itservice management maturity assessment model

Making Leaders Successful Every Day

November 5, 2010

Introducing The Forrester IT Service Management Maturity Assessment Modelby Eveline Oehrlichfor Infrastructure & Operations Professionals

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© 2010, Forrester Research, Inc. All rights reserved. Unauthorized reproduction is strictly prohibited. Information is based on best available resources. Opinions reflect judgment at the time and are subject to change. Forrester®, Technographics®, Forrester Wave, RoleView, TechRadar, and Total Economic Impact are trademarks of Forrester Research, Inc. All other trademarks are the property of their respective companies. To purchase reprints of this document, please email [email protected]. For additional information, go to www.forrester.com.

For Infrastructure & Operations Professionals

ExEcuTIvE SuMMAryDifficult economic conditions have put the strain on all companies to find ways of reducing cost while at the same time improving services and competitiveness. IT is playing a very strong role in assisting organizations in innovating new ways to generate revenue and improve return on investment (ROI). After a year of seeing deep cuts to infrastructure and operations (I&O) budgets, businesses are returning to a growth agenda. We see that many organizations are dedicating as much as half of their I&O budget to new initiatives and supporting capacity expansion for business growth. The challenge is that the I&O department’s ability to deliver quality services that empower its business customers is directly related to its overall organizational and process maturity. Forrester’s IT Service Management Maturity Assessment Model is designed to evaluate key operational and process activities and provide a snapshot of maturity as a baseline which then should be used to create improvement plans.

TAblE OF cONTENTSThe ITSM Maturity Assessment Model

An ITSM Maturity Assessment Model To Help you Identify your current State

The ITSM Journey requires Four concrete Steps

ITSM Assessments Help You Achieve A Best-Practice Implementation

Get Started With 11 Process Attributes And Their Interdependencies

Evaluate IT Infrastructure And Operations Within The context Of business Needs

Use The ITSM Maturity Model To Maximize The Value Of Your ITIL Initiatives

conduct A Self-Assessment by Scoring And Establishing your current Maturity

rEcOMMENdATIONS

Don’t Just Conduct An Exercise: Create An Actionable Road Map

Supplemental Material

NOTES & rESOurcESIn developing this report, Forrester drew from a wealth of analyst experience, insight, and research through review of existing frameworks as well as advisory and inquiry discussions with end users and vendors across industry sectors.

Related Research Documents“The Evolving Infrastructure And Operations Organization”April 21, 2010

“Market Projections For 2010: IT Management Software”February 4, 2010

“Service catalog — your Prerequisite For Effective IT Service Management”October 28, 2009

November 5, 2010

Introducing The Forrester IT Service Management Maturity Assessment ModelA Framework For Evaluating The I&O Organization’s IT Service Management Processesby Eveline Oehrlichwith Onica King, Jean-Pierre Garbani, lindsey Kempton, and rüdiger Krojnewski

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Introducing The Forrester IT Service Management Maturity Assessment Model For Infrastructure & Operations Professionals

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THE ITSM MATURITY ASSESSMEnT MODEL

Infrastructure and operations organizations are in a state of flux, either considering or actively moving to new organizational models.1 Why this change? With continued pressure to do more with less, I&O professionals are increasingly accountable for improving service-level performance.

A recent Forrester survey identified IT process models as the most common model chosen for future I&O organizations (see Figure 1).2 Why? These IT process models, usually based on ITIL, can reduce costs, overcome traditional silos, and better align with how work is done, making it easier to ensure consistent and reliable service across multiple environments. However, moving too quickly with a highly complex installed base and people who think in terms of technology could potentially cause more problems than it solves. So how and when do you make the move to a more service-centric department?

Figure 1 IT Shops Are Moving Toward Process-based Models

Source: Forrester Research, Inc.57719

Don’t know

Other

Hybrid

Business areas

Technologies

IT processes38%

34%44%

33%30%

24%

17%25%

16%

6%2%

10%

6%7%

6%

1%2%

0%

Overall (N = 135)5,000-19,999 employees (N = 44)20,000+ employees (N = 50)

Base: IT professionals at enterprises and SMBs worldwide at �rms that have recentlycompleted or are currently going through a reorganization of their I&O department

Source: Q4 2009 Global IT Infrastructure And Operations Organizational Structures Online Survey

“What new organizational structure did you adopt/are you in the process of adopting?”

© 2010, Forrester research, Inc. reproduction Prohibited November 5, 2010


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An ITSM Maturity Assessment Model To Help You Identify Your Current State

Moving to a process-driven, service-centric department can be tough — and it’s going to be a journey. Forrester’s ITSM Maturity Assessment Model is a self-assessment tool designed to help you identify your current IT service management (ITSM) maturity level. This assessment also helps you identify your desired process maturity end state. Specifically, it helps I&O professionals:

· Isolate useful baselines. Understanding the current maturity level of the IT organization with regard to its operational processes helps create a starting point for planning and implementing an ITSM initiative. Since the primary focus of ITSM is the application of best practices (founded in ITIL) to make IT a more effective, efficient, and competitive service provider, any company considering ITSM should assess its current state.

· Identify gaps and develop remediation plans. By using the same method across multiple process areas, this assessment allows an organization to understand the overall maturity of processes in conjunction with each other. Because IT is a continuum of interdependent processes, an ITSM assessment will provide details on the maturity of each process. If you combine this with an understanding of process dependencies gaps, you can establish a plan to improve each process and the entire value chain.

· Prioritize and quantify investment validation. By understanding the current maturity level of a particular process (or processes) it’s possible to determine the amount of investment needed to move the process to the desired maturity stage.

· Prepare or audit compliance. If companies aim for meeting some internal or external compliance criteria such as ISO 20000, assessments can help reveal the gaps or prove compliance.

The ITSM Journey Requires Four Concrete Steps

The Forrester ITSM Maturity Assessment Model evaluates where an organization is located on its ITSM journey. In addition to a clear understanding of the current state relative to best practices, I&O professionals can take these concrete and prioritized steps for improvement:

· Find low-hanging fruit. Every VP of operations we have worked with has been able to find simple, immediate activities that cut costs and improve operational efficiency. An assessment can identify simple process changes such as incident categories, incident routing, and incident closure that require little investment.

· Prioritize the next round of activities. Is it better to push defined processes to the next level of optimization, or should an organization focus on processes with a very low maturity level? A maturity assessment presents these tradeoffs in stark relief, which helps the IT group and decision-makers come to an educated decision going forward.



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· Communicate the IT organizational progress, or lack thereof. A maturity assessment will identify those areas where IT has optimized, and conversely, those areas that need to emphasize action planning to address deficiencies.

· Identify short-term and longer-term initiatives. While there is a myriad of process improvements that require minimal financial or time investment, other processes are much more involved — such as implementing end-to-end configuration management systems. IT can use the findings from the assessment to determine what opportunities haven’t been addressed and then plot the future for longer-term initiatives.

ITSM ASSESSMEnTS HELP YOU ACHIEVE A BEST-PRACTICE IMPLEMEnTATIOn

For organizations new to ITSM, an assessment provides an understanding of gaps and key issues. From there, you can address identified top priorities that speak to IT service effectiveness. An ITSM assessment is a necessary first step in achieving ITSM and best practice implementation because it determines current processes and service maturity. From there, you can determine a desired future state and develop a clear road map for implementation to reach the next maturity stage.

For organizations already entrenched in ITSM, it’s important to remain flexible and continuously evaluate yourself, understanding your strengths and weaknesses. Regular assessments are quality management initiatives that provide the IT organization with facts and information that it can use to make decisions for improvement.

Get Started With 11 Process Attributes And Their Interdependencies

Forrester identifies 11 attributes that indicate process maturity (see Figure 2). Focusing on the descriptive rather than implementation-specific details makes these inputs collectable with limited effort. This approach provides a good indication of potential improvement areas and the order in which the associated activities should be executed. This is possible because the attributes build on each other incrementally, so you must proceed in sequential order. An example that illustrates these dependencies is the integration between incident management and change management. If both processes are implemented, it will help an organization identify incidents caused by changes and identify areas to support overall improvement to the change management process.



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Figure 2 Forrester’s Process Maturity Attributes


DescriptionProcess is de�ned Is there a way of doing things that has been thought through beforehand? If so, is that

true for all activities or only for those considered to be the most important ones? Or, isthe worst case true: You ask three people about the process and they know threedi�erent process de�nitions?

Process isdocumented

In theory, a process may be de�ned but not documented, i.e., it is passed from colleagueto colleague through the spoken word. More likely we would expect that a de�nedprocess is documented in written format and that this is true for all activities. In somecases, the documentation may only be available for the most important activities.

Process documentsare centralized

Sometimes, it is not only that a process is documented, it may be even documentedmultiple times. Even worse, those multiple de�nitions may not be ordered, so it isunclear which one is authoritative. Ideally, there is a central instance of processdocumentation.

Process training isformalized

How do people know about processes, changes to them, and what this all means to theirdaily work? Do you have a formal maintenance process for your process, so that requiredtraining is provided to everybody who needs it, or do you have some schedule, for newhires, for instance, but no formal plans for process updates?

Process owner isde�ned

With your process de�ned, documented, and properly administered, whom do you lookto if something goes wrong? Who receives the applause at the end of the year wheneverything went well? In other words, who is responsible, and even more important, does that person, and everyone else, know?

Process goals arede�ned

Are the goals to be achieved within the process named? Are they unambiguous? Are allgoals treated this way or only a few of them? Do you discuss undocumented goals at year-end or other scheduled performance reviews? Can goals and their achievements bequanti�ed?

Process ismeasured

With the process goals de�ned, the actual measurement should be a natural activity.Sometimes we do see measurements (and reporting) of metrics that have no matchinggoals. This does not necessarily indicate a wrong measurement, but may in fact indicatethat your goals are not complete — or that you measure and report things that may notreally be relevant.

Process metricsare reported

Are all process metrics reported? Is the process quality (target and actual) transparent?

Process ismandatory

If the process is not followed, will each occasion be treated as a violation? Will the reasonbe evaluated, and if necessary, the deviation from standard sanctioned? Where required, will changes to the process be made to complete it?

Process isautomated

How many of the activities in the process have to be done manually, even thoughautomation is possible in principle? This question is looking at e�ective automation, i.e.,if a tool is implemented but manual work is done on a regular basis to achieve resultsthat should have been achieved by automation, consider the automation at best asincomplete.

Process interfacesare automated

Most processes — if not all of them — interface with others. Some of these interfacingactivities are about data and information exchange. In an ideal world, all interfacingactivities would be automatic, or at least automated, as manual intervention is thebiggest source of surprise.



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Evaluate IT Infrastructure And Operations Within The Context Of Business needs

To understand the context in which the I&O department operates — including the goals and strategies for both the business and IT — you need to: 1) integrate the feedback from the ITSM assessment; 2) identify potential skills gap; and 3) further develop a plan that addresses the specific and unique needs of the business. Forrester’s ITSM Maturity Assessment Model incorporates the ITIL v3 Process Maturity Framework (PMF) to facilitate an integrated business and IT view. It enables you to measure the maturity of your service management processes as a whole according to five distinct dimensions:

· Vision and steering: The overall direction as it relates to the role and position of the IT infrastructure and operations department within the business; the objectives and goals of the IT infrastructure and operations department in relation to realizing that vision.

· Process: The procedures needed to achieve the goals and objectives. Processes are a standard set of activities designed to accomplish a specific goal.

· People: The skills and abilities needed to perform the processes.

· Technology (tools): The supporting IT management tools and infrastructure needed to enable the processes to be carried out.

· Culture: The behavior and attitude required in relation to the role of IT infrastructure and operations within the business.

USE THE ITSM MATURITY MODEL TO MAxIMIzE THE VALUE OF YOUR ITIL InITIATIVES

The main objective of this ITSM assessment is to assess and plan your maturity in the selected ITSM areas. The final score is an accurate assessment of your organization’s ITSM maturity and therefore a strong indicator of your organization’s ability to demonstrate value from ITIL-related initiatives. When conducting the assessment, remember to:

· Complete due diligence before you engage. It’s imperative that you understand and can articulate the drivers, purpose, and goals of the assessment in order to bring key stakeholders and sponsors on board. This ITSM assessment focuses on 11 areas that are key process or functional areas. It’s essential to have the process or functional owners participate in the assessment.



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· Set aside time and resources to do it thoroughly. Choose carefully when identifying a stakeholder to complete the assessment. It must include those who understand the current process and can truthfully respond to the questions. Avoid stovepipes and silos as much as possible. The assessment should benefit the service consumer; therefore, all groups participating in the process should be assessed. Typical participants include the service desk manager, operations manager, change manager, and configuration manager. Many times the effort is led by an already existing ITSM manager.

Assessments take time and effort. Use the work and outcomes to support the organization’s management and business challenges.

Conduct A Self-Assessment By Scoring And Establishing Your Current Maturity

For the maturity model to work, it must measure each component in the same way. Forrester based its evaluation scale on a derivative of the IT Service Capability Maturity Model (CMM) and defines Initial, Repeatable, Defined, Managed, and Optimized maturity levels for both overall process and ITSM (see Figure 3).



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Figure 3 Forrester Process And ITSM Maturity level definitions


Process maturity levels3-1

Level 1Initial/ad hoc

Level 2Repeatablebut intuitive

Level 3 De�ned process

Level 4Managedand measurable

Level 5Optimized

Vision andsteering

• Minimal fundsand resourceswith little activity

• Resultstemporary, notretained

• Sporadic reportsand reviews

• No clearobjectives orformal targets

• Funds andresourcesavailable

• Irregular,unplannedactivities,reporting, andreview

• Document andagreed formalobjectives andtargets

• Formallypublished,monitored, andreviewed plans

• Well-funded andappropriatelyresourced

• Regular, plannedreporting andreviews

• Clear direction with businessgoals, objectives,and formaltargets,measuredprogress

• Effectivemanagementreports activelyused

• Integratedprocess planslinked tobusiness andIT plans

• Regularimprovementsplanned andreviewed

• Integratedstrategyinextricablylinked withoverall businessplans, goals, andobjectives

• Continuousmonitoring,measurement,reporting,alerting, andreviews linked toa continualprocess ofimprovement

• Regular reviewsand/or audits fore�ectiveness,efficiency, andcompliance

Process There is evidencethat the enterprisehas recognizedthat the issuesexist and need tobe addressed.There are, however,no standardizedprocesses; instead,there are ad hocapproaches thattend to be appliedon an individual orcase-by-case basis.The overallapproach tomanagement isdisorganized.

Processes havedeveloped to thestage wheresimilar proceduresare followed bydi�erent peopleundertaking thesame task. There isno formal trainingor communicationof standardprocedures, andresponsibility isleft to theindividual. There isa high degree ofreliance on theknowledge ofindividuals, andtherefore, errorsare likely.

Procedures havebeen standardizedand documentedandcommunicatedthrough training.It is mandated thatthese processesshould befollowed; however,it is unlikely thatdeviations will bedetected. Theproceduresthemselves arenot sophisticatedbut are theformalization ofexisting practices.

Managementmonitors andmeasurescompliance withprocedures andtakes action whereprocesses appearnot to be workinge�ectively.Processes areunder constantimprovement andprovide goodpractice.Automation andtools are used in alimited orfragmented way.

Processes havebeen refined to alevel of goodpractice, based onthe results ofcontinuousimprovement andmaturity modelingwith otherenterprises. IT isused in anintegrated way toautomate theworkflow,providing tools toimprove qualityand effectiveness,making theenterprise quick toadapt.



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Figure 3 Forrester Process And ITSM Maturity level definitions (cont.)




Level 3 Defined process


Level 5Optimized

People • Loosely de�nedroles andresponsibilities

• Self-containedroles andresponsibilities

• Clearly definedand agreed roles andresponsibilities

• Formalobjectives andtargets

• Formalizedprocess trainingplans

• Inter- and intra-process teamworking

• Responsibilitiesclearly de�ned inall IT jobdescriptions

• Business-alignedobjectives andformal targetsactivelymonitored aspart of theeveryday activity

• Roles andresponsibilitiespart of an overallcorporate culture

Tech-nology(tools)

• Manualprocesses or afew speci�c,discrete tools(pockets/islands)

• Many discretetools but a lackof control

• Data stored inseparatelocations

• Continuous datacollection withalarm andthresholdmonitoring

• Consolidateddata retained andused for formalplanning,forecasting, andtrending

• Continuousmonitoring,measurement,reporting, andthresholdalerting to acentralizedset of integratedtoolsets,databases, andprocesses

• Well-documentedoverall toolarchitecture withcompleteintegration in allareas of people,process, andtechnology

Culture • Tools- andtechnology-based,and driven by astrong activityfocus

• Product- andservice-basedand driven

• Service- andcustomer-orientedwith a formalizedapproach

• Business-focusedwith anunderstandingof business goals,strategy, andvision

• A continualimprovementattitude, togetherwith a strategicbusiness focus

• An understandingof the value of ITto the businessand its role withinthe business value chain

Process maturity levels3-1



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ITSM maturity levels3-2

Incidentmanage-ment(IM)

The incidentsare detectedand recorded.Some follow-upwork withcustomer isdone.

Incidents areclassi�ed, withindividualscollaborating forinitial support.

Initial supportprocesses thatincludeinvestigation,resolution,recovery, andescalation are inplace.

Automation is inplace for incidentfollow-up andintegration withPM.

Proactive IM isdone. RCA resultsare constantlyassessed as inputfor continuousserviceimprovements(CSI).

Problemmanage-ment(PM)

Individualscollaborate ontheir own onproblem resolutionand on causeanalysis (RCA).

“Tool-less,” reactive,but assigned workto resolveproblems and doRCA

Escalationprocedures arede�ned, under-lying systems arediverse, andprocesses areuni�ed acrossteams.

PM is integratedinto IM, CM, RM,and AvM. Tools arewell-deployed.

Proactive PM isdone. RCA resultsare constantlyassessed as inputfor continuousserviceimprovements(CSI).

Changemanage-ment(CM)

No commonprocess,unauthorizedchanges mayoccur.

Most changesfollow someinformal process.CRs are not alwayscomplete.

Complete processis de�ned,includingcategorization,prioritization,emergencyprocedures, andchangeauthorization.However, processis bypassed.

The process isfollowed, impactassessmentshappenconsistently,changes causingdisruption arenearly extinct.

Peer reviewshappen to ensurethe use of bestpractices. Businessand IT changemanagement arealigned.

Con�gu-rationmanage-ment(CfgM)

Separateinventories for HWand SW aremaintainedwithout an overallprocess.

Multiple tools andapproaches areused in a non-integrated fashion.Reliance is onindividuals’expertise.

Processes andtools andprocedures arethere and docu-mented, butenforcement andmotivation useare low.

Nearly all areas ofIT are coveredthough CfgM,automation exists,and exceptionanalysis is done.

Con�gMgmt is astrong contributorto CM and RM;also achievedthrough a highlevel ofautomation andreliability of data

Availa-bilitymanage-ment(AvM)

No formal process No plannedapproach towardAvM

Personalaccountability isdocumented.

Proactivemaintenance is awell-plannedelement of theAvM plan. Notfollowing theprocesses is nottolerated.

Best practices foravailability areregularlydiscussed andenhanced throughpeer groupdiscussions andother externalsources.





Level 5Optimized



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ITSM maturity levels3-2

Capacitymanage-ment(CapM)

No responsibilityde�ned, processworks informally

Capacity ismanaged onindividual systembase, done thoughi.e., expertjudgment

Capacity modelinghappens andfollows a de�nedprocess. Predictionis not working100%.

Prediction workswell, and capacity-related problemsalmost never occur. Automationis high.

Fullsynchronization ofcapacity plans withbusiness demandmanagement

IT serviceconti-nuitymanage-ment(ITSCM)

No formal process No plannedapproach towardITSCM

Testing is done asa standardprocedure.

Discontinuity is aseparate incidentclass, businessrequirements orcontinuity areconstantlyreevaluated andrealigned.

BCM and ITSCM arestrongly alignedprocesses. Thesupply chain andmajor vendors areincluded in theITSCM plan.

Securitymanage-ment(SecM)

Control objectivesdocumented in asecurity policy

Security controlsdocumented asprocedures

Procedures have been implemented.

Procedures andsecurity controlsare tested andreviewed.

Procedures andsecurity controlsare fully integratedinto acomprehensiveprogram.

Financialmanage-mentfor IT(ITFM)

IT investments arejusti�ed on an adhoc basis. Reactiveand operationallyfocused budgetingdecisions occur.

The need for aselection andbudgeting processis communicated.Compliance isdependent on theinitiative ofindividuals in theorganization.

The IT budget isaligned with thestrategic IT andbusiness plans. Thebudgeting and ITinvestment se-lection processesare formalized,documented, andcommunicated. ITsta� membershave the expertiseand skills nece-ssary to developthe IT budget andrecommendappropriate ITinvestments.

Responsibility andaccountability forinvestmentselection andbudgeting areassigned to aspeci�c individual.Budget variancesare identi�ed andresolved.

Industry goodpractices are usedto benchmarkcosts and identifyapproaches toincrease thee�ectiveness ofinvestments.Analysis oftechnologicaldevelopments isused in theinvestmentselection andbudgeting process.

Releasemanage-ment(RM)

Releases arecreated anddeployed based on individual decisions.

There is no con-sistent approachacross projectteams on how tobuild, test, anddeploy releases.

A process isde�ned andfollowed. Trainingis typically notcentrally enforced.

Postimplementationproblems aretracked; typically,releases matchuser expectations.

System life-cyclemanagement isintegrated into RM,peer reviews aredone.

No responsibilityde�ned, processworks informally

Partial reporting,not business-driven (i.e., contentde�ned by IT)

Resp. de�ned, SLAdev. processesexist, reviews hap-pen, proceduresto �x are informal.

SLM incorporatedinto new servicesdesign

Continuous re-evaluation (i.e., SLAwill go down ifcriticality goesdown)





Level 5Optimized

Servicelevelmanage-ment(SLM)



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r E c O M M E N d A T I O N S

DOn’T JUST COnDUCT An ExERCISE: CREATE An ACTIOnABLE ROAD MAP

With your process gaps highlighted and maturity level defined, Forrester recommends that you now dive deeper into the areas causing the most pain in quality, efficiency, and cost. The next step would be to create a road map that determines strategies and details on how to improve maturity in the weak areas. It might be necessary to add additional roles or shift some roles in the organization. And finally, you’ll need a plan for how to assemble the IT management tools that support and automate the processes, based on your maturity.

The typical ITSM assessment steps are:

1. Assemble a project team. This team should have the appropriate skills necessary to complete a successful project engagement. It’s helpful to have a project lead and include owners of key process areas such as the service desk, change advisory board, operations manager, and possible service owners.

2. Conduct a project kickoff meeting. This kickoff meeting is between the Forrester consulting team and your project team. Here a project plan and timeline will be defined and developed. This plan will allow the documentation, planning, and tracking of activities and results of the engagement.

3. Gather the data and details. during this phase the project team will gather all necessary details about the current environment and the organization’s expectations for the future. The areas to focus on are the service delivery and service support side. Additionally, it’s helpful to gather business strategy, organizational details, and technology plans.

4. Assess the findings. The project team will leverage the ITSM assessment sheet to determine the maturity scores. These details will be the baseline for analysis by the Forrester consulting team.

5. Develop an analysis phase and deliver a road map. If you choose to continue the ITSM assessment project with Forrester, the consulting team will analyze the details with your team, with possible additional questions and conversations, and then deliver a prioritized list of tactical recommendations to improve or mature your IT service management initiative. Additionally, a solution model or road map that focuses on the organization and strategic organizational goals can be developed.



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SUPPLEMEnTAL MATERIAL

Methodology

The Q4 2009 Global IT Infrastructure And Operations Organizational Structures Online Survey was fielded to 163 infrastructure and operations professionals and IT executives worldwide from SMB and enterprise companies. Forrester fielded the survey online from October 2009 to November 2009. Respondent incentives included copies of all research written on the data from the survey.

Exact sample sizes are provided in this report on a question-by-question basis and are not guaranteed to be representative of the population. Unless otherwise noted, statistical data is intended to be used for descriptive and not inferential purposes.

EnDnOTES1 In the Q4 2009 Global Infrastructure And Operations Organizational Structures Online Survey, Forrester

surveyed 163 IT professionals at enterprises and SMBs worldwide and found that 53% of surveyed organizations have undergone a reorganization of their infrastructure and operations (I&O) department in the past five years. On top of that, another 29% are in the process of reorganizing their I&O departments now. Why so much change? See the April 21, 2010, “The Evolving Infrastructure And Operations Organization” report.

2 Source: Q4 2009 Global Infrastructure And Operations Organizational Structures Online Survey.



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