Category Archives: ITIL & Program Management

ITIL Service Design and Project Management – a contrast in execution


The purpose of this series of articles is to continue to show how these two best practices, ITIL and project management provide synergy to improve effectiveness and drive overall maturity for organizations to meet the needs of the business.

In this third article I will focus at a high level on how service design and project management each enable the outcome of a service design to meet the service strategy.

This high level evaluation will be based on the four criteria noted below:

  1. Define service management and how it achieves value creation
  2. Identify the integration points between service design and project management
  3. Understand the service design and project management roles
  4. Sample project management artifacts to support service design

First, as we begin to delve into more of the lifecycle phases of ITIL it is important to preface with some key ITIL service management definitions and how value creation is achieved by a service.

  • Service management is “a set of specialized organizational capabilities for providing value to customers in the form of services
  • Services are “a means of delivering value to customers by facilitating outcomes customers want to achieve without the ownership of specific cost and risks”
  • The value of a service is “highly dependent on the customer’s perception” and the attributes of those services

I want to pause here for a moment to highlight that attributes differentiate the value creation of services through utility and warranty.

  • Utility, commonly known as “fit for purpose”, is seen to improve performance.  This can be accomplished as a service provider progressively manages the constraints to enhance customer performance by either removing or reducing those constraints. An example, of a cost and risk constraint is when a customer would like to avoid or eliminate non-core assets and lessen over-consumed assets.
  • Warranty, also commonly known as “fit for use” which comes from the positive effect of being available when needed.  Warranty is ensured through four discrete performance variables of availability, continuity, security and capacity of a service. If one of these criteria is not met then value creation is not fulfilled. Warranty is met when the needs of the questions below are achieved:
  • Is the service available enough?
  • Is there enough capacity?
  • Is it secure enough?
  • Is it continual enough?

These two key terms (utility & warranty) are relevant because they feed the main purpose of Service Design. The main purpose of this lifecycle phase is the design of the new or changed service. The service design is delivered through a Service Design Package that meets the utility and warranty requirements through service composition.

In this second section, I will begin to draw the parallels to identify two integration points between service design and project management.

  • One, service composition is similar to a work breakdown structure. Both look at the decomposition of a service or a project into its constituent (and smaller) components.
  • Two, service design relies on the concept of balanced design. This is indicative of managing three design components of a service that are functionality, schedule and resources. This concept is similar to the project management trilogy of scope, time and budget. Both methods require these three items to be in balance otherwise the quality of the service or project is in jeopardy.

The third evaluation point is to understand the service design roles to recognize the boundaries of each responsible party. Then the project manager can drive the value of their role in through managing the needs of the team members to achieve the service design package.  Below are the key roles in service design:

  • Service design manager coordinates the deployment and designs for new or changed services
  • IT Planner produces IT plans that meet the requirements of the business
  • IT Architect designs the required technology component of the solution
  • Service catalog manager produces the service catalogue
  • Service level manager who ensure the service level management are met
  • Various managers for availability, security, continuity and capacity to ensure the solutions meet the service requirements
  • Supplier management oversees the suppliers requirements meet the associated service requirements

The role of the project manager is to provide competent leadership and communication in order to successfully manage the customer, project and teams to enable the service strategy through the service design phase.

Now the fourth point, the project manager can use project artifacts based on the Project Management Body of Knowledge sections that are relevant for service design. Depending on the complexity of the business needs I have identified below a minimum sample of project artifacts to develop the high level service strategy objectives and business case, and these are:

  • Scope Management – deliver a requirements document based on business, operational and management requirements.
  • Budget Management – prepare cost estimates, budgets including investment funding requirements for the services to be designed.
  • Schedule Management- develops the activity definition, sequence and resources required to develop the schedule.
  • Risk Management – to identify risks, analyze the risks and prepare risk responses. A key design output is a business impact analysis.
  • Procurement Management – may be required when considering and external provided service design model. This may include a tendering process to complete the evaluation of the service design model. A service design model may include insourcing versus outsourcing.
  • Integration Management – will be required as noted in ITIL by which designers utilize an integrated design approach to ensure alignment among strategy, activities, stakeholders and the other ITIL lifecycle phases.

In general, key outputs from service design include revisions to strategic plans, technologies, management and process improvements that will be fed into the service transition lifecycle via a formal change management process.

As a reminder, in my first article I distinguished between the two approaches, lifecycle and waterfall, ITIL and project management. The second article focused on the synergies within Service Strategy and project management. To review those blogs the links are noted below:

 Peter Tarhanidis
PA Consulting Group

 

Image References:

http://www.tech-faq.com/itil-processes.html

http://www.trustsystems.co.uk/p-project-management.html

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ITIL Service Strategy and Project Management – a contrast in execution


The purpose of these updates is to continue to show how these two best practices, ITIL and project management provide synergy to improve effectiveness and drive overall maturity for organizations to meet the needs of the business.

In this article I will focus at a high level what service strategy and project management can leverage to drive the synergy between these two approaches to enable the outcome of a service strategy or the development of a business case. This high level evaluation will be based on the three criteria noted below:

  1. Identify the integration points between service strategy and project management
  2. Understand the service strategy and project management roles
  3. Sample project management artifacts to support service strategy

As a reminder, in my previous article I discussed the similarities and differences between ITIL and project management. ITIL is a lifecycle approach utilized to align IT services to the needs of the organization. As opposed to project management which is a waterfall approach defined as a temporary undertaking to deliver a unique goal.

Now let’s evaluate service strategy and project management as these approaches intersect each other they enhance an organizations maturity with the principles of quality management.

The purpose of service strategy as noted by ITIL is to recognize that customers do not buy products as much as they buy the satisfaction of needs. This is accomplished by noting three key objectives.

  • Determine customer and market place needs to align the IT organization to the business via service portfolio management
  • Provide financial management of the services that entails budget, cost accounting, and charge back decisions
  • Reduce the risks associated with the uncertainty between supplier capacity and actual customer needs by employing demand management

The purpose of project management is to provide a disciplined approach to achieve specific goals during a temporary undertaking. Project management in contrast parallels service strategy to the Initiation phase and overlaps across similar key activities that are the integration points.

The initiation phase has an overall objective to determine the scope of the project and ensure there is a well understood business situation. While there are many activities in this phase some of the activities that overlap with service strategy include the analysis of the business requirements for the customer and marketplace needs, a financial analysis of the business requirements and a project charter that defines the overall effort that can be used to underpin the services catalogue.

In general both these phases are critical to success if proper constraints are not identified and implemented correctly that in turn, will jeopardize meeting the business needs. Also note, a high degree of stakeholder management is required to align the business needs between customers, the market place and the IT organization.

To support the service strategy objectives one must consider the roles required to achieve the key activities and ensure the accountabilities are well known. Within service strategy there are four high level roles I will define that include:

  • IT Steering Group – formed to set the IT strategy, priorities, and project selection. The group is comprised of senior business and IT management representatives
  • Service Portfolio Manager – works collaboratively with the IT Steering Group to develop the service offerings based on the organizations capabilities that will be included in the services catalogue
  • Financial Manager – manages the IT services budget, cost accounting and charge back decisions
  • Business Relationship Manager – understands the customer and the business drivers to maintain a positive affiliation between the customer and the IT organization

The role of the project manager is to provide competent leadership and communication in order to successfully manage the customer, project and teams to enable the service strategy.

Now the project manager can use project artifacts based on the Project Management Body of Knowledge sections that are relevant for service strategy. Depending on the complexity of the business needs I have identified below a minimum sample of project artifacts to develop the high level service strategy objectives and business case that are:

  • Scope Management – deliver a requirements document, stakeholder matrix, scope statement and a work breakdown structure to define what will and will not be included in the service portfolio
  • Cost Management  – prepare cost estimates, budgets including investment funding requirements for the services in the  portfolio
  • Schedule Management- develop the activity definition, sequence and resources required to develop the schedule
  • Quality Management – provide the quality baseline, metrics to be used and the improvement plan to drive corrective actions
  • Risk Management – to identify risks, analyze the risks and prepare risk responses

At this check-point of the high level analysis one can begin to see the integration and the use of best practices to support the ITIL lifecycle to achieve its purpose. ITIL benefits from project management because it helps mature the capability to control the resources required by service strategy to define new offerings effectively and efficiently to satisfy the needs of customers.

In my future updates I will continue to delve into each of the ITIL lifecycles and point out the complementary project management approach to create that synergy.

Peter Tarhanidis

PA Consulting Group

Image References:

http://www.tech-faq.com/itil-processes.html

http://www.trustsystems.co.uk/p-project-management.html

Service Management (ITIL) and Project Management – a contrast in execution


Today many IT organizations are redefining their approach to delivery and support of IT of their customers. Some of those IT organizations are adopting a customer oriented approach to meet the requirements of flawless execution of the services customers receive. As a result, IT organizations adopt both Service Management (ITIL) and the use of Project Management to achieve that requirement.

While many of those organizations are maturing in the use of these frameworks and methodologies many IT colleagues question specifically how ITIL and Project management create a synergy. This was raised by a client who was building a Project Management Center of Excellence who wanted to determine how the two complement each other to improve his team’s effectiveness.

At a high level we discussed the need to recognize the differences, similarities and where the complementary approaches exist between ITIL and Project Management.

 

Sources: http://www.tech-faq.com/itil-processes.html & http://www.trustsystems.co.uk/p-project-management.html

First, the key difference noted between ITIL and Project management is the ongoing lifecycle approach of ITIL versus the temporary nature of projects. Expanding on that below is a very high level overview of both ITIL and Project Management.

  • ITIL is a best practices for a lifecycle approach to align IT services to the needs of the organization by relying on 26 processes and functions across the five lifecycles known as Service Strategy; Service Design; Service Transition; Service Operations; and Continuous Service Improvement
  • Project management is defined as a temporary undertaking to deliver a unique goal for an organization. It is constrained by time, scope and budget. According to PMI’s PMBOK there uses five processes such as Initiation, Planning, Execution, Control and Monitor and Close across 9 bodies of knowledge that span across the management of Budget;  Supplier; Risk; Procurement; Human Resources; Schedule; Quality; Communications and Integration.

ITIL and Project Management are similar in two ways.

  • One, they both leverage a process based approach to fulfill an organizations goals and allow teams to align and collaborate to develop a customer orientation;
  • Two, both frameworks enable the use of tools to manage their processes while driving transparency, control and verification that improve delivery and organizational accountabilities.

Overall, both ITIL and Project Management add value to drive quality management systems for organizations to achieve compliance requirements, which for this client was an important criteria to establish their PMO, or improve an organizations maturity to meet business needs.

With this context in mind, the client was now ready to discuss how ITIL and Project Management complement each other in the use of best practice approaches. There are two scenarios to establish whether there is a PMO to run large initiatives or alternatively leverage Project Management practices across the ITIL lifecycle.

In my future updates I will delve into each of the ITIL lifecycles and point out the complementary Project Management approach to create that synergy.

The purpose of the updates will be to continue to show how these two best practices provide synergy to improve effectiveness and drive overall maturity for organizations to meet the needs of the business.

 Peter Tarhanidis – PA Consulting Group

 

 

 

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