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1 LEAN ITSM METHODS IN LEAN TIMES • SEARCHCIO.COM

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Maturing YourITIL Strategy

Lean ITSMMethodsinLeanTimes

As IT shops continue to look for ways to cut costs,increase efficiency and improve service, many turn to IT ServiceManagement frameworks for guidance. Learn how to adoptor advance your use of ITSMpractices to streamline ITand build an efficient, service-oriented organization.

Information Technology

ManagementService

ITIL can bemoreeffectivewhen usedwith other processmethodologies,like Six Sigma, PPMand ISO 20000.Learn how toleverage amixofmethodologies.

MANY IT SHOPS are reaping the benefitsof using a variety of IT Service Man-agement (ITSM) process methodolo-gies in conjunction with the IT Infra-structure Library (ITIL). Methods suchas Six Sigma, project and portfoliomanagement (PPM) and ISO 20000can help companies improve cus-tomer satisfaction, increase produc-tivity and provide more value to thebusiness in a shorter time frame.Here is a closer look at how each of

these other process methodologiescan complement the ITIL framework

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Complement ITILWithOtherMethodologiesBy Karen Guglielmo

in an organization:

� Six Sigma: Six Sigma is all aboutmeeting the needs of the customer,eliminating defects and improving thequality of processes, with metrics toshow progress. Using Six Sigma inconjunction with the ITIL framework,companies can more effectivelyachieve the long-term goal of ITIL—continual service improvement—anddeliver better service to the endcustomer.“Six Sigma is all about the out-

comes,” says Gary Gack, owner andprincipal consultant of Process-Fusion.net, a consulting and trainingcompany. “The tendency of ITIL is tosay, ‘Build it and they will come andthings will get better.’ Six [Sigma]focuses on the outcome and can showmeasurable benefits sooner.”Wachovia, a Wells Fargo company,

is using Six Sigma with the ITIL frame-work. The company’s production man-agement technology group recentlycompleted a project around produc-tion releases, working with an internalSix Sigma green belt. The issue thegroup set out to solve was IT’s difficul-

ty with telling its customers how longtheir requests would take; instead, theIT shop was averaging response timesand offering a blanket statement ofthree weeks to complete all projects.This solution was not efficient, pro-ductive or accurate.“We needed a better production

release arm to our organization toreview all service requests in thequeue,” says Paul Ruppel, lead pro-duction systems consultant atWachovia. “We had to get managersin place and review processes,resources and times and communi-cate to our customers that have arequest in flight a date for productionof their request.”Ruppel and his IT team leveraged

ITIL and Six Sigma to create bettertimelines for project requests, stan-dardize duplicate process requestsand better communicate projecttimelines to their customers.

� ISO 20000: ISO 20000 is a globalstandard that was created in 2005 todefine the more technical aspects ofan ITSM system. It was created tosupport ITIL and the Microsoft Opera-tions Framework. ISO 20000 actuallyincorporates all of the ITIL ServiceSupport and Service Delivery process-es in its standards for accreditation.In addition, it utilizes three other man-agement system processes of itsown—business relationship manage-ment, supplier management and infor-mation security management.The ISO 20000 standard recently

has seen increased interest, accordingto experts and IT professionals. It’s ashorter set of standards—34 pages,vs. ITIL’s five books containing thou-sands of pages of guidelines—and

written in technical terms that manyIT organizations can easily compre-hend.“ISO 20000 helps you narrow the

field to just must-do’s,” says HeatherStrickland, a strategist in the office ofthe chief technology officer at Spec-trum Health, an integrated healthsystem inWestern Michigan. “ISO20000 helps you focus.”IT at Spectrum Health already uses

the IT Infrastructure Library and isaiming to adopt ISO 20000 in thenear future. “ITIL and ISO 20000 arecomplementary toward each other,”Strickland says. “In addition, our hos-pital understands the certificationaudit world—making ISO 20000 aneasier sell.”At the Maricopa County Attorney’s

Office in Arizona, IT Division Chief AlLucas manages the ITIL initiatives in

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“ISO 20000 helps younarrow the field to justmust-do’s. ISO 20000helps you focus.”—HEATHER STRICKLANDstrategist, Spectrum Health

his IT shop and is also personally cer-tified in ISO 20000. “I got certified sothat I would know more about whatthe auditors would be looking for,”Lucas says. “It also helps us focus onwhat we should be doing and how weas an IT organization can help thebusiness.”

� Project and Portfolio Manage-ment:Most companies of a certainsize already have PPM processes inplace to govern the way they prioritizetheir project workloads. Many of thesesame companies are also using ITIL tostreamline processes and create bet-ter standards for delivering services tothe business.As companies become more mature

in their ITIL processes, they’re seeingthe benefits of using formal PPM prac-tices to manage their service offer-ings. For instance, mature ITIL shopsthat use service portfolio manage-ment (SPM) and have service catalogscan leverage their PPM processes toformally manage service rollouts, vs.just projects.“IT organizations are now saying, ‘I

understand services and now need adisciplined way to make decisions,’”says Jack Probst, an executive con-sultant at Pink Elephant, an ITSM con-sulting company. “And these compa-nies are re-spinning PPM to makedecisions relative to services now, notjust projects.”Many experts consider PPM the

execution arm of SPM. The two work-ing together allow companies to focus

on the entire lifecycle of the service.

No matter what process methodol-ogy you choose to use with your ITIL

framework, remember that they’re allgeared to the same goal: improvingservice delivery to the customer. Onechallenge to be aware of is the ten-dency for companies to create armedcamps.“Each camp [Six Sigma, ISO 20000,

ITIL] has their own flag, their ownteam and are trying to get people onthe same page,” Gack says. “Justremember that [these processmethodologies] are not in conflict, butshould instead be complementary.”�

Karen Guglielmo is executive editor of SearchCIO.com. Write to her at [email protected].

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“IT organizations arenow saying, ‘I under-stand services and nowneed a disciplined wayto make decisions.’And these companiesare re-spinning PPM tomake decisions relativeto services now.”—JACK PROBSTexecutive consultant, Pink Elephant

mailto:[email protected]

Learn howWacho-via and BarclaysGlobal Investorsenacted ITIL bestpractices to tackleculture and changemanagement issues.

WHAT ARE THE enterprise-level benefitsof an investment in IT InfrastructureLibrary (ITIL) best practices—espe-cially in today’s economy? How aboutcost savings in the millions and theability to improve efficiencies andeliminate redundant procedures?These are the types of benefits real

companies, likeWachovia, a WellsFargo Company, and Barclay’s GlobalInvestors, are experiencing using ITIL.Both companies have implementedthe ITIL framework during the pastyear and seen significant cost savingsand improvements in productivity.Wachovia, which completed a

merger withWells Fargo in January, is

currently using version two of ITIL,along with some integration practicescontained in ITIL V3. Following theITIL processes of incident, change,problem, configuration and serviceportfolio management has saved thecompany approximately $20 millionthrough improved processes and effi-ciencies, according to Paul Ruppel,production systems consultant lead atWachovia. Similarly, Barclay’s GlobalInvestors is immersed in ITIL V2 butimplementing some parts of V3.Here’s a look at how these two lead-

ing financial services organizations areleveraging ITIL best practices to cutcosts, improve service delivery to thebusiness and increase IT transparency.

GETTING STARTEDAs with most companies, Wachoviabegan its implementation of the ITILV3 framework by focusing on problemand incident management as subsetsof the change management process.This allowsWachovia’s IT organiza-tion to more easily determine the rootcause of an issue and how it affectsrelated business systems.

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“We have a categorization of eventsthat gives each incident a number andcriticality level to the business—wecall this RTO, or return to operation,”Ruppel says. “So when an eventcomes into the operations center, weknow the RTO and incident number.”Ruppel and his team determine theseverity level and number by review-ing issues such as how much moneyis lost per minute or second andwhether the outage or incident willprevent trades from going throughthe system.“There is an immediate value to

incident, problem and change man-agement,” says Nilesh Patel, director

of infrastructure service managementat Barclays Global Investors. Mostorganizations begin with these threeprocesses because they are wellunderstood and tooling is mature,making them easier to implementand helping the business see a quickreturn because of better incident han-dling, faster response time and greateravailability of systems.

USING A SERVICE CATALOGOne of the key objectives Patel washired to accomplish was to implementa service catalog that would allowboth IT and the business to view all



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Tools to Optimize ITIL ProcessesTHERE ARE VARIOUS tools available to manage specific tasks outlined in the ITIL frame-work. For instance, Wachovia uses a product from Tideway Systems Inc. for auto-mated resource discovery. The tool offers profiles that show the types and versionsof software on specific machines. It allows IT to say, “I know what you already have,and now let me tell you what else we have to offer you,” says Paul Ruppel, produc-tion systems consultant lead atWachovia.Ruppel and his team also hope to use this tool in the future to dynamically update

their configuration management database (CMDB). “For example, when a newmachine comes across the wire, [the product will tell us] what the machine does,who owns it and who supports it,” Ruppel says. “This functionality gives our opera-tions center a view of the network and IT the ability to understand what type ofpackages each customer should have.”Barclays Global Investors uses the Service Catalog Solution from newScale Inc. to

handle its service catalog and service portfolio management processes.The investment firm also uses Hewlett-Packard Co.’s Service Manager suite for

all other ITIL-related tasks, including incident management, change management,configuration management and reporting. —K.G.

the services offered by IT, their costsand delivery times. “The objective wasimproving IT transparency,” Patel says.“We actually had a good handle on

internal IT costs but wanted a standardway to communicate the cost, deliverour services and deepen our under-standing of the drivers of IT cost,” heexplains. Part of that was becauseBarclay’s Global Investors’ IT depart-ment had been growing rapidly in thelast few years in line with its business.Implementing a service catalog was

also instrumental to improving IT effi-ciencies at Wachovia.“When we started our service cata-

log, we had all different types of offer-ings that we had to break down toindividual service tasks,” Ruppel says.“We worked with the QA departmentto write test scenarios for each taskand incorporate repeatable processes.”The most recent version of

Wachovia’s service catalog has ninecategories of services broken downinto at least 300 individual tasks. Itprovides customers who submit a re-quest with end-to-end expectations ofhow long it will take to execute a taskand what the costs are, as well as theability to track the deliverables againstpromised service-level agreements.

CULTIVATING AN ITIL CULTURECulture management is a critical com-ponent of the success of any ITIL im-plementation. ITIL success is depend-ent on changing people’s behaviorsand the way they do their jobs.

That is certainly true at Wachovia,which in addition to its ITIL efforts hasbeen in the midst of a corporate merg-er withWells Fargo. That will meanbest practice integration issues, suchas those involving data collection forthe configuration management data-base (CMDB). “When we addWellsto our configuration database, we’llneed to start gathering and holdinglarge amounts of data from their linesof business,” Ruppel says. “This couldbe an issue with workflow and cultureshift for [Wells Fargo employees].”But the CMDB will ultimately help

the IT team, which, like other parts ofthe organization, experienced staffcuts after the merger. Ruppel says heand his team hope to use ITIL’s config-uration management process and“identify repeatable processes thatare low-level and mundane and auto-mate or send them out,” which wouldhelp themmanage the additionalworkload with fewer staff members.Ruppel adds that he also plans to cre-ate intelligent forms for monitoringrequests that can be plugged into aCMDB and to automate responses.At Barclay’s, Patel knew the steps to

take to best formulate an ITIL culture,having come from an ITIL implemen-tation at DHL two years ago. “There’sa cost to implement ITIL initially,” saysPatel, and it’s not just tools. “You haveto hire and train the right people andchange the way you do business.” �




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Copyright © 2009 Novell, Inc. All rights reserved. Novell and the Novell logo are registered trademarks and Making IT Work As One is a trademark of Novell, Inc. in the United States and other countries.

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The goal of anyITSMprogram is notpurchasing the toolor implementing theprocesses. Instead,it’s about creating anorganizational cultureto embrace thesenew best practices.

SUCCEEDING WITH AN IT Service Man-agement (ITSM) or IT InfrastructureLibrary (ITIL) implementation oftenmeans changing processes and theway people do and think about theirjobs—in short, changing the organiza-tional culture. And culture manage-ment, like any type of change manage-ment, has several big obstacles.The three biggest obstacles CIOs

face when addressing organizationalculture issues are executive support,old school mentality and understand-ing that ITSM and ITIL are not proj-

ects, but journeys, according to ITSMpractitioners and consultants.

LACK OF EXECUTIVESUPPORTA lack of executive sup-port is the biggest obsta-cle, according to experts.

Without it, users won’t buy in to theprograms.“If you don’t have executive support,

run away,” says Jack Probst, executiveconsultant at Pink Elephant, an ITSMconsulting company. “Getting ITIL upand running is not a grass-roots effort.”Successful executive support raises

awareness for efforts and validatestheir importance to the organization.That was the case at the MaricopaCounty Attorney’s Office in Arizona,where IT Division Chief Al Lucas gotthe second-in-command executiveand the steering committee to buyinto ITIL when he first implementedit eight years ago.Lucas and his team secured the

support of business executives to leadthe strategy and let his IT team devel-op what was needed to support it. He

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took on the role of ITIL evangelist/champion not only in Maricopa Coun-ty, but across the state as well. “I’mtrying to get the state to look at ITILthe same way they looked at PMI,” hesays, referring to the state’s invest-ment in certification from the ProjectManagement Institute Inc.With the help of itSMF Internation-

al, Lucas set up a statewide ITSMseminar to get companies—both pri-vate and public—re-energized overITSM and ITIL. This has helped bringawareness of ITIL to more organiza-tions, as well as his own. “Overall,it’s been a great success,” Lucassays.Those who don’t have executive

support before starting an ITSM orITIL implementation can tee off withprocesses in a sphere where they have

authority and buy-in already, explainsTroy DuMoulin, an associate vicepresident at Pink Elephant.

“Be successful with quick imple-mentations, and then you can start toshine,” he says. “At some point, some-one at the top will begin seeing thatsomething new is going on, and they’llstart giving that group or individualthe opportunity to sell up.” That can


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Maturing YourITIL Strategy Six Layers of Resistance to Change

ACCORDING TOEli Goldratt, business leader, author and creator of the “Theory ofConstraints,” there are six layers of resistance to change that must be overcomebefore a new idea or initiative can be accepted and adopted by an organization.

1Disagreement about the problem.

2Disagreement about the direction of the solution.

3 Lack of faith in the completeness or maturity of the solution.

4 Fear of negative consequences generated from the solution.

5 Too many obstacles on the road to reach the solution.

6 Lack of knowledge about what to do.

“If you don’t haveexecutive support,run away.”—JACK PROBSTexecutive consultant, Pink Elephant


Chapter 3

then lead to executive support andopportunities to sell across and downthe organization.Another tactic is to bring in experts

to present an external view to theexecutive team on the importance ofthese process standards. An externalview often helps executives realizethat the status quo is no longeracceptable in the industry, DuMoulinsays.“ITSMmethodologies can only

be-come more formalized and moreim-portant when the executive teamrealizes the risk of not having it,” hesays.

THE NAYSAYERSChanging the way peopledo work is very personal.People have been doing acertain job a certain way

for a long time—and have often beenrewarded for their successes. Thenalong comes a team saying there’s away to do it much better. You can seewhy you’d get pushback.“You need to celebrate quick wins

and tell the stories of success,” Probstsays. “Make it personal and don’t talkdollars and cents.”Many employees consider ITIL and

other ITSMmethodologies just anoth-er business trend. That’s still the caseat the Maricopa County Attorney’sOffice, after eight years. “I would saytwo-thirds to three quarters of mytechnical team is still on board, andthe rest think of it as the fad of the

month,” Lucas says. To address this,he’s investing in ITIL training for hisstaff and working with others tounderstand the concept of IT as a

service to the business.In many cases, employees who are

resistant to change try to stall theproject (see “Six Layers of Resistanceto Change”). They might say, “We’vebeen doing this for years; we don’tneed ITSM.We’ll just get a tool.” Or,“We’ve heard there are a lot of flawsin those ITIL books; we should waittill they’re perfected.”Knowledge should be your first

tool used here, DuMoulin advises.A thorough communication plan thatexplains what ITSM is, what theimplementation process will look likeand how it will affect people’s currentjobs helps defuse misinformation andgets stakeholders on board beforepotential negativity has time to take

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“ITSM methodologiescan only becomemore formalized andmore important whenthe executive teamrealizes the risk ofnothaving it.”—TROYDuMOULINassociate VP, Pink Elephant

hold. “A plan to change behaviorsshould be on your communicationsplan, not tools and process design,”DuMoulin says.Consider getting human resources

involved in this messaging, since itinvolves people and their work prac-tices. Otherwise, appoint a capableperson in IT to manage communica-tions.Companies should also have ITSM

kickoff meetings; however, DuMoulincautions, you shouldn’t spend all theITSM communications budget upfront. “Plan your communicationsback to when you’re going to hit a dryperiod, with no quick wins or releas-es,” he says. “It’s better to spend yourcommunications budgets mostly inthe middle or toward the end of theimplementations.”

IT’S A JOURNEY,NOT A PROJECTA big challenge to suc-cessfully implementingITIL and other ITSM

methodologies is that you can’tdeclare a win when it’s over—becauseit’s not a project with a start and enddate. ITIL and other ITSMmethodolo-gies are about the journey. “Projectsare understood as only temporary innature,” DuMoulin says.Once Lucas’ team completed the

implementation of the incident andproblem management processes ofITIL, “I think they thought it was fin-ished,” he says. But that wasn’t the

case—it was only the beginning. Theprocesses still needed to be managedand measured over time.To address this issue, Lucas

refreshed his own ITIL V3 training inan effort to better understand the ITInfrastructure Library and also to beable to drive people in the right direc-tion.People need to know that ITSM and

ITIL continue to be important to theirteams and the executives. If the man-agement team takes ITSM off itsscorecard, things go back to the waythey used to be. ITSM and ITIL can’tsurvive in that type of environment,Probst cautions. �


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Maturing YourITIL Strategy 3

“A big challenge tosuccessfully imple-menting ITIL and otherITSM methodologiesis that you can’t declarea win when it’s over—because it’s not a projectwith a start and enddate. ITIL and otherITSM methodologiesare about the journey.


Some ITIL imple-mentations stallonce IT gets incident,problem and changemanagement undercontrol. Here’s whatITIL practitionersadvise to keepdriving benefitsandmaturity.

MANY ORGANIZATIONS DECLARE them-selves “immersed” in their IT Infra-structure Library (ITIL) implementa-tion because they have succeededwith incident management, problemmanagement and change manage-ment. And those are the places mostorganizations start. But for those look-ing to mature their ITIL strategy, thefocus on continuous improvement is aharder road to tread.“IT doesn’t get a lot of chances to

prove itself to the business, but withincident, problem, change, all of a sud-den IT looks like they have their acttogether,” says George Spalding, asenior analyst at Pink Elephant, an ITILconsultancy in Burlington, Ontario.“They’re handling the incidents better,problem management is intact, andchanges aren’t producing as manyissues.“Then they stop,” he says.Future ITIL implementations often

don’t produce the same quick resultsor have the same immediate ROI tojustify the effort. That can discouragethe team, slowing momentum andstalling additional implementation ofITIL principles.How can IT get over the implemen-

tation hump? Here, practitionersshare their ideas for moving your ITILstrategy forward, from specific ITILpractices to attack next to general tipsfor keeping momentum going.

� Engage the entire team in theeffort to find solutions for continuousimprovement, such as settingstandards. “Some experts say projectimplementation relies on people,

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Next Steps toMaturingYour ITIL StrategyBy Kristen Caretta

process and technology—I say it’speople, people, people, process andtechnology,” Spalding says. “You can,in essence, buy the technology andthe process flows in ITIL, but you can-not buy the hearts and minds of thepeople to run it.”Often, IT gets stuck in an imple-

mentation rut because no one isencouraging further improvement.Harry Butler, director of infrastructureat Elbit Systems of America LLC,began an ITIL implementation eightyears ago—the start of which wasa struggle getting his team onboard.“Standardization is tough because

you can bring five networking guys ina room and give them all the sameproblem and they will come up withfive different solutions,” Butler says.But by listening to each idea andworking collaboratively, “we makeeveryone a part of coming up withthe standard solution.”On top of collaboration and em-

ployee involvement, Butler says healso had good luck sharing the resultsof the wins with the group—how thewidely recognized industry best prac-tices were saving time and money.

� Set incremental goals and takeself-assessments to track yourprogress. ITIL is a process of contin-ual improvement. By approaching itincrementally and building a solidfoundation, the business has a chanceto digest the changes and benefits—further encouraging future implemen-

tations.“The days of large, big-bang rollouts

are gone,” says Robert Stroud, interna-tional vice president of the IT Gover-nance Institute and IT Service Man-

agement and IT governance evangelistat CA Inc. “You need to split yourservice management implementationsup into small, sharp pieces to showvalue to the business quickly.”In Butler’s experience, documenting

services, developing standard proce-dures and taking on some of the low-hanging fruit allowed his team tomove systematically through the ITILbest practices.“We set a maturity goal for our-

selves after the first two years andbrought in Pink Elephant to assess ourprogress,” Butler says. After receivingan ITIL maturity score and somedirection and guidance, he and histeam dived in again. “We knew where

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“Some experts sayproject implementa-tion relies on people,process and technol-ogy—I say it’s people,people, people, processand technology.”—GEORGESPALDINGsenior analyst, Pink Elephant

we needed to improve and where wewere succeeding, so we kept at it.”From that point, they brought in

the consultants biannually for similarassessments to ensure continual

improvement. And in between formalITIL maturity assessments, Butler sayshis team took advantage of itSMFInternational’s self-assessment tool toregularly track progress.

� Establish a service catalog.Aservice catalog is a steppingstone orfoundation to take on other ITILprocesses because it clearly establish-es what services IT performs, stan-dardizes the processes for deliveringthose services and shows the busi-ness how much they cost.The benefits of implementing a

service catalog include less duplica-

tion of efforts, better cost transparen-cy of services and increased produc-tivity within IT.“The business wants services like

accounts payable, new employee on-boarding, full desktop support, etc.,”Spalding says. “And they want toknow exactly what they are getting forX amount each month and why it’snecessary.”

� Then pursue configurationmanagement. Once it has created aservice catalog, IT needs a way tomanage and monitor all those servicesto maintain the new level of servicethe business now expects. Enter con-figuration management.This requires a new tool—a config-

uration management database—anda lot of work, but it’s an importantnext step in the evolution of your ITILstrategy. Configuration managementis usually broken into four tasks:

1. Identification of all ITcomponents.

2. Control and managementof each component.

3. Status maintenance.4. Data verification.

Configuration management, with-out a service catalog, is almost impos-sible to implement, according toSpalding. “Chances are you weren’table to prove the ROI for a configura-tion management implementationfrom incident, problem, changeprocesses alone,” he says. “But now

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“The days of large,big-bang rollouts aregone. You need to splityour service manage-ment implementationsup into small, sharppieces to show valueto the business quickly.”—ROBERTSTROUD, international VP,IT Governance Institute

that you’ve sat down with the busi-ness side and laid out these SLAs,you have to keep your promises.”

� Pursue financial managementand even service portfoliomanagement. IT financial manage-ment is another likely next step,according to Stroud. “One of theproblems IT typically has is businessaccountability because there is nofinancial transparency,” he says.Knowing how much IT is spending

alongside the mission-critical servicesidentified in the service catalog canhelp in financial planning. For exam-ple, it can help determine the costs ofrisk assessments and business impactassessments for disaster recovery andbusiness continuity and what ischarged in the recovery of variousservices.Service portfolio management,

which provides an overarching viewof IT across the entire service life-cycle, takes service management tothe highest level. It requires a matureITIL culture and implementation ofmany of the practices describedabove, in order to look at the tactical,strategic and operational demands onIT, how they integrate and where thebottlenecks are.In so doing, it enables IT to move

beyond reactive operations to focuson proactive measures to deliverconsistent service to the business. �

Kristen Caretta is the associate editor forSearchCIO-Midmarket.com. Write to her [email protected].

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Lean ITSM Methods in Lean Timesis produced by CIO/IT Strategy Media,

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www.novell.com

http://www.novell.com/solutions/business-service-management/

http://www.novell.com/rc/docrepository/public/14/basedocument.2009-04-01.8873088337/Novell_Business_Service_Manager_Flyer_en.pdf

http://www.novell.com/media/media.php?media=bsm-for-the-virtualized-data-center

http://www.novell.com/media/media.php?media=bsm-for-the-virtualized-data-center

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