Connecting ITSM to IT Governance

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1 Connecting ITSM to IT Governance J O H N B O R W I C K, M A N A G E R A N D F O U N D E R H I G H E R E D U C A T I O N I T M A N A G E M E N T, L L C

2 John Borwick, PMP, ITIL Expert Wake Forest University, Director of Service Mgt PMO Director Manager and Founder, HEIT Management Career goal: Make people s lives easier by improving how higher education IT is managed. johnb@heitmgt.com

3 Higher Education IT Management, LLC One-on-one coaching Custom engagements Blog Newsletter

4 Agenda Background: ITSM, IT governance Preparing for an IT governance meeting Providing visibility and transparency Understanding and explaining IT costs Understanding value Understanding risks Responding to IT governance concerns Ways IT governance can help ITSM COBIT as a reference source Q&A

5 Background: IT service management

6 IT service management (ITSM) Organizations: itsmf, HDI, ITIL CG Guidance: ITIL, ISO Certifications (for people): ITIL foundations, ITIL intermediate certificates, ITIL expert

7 ITIL s definition of a service A service is a means of providing value to customers by facilitating outcomes they want to achieve without the ownership of specific costs and risks.

8 Examples of specific costs and risks Specific costs Specific risks Hardware support needs to be renewed Database administrators need to go to training IT tool stops working due to a software patch Water leak in the data center

9 Background: IT governance

10 Board of Trustees Aside: what is governance?

11 IT governance Organizations: ISACA, IT Governance Institute Guidance: ISO38500, Implementing and Improving IT Governance, Certifications (for people): CGEIT (Certified in the Governance of Enterprise Information Technology)

12 IT governance fundamentals Value Cost Risk

13 IT providers own costs and some risks Value Cost Risk

14 IT consumers own value and some risks Value Cost Risk

15 Example: Admissions CRM tool IT Consumers IT Providers Value Time saved in recruiting Improved candidate quality Risks People understanding the technology Costs OS licenses Time spent on maintenance Risks Hardware failure Unanticipated demand

16 IT governance depends on effective IT management practices IT governance cannot make decisions in a vacuum IT governance will push you to improve processes Build improvement loops: Make and communicate guesses based on what you have Plan for incremental improvements from meeting to meeting

17 Preparing for an IT governance meeting

18 Multiple IT governance groups Board-level IT governance? Cabinet-level IT governance Academic IT governance Administrative IT governance

19 Visualize a cabinet-level IT governance meeting Provost CFO Dean(s) CIO VP, Alumni Relations VP, Facilities

20 Providing visibility and transparency

21 Service catalog management Business service catalog, or Lines of Service Use the language of the catalog Highlight existing IT work Operations vs. Enhancements 30% 70% Operations Enhancements

22 Service catalog reports: demand by department IT service catalog report for Finance for CY2013Q4 Service # incidents # requests # changes Business intelligence Desk-side support Web site support

23 Service portfolio management Add service information to your project portfolio reporting Raise the visibility for ongoing IT support costs

24 Service pipeline report Project Status Line of service Admissions CRM tool Virus scanning tool In progress, On schedule In progress, Behind schedule Administrative services Desk-side support Customer(s) Admissions All departments Net impact to IT operations +1 IT FTE -0.5 IT FTE

25 Understanding and explaining IT costs

26 Service level management Define and approve a global service level Access to the Service Desk Next-business-day response Build tiers of service Gold: 24x7x365, one hour response Silver: 24x7x365, four hour response Bronze: 9x5, next business day response

27 Costs of service by tier service: Tier Cost Gold $300,000 Silver $200,000 Bronze $150,000 Customers pay for exceptions

28 IT financial management Translate the IT budget into IT service costs Non-personnel Direct costs (e.g. server hardware for the LMS) Indirect costs Personnel Billable hours vs. overhead

29 IT costs by service Total operating budget $1 million Service Costs (budgeted) Service level Administrative support $300,000 Gold Web site support $150,000 Silver Reporting $300,000 Bronze Personnel set-aside for project work $250,000 --

30 Understanding value

31 Business relationship management Proactive customer meetings Briefings to CIO and IT leadership

32 Customer satisfaction reports Reports by Service Desk contact Service Desk to end users Reports by service Business Relationship Management to the service s customers Overall IT satisfaction reports Business Relationship Management to campus

33 Demand management Working with customers to understand demand Influencing demand, e.g. through marketing

34 Understanding risks

35 Service Design warranty processes Availability management Capacity management IT service continuity management IT security management

36 Provide levers to IT governance Disaster recovery for the Learning Management System has not been done. Options: 1. $0: All records lost if there s a fire 2. $100k/yr: Records stored off-site; returning the service to production would take 2 weeks and $500k 3. $1 million + $100k/yr: Records stored off-site and a hot standby environment will be ready

37 Responding to IT governance concerns

38 Service Improvement Programs (SIPs) Standard process for improving Raises the visibility of service improvements

39 Ways IT governance can help ITSM

40 Ways IT governance can help ITSM Sponsorship Advocate for the language of IT services Focus on the customer

41 COBIT as a reference source

42 Control Objectives for Information and related Technology (COBIT) Organization: ISACA Guidance: COBIT 5 (and many supplementary publications) Certifications (for people): COBIT 5 Foundation, COBIT 5 Implementation, COBIT 5 Assessor

43 COBIT 5 s processes 37 processes including governance processes: EDM01 Ensure Governance Framework Setting and Maintenance EDM02 Ensure Benefits Delivery EDM03 Ensure Risk Optimisation EDM04 Ensure Resource Optimisation EDM05 Ensure Stakeholder Transparency

44 APO09: Manage Service Agreements APO09.01: Identify IT services APO09.02: Catalogue IT-enabled services Inputs include an approved resources plan from IT governance APO09.03: Define and prepare service agreements APO09.04: Monitor and report service levels APO09.05: Review service agreements and contracts

45 ISO/IEC APO09 Related Guidance 5.0 Planning and implementing new or changed services 6.1 Service level management ITIL V Service Strategy, 4.4 Demand Management Service Strategy, 4.2 Service Portfolio Management Service Design, 4.2 Service Catalogue Management Service Design, 4.3 Service Level Management

46 Review Background: ITSM, IT governance Preparing for an IT governance meeting Providing visibility and transparency Understanding and explaining IT costs Understanding value Understanding risks Responding to IT governance concerns Ways IT governance can help ITSM COBIT as a reference source

47

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