Service Transition
2. Service Management as a Practice
2.1 WHAT IS SERVICE MANAGEMENT
Service Management is a set of specialized organizational capabilities for providing value to customers in the form o services. The capabilities take the form of functions and processes for managing services over a lifecycle, with specializations in strategy, design, transition, operation and continual improvement. The capabilities represent a service organization's capacity, competency and confidence for action. The act of transforming resources into valuable services is at the core of Service Management. Without these capabilities, a service organization is merely a bundle of resources that by itself has relatively low intrinsic value for customers.
Service Management
'A set of specialized organizational capabilities for providing value to customers in the form of services.'
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Organizational capabilities are shaped by the challenges they are expected to overcome. An example of this is how in the 1950s Toyota developed unique capabilities to overcome the challenge of smaller scale and financial capital compared to its American rivals. Toyota developed new capabilities in production engineering, operations management and managing suppliers to compensate for its inability to afford large inventories, make components, produce raw materials or own the companies that produced them (Magretta 2002). Service Management capabilities are similarly influenced by the following challenges that distinguish services from other systems of value creation such as manufacturing, mining and agriculture:
- The intangible nature of the output and intermediate products of service processes; this is difficult to measure, control and validate (or prove).
- Demand is tightly coupled with customer's assets; users and other customer assets such as processes, applications, documents and transactions arrive with demand and stimulate service production.
- High level of contact for producers and consumers of services; there is little or no buffer between the customer, the front-office and back-office.
- The perishable nature of service output and service capacity; there is value for the customer from assurance on the continued supply of consistent quality. Providers need to secure a steady supply of demand from customers.
Service Management, however, is more than just a set of capabilities. It is also a professional practice supported by an extensive body of knowledge, experience and skills. A global community of individuals and organizations in the public and private sectors fosters its growth and maturity. Formal schemes exist for the education, training and certification of practising organizations and individuals influence its quality. Industry best practices, academic research and formal standards contribute to its intellectual capital and draw from it.
The origins of Service Management are in traditional service businesses such as airlines, banks, hotels and phone companies. Its practice has grown with the adoption by IT organizations of a service-oriented approach to managing IT applications, infrastructure and processes. Solutions to business problems and support for business models, strategies and operations are increasingly in the form of services. The popularity of shared services and outsourcing has contributed to the increase in the number of organizations that are service providers, including internal organizational units. This in turn has strengthened the practice of Service Management and at the same time imposed greater challenges on it.
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2.2 WHAT ARE SERVICES?
2.2.1 The Value Proposition
Service
'A means of delivering value to customers by
facilitating outcomes customers want to achieve without the ownership of specific costs and risks.'
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Services are a means of delivering value to customers by facilitating outcomes customers want to achieve without the ownership of specific costs and risks. Services facilitate outcomes by enhancing the performance of associated tasks and reducing the effect of constraints. The result is an increase in the probability of desired outcomes (Figure 2.1).
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| Figure 2.1 A conversation about the definition and meaning of services |
2.3 FUNCTIONS AND PROCESSES ACROSS THE LIFECYCLE
2.3.1 Functions
Functions are units of organizations specialized to perform certain types of work and responsible for specific outcomes. They are self-contained with capabilities and resources necessary to their performance and outcomes. Capabilities include work methods internal to the functions. Functions have their own body of knowledge, which accumulates from experience. They provide structure and stability to organizations.
Functions are means to structure organizations to implement the specialization principle. Functions typically define roles and the associated authority and responsibility for a specific performance and outcomes. Coordination between functions through shared processes is a common pattern in organization design. Functions tend to optimize their work methods locally to focus on assigned outcomes. Poor coordination between functions combined with an inward focus leads to functional silos that hinder alignment and feedback critical to the success of the organization as a whole. Process models help avoid this
problem with functional hierarchies by improving crossfunctional coordination and control. Well-defined processes can improve productivity within and across functions.
2.3.2 Processes
Processes are examples of closed-loop systems because they provide change and transformation towards a goal, and use feedback for self-reinforcing and self-corrective action (Figure 2.2). It is important to consider the entire process or how one process fits into another.
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| Figure 2.2 A basic process |
Process definitions describe actions, dependencies and sequence. Processes have the following characteristics:
- They are measurable. We are able to measure the process in a relevant manner. It is performance driven. Managers want to measure cost, quality and other variables while practitioners are concerned with duration and productivity.
- They have specific results. The reason a process exists is to deliver a specific result. This result must be individually identifiable and countable. While we can count changes, it is impossible to count how many service desks were completed.
- They deliver to customers. Every process delivers its primary results to a customer or stakeholder. They may be internal or external to the organization but the process must meet their expectations.
- They respond to a specific event. While a process may be ongoing or iterative, it should be traceable to a specific trigger.
Functions are often mistaken for processes. For example, there are misconceptions about capacity management being a Service Management process. First, capacity management is an organizational capability with specialized processes and work methods. Whether or not it is a function or a process depends entirely on organization design. It is a mistake to assume that capacity management can only be a process. It is possible to measure and control capacity and to determine whether it is adequate for a given purpose. Assuming that is always a process with discrete countable outcomes can be an error.
2.3.3 Specialization And Coordination Across The Lifecycle
Specialization and coordination are necessary in the lifecycle approach. Feedback and control between the functions and processes within and across the elements of the lifecycle make this possible. The dominant pattern in the lifecycle is the sequential progress starting from Service Strategy (SS) through Service Delivery (SD)-Service Transition (ST)-Service Operation (SO) and back to SS through Continual Service Improvement (CSI). That, however, is not the only pattern of action. Every element of the lifecycle provides points for feedback and control.
The combination of multiple perspectives allows greater flexibility and control across environments and situations. The lifecycle approach mimics the reality of most organizations where effective management requires the use of multiple control perspectives. Those responsible for the design, development and improvement of processes for Service Management can adopt a process-based control perspective. For those responsible for managing agreements, contracts and services may be better served by a lifecycle-based control perspective with distinct phases. Both these control perspectives benefit from systems thinking. Each control perspective can reveal patterns that may not be apparent from the other.
2.4 SERVICE TRANSITION FUNDAMENTALS
2.4.1 Purpose, Goals, And Objectives
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| Figure 2.3 The Scope of Service Transition |
The purpose of Service Transition is to:
- Plan and manage the capacity and resources required to package, build, test and deploy a release into production and establish the service specified in the customer and stakeholder requirements
- Provide a consistent and rigorous framework for evaluating the service capability and risk profile before a new or changed service is released or deployed
- Establish and maintain the integrity of all identified service assets and configurations as they evolve through the Service Transition stage
- Provide good-quality knowledge and information so that change, Release and Deployment Management can expedite effective decisions about promoting a release through the test environments and into production
- Provide efficient repeatable build and installation mechanisms that can be used to deploy releases to the test and production environments and be rebuilt if required to restore service
- Ensure that the service can be managed, operated and supported in accordance with the requirements and constraints specified within the Service Design.
The goals of Service Transition are to:
- Set customer expectations on how the performance and use of the new or changed service can be used to enable business change
- Enable the business change project or customer to integrate a release into their business processes and services
- Reduce variations in the predicted and actual performance of the transitioned services
- Reduce the known errors and minimize the risks from transitioning the new or changed services into production
- Ensure that the service can be used in accordance with the requirements and constraints specified within the service requirements.
The objectives are to:
- Plan and manage the resources to establish successfully a new or changed service into production within the predicted cost, quality and time estimates
- Ensure there is minimal unpredicted impact on the production services, operations and support organization
- Increase the customer, user and Service Management staff satisfaction with the Service Transition practices including deployment of the new or changed service, communications, release documentation, training and knowledge transfer
- Increase proper use of the services and underlying applications and technology solutions
- Provide clear and comprehensive plans that enable the customer and business change projects to align their activities with the Service Transition plans.
2.4.2 Scope
The scope of Service Transition includes the management and coordination of the processes, systems and functions to package, build, test and deploy a release into production and establish the service specified in the customer and stakeholder requirements.
The scope of the Service Transition lifecycle stage is shown in Figure 2.3. Service Transition activities are shown in the white boxes. The black boxes represent activities in the other ITIL core publications.
There may be situations when some activities do not apply to a particular transition. For example the transfer of a set of services from one organization to another may not involve release planning, build, test and acceptance.
The following lifecycle processes in this publication support all lifecycle stages:
- Change Management
- Service Asset and Configuration Management
- Knowledge Management.
Service Transition uses all the processes described in the other ITIL publications as it is responsible for testing these processes, either as part of a new or changed service or as part of testing changes to the Service Management processes. Service level management is important to ensure that customer expectations are managed during Service Transition. Incident and problem management are important for handling incidents and problems during testing, pilot and deployment activities.
The following activities are excluded from the scope of Service Transition best practices:
- Minor modifications to the production services and environment, e.g. replacement of a failed PC or printer, installation of standard software on a PC or server, or a new user
- Ongoing Continual Service Improvements that do not significantly impact the services or service provider's capability to deliver the services, e.g. request fulfilment activities driven from Service Operations.
2.4.3 Value To Business
Effective Service Transition can significantly improve a service provider's ability to handle high volumes of change and releases across its customer base. It enables the service provider to:
- Align the new or changed service with the customer's business requirements and business operations
- Ensure that customers and users can use the new or changed service in a way that maximizes value to the business operations.
Specifically, Service Transition adds value to the business by improving:
- The ability to adapt quickly to new requirements and market developments ('competitive edge')
- Transition management of mergers, de-mergers, acquisitions and transfer of services
- The success rate of changes and releases for the business
- The predictions of service levels and warranties for new and changed services
- Confidence in the degree of compliance with business and governance requirements during change
- The variation of actual against estimated and approved resource plans and budgets
- The productivity of business and customer staff because of better planning and use of new and changed services
- Timely cancellation or changes to maintenance contracts for hardware and software when components are disposed or de-commissioned
- Understanding of the level of risk during and after change, e.g. service outage, disruption and re-work.
2.4.4 Optimizing Service Transition Performance
Service Transition, in order to be effective and efficient, must focus on delivering what the business requires as a priority and doing so within financial and other resource constraints.
2.4.4.1 Measurements For Alignment With The Business And It Plans
The Service Transition lifecycle stage and release plans need to be aligned with the business, Service Management and IT strategies and plans.
Typical measures that can be used in measuring this alignment are:
- Increased percentage of Service Transition plans that are aligned with the business, IT, Service Management strategies and plans
- Percentage of customer and stakeholder organizations or units that have a clear understanding of the Service Transition practice and its capabilities
- Percentage of service lifecycle budget allocated to Service Transition activities
- Index of quality of the plans including adherence to structured approach, compliance with the plan templates and completeness of the plans
- Percentage of planning meetings where stakeholders have participated
- Percentage of Service Transition plans that are aligned with the Service Transition policy
- Percentage of strategic and tactical projects that adopt the Service Transition service practices
- Percentage of release planning documents that are quality assured by the Service Transition function or role.
2.4.4.2 Measurements for Service Transition
Measuring and monitoring the performance of the Service Transition lifecycle stage should focus on the delivery of the new or changed service against the predicted levels of warranty, service level, resources and constraints within the Service Design or release package. Measurements should therefore be aligned with the measures for Service Design, and may include the variation in predicted vs actual measures for:
- Resources utilization against capacity
- Capabilities
- Warranties
- Service levels
- Cost against approved budget
- Time
- Quality of service, e.g. satisfaction rating or service levels met, breached and near misses
- Value
- Errors and incidents
- Risks.
Examples of other measures to optimize the performance of Service Transition are:
- Cost of testing and evaluation vs cost of live incidents
- Delays caused by Service Transition, e.g. lack of Service Transition resources
- Operational problems that could have been identified by the Service Transition processes
- Stakeholder satisfaction with the transition stage
- Cost savings by targeted testing of changes to the Service Design
- Reduction in urgent or late changes and releases - reducing unplanned work
- Reduced cost of transitioning services and releases - by type
- Increased productivity of staff
- Increased re-use and sharing of service assets and Service Transition process assets
- More motivated staff and improved job satisfaction
- Improved communications and inter-team working (IT, customer, users and suppliers)
- Enhanced performance of Service Transition processes.
2.4.5 Interfaces To Other Service Lifecycle Stages
Service Transition 'sits between' Service Design and Service Operations in the service lifecycle and the major day-today interfaces are with those stages. However, there is interface with all of the other service lifecycle stages, delineated by inputs and outputs that flow between them.
2.4.5.1 Inputs To Service Transition
Inputs from Service Strategy influence the overall approach, structures and constraints that apply to Service Transitions and include:
- Service Portfolio
- Customer portfolio
- Contract portfolio
- Service Lifecycle model
- Policies
- Strategies
- Constraints
- Architectures
- Service Transition requirements
- Service Management Plan (as required by ISO/IEC 20000).
Service Design is the principal source of the triggers that initiate work elements within the Service Transition lifecycle stage, i.e. they input the Service Design packages that need to be transitioned. The Service Design package includes:
- Service definition
- Service structure (including core and supporting services)
- Financial/economic/cost model (with Total Cost of Ownership/Total Cost of Utilization)
- Capacity/resource model - combined with performance and availability
- Service Management integrated process model (as in ISO/IEC 20000)
- Service Operations model (includes support resources, escalation procedures and critical situation handling procedures)
- Design and interface specifications
- Release design
- Deployment plan
- Acceptance Criteria - at all levels at which testing and acceptance have been foreseen
- Requests for Change (RFCs) to instigate required changes to the environment within which the service functions or will function.
The key input, in terms of initiating action, which would normally be channelled through Service Design is the authorization to start Service Transition (e.g. RFC). However this authorization may come directly from the business customers, through a strategy change or from audit or Continual Service Improvement (CSI).
Continual Service Improvement will deliver inputs in terms of suggested improvements to transition policy, practices and processes, based on audit and other improvement exercises, possibly in liaison with customer and other stakeholders via techniques such as a stakeholder survey.
Service Operation will provide input to testing and especially to service acceptance in terms of establishing whether operations requirements have been met before handover can be made.
2.4.5.2 Outputs from Service Transition
The clearest set of outputs from Service Transition are to Service Operations and the customer and user community to whom services are delivered following successful Service Transition. These outputs include:
- Approved service release package and associated deployment packages
- Updated Service package or service bundle that defines the end-to-end service(s) offered to customers
- Updated Service Portfolio and service catalogue
- Updated contract portfolio
- Documentation for a transferred or decommissioned service.
Outputs to Continual Service Improvement will comprise suggestions and observations on changes required to improve processes, especially those within Service Design and Service Transition, but possibly also within Service Strategy and in business processes and relationship management.
2.4.6 Processes within Service Transition
There are two types of significant Service Management process that are described in this publication as indicated below.
2.4.6.1 Processes That Support The Service Lifecycle
The first group are whole service lifecycle processes that are critical during the transition stage but influence and support all lifecycle stages. These comprise:
- Change Management
- Service Asset and Configuration Management
- Knowledge Management.
2.4.6.2 Processes within Service Transition
The following processes are strongly focused within the Service Transition stage:
- Transition Planning and Support
- Release and Deployment Management
- Service Testing and Validation
- Evaluation.
