The IT Service Management Performance Challenge IT Service

The IT Service Management Performance Challenge IT Service Management in the Federal Sector – A Case Study 1

Driver of Change: Laws, Policies & Directives ¨ Clinger-Cohen Act Requirements: – – Plan and Manage IT operations strategically Improve service to customers Manage with greater accountability for results Reduce costs and gain a higher return on IT investment – Competitive Sourcing ¨ PMA – – – Strategic Management of Human Capital Competitive Sourcing Improved Financial Performance Expanded Electronic Government Budget and Performance Integration Rules have changed 2

OMB Circular A-11 Focus - Capital planning & Performance-based Measurement Mandates Federal agencies: ¨ Plan and Manage IT operations strategically ¨ Improve service to customers ¨ Manage with greater accountability for results ¨ Reduce costs and gain a higher return on IT investment ¨ Increasingly emphasize the use of outsourcing 3

Federal IT Service Challenge n tio IT a id ol s on New Technology & Growth C OM B C A- ircu 11 la r Demands for IT Service GPRA CCA Bu dg et C ut s Competitive Sourcing PMA e rc o kf n or ritio W tt A The rules have changed 4

Service Management: Current State ¨ Missing information - Who is the Customer? ¨ Lacked clarity - Services reflect Customer or IT ¨ ¨ viewpoint? Unclear - IT the service provider? Unclear, Inconsistent & Missing Service definitions Varying levels of detail describing Services Multiple Documents Duplication of services across different service areas. Searching for Service Management Solution 5

The ITIL Framework: Operations Bridge Business - IT Alignment Business Alignment Customer Management Incident Management/ Service Desk Operations Management IT Strategy Development Problem Management Configuration Management Service Planning Service Level Management Availability & Continuity Management Capacity Management Change Management Cost Management Service Design & Management Build & Test Release to Production Service Development & Deployment Customer Focused IT Service Delivery 6

ITIL Framework: Problems Addressed Goals Going Forward ¨ Users ¨ Customers ¨ Inward Looking ¨ Outward Looking ¨ Technology Focus ¨ Process Focus ¨ Ad Hoc Processes ¨ Streamlined Processes ¨ Best Efforts ¨ Measured-Accountable ¨ Entirely In-House ¨ Balance In/Outsourced ¨ Reactive ¨ Proactive Putting the Pieces Together - Best Practices of leading Organizations 7

Applying the ITIL IT Service Management Framework Case Study: Business/IT Alignment at the IRS-Detroit Computing Center 8

2001 SM Prototype Participants: IRS-EOS & DCC ¨ Enterprise Operations Services: Responsible for IRS Tax and Administrative Computing Operations including: – – Atlanta Contact Center Support Martinsburg Computing Center Tennessee Computing Center Detroit Computing Center ¨ Detroit Computing Center: Mainframe & Mid-Range Server Operations supporting mission critical applications to 100, 000+ IRS & Treasury Customers: – CFO - Automated Financial & Revenue Accounting – Compliance Research - Enforcement Revenue Information Statistics of Income, Compliance Research Information – Multi-Media and Publishing Services - Centralized Inventory Distribution – Chief Counsel - Counsel Automated Tracking System – Office of the Commissioner - Executive Management Support System. 9

SM Prototype Scope: Service Catalog Development Business - IT Alignment Business Alignment Customer Manageme nt IT Strategy Developmen t Service Catalog Prototype Goals ¨ ¨ Service Planning Change Management • Define Service Requirements • Define IT capabilities • Request for Change (RFC) processing • Change coordination Service Level Management • Maintain Service Catalog ¨ Strengthen Customer Relationships Service Providers Understand Business Requirements Customer Understand Service Level Resource Requirements Negotiate & document Availability & Continuity Management • Key Process Capacity Manageme nt Cost Management • Key Process Service Design & Management Focusing on the Pain 10

Service Catalog Process: Approach The Service Design Process Customer Demands Defining the Process knowing your customer Specify external standards Executing the Process defining service requirements Translate to internal standards Controlling the Process defining service requirements Produce contracts and agreements production of documents 11

Lessons Learned: ¨ Clear Service Strategy - Know where you are headed! ¨ Executive & Senior Management support is essential ¨ Line Management and Technician Buy-in ¨ Knowing What you Want in Choosing Vendor Support ¨ Focus on Process and Tools ¨ Service Management Challenge calls for action; “business as usual” not enough. Create Economies through improved Efficiencies and Resource Utilization ¨ ITIL Framework and the right tools can help you address the challenges and seize the Service Management opportunities Successful SM Can be Achieved! 12