Archives for category: ITIL v3 Foundations

Louisville training partners Service Management Dynamix and Tandem Solution deliver certified ITIL® consulting, training, and implementations that provide best practice solutions for your IT department.

   The Foundation Certificate enables people to understand the terminology used within ITIL®. It focuses upon foundation knowledge with regard to the ITIL® Lifecycle and Capability sets as well as covering generic ITIL® philosophy and its background. It is a prerequisite for the ITIL® v3 Intermediate courses. Attend public / instructor-led classes at our site or yours. You may also attend these same live classes from your home/office PC via our Remote Classroom Instruction. If you have 6 or more students, you can schedule private / Instructor-led classes that have been designed with your specific needs in mind. Private classes may be scheduled at your site or ours.

Jason Hinder comments on the recent analysis of IT best practices made by Garter’s Ken McGee. Are these drastic measures the answer?

Get drastic: 15 IT Best Practices to kill

By Jason Hiner October 25, 2011, 2:16 PM PDT
 
 
 

 Takeaway: Gartner analyst Ken McGee has a radical assessment of IT and what CIOs need to do about. Read his principles of the “new CIO manifesto.”

The traditional IT department has entered a period of massive transformation and CIOs are having to completely rethink the way they lead, strategize, and manage their careers. That was the message from Gartner analyst Ken McGee at arguably the boldest and most honest session at Gartner Symposium 2011.

McGee told the convocation of CIOs that it’s time for drastic action and they need to stop doing a lot of the things that are traditional mainstays of IT strategy, and it needs to happen as soon as possible. He said that if you want to use IT to create value in your company as well as develop valuable experience for your career then you need to embrace “creative destruction.”

The idea is that you create something new and don’t worry about the fact that it will kill something old in the process. That’s a natural part of transformation, in this line of thinking. McGee said CIOs should be guided by a “new CIO manifesto” in driving these changes and he gave four principles of this new manifesto, which I’ve listed below.

McGee then listed 16 IT best practices that IT leaders should eliminate as soon as possible. The list below has 15 items because McGee had No. 4 as a two-parter (business apps + technical infrastructure). I simply left it as a single item.

Photo credit: Jason Hiner | TechRepublic
Photo credit: Jason Hiner | TechRepublic

“New CIO manifesto”

  1. Information is just as important, if not more important than information technology.
  2. More than 50% of annual CIO project spending will be directed toward measurably improving the financial conditions of an enterprise.
  3. More than 50% of all enterprise information and IT spending will directly support revenue generating rather than expense related business processes.
  4. The incentive portion of CIO compensation will be derived from the amount of money created by the efforts of CIOs and their staffs.

IT practices to eliminate

  1. Reject annual mismatch between CEO priorities and IT’s most funded projects
  2. Terminate support of projects that will not improve the income statement
  3. Abandon CIO priorities that do not directly support CEO priorities
  4. Stop recommending IT mega projects
  5. Abolish environment of little or no IT spending accountability
  6. Terminate existing applications that do not yield measurable business value
  7. End the practice of placing enterprise IT spending within the CIO’s budget
  8. Eliminate IT-caused business model disruption “surprises”
  9. Eradicate “cloud-a-phobia”
  10. Abandon level 1, 2, and 3 tech support
  11. Cancel most IT chargeback systems
  12. Cease issuing most competitive bids
  13. Stop holding on to unfunded projects
  14. End discrimination against behavioral skills and social sciences
  15. Abandon IT’s unbalanced support between front and back office

Sanity check

You’ve got to like Ken McGee’s boldness here, because it is absolutely warranted. IT is facing rising responsibilities with stagnant budgets and it simply can’t go on doing things the way it has in the past. It’s completely unsustainable. IT has to stop thinking of itself as a business utility and start seeing itself as a business catalyst. In order to do that, it’s going to have to think in business terms and economic impact for everything it does, from asking for a replacement router in a branch office to recommending a new cloud app to run customer service. That’s ultimately what McGee is getting at, and while the idea has received lip service for years, it’s time to use that principle to make some painful decisions that will reshape IT.

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The Information Technology Infrastructure Library (ITIL®) is a framework of best practices and approaches that will best facilitate the delivery of high quality information technology (IT) services. ITIL® outlines an extensive set of management procedures that are intended to support businesses in achieving high quality services and valuable IT operations. Is ITIL right for you? What are the benefits and possibilities from return on investment?  Augusto Perazzo a principal consultant at PA Consulting group lays it out.

 

Is it Possible to Achieve a Return on ITIL?

July 12, 2011 By Augusto Perazzo

There has been quite a few arguments in trying to prove or debunk that ITIL can produce any kind of ROI. The pragmatic answer is: Yes it can, but not as easy as ITIL guidance can hope for.Let’s step back and define what ITIL is. A simplistic view is that ITILis a set of best practices that seek to improve the management and delivery of IT services. Like most best practices or processes guidance, it has been put together by drawing from the collective experience of practitioners and organizations that have tried to solve the IT efficiency problem in the past.ITIL’s first version was developed in the 1980s on behalf of the British government. Thus ITILv3, released in the summer of 2007, is an attempt to integrate and systemize best practices that have been previously loosely applied to the IT service management (ITSM) domain within the last 25 or so years.When looking at improving IT service management there are then two main options: try to figure out an effective way in isolation or to leverage an existing framework such as ITIL (which has been adopted and tested by thousands of organizations worldwide). Chances are that ITIL will provide better odds to the challenge.

 ITIL ROI

ROI has the following components: Cost of investment (COI) and results of the investment. A positive ROI, which we seek, means that the results should be larger than the investment. Cost of implementing ITIL is the investment and the ITSM improvements we seek are the results. The challenge then becomes the quantification of ITIL costs and IT service improvements.

ITIL costs are anything and everything you will spend in order to design and implement your custom ITIL solution, including any tools, internal resources and external help. The technical aspects of an ITIL implementation are relatively easier to estimate and carry on; organization change management is where the devil works!

Any process improvement program, which an ITIL implementation surely is, will carry a high and usually hidden cost for change management (efforts to bring people on board and provide them with the willingness, abilities and capabilities to succeed and to follow and leverage the ITIL based processes). Your ROI calculation must include a good chunk of change for that part of the investment. Most ITIL implementations fail because little attention is given to the devil’s playground.

IT service improvements

To know how far you have traveled, you need information on both the departure point and the destination you have reached. Once you reach a destination, it is relatively easy to quantify where you are: How much time and thus FTEs and thus money your organization spends on managing and delivering IT services. The problem is in baselining your departure point before you leave.

Most organizations do not have a clue about the true cost of their current ITSM practices (or lack thereof). The assessment, once you reach your destination, is easier because after an ITIL program you should be better equipped to do so.

Because of this ITIL ROI conundrum, we usually recommend to clients that they embark on a process improvement program — ITIL or other — using an iterative and a long-term timeline. For example, improve your Incident management processes first so that you can start collecting meaningful data and measure the cost of incidents and its impact on productivity. Improve IT financial management early so that you can calculate the true cost of IT services and so on. Once you have basic IT performance information that can be baselined, move on to bigger investments.

In sum, to determine ROI, you need to define what the cost to deliver IT services is today, what the cost of the investment to improve is and what the cost to deliver IT services will eventually be once you reach your destination. Most organizations with more mature policies around program funding will require a business case before approving the journey. Nonetheless do understand that this is only an estimate as you will not know for sure how much the investment will cost you and how much the future cost of delivering IT services will be once you are done.

A good piece of advice: Make sure you have several waypoints defined between your departure and final destination and leverage the lessons you learned from these small trips to calibrate the remainder of your journey. Comparing the estimated ROI for these waypoints to the actual ROI and the causes for discrepancy can provide much valuable information on how to go about the rest of the program and how to reset expectations.

Augusto Perazzo is a Principal Consultant at PA Consulting Group. Augusto works closely with Business and IT executives to define strategies and operating models, optimize processes and empower people, leveraging the power of information technology to design and deliver better services and products. Augusto has an MBA degree from USC Marshall Business School and holds ITIL and PMP certifications.

 IT Training Company, Tandem Solution, has partnered with Service Management Dynamix™ to provide a broad spectrum of ITSM training options for students. In addition to public and private training (Class Outlines), together they also provide a full complement of ITIL® Consulting Services: The Experienced Consultants/Trainers (Keith Sutherland  &  Butch Sheets) have long been considered  industry experts. Moreover, they serve on multiple ITIL® examination review boards and have over 70 years of combined IT experience and 20 years of formal IT Service Management knowledge. Contact info@training4it.com for more information or your free needs assesment.

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