presentational tools, and and presenting results to especially when
knowledge management stakeholders regulations require
tools traceable records
Legal information
portals
Platforms for experience
exchange between
organizations
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Relationships between organizations may involve various levels of integration and formality. (see
Table 3.1 of ITIL® Foundation: ITIL 4 Edition for more information about relationships between
organizations). The decision to involve partner representatives to change activities, present
change results or request input information to change, depends on forms of cooperation.
Where organizations aim to ensure fast and effective OCM, they usually try to agree close
cooperation with their partners and suppliers, removing formal bureaucratic barriers in
communication, collaboration, and decision-making (see the supplier management practice
guide for more information).
Some organizational change activities may be outsourced to the third parties such as training,
workshops facilitating, coaching, analysis, audits, and so on. The ownership and accountability for
OCM actions are usually not transferred to an external resource.
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Service Desk
Important reminder
Most of the content of the practice guides should be taken as a suggestion of areas that an
organization might consider when establishing and nurturing their own practices. The practice
guides are catalogues of topics that organizations might think about, not a list of answers. When
using the practice guides, organizations should always follow the ITIL guiding principles:
● focus on value
● start where you are
● progress iteratively with feedback
● collaborate and promote visibility
● think and work holistically
● keep it simple and practical
● optimize and automate.
More information on the guiding principles and their application can be found in section 4.3 of
ITIL® Foundation: ITIL 4 Edition.
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ITIL®4 Practice Guide
Acknowledgments
AXELOS Ltd is grateful to everyone who has contributed to the development of this guidance. These practice
guides incorporate an unprecedented level of enthusiasm and feedback from across the ITIL community. In
particular, AXELOS would like to thank the following people.
8.1 AUTHORS
Antonina Klentsova.
8.2 REVIEWERS
Roman Jouravlev.
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