Partnership Management
Establish ways of managing and maintaining interactions with business units and stakeholders — these could include informal approaches, such as phone calls, emails, and courtesy visits, and formal written, signed agreements reviewed periodically.
Improvement Planning
Practices-Outcomes-Metrics (POM)
Representative POMs are described for Partnership Management at each level of maturity.
- 1Initial
- Practice
- Leverage off personal contacts and encourage cooperative behaviours with departments and customers as best one can.
- Outcome
- Reactive environment with minimal predictability and poor corrective actions, leading to budget overruns and/or over-investment (“sledgehammer to crack a nut”).
- Metrics
- Number of outages
- Total downtime
- Variance from planned BAU cost
- Helpdesk calls
- MTTR
- 2Basic
- Practice
- Focus relationship development on a few large customers of specific component silos (where known).
- Outcome
- Capability to get visibility of response times, availability, capacity, utilization and cost for each infrastructure category.
- Metrics
- IT component availability
- IT component response times
- IT component capacity (storage capacity, %CPU utilization, bandwidth capacity, …)
- Cost per discrete component
- % IT infrastructure covered
- MTTR
- Practice
- Hold business/IT reveiws which focus on resolving issues that led to constrained silo areas.
- Outcome
- Improved IT performance as a consequence of minimising recurring IT issues.
- Metrics
- Number of incidents per issue-type
- Number of incidents per category
- MTBF
- 3Intermediate
- Practice
- Develop the IT/business relationship to that of IT as a preferred supplier (delivers an efficient and reliable service and is engaged with the business to understand ongoing needs).
- Outcome
- Capability to get business-understandable view of the availability, capacity, response times, utilization and cost of each IT service, and how the performance of each infrastructure component contributes to these metrics (eg end-ton-end service response t
- Metrics
- Service availability (trended)
- Service utilization (trended)
- Service capacity (trended)
- Service latency (trended)
- Service cost (trended)
- % IT Services covered
- Service MTTR
- Service MTBF
- Cost per IT Service vs Industry Benchmark
- Adoption of IT service metrics
- Practice
- Have IT work with the business groups to understand the business needs of the customer and plans the delivered services accordingly, delivering high availability and cost efficient services.
- Outcomes
- Empirical Modelling:
- Improved service metrics and predictability within the IT environment.
- Improved user experience (as potential to minimise infrastructure threats before user impact)
- Monitoring:
- Increased availability
- Reduction in the time taken to resolve IT service issues and reduction in the number of recurring issues.
- Improved user experience.
- Metrics
- Empirical Modelling:
- Service response times (trended)
- Service availability (trended)
- Service capacity (trended)
- Service latency (trended)
- Service utilization (trended)
- Number of SLA breaches
- Theoretical Weighted Business Impact (Estimate of hours lost due to service outages/shortages).
- Monitoring:
- Availability
- MTTR
- MTBF
- Number of issues (by incident type)
- IT component metrics (actual vs SLA)
- IT service metrics (actual vs SLA)
- 4Advanced
- Practice
- Develop relationship between IT and business to that of strategic supplier (i.e. IT is engaged in business planning discussion as a key resource who contributes to the formulation of the overall business plan).
- Outcomes
- Abstracted view of IT services defined in terms of the business processes delivered, with an understanding of how each business process is performing.
- Ability to monitor IT contribution to business process performance via metrics such as business proce
- Metrics
- % Business processes mapped to IT services & monitored
- Industry benchmark cost per IT-enabled business process
- Practices
- Have IT make itself fully aware of the business strategy and engage with the business as a strategic idea source and a strategy enabler. (Do it!)
- Have IT work to understand how best to enable that strategy with a robust, efficient and reliable infrastructure. (Do it well!)
- Outcomes
- Provides insight into Actual vs Planned SLA performance (and thereby identifies areas where IT is hampering business performance)
- Drive continuous improvement in business process performance, helping to identify where IT investments will make the most beneficial.
- NOTE: By understanding how changes in business demand impact on IT services, IT services is better placed to divert scarce IT resources from one IT service to another.
- Following the introduction of the competitor's Fleximortgate product, the number of new applications.
- Metrics
- IT SLAs breached
- Business process SLAs breached
- Business process hours lost (or Number of transactions lost)
- Transactions handled per IT dollar
- Business process availability
- Business process response times
- Business process utilization
- Practice
- Get IT represented on the staff of each business group
- Outcomes
- Improved basis for prioritisation of investments
- Optimal level of investment in order to achieve target business performance levels (as opposed to excessive overinvestment or under-investment)
- Potential to manage risk more effectively
- Continuous improvement in IT service levels
- Target IT investments and effort in areas where the greatest impact can be made in terms of business process capacity
- NOTE: This insight can also be helpful in managing change from a legacy application to a new application solution (identifying bottlenecks in its adoption).
- Metrics
- Transactions handled per IT dollar
- IT SLAs breached
- Business process SLAs breached
- Business process impact (eg additional process capacity) of service investment
- Business process impact (eg business process hours lost from SLA breaches (ie no investment)
- Transactions handled per IT dollar
- Number of business process transactions (or hours) lost due to IT service/component failure
- 5Optimized
- Practice
- Develop the IT to business units and IT to organization at full partnership status — symbiotic relationship where IT are viewed as a value add resource within the organization.
- Outcomes
- Provides a 2-way understanding of the linkage from the business to the underlying IT environment, allowing the impact of IT on the business, and the impact of business plans on IT to be understood and quantified.
- Facilitates business-level scenario planni
- Metrics
- % Organization processes covered by model
- % Business decisions which leverage model input
- Variance from plan (ie how well does model reflect reality?)
- IT-contribution/loss ($) for each business process
- ROI (per IT dollar)
- Practice
- Get IT engaged in all strategic discussions as a core part of the process.
- Outcomes
- Improved strategic planning capabilities (business expansion/contraction, contingency planning, risk management, …) supporting opimised allocation of scarce IT resources to enable alignment with business priorities.
- Quantification of IT's contribution.
- NOTE: Different profiles of user place differing demands on IT services. Service analytics allow the business to understand accurately the usage and associated IT costs of, say, recruiting 400 new tax graduates for a UK prossional services firm. Service analytics is improving.
- Metrics
- Actual cost of achieving strategic goal vs Baseline percentage estimate.
- Cost of excess/under capacity.
- Business growth headroom capacity (% and Time-based), for each process.
- Improved operating margin.
- IT Cost/Value relationship for each business process.
- Practices
- Expand the scope and remit of IT so that IT works across business ecosystem to identify opportunities & potential synergies.
- Have IT sit at the organization level staff table.
- Outcomes
- Increased confidence in model.
- Improved capability to optimize IT.
- Metrics
- Variance (actual vs planned)
- ROI (per IT dollar)