Dennis Adams associates Management and Infrastructure SIG Meeting

Dennis Adams associates Management and Infrastructure SIG Meeting ITIL, CMMI, MOPS, six-Sigma, LEAN. . (where to start? ) A Voyage Thru the Acronyms. Methodologies for managing IT Dennis Adams 17 th June 2008

Introduction - How to Manage IT ? • Too many acronyms - too little time ! • These days, IT managers are faced with a whole raft of different methodologies and approaches. • Are they all relevant? • What are the strengths and weaknesses of – – – ITIL CMMi MOPS six-Sigma LEAN …. . ? • Are they mutually exclusive?

Focus on PROCESSES rather than SKILLS Functional Organization Process Approach Using a Process Approach, we no longer think in terms of individual technical teams “doing their own thing”. Rather we think in terms of the overall goal which should be directed to the main goals of the organization.

The voyage ahead

ITIL OGC Home Page for ITIL: TSO (The Stationery Office): IT Service Management Forum (it. SMF): Interactive Forum: ITIL Toolkit: Key Skills Training: ITIL Training: http: //www. itil. co. uk http: //www. tso. co. uk http: //www. itsmf. com http: //www. itilcommunity. com http: //www. itil-toolkit. com http: //www. ksl. org http: //www. itiltraining. com

What is ITIL? • ITIL = “Information Technology Infrastructure Library” • A Library of Processes books outlining “good practice” for managing IT Infrastructure. • A set of ready-made “how to” references. • ITIL IS A NON-PRESCRIPTIVE REFERENCE • ITIL® is a Registered Trade Mark, and a Registered Community Trade Mark of the Office of Government Commerce, and is Registered in the U. S. Patent and Trademark Office • ITIL revision 3 released in June 2007, although many people still prefer version 2 at this time. • A British Standard (BS 15000) certification (BS 25000 to come). • Linked to ISO 9000 Quality Certification, ISO 20000

The ITIL V 2 Core Books: IT Service Management Service Delivery • • Capacity Management Availability Management • IT Service Continuity Management. • Service Level Management • IT Financial Management Service Support • Service Desk • • Incident Management Problem Management • • • Change Management Release Management Configuration Management User Support Control Processes

EXAMPLE: Process to manage CHANGE Request for Change Review Log RFC Inform Users Assess Priority Approval Impact Analysis Change Scheduling Categorize Testing Plans

Some Best Practices in the ITIL Library • How to get the best benefit from a SERVICE DESK – Single point of contact, Monitoring and escalation on behalf of customers. • A systematic way of managing INCIDENTS: – Log / Classify / Investigate / Diagnose / Resolution • Being Pro-Active: PROBLEM MANAGEMENT – Root Cause Analysis, Kepner & Tregoe Analysis, Ishikawa diagrams. • Stopping dangerous changes: CHANGE & RELEASE MANAGEMENT – Impact Analysis and Authorisation before Changes • • Keeping track of IT Assets: CONFIGURATION MANAGEMENT Being Customer-Focused: SERVICE LEVEL MANAGEMENT • FINANCIAL MANAGEMENT: Charge-back to reflect the cost to the Business. CAPACITY: Prediction instead of Panic AVAILABILITY Design for continual up-time IT SERVICE CONTINUITY: DR / BCP Risk Assessment and Planning • • •

The new V 3 “SERVICE LIFECYCLE” Books • Service Strategies – The vision and value of service management practice, Planning to implement service management, Establishing a new Service • Service Design – How to put in place IT processes, policies, architectures and documents, Roles and Responsibilities, Insource/Outsource issues • Service Transition – Implementing Service Management, Managing Organizational and Cultural change • Service Operations – Delivery and Control processes to manage Services, Application Management, Infrastructure, Operations Management, • Continual Service Improvement – How to improve service quality, Introducing new service management improvements, Service Retirement

Using ITIL version 3 • • ITIL remains non-prescriptive. Executive-level Summary document now available. More guidance on optimal Organizational structures. How to deal with Cultural Issues when implementing ITIL. Addresses IT Governance. Practices for In-sourcing, Outsourcing and Multi-Sourcing. Contains ROI justification for introducing ITIL practices. • • • Reflects the “Life Cycle” of Services. No radical changes to Service Support and Service Delivery. Business Case examples, Case Studies, Templates. Linked to other Best Practices (COBIT, CMMI, Six-SIGMA) Some Guidance on how to evaluate suitable software tools. See: http: //www. itsmacademy. com

CMMi Source: What Stage is your Intranet Portal In? http: //blogs. sun. com/portal/date/20071010

IT’s all a question of MATURITY • Level 1 – Initial – Processes are usually ad hoc. Success depends on the competence and heroics of the people in the organization. • Level 2 - Repeatable [Managed] – Successes are repeatable. Existing practices are retained during times of stress. • Level 3 - Defined – The organization’s set of standard processes, which are the basis for level 3, are established and improved over time. • Level 4 - Quantitatively Managed – Using precise measurements, management can effectively control the effort, and can identify ways to adjust and adapt • Level 5 - Optimizing – Continually improving process performance through both incremental and innovative technological improvements.

Some Process Areas which need to be Mature. . . • “Engineering” – – – REQM - Requirements Management RD - Requirements Development TS - Technical Solution PI - Product Integration VER - Verification VAL - Validation (2) (3) (3) (3) • “Support” – – – CM - Configuration Management PPQA - Process and Product Quality Assurance MA - Measurement and Analysis DAR - Decision Analysis and Resolution CAR - Causal Analysis and Resolution (2) (2) (3) (4) Engineering + Support + Project Management + Process Management

And More Process Areas. . . • Project Management – – – PP - Project Planning PMC - Project Monitoring and Control SAM - Supplier Agreement Management IPM - Integrated Project Management +IPPD RSKM - Risk Management QPM - Quantitative Project Management (2) (2) (3) (4) • Process Management – – – OPD - Organizational Process Definition +IPPD OPF - Organizational Process Focus OT - Organizational Training OID - Organizational Innovation and Deployment OPP - Organizational Process Performance (3) (3) (4) Engineering + Support + Project Management + Process Management

How CMMi Concepts can help • The Concept of “Maturity” is a valuable way of assessing your own organisation. – (Even if you do not want to use the whole CMMi Model). • CMMi emphasis comes originally from the Development Project Life-Cycle, although it references the Production side. • “roll your own” Maturity.

COBIT Source: http: //www. itsmf. org. sg

Control OBjectives for Information and Related Technology • Audit Based way of assessing IT Projects specifically. • Emphasis on Governance, and defining IT Controls. • Often used in SOX assessments. • Also has it’s own maturity model. . . • Basic Framework for managing IT: – – Plan and Organise Acquire and Implement Delivery and Support Monitor and Evaluate

COBIT Structure • Plan and Organization – – – – PO 1 Define a Strategic IT Plan and direction PO 2 Define the Information Architecture PO 3 Determine Technological Direction PO 4 Define the IT Processes, Organization and Relationships PO 5 Manage the IT Investment PO 6 Communicate Management Aims and Direction PO 7 Manage IT Human Resources, PO 8 Manage Quality PO 9 Assess and Manage IT Risks , PO 10 Manage Projects • Acquire and Implement – – – AI 1 Identify Application Software AI 3 Acquire and Automated Solutions AI 2 Acquire and Maintain , A 13 Maintain Technology Infrastructure AI 4 Enable Operation and Use , AI 5 Procure IT Resources AI 6 Manage Changes , AI 7 Install and Accredit Solutions & Changes

COBIT Structure (cont) • Delivery and Support – DS 1 Define and Manage Service Levels , DS 2 Manage Third-party Services – DS 3 Manage Performance and Capacity, DS 4 Ensure Continuous Service , DS 5 Ensure Systems Security – DS 6 Identify and Allocate Costs – DS 7 Educate and Train Users, DS 8 Manage Service Desk and Incidents , DS 9 Manage the Configuration , DS 10 Manage Problems , DS 11 Manage Data , DS 12 Manage the Physical Environment , DS 13 Manage Operations • Monitor and Evaluate – – ME 1 Monitor and Evaluate IT Processes ME 2 Monitor and Evaluate Internal Control ME 3 Ensure Regulatory Compliance ME 4 Provide IT Governance

COBIT and ITIL. . ? • ITIL V 3 references COBIT, and it can be argued that these are closely aligned. • The emphasis in ITIL is on Continuous Improvement of Service Operations, whereas COBIT is primarily concerned with Governance (mainly of Projects).

6 -SIGMA 6 -σ www. isixsigma. com “Variation there will always be, between people, in output, in service, in product. What is the variation trying to tell us? ” W. Edwards Deming

Process Variation leads to poor performance • Process Outputs Vary: – Common Cause Variation – Attributed • How to tell the difference? 99% of Values within 3 Standard Deviations Process Management International www. pmi. co. uk

graphs

The mythical 3. 4 defects per Million

The Six-Sigma Process Improvement Cycle • • Select Priorities Learn about the Process Investigate Sources of Variation Test Theories Study Results Implement Standardise Review DEFINE – MEASURE – ANALYSE – IMPROVE - CONTROL

Using Six-Sigma • Although Six-Sigma originated in the field of Engineering, it is a practical Project Approach which can be used for improving IT Processes. • Some aspects of Six-Sigma are also referenced in ITIL, including: – PDSA cycle (“PDCA”) – Root Cause Analysis

LEAN Value: “Something a process contributes that makes a product or service valuable in the eyes of the customer and which they are prepared to pay for”

Identifying “Waste” in Processes Value Adding? Value Enabling? Is this Task Contributing to what the Customer will pay for?

Seven Wastes • Overproduction: – Producing ahead of what's actually needed by the next process • Waiting: – Operators standing idle, equipment fails, needed parts fail to arrive. • Conveyance: – Moving parts and products unnecessarily. • Processing: – Performing unnecessary or incorrect processing. • Inventory: – Having more than the minimum stocks necessary for a pull system. • Motion: – Movements, such as looking for parts, tools, documents, etc. • Correction: – Inspection, rework, and scrap.

LEAN Thinking • LEAN is often used alongside Six Sigma. • Focuses on the causes of processes being inefficient. • Although it originate in the engineering disciplines, it can be used effectively to reduce the “cycle time” of IT processes.

MOPS After the Project goes Live…. … the real problems begin… MOPS™ : Managing IT Production

IT Management = Management AND IT • MOPS is an attempt to integrate a number of different methodologies and approaches and apply them to the technical challenges of managing IT Production. • METRICS – Publish what IT Production does to get business buy-in – Measure what you do in order to manage the teams • OPERATIONAL TOOLS – Chose software to improve your ability to manage the infrastructure – “Referential” approach to standardise reporting across teams • PROCESSES AND PROCEDURES – Use ITIL pragmatically as a start, Six-Sigma / LEAN to improve, and interface with Development Project processes. • STANDARDS – Chose Technologies based on “Production-ready” criteria to optimise the costs of Production Support. www. mops. uk. com www. dennisadams. co. uk/mops. htm

Conclusions

Dennis Adams associates Management and Infrastructure SIG Meeting ITIL, CMMI, MOPS, six-Sigma, LEAN. . (where to start? ) A Voyage Thru the Acronyms. Dennis Adams 17 th June 2008