High Velocity Itsm: Agile It Service Management for Rapid Change in a World of Devops, Lean It and Cloud Computing
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About this ebook
Agile, DevOps, Lean IT, Virtualization, Application Lifecycle Management, Cloud Computing and many other technologies are rapidly pulling IT in many directions. These modern ways of operating IT to cope with a world of rapid change will not go away. Somehow they need to be pulled together to avoid the chaos. Service Management is the glue needed to hold these all together.
There is no IT value for the business until the point a service is received. For this reason, this book is written for IT leaders, managers and practitioners from a Service Management perspective. Having the best development practices, be it Agile, DevOps or others means little if a service is not delivered to the business. When they need it.
High Velocity ITSM is about transitioning the IT Organization from traditional waterfall slower service development and support to a service delivery organization operating at high velocity.
This book provides practical guidance for:
? Transitioning IT towards high velocity ITSM
? Using Agile and DevOps for rapid service build
? Using Lean IT to operate at high velocity
? Streamlining your ITSM management processes
? Building a Lean IT CSI Program
? Learning and applying modern IT methods
and much more!
Randy A. Steinberg
Randy A. Steinberg has extensive IT Service Management and operations experience gained from many clients around the world. He authored the ITIL 2011 Service Operation book published worldwide. Passionate about game changing management practices within the IT industry, Randy is a hands-on IT Service Management expert helping IT organizations transform their IT infrastructure management strategies and operational practices to meet today’s IT challenges. Randy served in leadership roles across many government, health, financial, manufacturing and consulting firms including a role as Global Head of IT Service Management for a worldwide media company with 176 operating centers around the globe. He implemented solutions for one company that went on to win a Malcolm Baldrige award for their IT service quality. He continually shares his expertise across the global IT community frequently speaking and consulting with many IT technology and business organizations to improve their service delivery and operations management practices.
Read more from Randy A. Steinberg
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High Velocity Itsm - Randy A. Steinberg
Copyright 2016 Randy A. Steinberg.
All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the written prior permission of the author.
ISBN: 978-1-4907-7638-5 (sc)
ISBN: 978-1-4907-7655-2 (e)
Because of the dynamic nature of the Internet, any web addresses or links contained in this book may have changed since publication and may no longer be valid. The views expressed in this work are solely those of the author and do not necessarily reflect the views of the publisher, and the publisher hereby disclaims any responsibility for them.
Any people depicted in stock imagery provided by Thinkstock are models,
and such images are being used for illustrative purposes only.
Certain stock imagery © Thinkstock.
Trafford rev. 09/26/2016
23409.png www.trafford.com
North America & international
toll-free: 1 888 232 4444 (USA & Canada)
fax: 812 355 4082
Table of Contents
Dedication
Chapter 1 An ITSM High Velocity Overview
The Landscape Is Changing
Why This Book Was Written
The Business Case For High Velocity ITSM
Book Chapters in Brief
ITSMLib Download Site
Chapter 2 The High Velocity ITSM Operating Model
High Velocity ITSM Overview
High Velocity ITSM Operating Model
Core Operating Strategies
The Model Lifecycle
Organizing As An IT Service Provider
Chapter 3 Lean IT Applied To ITSM
Lean IT Overview
A Framework For Finding Waste
Waste Category #1 - Inventory
Waste Category #2 - Talent
Waste Category #3 - Waiting
Waste Category #4 - Motion
Waste Category #5 - Defects
Waste Category #6 - Transportation
Waste Category #7 - Overprocessing
Waste Category #8 - Overproduction
Cascading Waste
Leaning Out Processes
Chapter 4 Agile Principles Applied To ITSM
Overview Of Agile
Agile Concepts
An Agile Operating Model For ITSM
Infrastructure Projects Can Also Be Agile
Maintenance and Support Can Be Agile
Chapter 5 DevOps Applied To ITSM
DevOps Overview
A DevOps Success Story
Fusing Development and Operations Together
The Operational Readiness Framework
Bundling Operational Services For Solutions
Operations Support For Development Teams
Chapter 6 Virtualization Applied To ITSM
Virtualization Overview
How Virtualization Works
Virtualization and Change Management
Chapter 7 Integrated ALM Applied To ITSM
Overview Of ALM
The ALM Operating Model
Chapter 8 Cloud Computing Impact On ITSM
Cloud Computing Overview
Cloud Service Offerings
Cloud Deployment Models
Private Cloud
Public Cloud
Hybrid Cloud
Community Cloud
Cloud Security and Privacy
Chapter 9 Leaning Out Service Transition
Operating In A World Of Rapid Change
Lean Change Management
Lean Release and Deployment Management
Shifting Left With Orchestrated Deployments
Lean Asset and Configuration Management
Declarative Configuration Management
Containerization
Challenges With Continuous Deployment
Chapter 10 Leaning Out Service Operation
Leaning Out Incident Management
Reducing Ticket Touch Points
Leaning Out Monitoring and Event Management
Leaning Out Request Fulfillment
The 40-40-40 Program For Problem Management
Chapter 11 Leaning Out Service Design
Leaning Out Service Design Tasks
Defining IT Services With 6 Strategies
Implementing A High Availability Landscape
99.X% Availability Only Angers The Business
Capacity Modeling And Forecasting Basics
Using Cloud for High Velocity IT Service Continuity
Supplier Management Is Now Critical
Chapter 12 Leaning Out Service Strategy
The Danger Of Operating In Engineering Silos
Five Steps To IT/Business Alignment
Step 1: Building The Service Portfolio
Step 2: Mapping Infrastructure To Services
Step 3: Developing Service Cost Models
Step 4: Assessing Current Service Capabilities
Step 5: Optimize IT Service Delivery and Costs
Strategic Sourcing
Chapter 13 Driving Out Waste With CSI
Becoming A Lean Service Provider
Strategy On A Page: The Lean CSI Program
Lean CSI Program Roles and Responsibilities
Lean CSI Program Activities
Conducting A Service Review Meeting
Chapter 14 ITSM Lean Toolkit
Overview
Advantages/Disadvantages Table
Affinity Map
Box Plot
Brainstorm
Business Case
Cause and Effect Diagram
Cell Design
Check Sheet
Continual Service Improvement (CSI) Register
Correlation Analysis
Crawford Slip List
Critical-To-Quality (CTQ) Tree
Data Collection Plan
Data Selection Sample
Design Of Experiments (DOE)
Eight Deadly Wastes
Failure Mode and Effects Analysis (FMEA)
Fault Tree Analysis
Five Whys
Histogram
Improvement Process Roadmap
Issue Log
Kaizen Program
Kanban Board
Kano Analysis
Nominal Group Technique
Non-Value Step Analysis
Observation Post
Organizational Change Flow Of Activities
Organizational Change Success Factors
Pain Value Analysis
Pareto Analysis
Pick Chart
Principled Negotiation Method
Prioritization Matrix
Process Lead Time Analysis
Process Mapping
Regression Analysis
Risk Mitigation Matrix
SIPOC Diagram
Stakeholder Map
Storyboard
SWOT Analysis
Value Stream Map
About the Author
Other books by Randy A. Steinberg:
Implementing ITSM
Adapting Your Organization to the Coming Revolution in IT Service Management
Trafford Press ISBN: 978-1-4907-1958-0
Measuring ITSM
Measuring, Reporting and Modeling the IT Service Management Metrics
That Matter Most To IT Senior Executives
Trafford Press ISBN: 978-1-4907-1945-0
Servicing ITSM
A Handbook of IT Services for Service Managers and IT Support Practitioners
Trafford Press ISBN: 978-1-4907-1956-6
Architecting ITSM
A Reference for Architecting and Building the Entire IT
Service Management Infrastructure End To End
Trafford Press ISBN: 978-1-4907-1957-3
Organizing ITSM
Transitioning the IT Organization from Silos to Services With
Practical Organizational Change
Trafford Press ISBN: 978-1-4907-6270-8
The average change request takes 9-22 business days to get an approval
35% of IT organizations report 1-3 major outages per week
70% of IT budgets are stuck in non-discretionary spend just to keep the wheels running
85% of IT organizations get blind-sided when new services go live
60% of IT organizations experience unplanned labor rates of 35% or higher
80% of IT organizations cannot clearly articulate their services to the business
6 out of 10 applications fail because they cannot be operated at acceptable cost and risk
Let’s turn IT into a LEAN and EFFICIENT Service Organization!
- The Author
Dedication
This book is dedicated to those very hard working IT professionals, managers and executives who deserve to see their IT solutions deploy and operate day-to-day within acceptable levels of costs and risks to their company.
Chapter
1
An ITSM High Velocity Overview
The Landscape Is Changing
IT is undergoing a fundamental change in how it manages and operates itself.
Without our realizing it, the primary role of IT as an engineering organization has been shifting from a primary focus on building solutions to one of integrating solutions from internal and external providers. From engineering to service integration. The practice of understanding business requirements, designing building and deploying IT solutions is giving way towards integrating pieces, parts and services together to meet those same business requirements. IT executives that don’t understand this shift will face severe challenges in meeting business needs at cost and availability levels acceptable by the business.
The traditional IT operating model of delivering IT to the business in the form of bundled capabilities and assets is now wearing thin in an age of cloud computing, on-demand services, virtualization, outsourcing and rapidly changing business delivery strategies. The role of IT is rapidly changing from technology tinkerer to services thinker. Traditional alignment approaches are no longer enough. IT must blend with the business.
Many IT organizations have yet to recognize that the traditional IT operating model of delivering IT to the business in the form of bundled capabilities and assets is now wearing thin in an age of cloud computing, on-demand services, virtualization, outsourcing and rapidly changing business delivery strategies. The role of IT has now changed from engineer-to-order to service integrator. What IT traditionally engineered, built, owned and operated can now be bought from many sources more easily without inheriting the specific risks of ownership, support, building and managing an operating infrastructure.
The IT executive that cannot clearly articulate the services they deliver, the IT spend for those services, and how those services are consumed by the business is essentially running a commodity operation that is whip-sawed by business demand and will never been seen as nothing more than an overhead cost to the business.
At the time this book is being written, many IT organizations are still organized and operated as siloed engineering delivery and capability organizations. If the organization chart looks like the schema for a configuration database (e.g. application unit, network unit, server unit, etc. all reporting to an executive layer) then that organization may be in trouble. The forces of outside suppliers ready to provide hardware, applications, and network and support solutions quickly and at lower price points are growing at a rapid pace. IT will need to assemble services and solutions from many providers integrating these together in the optimum manner to meet business needs.
As many IT organizations are under great pressure to provide consistent levels of service with decreasing budgets, they often look towards rationalizing the technical and non-technical components that they control such as hardware, software, people and contracts. However, this approach can focus too heavily on the parts
and forget that the business cares about the services made up by these parts. Many IT organizations are unable to accurately describe the business facing services they provide, the true costs of these services or how they are being consumed. Therefore, decisions on where to apply tight funds and how to take cost out are often made at the component level without a picture of the overall business impact.
To this end, IT is undergoing a fundamental change in terms of its expectations from the business and how it manages and operates itself. This change requires a transformation from a traditional focus on IT components and outputs (e.g. produce a report, install a server, implement an application) to a focus on business outcomes and value (e.g. reduce customer order wait times, quickly onboard a new employee, enable collaboration between internal employees and external partners, etc.).
There is a growing recognition that managing IT by technology fiefdoms no longer allows for the quality and agility expected by the business. IT must organize and operate by services being delivered, not the technologies being employed. A Services Thinking approach is critical towards helping IT transition to a service delivery organization focused on providing value to its customers at an acceptable cost and risk.
The transformation from engineering silos to services suddenly exposes a lot of waste. Much of this has been built up over many years. Services that are not cost effective, solutions that are over-architected beyond what the business needs. Slow delivery processes. Too many layers in the IT organization (when you operate by technology someone has to pull it all together so multiple layers historically have been created to integrate
things).
A Services Thinking approach is needed and it must be a Lean one. Businesses are under greater pressure more than ever to move quickly or die. New technologies and business models can quickly put a large company out of business. For many years IT ran with the mantra we are the business
. Well guess what? A slow wasteful and costly IT delivery organization will no longer cut it in today’s world. Solutions can’t wait years and sometimes even months to deploy. IT must move fast. It must operate at high velocity. It must operate Lean.
New concepts and practices around Agile, DevOps, Lean IT and other approaches have been evolving in the industry to deal with this transformation. All of these offer great promise, but lack the Services Thinking approach that is so critical to success. It is painful to watch some of these evolve, dancing around the concept of services and service value in their own disparate ways without ever getting to the point. These practices hold great promise. The tenet of this book is that they are all tremendously useful, but they need to be integrated into an overall approach that delivers high quality reliable services when the business needs them. This book pulls all these disciplines together. They operate within the overall umbrella of ITSM. ITSM is the glue that holds them all together.
This book will directly address the activities, steps and approach for running IT through a program of IT Service Management operating at high velocity. Much attention is spent on where waste typically exists within an IT delivery organization. It then turns to what you can do about it. An overall ITSM High Velocity Operating Model is presented to provide a context for how IT operates in this new world. Critical practices such as Agile, lean IT, DevOps and other evolving operating strategies are presented in terms of their IT Service Management impact. Included are a set of tools that you can employ that can assist you in finding waste, operating lean and improving your own IT delivery execution.
Why This Book Was Written
If you read through this book and still don’t believe there is a critical need for IT Service Management then good luck seeing if you can survive in IT for the next 5 years.
There is a lot of information out there in areas such Agile, DevOps, Lean IT and other disciplines. Much of it is presented disparately. Much of it is driven by IT development expertise which woefully leaves out a lot of operational needs and concerns. This book intends to overcome that gap. IT Service Management (ITSM) is used as the glue for pulling these disparate disciplines together. The all operate under an overall ITSM framework because it can’t be said enough:
There is NO value in IT to the business until the point that a service is actually delivered
End of story. The business could care less about whether development is now moving to Agile, whether the latest technology has been implemented, or whether IT has hired the smartest people. If the service is down, IT hasn’t done its job. If development delivers the code faster and on time, but it can’t be operated day-to-day at acceptable cost and risk, then IT hasn’t done its job.
Not to say that Agile, DevOps, Lean IT and other approaches are not useful – they are definitely important. But they need to be utilized and integrated into an overall approach that delivers high quality reliable services when the business needs them.
This book will pull all these disciplines together. They operate within the overall umbrella of ITSM. The ITSM High Velocity Operating Model describes how. Careful attention has paid to concepts like Agile and Lean IT and apply them to real world IT examples.
It is hoped that the content in this book can serve as a reference guide to IT workers, be they developers, IT support staff, executives, middle management or project leads who are working on IT initiatives to help make them successful.
The Business Case For High Velocity ITSM
At the executive level, focus should be placed on outcomes not the means to those outcomes. If executives agree to those outcomes, then ITIL™ (IT Infrastructure Library) and ITSM merely become the vehicles by which those outcomes will be achieved. The outcomes in most cases will center on cost initiatives and concerns, sometimes risk, very rarely quality by itself. Although people talk a good game about quality and certainly everyone nods their head about it, rarely are checks written for quality by itself unless it leads to lower operating costs or risks. Telling executives they need to implement ITSM or ITIL may get heads to nod, but rarely funds to be provided. Focus on business, cost and risk issues.
Another error IT frequently makes with executives is focusing on IT total costs versus IT unit costs. With this mistake, IT keeps focus on the total cost of computing (i.e. the IT expense last year was $400M) which management may view as too expensive totally missing the fact that the services and volumes that IT has to process may have grown because of business events. Worse yet, this focus keeps IT viewed as an overhead in the eyes of executives. It’s quite possible (and highly likely) that ITSM can reduce unit costs, thereby allowing the business to do more at lower unit costs even though the total computing cost may be higher.
Selection of a return on investment strategy to take with executives will be critical. Below is a table that identifies several strategies that can be taken as you develop your business case: