using itil and prince2 to establish governance
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TRANSCRIPT
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RUN & BUILD: USING ITIL AND PRINCE2 TO ESTABLISH IT GOVERNANCE
Simon DorstPrincipal Consultant, Lucid IT Pty Ltd
ISACA Perth Annual Conference26 October 2006
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Agenda
! Governance & Frameworks! RUN: Service Management using ITIL! BUILD: Project Management using PRINCE2! Putting it together
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Agenda
! Governance & Frameworks! It’s a jungle out there! Creating structure! Run & Build
! RUN: Service Management using ITIL! BUILD: Project Management using PRINCE2! Putting it together
Governance & Frameworks
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Governance:the old-fashioned way
© National Geographic Society
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Current Governance Standards
Source: AS8015 – IT Governance
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ICT Governance
! ICT Governance is:! IT Governance specifies the decision rights and creates an accountability
framework that encourages desirable use of IT - Weill and Ross (IT Governance, 2004)
! ICT Governance is NOT:! IT Management – i.e. the internal machinations of the IT shop
! My view – a lot of words spoken about Governance but not much is really said:! Like most concepts, you have to “really do it” it to get the value! Gets easily confused with Compliance and Risk
! So what does it mean in real terms for IT?
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Why Best Practice and Standards?
! Management of IT is critical to the success of the company
! Help enable effective governance of IT activities! An framework is needed “so everyone knows what to do”! They provide many benefits, amongst which
! Avoiding re-inventing wheels! Reducing risks and errors! Efficiency gains! Increased trust! Respect from regulators! ……..
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Frameworks for implementation?
! To meet the (IT) service demands of complex organisations the (IT) industry has developed a number of different approaches to service quality frameworks. These include:! AS8015! CobiT! ITIL (IT Infrastructure Library)! ISO/IEC 20000! PRINCE2 ! Six Sigma
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And a few more
! MOF! AS7799 Security (ISO 17799 / 27001)! SABSA (Security)! Service Oriented Architecture! Business Service Management! PMBOK! ASL! RAD
! Clearly no shortage …….
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Information Technology Management Framework™
BUSINESS
Servi
ce Le
vel M
anag
emen
t
Busin
ess C
apab
ility R
equir
emen
ts An
alysis
Management
ProcessesIT Strategy, Architecture, Planning and Governance
IT Financial Management
Vendor Management
Human Capability Management
Programme Management
ServiceProcesses
ProblemManagement
ConfigurationManagement
AvailabilityManagement
ChangeManagement
Security and RiskManagement
CapacityManagement
ServiceFunctions
Solutions and Services Development
AnalyseRequirements
Design Build and Test Deploy
Release ManagementProject Management
ControlProduction
ServiceContinuity
ManageTechnical
Environment
ManageSoftware
StorageManagement
Applications and ICT Management
RequestManagement
IncidentManagementIT ServicesPromotion
Service Desk
ITIL
ITIL
ITIL
ITILITIL
ITIL
ITIL
ITIL
ITIL
ITIL
ITIL
ITIL
ITILITILITIL
ITILIT
IL
AS7799
ISO20000AS8015
MOF
MOF
MOF
MOF MOF
Prince2
Prince2 pmBOK
CM
M
CMM
CMM
SABSA
CobiTBSC 6 Sigma
6 S
igm
a
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CobiT: Governance
PRINCE2: Project Management
ITIL: Service Management
Common Frameworks
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BusinessBusiness
““RunRun””IT ServicesIT Services
““BuildBuild””IT ServicesIT Services
“Build and Run”:SMO and PMO Enabling Governance
Governance
ServiceServiceManagement Management
OfficeOfficeService Level MgtFinancial MgtAvailability MgtCapacity MgtSecurity MgtIT Service Continuity MgtIncident Mgt
Programme ManagementPortfolio ManagementProject ManagementRequirements Analysis
ProgramProgramManagement Management
Office Office
Release MgtChange MgtConfiguration MgtProblem Mgt
Application DevelopmentProject Management
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Agenda
! Governance & Frameworks! RUN: Service Management using ITIL
! Service Management (Office)! ITIL! Governance through CobiT! Future: ITIL v3, ISO/IEC20000
! BUILD: Project Management using PRINCE2! Putting it together
RUN: Service Management using ITIL
BusinessBusiness
““RunRun””IT ServicesIT Services
““BuildBuild””IT ServicesIT Services
Governance
ServiceServiceManagement Management
OfficeOffice
ProgramProgramManagement Management
Office Office
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What is Service Management?
! Business Service Management! Managing the underpinning processes and infrastructure to
meet the requirements of the business customers; internal and external
! Integrated IT and business service value chain! Clear metrics to drive the right behaviours in IT and
business! IT Service Management
! ITIL: “Managing IT Services to meet the customer’s requirements”
! A paradigm shift from technology to customer focus
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At the heart of Service Management is Service
Business/Customer Service
IT Services
CI CI CI
CI CI CI CI
Underpinning Configuration Items
CI CI CI CI
CI CI CI
CI CI CI CI
CI CI CI
CI CI
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ITSM - Dimensions
Effective ITSM involves a combination of:! Structural Alignment! Effective IT Leadership ! People (skills, motivation, training,
culture)! Processes – ITIL best practices! Technology (Applications,
infrastructure, tools)! Quality framework for continuous
improvement! Engagement with business for
effective Governance
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Service Management Maturity Path
IT is still working on embedding and aligning Support
processes
Effective governance is not possible until both IT
Support and Delivery are of sufficient maturity to meet business needs
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A Brief History of ITIL
! Late 1980’s ITIL used in the UK! Early 1990’s ITIL introduced in Europe! Mid 1990’s ITIL is de facto standard for IT
Service Management in Europe! Late 1990’s ITIL introduced in the USA, South Africa and Australia! 2001 Main volumes updated (the current ITIL v2);
Launch of BS15000 standards! 2002- Strong growth of ITIL awareness
and demand in Australia! 2004 AS8018 standard
Gartner ‘endorses’ ITIL! 2005 ISO20000 standard! 2007 ITIL v3
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The IT Infrastructure Library (ITIL)B
usin
ess
Tech
nolo
gy
ITIL - Planning to Implement Service Management
Application Management
TheBusiness
Perspective ServiceDelivery
Service Management
ServiceSupport
SecurityManagement
ICTInfrastructureManagement
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CobiT and ITILAn introduction
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ITIL and CobiT
! Focus of CobiT is on control and what should be done - a good governance framework! ITIL focuses on what and how! So they can be used together
! CobiT gives complete coverage of IT processes! ITIL does not! So there are gaps (although ITIL’s development is closing the gap)
" Quality Management" System Development" Selection of system software" …….
! Be aware of gaps and overlaps before using both
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Strengths and Weaknesses
! Holistic, covers all IT processes (what to do)
! Links Performance Indicators to business goals using BSC
! Governance and audit origins! Maturity models" Processes do not tell you how
to perform them
! Best practice framework that tell you how processes work
! IT Service Management origins! Defines process elements, eg
roles, responsibilities, activities, KPIs, reporting
! How to processes in Delivery, Support, Applications, ICT Infrastructure, Security Mgt
! Maturity models" Not strategic, so gaps exist
when compared to CobiT
CobiT ITIL
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• CobiT’s natural grouping of processes, matching ITIL Service Management modules
• A series of ITIL processes with CobiT control breaks
• Actions required to achieve a measurable result (audit).
Domains
Processes
Activities
ITIL & CobiT Working Together
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Future of ITIL
! ISO/IEC20000 IT Service Management Standard [2005/2006]
! ITIL v3 [2007/2008]! Less operational! More business (value) focus! Hub-and-Spoke model! Integration with CobiT
" OGC and ITGI have stated they will continue to integrate ITIL and CobiT
" (and other business/governance methodologies).
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ITIL v3 Service Lifecycle
Service Transition
Service Design
Service Operation
Service Improvement
ServiceStrategy
Monitor& Evaluate
Plan and Organise
Acquire and Implement
Deliver and Support
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Agenda
! Governance & Frameworks! RUN: Service Management using ITIL! BUILD: Project Management using PRINCE2
! Project Management Office! PRINCE2! vs. PMBOK! Project Governance
! Putting it together
BUILD: Project Management using PRINCE2
BusinessBusiness
““RunRun””IT ServicesIT Services
““BuildBuild””IT ServicesIT Services
Governance
ServiceServiceManagement Management
OfficeOffice
ProgramProgramManagement Management
Office Office
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Definition of a Project
“A temporary organisation that is needed to produce a unique and predefined outcome
or result at a pre-specified time using predetermined resources”
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PRINCE2 Acronym
PRojects IN Controlled Environments™
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History PRINCE2
! January 1979! PROMPT II introduced as UK Government standard for
project management, supported by CCTA! March 1989
! PRINCE name adopted following the introduction of a number of new features
! October 1996! PRINCE2 launched with a number of improvements and
designed to be applicable to all types and sizes of projects! November 2005
! OGC released the latest iteration of the PRINCE2 textbook “Managing Successful Projects with PRINCE2”
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PRINCE2 Model
Starting up a Project (SU)
Initiating a Project (IP)
Planning (PL)
Controlling a Stage (CS)
Managing Product
Delivery (MP)
Managing Stage Boundaries
(SB)Closing a
Project (CP)
Directing a Project (DP)
Mandate
Business Case
Organisation
Plans
ControlsManagementof Risk
Quality in a Project
Environment
Configurat
ion
Manag
emen
t
Change Control
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PRINCE2 Process Flow
SU1Appointing an
Executive and aProject Manager
SU2Designing a
Project Mgt Team
SU3Appointing a
Project Mgt Team
SU4Preparing a Project Brief
SU5Defining Project
Approach
SU6Planning an
Initiation Stage
IP1PlanningQuality
IP2PlanningA Project
IP3Refining the
Business Case and Risks
IP5Setting up
Project Files
IP4Setting up
Project Controls
IP6Assembling a
PID
PL1Designing a
Plan
PL2Defining and
Analysing Products
PL3Identifying
Activities and Dependencies
PL7Completing a
Plan
PL6Analysing Risks
PL5Scheduling
PL4Estimating
MP1Accepting a
Work Package
MP3Delivering a
Work Package
MP2Executing a
Work Package
CS7Taking Corrective
Action
CS4Examining
Project Issues
CS2Assessing Progress
CS6Reporting Highlights
CS3Capturing
Project Issues
CS9Receiving completed
Work Package
CS1Authorising
Work Package
CS5Reviewing
Stage Status
CS8Escalating
Project Issues
DP4Giving Ad-Hoc
Direction
DP3Authorisinga Stage or
Exception Plan
DP5Confirming
Project Closure
DP2Authorisinga Project
DP1Authorising
Initiation
SB3Updating the
Business Case
SB5ReportingStage End
SB4Updating the
Risk Log
SB6Producing an
Exception Plan
SB1Planning a
Stage
SB2Updating theProject Plan
CP1Decommissioning
a Project
CP3Evaluating a Project
CP2Identifying Follow-
on Activities
Project Mandate Job Descriptions Team StructureJob Descriptions(agreed)
Project BriefBusiness CaseRisk LogDaily Log
Project Approach Initiation Stage Plan(draft)
Quality StandardsQuality PlanQuality Log Project Plan
Product Flow DiagramProduct ChecklistProduct Breakdown StructureProduct Descriptions
Project ControlsCommunication Plan
Next Stage PlanPID
Issue LogLessons Learned Log
Business Case
Checkpoint ReportQuality Review/Log
CI Records Work Package
New Issues CI Records
Highlight Report
Exception Report
Next Stage Plan
Exception Plan
Post-Project Review PlanFollow-on ActionRecommendations
Lessons Learned ReportEnd Project Report
SU: Starting Up a Project
IP: Initiating a Project
PL: Planning
MP: Managing Product delivery
CS: Controlling a Stage
DP: Directing a Project
CP: Closing a Project
SB: Managing Stage Boundaries
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PMBOK vs. PRINCE2
! Comprehensive! Descriptive! Including:
! Need & Feasibility! Procurement! Tools & Techniques ! HR/People Management
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PMBOK and PRINCE2
! Use Key Components from PRINCE2! Use PMBOK for depth, techniques & additional
! Jay Siegelaub, PMI Westchester, January 2004
! PMBOK takes the best approach for teaching the subject content
! PRINCE2 provides guidance for running a project! R.Max Wideman, AEW Services, 2002
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Project Management Structure
Project Board
Project Manager
Team Manager/s
Corporate or programme management
Project Assurance
Executive Senior SupplierSenior User
ProjectSupport
Assurance responsibility Lines of guidance/adviceLines of authority
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Directing a Project (DP)
Source: Managing Successful Projects with PRINCE2
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Agenda
! Governance & Frameworks! RUN: Service Management using ITIL! BUILD: Project Management using PRINCE2! Putting it together
! How! Benefits! Summary
Putting it together
BusinessBusiness
““RunRun””IT ServicesIT Services
““BuildBuild””IT ServicesIT Services
Governance
ServiceServiceManagement Management
OfficeOffice
ProgramProgramManagement Management
Office Office
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Integrate?
The ideal Best Practice IT organisation could:! Use CobiT for IT Governance & Audit purposes
! WHAT for Build and Run (and business)! Follow ITIL processes (incl. Applications Management) on how to
deliver quality services to is customers, and ensure CobiT objectives are met! HOW for (partly) Build and Run
! Use PRINCE2 for the delivery of projects! HOW for Build
! Perhaps also apply Six Sigma as an overall improvement method! HOW for optimise
! Audit against various standards (AS8015, ISO/IEC20000)! And still have a need for software development best practice (and
more)
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BusinessBusiness
““RunRun””IT ServicesIT Services
““BuildBuild””IT ServicesIT Services
Governance
ServiceServiceManagement Management
OfficeOfficeService Level MgtFinancial MgtAvailability MgtCapacity MgtSecurity MgtIT Service Continuity MgtIncident Mgt
Programme ManagementPortfolio ManagementProject ManagementRequirements Analysis
ProgramProgramManagement Management
Office Office
Release MgtChange MgtConfiguration MgtProblem Mgt
Application DevelopmentProject Management
Positioning
CobiTCobiT
ITILITIL
Prince2Prince2
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The Challenge
! The business doesn’t feel in control! “No matter how much money I throw at IT I can’t change it”
Senior Bank Executive! IT doesn’t feel understood or cannot engage effectively! Projects deliver technologies without Business Service
requirements! ITIL implementation projects rather than strategic ITSM
improvement initiatives! Lots of compliance work for the sake of compliance! Competing priorities between projects, support and
operations! Silos within IT and within the business
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Top 5 Keys to Success
! Building a roadmap that matures IT toward effective governance ! First do the simple things well
! Combine Frameworks to utilise their ‘strong’ points! Engage with the business at strategic and tactical levels
to ensure operational alignment! Work with business drivers not just IT drivers
! Work on the skills and culture of your team such that they can understand the business issues and can drive internal IT behaviours accordingly
! Invest wisely in tools that will enable clarity of performance internally and for the business
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Summary
! Governance is difficult for most IT shops because of a lack of process and organisational maturity
! To be successful build a maturity roadmap for the whole of IT (RUN & BUILD)
! Measure and improve based on business outcomes! Governance, enabled by ITIL and PRINCE2 processes, provides
useful models for engagement and allocation of decision rights! ITIL and PRINCE2 are developed by OGC and work well together! CobiT (what) is very extensive and combines with ITIL &
PRINCE2 (how)! Keep it simple and don’t expect to achieve success overnight! Be careful for overload! Use them what they are for
! Besides: what is your alternative to Best Practices?
