Frank Willems
Groningen12-01-2011
ITSM Sourcing specialization 2010
Directing Sourcing and Services
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Agenda
– Shared Service Centers
– What is directing
– Processmodel for directing
– Roles within the directing organisation
– Learning Task 3
– Questions and answers
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Shared Services
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Definition and goal of a Shared Service Center (SSC)
– We speak about an SSC as supporting processes within an organization on an approximately similar way, are delivered a new, semi-autonomous unit and on the basis of agreements it provides services to other units
– The goal of an SSC is generally to improve the service quality while cutting costs
– SSC versus centralization, service-oriented versus task
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Measures in perspective
Measures at task level:Stopping investments
Orcutting down on currentinitiatives
Measures at a process level:Collaboration and joint investments
Measures at a functional level:Concentration, integration, mergers,
Take-over or outsourcing
Saving potential
Short term(0,5-1 year
Medium term(1-2 years
Long term(2-5 years)
Stopping projects
Cutting down on training and learning
Cutting down on engaging external consultants
System optimazation
Collaboration regarding purchasing, support, etc.
Optimization and standardization of processes
Integration, mergers and concentration
Outsourcing of parts of the organization
Shared Services Centre
Full outsourcing
Capitalizingeffects
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Concentration leads to economies of scale
Internal SSC
Insourcing/External Supplier
Cos
ts
Volume
Efficiency-effects
Economyof Scale
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Are the trends moving up and down?C
osts
Volume
Startingpoint
Impact Scale reached Impact Scale
reached
Complexity Costs will increase
Yes, to take maximum concentration and complexity there will be need for new solutions.
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Potential services for a SSCFacility Management
- mailroom
- copying and printing service
- archive
- purchase
- catering
Customer Service
- sales service
- telephone customer service (call center)
Administration
- financial administration
- pensions administration
- Payroll
Personelmanagement (HRM)
- recruitment and selection
- Personnel administration
- training
ICT Services
- application development
- Helpdesk
- Management and operation
- Training
- Real Estate Management
- management buildings
- Security management
- Sales and marketing
- ad coordination
- direct mail
- sales
- Tele ordering
- Order administration
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Variants of Shared Services
supportfunctions
Management
primairy functions
Shared SupportProcess
Shared Business Process
Sharedback-offices
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The components of Shared Services
How to manage the environment, where the process is cut and who is responsible for what processes?
What is the proper organization, which staff and how are we ready for the future?
How are technology, process and organization knotted together?
The core of the service
Kantoorinformatiesystemen
Bedrijfsinformatiesystemen
TechnischeInformatiesystemen
Functioneel
Specifiek
Generiek
Fysiek
ICT infrastructuur componenten
User Support enApplicatie Management
SystemManagement
ICT infrastructuurlaag
ICT functionaliteit
NetwerkManagement
ICT Functie/processen
Kantoorinformatiesystemen
Bedrijfsinformatiesystemen
TechnischeInformatiesystemen
Functioneel
Specifiek
Generiek
Fysiek
ICT infrastructuur componenten
User Support enApplicatie Management
SystemManagement
ICT infrastructuurlaag
ICT functionaliteit
NetwerkManagement
ICT Functie/processen
SSC 1SSC 1
SSC 3SSC 3
SSC 2 SSC 2
SSC 4SSC 4
Opstellen van Business
Cases
Opstellen van Business
Cases
Inrichtenvan
processen
Inrichtenvan
processen
Managenvan
projecten
Managenvan
projectenGovernanceGovernance
RegieRegie
ArchitectuurArchitectuur
Processes
OrganizationSystems
Customers
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Name the change components
Ontwikkelenmaatwerk
Ontwikkelenmaatwerk
Beheerinfrastructuur
Beheerinfrastructuur
Beheer &draaien
pakketten
Beheer &draaien
pakketten
Support/HelpdeskSupport/Helpdesk
OntwikkelenmaatwerkSSC 1
BeheerinfrastructuurSSC 3
Beheer &draaien
pakkettenSSC 2
Support/HelpdeskSSC 4
Response, context and vision of SSC's clear and design direction activities
Target focus on service domains
ICT-governance
Governance
RegieRegie ArchitectuurArchitectuur
Opstellen
van BusinessCases
Opstellen van Business
Cases
Inrichtenvan
processen
Inrichtenvan
processen
Managenvan
projecten
Managenvan
projecten
Opstellen van Business
Cases
Opstellen van Business
Cases
Inrichtenvan
processen
Inrichtenvan
processen
Managenvan
projecten
Managenvan
projecten
Make Governanceagreements
Professionalizedemand
ICT-governance
Governance
RegieRegie ArchitectuurArchitectuur
Transformdemand management
ICT-governance
-Governance
RegieRegie ArchitectuurArchitectuur
SSC 1SSC 1
SSC 3SSC 3
SSC 2 SSC 2
SSC 4SSC 4
Opstellen van Business
Cases
Opstellen van Business
Cases
Inrichtenvan
processen
Inrichtenvan
processen
Managenvan
projecten
Managenvan
projectenGovernanceGovernance
RegieRegie
ArchitectuurArchitectuur
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An Change approach for Shared Services
Change idea
….
Intervention-oriented communication about plan and implementation
Support by Change help desk
Assessment by Change board
Consultation with Sounding board groupCIOClient …
Characteristics of interaction
Characteristicsof employees
Characteristics ofproducts, pro-
cesses & structure
Clients, Governance &
suppliers
History
Rea
son
Environm
ent
View on change Kick off
Change analysis + Culture scan
DD MM YYYY
Change goals
Aligning structure and processes
Organizing control and and prepairing SSC implementation
Contracting and realizing SLA’s
Culture change and competence development
Learning to collaborate
Inter-ventionsAnd (re) planning
Reconsider-Ing
goals
Measuringprogress
Plateau 2
Inter-ventionsand (re)planning
Reconsider-ing
goals
Measuringprogress
Plateau 1
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Example of a Target Efforts Network
More innovative power and sharing knowledgeMore innovative power and sharing knowledge
Higher efficiency pension processesHigher efficiency
pension processes
Better quality ICT services and
products
Better quality ICT services and
products
75% Reuse pension processes
and systems (FO & BO)
75% Reuse pension processes
and systems (FO & BO)
20% Faster market
introductionpension products
20% Faster market
introductionpension products
30% Cheaper implementation
processes
30% Cheaper implementation
processes
20% Less duplication20% Less duplication
60% Knowledge pension products
more accessible
60% Knowledge pension products
more accessible
95% Reliable service in
accordance SLA
95% Reliable service in
accordance SLA
MissionMission
GoalsGoals
Measurable
goals
Measurable
goals
Projects
and activities
Projects
and activities
Mission Develop a Shared Service Center that is a
knowledge-and information-engine around pension products, by sharing forces to deliver better innovation
and deliver at lower cost high quality products and services to
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What is directing?
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What is directing
Directing is about linking demand and supply.
You must know what the customer (commisioner and the user)
wants, then translate it into a solution with the
necessary resources (sources) to
achieve and then arrange
that the services
is provided.
And to be able tot do that to you really need the right competences. The director will lead
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The three columns of the enneahedron
Beheren en exploiteren ICT services
Beheren en gebruiken informatievoozieningen
Ontwerpen en exploiteren
bedrijfsvoering
Implementing
Ontwerpen en plannen ICT service
Ontwerpen en plannen informatie voorziening en regie
Ontwerpen en plannen bedrijfsvoering
Organizing
Bepalen strategieICT service
Bepalen strategie informatie voorziening en regie
Bepalen strategie bedrijfsvoering
Aligning
ServiceDirectingManagement
Business
Directing
Supplier organization
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Beheren en exploiteren ICT services
Beheren en gebruiken informatievoozieningen
Ontwerpen en exploiteren
bedrijfsvoering
Implementing
Ontwerpen en plannen ICT service
Ontwerpen en plannen informatie voorziening en regie
Ontwerpen en plannen bedrijfsvoering
Oganizing
Bepalen strategieICT service
Bepalen strategie informatie voorziening en regie
Bepalen strategie bedrijfsvoering
Aligning
ServiceDirectingManagement
The three rows of the enneahedron
View and governance
Planning, organization and projects
Implementation andoperational service delivery
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Management and exploitation IT and FM services
Management and use facilities
Use and exploitation
Implementing
Design, build and implement IT and FM services
Design and implementation facilities and information supply and control
Design and implementation
Organizing
Specify IT and FM services
Specify strategy facilities and information supply and control
Specify strategyAligning
ServiceDirectingManagement
A framework for managing sourcing
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ImplementingManagement and exploitation IT and FM services
Management and use facilities
Use and exploitation management
Design, build and implement IT and FM services
Design and implementation facilities and information supply and control
Design and implemantation management
Organizing
specify IT and FMservices
specify strategy facilities and information supply and control
specify strategy and management
Aligning
ServiceDirectingManagement
Cmmi process areas in the 9 grid model
Monitoring quality
Performance mgt and analysis
Project Monit. & Control
Supplier mgt.
Change management
Purchase & tenders
Governance
Account Mgt.
Strategy & Collaboration
Service Portfolio management
Architecture Management
Demand Management
Demand & failure settlement
Account &Demand mgt.
Management
Contract & Supplier mgt.
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Processmodel for directing
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– There are three primary process chains in the directing organisation:
– Innovation Management, develop new services
– Change management, implementation of changes to existing services (doing projects, etc.)
– Service management, performance and direction on the existing services
– The processes are derived from the CMMi-ACQ model. By process chain KPIs (Key Performance Indicators) set.
Process chains directing organisation
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ImplementingManagement and exploitation IT and FM services
Management and use facilities
Use and exploitation management
Design, build and implement IT and FM services
Design and implementation facilities and information supply and control
Design and implemantation management
Organizing
specify IT and FMservices
specify strategy facilities and information supply and control
specify strategy and management
Aligning
ServiceDirectingManagement
The chain shows three dominant lines
Monitoring quality
Performance mgt and analysis
Project Monit. & Control
Supplier mgt.
Change management
Purchase & tenders
Governance
Account Mgt.
Strategy & Collaboration
Service Portfolio management
Architecture Management
Demand Management
Demand & failure settlement
Innovation
Managing changes
Service continuity
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Explanation process model demand/supply
– Organization is focussed on matching present and future customer IT service needs and demands with (contracted) services from supplier(s).
– The total organization should be seen as a logistic process (coordination between supply and demand). Each activity in this logistic process must be indicated either as a coordination of daily business or as a change in services rendered or as an innovation in services being supplied
– The activity is then attended to by the appropriate person/office in the logistic process and brought to a good result
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Process model detailedSupplyDirectingCustomer/
Demand
Delivery of services
Incident management
Measurement en analysisOpera-tional
meeting
Tactical meeting
-
Change process
Innovation
Request for change of Product orservice
Request forNew product
or service
complaints within SLA
Management of complaints
Results customer satisfactionsurvey
Monitoring KPI’s
complaints outside SLA Improvement
services / solve incidents
Reports
Structural problems
Proposal for impovement supplier
Proposal for renewal supplier
Proposal for improvement
Proposal for renewal
Governance
Service portfolio mgt
Architecture mgt
Procurement & tender
Strategy & coorporation
Monitoring KPI’s
Proposal for renewal
reports
Strategic
Tactic
Operational
Strategical
meeting
Project monitoring control& Monitoring KPI’s
Proposal for improvement
complaints Service & incidents
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Bounderies of IT supplySupplyDirectingCustomer/
Demand
Delivery of services
Incident management
Measurement en analysisOpera-tional
meeting
Tactical meeting
-
Change process
Innovation
Request for change of Product orservice
Request forNew product
or service
complaints within SLA
Management of complaints
Results customer satisfactionsurvey
Monitoring KPI’s
complaints outside SLA Improvement
services / solve incidents
Reports
Structural problems
Proposal for impovement supplier
Proposal for renewal supplier
Proposal for improvement
Proposal for renewal
Governance
Service portfolio mgt
Architecture mgt
Procurement & tender
Strategy & coorporation
Monitoring KPI’s
Proposal for renewal
reports
Strategic
Tactic
Operational
Strategical
meeting
Project monitoring control& Monitoring KPI’s
Proposal for improvement
complaints Service & incidents
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Innovation process (1/2)
Start
Global AnalysisInitiation Detail Analysis
Contracting
3 Agree terms and contract with supply
Inventarisation of customer requirements
1a Develop customer requirements
1b DevelopProduct requirements
1c Analyse and validate requirements
Prepare Project
2a Estimate planning and forecast
2b Develop projectplan
2c Get commitment for the project
go
No go
Input
Service portfolio management
Input
Governance
Architecture management
Output
Functional Design
Input
Strategy & colaboration
Output
Business case with P.I.D
Input
Procurement and tenderprocess
DemandmanagerDemandmanager
Projectmanager
ContractmanagerSuplly mgt
Output
Contract
go
No go
go
No go
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Innovation process (2/2)
Productintegration Verification
5a Prepare verification
5b Testing
5c Check selectedproducts
6a Prepare productintegration
6b Ensure interface-ompatibility and deliver the product
The innovation process
Input Developed
products
Decision making about testgroup
& test environment
Input
Testresults
Output
Acceptationproducts
Demandmanager
Contractmanager
Demandmanager Contractmanager
Suplly mgt
Develop technical solutions
4a Select product-component
4b Develop the design
4c Implement the product design
Projectmanager
Supply mgt
Input
Contract &Functioneel Design
Management
Preparation & test ImplementationDevelopment
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Change process
Start
The change process
Initiation
Management
Alternative analysation and choice of solutionReq. management
1 control requirements
2 Evaluate alternative solutions
Demandmanagement
Contractmanagement
Configuration mgtProjectplanning
3 Develop projectplan
4 Track and manage changes
Product integration
5 Prepare product-integration
6 Ensure interface- comptability and produce solution
DemandmanagerDemandmanagement
SupplyContractmanagement
Development Implementation
No go
go
No go
go
Analysation
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Incident process
Start
ICT Management stage
1st line support
Administration
Classification
Incidententry
Incident solved
Yes
No2nd line support
Design and specifications of the solution
Solution or escalation
IntakeFrontoffice
2nd line support
1 RegistrationClassification
call
2 Relationship call
10 Decline call
11 Declineuser
5 Escalation
6 Analyse Incident 1st line
support
8 Solve Incident 1st line
support
3 Inform coördinator
4 Take Care
existing incident
Measureexceeding
Supply mgt
7 AssignIncident
9 Manage progress
ja
Nee
ja
self
The incident management process
Supply Front Office Supply Back Office
Deeper investigation incident
Distribution and administration of activities and solution
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Roles within the directing organisation
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Management and exploitation IT and FM services
Management and use facilities
Use and exploitation
Implementing
Design, build and implement IT and FM services
Design and implementation facilities and information supply and control
Design and implementation
Organizing
SpecifyIT and FMservices
Specify strategy facilities and information supply and control
Specify strategyAligning
ServiceDirectingManagement
The areas plotted on the IT management framework
Sourcingmanagement
Project mgt and collaboration
mgt
Account andPortfolio mgt
Contract mgtand performance
monitoring
SourcingServices
Information management
FunctionalApplication
mgt
Goverance and architecture
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Directing roles in Governance and Architecture area
– The Director (CIO) will carry the ultimate responsibility for overall information and ICT chain and is sparring partner for the management of ICT-related issues
– The information architect designs and implements organisation-wide information architecture (applications, hardware, networking, datacom)
– The business architect designs the business processes and frameworks and enter the correct application of the process frameworks. Together with the ICT architect, a risk analysis in case of changes in processes or applications will be made
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The information management area
– The Information Manager advises on solutions in the field of ICT for business to better support in achieving their objectives. It is a long term vision and planning and should develop a framework for planning and assessment of renewal and modification of information systems.
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Account and Portfolio mgt areas
– The ICT consultant advises organisation-wide, sought and unsolicited, on solutions in the field of ICT business in order to better support their goals using ICT solutions
– The Information Analyst focuses on analyzing and advising on how the information flows within the customer organisation can be supported by the current system landscape
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Project mgt and collaboration mgt
– The Project manager executes projects in the field of ICT (from the initiation tot the transfer to the existing organization)
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Contract mgt and performance monitoring
– The Contract Coordinator focuses on the creation and implementation of the supplier strategy, mapping product / vendor combinations and building and maintaining existing relationships
– The Purchaser focuses on the procurement of services, and if products and people at the right price, performance levels, and compliance are buyed with contractual agreements is that can be monitored
– The Demand Manager focuses on developing and maintaining relationships with external ICT suppliers and on the steering / leading the team in - and outside staff responsible for the daily operation (including Service Desk and Field Services)
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Sourcing management area
– The Service Level Coordinator is responsible for monitoring and managing the delivery of agreed ICT products and services by external parties as defined in Service Level Agreements on quality, availability and cost.
– The Project & Change Coordinator, will direct on all new and ongoing projects and (big) changes regarding the ICT systems (internal and external capacity, content, planning, budget, priority)
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Sourcing Services area
– The keyuser provides the functional management of one or more applications tailored to the specific business processes.
The key point of the users are from a group of users to use a specific application and the application of this application within a sector or management.
– The process specialists support the key user for the translation of the process of sector specific management or automated applications. They are experts in the field of process and work within the framework of the business architect suggests.
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The Functional application mgt area
– The Functional Application Manager provides the functional management of one or more applications tailored to the specific business and focuses on analyzing and advising on how the information flows within the organisation can be supported by ICT applications. He/She will also support in testing and implementation of changes.
– The Technical Application Manager is responsible for the availability and performance of the ICT systems
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Roles plotted on directing modelSupplyCIOCustomer/
Demand
Delivery of services
Incident management
Measurement en analysisOpera-tional
meeting
Tactical meeting
-
Change process
Innovation
Request for change of Product orservice
Request forNew product
or service
complaints within SLA
Management of complaints
Results customer satisfactionsurvey
Monitoring KPI’s
complaints outside SLA Improvement
services / solve incidents
Reports
Structural problems
Proposal for impovement supplier
Proposal for renewal supplier
Proposal for improvement
Proposal for renewal
Governance
Service portfolio mgt
Architecture mgt
Procurement & tender
Strategy & coorporation
Monitoring KPI’s
Proposal for renewal
reports
Strategic
Tactic
Operational
Strategical
meeting
Project monitoring control& Monitoring KPI’s
Proposal for improvement
complaints Service & incidents
ICT consultant
Information analist
Business architect
Functional application mgt
Application mgr
Purchaser
Contract manager
Superuser
Projectmanager
Informationmanager
Information architect
Project and change coordinator
Director(CIO)
Demand manager
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Some principles for directing competences
– 1st generation sourcing and directing asks for CMMI level 2
– 2nd generation asks for CMMI level 3
– 3th generarion asks for new competences in managing colaboration and CMMI level 4
– 4th generation asks for personal leaderschip and at least CMMI level 4
– Directing competences are professional projectmanagement, managing change management, account management and supplier management all at the desired CMMI level
StrategicLeverage
Bottleneck Routine
Business ProcesOutsourcing
Backofficeoutsourcing
Outsourcingworkplace mgt
Businessdevelopment
Shared ServiceCentersDataCenter
outsourcingFacilitiesoutsourcing
Workinnovation1e generation sourcing 2e generation sourcing
4e generation sourcing
3e generation sourcing
2e generation sourcing
Crowdsourcing
Operationsoutsourcing
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At the end…
– Setting up a directing organisation (the new ICT organisation) is a radical change….use the change colours
– Filling in the roles is changing competences and changing people
– A clear process model will help to implement the directing activities
– Always use the three models; 9 grid, Kraljic and CMMI
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All rights reserved. No part of this presentation may be reproduced or published in any form or by any means without the prior written permission of Twynstra Gudde.
Frank [email protected]
www.twynstragudde.nl