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Justifying Service Transition

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Service Transition is a key contributor to the service provider’s ability to deliver quality services to the business. They are the delivery mechanism between the work of design, and the day-to-day care delivered by operations. However, the Service Transition processes are not always visible to the customers, and this can make financial justification difficult. When setting up Service Transition, attention needs to be paid to ways of quantifying and measuring the benefits, typically as a balance between impact to the business (negative and positive) and cost (in terms of money/staff resource s) and in terms of what would be prevented by applying resource to any specific transition, such as diverting staff resources or delaying implementation.

Gathering of evidence on the cost of current inadequate Service Transition is a valid and useful exercise, addressing such issues as:

Designing Service Transition

Design of the Service Transition processes and how they fit within an organization are addressed throughout this publication. Useful factors to consider when designing Service Transition are described below.

Applicable standards and policies

Consider how agreed policies, standard s and legislation will constrain the design of Service Transition. Considerations might include requirement s for independence and visible accountability, such as are commonly found controlling financial sector companies or within legislation such as Sarbanes-Oxley (SOX).

Relationships

Other internal support services

In many situations Service Transition must work together with other areas that are transitioning other elements of a business change, such as HR, facilities management, telecoms, production control, education and training. The processes will be designed to facilitate these relationship s.

The aim should be to ensure that ownership for each component of the overall service package is defined and subsequently management responsibility is clear.

Programme and project management

Major transitions may be managed as programme s or project s, and Service Transition will deliver their role within the appropriate umbrella. Clear areas of delineation and collaboration between programmes, projects and Service Transition will be required, and these need to be set out and agreed within the organization. To ensure appropriate transition is delivered, Service Transition staff will be involved in agreeing key programme and project milestones and timelines and ST should be set up to adopt this role. For example if a project is due to deliver a major release at the end of the month, ST must provide sufficient and timely resource s to baseline and release the service package, at the agreed time and according to agreed quality levels.

To be effective, Service Transition needs to take a broader view across projects, combining transitions and releases to make the best use of available resources.

Service Transition will set up and maintain (working through CSI) an approach to dealing with an ongoing influx of tasks (Service Transitions) that must be delivered, scheduling, combining and sharing resources as appropriate. The strategy should seek to establish this role for ST together with the delegated authority and escalation channels that enable it to deliver.

Internal development teams and external suppliers

Communication channels will need to deal with defects, risks and issues discovered during the transition process, e.g. error s found during testing. Channels to both internal teams and external supplier s will need to be identified and maintained.

Customers/users

Communication with customers and user s is important to ensure that the transitioned service will remain focused on current business requirements. The requirements at actual transition may evolve from the needs identified at design stage and communication channels with the customer will be the source of identifying those changes. Effective communication will benefit from an agreed strategic stakeholder contact map (see paragraph 5.3.2). In many circumstances this communication will be routed through service or account management or SLM, but these channels need to be identified and designed into the Service Transition processes also.

Other stakeholders

Other stakeholders will need to interface with ST, and these should be identified for all foreseeable circumstances, including in disaster recovery scenarios, and so liaison with ITSCM should be catered for. Other possible considerations might include:

Budget and resources

The tasks required to deliver Service Transition should deliver an overall net benefit to the organization (or they should be revisited and revised) but nonetheless they do require funding, and the ST strategy should address the source and control of financial provision.

Funding approach

A mechanism for controlling the funding of the transition infrastructure must be established, including:

The costing of transition objective s must be an integral part of design. This applies whatever the funding mechanism may be, and will involve serviced transition and customers working with design. Typically the transition options will be costed and a business risk -based decision reached.

Resources

Similarly to the options and issues faced when considering funding, supply and control of other resource s will need to be addressed within the ST strategy such as:

Test environment management is a major item of expenditure and a significant resource element in many organizations. Under-funding and/or under-resourcing here (either through lack of numbers or lack of requisite skills) can cause very expensive error s and problem s in supporting live services, and have severe detrimental effects on an organization’s overall business capability.

Introducing Service Transition

Experience shows that it is not advisable to attempt to retrofit a new transition ’s practices onto project s under way; the benefits from the improved (and still unproven) practices are unlikely to outweigh the disruption caused by changing horses in midstream. If a particular transition is especially problematical, and it may be relevant to force a change of attitude, then an exception could be justified.

One technique that has worked in organizations is capturing ‘in flight’ initiatives and bringing them into line with the new approach. This involves adjusting projects currently going through design/transition and adjusting their planning to fit in with the new procedure s, typically at acceptance test/go live stage. For this to be successful, conversion strategies form ‘old transition routes’ to the new procedures should be considered, designed (and tested where possible) as part of the design responsibility.

Cultural change aspects

Even formalization of mostly existing procedures will deliver cultural change; if implementing Service Transition into an organization means installing formal processes that were not there before the cultural change is significant. Experience shows that staff working in Change Management, and even those evangelizing change among others, are potentially as resistant to change in their own areas as anyone else.

While it important to focus on gaining the support of Service Transition staff working directly in Service Transition it is equally important that those supporting, and being supported by, Service Transition understand why the changes to procedures are being made, the benefits to themselves and to the organization and their changed roles. The cultural change programme should address all stakeholder s and should continue throughout and after transition, to ensure the changed attitudes are firmly embedded and not seen as a fashion accessory that can be dispensed with after the initial high profile has faded.

Considerably more information on cultural change can be found in Chapter 5.

Risk and value

As with all transitions, decisions around transitioning the transition service should not be made without adequate understanding of the expected risks and benefits. In this specific situation the risks might include:

The risks and beneficial values require a baseline of the current situation, if the changes are to be measurable. Measures of the added value from Service Transition might include:


Challenges, critical success factors and risks

Challenges

The complexity of services across the supply chain is increasing and this leads to challenges for any service provider that implements new services or changes existing services. IT within e-business not only supports the primary business processes, but is part of the primary business processes.

This prime position brings a wide range of challenges to successful Service Transition, such as:


Critical success factors

Service provision, in all organizations, needs to be matched to current and rapidly changing business demands. The objective is to improve continually the quality of service, aligned to the business requirements, cost-effectively. To meet this objective, the following critical success factors need to be considered for Service Transition:


Risks

Implementing the Service Transition practice should not be made without recognizing the potential risk to services currently in transition and those releases that are planned. A baseline assessment of current Service Transitions and planned projects will help Service Transition to identify implementation risks.

These risks might include:

Other implementation risks include:


Service Transition under difficult conditions

In some circumstances, Service Transitions will be required under atypical or difficult conditions, such as:

Clearly, some of these circumstances overlap with continuity planning, and many of the approaches set out in the Service Design publication will be relevant to successful transition in difficult circumstances.

If the difficulties are anticipated, then alleviating measures will be identified and form part of the service package, planning the route through transition within the transition model, as would any foreseen factors likely to influence transition.

It is quite possible, however, that the difficulties will be unanticipated, perhaps due to changed circumstances, and will require ‘on the fly’ adaptation. This section sets out some of the constraining circumstances that might require adaptation, modification or compromise, and elements of approach that would aid success. A key element common to most (if not all) of these situations is having a clear understanding of what will constitute success. When circumstances are difficult priorities are often focused on specific aspects of service, customer base etc. – then to deliver accepted priorities in the constrained circumstances will often require compromises in other areas.

When speed is more important than accuracy or smoothness

In time critical situations, implementation of a new or changed service may be more important than a degree of disruption. This is effectively a risk management decision, and general risk management principles apply. Some of the key factors that assist with delivering success in this context are:

Understanding crisis management can be very helpful in coping and especially understanding that the rules for crisis management are different from those for everyday management. Just being aware of the first two laws of crisis management (after Larry Niven) can help to reassure people that the situation is survivable:

Rule 1: Don’t panic.

Rule 2: A good crisis manager makes decisions instantly and acts on them. If they later turn out to have been correct, so much the better, but speed is often more important than efficiency in a crisis situation.

Success in these circumstances depends on:

Restricted resources

When resource s are in short supply, a key aspect here is deciding what to measure and sticking to that decision and the framework for delivery, e.g.:

Safety critical services and high risk environments

Ever-increasingly, IT service s directly support or actually deliver services on which lives depend, such as hospital services, emergency services call-taking, flood control and aircraft ‘fly-by-wire’. Extra security and foolproof approaches are required, with features such as:

Working with difficult customers

Of course there is no such thing as a bad customer, really, but often there are customers who are unclear of their role as a customer and so act in a way that prevents rather than supports successful implementation. Examples include customers who:

These kinds of situation can often be improved by awareness and education of:


Afterword

This publication is part of the ITIL series that sets out good practice and sound advice for organizations that recognize the importance of Service Management to their overall success.

This publication, like the others, offers sound general advice, but this – in itself – is not enough. That advice must be understood within the context that organization finds itself.

IT service manager s must manage services within the circumstances they find themselves – for some safety will be the pre-eminent concern, others will consider speed, profitability or usability or some other factor as their prime driver. Delivering effective Service Transition is a challenge for all; delivering effective Service Transition in any specific organization requires understanding of the Service Transition principle, and understanding the business supported and the services being introduced, changed or retire d.

This publication has been written to supply a foundation for ITSM professionals to implement solid and effective services to support their customers in their business, and to go on doing that in the longer term.


Appendix A: Description of asset types

Management

Management is a system that includes leadership, administration, policies, performance measures and incentives. This layer cultivates, coordinates and controls all other asset types. Management includes idiosyncratic elements such as philosophy, core beliefs, values, decision-making style and perceptions of risk. It is also the most distinctive and inimitable type of asset deeply rooted in the organization. [The term organization is used here to refer to the enterprise or firm rather than the organization asset type. The most likely manner in which management assets can be partially extracted from an organization is by the poaching of key individuals who were instrumental in defining and developing a particular management information. ] Service Management itself is a type of specialized management asset like others such as project management, research and development, and manufacturing management

Organization

Organization assets are active configurations of people, processes, application s and infrastructure that carry out all organizational activity through the principles of specialization and coordination. This category of assets includes the functional hierarchies, social networks of groups, teams and individuals, and the systems they use to work in alignment towards shared goals and incentives. Organization assets include the patterns in which people, applications, information and infrastructure deploy either by design or by self-adaptive process to maximize the creation of value for stakeholders. Some service organizations are superior to others simply by virtue of organization. For example, networks of wireless access points, storage system s, point-of-sale terminals, databases, hardware stores, and remote backup facilities. Strategic location of assets by itself is a basis for superior performance and competitive advantage

Process

Process assets are made of algorithms, methods, procedure s, and routines that direct the execution and control of activities and interactions. There is a great diversity in process assets, which are specialized to various degrees from very generic management processes to sophisticated low-level algorithms embedded in software applications and other forms of automation. Process assets are the most dynamic of types. They signify action and transformation. Some of them are also the means by which organization and management assets coordinate and control each other and interact with the business environment. Process people and application assets execute them; knowledge and information assets enrich them; applications and infrastructure assets enable them. Examples of process assets are order fulfilment, accounts receivables, incident management, Change Management and testing

Knowledge

Knowledge assets are accumulations of awareness, experience, information, insight and intellectual property that are associated with actions and context. Management, organization, process and applications assets use and store knowledge assets. People assets store tacit knowledge in the form of experience, skills and talent. Such knowledge is primarily acquired through experience, observation and training. Movement of teams and individuals is an effective way to transfer tacit knowledge within and across organizations (Argote 2000). Knowledge assets in tacit form are hard for rivals to replicate but easy for owners to lose. Organizations seek to protect themselves from loss by codifying tacit knowledge into explicit forms such as knowledge embedded in process, applications and infrastructure assets. Knowledge assets are difficult to manage but can be highly leveraged with increasing returns and virtually zero opportunity cost s (Baruch Lev. 2001). Knowledge assets include policies, plans, designs, configurations, architecture s, process definitions, analytical methods, service definitions, analyses, reports and surveys. They may be owned as intellectual property and protected by copyrights, patents and trademarks. Knowledge assets can also be rented for use under licensing arrangements and service contract s

People

The value of people assets is the capacity for creativity, analysis, perception, learning, judgement, leadership, communication, coordination, empathy and trust. Such capacity is in teams and individuals within the organization, due to knowledge, experience and skills. Skills can be conceptual, technical and social skills. People assets are also the most convenient absorbers and carriers of all forms of knowledge. They are the most versatile and potent of all asset types because of their ability to learn and adapt. People assets represent an organization’s capabilities and resource s. If capabilities are capacity for action, people assets are the actors. From the capabilities perspective, people assets are the only type that can create, combine and consume all other asset types. Their tolerance of ambiguity and uncertainty also compensates for the limitations of processes, applications and infrastructure. Because of their enormous potential, people assets are often the most expensive in terms of development, maintenance and motivation. They also are assets that can be hired or rented but cannot be owned. Customers highly value services that enhance the productivity or potential of people assets.

People assets are also resource s with productive capacity. Units of cost, time and effort measure their capacity as teams and individuals. They are mobile, multi-purpose and highly adaptive with the innate ability to learn. Staffing contracts, software agents and customers using self-service options augment the capacity of people assets

Information

Information asset s are collections, patterns, and meaningful abstractions of data applied in contexts such as customers, contracts, services, event s, project s and operations. They are useful for various purposes including communication, coordination and control of business activities. Information assets exist in various forms such as documents, record s, messages and graphs. All asset types produce them but management, processes, knowledge, people and applications primarily consume them. The value of information assets can vary with time, location and format, and depreciate very quickly. Some services create value by processing information and making it available as needed by management, processes, people and applications assets. The criteria of effectiveness, efficiency, availability, integrity, confidentiality, reliability and compliance can be used to evaluate the quality of information assets

Applications

Application s assets are diverse in type and include artefacts, automation and tools used to support the performance of other asset types. Applications are composed of software, hardware, documents, methods, procedure s, routines, scripts and instructions. They automate, codify, enable, enhance, maintain or mimic the properties, function s, and activities of management, organization, processes, knowledge, people and information assets. Applications derive their value in relation to these other assets. Process assets in particular commonly exist inside applications. Applications assets consume, produce and maintain knowledge and information assets. They can be of various types such as general-purpose, multi-purpose and special-purpose. Some applications are analogous to industrial tools, machinery and equipment because they enhance the performance of processes. Others are analogous to office equipment and consumer appliances because they enhance the personal productivity of people assets. Examples of applications are accounting software, voice mail, imaging system s, encryption devices, process control, inventory tracking, electronic design automation, mobile phones and bar code scanners. Applications are themselves supported by infrastructure, people and process assets. One of the most powerful attribute of applications is they can be creatively combined and integrated with other asset types, particularly other applications to create valuable new assets.


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