microsoft powerpoint - ism-service level agreements 6-07

Copyright 2006, Integrated Solutions Management

Service Level Agreements Service Level Agreements --

Friend or Foe?Friend or Foe?

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Integrated Solutions Management

Presentation ObjectivesPresentation Objectives


Understand Service Level Agreement (SLA) Concepts

Review SLA Keys to Success

Provide Usable Concepts, Tools and Techniques, and Best Practices

Answer Questions


Corporate Background / CustomersCorporate Background / Customers


Enterprise/IT TransformationIT/Business Alignment and GovernanceProcess Engineering and AutomationOrganization Change Management

Service/Asset ManagementService ManagementAsset ManagementRelationship Management

Solution ManagementProject ManagementProject Management OfficeSolution Lifecycle Services


Current Reality Current Reality –– Help Desk PerspectiveHelp Desk Perspective


If you do not define whowho you support, then you support everyone

If you do not define whatwhat you support, then you support everything

If you do not define whenwhen you support, then you support all the time


SLA LevelSLA Level--Set Set –– Initial QuestionsInitial Questions


Formal SLA’s in force and updated regularly ?

Working on implementing SLA’s now? Using ITIL?

Types of SLA’s – IT Infrastructure (Network, Server, PC’s), Business Applications (Email, ERP, CRM, etc.), or IT Services ?

Chargeback costs against SLA’s ?

Responsibility for Negotiating ? Measuring ? Modifying ?

Difficulties with SLA’s – Commitment ? Creation ? Measurement ? Modification ?



SLA LevelSLA Level--SetSetService Level Agreement:

An agreement that builds the foundation of a business relationship,

sets the expectations between the service provider and the

customer, and describes the products or services to be delivered,

the single point of contact for end-user problems, and the metrics

by which the effectiveness of the processes are monitored and

improved.(Gartner)


SLA LevelSLA Level--Set Set ---- Brief History of SLA’sBrief History of SLA’s


Started in 1970’s to Cut Costs and Improve PerformanceCentralized Mainframe and TerminalsResponse Times and Mainframe “Uptime”

1980”s – Early 1990’s – SLA’s were Out of Favor Distributed Client/Server, Networked EnvironmentsDifficult to Measure because of Complex Environment and

Immature Processes and Tools

Late 1990’s – Early 2000’s – SLA’s Making a ComebackIT focused on Resource-Specific (Network, Server) Availability

Goals – Quantitative MeasuresBusiness Units want End-to-End Availability and Performance of

Applications supporting Business Processes operating in “e-time” – Qualitative Measures and Business Value



SLA LevelSLA Level--Set Set –– Stages of MaturityStages of Maturity

Chaotic Ad HocUndocumentedUnpredictableMultiple Help DesksMinimal IT OperationsUser Call Notification

Reactive Best EffortFight FiresInventoryInitiate Problem Mgmt Process

Alert and Event Mgmt

Monitor Availability(Uptime/Downtime)

Operational Process Engineering

Service and Account Management

Tool Leverage

Proactive Analyze TrendsSet ThresholdsPredict ProblemsAutomateMature Problem , Configuration /Asset, Change and Performance Mgmt Processes

Service Delivery Process Engineering

Service Define Services, Classes, Pricing

Understand CostsSet Quality GoalsDevelop SLA’sMonitor and Report on Services

Capacity Planning

Business Management

Value IT and Business Metric Linkage

IT/Business Collaboration improves Business Process

Real-Time InfrastructureBusiness Planning

Value Management

Gartner

Level 1

Level 2

Level 3

Level 4

Level 5IT Management Process Maturity Model


Defining IT Services Defining IT Services –– Standard ServicesStandard Services


Personal Service RequestsUsually involve System Access or Install, Move, Add, Change or Remove (IMAC) activities for Hardware and Software componentsGoverned by Standards and Approval PoliciesDefined Workflow, Customer Responsibilities, IT Responsibilities, Service Level Targets, CostsShould set Target of 80% of Requests ordered using Standard Services - Presented to Customers via IT Service Catalog (Intranet)

ITStandardService

Customer View IT View

• Availability• Responsibilities• Pre-requisites• Service Level Goals

• Workgroups• Responsibilities• Staffing/Skills• Tasks - Tools• Service Level Goals


Defining IT Services Defining IT Services –– Enterprise ServicesEnterprise Services


Integrated Services provided to whole Enterprise or to Business Units or Departments

Comprised of end-to-end availability of Business Applications, Hardware/Network infrastructure components, Service/Support Model, Backup/Recovery, Performance Management, etc. to Desktop

Defined Services to support IT/Business Alignment and measure Business Value of IT Organization

IT Service

Definition••••••

IT Service


IT Service Planning and Management

Process

Infrastructure

Components

Business Applications

Enterprise

Business

Units

Critical Success Factors

KPI’s

Roles and Responsibilities

Solution Development /Deployment Processes

Service/Support Model

ITIL Service Delivery

Processes

Customer

Requirements

Disaster Recovery /

Business Resumption

Vendors Information

Security Requirements

Backup and

Restore IT Staff/Skills

Regulatory Compliance

Business

Continuity

Plan

Technology

StandardsGoals and

Objectives

Enterprise Strategic Plan

IT Strategic/Tactical

Plan

Informatio

n

Management

Strategy

IT Systems

Strategy

Asset Management/Total Cost of Ownership

Communications

Measurements and

Metrics

IT Service


IT Service


Service Level Agreements Planning &

Budgeting

Customer Relationship Management

Management Dashboards and Reports

IT Business Value

ManagementEnterprise ,

Application, Technology

Architectures

Service Catalog

IT/Business Alignment

Inputs:

Benefits:

IT Service



SLA LevelSLA Level--Set Set –– SLA ComponentsSLA Components


SLA Purpose and ScopeCustomers, Locations,

Service Coverage

Roles/Responsibilities Customer and Service

Provider

Definition of Terms

Business/Technical Requirements

Application, Availability, Performance, Reliability

Costs, Fees, Penalties

Service Objectives, Constraints, Exclusions

Supported Products, Services Provided

Relationship Management Primary and Mgmt ContactsIssue Escalation/Resolution

Measurements & Mgmt Reporting

SLA Change Mgmt Process

Approvals


SLA LevelSLA Level--Set Set ---- Benefits of SLA’sBenefits of SLA’s


Define and Manage Customer Expectations

Open Communications and Clarify Responsibilities

Baseline Services, Service Levels, and Costs (Service Provider Model)

Align IT and Customer toward Common Business Goals

Justify Service/Support Infrastructure Investment

Build Foundation for End-to-End Services Supply Chain –Customers – IT Organization – Third-Party Vendors

Operate IT as Effective and Efficient Business, Focusing on Consistency and Performance, while Delivering Measurable Business Value


“SLA Don’ts”“SLA Don’ts”


Use SLA’s as Shields, Weapons, or to Squelch ComplaintsSLA must be based on the right MotivesSLA can not foster an “Us against Them” Mentality SLA must foster Relationships that define “What’s Important” in

Business Terms

Use SLA’s as Catch-AllsEnsure SLA’s are not trying to Measure Everything or Measure to

Parameters not in AgreementEnsure SLA’s do not make Process Difficult and Confusing, Causing

Conflicts

Watch the Language Ensure SL’s are not Open-Ended, nor Defined in Technical TermsEnsure SLA does not affect organization each time it tries to Measure

and Report


“SLA Do’s” “SLA Do’s” ---- StrategyStrategy


Understand Customer’s Business Priorities and Service Requirements

Define Standard Services for Personal Information Technology Rqmts

Define Enterprise Services for Enterprise Information Technology Requirements, focused on IT’s Value to the Business

Involve Customers and Key IT Functions in SLA Definition

Link Service Levels to Enterprise Cost Structure, both for Goals and Failures

Develop and Measure SLA’s in Business Terms linked to Desired Business Outcomes

Include Service/Support Organization as Critical Component of IT Technical Infrastructure – Establish and Protect Funding year-to-year to Maintain Service Levels at Agreed-upon Levels

Once Successful, Communicate, Publish and Market IT’s BusinessValue, both Internally and Externally


“SLA Do’s” “SLA Do’s” –– Structure and SystemsStructure and Systems


Develop SLA Leadership, Management Commitment, Governance, Ownership, and Accountability

Instill Common Service Level Beliefs and Values across Organization

Formalize Service Level Planning and Management Process acrossEnterprise -- Automate with Monitoring Tools and Repositories

Develop Service Cost Model for Defined Standard Services – Basis for offering different Levels of Service

Develop Standard SLA Template (80% - 90%), Customize for each Customer and/or Service (If required)

Formalize Key Operational Processes that Support Service Delivery and Customer Support (Incident/Problem, Service Request, Change,Asset/Configuration, Capacity/Performance, Relationship Management)


Moving Forward with SLA’sMoving Forward with SLA’s


Assess Current Situation with SLA’s . . . Friend or Foe ?

Obtain/Confirm Commitment to SLA’s based upon WIN-WIN Model

Define/Validate Customer’s Business Requirements

Develop/Refine Service Management Strategy, Standard Service Offerings, and Enterprise Services

Develop/Refine Automated Service Level Planning and Management Process and Measurement Repositories

Develop/Refine Service Management Process Infrastructure

Develop/Refine Standard SLA Template and Conduct “Pilot” with “Understanding” Customer

Monitor, Measure, and Continuously Improve Service Management Process Infrastructure



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microsoft powerpoint - ism-service level agreements 6-07

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