Ian

Clayton Principal Service Management 101 LLC

IntroducGon to the Universal Service Management Body of Knowledge (USMBOK)

An overview of a universally applicable body of knowledge for the design, development and operaGon of service management systems and service provider organizaGons. Support site: www.sm101-support.com Email: [email protected]

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QuesGons?

During the webinar:

Please use the webinar prompt area provided

OpGonally email me personally:

[email protected]

Subsequent to this webinar and concerning the webinar or any aspect of service management, register and ask your quesGon at:
h`p://www.sm101-support.com

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Topics

The service age, and the relaGonship between a product, a service, and service management IntroducGon to a body of knowledge ExploraGon of the Universal Service Management Body of Knowledge (USMBOK) The service management system
20+ elements, 15-stage service lifecycle

The service provider organizaGon

Knowledge domains (roles) & Knowledge areas (competencies)

The service management qualicaGon scheme Sneak peek at the upcoming online best pracGce statement library.

COPYRIGHT 1996-2009 VKSII

The Service Age

Changes oered by new technologies have led to global service based economies - we are in the service age Service operaGons now comprise more than 80% of the Gross DomesGc Product (GDP) of major countries such as the United States and it is esGmated 85% of US workforce is in services Its common to have only 20% of product prices driven by direct manufacturing labor The remaining 80% are costs associated with the design, support, and general operaGons of services Work that adds no value (as viewed by the customer), typically comprises 50% of total service costs.

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Principles of the Service Economy

Customers are in control Customer outcomes count most Value is measured from customer outcome perspecGve Best performance metrics and measures are customer relevant Customers dont necessarily value concepts such as service management or process improvement you are able to associate it to benecial impact on how they how they achieve their desired results, or their cost We have entered the experien4al economy, where the customers interacGon and overall experience using products and services is the paramount concern RespecGng and managing the customer experience (encountering and using the service) is at the core of customer saGsfacGon.

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The Management ImperaGve Address One of My Problems!

Today's economic climate is causing management to Gghten budgets and re- prioriGze projects It is acGng as an accelerant for management expectaGons of the benets from invesGng in a service management iniGaGve All investments are subject to greater scruGny, with projects being reprioriGzed and non-performers shelved, or abandoned, perhaps permanently IniGaGves must complete and deliver on their promise, or a specic subset of deliverables, within a 30, 60, or 90-day period and have customer relevance.

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What is a Service?

A service is any act, deed or performance that one party or person can oer to another (now a legal deniGon), a transac4on The value of a service to the customer is through the results it helps them achieve by its use The importance of the service to the provider is through:
The sa4sfac4on it provides the customer in achieving their desired results, also termed (successful customer outcomes) The consequences of the saGsfacGon, including loyalty, brand recogniGon, dierenGaGon, up sell opportuniGes, and referencibility The revenue it generates for the provider compared with the cost of fulllment

All services are products and subject to the goods-service con4nuum.

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The Goods-Service ConGnuum

Food Clothing Jewelry House Automobile Television Restaurant Auto Repair VacaGon EducaGon Legal Advice DenGst Healthcare INTANGIBLE Service-dominant Products TANGIBLE Goods-dominant Products

Source: USMBOK

A means of typifying a product and determining the people element At the pure goods end of the conGnuum the product is the more tangible item At the service end the service aspect is more dominant InformaGon system services span the enGre conGnuum, providing logisGcal support to the sale of products as well as enabling customer results through use of a service.

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What is Service Management?

Service management is a systema4c method for managing the provision of services to customers at a known quality and cost Service management ensures the desired results and customer sa4sfac4on levels are achieved cost eecGvely Service management is a means by which the customer experience and interac4on with our products and services is managed Service management is also a transforma4on method for any organizaGon that wishes to operate as a service provider organizaGon The origin of service management is in product management Service management concepts and methods are universally applicable to any industry, including informaGon technology (IT).

COPYRIGHT 1996-2009 VKSII

Service Management requires

The adopGon of a service perspec4ve to the planning of product oerings and allocaGon of resources The embedding of a service subscrip4on, consumpGon and provision logic in the management approach A focus on the desired customer rela4onship and successful customer outcomes required by customers thinking outside-in A commitment to being operated and managed as a service (provider) organizaGon A matching of the quality of service, and its cost of provision, to customer requirements, objecGves and the outcomes Understanding points from which service can be accessed, managing the service encounter, and designing how services are supported A system and organizaGon for the fulllment of service requests.

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IT Service Management (ITSM)

ITSM is the term commonly used to describe the eort of transforming an IT organizaGon from one focused on managing the IT infrastructure, to also managing the provision of informaGon systems as services The startling and inconvenient truth about tradiGonal IT Service Management projects they fail the sponsoring organiza4on and customer Why, because most ITSM projects are inside-out. Inside-out thinking means they target benet in the form of improved internal pracGces, starGng and ouen staying, with a process, technology, or a best pracGce focus They require a considerable up front and sustained investment before benets are returned, they likely never return a tangible customer benet They are complex, harder to conGnuously improve, suer from inadequate communicaGon, and lack key stakeholder support.

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What is a Body of Knowledge?

A Body of Knowledge or BOK is a repository of informaGon containing the sum (known) total of all documented expert knowledge of a profession It codies the knowledge, posiGons its relevance to other BOKS, and provides a pragma4c framework for its use It denes what we know and what we do with that knowledge, the core competencies shared by the profession It helps us determine what to teach, how to hire, and how to posiGon the profession overall within an industry It conGnues to evolve as the profession evolves through open dialog and representaGon and is a living reference for the professional.

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Body of Knowledge Building Blocks

A BOK should include the following key elements:

A published Guide to the BOK, its goals, scope and content A Lexicon or glossary of key concepts and terms A website that provides a general overview that encourages and enables discussion within the professional community served A specicaGon for a study program and qualicaGon scheme A readily available library of best prac4ce statements

The general architecture of a body of knowledge (BOK) should be inclusive, open and extensible and allow conGnuous development of the BOK using transparent governance methods and be representaGve of the professional community it serves.

COPYRIGHT 1996-2009 VKSII

What is Universal Service Management?

Service management has been a long-standing subset of product management Service management as a concept and management approach predates this recent use by IT organizaGons Recently the concept of IT service management has been associated with the transforma4on of an IT organizaGon Universal service management recognizes the heritage of both the ITSM and product management sources and promotes their combined methods and concepts as a universally applicable framework for any type of service organizaGon.

COPYRIGHT 1996-2009 VKSII

What is the USMBOK?

The USMBOK denes service management as a systemaGc method for managing the provision of services to customers at a known quality and cost, to achieve their successful customer outcomes, its elements include:
The business planning & performance management frameworks The enterprise, customer and service models The 15 stages of a service lifecycle The policy management framework The governance framework The service transacGon engine And nine supporGng lifecycles that include: request, requirement, quality, asset, revision, change, release, event, and support

It recognizes the heritage of both the ITSM and product management sources and promotes their combined methods and concepts as a universally applicable framework for any type of service organizaGon.

COPYRIGHT 1996-2009 VKSII

The Guide to the USMBOK PublicaGon

The foremost responsibility of a service management professional is to understand the working elements of a service management system and service organizaGon, and how they interoperate to manage the customer experience and produce successful customer outcomes The Guide to the USMBOK provides a singular, coherent and comprehensive blueprint, and vital reference to help the service management professional in successfully achieving this responsibility The USMBOK also describes in outside-in thinking terms (customer interest rst), service management as a means by which the customer experience and interacGon with products and services is managed, and design of service encounters, moments of truth, and the customer and service request pathways For the provider organizaGon, the Guide respects Lean Thinking and oers a conGnuous improvement approach within service management, acGng as a transformaGon method for any organizaGon that wishes to operate as a customer centric service organizaGon.

COPYRIGHT 1996-2009 VKSII

Service Management Related Knowledge Areas

Much of the knowledge, tools , techniques and methods used for managing service are unique to service management A number of generally related knowledge areas are required to ensure a successful strategy and operaGon It is unlikely any single person will have all the knowledge and skills required Key addiGonal areas include:
Standards & regulaGons Related bodies of knowledge Environment specic knowledge Leadership skills Inter-personal skills.
Source: USMBOK

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Two Fundamental Service Management EquaGons

VALUE =

Results Produced + Quality of Service Price + Cost of Acquiring Service

Needs & Wants Expressed as Requirements EXPECTATION = Capabilities Expressed as Offerings

COPYRIGHT 1996-2009 VKSII

What is a Service Management System?

The service management system represents all the operaGonal and administraGve elements required by a service organizaGon to respond to market opportuniGes and customer needs The systems purpose is to enable the cost eecGve design, development, oering, contracGng, provisioning and support of quality assured services to targeted customer communiGes The goal of a service management iniGaGve is to establish and sustain a service management system that is customer relevant The journey to a service management system requires the transformaGon of an organizaGon and adaptaGon of best prac4ces.

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The Service Management System

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Service Management System Fundamentals

The service management system should answer a number of quesGon:
How the service provider decides which customer communiGes to serve What governance will be used to ensure the voices of the customer, provider and regulators is heard, and documented properly as service requirements How services will be marketed to each community How an exisGng or prospecGve customer can request service How requests for service are fullled How the design, development and provision of services is funded What key roles are required to manage the provision of service How performance will be measured and managed from a results achieved, and saGsfacGon level perspecGve How the service provider plans will be aligned with those of customer What transformaGon method will be used and how will the provider conGnuously improve.

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The Alignment Models

The Enterprise Model, a single descripGon of the vital locaGons, organizaGonal units, roles, persons and mandated regulaGons The Customer Model, one or more descripGons of the business environment, markets, compeGtors and customer communiGes The Service Model, one or more descripGons of how the service provider will service each Customer Model Alignment is achieved by the synchronizaGon of these three operaGonal models.

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The Business Planning Framework (BPF)

The framework provides a common planning approach referenced by both the customer and service provider The framework includes: Vision/philosophy Value statements Mission/Charter statements SituaGon/Status analysis ObjecGves/Goals Strategies TacGcs The framework is consistent with common strategic planning and business planning good pracGces.

COPYRIGHT 1996-2009 VKSII

The Performance Management Framework (PMF)

The framework provides a consistent method of establishing and measuring progress against the objecGves set in the business planning framework The framework spans seven major performance measures: Key result area Key performance indicator Key performance target Vital mission acGvity Service level objecGve Service level indicator Service infrastructure event Rule of thumb The framework integrates customer and service provider performance management systems.

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The Enabling Lifecycles

Nine stand-alone lifecycles are engaged as required to enable the overall service lifecycle: Request Requirement Asset Quality Revision (service/product) Change Release Support Event When and how each enabling lifecycle is uGlized is subject to operaGonal rules (policies) dened within the governance framework.

Requirement Lifecycle

Asset Lifecycle

Support Lifecycle

Request Lifecycle

Quality Lifecycle

Revision Lifecycle

Change Lifecycle

Release Lifecycle

Event Lifecycle

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The Policy Management Framework

Policy-based management is an administraGve approach that is used to simplify the management of a given endeavor by establishing policies to deal with situaGons that are likely to occur Policies are operaGng rules that can be referred to as a means of maintaining order, security, consistency, or other ways of successfully furthering a goal or mission and dened at a minimum of least three levels:
Global, mandatory use as dened across enterprise Regional, relevant to geographic region (country, state, industry sector) Local, specic to locaGon, group or role.

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Service Request: The Key Input to Service System

Improvement statement is a aggregaGon of: Customer oriented needs Non-customer needs Idea generaGon Catalog-driven service enquiries from ocial service access points by authorized persons Problem statement developed from: Service incident records All inputs are consolidated into a common service request format as the primary and singular input to the Service Lifecycle.
New Technology DerivaGve Technology Incremental Service Improvement DerivaGve Market Non-Customer Oriented Needs

Customer Interview Improvement Statement

Customer Oriented Needs and Wants

Idea GeneraGon Service Lifecycle or Service TransacGon Engine

Service Catalog

Service Request

Service Incidents

Problem Statement

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The Service Lifecycle

Opportunity

The lifecycle spans customer subscripGon to un-subscripGon, and service opportunity to reGrement The service lifecycle is placed at the core of the service provider organizaGon operaGons The lifecycle has ueen discrete but consecuGve stages that start with a service request The lifecycle has two major elemental lifecycles, the provision lifecycle (from opportunity to commission), and operaGons (from producGon-status operaGon to reGrement).

Require Dene Plan Concept Approve Design Develop Assure Deploy Commission Operate Maintain Revise ReGre

Provision

Operate

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The Service TransacGon Engine (STE)

The service transac4on is at the core of the service experience and represented by service requests Service requests are processed by transacGon processing applicaGons The service transacGon engine (STE) represents the real-Gme use of system services and applicaGon- based transacGon processing The vast majority of service requests are successfully processed Issues with processing can result in engagement of the event, service support and other enabling lifecycles.

The basis of a quality-based customer saGsfacGon survey

Pre TransacGon

TransacGon

Post TransacGon

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The Governance Framework

The governance framework provides the opera4onal rules by which the overall elements of the USMBOK inter-operate spanning four key levels The framework is subject to regula4ons (compliance) dened within the Enterprise Model The framework denes the scope of each USMBOK element and how it is used within a service provider organizaGon Specically, the framework denes how each knowledge domain and area is involved in decisions to provision, operate, support and manage each service.

Corporate Provider Service OperaGonal

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The Service (Provider) OrganizaGon

An organizaGonal element of the service management system that oers, contracts, and provides or delivers an instance of a service to a customer A service organizaGon contains key responsibiliGes that span the customer- infrastructure role con4nuum The concept is applicable to any IT organizaGon with the mission of delivering informaGon systems as a service to the enterprise and customer communiGes.

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The Role ConGnuum

The Role ConGnuum

RelaGonship Requirement Responsibility RegulaGons

Order Fulllment MarkeGng Opportunity Partnering

Service Infrastructure Facing

Quality Performance Excellence

Back Oce Delivery

OperaGons and Support

Infrastructure and Materials Management

Customer Facing

The Service Management System

Represents the specialized roles required to operate and manage a service organizaGon, spanning the customer and infrastructure facing roles Mandatory role taxonomy input to a governance framework Provides context for applicaGon and ownership of operaGonal policies, procedures, and best pracGces

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Knowledge Domains (Roles)

Seven major roles, represent key responsibiliGes found within a service provider organizaGon, including:
Service Customer Management Service Fulllment Management Service Quality Management Service Delivery Management Service OperaGons Management Service Infrastructure Management Service Value Management

Each role has knowledge areas represenGng mulGple skills or competencies with knowledge, skills and abiliGes.

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Knowledge Areas (Competencies)

The USMBOK contains 40 knowledge areas, corresponding to major competency (pracGce) Each knowledge area leverages exisGng informaGon references and in some cases credenGal programs Supports skill-path, role- based curriculum Leverages proven and universally applicable service industry methods.

Source: USMBOK

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The natural tendency of organizaGons to think Inside-Out

Firstly, its a natural tendency and common for most organizaGons to look inward at what work they do to think inside-out Inside-out thinking places a greater emphasis, someGmes total, on how the work is performed, its eciency, producGvity, and the product quality This is especially true if the organizaGon is detached or insulated from its end customers, a monopoly, the economy is healthy, and the operaGonal environment stable Unfortunately, inside-out thinking is commonly associated with a failure to think customer, to understand why the work is performed, and to fail to associate the benets of a project or iniGaGve with customer results and saGsfacGon levels Most IT Service Management iniGaGves are inside-out.

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The Basis of Outside-In Thinking Customer First!

The customer, and customer experiences ma`er most because quality goods and customer saGsfacGon are commodiGzed Customer loyalty lowers costs and is increasingly necessary to be compeGGve. The best way to drive loyalty is to create consistently compelling and authenGc experiences for the customer To design these experiences, we need a new skill set, a new way of understanding people, and of understanding our customers We must observe people in their own habitat to understand their behavior, how they think and act, and what moGvates them to behave in certain ways This understanding enables us to design things that are meaningful and valuable to people, helping them achieve their desired results, outcomes We must not start by designing products and internal processes, and start designing experiences. We must design services from the outside in.

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The Outside-In, Inside-Out (OI-IO) ConGnuum

The Outside-In (OI) Inside-Out (IO) ConGnuum

Customer Experience

Stakeholder Scenarios InteracGon Touchpoints Successful Outcomes

Service Request Service Encounter Moments of Truth

Business/IT Alignment Service Product Brand

Standard Work

Infrastructure Centricity

Customer Centricity

SaGsfacGon Loyalty Advocacy

Best PracGce Process Capability Maturity

Infrastructure and Materials Management

The Service Management System

Experience Service

Source: Outside-In Service Management, 2009 Ian Clayton

Goods

CommodiGes

Represents the span of centricity and transformaGon journey of a prospecGve service organizaGon Provides context for a transformaGon journey driven by a conGnuous improvement program

COPYRIGHT 1996-2009 VKSII

The Service Management QualicaGon Scheme (SMQS)

Peer-based (not hierarchical) credenGal scheme focused on the ROLES and COMPETENCIES required to successfully operate and manage a service provider organizaGon Spans and leverages a universal, holisGc view of service management Deliberately developed to be compliant with the ANSI/ISO/IEC 17024 InternaGonal Standard for accreditaGon agencies Includes three-year con4nuing educa4on cycle based upon a combinaGon of work experience and educaGon history
Oered and managed by the non-prot organizaGon, the Service Management Society (h`p://www.sm-s.org).

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SMQS: Personal CredenGals

CerGed Service Management Professional (CSMP) CerGed Lean Service Professional (CLSP)

Cer4ed Associate in Service Management (CASM) Cer4ed in Service Management Fundamentals (CSMF)
Cer4ed Sustainable Opera4ons Professional (CSOP)

CerGed Knowledge Domain based roles:

Cer4ed Service Customer Manager (CSCM) Cer4ed Service Fulllment Manager (CSFM) Cer4ed Service Quality Manager (CSQM) Cer4ed Service Delivery Manager (CSDM) Cer4ed Service Opera4ons Manager (CSOM) Cer4ed Service Infrastructure Manager (CSIM) Cer4ed Service Value Manager (CSVM).

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Summary

Service management is a systema4c method for managing the provision of services to customers based upon a known quality, cost, desired results, and customer sa4sfac4on levels. Service management, born out of product management, describes concepts and strategies useful as a transforma4on method for any organizaGon intending to change and operate as a service provider, including an informaGon technology (IT) organizaGon. The Universal Service Management Body of Knowledge (USMBOK) organizes, disGlls and provides ready access to a core body of knowledge for service management that can be universally applied within any service industry and service provider organizaGon.

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The Guide to the USMBOK PublicaGon

By a`ending this webinar you receive a $75 discount o the list price of the Guide to USMBOK book The Guide is a Rose`a Stone for service management, codifying and connecGng: Universally applicable concepts and methods for any service management iniGaGve Elements of a service management system Key roles in a service organizaGon Your promoGon code is GUIDE75 A companion publicaGon is the USMBOK Lexicon.

COPYRIGHT 1996-2009 VKSII

Ian Clayton Principal Service Management 101 LLC

INTRODUCTION TO THE USMBOK

SERVICE MANAGEMENT 101 SERIES
Thank You. Any quesGons? [email protected] www.sm101-support.com For more informaGon please visit: www.servicemanagement101.net Universal Service Management Body of Knowledge: www.usmbok.org Ians personal blog: www.ianmclayton.com.

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USMBOK Best PracGce Statement Library

ConGnuously updated online library of best pracGce statements More than 5000 entries, spanning: USMBOK ITIL V2 and V3 Deciphers for ITIL Roadmap describes gradual expansion and addiGonal content: Key Performance Measures Decipher for InternaGonal Standards (ISO 20000) Access requires annual subscripGon Next release scheduled for August 1st, 2010

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Upcoming Events

Complimentary Webinars:
6 Steps to Outside-In Service Management Thursday January 28th 08:00-09:00a Pacic Time IntroducGon to the ITSM-SOS Program Friday February 5th 09:00-09:45a Pacic Time

EducaGon:
CerGed Lean Service Professional (CSMP) April 12-14, San Diego CA CerGed Service Management Professional (CSMP) April 19-23, Orlando FL

COPYRIGHT 1996-2009 VKSII

What is Universal Service Management?

Service management has been a long-standing subset of product management Service management as a concept and management approach predates this recent use by IT organizaGons Recently the concept of IT service management has been associated with the transforma4on of an IT organizaGon Universal service management recognizes the heritage of both the ITSM and product management sources and promotes their combined methods and concepts as a universally applicable framework for any type of service organizaGon.

COPYRIGHT 1996-2009 VKSII

A Service SpecicaGon

A service need to be specied in terms understood by its prospecGve and actual customer communiGes, from the outside-in, and include many if not all of the following a`ributes:
Consumer Benets FuncGonal Parameter(s) Access Points Consumer Count (Capacity) Readiness (Availability) Times Support Times Language(s) Fulllment (Level) Target/ObjecGves Maximum Impairment (Number, Frequency and DuraGon per Incident) Delivery DuraGon per Access Point Delivery Unit and Price per Unit.

COPYRIGHT 1996-2009 VKSII