Sunday, June 14, 2015
PR 64 - Enterprise IT Governance - MIA
For a team to win games and claim championships, it needs to be more than a group of individual star players with unique sets of specialty skills. Winning teams operate under a common vision and mission, and share a playbook established by strong leaders who understand how the various members of the team are best organized to achieve team goals. Following this analogy, business and IT leaders across an enterprise should logically share a common vision, portfolio priorities and agreement on how to collectively leverage technology resources and data to achieve business objectives.
To carry our sports analogy a bit further, what is needed is an informed and skilled Senior Coaching Staff who understand that their primary responsibility is to take a team of very diverse players and optimize their performance as a collective whole, versus focusing on one or two star players. While using sports analogies helps, the real challenge facing the IT industry is defining what is actually meant by the concept of “Governance.” This year’s Pink Think Tank (PTT15) has taken on the subject of Enterprise IT Governance - Missing In Action.
Join George, Rob England (The IT Skeptic) and I in this episode of Practitioner Radio as we discuss the challenges organizations face in defining and establishing Enterprise IT Governance.
- Some experts define IT governance as processes that ensure the effective and efficient use of IT in enabling a business to achieve its goals. But IT governance is a term that, although widely used, is not really fully understood (or many believe, even practiced). So, what does ‘governance’ mean? Apparently, many agree it is important to have. However, when people (even experts) are asked what governance is, you will get widely different answers as to what it is, what it consists of, and why it is so important. The PTT will seek to debate, define and document this subject so that Pink15 attendees can better understand the components of governance and why it is important to a high-performing IT organization.
Troy’s, Rob’s and George’s Thoughts What Are Yours?
“If you don’t know where you are going, you’ll end up someplace else.” ~Yogi Berra
To subscribe to Pink’s Podcasts on iTunes
Wednesday, April 08, 2015
PR 63 – Using Lean Visual Management For ITSM
A Picture Is Worth At Least A Thousand Words If Not Many More!
In this episode of Practitioner Radio George and I explore how Lean Visual Management / Control is key to successful team collaboration and how it supports the principles of ITSM Continual Improvement. Lean Visual Management has been successfully used to enhance team productivity, improve velocity and enable critical just in time communication in all industry sectors.
Lean’s more recent adoption by the Services and now the IT industry is providing critical tools to enable and overcome complex and virtual team dynamics and communication challenges. As our IT delivery models continues to become more diverse in respect to the growing number of third party suppliers involved in the IT Service Value Network, Lean IT tools such as Visual Management become even more critical. Join George and I as we take a fun but practical look at how these principles and working methods can change your team’s results.
- Lean IT Certification
- Pink Lean IT Course
- Lean Visual Management / Control
- Visual & Experiential Learning Styles
- PR Episode 31 - Hands On with Experiential Learning
- Visual Boards using in Lean IT and Agile Mythologies (Day Boards, Week Boards, Improvement Boards, Kanban Boards)
- Day boards critical to collaboration
- Working based on last instructions given
- Lack of communication kills productivity
- Virtual Management Tools
- Lean Kit.com
- Kanban Boards
- YouTube: Intro to Kanban in Under 5 Minutes
- Lean is about optimizing not maximization
- Work in progress limits (WIP Limits)
- Using Kanban for Team Management
- Visual is really about sharing information in a clear and concise way
- Visual Management is also about understanding FLOW
- Watching the unit of work flow to improve velocity
- Lean and Theory of Constraints (Inventory, Operating Cost & Througput)
- Theory of Constraints & Continual Process Improvement
- PR Episode 18 - TOC, LEAN and Six Sigma The Three CSI Sisters
- Its only when the service or product is used or consumed is value received or delivered
- Switching Cost kills productivity
- Week Board and Improvement Board
The Picture Is The Thing That Captures The Imagination Of The King
Troy’s and George’s Thoughts What Are Yours?
“What underlies great science is what underlies great art, whether it is visual or written, and that is the ability to distinguish patterns out of chaos.” ~Diana Gabaldon
To subscribe to Pink’s Podcasts on iTunes
Tuesday, March 03, 2015
PR 62 - How To Get The Money You Need For IT
Every Service Owner Is An Internal Entrepreneur
In this episode of Practitioner Radio, George Spalding and I are joined by our guest Dean Meyer, President of NDMA and the author of Internal Market Economics. During this podcast we discuss the criticality of understanding the principles of Service Costing and Investment Based Budgeting.
“To truly add value to the business – indeed, to survive – internal IT organizations need to be savvy about their financial and resource-governance processes. And to design effective processes, four distinct ITIL processes must be integrated. Here’s why….
The IT Industry is no stranger to change. Those changes typically come in the form of technology advancements, which prove “Moore’s Law” and revolutionize the technology landscape. Recently, many internal IT functions are facing a new type of pressure to change, one that has little to do with technology. With the rise of cloud computing and the growing sophistication and marketing prowess of the managed-services vendors, IT is competing to maintain its market share as business units shop IT services outside. To compete against the growing consumerization of IT services, internal IT departments need to move from a technology-centric focus to what is being called an “IT Services Organization.” The goal is not to establish IT as an arm’s-length business, but rather to move from simply a technology supplier to a strategic partner that understands business strategies and can communicate the strategic value of IT.
As a key part of this partnership, a competitive internal IT function must be able to demonstrate how business investments in IT are mapped to services and products which deliver business benefits and enable business objectives. Without this ability to map investment to outcomes, business clients see IT’s costs but may not appreciate its value, putting an internal IT function in an unfavourable light compared to external service providers. Essentially, this means running IT as a business within a business, with sound business practices like product marketing, account management, and financial management. The financial management of an IT Service Organization include practices such as publishing a catalog of services with costs, and negotiating a budget based on the costs of the services and products that IT is expected to deliver – an investment based budget. In short, IT must move beyond a discussion about what it does to what it sells.
To address these challenges, ITIL defines four process areas – demand forecasting, service portfolio management, service costing, and budgeting. In ITIL, these are four distinct processes. But to be effective, these four processes should be integrated in a single annual planning process.
- Introductions: Dean Meyer President NDMA and Author of Internal Market Economics
- Just back from Pink15
- The primary drivers for improving IT Financial practices especially costing and budgeting
- Investor’s need to be able to map their investment to outcomes otherwise you get resentment
- IT has a trust problem and we bring it on ourselves based on our budgeting practices
- Investment based budgeting: Budgeting based on outcomes rather than cost centers
- Many organizations use the bad process of “Rolling Budgets” - or + 10% of spend of last year
- Some organizations are moving to Service Based Costing but not Service Based Budgeting
- Key Book - Internal Market Economics
- For Key ITIL Processes (Demand Forecasting, Service Portfolio, Service Costing, Budgeting)
- Investement Based Budgeting: Service Portfolio -> Service Catalog -> Services Offerings ->Rates ->Budgets
- Demand Forecasting = Sales Forecasting
- Shadow IT = Loss of Internal IT market share due to trust and issues of perceived value
- To win back market share you need to become the vendor of choice
- Business Within A Business means running a Service Organization as vendor of choice
- Vendors of choice now what their services cost and price them according to value
- Shadow IT is a derogatory term based on competitor resentment
- Vendor of choice is impossible without understanding your costs and budgets
- Once we understand our costs we can create the financial governance processes required to run IT as a service organization
- Every manager in the IT Organization is an Entrepreneur (Service Owner) running a business within a business
- Service Demand comes from a variety of sources (business units, projects, corporate requirements, IT requirements, etc..)
- Service Structure: Prime’s and Sub’s - Example ERP Service supported by Network / Storage
- Internal Business Eco-system = Internal Market Economics
- How Money Flows (Wedding Cake) direct budgets, business unit bee for service, allocations
- No one gives you money to pay your costs, they give you money to buy services they value
- Internal Market Economics does not require charge back
- Internal Market Economics has two major sub-systems: Planning / Tracking
- IT must be seen as an investment not a cost
- Resources: www.fullcost.com
- Start with the planning process before you ever consider charging
George’s, Troy’s and Dean’s Thoughts What Are Yours?
“Beware of little expenses. A small leak will sink a great ship.” ~Benjamin Franklin
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