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Strategy, tactics and operations

Organizational development | Case example 12 (solution) | Organizational change | Organizational departmentalization | Sourcing strategy | Deciding what to source | Sourcing structures | Multi-vendor sourcing | Service Provider Interfaces | Sourcing governance |


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Implementation through the lifecycle

Strategic positions are converted into plans with goals and objective s for execution through the Service Lifecycle. The positions are driven by the need to serve specific customers and market space s and influenced by strategic perspectives as a service provider (Figure 7.1). Plan s are a means of achieving those positions. They include the Service Catalogue, Service Pipeline, Contract Portfolio, financial budgets, delivery schedules, and improvement programme s.

Figure 7.1 Strategic planning and control process21

Plan s ensure that each phase in the Service Lifecycle has the capabilities and resources necessary to reach strategic positions. The Service Lifecycle provides clarity and context for the development of the necessary capabilities and resources.

Plans translate the intent of strategy into action through Service Design, Service Transition, Service Operation and Service Improvement. Service Strategy provides input to each phase of the Service Lifecycle (Figure 7.2). Continual Service Improvement provides the feedback and learning mechanism by which the execution of strategy is controlled throughout the Lifecycle.

Figure 7.2 Strategy executed through the Service Lifecycle

Top-down

For any given market space, service strategy defines the portfolio of services to be offered and the customers to be supported (Figure 7.3). This in turn determines the Contract Portfolio that needs to be supported with design, transition and operation capabilities. Lifecycle capabilities are defined in terms of the system s, processes, knowledge, skills and experience required at each phase to effectively support the Contract Portfolios. Interactions between service management capabilities are clearly defined and managed for an integrated and systematic approach to service management. Service design and operation capabilities determine the type of transition capabilities required. They determine the portfolio of service designs and the operating range of the service provider in terms of models and capacities.

Figure 7.3 Service management capabilities driven by strategy

Transition capabilities determine the costs and risk s managed by a service provider. How quickly a service is transitioned from design to operations depends on the capabilities of the service transition phase. Transition capabilities reduce the costs and risks for customers and service providers throughout the lifecycle by maintaining visibility and control over all service management system s and processes. In this manner, transition capabilities not only act as filters but also as amplifiers that increase the effectiveness of design and operation. They interact with service design s to provide new and improved service model s. They interact with operation models and capacity to increase the operational effectiveness of plans and schedules. The net effect is the service level s delivered to customers in fulfilment of contract s.

Customers and service providers both face strategic risks from uncertainties. It is impossible to either control or predict all the factors in a business environment. The risks may translate into challenges or into opportunities depending on alignment between service management capabilities and the emergent needs of customers. Service Strategy requires Continual Service Improvement to drive feedback through the Lifecycle elements to ensure that challenges and opportunities are not mismanaged (Figure 7.4).

Figure 7.4 Feedback and learning driven by Continual Service Improvement

New strategic positions are adopted based on patterns that emerge from executing the Service Lifecycle. This bottom-up development of service strategy is combined with the traditional top-down approach to form a closed-loop planning and control system for service strategies (Figure 7.5). Such feedback and learning is a critical success factor for service management to drive changes and innovation.

Figure 7.5 Closed-loop planning and control system for strategy


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