Manage platform demand Manage platform demand Demand management

Manage platform demand

Manage platform demand Demand management focuses on measuring, predicting, and understanding your customers’ usage patterns, anticipating their changing needs, and assessing their demand for products and services. Demand for Service. Now® functionality should be managed in partnership with business stakeholders, as demand is constantly changing based on business conditions, goals, and organizational objectives. Insight: Managing Now Platform demand Demand management ensures that the Service. Now platform team and service delivery function has the capacity to meet business partner demand is responsive to business partner requirements so the services provided are fit for purpose. Without demand management, the link between business value and service delivery can be lost. The goals for managing platform demand are: • • Visibility – Establish a clear line of sight to all platform requests from the business. Control – Make fact-based decisions about which projects and enhancements the platform team undertakes. Alignment – Group platform projects and enhancements by business objectives. Planning and velocity – Look ahead to predict future demand while becoming more agile in addressing current demands. Key implementation steps Start 1. Create visibility by building a demand intake model Improve 2. Take control by enhancing, prioritizing, and approving demands 3. Align approved demands to business outcomes 2 Optimize 4. Increase velocity and plan future demand © 2021 Service. Now, Inc. All Rights Reserved.

Step 1 a: Define demand management roles Demand management needs to predict demand based on historical usage, influence demand with compelling service offerings, and capture demand for new services, service components, or configuration/customization on the Now Platform®. The three main roles that demand comes to the Service. Now team through are business liaisons, service owners, and the service desk. Each of these groups needs to know where to go internally to discuss demand capacity issues. Establish a demand owner role* Identify and train demand requesters q Responsible for shepherding demands from start to finish q Stand up an initial pilot group of four to six business liaisons, service owners and/or service fulfillers. q Should be a project manager or have a similar background or skill set q Aligns demand owners with business relationship managers (BRMs)—liaisons q Develop a curriculum that includes: between IT and lines of business (LOBs) q An overview of the demand process from request to approval q Gathers additional information about the request through interviews, surveys, and research q The information required for a complete request, including definitions and examples of each Establish a demand board q Set up monthly enablement calls and/or office hours to address any questions they may have. q Establish a Service. Now demand board with monthly meetings to manage and shape demand to measure demand management success over time. q Track their requests for completeness and accuracy and share feedback o Required members: platform architect, platform owner, and demand owners regularly. o Recommended members: IT process/domain owners, portfolio/service owners, the program manager, business analysts/business relationship managers, vendor managers, key suppliers, and partners Steps 1. Create visibility by building a demand intake model * The number of demand owners and their full-time or part-time profile depends on the size and complexity of the organization. • Small = 1– 2 part-time demand owners • Large = 2– 3 full-time demand owners 2. Take control by enhancing, prioritizing, and approving demands 3 3. Align approved demands to business outcomes 4. Increase velocity and plan future demand © 2021 Service. Now, Inc. All Rights Reserved.

Step 1 b: Define demand management intake processes Once demand management roles are understood, the demand management process needs to be defined, starting with the demand intake process. The demand board should ensure that new proposals for Service. Now functionality, configuration, or customization adhere to explicitly defined criteria for business value. The process for vetting incoming demands should include assessing the relative business value of a requirement, the cost of its implementation and support, and its potential technical risks. Define the information required to include in a proper demand request in Service. Now Use Service. Now’s ITBM Demand Management module as your demand management system of record q Brief description q If you don’t currently use Service. Now Demand Management, contact your account team for additional information. q Business case q Ask Service. Now Professional Services for offline tools to capture demands if you don’t currently have a demand management tool. q Value to the group requesting and value to the organization as a whole q Proof of management support of the requesting organization from the executive sponsor q Start with demand requesters creating demand records directly rather than starting with ideation from the start. q Primary user roles this request will benefit Capture the business value of new demand requests during ideation q Develop simple scoring mechanisms to help demand submitters identify the business value of a new demand requirement while it’s in the ideation phase. Steps 1. Create visibility by building a demand intake model 2. Take control by enhancing, prioritizing, and approving demands 4 3. Align approved demands to business outcomes 4. Increase velocity and plan future demand © 2021 Service. Now, Inc. All Rights Reserved.

Step 2 a: Assign demand requests and enhance them with additional information for evaluation The demand owner is the quarterback for each demand request, responsible for gathering sufficient information for the demand board to make an informed decision. This may include reaching out to the requester, other business partners, or stakeholders on the Service. Now platform team. Assign a demand owner to each demand request Enhance the demand request with additional information q Set the demand state to Submitted (see below). q Assign each demand to a portfolio – This is a collection of demands managed as a group to achieve strategic and operational objectives. Track the progress of the demand request using demand states q Draft – The new demand request is in process. q Create a list of stakeholders who will be impacted by or have an interest in this request. q Submitted – The demand record is created, and the demand owner is assigned. q Document additional information, including: q Requirements – Business, solution, quality, and transition q Decisions – Key choices that may affect the outcome of the demand q Screening – The demand owner sends assessments to stakeholders. q Risks – Any uncertain event that can potentially impact the success or outcome of a project q Qualified – Assessments are returned and consolidated; the demand is ready for evaluation by the demand board. q Costs – Starting with a T-shirt size estimate (S, M, L, XL) and then adding capital and labor costs when estimated q Deferred – The demand is retained for consideration at the next demand board meeting. q Approved – The demand will be converted to a new artifact (project, enhancement, defect, change). q Completed – If approved, the demand is converted to the new artifact; if rejected, no further consideration is given to the demand. Steps 1. Create visibility by building a demand intake model 2. Take control by enhancing, prioritizing, and approving demands 5 3. Align approved demands to business outcomes 4. Increase velocity and plan future demand © 2021 Service. Now, Inc. All Rights Reserved.

Step 2 b: Determine the demand approval thresholds based on the size of the demand Demands will come in all shapes and sizes, so you shouldn’t take a “one size fits all” approach to approving them. Tying up your demand board with approving small, tactical projects isn't an efficient use of their time. Demand owners should have the latitude to make decisions on demands up to a certain size; they will then inform the demand board of those decisions. Determine whether a demand will require a project if approved q Demands needing more than eight hours of effort should be included in a project, either new or existing, if approved. q Demands that are less that eight hours should be created as a change, if approved. Determine thresholds for demands that require demand owner versus demand board approval q Give demand owners the authority to approve small, tactical demands so they’re more responsive to business requests, including: q Demands requiring less than eight hours of effort (i. e. , those that don’t require creating a project) q Demands that require creating a project but that are less than a certain duration (e. g. , less than four weeks) q Demands that you have to do regardless of size, such as those required prior to an approved upgrade q Escalate demand approval to the demand board for more complex demands, such as: q Strategic – For example, those that tie to transformational portfolios and themes q Size/time – Demands requiring a project greater than a fiscal quarter (90 days) or those that span fiscal years q Risk – Demands with high risk due to resource, compressed timeline, complex technical requirements, or other factors q Stakeholders – Demands with stakeholders who span multiple business units (customer) Steps 1. Create visibility by building a demand intake model 2. Take control by enhancing, prioritizing, and approving demands 6 3. Align approved demands to business outcomes 4. Increase velocity and plan future demand © 2021 Service. Now, Inc. All Rights Reserved.

Step 2 c: Gather assessments from stakeholders For demands identified as strategic, after the demand owner has enhanced the demand request with additional cost, risk, and value information, they should use assessments to obtain additional input from stakeholders on the demand’s risk, business value, and cost. When stakeholders complete the assessments, they score questions on a scale of 1– 10 so the results can be consolidated to provide a quantitative score for risk and business value. These scores are used by the demand board as a factor in the decision-making process. Gather and consolidate assessments for new demand requests from stakeholders q Send assessments to specific stakeholders who can analyze the demand’s risk (business and technical) and alignment to business value. q Set the demand state to Screening. q Include both a numeric score (1– 10) as well as an opportunity to provide comments for each assessment question. At a minimum, an assessment should contain at least one question for risk and one question for business value. q Technical risk assessments should include a configuration versus customization analysis for each demand. q Group questions into two categories: risk and business value alignment. q Risk – Technical (customization versus configuration, integration), certainty of project requirements, complexity of requirements q Business value alignment – Alignment with strategic/corporate objectives, increase of efficiencies, elimination of existing tools/solutions Practitioner insight: A bubble chart works well as a visual assessment tool. Using two complementary scoring metrics to place each demand on the graph, employ a third to show the magnitude of the demand. Customers often use risk and value to place the demand on the graph, then use cost to show the magnitude (size of the bubble). q Calculate an average score for each quantitative assessment question and each assessment category. q After all assessments have been returned, set the demand state to Qualified. Steps 1. Create visibility by building a demand intake model 2. Take control by enhancing, prioritizing, and approving demands 7 3. Align approved demands to business outcomes 4. Increase velocity and plan future demand © 2021 Service. Now, Inc. All Rights Reserved.

Step 2 d: Create a demand resource plan In addition to understanding risk and business value, the demand owner should also estimate the effort (according to T-shirt sizes) and assess the capacity of your organization to put the demand into action. The demand owner should construct a resource plan based on the estimated requirements to create not only more accurate cost estimates, but also to avoid over-committing limited development resources. Identify the roles to create a demand resource plan Resource manager reviews the resource plan q The resource manager: q The resource manager vets requirements with the demand owner. q Is responsible for estimation and allocation of resources to projects and demands q May be a dedicated resource manager, program manager, or lead project manager q The demand owner: q If changes to the plan are needed, the resource manager rejects the plan and sends back to the demand manager for revision. q If it’s approved, the resource manager creates a soft allocation of resources. The hours are requested but are not committed unless the demand is approved and converted to a project, at which time they become a hard allocation. q Initiates a demand resource plan request q Collaborates with the resource manager to provide details on requirements q Soft-allocated resources still impact resource availability. Create the demand resource plan q Availability = capacity – hard allocations – soft allocations q The demand owner creates the demand resource plan. They will: q Add the resource group or resource roles and an estimate of the hours needed based on requirements. The level of precision needed for this estimate should be based on the complexity of the demand request—more complex requests should have more detailed estimates. Practitioner insight: Capturing resource requirements during the demand evaluation process allows for more accurate planning of future labor needs. This enables IT to respond more quickly and accurately to demand requests in the future. q Use the demand start date as the resource plan start date. q Use a consistent time format for all resource plan allocations (e. g. , weekly or monthly). q Use a consistent resource request type (hours or FTE) for all demands. Steps 1. Create visibility by building a demand intake model 2. Take control by enhancing, prioritizing, and approving demands 8 3. Align approved demands to business outcomes 4. Increase velocity and plan future demand © 2021 Service. Now, Inc. All Rights Reserved.

Step 2 e: Approve, defer, or reject the demand requests For qualified demands, the demand board should ensure that all proposals for Service. Now functionality, configuration, or customization adhere to explicitly-defined criteria for business value. The demand board should scrutinize any demands requiring customization to ensure a smooth upgrade experience and weigh the customization effort against the demand’s business value. The demand owner or demand board reviews the demand requests q The demand owner or demand board may elect to modify the scores of a given demand request; the scores submitted in stakeholder assessments should be a starting point, not considered the final decision. q The demand owner or demand board evaluates demand on any and all information available, including assessments, enhanced demand information, and resource plans. Determine the disposition of the demand q Use standard statuses from the demand process flow. q Deferred – The demand remains a demand is reevaluated at the next demand board meeting. q Approved – The demand will move forward; the demand board then creates a new artifact (project, enhancement, defect, change). q Completed – Work on the demand is complete and is either approved or rejected. q Reevaluate demands that have been deferred from the previous meeting based on evolving business priorities and IT capacity. Steps 1. Create visibility by building a demand intake model 2. Take control by enhancing, prioritizing, and approving demands 9 3. Align approved demands to business outcomes 4. Increase velocity and plan future demand © 2021 Service. Now, Inc. All Rights Reserved.

Step 2 e: Approve, defer, or reject the demand request (Continued) For qualified demands, the demand board should ensure that all proposals for Service. Now functionality, configuration, or customization adhere to explicitly defined criteria for business value. The demand board should scrutinize any demands requiring customization to ensure a smooth upgrade experience and weigh the customization effort against the demand’s business value. Create an artifact of the demand q Create a project – Strategic demand type q Create an enhancement – Strategic demand type in an Agile environment q Create a defect – Operational demand type in an Agile environment q Create a change – Operational demand type Steps 1. Create visibility by building a demand intake model 2. Take control by enhancing, prioritizing, and approving demands 10 3. Align approved demands to business outcomes 4. Increase velocity and plan future demand © 2021 Service. Now, Inc. All Rights Reserved.

Step 3 a: Use the business unit’s strategic plans and KPIs to anticipate demand changes Business services are used to support business outcomes and focus on the right outcome metrics for the right cost. You can get ahead of new demands for services and Service. Now functionality by understanding business unit strategic plans and key KPIs. Map these to capabilities and your current services and Service. Now roadmap for effective demand conversations. Understand the impact that business unit goals will have on demand for services and Service. Now functionality q Meet quarterly with business unit partners/liaisons to understand new or shifting business unit goals and inform the business of new or upcoming Service. Now capabilities that may eliminate the need for customization. q When discussing a new Service. Now capability, provide examples of how the new capability can directly support or impact their business function, rather than describing the capability in purely technical terms. Practitioner insight: Demand changes are often opportunities to discuss standardization, consolidation of legacy systems, or new Service. Now functionality to take advantage of increased scale. These conversations are easier when they’re pitched around the specific business metrics you need to hit rather than technical or functional metrics that don’t mean much to the business. q Use historical service run rates to predict demand for new Service. Now functionality. q Link new business KPIs to current Service. Now functionality to assess any gaps. q For example, increasing customer wallet share may involve improving the customer data available to call center agents for cross-sale and making that data usable, which may require more integration between Service. Now and other critical systems. q As an outcome of these discussions, demand owners should proactively create demands that align with the newly understood business objectives. Steps 1. Create visibility by building a demand intake model 2. Take control by enhancing, prioritizing, and approving demands 11 3. Align approved demands to business outcomes 4. Increase velocity and plan future demand © 2021 Service. Now, Inc. All Rights Reserved.

Step 3 b: Focus demand conversations on business needs Demand management should be proactive, not reactive. Service organizations—and the Service. Now platform team—should reach out to service consumers (business partners) to understand their key business outcomes and to propose solutions that encourage them to use the platform. Focus the conversation with business partners on making progress toward business outcomes to understand where to make changes to the Now Platform and program to ensure you realize value. Also focus on how employees consume services through Service. Now. This helps you have better demand conversations and helps business stakeholders understand the value that customization or change—to a platform or process—will bring. Use defined business outcomes for enterprise service management or digital transformation to orient demand conversations q Start the conversation by understanding the outcomes that drive success. Example categories include: q Cost reduction q Improved employee or customer experience q Risk reduction q Accelerated innovation q Document the top three business outcomes for the business partner. q Identify examples where Service. Now has helped other business partners achieve similar outcomes. q Internally, consult with other business groups who have implemented Service. Now. q Externally, check with the Service. Now Community, review Knowledge presentations (requires credentials), or participate in your local Service. Now User Group (SNUG). q Schedule a follow-up meeting with the business partner to show where Service. Now has provided value and propose enhancements to support that business partner’s outcomes. Steps 1. Create visibility by building a demand intake model 2. Take control by enhancing, prioritizing, and approving demands 12 3. Align approved demands to business outcomes 4. Increase velocity and plan future demand © 2021 Service. Now, Inc. All Rights Reserved.

Step 4 a: Apply Agile practices to increase demand responsiveness Once your organization has a handle on demand with visibility to all demands, has control of the demand review and assessment process, and has aligned them with business objectives, the demand board can “up its game” by borrowing from the Agile playbook to increase the velocity of demand management. And all this can be done in Service. Now. More than just arriving at demand decisions more quickly, Agile techniques let demand managers test for changes in the business climate more often and lets them tie demands to capacity in a near real-time manner. Schedule demand board intake standups daily q Review new demand requests. q Provide updates on demand enhancements. Transform demands into user stories and/or epics q If an approved demand cannot be delivered within a single iteration, create it as an epic. q Use the INVEST formula to assess the quality of user stories: q Independent (of all others) q Negotiable (not a specific contract for features) q Valuable (or vertical) q Estimable (to a good approximation) q Small (so as to fit within an iteration) q Testable (in principle, even if there isn't a test for it yet) Steps 1. Create visibility by building a demand intake model 2. Take control by enhancing, prioritizing, and approving demands 13 3. Align approved demands to business outcomes 4. Increase velocity and plan future demand © 2021 Service. Now, Inc. All Rights Reserved.

Step 4 b: Managing demand in a services-focused organization As the enterprise service management or transformation journey matures, decisions on service investment within a services-focused organization should be given to the service owners, who are best placed to identify how and where to meet customer need. Service owners have complete control over the costs of running the business, while investment in changing the business are decided across all services and based on the organization’s strategy and defined value outcomes. Running IT as a business means that resources saved by reducing run costs to can be switched to build/change capabilities that otherwise may not get funded. Shift accountability for service demand management to service owners q Modify the service owner’s performance bonus goals to include accurate demand management. Create compelling services to influence demand q Incorporate customer incentives into service offerings to shift demand to more cost-effective options. Practitioner insight: Encourage service owners to look for opportunities to drive consolidation and reduction in costs, and reinvest savings in change programs aimed at addressing key challenges. Measure success both in both financial and customer satisfaction terms q % reduction in run the business costs q Net Promoter Scores (NPS) (or similar) for the service from business stakeholders Steps 1. Create visibility by building a demand intake model 2. Take control by enhancing, prioritizing, and approving demands 14 3. Align approved demands to business outcomes 4. Increase velocity and plan future demand © 2021 Service. Now, Inc. All Rights Reserved.

Manage platform demand Key performance indicators Stakeholder map Essential KPIs Nice-to-have KPIs • • • Service utilization/load Backlog (volume/length) for Service. Now functionality, configuration, or customization Voice of the customer and NPS for services Responsible/accountable Consulted/informed • • Chief information officer/senior IT leadership Service owner/team Enterprise architecture Now Platform owner 15 Business engagement teams Business partners (internal and external) All IT staff (especially help desk) Vendors © 2021 Service. Now, Inc. All Rights Reserved.

Appendix 16 16 © 2021 Service. Now, Inc. All Rights Reserved.

Demand flow diagram Note: You can enter a demand directly as a DEMAND. Navigate to DEMAND > DEMANDS > CREATE NEW. 17 © 2021 Service. Now, Inc. All Rights Reserved.

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