‘Theory’ of ITSM CSIP

Key concepts ITSM

• The directive for ensuring delivery IT Services is in-line with
organization’s mission
• Increase efficiency and effectiveness by 30% (Gartner)
• Changing the behavior of IT resources activities
– Historical behaviors, Habits, etc…
• Senior management must be part of improvements
• Middle management will be most affected
• Implementation done through quick wins (4 to 8 weeks) and
pragmatic projects (3 to 9 months)
• Full improvement program and continuous cycle implemented
approx. 3 years
Why invest in ITIL and ITSM?
To answer the following questions (partial list, examples):
• How much money was spent on managing failures?
• What are all the components required to deliver a specific
IT service?
• Do you an agreement for all IT services being delivered?
• Can you justify 100% of the IT expenditures?
• How many failures were caused because of changes?
• What is the projected service availability (availability
requirements) of your top 3 IT Services?
• Have all the IT services been defined?
Why would the military adopt a
Good, robust and standardized processes across military services,
process
combat commands, approach?
Defense Information Systems Agency and
the intelligence community:
• Can be audited and improved
• Impose organizational discipline
• Clarify organizational boundaries and roles
– No process stands alone
– Cut across silos – promote communication and co-operation
• Capture organizational knowledge
• Link individuals with the work roles they fill
• Avoid duplication of effort
• Contribute to increased security
• Support continuous improvement
 ITIL contributes to the Global
•
•
Information Technology
Integrated central processes
Common processes
Model
• Standard procedures
• Clear roles and responsibilities
• Improved IT availability, reliability and security of mission critical IT
services
• Justify cost of service quality
• Provide services that meets business, customers and users demands
• Provide demonstrable performance indicators
• Policy-driven
– Incident handling
– Change handling
– Release handling
 ITSM through a scenario
The best way to show why to get involved in ITSM
and using ITIL is through an improvement example
 Q1. What is the vision ?
(objectives)
• Reduce downtime of IT
Services
(for users)
• Increase efficiency in
managing failures
• Increase service levels for
clients
 Q2. Where are you now ?
(Assessment)
• Organization with 500 incidents per day
• Average incident time (MTTR) 7mins 30secs
• Average time spent on detection and diagnosis is
4mins
• 12 staff at the Service Desk, 7 involved in
detection and diagnosis
• Salary of SD staff $75K/year
• Cost of unavailability $7.50/minute of down
time for users (???)

• You also need to do an assessment of ITSM

Processes maturity within the organization
 Q3. Where do you want to be
(Targets)
• Reduce detection/diagnosis time by 1
minute
• Save $300,000/year
• Increase SLA Target
• Reduce SD Staff by 15%

• Associated KPIs:
– MTTR
– % SLA Breached
– % Failed RFC
– Etc…
 Q4. Process Improvement
• Using ITIL Framework “best practices” and ITSM discipline
– Availability Management (AM) Process confirm Mean Time To
Restore (MTTR) and detection/diagnosis time
– AM making recommendation on how to reduce failure time
– Change Management (ChgM) to manage Request For Change (RFC)
to implement new improvements
– Configuration Management Database (CMDB) to record new
Configuration Items (CIs) being implemented
– Service Level Management (SLM) to review Service Level
Agreements (SLAs)
– Incident Mgmt process changes

• Other processes maybe involved…

 Q4. Process Improvement
 AM Recommendations
 Training of SD staff ($20K)
 Implement Knowledge DB ($35K)
 Implement new module of Monitoring tool ($40K)
 Change Incident Management process
 Incident changed process to use KDB and new
monitoring tool
 Hire consultants to help change the processes and
analysis of recommendation. Cost of $250K
 Q5. Measuring Success of
Improvement
 Annual savings of $555,000 from recommendations

 Current situation (Calculations)

 7 staff X 8 hours X 60 minutes X 70% on
detection/diagnosis = 2352 minutes of possible work
 500 incidents/day X 4 minutes unavailability = 2000
minutes of unavailability time

 If detection/diagnosis is reduced from 4 mins to 3 mins

 500 incidents/day X 3 minutes unavailability = 1500
minutes of unavailability time
 Reduction of unavailable time of 500 minutes (From
2000 mins to 1500 mins)
 Q5. Measuring Success of
 1500 minutesImprovement
 Calculation Resource Savings
of unavailable time
 5 staff X 8 hours X 60 minutes X 70% = 1680 minutes of
possible work
 Was 7 staff X $75K = $525K
 Reduced to 5 staff X $75 = $375K
 SAVINGS OF $150K/year or 28.5%

 Calculation Availability Savings

 Savings of 500 minutes of unavailability (was 2000
reduced to 1500)
 $7.5/minutes X 500 minutes (saved) / day = $3,750/day
 200 days of work X $3,750/day = $750K
 SAVINGS OF $750K/year
 Q5. Measuring Success of
Improvement
 $150K + $750 = $900K / Year
 Cost of improving:
 $95K (Availability recommendations) + $250K (Consultant
assistance in process changes) = $345K cost

 $900K - $345K = Net Savings of $555,000

 The 5 main business objectives
… all improvement projects should be linked to business objectives ...

• Increase revenue of the organization

• Lower cost of operations
• Legal compliancy (Political)
• Better control/knowledge of Service Delivery
• Increase morale of the organization

ITSM Business
Improvements Objectives
 Creating a business vision
• At the end of the day it is not the process diagram that will make a
difference, but the business results
• Take the time to define your KPI’s and Business Objectives from
the start

• You will be forced to look at the bottom line for your CSIP
• ITIL is about what ITSM processes and related roles that needs to
be improved to meet business vision
 Conclusion
 This is just an example but the premise is sound
 ITIL and ITSM is about making real life changes
 It is proven that it works
 Make sure you set your objectives and set some
KPIs to measure the success
Questions
 Important KPIs – Incident,
Problem impact& CMwithin agreed
 Number of Business impact 1 incidents
 Number of Business 1 solved
service level times
 Service Desk user daily satisfaction survey
 Incidents vs KE ratio
 # of KE solutions implemented last period
 % of assets (CIs) in the CMDB (under change control)
 % increase of CIs audited
 % of CI under Control by Type
 Important KPIs – Change &
 % of failed changesRelease
 % of failed changes
(by service line)
 % of emergency RFC’s raised
 # of rejected changes because of bad categorization
 # of Emergency Releases
 % of Releases with Approved RFCs

                                                 
                                                 
     
 Important KPIs – Service
 % of security incidents by Service Line
 Number of securityDelivery
incidents solved within agreed
service level times
 % of ICA updated in capacity plan
 % of successful ITSCM plan invocation
 % of clients with SLA’s in place
 % of SLA’s breached
 % of items sold that are in service catalogue (by $ value)
 Total Cost of operations
 % Variance between budget and expenses
 % Variance between budgeted and billed revenues
 % Variance in planned and completed report dates
 Business Growth (Also by each Major Service Line)
 Average score in client survey