Lesson 2 Study Guide

Lesson 2Service Management As A Prac�ce

ITIL® V2-V3 Manager’s Bridge

Lesson 2 Study Guide – Service Management As a Practice

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Welcome to the second chapter of your ITIL Training Zone Study Guide. This document is supplementary to the information available to you online, and should be used in conjunction with the videos, quizzes and exercises. After your subscription to the course has finished online, you will still have the study guide to help you prepare for the V2 to V3 Manager’s Bridge exam - if you’ve not taken the exam by the time your subscription expires. At the end of each Lesson as you progress through the course, you’ll be prompted to download a new chapter of the Study Guide. By the end of the course, you’ll have 9 chapters that build up into the full guide. This Chapter contains the Study Guide information for Lesson 2 – Service Management as a Practice. Use this Study Guide in conjunction with your own notes that you make as you progress through the course. You may prefer to print it out, or use it on screen. After each Lesson, you can consolidate what you have learnt whilst watching the videos and taking the quizzes by reading through the chapter of the Study Guide. If you progress on to do the V2 – V3 Manager’s Bridge exam, your Study Guide will provide you with vital revision information. Remember, your Study Guide is yours to keep, even after your subscription to the ITIL Version 2 – Version 3 Manager’s Bridge Course has finished.

Lesson 2 – Service Management as a Practice Introduction





Study Guide Icons 3

Lesson 2 Overview 4

Review Session – ITIL Version 2 (Including Exercise) 5

Key Concepts 8

The Service Lifecycle 11

Exercise – The Service Lifecycle 22

Roles and Responsibilities – The Service Owner 23

The RACI Model 26

Service Management Organisational Issues 28

Service Operation Organisational Structures 31

Key Concept – Risk 33

Lesson Review 35

Table of Contents





Watch out for these icons as you use your Study Guide. Each icon highlights an important piece of information.

Tip – this will remind you of something you need to take note of, or give you some exam guidance.

Definition – key concept or term that you need to understand and remember.

Role – a job title or responsibility associated with a process or function.

Exercise Solution – suggested solution to one of the exercises you will complete throughout the course.

Goal or Objective – for a particular process or core volume.

Study Guide Icons





In this Lesson, you studied the value of Service Management as well as some of the key concepts that you need to understand for the rest of the course. These included: Definition of good practice Definition of a service Definition of service management

You also did a review exercise to see what you could remember from your Manager’s Course, and studied the goals and objectives of each of the five core volumes of the new Version 3 Lifecycle.

Remember As long as your subscription to ITIL Training Zone is live, you can contact your tutor to ask any questions you may have about the course. Email: [email protected]

Lesson 2 – Service Management as a Practice

mailto:[email protected]





The first part of this Lesson was a review exercise, to see how much you could remember from your Version 2 Manager’s course. The exercise is reproduced below, with some suggestions for the solution following. If you didn’t manage to complete the exercise while watching the video, spend fifteen to twenty minutes doing it now. The exercises throughout the course are an important part of your studying.

Exercise The Version 2 ITIL qualification scheme focused on the 10 core processes and 1 function. These processes and function were divided into Service Support and Service Delivery. The Service Support area comprised: The Service Desk Configuration Management Incident Management Problem Management Change Management Release Management

The Service Delivery area comprised: Availability Management Capacity Management Service Level Management IT Service Continuity Management Financial Management for IT Services

For each process or function, try and remember the goal, and five key facts.

Review Session – ITIL Version 2





Exercise Solution Below are three suggested examples. If you found this exercise particularly challenging, spend some time working with the Version 2 review document supplied in your download area. This will help to refresh your memory. The Service Desk The goal of the Service Desk is to provide a single point of contact of excellent customer service and to restore service to users as quickly as possible. Five key facts you might remember about the Service Desk could include: It can be structured centrally, locally or virtually It is a single point of contact It is responsible for ownership of incidents It needs access to a knowledge base It can be hard to retain quality staff on the Service Desk

Incident Management Incident Management is the process typically used by the service desk, and aims to restore service to the user as quickly as possible, minimising business impact. The Service Desk maintains end to end ownership of

Incidents The Incident lifecycle includes categorisation and

prioritisation of Incidents Priority is based on Impact and Urgency Incident resolution may be done by any team – but an

Incident can only be closed by the Service Desk, with the users permission

Recurring Incidents may provide valuable trending information for Problem Management

Capacity Management





The goal of Capacity Management is to provide cost justifiable levels of Capacity that match or exceed the current and future needs of the business. Capacity Management has three sub processes – Business,

Service and Resource Capacity Management (note – Resource is now Component Capacity Management within Version 3)

Capacity Management may store information in the Capacity Database or CDB

Capacity Management produces a Capacity Plan on an annual basis

Capacity Management will use information from Configuration Management to help it plan and monitor Capacity

Capacity Management may include techniques such as Demand Management, Poisson Distribution and Modelling

Remember, if you found this exercise challenging or have any questions, you can email a tutor at [email protected].

mailto:[email protected]





Good Practice Good Practice is something that builds up within organisations, industries and people, and can be used to make sure that organisations don’t have to reinvent the wheel and start building up their own internal good practice from nothing.

Good Practice

Good Practice is defined as an accepted way of doing something well.

Good practice can come from a number of sources. Organisations can take good practice from public frameworks like ITIL or other sources such as the knowledge of their employees and use it to develop efficient ways of working. Good practice is not necessarily prescriptive – it doesn’t force an organisation to comply with certain methodologies, but it can provide a tool kit that can be adapted and altered to improve the way an organisation works. There are often international standards that are built on good practice, for example ISO20000, the international standard for service management. These are prescriptive, and stipulate what must be in place to comply with the standard. However, good practice does not have to be documented in a standard. By adopting good practice, organisations can stay competitive by making sure that they stay in step with the rest of their market sector. Organisations can use good practice to develop their own internal methodologies and working standards. Good practice should be documented to ensure it can be shared within organisations – for this reason good practice is preferable to the ‘proprietary knowledge’ that builds up in people’s heads and isn’t documented.

Key Concepts





This diagram from the ITIL manuals shows you the many sources of good practice.

Sourcing of service management good practice (Service Strategy fig. ref. 1.1) “© Crown copyright 2008 Reproduced under licence from OGC “

This diagram shows how sources of good practice are picked up and transmitted to organisations by enablers like customers, suppliers and technologies. ITIL is classed as a public framework, and is thus a source of good practice. These elements of good practice are then run through individual organisational filters like the regulations that we have to comply with and what our competitors are doing, which transforms them into a set of good practice that is fit for use within our own organisation. We need to be careful about where we get good practice from and whether it is truly fit for purpose. Good practice normally starts out as best practice, which is a proven and effective way of doing something. As best practice becomes more widely adopted, it changes into good practice before becoming generally accepted knowledge.

Competition

Compliance

Commitments

Employees

Customers

Suppliers

Advisors

Technologies

Standards

Industry practices

Academic research

Training & education

Internal experience

Substitutes

Regulators

Customers

Sources (Generate)

Drivers (Filter)

Enablers (Aggregate)

Scenarios (Filter)

Knowledge fit for business objectives, context, and purpose





The Definition of a Service

Service

A service is defined as a means of delivering value to customers by facilitating outcomes that customers want to achieve, without the ownership of specific costs & risks.

This definition is vital throughout all of the Version 3 lifecycle. Try to think about what the services are within your own organisation. Are you a service provider or a customer? You might be both!

The Definition of Service Management

Service Management

Service Management is a set of specialised organisational capabilities for delivering value to customers in the form of services.

In essence, Service Management is how we use our skills to transform the resources we have into valuable services that support the business and allow organisations to work effectively, and also covers the processes we use to make sure our services are delivered consistently and meet the business requirements. If you think back to the ITIL definition of a service, it’s important that we deliver services that provide value to the customer. Service Management is made up of processes and functions that help deliver IT services, and service management becomes more effective as it matures and learns. Service management should always be aligned with the business and will use resources to help the business meet its objectives. Service Management is defined as a Strategic Asset within ITIL. Remember, the ITIL definition of Service Management is that Service Management is a set of specialised organizational capabilities for providing value to customers in the form of Services.

Tip – you’ll need to understand and recognise these key concepts

and definitions for your exam. Make sure you could recognise the definitions of Service and Service Management if they formed part of a question, as well as understanding where Good Practice comes from.





ITIL Version 3 is based around five core volumes which form the Service Lifecycle. The diagram below shows the Service Lifecycle. You can see how the five core volumes fit together. The diagram is circular because it represents the full service lifecycle.

The ITIL Core Lifecycle (based on SS Fig.1.2 The ITIL Core) “© Crown copyright 2008 Reproduced under licence from OGC”

The Service Lifecycle





This Lesson also included a brief overview of the scope and responsibility of each area of the lifecycle, before you started to study each one in more depth. You’ll notice colour coding throughout the course – this matches the colour coding in the core volumes. This will help you to ‘place’ information as you learn.

Service Strategy makes all the high level decisions that influence everything we

do within Service Management. Service Strategy is set by senior management and influenced by the business strategy, and affects everyone within the organisation.

Service Design. Service Strategy has set some core policies – such as what

services we offer, and to whom. Service Design builds the services, and makes sure they work individually as well as within the environment they will be deployed into. If Service Design isn’t done well, it can mean the service never works properly and resources are wasted.

Service Transition. Service Transition is responsible for seamlessly and

smoothly deploying new or changed services into the live environment. Again, Service Transition seeks to protect the live environment and make sure the new or changed service works from day one.

Service Operation. This is where all the day to day activities are discussed –

everything that is essential to keep live services up and running.

Continual Service Improvement. This volume has an interface with every

other book in the lifecycle and is responsible for making sure we are always improving. Continual Service Improvement takes place right through the service lifecycle.

Tip – You’ll find the Service Lifecycle diagram on a document in your

Download Area. Make sure you download it before you progress to the next Lesson on the course – you might want to display it in your study area.





An important part of understanding ITIL Version 3 is recognition of the goals and objectives of each area of the lifecycle. This section of your Study Guide reviews the goal and objectives of each of the five core volumes. Service Strategy looks at the design, development and implementation of Service Management, enabling it to act as a strategic asset that supports the organisation.

Service Strategy Goal The goal of Service Strategy is to enable Service Providers to think strategically and achieve goals and objectives using strategic assets.

By having a clear understanding of their strategic goals, organisations will be able to see the relationships between various services, systems or processes they manage and the business models, strategies or objectives they support. This ensures the services stay aligned to business requirements. Service Strategy ensures that we make reasoned decisions about the types of services we provide, rather than constantly reacting to changes in the environment and our organisations. Service Strategy sees how everything fits together, including the people, processes and technology, and how this translates into services. Service Strategy also has a number of core objectives. These objectives relate to making the decisions that dictate the way the rest of the Service Lifecycle works.

The Service Lifecycle – Goals and Objectives

Service Strategy





Service Strategy Objectives The objectives of service strategy are defined as questions, such as: • What services do we need to offer? • Who is using our services? • How do we define quality? • Where should we invest money and resources? • How do we share money and resources between services?





Service Design Goal The goal of Service Design is to provide guidance for the design and development of services and service management processes.

The scope of Service Design is not limited to new services, but can cover large changes to existing services. Service Design takes an holistic approach. This means that it is concerned with designing the new service, but also considers the environment that the service will be working within. A successfully designed service will meet the customer requirements and perform well within the existing infrastructure. Successful design also means something that can be easily managed throughout the full service lifecycle. A service that meets the customer requirements but is laborious and expensive to operate and improve is unlikely to be considered an example of successful design. Many organisations design services on a one by one basis, responding to individual needs and requirements. This way of working means that lessons are not necessarily learnt by the organisation as a whole and the overall design process isn’t able to respond to feedback. A lesson that is learnt in one project or silo may not be shared across the rest. Service Design also needs to consider what the business values and respond accordingly. Some business will value speed of design, others economic use of resources.

Service Design





Service Design’s objectives are to:

Design Services to satisfy Business objectives

Design effective & efficient processes for the design, transition, operation and improvement of high quality IT Services

Ensure risks to Services are identified and managed / mitigated

Design metrics & measures for Service assessment

Design secure & resilient IT Infrastructures

The objectives of Service Design reinforce the goal. The objectives of this core volume are to make sure that new or changed Services meet Business objectives and to make sure that all services are efficiently developed and updated. Risks are identified and countermeasures are implemented if required, and Service Design also looks at designing in measures and metrics and sets the policies for the required levels of security and resilience. Think about the services you have seen throughout your career or that you are aware of from day to day life. Bad design can lead to services that never perform effectively or fulfil their potential. Retail websites, for example, can offer a huge range of goods sold at cheap prices, but no one will use them if they have no security built in for customer information. Effective Service Design delivers value to the organisation in many ways. Some of the main areas are shown in the table below.

Service Design Value

Reduced total cost of ownership (TCO) –

throughout the service lifecycle Delivery of consistent, quality services Delivery of services aligned to customer

requirements Delivery of high performing services Improved IT governance, service management

and processes Improved decision making





Service Transition Goal Service Transition provides guidance for the development and improvement of Capabilities for transitioning new and changed Services into Operations.

Service Transition Objectives Service Transition’s objective is to:

Plan & manage resources for new/changed Services

Meet predicted cost, quality & time estimates

To ensure minimal impact on the Production Services

To increase Customer satisfaction

Provide clear & comprehensive plans for future Business use

Think about what you have seen in organisations that you may have worked with. Many organisations have silos for development and operational management that don’t communicate well, so service transitions are not done effectively. Service Transition ensures that this process is managed and that knowledge is transferred from development into the live environment. By implementing effective Service Transition, interfaces between development and operations can be improved and the whole service provider organisation will work together more effectively.

Tip – A transition isn’t just a completely new service going live.

The term transition also covers large changes to existing services, retirement of a live service and transfer of a service to or from an external service provider.

Service Transition





Service Transition delivers value in a number of ways.

Service Transition Value

Organisations become more adept at

dealing with high volumes of change Checks and balances are put n place to

ensure new or changed services are aligned to business requirements

Customers do not have to wait for new or improved functionality





Service Operation is the fourth book in the lifecycle, and deals with management of live services – the business as usual activities required to keep day to day services stable. Effective Service Operation is vital for effective Service Management. Services can be well designed and transitioned smoothly, but they still need to be managed in the live environment to ensure they keep working well.

Service Operation Goal To undertake the activities & processes that manage & deliver Services at agreed levels to Business Users & Customers. To manage the technology used to deliver the Services and to collect information on performance & Service metrics.

Service Operation Objectives Service Operation’s objective is to:

Deliver Services to levels agreed with the Business

Manage the day-to-day activities & processes

Monitor on-going performance

Manage the Service technology

Harvest data & report against the agreed metrics

Service Operation





Service Operation Value

Improved access to services available to the business through effective Incident and Problem Management

Operational costs are identified and managed, and resources are deployed effectively

Information is produced to help support business cases for investment in Service Operation

Live services are managed and protected, and proactive work is carried out





The last book in the Version 3 lifecycle is Continual Service Improvement. This book interacts with all the other books in the lifecycle.

Continual Service Improvement Goal Continual Service Improvement (CSI) seeks to identify & implement improvements to IT Services that support Business Processes and to ensure the ongoing alignment of IT Services to the changing needs of the Business.

Continual Service Improvement Objective CSI’s objective is to:

Review, analyse and make recommendations on improvement opportunities in each lifecycle phase

Improve cost effectiveness of delivering IT Services

Review & analyse Service Level achievement

Identify & implement individual activities to improve IT Service quality

Continual Service improvement is responsible for constantly questioning how and why things are done. If things can be done more efficiently or more cost effectively, continual service improvement should identify and manage these opportunities.

CSI Value

Improvement to processes and services Benefits drawn from improvements to services – for

example improved return on investment (ROI), or improved customer satisfaction

Clearly measurable ROI – outweighing the cost of CSI Delivery of value on investment – ROI plus more

intangible, long term benefits

Continual Service Improvement





Exercise This lesson included another exercise to help your understanding of the Service Lifecycle. It’s important to complete all the exercises on the course, as they will reinforce what you learn and ensure you spend the appropriate amount of time studying. If you didn’t complete the exercise while you were doing the Lesson, spend 15-20 minutes now before you look at the suggested solution below.

Exercise Map the roles and job titles in your current or last organisation on to the Service Lifecycle. Where does each job title fit? Try and think of at least 10 roles.

Exercise Solution Here are some suggestions for where existing roles and responsibilities may fit into the Service Lifecycle. There are examples provided for each book within the lifecycle. Service Strategy – IT Director, Financial Manager Service Design – Project Manager, Technical Architect,

Developer Service Transition – Change Manager, Release Manager,

Configuration Manager, Test Manager Service Operation – Incident Manager, Service Desk,

Problem Manager Continual Service Improvement – Quality Manager





You studied a key role as part of this Lesson – that of the Service Owner. The service owner is responsible to the customer for the initiation, transition and ongoing maintenance and support of a particular service.

Service Owner

Responsibilities

Being the prime customer contact for all

enquiries or issues related to the service, allowing clear points of contact from the customer perspective. As part of this role, the service owner will be involved in ensuring the customers requirements are being met by the levels of support and service delivery offered

Identifying opportunities for service improvement. The service owner may also raise a request for change for a service improvement if the customer and service owner feel this is appropriate

Being responsible to the IT director or service management director for the delivery of the service that they have responsibility for. To support this, they will be authorised to request data and reports concerning the service when necessary, as well as ensuring that effective service monitoring is in place

Working closely with process owners where necessary during the service lifecycle

You will notice that many of the responsibilities of the service owner are linked to or similar to those of the service level manager that you learned about at version 2. Many of these responsibilities are still carried out by the service level manager as a primary role, while the service owner carries them out as a secondary role, although clearly the two roles will work closely together. The table below is drawn from the CSI volume and shows how the roles of CSI Manager, Service Level Manager and Service Owner fit together, and where the primary and secondary roles are.

Roles and Responsibilities – Service Owner





P = Primary Responsibility S = Secondary Responsibility

CSI Manager

Service Level Manager

Service Owner

Focus

IT services S P P

IT systems S P

Processes P S S

Customers S P S

Technology P S P

Responsibilities

Responsible for development and maintenance of the catalogue of existing services

P S

Responsible for developing and maintaining OLAs P S

Responsible for gathering Service Level Requirements from the customer

S P S

Responsible for negotiating and maintaining SLAs with the Customer

S P S

Responsible for understanding UCs as they relate to OLAs and SLAs

S P S

Responsible for ensuring appropriate service level monitoring is in place

P P S

Responsible for producing, reviewing and evaluating reports on service performance and achievements on a regular basis

P P P

Responsible for conducting meetings with the customer on a regular basis to discuss service level performance and improvement

S P S

Responsible for conducting yearly SLA review meetings with the customer

S P S

Responsible for ensuring customer satisfaction with the use of a customer satisfaction survey

S P S

Responsible for initiating appropriate actions to improve service levels (SIP)

P P P

Responsible for the negotiation and agreement of OLAs and SLAs

P P S

Responsible for ensuring the management of underpinning contracts as they relate to OLAs and SLAs

S P S

Responsible for working with the Service Level Manager to provide services to meet the customer’s requirements

P P

Responsible for appropriate monitoring of services or systems

P P S

Responsible for producing, reviewing and evaluating reports on service or system performance and achievement to the Service Level Manager and the Service Level Process Manager

P P P

Assisting in appropriate actions to improve service levels (SIP)

P P P





Skills, knowledge and competencies

Relationship management skills P P P

A good understanding of IT services and qualifying factors in order to understand how customer requirements will affect delivery

P P P

An understanding of the customer’s business and how IT contributes to the delivery of that product or service

P P P

Good communication skills P P P

Good negotiation skills P P P

Knowledge and experience of contract and/or supplier management roles S P S

Good people management and meeting facilitating skills P P P

Good understanding of statistical and analytical principles and processes P S S

Good presentation skills P P S

Good technical understanding and an ability to translate technical requirements and specifications into easily understood business concepts and vice versa

S P S

Innovative in respect of service quality and ways in which it can be improved within the bounds of the organization’s limits (resource, budgetary, legal etc.)

P P P

Good organizational and planning skills P P P

Good vendor management skills S P S

Table 6.8 Comparison of CSI Manager, Service Level Manager and Service Owner “© Crown copyright 2008 Reproduced under licence from OGC “





This Lesson also introduced the RACI model, another key concept for Service Management as a practice. RACI models are used to manage resources and roles for the delivery of a piece of work or task. A piece of work could be a project or the day to day tasks that happen within a service provider. Resources to complete a task may be drawn from different functional areas, so a RACI model is used to track who is doing what.

RACI Model

R - Responsible Person or people Responsible for getting the job done A – Accountable One person must be Accountable for each task C – Consulted Is Consulted and provides input of knowledge and information I – Informed Receives Information about process execution and quality

Remember: Only ONE person can be accountable for a task. Many people can be responsible, consulted and informed.

The RACI Model





RACI models are often shown as a matrix. This matrix shows the resources onboard a ship being used to carry out key tasks.

RACI Matrix

Notice only one person is ever accountable for each task. On occasion, the RACI may be expanded to become the RACI-VS, with 2 further roles added. The V stands for Verifies – a person or group who checks that acceptance criteria have been met. The S is sign off – the person who approves the V decision and product hand off. This may well be the same as the person who is accountable for the task.





This Lesson also addressed the organisational issues that surround IT Service Management. Organisations need to consider their internal structures and examine them to see if they are delivering optimum efficiency. If not, a reorganisation or restructure may be required. At a strategic level, an organisation will consider structure in terms of business units and service units.

Business Unit

A business unit is defined as a bundle of assets, meant to create value for customers in the form of goods and services. Customers pay for the value they receive, which makes sure the business unit can be profitable and survive. This relationship is valid as long as the business unit delivers value, and the customer pays for services or goods received.

Service Management Organisational Issues





You can see the diagram of a Business Unit below:

Diagram of a Business Unit (Service Strategy diagram ref. 3.9) “© Crown copyright 2008 Reproduced under licence from OGC “

Service units are like business units, as they also create value in the form of services. Services define the relationship between business units and service units. In many cases, business units or customers and service units will be part of the same organisation. Service units can provide different services to different business units, mixing resources and capabilities to meet requirements. Business Units and Service Units may be part of the same organisation, or the Service Unit may be a separate legal entity.

Thought How is your organisation organised into business units and service units? How is IT organised into service units that fulfil the needs of the business units? Are you organised around individual services or are the interfaces more complex?

Business unit

Asset types

Create value

Consume assets

Generate returns (or recover costs)

Prospects Competitors Regulators Suppliers

Influence

Demand

Supply

Management

Organization

Processes

Knowledge

People

Information

Applications

Infrastructure

Financial capital

Coordinate, control, and deploy

Customers

Goods/ Services

Capabilities

Resources





This diagram shows how services define the relationships between business units and service units.

Business Units and Service Units – Customer Assets are the basis for defining value (Service Strategy fig. ref. 3.10)

“© Crown copyright 2008 Reproduced under licence from OGC “

Remember, a service may be used by more than one business unit (for example email or data storage facilities). If this is the case, the organisation that the business units reside within may be able to negotiate a better price or additional value based on pooling demand. Customer assets are always used as the basis for defining value. Without the appropriate customer assets to use the service provided, business outcomes cannot be met. Once an organisation understands the business and service unit structure that it maps into, Operational Organisation Structures can be considered.

+ +

+

Business outcomes

(Business unit)

Value potential

Performance potential

Customer Assets

Services Service Assets

Service potential

(Service unit)





In this Lesson, you also studied Operational Organisational Structures. There are a number of different ways of organising Service Operation functions, and decisions will be based on scale, geography, culture, environment and maturity of the organisations. The four most common Operational organisational structures are to structure by technical specialisation, activity, process or by geography.

Organisation by Technical Specialisation The first way to structure is to organise by technical specialisation. This means departments will be created according to technology and the skills and activities needed to manage it. This structure can work well and means that internal performance objectives are easy to set, technology can be managed more effectively and training programmes are easier to implement. However, it can also lead to silos and blame culture developing, as well as knowledge being fragmented. The technology perspective can make service measurement more difficult as each link in the service chain is separately managed and subject to separate targets.

Organisation by Activity The second way to organise is by activity. This type of organisation works on the basis that similar activities apply to all types of technology – for example contract management, operations and maintenance. This type of organisation allows for groups of related activities to be easily managed, as well as helping to break down the silo perspective that technology based organisations can develop. The disadvantages of this type of organisation can include similar skills being duplicated across different functions, leading to higher costs. Also, measurement is still based on internal activities, not customer experience.

Organisation by Processes Thirdly, an organisation can structure to manage processes. However, it isn’t recommended that whole organisations are structured around processes, as they are meant to break down silos, not form them. There will be a number of processes will need their own organisational structure depending on the size of the organisation. For example, imagine a change management process with no change manager or change management function!

Service Operation Organisational Structures





Organising by process can deliver benefits as processes are easier to define. Metrics of team or department performance and process performance are the same, aligning internal and external performance views. One major disadvantage to this type of organisation is that new processes will then be required to link the process departments together!

Organisation by Geography Lastly, we can organise by geography. In this model, resources are organised and structured according to their geographical location, for example a data centre or head office. This delivers advantages as organisation structures can be customised to meet local requirements, and to meet different service level requirements. The disadvantages to this model lie mainly in the loss of ability to standardise and deliver consistent levels of service.

Hybrid Structures Many organisations will use several of these approaches, leading to what is called a hybrid organisational structure.





Risk

Risk is defined as uncertainty of outcome, whether positive opportunity or negative threat

Management of risk is critical within a service provider organisation. Managing risk requires risks to be identified, and exposure to risk to be controlled. Risk that is not managed may have a significant impact on the organisations ability to meet its objectives. Risk management should involve a visible, repeatable and consistent process. In this way, it can support decision making through use of a cost effective risk framework. There are two main phases – risk analysis and risk management. The diagram below shows a generic framework for risk management.

Key Concept - Risk





Generic framework for risk management (Service Strategy fig. ref. 9.3) “© Crown copyright 2008 Reproduced under licence from OGC “

Effective Risk Management includes Risk Analysis and Risk Management. Risk analysis is about documenting and quantifying the risks so that you can understand them. Risk Management then looks at potentially introducing countermeasures or taking steps to try and reduce risk. Management of risk typically covers a wide range of topics, including Business Continuity Management (BCM), security, programme/project risk management and operational service management.

Define a framework

Embed and review

Gain assurances About effectiveness

Implement responses

Risk Management Risk Analysis

Identify the risks

Identify probable risk owners

Evaluate the risks

Set acceptable levels of risk (tolerances/appetite)

Identify suitable Response to risk





This Lesson covered the key concepts addressed within the Service Management as a Practice Section of the syllabus. This included: Version 2 Review Sources of Good Practice The Definition of a Service The Definition of Service Management Introduction to the Service Lifecycle, including goals, objectives and value

for each stage The role of the Service Owner RACI matrices Service Management Organisational Considerations

Tip – At the end of this Lesson, you should have downloaded the

following documents in addition to your Study Guide: Service Lifecycle Overview Version 2 review document

Lesson Review

Lesson 2 Study Guide

Documents

Transcript of Lesson 2 Study Guide