ITIL Foundation: ITIL 4 Edition - Chapter 4 PDF

CHAPTER 4 THE ITIL SERVICE VALUE SYSTEM Copyright © 2019. The Stationery Office Ltd. All rights reserved. Limited, A. (2019). Itil foundation : Itil 4 edition. The Station...

CHAPTER 4 THE ITIL SERVICE VALUE SYSTEM Copyright © 2019. The Stationery Office Ltd. All rights reserved. Limited, A. (2019). Itil foundation : Itil 4 edition. The Stationery Office Ltd. Created from westerngovernors-ebooks on 2024-11-05 18:39:01.  4 The ITIL service value system 4.1 Service value system overview For service management to function properly, it needs to work as a system. The ITIL SVS describes the inputs to this system (opportunity and demand), the elements of this system (organizational governance, service management, continual improvement, and the organization’s capabilities and resources), and the outputs (achievement of organizational objectives and value for the organization, its customers, and other stakeholders). Key message The ITIL SVS describes how all the components and activities of the organization work together as a system to enable value creation. Each organization’s SVS has interfaces with other organizations, forming an ecosystem that can in turn facilitate value for those organizations, their customers, and other stakeholders. Copyright © 2019. The Stationery Office Ltd. All rights reserved. The key inputs to the SVS are opportunity and demand. Opportunities represent options or possibilities to add value for stakeholders or otherwise improve the organization. Demand is the need or desire for products and services among internal and external consumers. The outcome of the SVS is value, that is, the perceived benefits, usefulness, and importance of something. The ITIL SVS can enable the creation of many different types of value for a wide group of stakeholders. The ITIL SVS includes the following components: Limited, A. (2019). Itil foundation : Itil 4 edition. The Stationery Office Ltd. Created from westerngovernors-ebooks on 2024-11-05 18:39:01.  Guiding principles Recommendations that can guide an organization in all circumstances, regardless of changes in its goals, strategies, type of work, or management structure. Governance The means by which an organization is directed and controlled. Service value chain A set of interconnected activities that an organization performs to deliver a valuable product or service to its consumers and to facilitate value realization. Practices Sets of organizational resources designed for performing work or accomplishing an objective. Continual improvement A recurring organizational activity performed at all levels to ensure that an organization’s performance continually meets stakeholders’ expectations. ITIL 4 supports continual improvement with the ITIL continual improvement model. The purpose of the SVS is to ensure that the organization continually co-creates value with all stakeholders through the use and management of products and services. The structure of the SVS is shown in Figure 4.1. The left side of the figure shows opportunity and demand feeding into the SVS from both internal and external sources. The right side shows value created for the organization, its customers, and other stakeholders. Copyright © 2019. The Stationery Office Ltd. All rights reserved. Figure 4.1 The ITIL service value system The ITIL SVS describes how all the components and activities of the organization work together as a system to enable value creation. These components and activities, together with the organization’s resources, can be configured and reconfigured in multiple combinations in a flexible way as circumstances change, but this requires the integration and coordination of activities, practices, teams, Limited, A. (2019). Itil foundation : Itil 4 edition. The Stationery Office Ltd. Created from westerngovernors-ebooks on 2024-11-05 18:39:01.  authorities and responsibilities, and all parties to be truly effective. One of the biggest challenges an organization can face when trying to work effectively and efficiently with a shared vision, or to become more Agile and resilient, is the presence of organizational silos. Organizational silos can form in many ways and for many different reasons. Silos can be resistant to change and can prevent easy access to the information and specialized expertise that exists across the organization, which can in turn reduce efficiency and increase both cost and risk. Silos also make it more difficult for communication or collaboration to occur across different groups. A siloed organization cannot act quickly to take advantage of opportunities or to optimize the use of resources across the organization. It is often unable to make effective decisions about changes, due to limited visibility and many hidden agendas. Practices can also become silos. Many organizations have implemented practices such as organizational change management or incident management without clear interfaces with other practices. All practices should have multiple interfaces with one another. The exchange of information between practices should be triggered at key points in the workflow, and is essential to the proper functioning of the organization. The architecture of the ITIL SVS specifically enables flexibility and discourages siloed working. The service value chain activities and the practices in the SVS do not form a fixed, rigid structure. Rather, they can be combined in multiple value streams to address the needs of the organization in a variety of scenarios. This publication provides examples of service value streams, but none of them are definite or prescriptive. Organizations should be able to define and redefine their value streams in a flexible, yet safe and efficient manner. This requires continual improvement activity to be carried out at all levels of the organization; the ITIL continual improvement model helps to structure this activity. Finally, the continual improvement and overall operation of an organization are shaped by the ITIL guiding principles. The guiding principles create a foundation for a shared culture across the Copyright © 2019. The Stationery Office Ltd. All rights reserved. organization, thus supporting collaboration and cooperation within and between the teams, and removing the need for constraints and controls previously provided by silos. With these components, the ITIL SVS supports many work approaches, such as Agile, DevOps and Lean (see Glossary), as well as traditional process and project management, with a flexible value-oriented operating model. An organization can take any number of forms, including, but not limited to, sole trader, company, corporation, firm, enterprise, authority, partnership, charity or Limited, A. (2019). Itil foundation : Itil 4 edition. The Stationery Office Ltd. Created from westerngovernors-ebooks on 2024-11-05 18:39:01.  institution, or any part or combination thereof, whether incorporated or not, and be either public or private. This means that the scope of the SVS can be a whole organization or a smaller subset of that organization. To achieve the maximum value from the SVS and to properly address the issue of organizational silos, it is preferable to include the whole organization in the scope rather than a subset. The rest of this chapter will explore each element of the SVS. Organizational agility and organizational resilience For an organization to be successful, it must achieve organizational agility to support internal changes, and organizational resilience to withstand and even thrive in changing external circumstances. The organization must also be considered as part of a larger ecosystem of organizations, all delivering, coordinating, and consuming products and services. Organizational agility is the ability of an organization to move and adapt quickly, flexibly, and decisively to support internal changes. These might include changes to the scope of the organization, mergers and acquisitions, changing organizational practices, or technologies requiring different skills or organizational structure and changes to relationships with partners and suppliers. Organizational resilience is the ability of an organization to anticipate, prepare for, respond to, and adapt to both incremental changes and sudden disruptions from an external perspective. External influences could be political, economic, social, technological, legal or environmental. Resilience cannot be achieved without a common understanding of the organization’s priorities and objectives, which sets the direction and promotes alignment even as external circumstances change. Copyright © 2019. The Stationery Office Ltd. All rights reserved. The ITIL SVS provides the means to achieve organizational agility and resilience and to facilitate the adoption of a strong unified direction, focused on value and understood by everyone in the organization. It also enables continual improvement throughout the organization. 4.2 Opportunity, demand, and value Limited, A. (2019). Itil foundation : Itil 4 edition. The Stationery Office Ltd. Created from westerngovernors-ebooks on 2024-11-05 18:39:01.  Key message Opportunity and demand trigger activities within the ITIL SVS, and these activities lead to the creation of value. Opportunity and demand are always entering into the system, but the organization does not automatically accept all opportunities or satisfy all demand. Opportunity represents options or possibilities to add value for stakeholders or otherwise improve the organization. There may not be demand for these opportunities yet, but they can still trigger work within the system. Organizations should prioritize new or changed services with opportunities for improvement to ensure their resources are correctly allocated. Demand represents the need or desire for products and services from internal and external customers. A definition of value, and what constitutes value for different stakeholders, can be found in Chapter 2. 4.3 The ITIL guiding principles Key message Copyright © 2019. The Stationery Office Ltd. All rights reserved. A guiding principle is a recommendation that guides an organization in all circumstances, regardless of changes in its goals, strategies, type of work, or management structure. A guiding principle is universal and enduring. Limited, A. (2019). Itil foundation : Itil 4 edition. The Stationery Office Ltd. Created from westerngovernors-ebooks on 2024-11-05 18:39:01.  Table 4.1 Overview of the guiding principles Guiding principle Description Focus on value Everything that the organization does needs to map, directly or indirectly, to value for the stakeholders. The focus on value principle encompasses many perspectives, including the experience of customers and users. Start where you are Do not start from scratch and build something new without considering what is already available to be leveraged. There is likely to be a great deal in the current services, processes, programmes, projects, and people that can be used to create the desired outcome. The current state should be investigated and observed directly to make sure it is fully understood. Progress iteratively with feedback Do not attempt to do everything at once. Even huge initiatives must be accomplished iteratively. By organizing work into smaller, manageable sections that can be executed and completed in a timely manner, it is easier to maintain a sharper focus on each effort. Using feedback before, throughout, and after each iteration will ensure that actions are focused and appropriate, even if circumstances change. Collaborate and promote visibility Working together across boundaries produces results that have greater buy-in, more relevance to objectives, and increased likelihood of long-term success. Achieving objectives requires information, understanding, and trust. Work and consequences should be made visible, hidden agendas avoided, and information shared to the greatest degree possible. Think and work holistically No service, or element used to provide a service, stands alone. The outcomes achieved by the service provider and service consumer will suffer unless the organization works on the service as a whole, not just on its parts. Results are delivered to internal and external customers through the effective and efficient management and dynamic integration of information, technology, organization, people, practices, partners, and agreements, which should all be coordinated to provide a defined value. Keep it simple and practical If a process, service, action or metric fails to provide value or produce a useful outcome, eliminate it. In a process or procedure, use the minimum number of steps necessary to accomplish the objective(s). Always use Copyright © 2019. The Stationery Office Ltd. All rights reserved. outcome-based thinking to produce practical solutions that deliver results. Optimize and automate Resources of all types, particularly HR, should be used to their best effect. Eliminate anything that is truly wasteful and use technology to achieve whatever it is capable of. Human intervention should only happen where it really contributes value. The guiding principles defined here embody the core messages of ITIL and of service management in general, supporting successful actions and good decisions of all types and at all levels. They can be used to guide organizations in their work as they adopt a service management approach and adapt ITIL guidance to their own Limited, A. (2019). Itil foundation : Itil 4 edition. The Stationery Office Ltd. Created from westerngovernors-ebooks on 2024-11-05 18:39:01.  specific needs and circumstances. The guiding principles encourage and support organizations in continual improvement at all levels. These principles are also reflected in many other frameworks, methods, standards, philosophies, and/or bodies of knowledge, such as Lean, Agile, DevOps, and COBIT. This allows organizations to effectively integrate the use of multiple methods into an overall approach to service management. The guiding principles are applicable to practically any initiative and to all relationships with stakeholder groups. For example, the first principle, focus on value, can (and should) be applied not only to service consumers, but to all relevant stakeholders and their respective definitions of value. Table 4.1 provides a high-level introduction to the guiding principles. Additional details for each principle are presented later in this chapter. ITIL, Agile, and DevOps Agile methods, when applied to software development, focus on the delivery of incremental changes to software products while responding to the changing (or evolving) needs of users. They foster a culture of continual learning, flexibility, and willingness to try new approaches and adapt to rapidly changing needs. Agile ways of working include techniques such as timeboxing work, self- organizing and cross-functional teams, and ongoing collaboration and communication with customers and users. Agile software development teams often focus on the rapid delivery of product increments at the expense of a more holistic view that considers the operability, reliability, and maintainability of these products in a live environment. Similarly, continual learning and improvement initiatives can focus on bettering the articulation and prioritization of user needs, or streamlining the procedures Copyright © 2019. The Stationery Office Ltd. All rights reserved. to develop, test, and deploy working software. While these initiatives can provide valuable outcomes, they also run the risk of being out of sync with other initiatives at a service level. Just as Agile techniques provide service organizations with a flow of product and software increments, ITIL can also provide software development organizations with a wider perspective and language with which to engage other service teams. Adopting Agile without ITIL can lead to higher costs over time, such as the costs of adopting different technologies and architectures, and costs to release, operate, and maintain software increments. Similarly, Limited, A. (2019). Itil foundation : Itil 4 edition. The Stationery Office Ltd. Created from westerngovernors-ebooks on 2024-11-05 18:39:01.  implementing ITIL without Agile techniques can risk losing focus on value for customers and users, creating slow-moving and highly centralized bureaucracies. When Agile and ITIL are adopted together, software development and service management can progress at a similar cadence, share a common terminology, and ensure that the organization continues to co-create value with all its stakeholders. Some of the ways in which ITIL and Agile can work together include: streamlining practices such as change enablement establishing procedures to incorporate and prioritize the management of unplanned interruptions (incidents), and to investigate the causes of failure separating interactions, if necessary, between ‘systems of record’ (e.g. the configuration management database) needed to manage services from ‘systems of engagement’ (e.g. collaboration tools) used by software development teams. DevOps methods build on Agile software development and service management techniques by emphasizing close collaboration between the roles of software development and technical operations. Using high degrees of automation to free up the time of skilled professionals so that they can focus on value-adding activities, DevOps is able to shine a light on aspects such as operability, reliability, and maintainability of software products that can assist in the management of services. Cultural aspects that DevOps practitioners advocate can, and should, be extended across the value stream and all service value chain activities so that product and service teams are aligned with the same goals and use the same methods. It is often said that DevOps combines software development techniques (Agile), good governance and a holistic approach to value co-creation (ITIL), and an obsession with learning about and improving the way in which value is Copyright © 2019. The Stationery Office Ltd. All rights reserved. generated (Lean). As such, the adoption of DevOps methods presents further opportunities to improve the way in which software products are developed and managed, such as: creating fast feedback loops from delivery and support to software development and technology operations streamlining value chain activities and value streams so that demand for work can be quickly converted to value for multiple stakeholders differentiating deployment management from release management Limited, A. (2019). Itil foundation : Itil 4 edition. The Stationery Office Ltd. Created from westerngovernors-ebooks on 2024-11-05 18:39:01.  advocating a ‘systems view’ that emphasizes close collaboration between enterprise governance, service teams, software development, and technology operations. 4.3.1 Focus on value Key message All activities conducted by the organization should link back, directly or indirectly, to value for itself, its customers, and other stakeholders. This section is mostly focused on the creation of value for service consumers. However, a service also contributes to value for the organization and other stakeholders. This value may come in various forms, such as revenue, customer loyalty, lower cost, or growth opportunities. The following recommendations can be adapted to address various stakeholder groups and the value that is created for them by the organization. 4.3.1.1 Who is the service consumer? When focusing on value, the first step is to know who is being served. In each situation the service provider must, therefore, determine who the service consumer is and who the key stakeholders are (for example, customers, users, or sponsors; see section 2.2 for more details). In doing this, the service provider should consider Copyright © 2019. The Stationery Office Ltd. All rights reserved. who will receive value from what is being delivered or improved. The ITIL story: Axle’s new technology Axle is considering introducing several pieces of new technology into their cars. In the following sections the Axle team looks at what new technology could be introduced and uses the ITIL guiding principles to help decide on the best course of action. Limited, A. (2019). Itil foundation : Itil 4 edition. The Stationery Office Ltd. Created from westerngovernors-ebooks on 2024-11-05 18:39:01.  Su: One aspect of our service we are considering is the collection and return of vehicles. This process remains very manual. Some of our regional depots continue to use paper-based forms to register customers. Customers don’t want to waste time completing forms for identification when this information has already been provided during the online booking process. To improve the customer identification process, Axle could use biometric technology to identify our customers. Marco: Biometric technology uses scanned graphical data for personal identification. It’s fast and reliable, and widely used in other industries. For example, the airline industry is using it for security screening, check-in, and even for aircraft boarding. We could use fingerprint or facial recognition scans to quickly identify our customers, and automate the car collection and return process. Radhika: We need to be mindful of regulations such as GDPR and the possible risks to data security this technology could bring. Marco: Axle also wants to trial automated identification of damage to returned vehicles, including scratches, dents, and broken lights. Potentially the technology could even identify fuel levels. This would automate the calculation of any fuel charges incurred by our customers, which is also a manual process. Su: Our customers want simplicity and speed while maintaining comfort and safety on the road. Biometric technology and car scanning would be a source of opportunity to meet evolving customer demands. Marco: Our services already rely on technology, and the intelligence of smartphones and personal devices to meet customer needs and expectations. The adoption of biometric technology is a natural progression. Anyone who can access their phone with a thumbprint or facial recognition will be comfortable and confident using the same technology to collect or return a car. Copyright © 2019. The Stationery Office Ltd. All rights reserved. Henri: We can’t make the mistake of trying to implement every innovation at once, even if they all sound like the ideal solution for Axle Car Hire. We need a framework in place to make sure value is realized, and to govern our decisions. It’s also important that none of our existing customers are disadvantaged, even as we venture into new surroundings. For example, not all our customers are tech-savvy. This is especially true for our elderly customers, who represent a large percentage of our customer base for leisure travel. We also need to balance innovation with existing operational demands. Limited, A. (2019). Itil foundation : Itil 4 edition. The Stationery Office Ltd. Created from westerngovernors-ebooks on 2024-11-05 18:39:01.  4.3.1.2 The consumer’s perspectives of value Next the service provider must understand what is truly of value to the service consumer. The service provider needs to know: why the consumer uses the services what the services help them to do how the services help them achieve their goals the role of cost/financial consequences for the service consumer the risks involved for the service consumer. Value can come in many forms, such as increased productivity, reduced negative impact, reduced costs, the ability to pursue new markets, or a better competitive position. Value for the service consumer: is defined by their own needs is achieved through the support of intended outcomes and optimization of the service consumer’s costs and risks changes over time and in different circumstances. 4.3.1.3 The customer experience An important element of value is the experience that service consumers have when they interact with the service and the service provider. This is frequently called customer experience (CX) or user experience (UX) depending on the adopted definitions, and it must be actively managed. CX can be defined as the entirety of the interactions a customer has with an organization and its products. This experience can determine how the customer feels about the organization and its products and services. Copyright © 2019. The Stationery Office Ltd. All rights reserved. CX is both objective and subjective. For example, when a customer orders a product and receives what they ordered at the promised price and in the promised delivery time, the success of this aspect of their experience is objectively measurable. On the other hand, if they don’t like the style or layout of the website they are ordering from, this is subjective. Another customer might really enjoy the design. 4.3.1.4 Applying the principle Limited, A. (2019). Itil foundation : Itil 4 edition. The Stationery Office Ltd. Created from westerngovernors-ebooks on 2024-11-05 18:39:01.  To apply this principle successfully, consider this advice: Know how service consumers use each service Understand their expected outcomes, how each service contributes to these, and how the service consumers perceive the service provider. Collect feedback on value on an ongoing basis, not just at the beginning of the service relationship. Encourage a focus on value among all staff Teach staff to be aware of who their customers are and to understand CX. Focus on value during normal operational activity as well as during improvement initiatives The organization as a whole contributes to the value that the customer perceives, and so everybody within the organization must maximize the value they create. The creation of value should not be left only to the people working on exciting projects and new things. Include focus on value in every step of any improvement initiative Everybody involved in an improvement initiative needs to understand what outcomes the initiative is trying to facilitate, how its value will be measured, and how they should be contributing to the co-creation of that value. Copyright © 2019. The Stationery Office Ltd. All rights reserved. Limited, A. (2019). Itil foundation : Itil 4 edition. The Stationery Office Ltd. Created from westerngovernors-ebooks on 2024-11-05 18:39:01.  The ITIL story: Focus on value Radhika: When Axle expanded to the Asia-Pacific region, we undertook research focused on customers travelling outside their native countries. The results found that American and European customers travelling to these areas had concerns around unfamiliar road rules and safety. Marco: Axle is introducing a certified, third-party driver assistance system called Axle Aware. The system checks external surroundings and internal conditions in the car. It includes cameras to monitor the area around the car, and an artificial intelligence program with local road rules. It can even let the driver know when fatigue is starting to set in. The system will alert the driver to approaching dangers and potential road rule breaches. For example, in Australia, local road rules dictate that drivers are required to give a minimum of 1 metre when passing cyclists at a speed of 60 km/h or less, or 1.5 metres when the speed is more than 60 km/h. Su: Many visiting tourists will be mostly focused on driving on the correct side of the road and won’t know about this rule, but the Axle Aware system does! Marco: Studies have shown that systems such as this significantly decrease accident rates and serious injuries. Su: This means that the value to our consumers is a safer travel experience. It will be cheaper too, as they will have fewer penalties for breaking rules they are not familiar with! Henri: The value for Axle Car Hire is improved customer satisfaction, reduced repair costs and lower insurance premiums. Marco: This type of innovation will also provide additional value for some of our partners and suppliers. Copyright © 2019. The Stationery Office Ltd. All rights reserved. Radhika: For example, we’ve updated our contract with our fleet maintenance partner. Maintenance will now include Axle Aware. The value to our maintenance partner is the additional revenue. 4.3.2 Start where you are Limited, A. (2019). Itil foundation : Itil 4 edition. The Stationery Office Ltd. Created from westerngovernors-ebooks on 2024-11-05 18:39:01.  Key message In the process of eliminating old, unsuccessful methods or services and creating something better, there can be great temptation to remove what has been done in the past and build something completely new. This is rarely necessary, or a wise decision. This approach can be extremely wasteful, not only in terms of time, but also in terms of the loss of existing services, processes, people, and tools that could have significant value in the improvement effort. Do not start over without first considering what is already available to be leveraged. The ITIL story: Axle’s booking app Marco: The Axle booking app was first developed two years ago. The app is no longer meeting business requirements. It can’t cater for the advances in technology we’re using now, such as the biometric system and the driver assistance system. For example, we need our app to have the capability to scan and validate our customers’ fingerprints and facial images. The current coding simply can’t support that. We need a new app! 4.3.2.1 Assess where you are Services and methods already in place should be measured and/or observed directly to properly understand their current state and what can be re-used from them. Copyright © 2019. The Stationery Office Ltd. All rights reserved. Decisions on how to proceed should be based on information that is as accurate as possible. Within organizations there is frequently a discrepancy between reports and reality. This is due to the difficulty of accurately measuring certain data, or the unintentional bias or distortion of data that is produced through reports. Getting data from the source helps to avoid assumptions which, if proven to be unfounded, can be disastrous to timelines, budgets, and the quality of results. Those observing an activity should not be afraid to ask what may seem to be stupid questions. It can sometimes be beneficial for a person with little or no prior knowledge of the service to be part of the observation, as they have no Limited, A. (2019). Itil foundation : Itil 4 edition. The Stationery Office Ltd. Created from westerngovernors-ebooks on 2024-11-05 18:39:01.  preconceptions of the service, and may spot things that those more closely involved with it would miss. The ITIL story: Assessing the current state Henri: Everyone likes the idea of a new app, and IT is keen to start gathering user requirements so that we can start development. However, before we develop an entirely new app, let’s assess the current state of the app we have to see if there’s any functionality we can re-use. The current process for booking a car meets basic requirements, and doesn’t need to change. We just need additional functionality. For example, the process for recording, storing, and calculating points for our loyalty programme won’t change. We should also consider the limits of the technology that our customers use. If we want to introduce biometric data recognition, users will need to have modern devices. I am not sure they all do, so we should investigate constraints and opportunities here. Marco: Our current booking app is working well. Incident data indicates that customers make very few calls to the service desk. This indicates that the current functionality is fit for use and meets customer requirements. Henri: However, our focus groups indicate that customers avoid using the app because it’s slow and difficult to use. Previously, upgrades focused on technology, not the requirements of our customers. We didn’t have the flexibility to easily configure functionality to match new and changing service offerings. So the reliability and usability of the booking app can’t be assessed solely using the data from incidents logged. We need to confirm these findings with other research. 4.3.2.2 The role of measurement Copyright © 2019. The Stationery Office Ltd. All rights reserved. The use of measurement is important to this principle. It should, however, support but not replace what is observed, as over-reliance on data analytics and reporting can unintentionally introduce biases and risks in decision-making. Organizations should consider a variety of techniques to develop knowledge of the environments in which they work. Although it is true that some things can only be understood through measuring their effect (for example, natural phenomena such as the wind), direct observation should always be the preferred option. Too often existing data is used with no consideration of direct personal investigation. Limited, A. (2019). Itil foundation : Itil 4 edition. The Stationery Office Ltd. Created from westerngovernors-ebooks on 2024-11-05 18:39:01.  It should be noted that the act of measuring can sometimes affect the results, making them inaccurate. For example, if a service desk knows it is being monitored on length of time spent on the phone, it might focus too much on minimizing customer engagement (thus leading to good reports), rather than actually helping users resolve issues to their satisfaction. People are very creative in finding ways to meet the metrics they are measured against. Therefore, metrics need to be meaningful and directly relate to the desired outcome. When a measure becomes a target, it ceases to be a good measure Goodhart’s Law 4.3.2.3 Applying the principle Having a proper understanding of the current state of services and methods is important to selecting which elements to re-use, alter, or build upon. To apply this principle successfully, consider this advice: Look at what exists as objectively as possible, using the customer or the desired outcome as the starting point. Are the elements of the current state fit for purpose and fit for use? There are likely to be many elements of the current services, practices, projects, and skills that can be used to create the desired future state, provided the people making this judgement are objective. When examples of successful practices or services are found in the current state, determine if and how these can be replicated or expanded upon to achieve the desired state. In many, if not most, cases, leveraging what already exists will reduce the amount of work needed to transition from the current state to the desired state. There should be a focus on learning and improvement, not just replication and expansion. Apply your risk management skills. There are risks associated with re-using existing practices and processes, such as the continuation of old behaviours that are damaging to the service. There are also risks associated with putting Copyright © 2019. The Stationery Office Ltd. All rights reserved. something new in place, such as new procedures not being performed correctly. These should be considered as part of the decision-making process, and the risks of making or not making a change evaluated to decide on the best course of action. Recognize that sometimes nothing from the current state can be re-used. Regardless of how desirable it may be to re-use, repurpose and recycle, or even upcycle, there will be times when the only way to achieve the desired result is to start over entirely. It should be noted, however, that these situations are very rare. Limited, A. (2019). Itil foundation : Itil 4 edition. The Stationery Office Ltd. Created from westerngovernors-ebooks on 2024-11-05 18:39:01.  4.3.3 Progress iteratively with feedback Key message Resist the temptation to do everything at once. Even huge initiatives must be accomplished iteratively. By organizing work into smaller, manageable sections that can be executed and completed in a timely manner, the focus on each effort will be sharper and easier to maintain. Improvement iterations can be sequential or simultaneous, based on the requirements of the improvement and what resources are available. Each individual iteration should be both manageable and managed, ensuring that tangible results are returned in a timely manner and built upon to create further improvement. A major improvement initiative or programme may be organized into several significant improvement initiatives, and each of these may, in turn, comprise smaller improvement efforts. The overall initiative or programme, as well as its component iterations, must be continually re-evaluated and potentially revised to reflect any changes in circumstances and ensure that the focus on value has not been lost. This re-evaluation should make use of a wide range of feedback channels and methods to ensure that the status of the initiative and its progress are properly understood. 4.3.3.1 The role of feedback Whether working to improve a service, group of services, practice, process, technical Copyright © 2019. The Stationery Office Ltd. All rights reserved. environment, or other service management element, no improvement iteration occurs in a vacuum. While the iteration is being undertaken, circumstances can change and new priorities can arise, and the need for the iteration may be altered or even eliminated. Seeking and using feedback before, throughout, and after each iteration will ensure that actions are focused and appropriate, even in changing circumstances. A feedback loop is a term commonly used to refer to a situation where part of the output of an activity is used for new input. In a well-functioning organization, feedback is actively collected and processed along the value chain. Well-constructed Limited, A. (2019). Itil foundation : Itil 4 edition. The Stationery Office Ltd. Created from westerngovernors-ebooks on 2024-11-05 18:39:01.  feedback mechanisms facilitate understanding of: end user and customer perception of the value created the efficiency and effectiveness of value chain activities the effectiveness of service governance as well as management controls the interfaces between the organization and its partner and supplier network the demand for products and services.. Once received, feedback can be analysed to identify improvement opportunities, risks, and issues. 4.3.3.2 Iteration and feedback together Working in a timeboxed, iterative manner with feedback loops embedded into the process allows for: greater flexibility faster responses to customer and business needs the ability to discover and respond to failure earlier an overall improvement in quality. Having appropriate feedback loops between the participants of an activity gives them a better understanding of where their work comes from, where their outputs go, and how their actions and outputs affect the outcomes, which in turn enables them to make better decisions. Copyright © 2019. The Stationery Office Ltd. All rights reserved. Limited, A. (2019). Itil foundation : Itil 4 edition. The Stationery Office Ltd. Created from westerngovernors-ebooks on 2024-11-05 18:39:01.  The ITIL story: Progress iteratively Marco: It’s now been three months since Axle released the first iteration of its new app. We began by making it available solely to trusted VIP customers. We worked with their feedback to refine the booking process. Radhika: We learned that the app needed to be flexible so we could make changes easily based on rapidly evolving customer requirements. For example, our business customers wanted the app to automatically record distance travelled. Working with our product team, we were easily able to add this functionality. Su: The app is now easily configurable, allowing Axle to quickly add new functions and features based on customer feedback. 4.3.3.3 Applying the principle To apply this principle successfully, consider this advice: Comprehend the whole, but do something Sometimes the greatest enemy to progressing iteratively is the desire to understand and account for everything. This can lead to what is sometimes called ‘analysis paralysis’, in which so much time is spent analysing the situation that nothing ever gets done about it. Understanding the big picture is important, but so is making progress. The ecosystem is constantly changing, so feedback is essential Change is happening constantly, so it is very important to seek and use feedback at all times and at all levels. Fast does not mean incomplete Just because an iteration is small enough to be done quickly does not mean that it should not include all the elements necessary for success. Any iteration should be produced in line with the concept of the Copyright © 2019. The Stationery Office Ltd. All rights reserved. minimum viable product. A minimum viable product is a version of the final product which allows the maximum amount of validated learning with the least effort. 4.3.4 Collaborate and promote visibility Limited, A. (2019). Itil foundation : Itil 4 edition. The Stationery Office Ltd. Created from westerngovernors-ebooks on 2024-11-05 18:39:01.  Key message When initiatives involve the right people in the correct roles, efforts benefit from better buy-in, more relevance (because better information is available for decision-making) and increased likelihood of long-term success. Creative solutions, enthusiastic contributions, and important perspectives can be obtained from unexpected sources, so inclusion is generally a better policy than exclusion. Cooperation and collaboration are better than isolated work, which is frequently referred to as ‘silo activity’. Silos can occur through the behaviour of individuals and teams, but also through structural causes. This typically happens where functions or business units in an organization are impeded or unable to collaborate, because their processes, systems, documentation, and communications are designed to fulfil the needs of only a specific part of the organization. Applying the guiding principle of think and work holistically (see section 4.3.5) can help organizations to break down barriers between silos of work. Recognition of the need for genuine collaboration has been one of the driving factors in the evolution of what is now known as DevOps. Without effective collaboration, neither Agile, Lean, nor any other ITSM framework or method will work. Working together in a way that leads to real accomplishment requires information, understanding, and trust. Work and its results should be made visible, hidden agendas should be avoided, and information should be shared to the greatest degree possible. The more people are aware of what is happening and why, the more they will be willing to help. Copyright © 2019. The Stationery Office Ltd. All rights reserved. When improvement activity occurs in relative silence, or with only a small group being aware of the details, assumptions and rumours can prevail. Resistance to change will often arise as staff members speculate about what is changing and how it might impact them. 4.3.4.1 Whom to collaborate with Identifying and managing all the stakeholder groups that an organization deals with is important, as the people and perspectives necessary for successful collaboration Limited, A. (2019). Itil foundation : Itil 4 edition. The Stationery Office Ltd. Created from westerngovernors-ebooks on 2024-11-05 18:39:01.  can be sourced within these stakeholder groups. As the name suggests, a stakeholder is anyone who has a stake in the activities of the organization, including the organization itself, its customers and/or users, and many others. The scope of stakeholders can be extensive. The first and most obvious stakeholder group is the customers. The main goal of a service provider is to facilitate outcomes that its customers are interested in, so the customers have a large stake in the service provider’s ability to manage services effectively. Some organizations, however, do a poor job of interacting with customers. A service provider may feel that it is too difficult to get input or feedback from the customer, and that the resulting delays are a waste of time. Equally, customers may feel that, after they have defined their requirements, the service provider can be left to deliver the service with no further contact needed. When it comes to the improvement of a service provider’s practices, the customer may not see any need to be involved at all. In the end, however, the right level of collaboration with customers will lead to better outcomes for the organization, its customers, and other stakeholders. Other examples of stakeholder collaboration include: developers working with other internal teams to ensure that what is being developed can be operated efficiently and effectively. Developers should collaborate with technical and non-technical operational teams to make sure that they are ready, willing, and able to transition the new or changed service into operation, perhaps even participating in testing. Developers can also work with operations teams to investigate defects (problems) and to develop workarounds or permanent fixes to resolve these defects suppliers collaborating with the organization to define its requirements and brainstorm solutions to customer problems relationship managers collaborating with service consumers to achieve a comprehensive understanding of service consumer needs and priorities Copyright © 2019. The Stationery Office Ltd. All rights reserved. customers collaborating with each other to create a shared understanding of their business issues internal and external suppliers collaborating with each other to review shared processes and identify opportunities for optimization and potential automation. 4.3.4.2 Communication for improvement The contribution to improvement of each stakeholder group at each level should be understood; it is also important to define the most effective methods to engage with Limited, A. (2019). Itil foundation : Itil 4 edition. The Stationery Office Ltd. Created from westerngovernors-ebooks on 2024-11-05 18:39:01.  them. For example, the contribution to improvement from customers of a public cloud service may be through a survey or checklist of options for different functionalities. For an internal customer group, the contribution to improvement may come from feedback solicited via a workshop or a collaboration tool on the organization’s intranet. Some contributors may need to be involved at a very detailed level, while others can simply be involved as reviewers or approvers. Depending on the service and the relationship between the service provider and the service consumer, the expectations about the level and type of collaboration can vary significantly. 4.3.4.3 Increasing urgency through visibility When stakeholders (whether internal or external) have poor visibility of the workload and progression of work, there is a risk of creating the impression that the work is not a priority. If an initiative is communicated to a team, department, or another organization and then is never, or rarely, mentioned again, the perception will be that the change is not important. Equally, when staff members attempt to prioritize improvement work versus other tasks that have daily urgency, improvement work may seem to be a low-priority activity unless its importance has been made transparent and it is supported by the organization’s management. Insufficient visibility of work leads to poor decision-making, which in turn impacts the organization’s ability to improve internal capabilities. It will then become difficult to drive improvements as it will not be clear which ones are likely to have the greatest