Posts Tagged ‘best practice’

Top 5 must-have processes for IT service management

May 29, 2012

In these times of uncertainty we are all now familiar with a single word: “austerity”. In the boom times before the global economies went into meltdown I suspect many people had never even heard the word, let alone had to live that Imageway, but now we are all being asked to tighten our belts – and this applies to companies as well. Now more than ever, investing in IT Service Management makes sense, but not in the same way as a  few years ago, when the Information Technology Infrastructure Library (ITIL) became a real trend. Many companies’ objectives were to adopt all processes, regardless of whether they were appropriate or useful for them.  Now the focus has changed. Organisations are now less interested in “badges” and more in how some aspects of the ITIL framework and other best practice methodologies can help them become more efficient and introduce their own austerity measures.

There is currently a strong need for practical examples and demonstrable results rather than mere theory. Processes are now being hand-picked and tailored to each individual organisation, which can bring fast results – this can really allow businesses to work more efficiently, reduce losses and downtime and, possibly, leverage more from the tools and resources they already have.

But although each individual organisation needs a different set of best practice processes, tailored to their environment, there some essential must-haves that no company should do without:

1 – Change Management

This is the ‘number one’ essential process to improve your IT service availability. It means changes have to be planned, thought through and the consequence understood before any change, large or small, to the IT Service can take place. This does not mean it has to slow changes down as the process can be tailored to each company’s needs, but it does mean that, in some form, each change is considered before it takes place. This alone means that less mistakes are made, which improves your service availability.

2 – Incident Management

Things break and IT services are no different. What is important is how quickly you can get things back working again when this happens. Incident management allows you to create a process that everyone understands to handle these eventualities and restore your services as quickly as possible. Having people unable to work or access the services they require costs an organisation money, so this is more important than ever now. Having a robust incident management process means that the right resources can quickly be assigned to sort out the issue and make sure that your staff can get back to what you employ them for.

3 – Request Fulfilment

In this world of “just in time” ordering where everyone expects to receive everything they want faster and more cheaply than before, for IT this can present a challenge.  Software licenses and hardware components need to be delivered quickly to enable a customer to do their role or become productive quickly after joining an organisation, but conversely, companies need to control costs and make sure they only order what is required and that they do not have licenses or hardware sitting on the shelf depreciating. Having a good request fulfilment process can ensure this does not happen and also ensures the effective tracking of assets. In combination with a “catalogue” of approved components the user is able to select what they require for their job in the knowledge that IT have already confirmed that it will work with everything else. IT  are happy as they know that new device you just connected to the network is not going to slow everyone down or worse!

4 – Supplier Management

It is important for organisations to keep track of their suppliers: are they doing well? Will they still be around next year ? Are they delivering the service and value my organisation requires? Are we paying for services we no longer need?  A  good Supplier Management process means that you can answer these questions and more. It also allows you to provide your supplier with a roadmap of what your business is doing and so allows them to better support your needs going forward. Managing the relationship proactively means that you should rarely have to resort to any SLA penalties – it’s much better to make sure the situation that could cause the penalty is avoided rather than having to experience the impact that caused it in the first place.

5 – Service Level Management

It is important to know what the business requires from its IT services. Not knowing can either mean that the service delivered is not correctly supporting the business or that the IT service being delivered is actually exceeding what the business requires; both of these can cost an organisation money.

Service level management means that the correct Service Level agreements can be put in place to ensure the IT service meets the business need, but also to ensure that the IT service is not “over engineered” and effectively costing more than required. If you’re paying for a Mini but only receiving a push bike then you will be unhappy, equally why pay for a Ferrari when the Mini is all you need.

In these austere times it might just be the right moment to trade in that Ferrari for a Mini!

David Tuck, Principal Consultant

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Need or want? A simple metric for your IT projects in tough times

April 13, 2012

Recently, news and government statements on the state of the economy just confirm what all businesses already know: growth is slow; economic recovery will take a few years; all excess must be cut for survival. Although organisations nowadays recognise the importance of IT for the day-to-day business processes, they are struggling to secure investment in IT as is often not considered a priority. Often, as a result the IT Service Desk is the first destined to suffer, and with it, potentially, operational and business efficiency.

Any investment in IT, however small, can still create efficiencies if any project is carefully assessed against a very simple metric: is this a ‘need’ or a ‘want’?

A clear example of this would be a desktop refresh. Even if mainstream support for  Windows XP operating system is ending, they might find it more convenient or cheaper to pay for the extended support and postpone purchasing the latest version for another couple of years, when the company might be in a better position to deal with the disruption and changes to applications. In this scenario, Windows 7 becomes a ‘want’ rather than a ‘need’; by delaying the move, the organisation can get some much needed breathing space, or is able to invest their reduced budget in something more critical.

To evaluate a ‘need’ an organisation must focus on their core processes, main business-generating areas and IT-related risks. Do you need a certain application or technology for any user or a team in particular, say the sales team or customer relations? Is encryption vital across the whole organisation, or just the finance department? Do you need to enlarge your IT service desk team now or can you use home-working contractors to help at peak times until the market has settled?

Another smart approach to create cost-efficiencies is to invest in better management of the resources that are already present, which could involve some consultancy advice. Reducing head-count and cutting down on all IT expenses creates a false economy – yet companies still expect to have the same efficiency and quality of service. Reviewing the use of resources can allow better utilisation of existing staff, e.g. identified recurring issues can be resolved by 1st line support instead of it continuing to devolve to 3rd line, getting the business back on their feet faster and allowing for a more efficient use of existing resources. Other possibilities may be: cutting down on 3rd line analysts and using a cloud service provider to manage their servers; using automation software to deal with repeat incidents can allow the organisation to use less 1st line analysts; managed resources can also improve efficiency and save money, with a service provider in charge of staff management, training and best practices for a fixed monthly fee.

Smaller spending capacity can prove a great opportunity to look seriously at what is essential and what is not, with wiser short-term or far-seeing choices and clear objectives. This period of uncertainty is a challenge that successful organisations will take with a specific goal in mind: to remain successful and retain efficiency despite any difficulties this economic climate might present, and prepare their business to grow and flourish as soon as the economy is on the rise again.

Jennifer Grant, Service Deliver Manager

Steps to a successful Service Transition – new white paper by Plan-Net

September 27, 2011

Plan-Net has issued a new white paper that guides IT professionals through the essential steps needed to perform a Service Transition with successful results.

Whether the IT Support model is to be transitioned from in-house to Co-Sourced, Co-Sourced to fully Outsourced or in-house to Outsourced, this white paper outlines each important stage of the process, whilst also providing the reader with some tips and further insights into the matter.

This white paper, written by Pete Canavan, Head of Support Services, was conceived to help with the growing need for organisations to change the way they manage their IT department in order to achieve greater cost-efficiency. The IT Service Desk is nowadays the backbone of most organisations; for it to not only support the business, but create value and actually improve the way work is carried out, the service needs to be efficient, well-managed and up-to-date with the latest innovations.

This is why sometimes it may be more convenient for an organisation to seek external help. It is common practice for many organisations to have some Co-Sourced staff to cover for absences or sudden increases in workload. Moreover, an increasing number of companies even decide to leave the Service Desk completely in the hands of the experts and have it managed by a service provider.

The white paper contains details of five key Service Transition phases:

  • Scope definition
  • Future state model identification
  • Roadmap and Service Design
  • Service Transition phase
  • Live service and Continual Service Improvement

It also contains highlights on:

  • Communication
  • Knowledge management
  • Soft skills
  • Dos and Don’ts

“Steps to a successful Service Transition” can be found and downloaded here: http://www.datafilehost.com/download-718177f6.html

Alternatively, it can also be found here: http://www.wiziq.com/tutorial/168103-Steps-to-a-successful-Service-Transition

For more information contact:

Samantha Selvini
Press Officer
Tel: 020 7632 7990
Email: samantha.selvini@plan-net.co.uk

Where is that ‘cultural change’ which makes ITSM Best Practice effective?

April 20, 2011

Most organisations nowadays have heard about the benefits of implementing an IT Service Management Best Practice framework, such as Control Objectives for Information and Related Technology (CobiT) or the Information Technology Infrastructure Library (ITIL). More than half have implemented some of the core processes, mainly Incident, Service Desk and Change Management. A good number of them believe the discipline has brought them some benefits, but many are also disappointed that they haven’t achieved the results they were aiming for.

There are two main reasons for this. First of all, as any Service Management professional knows, having all the processes, policies and tools in place is not enough if people fail to adopt them. Achieving cultural change across the organisation, so that staff at all levels understand the need to change, how the processes work and what type of benefits each process can bring to their own individual work and to the business as a whole is the most difficult task in a Service Management Best Practice implementation.

Second, even if an organisation invests in training and awareness sessions, the improvements still need to be assessed over time. The effects of the processes and cultural change cannot be seen immediately or after a few months. Real results may come after 2 or 3 years. However, investing in another traditional maturity assessment is an investment many financially-challenged organisations wouldn’t want to make.

The criteria of maturity assessments carried out by SOCITM or with the ITIL toolkit is limited and not all-encompassing – they focus more on processes adopted ‘on paper’ rather than on the actual efficiency reached. But a number (2/5, 4/5) does not tell them whether they are actually working efficiently or not. And that is what organisations want to know: how efficient are we and what can we do to improve?

To evaluate the results of an IT Service Management Best Practice implementation and its alignment with the organisation’s goals and needs, it is more helpful to carry out a Service Efficiency Review, and to adopt monitoring aids such as Key Performance Indicators (KPI) and Customer Satisfaction Surveys in order to keep a clear view of the situation. But many organisations seem to see Best Practice as a one-off, without truly understanding that its value only exists if the efforts are consistent and if the processes are continuously adapted to the changing times and needs. They take it as if it was self-serving – once implemented it should do all the work by itself, without the need of any human effort.

Cultural change should strongly address these misconceptions, and not just convince people to adopt the processes. But it is not an easy task. Many organisations are reluctant to spend money on what they believe are unnecessary expenses, and it is not simple for Service Management professionals to justify a second efficiency review. Perhaps if consultants offered a follow-up review which provided ‘real-world recommendations’ and which was not just a standard tick-the-boxes assessment of out-of-the-box processes, public sector organisations would be keener to consider doing it. And if the second review was offered at a special price so that it is less of a commitment, more results may be achieved: more organisations would want to do it, and the consultants could benefit from the case studies. But they, too, don’t seem to want to bother – most consultants would rather make the same effort for a new client and get much more money and follow-up work.

From the lack of data on IT Service Management implementations which have remained successful in time, of case studies which can show that a form of cultural change has really taken place and lasted, and from the small number of organisations who have an efficiency review at the end of an implementation or more than once, it is evident that there is little interest on both sides in changing this scenario.

But if efforts are needed on both sides, it is Service Management professionals who should make the first move in order to change things. It is important that consultants manage to reach the higher management, and not only involve those who work within IT, and change first of all their attitude towards Service Management Best Practice. It is ultimately up the C-executives and senior managers to encourage cultural change across the organisation, acting from the top with policies and agreed ethos to make change possible. That is why awareness sessions, training and software-lead experiential learning should be extended to higher management as well. Through these tools it is possible to deliver a true understanding of Best Practice and its benefits to the organisation, and hence justify all the efforts needed to reach the final aims of the discipline.

A lot of work needs to be done in order to allow for IT Service Management Best Practice effectiveness to be measured and demonstrated. Fortunately, more and more organisations understand the potential benefits of Best Practice to their business – their concern is the realistic delivery of its promise and how to maintain the results over time. To change the way both organisations and consultants think, both sides need to modify their attitude. Only this way, it may be possible for Best Practice to really deliver and, ultimately, for cultural change to take place.

 

 

Martin Hill, Head of Support Operations

Executive exceptions: Best Practice killers or just business as usual?

April 11, 2011

The principles behind ITSM Best Practice have a very clear purpose: they allow organisations to follow the most efficient route to effectively solve an IT-related incident, without wasting unnecessary time, effort and financial resources. Incidents are normally prioritised based on specific criteria, and clear processes are set out and must be followed both by end users who experience an incident and Service Desk analysts who deal with it.

If this is the theory of Best Practice, in reality things are a bit different. Prioritisation based on incident features, in fact, often struggles to overcome the one based on user ‘rank’. In many organisations some processes are put aside when it comes to the CEO needing help, even if they are just having issues opening an email attachment sent by a friend on their iPhone, or are circumvented and speeded up by users who escalate the incident to their boss in order to have higher priority.

Implementing ITSM Best Practice ‘on paper’ might not be enough to reach efficiency, then, if the culture of ‘executive exception’ kills off all Service Management efforts. But is it acceptable to have some sort of two-tiered system for IT Support where priority is often given to senior or key people, and to what extent?

First of all, it is important to note that it is not down to the Service Desk analyst to decide whether or not to give priority to a senior manager. Unless there is a known rule – e.g. ‘the CEO always comes first no matter what’ – they should always refer to the Service Desk or Service Delivery manager on a case-by-case basis. It is they who ultimately decide if the IT Director’s faulty keyboard is to be dealt with before the glitch in Joe Bloggs’ email or not.

But when this system gets out of hand and flexibility is the rule rather than the exception, perhaps it is time to reflect upon the issue and its consequences – like inefficiencies, delays in incident resolution and even financial loss. To analyse the situation, one must first identify where the problem originates and who is to blame: the indulgent IT staff who allow it to happen or senior management who take advantage of their position and expect to have a special service because of who they are?

In any case, it is more a cultural issue than a technical one, but whose culture needs to be changed and how the organisation should go about changing the system is something that needs to be given a lot of thought. Perhaps some ITSM Best Practice awareness should be delivered throughout the company, including all Service Desk staff and all end users regardless of position. Also, some strict policies should be put into place stating that only a small percentage of ‘executive exception’ can be allowed based on specific criteria – for instance, the importance of that operation to the business. If the CEO’s faulty keyboard happens during an important presentation aimed at winning new business, then it can be put before an email system glitch, if the latter does not have major negative consequences for the business.

A balance is definitely required when dealing with this problem which is so common in IT departments of companies of all sizes and across all sectors. It is down to each organisation, though, to decide whether this sort of flexibility is acceptable, to what extent it should be allowed and what to do to avoid it causing inefficiencies. Best Practice is a framework, not a step-to-step guide and should be adopted and adapted to each specific environment; an appropriate amount of tailoring is always necessary for it to produce cost-efficiency, and ultimately contribute to business success.

Sam Evanson, Operations Delivery Manager

Surviving IT spending cuts in the public sector

February 15, 2011

How to create cost-efficiencies in the post-Spending Review scenario

After the announcement of 25%-40% budget cuts last year, it is reasonable to expect IT to be one of the departments to suffer the most in public sector organisations. However, cuts in IT support and projects may bring inefficiencies and disruptions, which can then lead to real losses and increasing costs.  More than ever, CIOs and IT Directors at public sector organisations are taking various options into consideration, from quick-fixes to farther-sighted ideas, trying to find a solution that will produce savings without compromising on service quality and data security, and perhaps even increasing efficiency. Here are some common ideas analysed:

Solution 1: Reducing headcount

Firing half of your IT team will produce immediate savings since you will not have to pay them a salary the following months, but when Support staff is insufficient or not skilled enough to meet the organisation’s needs it can lead to excessive downtime, data loss, security breaches or the inability to access applications or the database. A ‘quick-fix’ such as this represents a false economy. Reviewing resource allocation and improving skill distribution at Service Desk level, on the other hand, can be a valid solution. Indeed many IT departments can find themselves top heavy with expert long serving team members where the knowledge supply out-weighs the demand. A larger proportion of lower-cost 1st line engineers with improved and broader skills and a fair reduction of the more deeply skilled and costly 2nd and 3rd line technicians can not only reduce staff spend, but also create efficiencies with more calls being solved with first-time fix.

Solution 2: Offshoring

Although the thought of employing staff who only ask for a small percentage of a normal UK salary may sound appealing, offshoring is not as simple as ABC. It requires a large upfront investment to set up the office abroad, with costs including hardware, software, office supplies and travel and accommodation of any personnel that manages the relationship with the supplier. Organisations are not able to afford that kind of investment, especially since this solution only creates cost-savings in the long term – but the public sector needs cost savings now. Furthermore, the different culture and law can represent a risk to information security: data could be easily accessed by staff in a country thousands of miles away and sold for a couple of dollars, as various newspapers and TV channels have found out. With the extreme sensitivity of data processed by Councils, charities and the NHS, no matter how hard foreign suppliers try to convince the public sector to offshore their IT, it is unlikely this will happen – it is simply too risky.

Solution 3: IT Cost Transparency

Understanding the cost of IT and its value to the organisation, being able to prioritise and manage people and assets accordingly and knowing what can be sacrificed, can help identify where money is being wasted, which priorities need to be altered and what can be improved. For instance, do all employees need that piece of software if only three people actually use it more than twice a year, and do you need to upgrade it every year? Do all incidents need to be resolved now, or can some wait until the more urgent ones are dealt with? Do you need a printer in each room, and when it breaks do you need to buy a new one or could you make do with sharing one machine with another room? These and many other questions will lead to more efficient choices, but only after having identified and assessed the cost and value of each aspect of IT, including people and assets.

Solution 4: Cloud computing

There are contrasting opinions on this matter. The Government CIO, John Suffolk encourages the use of this service, and reckons that the public sector would be able to save £1.2bn by 2014 thanks to this solution. However, many believe that placing data in the hands of a service provider can be risky due to the highly sensitive nature of the data involved, so traditional Cloud computing may not be an ideal solution.

A shared environment such as the G-cloud, where various public sector organisation share private data centres or servers, may be a safer option that allows the public sector to achieve major efficiencies and cost savings, while minimising issues related to data security.

Solution 5: Shared Services

A shared service desk is not for everyone – it can only work if the organisations sharing have similar needs, culture and characteristics, and as IT can be a strategic advantage for competitive businesses, sharing the quality may mean losing this advantage. But for the public sector, this solution may be ideal. Local councils with the same functions, services and needs will be able to afford a higher level of service for a reasonable price, sharing the cost and the quality.

Solution 6: Service Management Good Practice

‘Doing more with less’ is one of the most used quotes since the recession started. And it is exactly what the public sector is looking for. Public organisations don’t want to be ITIL-aligned, obtain certifications, and tick the boxes. All they want is efficiency and cost savings – and through the right Service Management moves, after an Efficiency Review to find out what needs improvement and how, this can be obtained through the right choices regarding people, processes and technology.

Solution 7: Managed Services

A solution where the IT Service Desk is kept internal with its assets owned by the company, but managed by a service provider is becoming more and more popular among organisations from all sectors. When the sensitivity of data and a desire for a certain level of control over IT rules out full outsourcing, but in-house management does not allow to reach potential cost savings and efficiencies, a managed service may represent the ideal ‘in-between’ choice. The post-Spending Review public sector, then, may benefit from a flexible solution that is safer than outsourcing, but more cost-effective than an in-house solution.

Every challenge can be a new opportunity

Although budget reduction may affect investment in large IT projects and shiny new technology, it also represents the ideal opportunity to analyse what is essential and what is not, and to prioritise projects based on this. The public sector, then, find itself prioritising for effectiveness over compliance, cost-efficiency over cheapness and experience over offers, when choosing providers and tools for their IT. This will lead to the choice of solutions that will help organisations run more smoothly and safely, invest their resources better and, ultimately, deliver a service that will bring maximum customer and user satisfaction.

Martin Hill, Head of Support Operations

(also on Business Computing World: http://www.businesscomputingworld.co.uk/how-to-create-cost-efficiencies-in-the-post-spending-review-scenario/)

Life after ITIL – creating a culture of Continual Service Improvement

August 3, 2010

Picture the scene: your organisation has decided to improve its IT department through the introduction of ITIL Best Practice. Some external consultants from an IT service provider came in to do a review and mapped out the project. They then implemented the agreed Information Technology Infrastructure Library (ITIL) processes while delivering awareness sessions to various members of staff. Perhaps you even got a few of your people v3 qualified. At last, your Best Practice project has been delivered and has finally gone live. But what now?

The Service Management experts are long gone and you find yourself alone in managing the improved environment. Things somehow seem to be slowly regressing to their previous state – as if the project never happened. But how can such a promising project prove so ineffective?

Unfortunately, many organisations don’t seem to truly realize that Best Practice is not a one-off implementation, nor is it self-sustaining. As Version 3 of ITIL underlines, there should be an iterative and interactive lifecycle approach to the various processes. Best Practice is an ongoing commitment, and not a time-restricted project.  It’s essential to continually revise, reassess, and improve the people, processes and technology in order to produce real benefits, especially in the long term. To do this, several elements must be taken into consideration – post-implementation support from service providers, ownership within the organisation and understanding and commitment of staff at all levels.

Post-implementation support

It is undeniably important that the consultants who have implemented the processes make themselves available for further support, to embed the discipline in the organisation. The service provider should come back regularly after the project has gone live to see if the new ways of working have been adopted across people, process and technology, and to help the organisation find ways of measuring the effects, evaluating the benefits and identifying the areas for improvement. But it’s not only up to the consultants to drive through improvements and focus the internal efforts. Ultimately, they will have to hand over ownership and responsibility to the client.

Commitment of staff

It is essential then that the people, processes, and technology in the environment are subject to Continual Service Improvement: the discipline must be understood, accepted, structured and well supported by senior management as well as staff at all levels. CSI is the wrap that allows all other processes to maintain their effectiveness, through ongoing reviews aimed at identifying inefficiencies followed by improvement actions. Actually, the CSI process itself must be continually evaluated and adapted to remain relevant, up-to-date and constantly aligned to the IT and the business objectives.

Senior management buy-in

Senior management, on the other hand, has to really understand the value of ITIL and be able to deal with any resistance to change found across the organisation. They have to ensure that the various members of staff at the tactical and operational levels understand how the new processes, technologies, and roles will affect the way they work. They have to clarify what efficiencies can be achieved not only by the organisation, but in the individuals’ everyday work as well.

For many people, change means stepping out of their comfort zone. Many are wary of, or simply not interested, in doing that. Communication is therefore essential: employees need to be shown the changes and benefits concretely and clearly, perhaps through awareness or experiential learning sessions. Management has to be able to justify the importance and usefulness of changes and how ITIL can support and deliver efficiencies. If this isn’t possible, then the project alone cannot produce the desired effects. If people don’t understand the need to change and don’t adopt the new processes and tools, the organisation will not reach what it aims to achieve and in some cases, may even go back to the previous state.

It’s the people across the organisation that will ultimately determine whether the ethos of CSI will be embedded. The key to making ITIL a framework that adds value and not just a nice-to-have is not solely in the technology or the processes, but the cultural change produced across the organisation.

It’s through regular assessment and review that the benefits of ITIL can be realized. To ultimately create a shared culture of Continual Service Improvement, management has to take ownership and highlight the benefits of change.


Steve Connelly, Head of Service Management

This article is featured on Tech Republic: http://blogs.techrepublic.com.com/tech-manager/?p=4106

Are you Off-Sure about your IT Service Desk?

July 15, 2010

No matter the economic climate, or indeed within which industry they operate, organisations are constantly seeking to lower the cost of IT while also trying to improve performance. The problem is it can often seem impossible to achieve one without compromising on the other and in most cases, cost cutting will take prevalence, leading to a dip in service levels.

When things get tough the popularity of off-shoring inevitably increases, leading many decision-makers to consider sending the IT Service Desk off to India, China or Chile as a convenient solution financially – low-cost labour for high-level skills is how offshore service providers are advertising the service.

In reality things are not so straightforward. The primary reason for off-shoring is to reduce costs, but according to experts average cost savings only tend to lie between 10-15%, and what is more, additional costs can be created – research shows, in fact, that they can in some cases increase by 25%.

Hidden costs, cultural differences and low customer and user satisfaction are reasons which have made nearly 40% of UK companies surveyed by the NCC Evaluation Centre change their mind and either reverse the move – a phenomenon known as ‘back-shoring’ or ‘reverse off-shoring’ – or think about doing so in the near future. Once an organisation decides to reverse the decision, however, the process is not trouble-free. Of those who have taken services back in-house, 30% say they have found it ‘difficult’ and nearly half, 49%, ‘moderately difficult’. Disruptions and inefficiencies often lead to business loss, loss of client base and, more importantly, a loss of reputation – it is in fact always the client and not the provider which suffers the most damage in this sense.

Data security is another great concern in off-shoring. An ITV news programme recently uncovered a market for data stolen at offshore service providers: bank details and medical information could be easily bought for only a few pounds, often just from call centre workers. Of course information security breaches can happen even in-house, caused by internal staff; however, in off-shoring the risk is increased by the distance and the different culture and law which exist abroad.

Not a decision to be taken lightly, then. Organisations should realise that the IT Service Desk is a vital business tool and while outsourcing has its advantages, if they do it by off-shoring they are placing the face of their IT system on the other side of the planet, and in the hands of a provider that might not have the same business culture, ethics and regulations as they do.

So before thinking about off-shoring part or the whole IT department, organisations would be wise to take the time to think about why their IT is so expensive and what they could do to improve it, cutting down on costs without affecting quality, efficiency and security and moreover, not even having to move it from its existing location.

Here are some measures organisations could take in order to improve efficiency in the IT Service Desk while at the same time reducing costs:

Best practice implementation

Adoption of Best Practice is designed to make operations faster and more efficient, reducing downtime and preserving business continuity. The most common Best Practice in the UK is ITIL (Information Technology Infrastructure Library) which is divided into different disciplines – Change Management, Risk Management, Incident Management to name but a few.

ITIL processes can be seen as a guide to help organisations plan the most efficient routes when dealing with different types of issues, from everyday standard operations and common incidents up to rarer events and even emergencies.

Whilst incident management seems to be easily recognised as a useful tool, other applications of ITIL are unfairly seen by many as a nice to have. But implementing best practice processes to deal with change management, for example, is particularly important: if changes are carried out in a random way they can cause disruptions and inefficiencies, and when a user cannot access resources or has limited use of important tools to carry out their work, business loss can occur – and not without cost.

Every minute of downtime is a minute of unpaid work, but costs can also extend to customer relationship and perhaps loss of client base if the inefficiencies are frequent or very severe.

Realignment of roles within the Service Desk

With Best Practice in place, attention turns to the set-up of resources on the Service Desk. A survey conducted by Plan-Net showed that the average IT Service Desk is composed of 35% first-line analysts, 48% second line and 17% third line. According to Gartner statistics, the average first-line fix costs between £7 and £25 whereas second line fixes normally vary from £24 to £170. Second and third line technicians have more specific skills, therefore their salaries are much higher than the ones of first line engineers; however, most incidents do not require such specific skills or even physical presence.

An efficient Service Desk will be able to resolve 70% of their calls remotely at first line level, reducing the need for face-to-face interventions by second line engineers. The perception of many within IT is that users prefer a face-to-face approach to a phone call or interaction with a machine, but in reality the culture is starting to change thanks to efficiency acquiring more importance within the business. With second-line fix costing up to 600% more, it is better to invest in a Service Desk that hits a 70% rate of first-time fix, users for the most part will be satisfied that their issues are fixed promptly and the business will go along way to seeing the holy grail of reduced costs and improved performance simultaneously.

From a recent survey carried out by Forrester for TeamQuest Corporation, it appears that 50% of organisations normally use two to five people to resolve a performance issue, and 35% of the participants are not able to resolve up to 75% of their application performance issues within 24 hours. Once you calculate the cost of number of staff involved multiplied by number of hours to fix the incident, it is not difficult to see where the costly problem lies. An efficient solution will allow IT to do more with less people, and faster.

Upskilling and Service Management toolset selection

Statistics show that the wider adoption of Best Practice processes and the arrival of new technologies are causing realignments of roles within the Service Desk. In many cases this also involves changes to the roles themselves, as the increased use of automated tools and virtualised solutions mean more complex fixes can be conducted remotely and at the first line. As this happens first line engineers will be required to have a broader knowledgebase and be able to deal with more issues without passing them on.

With all these advancements leading to a Service Desk that requires less resource (and therefore commands less cost) while driving up fix rates and therefore reducing downtime it seems less and less sensible for organisations to accept off-shore outsourcing contracts with Service Level Agreements (SLA’s) that guarantee a first-time fix rate of as little as 20% or 30% for a diminished price. It seems the popularity of such models lies only in organisations not being aware that quality and efficiency are something they can indeed afford – without the risk of off-shoring.

The adoption of a better toolset and the upskilling of first-line analysts, especially through ITIL-related training, will help cut down on costs and undoubtedly improve service levels. However while it will also remove the necessity to have a large amount of personnel, especially at higher level, the issues with finding, recruiting and training resource will still involve all the traditional headaches IT Managers have always faced. With this in mind it can often be prudent to engage with a service provider and have a co-sourced or managed desk that remains in-house and under internal management control. Personnel selected by an expert provider will have all the up-to-date skills necessary for the roles required, and only the exact number needed will be provided, while none of the risks associated with wholesale outsourcing, or worse, off-shoring, are taken.

Improving IT infrastructure and enhancing security

Improving efficiencies in IT does not begin and end with the Service Desk of course. The platform on which your organisation sits, the IT infrastructure itself, is of equal importance in terms of both cost and performance – and crucially, is something that cannot be influenced by off-shoring. For example, investing in server virtualisation can make substantial cost savings in the medium to long term. Primarily this arises from energy saving but costs can also be cut in relation to space and building and maintenance of physical servers, not to mention the added green credentials. Increased business continuity is another advantage: virtualisation can minimise disruptions and inefficiencies, therefore reducing downtime – probably the quickest way to make this aspect of IT more efficient in the short, medium and long term.

Alongside the myriad of new technologies aimed squarely at improving efficiency and performance sits the issue of Information Security. With Data Protection laws getting tougher due to the new 2010 regulations, forcing private companies to declare any breaches to the Information Commissioner who has the right to make them public, and facing them with fines up to £500,000, security is becoming even more of an unavoidable cost than ever. Increased awareness is needed across the entire organisation as data security is not only the concern of the IT department, but applicable to all personnel at all levels. The first step in the right direction is having a thorough security review and gap analysis in order to assess compliance with ISO 27001 standards and study any weak points where a breach can occur. Then workshops are needed to train non-IT staff on how to deal with data protection. Management participation is particularly important in order to get the message across that data safety is vital to an organisation.

Taking a holistic view of IT

Whatever the area of IT under scrutiny, the use of external consultancies and service providers to provide assistance is often essential. That said, it is rare to find an occasion where moving IT away from the heart of the business results in improvements. The crucial element to consider then is balance. Many organisations, as predicted by Gartner at the beginning of this year, are investing in operational rather than capital expenditure as they begin to understand that adoption of the latest tools and assets is useless without a holistic view of IT. When taking this methodology and applying it to the Service Desk it soon becomes apparent that simply by applying a Best Practice approach to an internal desk and utilising the new technologies at your disposal, the quick-fix cost benefits of off-shoring soon become untenable.

Pete Canavan, Head of Support Services

This article is featured in the current issue of ServiceTalk

Mind the skill gap

July 12, 2010

Service Desk efficiency starts from support staff

IT Service Desk efficiency is vital for any organisation to conduct successful business operations, regardless of the sector they operate in.

However, many IT Service Desks are far from cost-efficient and still have much work to do in order to reach their full potential. Inefficiencies and excessive costs might be the consequence of one or many factors, for instance the various Service Desk software applications do not fully integrate with one another or there are a lack of clear procedures for change management. But purchasing the latest tools and technologies might not be enough to overcome issues as a significant part of the problem is often the distribution and skill levels of support staff. The Service Desk consists principally of people – are they efficient enough?

A recent Plan-Net survey found that the average Service Desk is composed of 34 per cent 1st line analysts and 66 per cent 2nd and 3rd line technicians. In many cases, an efficient organisation of resource would have the weighting of resources change more towards 1st line. The demand for desk-side support can often be due to the inability of 1st liners to deal with a large number of incidents, be it because of a lack of appropriate skills, insufficient training or not having the right software to deal with most calls remotely.

Whatever the cause, there are two main problems in this allocation of resource. First of all, 2nd liners have more specific skills and demand higher salaries, so it can become increasingly expensive to employ such a large number of them – according to Gartner statistics, a 1st line fix costs on average between £7 and £25 whereas a 2nd line fix usually costs between £24 and £170.  However, a high number of incidents may not require the specific skills of 2nd line technicians or even desk side visits to be resolved. In fact, some simple and repetitive incidents such as password resets do not need support staff at all to be resolved: this task can be automated by software packages. It must be noted, though, that these still need some improvement in order to become more credible and secure, and ultimately gain more trust among organisations and consultants.

Secondly, this allocation of resource can prolong downtime and create disruptions. Desk-side staff take longer to fix incidents as they have to physically go to the end user’s desk instead of making a quick fix remotely over the phone. It could take a few minutes if they just have to go up four floors or much longer if they come from another building or city – in same cases getting to the user’s desk can take a two-hour drive. This all adds up to the time users cannot use their computer, access their database or use an important application, and to the time the analyst is not available to take other calls. Sometimes the issue is not only the time it takes to resolve an incident, but also the number of people involved, which can slow down the Service Desk massively. A recent survey carried out by Forrester for TeamQuest Corporation found that on average, resolution of an incident affecting service may require between two to five support staff. The Forrester data also shows that resolution can be a lengthy process. 35 per cent of organisations taking part in the research are in fact not able to resolve up to 75 per cent of their application performance incidents within 24 hours. It is easy to see how the cost of resolution mounts up. If there are numerous members of staff involved and their hourly salary is high due to their expertise it can be very expensive, especially when resolving a longstanding Major Incident.

The average industry figure indicates that an efficient Service Desk will be able to resolve 70 per cent of calls remotely at 1st line level, reducing the need for desk-side visits by 2nd line engineers and making resolutions faster. With 2nd line fixes costing up to 6 times more than 1st line fixes, it might seem sensible to find ways of reducing the need for them by investing in training and better management at 1st line level. This can be obtained with a few moves.

A first important step is to have staff adopt and adapt best practice processes, such as those described in the globally recognised Information Technology Infrastructure Library (ITIL) framework. This should be accompanied by the adoption of an appropriate integrated Service Management Toolset. With these in place, anything from incidents to changes will be taken care of in the most efficient way possible. It is important, though, that personnel receive extensive training to cover operational understanding of best practice and effective use of the technology at their disposal.

Another crucial up-skilling concerns soft skills. If a call centre engineer is able to communicate effectively and apply the appropriate questioning techniques to gather information, it will allow them to better understand what sort of incident they are dealing with, and this might reduce the number of calls passed onto 2nd line. Furthermore, 1st liners who can empathise with users, build a rapport and generally deliver good customer service play an important part in improving efficiency of the Service Desk and help keep user trust and satisfaction high.

Staff also need to be up-skilled to align with the new requirements brought upon by new technologies. For instance, with virtualisation and cloud computing services, server maintenance and email management are to be dealt with by the service provider, often eliminating the need for third-line analysts. Simple and repetitive incidents such as password resets, instead, can be resolved automatically with the implementation of purposely designed software. With the simplest and the most complex incidents being taken care of, the Service Desk is left with anything in between. This means that to achieve efficiency 1st line analysts will need to have a wide ranging knowledge that will allow them to deal with the large majority of calls, reducing the need for 2nd line personnel and therefore reducing staffing costs, but also overall IT expenses in the long run.

In fact, organisations in need of some cost-cutting and worried about the cost of transforming their Service Desk should look at the outcome of this investment: through the efficient management of IT support staff, there will be less financial and business loss connected to downtime, degraded service, data loss and even increased user satisfaction.  Moreover, if IT is made to work with the business and not for it, it is possible to form a strategic partnership that can not only minimise losses, but create new opportunities. There can definitely be a lot to gain from more appropriate resourcing of the Service Desk, as it will further support the strategic partnership between the business and IT.

Steve Connelly, Head of Service Management

This article has been published on the BCS website:  http://www.bcs.org/server.php?show=conWebDoc.36283

Is your IT Service Desk future proof?

June 23, 2010

Organisations across all sectors have more than realised that the unstable economic climate has brought along an increased need for flexible solutions, not only in the case of downsizing but in upsizing the business as well. While some companies are still struggling with budget cuts, others are looking at growth or re-expansion in the near future; regardless, both have reason to consider an improvement of their IT Service Desk with the help of the right service management solutions, in order to obtain a number of efficiencies. An efficient service desk can reduce IT-related costs, improve customer satisfaction and make business operations smooth and responsive – however, these outcomes cannot be reached by using an off-the-shelf solution which is only fit for present conditions. Organisations should adopt a solution that can remain solid and efficient both in the case of downsizing and cutbacks due to a recession, and as it replicates and extends to a new business dimension in the medium term as the company grows, something everyone is wishing for now that the economy seems to be slowly recovering.

As Best Practice identifies, people, processes and technology are all factors that need to be looked at and adjusted in order to obtain an IT Service Desk which is both flexible and scalable, and if the desk is or is to be managed by a third party contracts with service providers need to be seriously scrutinised to ensure they provide the organisation with a solution which is scalable regardless of the economic climate.

With regard to toolsets, although it might be cheaper to purchase a standard, fixed, one-size-fits-all solution, this might bring along extra costs in the long run if it does not allow easy amendments or any at all. You may be surviving with a tool which currently has limited functionality; however, what happens when the user base grows or the Services offered expand and the system has no ability to be adapted or requires extensive and costly professional services to deliver changes? These software solutions should be chosen and implemented keeping scalability in mind – they should not only be fit-for-business and ITIL-aligned, but fit-for-growth as well. It is important to immediately assess if a tool allows that sort of flexibility and, moreover, if there are the appropriate skills within the organisation to carry out any adaptation. All service management tools within the market place are aligned to Best Practice – they have to be, otherwise they cannot compete. However, some are more aligned than others. Any organisation considering selection should be clear about their specific requirements and their internal capabilities for development of the toolset moving forward and thus provide agility and alignment to the specific needs of that organisation, both today and in the future.

As for the process side of things, Best Practice in itself does not represent a barrier to flexibility; on the contrary, when correctly applied, it offers the means to carry out all operations smoothly and allow the business to up and downsize in the most efficient way. With a mature level of Change Management in place, as well as a good understanding of availability and capacity management, any alteration to business and IT dimension will be accomplished without causing significant disruptions and inefficiencies, which can cause problems such as data and financial loss, low customer satisfaction and poor credibility in the market. The trick is treating the Service Desk exactly as you would treat infrastructure, adapting processes that you could apply for instance to a server that needs to undergo some changes to the whole Service Desk.

For what concerns staffing, in-house or outsourced, if downsizing can present contractual issues that can slow down the process or make it more difficult and not really cost-efficient (from redundancy processes to TUPE or any financial binds resulting from contracts with providers), upsizing might present challenges as well. For a company with an internally managed Service Desk, defining contracts, finding the right skills and training personnel results in a significant investment of time and money. If the organisation is growing quickly, might be a lag regardless of personnel being in-house or outsourced: it might take some time to find the right candidates who are appropriately skilled, especially if they are required to hold a specific qualification such as the MCSE (Microsoft Certified Systems Engineer); if the organisation chooses to employ staff with lower skills, it might take some time to train them and get them to the desired level, not to mention it might cost as much as hiring staff with higher skills. It is becoming more prevalent to utilise a specialist third party and therefore delegate the responsibility and hassle, as they often have access to a wider pool of competent workers or have ‘floating’ staff readily available for the purpose, but it is important to stipulate a contract beforehand that makes it clear if immediate availability is a priority over skills, whether the client is required to pay for training when it is necessary, and how flexible the supplier is in regards to number of personnel – is it possible to lose ten analysts or acquire another ten without fines or surcharge and within a reasonable time frame? One challenge facing a lot of organisations as we climb out of the recession is the extension of Service hours at no or minimal extra cost as the business strive to deliver increased flexibility to their customers and distinguish themselves from their competitors.

On top of all this, to obtain successful resizing of the IT Service Desk it is essential that there is a good communication flow between the business and IT. It is in fact only through working together and with a holistic mind-frame that the IT Service Desk is able to move from being just a tactical tool to acquiring a strategic function that can create business value, and be active part in an organisation’s ride to success.

 

 

Pete Canavan, Head of Support Services

Find this article on Fresh Business Thinking: http://www.freshbusinessthinking.com/business_advice.php?CID=3&AID=6064&PGID=1