SLA, A Critical Tool to Support Highly Stressed Business Processes
itSMF Annual Conference
November 2003
Agenda
1 2 3 4 5
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Why SLAs? ITIL Introduction Service Level Management Implementation Considerations Wrap-up
Why SLAs?
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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? Where’s the connection?
Am I getting value for my money?
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Opposing Perspectives
Business View
Once IT projects end, it’s tough to see what drives IT costs. IT does not have a good handle on controlling its expense $. I’m unsure of how my IT demands create costs – it’s a mystery. I find it hard to get commitments on IT service levels. Why is this so difficult?
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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
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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
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Achieving the Goals
As always, this requires a combination of: • business alignment • people • process • technology • organization. Are there frameworks we can leverage?
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ITIL Introduction
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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
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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
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The ITIL Jigsaw
ITIL Service Level Management (SLM) is in here…
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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
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IT Infrastructure
IT Services
ITIL
Service Level Management
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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
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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
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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
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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.
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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
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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
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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
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*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
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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
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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
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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 %
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
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Implementation Considerations
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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
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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 client’s objective (SLR) Whether IT can deliver or not – Measuring current IT service delivery (Service Catalog) – Managing that gap (SLAs, OLAs, UCs)
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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.
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Wrap-up
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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.
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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.
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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).
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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.
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Questions
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