The Business of IT and the Value of Service...
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SESSION 305 Monday, November 2, 3:00pm - 4:00pm Track: Industry Insights The Business of IT and the Value of Service Management Janie Aggas IT Service Manager, Fidelity Investments [email protected] Dennis St. Lawrence Director of Service and Support, Fidelity Investments [email protected] Session Description Attend this session to gain an in-depth understanding of some of the methods used at Fidelity Investments to put a financial face on the value of service management excellence in cutting defect rates. Janie Aggas and Dennis St. Lawrence will present several models including a mock-up of an annual stability report, built on the concept of collaborative governance between businesses and IT, using case studies to illustrate the journey of continual service improvement. Whether you new to ITSM or looking for your next sophisticated insight, there are takeaways here for just about everyone. (Experience Level: Intermediate) Speaker Background Janie Aggas is an IT service manager for Fidelity Investments and a self-professed ITSM crusader who aspires to share her knowledge and nearly fifteen years of IT experience with other ITSM professionals. She holds multiple ITIL certifications and is a Six Sigma Yellow Belt, a Certified Process Design Engineer, and a certified ISO 27001 Lead Auditor. Janie recently extended her crusade with the broader ITSM community by launching itsmcrusader.com and becoming active in the ITSM community on Twitter. She looks forward to continuing her crusade with each FUSION 15 attendee. Dennis St. Lawrence is a director of problem management and analytics at Fidelity Investments. During his career, he has lectured in college mathematics and quality sciences, served as a quality engineer for Millipore Corporation, managed customer services for Digital Equipment Corporation, and consulted privately with companies seeking ISO certification. He is the coauthor of “Powerful Planning With Simple Techniques,” published in *Quality Progress*, and he’s a Six Sigma Black Belt with past certifications in quality and reliability engineering. Despite the structure and repression of his professional training, he most enjoys working with groups to use alternative approaches to create insight and understanding.
Transcript of The Business of IT and the Value of Service...
SESSION 305 Monday, November 2, 3:00pm - 4:00pm
Track: Industry Insights
The Business of IT and the Value of Service Management
Janie Aggas IT Service Manager, Fidelity Investments [email protected]
Dennis St. Lawrence Director of Service and Support, Fidelity Investments [email protected]
Session Description
Attend this session to gain an in-depth understanding of some of the methods used at Fidelity Investments to put a financial face on the value of service management excellence in cutting defect rates. Janie Aggas and Dennis St. Lawrence will present several models including a mock-up of an annual stability report, built on the concept of collaborative governance between businesses and IT, using case studies to illustrate the journey of continual service improvement. Whether you new to ITSM or looking for your next sophisticated insight, there are takeaways here for just about everyone. (Experience Level: Intermediate)
Speaker Background Janie Aggas is an IT service manager for Fidelity Investments and a self-professed ITSM crusader who aspires to share her knowledge and nearly fifteen years of IT experience with other ITSM professionals. She holds multiple ITIL certifications and is a Six Sigma Yellow Belt, a Certified Process Design Engineer, and a certified ISO 27001 Lead Auditor. Janie recently extended her crusade with the broader ITSM community by launching itsmcrusader.com and becoming active in the ITSM community on Twitter. She looks forward to continuing her crusade with each FUSION 15 attendee. Dennis St. Lawrence is a director of problem management and analytics at Fidelity Investments. During his career, he has lectured in college mathematics and quality sciences, served as a quality engineer for Millipore Corporation, managed customer services for Digital Equipment Corporation, and consulted privately with companies seeking ISO certification. He is the coauthor of “Powerful Planning With Simple Techniques,” published in *Quality Progress*, and he’s a Six Sigma Black Belt with past certifications in quality and reliability engineering. Despite the structure and repression of his professional training, he most enjoys working with groups to use alternative approaches to create insight and understanding.
About Janie
• Director, IT Service Management – Fidelity Investments • Self-professed ITSM Crusader • 15 Years of IT Experience • TOGAF Certified • Multiple ITIL Certifications • Six Sigma Yellow Belt • Certified Process Design Engineer • Certified ISO 27001 Lead Auditor
Contact Info: Email: [email protected]
Twitter: @ITSM_Crusader LinkedIn: Janie Aggas Web Site: ITSMCrusader.com
About Dennis
• Director of Problem Management & Analytics – Fidelity Investments • Served as a Quality Engineer for Millipore Corporation • Managed Customer Services for Digital Equipment Corporation • Consultant to firms seeking ISO certification • Co-author of “Powerful Planning with Simple Techniques” published
in Quality Progress • Six Sigma Black Belt
Contact Info: Email: [email protected]
LinkedIn: Dennis St. Lawrence
Pre-Reading For those of you who did not get a chance to complete the pre-reading for this topic, we’ve provided a brief synopsis to catch you up quickly.
Process Value
Islands and Silos
ITSM Challenges Faced
Adoption across a Global Workforce
ITSM Challenge #1 Perception of process value
Valued
Under-valued
Undecided
Demonstrating value: Cost Of INcidentS (COINS)
“The Financial Face of IT Errors”
FIX
IDLE TIME
FINES
COINS Example For just under 1 hour, customers of Aggas Agile Airlines across multiple platforms are unable to book flights, access ticket info, cancel/reschedule flights, and check flight status of arriving family members. Possible outcomes: • Compensation for missed flights • Hotel reimbursements • Deliveries not on time or in the wrong location • Down time for planes • Salaries of idle pilots and flight attendants • Inefficient maintenance • Internal expenses of mitigating and resolving incident • Reputational impact (loss of confidence, customers)
• Use info from standard company sources, such as ITSM incident
and problem systems and tools – NO EXTRA WORK
• Involve your finance leads in providing estimates for acceptable hourly labor rates
• Educate your management teams on the concept of directional correctness vs financial audit accuracy
Gather the info using “normal” incident and problem information
Turning info into cost estimates
Type of Cost Calculation
Discovery costs: $10K $15 * problems reported via phone representative interactions
Mitigation costs: $585K
Labor Costs = ($64/hr) * (Incident Duration hours * (# of Mechanics and phone representatives Impacted) + Telecom Costs = (Total Crisis Mgmt Bridge Port Mins) * $.06 + Crisis Costs = (Total Crisis Mgmt Bridge Port Mins)/60 * $64/hr
Productivity loss: $1,561K $64/hr. * (Incident Duration Mins./60) * (Impacted # of pilots and attendants)
Profitability loss: $897K Flight vouchers issued (actuals)
Loss of customer goodwill: $858K $64/hr. * (Incident Duration Hours) * (Impacted # of customers)
Total cost of incident: $3,913K Discovery Costs + Mitigation Costs + Productivity Loss + Profitability Loss + Loss of Customer Goodwill+ Management Review
Mitigation Expense
$585 (15%)
Loss of Productivity $1,561K (40%)
Profitability Loss $897 (23%)
Loss of Customer Goodwill
$858K (22%)
Costs by Category
Aggas Agile Airlines Uses the Cost to Prioritize the Work and to Quantify the Value Received
Incident Impact Level
Annual Occurrences
Total Cost
Assigned Priority
Cargo door falling off mid-air 1 1 2,855K High
Environment control does not work, cabin temperature cannot be controlled
2 3 747K High
Bug in reservation resulting in overbooked flights
2 1 227K Medium
Radar outage for 1 hour of flight 2 1 74K High
Flight attendant not there and plane could not take off on time
3 5 115K Low
Customers cannot view in flight movies 4 140 140K Medium
ITSM Challenge #2 Islands and Silos
Silos getting in the way?
Whale Done
• Book by Kenneth Blanchard based on belief that positive reinforcement is better than drawing attention to negative behaviors
• Building trust, accentuating the positive, and redirecting negative behavior
• Collaborative Governance and Learning: Businesses doing things right and being allowed to tell their story of success
Providing Visibility (e.g., forums, briefings) to communicate Service Management Improvements
Key Performance Indicators Typically, KPI’s are measures of success, tied to a metric, with a goal reported regularly to senior management
•how many incidents did we have? •how long did they last? •how many were the result of changes? •how many did we prevent?
The Breakthrough Created an Annual Service Management Stability Report modelled after a shareholder’s report for all employees KPI = Keeping People Inspired
Business Imperative
Actual Performance
The Meaning: Why/How
The Competition and
other Industries
Voice of the Customer
What is Changing Next Year?
Business Imperative
Actual Performance
The Meaning: Why/How
The Competition and other Industries
Voice of the Customer
What is Changing Next Year?
Business Imperative
Actual Performance
The Meaning: Why/How
The Competition and other Industries
Voice of the Customer
What is Changing Next Year?
Business Imperative
Actual Performance
The Meaning: Why/How
The Competition and other Industries
Voice of the Customer
What is Changing Next Year?
Business Imperative
Actual Performance
The Meaning: Why/How
The Competition and other Industries
Voice of the Customer
What is Changing Next Year?
Business Imperative
Actual Performance
The Meaning: Why/How
The Competition and other Industries
Voice of the Customer
What is Changing Next Year?
ITSM Challenge #3 Evolving the culture in a global workforce.
Where are you in your evolution?
You despise ITSM
You are a Reluctant
participant
You are an ITSM
Crusader
You were an Early Adopter
Final Thoughts One of the most powerful ways to change the service management culture in a large enterprise is to connect the…
financial face of service management…
the trends across industries…
the voice of your customers…
the sounds of the competition…
and the attitudes of your employees.
COINS (Cost Of INcidentS): The Financial Face of ITSM Errors
Whale Done: Accentuate the positive, redirect the negative
KPI’s: Annual Shareholders Report to Keep People Inspired
Questions?
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