SLA, A Critical Tool to Support Highly Stressed Business Processes

itSMF Annual Conference

November 2003

Agenda

1 2 3 4 5
2
DMR Consulting

Why SLAs? ITIL Introduction Service Level Management Implementation Considerations Wrap-up

Why SLAs?

Are they being served?

Where did my IT expense $ go? How does IT support my business? What level of IT service am I getting? IT? Value? Wheres the connection?

Am I getting value for my money?

4
DMR Consulting

Opposing Perspectives
Business View
Once IT projects end, its tough to see what drives IT costs. IT does not have a good handle on controlling its expense $. Im unsure of how my IT demands create costs its a mystery. I find it hard to get commitments on IT service levels. Why is this so difficult?
5
DMR Consulting

IT View
The business is only interested in projects, not operations & maintenance. The business keeps asking us to reduce expense $, while creating more demand. The business often expects something for nothing. The business has unrealistic expectations of service levels. Why is this so difficult?

Why SLAs?
To prevent this:

IT

Service Desk

Business Units

6
DMR Consulting

Service Level Management Goals

Develop a business-value basis for IT services Encourage effective business usage of IT services to help manage costs Set a clear, manageable expectation for the businesses regarding the delivery of IT services Embed a measurement culture for IT services Facilitate accountability for the delivery of IT services Facilitate the reuse of service components to simplify service management and operation
7
DMR Consulting

Achieving the Goals

As always, this requires a combination of: business alignment people process technology organization. Are there frameworks we can leverage?
8
DMR Consulting

ITIL Introduction

What is the ITIL?

IT Information Library A series of books giving guidance on integrated IT management processes A frame of reference describing IT service management best practices A complete model in the public domain for the delivery of IT services An independent model of IT makers (software and hardware) and the key consulting firms they recognize
10
DMR Consulting

ITIL Key Objectives

To align IT services with the current & future needs of the business, and its customers To improve the quality of the IT services delivered To reduce the long-term cost of service provision

11
DMR Consulting

The ITIL Jigsaw

ITIL Service Level Management (SLM) is in here

12
DMR Consulting

Core ITIL Disciplines

Service Delivery Continuity Manage ment Service Support Release Management Service Desk

Service Level Management

Tactical Processes

Capacity Manage ment

Financial Manage ment

Availability Manage ment

Incident Management
Operational Processes

Problem Management

Change Management

ITIL

Configuration Management IT Operations IT Operations

13
DMR Consulting

IT Infrastructure

IT Services

ITIL

Service Level Management

SLA versus SLM

SLM
The process in charge of managing the quality and quantity of IT services

SLA
The written agreement between the IT department and its customers describing the characteristics of the services to be delivered

15
DMR Consulting

Service & Service Catalog

Service
Not to be confused with technology Visible services (for SLAs) Access to applications, Printing services, Messaging services, etc. Non-visible services (for OLAs & UCs) Network services, Infrastructure, etc.

Service catalog
Collection of all the visible services the IT department can provide its clients

16
DMR Consulting

Service: something the client can describe in its own terms and is willing (potentially) to pay for

SLRs & SLAs

Service Level Requirement
Prior to a new service or first stage of an existing service that is not measured Reflects desired service levels

Service Level Agreement

Services agreed on with the client that can be measured Reflects target service levels

17
DMR Consulting

OLAs & UCs

Operational Level Agreement
Agreement with internal IT resources to satisfy clients SLAs

Underpinning Contract
Contract with external service provider to satisfy clients SLAs.

18
DMR Consulting

Relationships
Relationships between clients, service catalog, SLAs, OLAs and UCs
Service Catalog
Client A Client B Client C

SLA A1
Non-standard service

SLA A3 SLA A2 Service SLA B

SLA C
Client Service Delivery Internal Suppliers

OLA 1 19
DMR Consulting

OLA 2

OLA 3

UC 1

UC 2

External Suppliers

Service Catalog Contents

1 2 3 4 5 6 7 8 9 Document Information Foreword Signatures IT Profile Service Desk Service Hours and Accessibility Charging Definition of Services and Products Index and Definitions List of Attachments/Associated Documents

20
DMR Consulting

SLA Contents
What should be in the Service Catalog?

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17

Document Information Signatures General Terms Summary of Responsibilities Service Description Incident and Problem Management Changes Affecting this Agreement Charging Restrictions Growth Management Reporting Training Service Review and Evaluation Business Continuity Security Requirements Index and Definitions List of Attachments/Associated Documents

21
DMR Consulting

*Similar structure can be used for OLAs & UCs

In a Nutshell
Enabling Services Component parts of delivered
services Can be internally or externally delivered

SLA Service Level Agreements Linked to Service Definitions Key metrics What the business expects to get

Toolsets Management toolsets

Process based Technology based Monitoring and measurement

Desktop
(internal provider)

WAN

Technology Elements

LAN

Exchange
(internal provider)

(external provider)

(internal provider)

Toolsets
Serv ice Mgmt

Services
Catalogued Services What the business buys
Service Catalog Service Definitions

In c i d e n t, P ro b l e m , C h a n g e , .

HRIS

OLA

OLA

OLA

SLA

BUSINESS USERS BUSINESS USERS BUSINESS USERS BUSINESS USERS

Financials

OLA

OLA

OLA

SLA

UC Externally provided
services Linked to OLA targets

E-mail

OLA

OLA

OLA

SLA

UC
Systems Mgmt

OLA Operational Level Agreements

Linked to SLA targets Internal agreements

22
DMR Consulting

A l e rt M o n i to ri n g , C a p a c i ty & P e rf o rm a n c e , .

SLM Lifecycle - A Flat View

Established Function Implement SLAs Periodic reviews

Design

Manage the ongoing process

Define Capability

Publish

Deliver

Consume

Enabling/Internal Services OLAs e.g. NT Server External Services UCs

SLAs

Manage

Service Management Methodology ITIL Processes

23
DMR Consulting

Requirements , Governance, Funding & Reporting

Service Catalog Review OLAs & UCs Monitor Typical chapters Report Commitments Managed Services Review Signatures Development Services Exceptions to Consulting Services standard STUFF WHICH THE BUSINESS VALUES !!!!

Key Roles
Clients Service Owner Users SLM Process Owner OLA Owners UC Owners Every role has responsibilities and/or accountabilities defined by the service organization and its processes

24
DMR Consulting

Service Metrics
Create
Service reports & traffic lights Detailed reports from infrastructure management tools Service reviews Management reviews Dashboards
In c id e n ts
85 60 35 10

Change

N o . o f In c id e n t s lo g g e d a n d c lo s e d

C lo s e d In c id e n t s In f o rm a t io n

T ra n s c o C h a n g e s

1 0 .0 % 8 .0 % 6 .0 % 4 .0 % 2 .0 % 0 .0 %

100

100

90 80 70 60 50 40 30 20 10

80 60 40 20

Number of calls

-1 5 -4 0 -6 5 -9 0

-2 .0 % -4 .0 % -6 .0 % -8 .0 %

-1 0 .0 % 3 0 -J u l 0 6 -A u g 1 3 -A u g 2 0 -A u g 2 7 -A u g 0 3 -S e p 1 0 -S e p In ta rg e t O u t o f ta rg e t A c h ie vm e n t (T a rg e t 9 0 % )

0 3 0 -J u l 0 6 -A u g 1 3 -A u g 2 0 -A u g 2 7 -A u g 0 3 -S e p 1 0 -S e p C h a n g e s re g is te re d C h a n g e s Im p le m e n te d E xp e c te d L e ve l

Benefits
Management by fact! Proof of delivery Enables review Stimulates improvement

3 0 -J u l

0 6 -A u g Logged

1 3 -A u g

2 0 -A u g

2 7 -A u g

0 3 -S e p

1 0 -S e p

C lo s e d

E xp e c te d L e ve l

N o . o f In c id e n t s lo g g e d a n d c lo s e d
50 45 40 35 30 25 20 15 10 5 0 3 0 -J u l 0 6 -A u g Logged 1 3 -A u g 2 0 -A u g 2 7 -A u g 0 3 -S e p 1 0 -S e p 50 40 30 20 10 0 Number of calls -1 0 -2 0 -3 0 -4 0 -5 0 3 0 -J u l

C lo s e d In c id e n t s In f o rm a t io n
1 0 .0 % 8 .0 % 6 .0 % 4 .0 % 2 .0 % 0 .0 % -2 .0 % -4 .0 % -6 .0 % -8 .0 % -1 0 .0 % 0 6 -A u g 1 3 -A u g 2 0 -A u g 2 7 -A u g 0 3 -S e p 1 0 -S e p In ta rg e t O u t o f ta rg e t A c h ie ve m e n t (T a rg e t 9 0 % ) 9 9 .9 6 % 9 9 .9 5 % 9 9 .9 4 % 3 0 -J u l 9 9 .9 7 % 1 0 0 .0 0 % 9 9 .9 9 % 9 9 .9 8 %

N e tw o rk S L A Av a ila b ilit y

0 6 -A u g

1 3 -A u g

2 0 -A u g

2 7 -A u g

0 3 -S e p

1 0 -S e p

C lo s e d

E xp e c te d L e ve l

N e tw o rk S L A c o n fo rm a n c e

S L A Ta rg e t

W AN
N o . o f In c id e n t s lo g g e d a n d c lo s e d
25 20 15 10 5 0 3 0 -J u l 0 6 -A u g Logged 1 3 -A u g 2 0 -A u g 2 7 -A u g 0 3 -S e p 1 0 -S e p 25 20 15 10 5 0 -1 0 -1 5 -2 0 -2 5 3 0 -J u l 0 6 -A u g 1 3 -A u g 2 0 -A u g 2 7 -A u g 0 3 -S e p 1 0 -S e p In ta rg e t O u t o f ta rg e t Number of calls -5

C lo s e d In c id e n t s In f o rm a t io n
1 0 .0 % 8 .0 % 6 .0 % 4 .0 % 2 .0 % 0 .0 % -2 .0 % -4 .0 % -6 .0 % -8 .0 % -1 0 .0 % A c h ie ve m e n t (T a rg e t 9 0 % ) 9 9 .9 0 % 3 0 -J u l 9 9 .9 2 % 9 9 .9 4 % 9 9 .9 6 % 9 9 .9 8 % 1 0 0 .0 0 %

N e tw o rk S L A Av a ila b ilit y

0 6 -A u g

1 3 -A u g

2 0 -A u g

2 7 -A u g

0 3 -S e p

1 0 -S e p

C lo s e d

E xp e c te d L e ve l

N e tw o rk S L A c o n fo rm a n c e

S L A T a rg e t

LAN
N o . o f In c id e n t s lo g g e d a n d c lo s e d
12 10 8 6 4 2 0 3 0 -J u l 0 6 -A u g Logged 1 3 -A u g 2 0 -A u g 2 7 -A u g 0 3 -S e p 1 0 -S e p C lo s e d E xp e c te d L e ve l 20 15 10 5 0
Number of calls

C lo s e d In c id e n t s In f o rm a t io n
1 0 .0 % 8 .0 % 6 .0 % 4 .0 % 2 .0 % 0 .0 % -2 .0 % -4 .0 % -6 .0 % -8 .0 % -1 0 .0 % 3 0 -J u l 0 6 -A u g 1 3 -A u g 2 0 -A u g 2 7 -A u g 0 3 -S e p 1 0 -S e p In ta rg e t O u t o f ta rg e t A c h ie ve m e n t (T a rg e t 9 0 % )

N e t w o rk S L A Av a ila b ilit y
1 0 0 .0 0 %

9 9 .9 9 %

9 9 .9 8 %

-5

-1 0 -1 5 -2 0

9 9 .9 7 %

9 9 .9 6 % 3 0 -J u l 0 6 -A u g 1 3 -A u g 2 0 -A u g 2 7 -A u g 0 3 -S e p 1 0 -S e p N e tw o rk S L A c o n fo rm a n c e S L A T a rg e t

25
DMR Consulting

Implementation Considerations

Before Starting
The SLM starting point will vary by situation.
IT perception in the organization
Business contributor or cost center

Organizational culture Business drivers & pain points Maturity of supporting processes
Incident, problem, change, etc.

Mix of new vs. existing services Mix of internal vs. third-party capabilities
27
DMR Consulting

Bottom Line
Basically, SLM is about three things:
Setting objectives (that make sense to business) Measuring to make sure the objectives are attained Taking corrective action if needed

This means three main things:

Understanding the clients objective (SLR) Whether IT can deliver or not Measuring current IT service delivery (Service Catalog) Managing that gap (SLAs, OLAs, UCs)

28
DMR Consulting

Strategy Hints
Start with a smaller scope
For example: Critical services, Common corporate services, Focus on one client, etc.

Implement IT internal Service Objectives before formal SLAs or OLAs

Based on: Industry standards, Own internal standards, etc.

29
DMR Consulting

Wrap-up

FAQs
How many Service Catalogs per Company/Client?
There should be one Service Catalog for the IT department unless there is more than one service delivery organization.

How many SLAs per Client?

It is normal practice to have a single SLA for each client covering all of the business services selected by the client and the associated enabling services. It is also possible to have more than one SLA for a single client.

What should be in the Service Catalog?

All visible should be fully described in the Service Catalog as well as the interdependencies between services.

31
DMR Consulting

FAQs
What about non-standard services?
These should be requested using the Non-Standard Work Request process.

Who is the owner of the Service Catalog?

While both the business and the IT department are part of the project to prepare the Service Catalog, ownership of the Service Catalog remains with the IT department.

32
DMR Consulting

Do Not Forget
To make the distinction between visible services and non-visible services To use language the clients and customers understand To thoroughly prepare the awareness campaign in order to define the expectations correctly To ensure communication channels between IT and the business To ensure that measurements and metrics are agreed upon and can be implemented and used To ensure that SLAs are actually backed up by OLAs and UCs (where these are necessary).

33
DMR Consulting

Keep in Mind
A SLA, by itself, does not improve the services. A SLA is not just a collection of service level indicators. A SLA can harm more than it helps if not done properly! Just like in a marriage, the real work starts after the SLA is signed.

34
DMR Consulting

Questions

35
DMR Consulting

www.dmr.com