There are many potential culprits for why IT organizations struggle to make substantive progress in evolving their ITSM/BSM effectiveness. A customer research project we did a few years ago offered an interesting insight into one particular issue that I rarely see the industry address. The research showed that most CIO’s simply had a different perception – when compared to their IT operations managers- of their IT organization’s fundamental service delivery maturity and capability. This seemingly benign situation often proved to be a powerful success inhibitor.

The Gap:

A substantial sample size of international, Global 2000 enterprise IT executives participated in the study. When asked to prioritize investment priorities on a broad range of IT capabilities, we saw a definite gap. IT Operations managers consistently ranked, “Investing to improve general IT service support and production IT operations” in their top 1 or 2 priorities, where CIO’s ranked this same capability much lower as a priority 6 or 7.

The Perception:

When pressed further, CIO’s believed that the IT service management basics of process and technology were already successfully completed, and the CIO’s had mentally moved on to other priorities such as rolling out new applications, IT financial management, or project and portfolio management.

Most of the CIO’s in the study could clearly recall spending thousands of dollars sending IT personnel to ITIL education, and thousands more purchasing helpdesk, network, and system management software. Apparently, these CIO’s thought of their investment in service operations as a onetime project, rather than an ongoing journey that requires multiple years of investment, evolution, reevaluation, and continuous improvement.

IT operations managers –on the other hand- clearly had a different view of the world. They were generally pleased with the initial progress from the service operations investments, but realized they were far from the desired end state. The Ops managers could plainly see the need to get proactive, to execute advanced IT processes and more sophisticated management tools, but could not drain the proverbial swamp while fighting off the alligators.

The Trap:

We probed deeper in the research, diligently questioning the IT operations managers on why they didn’t dispel the CIO’s inaccurate perception. In order to secure the substantial budget, these Ops managers had fallen into the trap of over-promising the initial service management project’s end-state, ROI and time to value. (I wouldn’t be surprised if they had been helped along by the process consultants and software management vendors!)

These Ops managers saw it as “a personal failure” to re-approach the CIO and ask for additional budget to continue improving the IT fundamentals. Worse yet, they had to continually reinforce the benefits from the original investment so the CIO didn’t think they had wasted the money. So, the IT operations staff enjoyed the result of reactively working nights and weekends to meet business’ expectations, and make sure everyone kept their jobs. Meanwhile, the CIO’s slept well at night thinking, “Hey, we are doing a pretty darn good job”, but faced the next day asking, “Why are my people burnt out?” A vicious cycle.

Recommendation through Observation:

I’m not wild about making recommendations since I merely research this stuff… not actually perform hands-on implementation. Instead, I will offer some observations of best practices from companies who appear to be breaking through on BSM, lowering costs, raising efficiency and improving IT quality of service.

1. Focus on Fundamentals: It is boring and basic, but absolutely critical to continually look for ways to improve the foundational service management elements of event, incident, problem, change, and configuration management. Successful IT organizations naturally assume that if they implemented these core processes more than 3 years ago, they likely need to update both technology and process. If FIFA World Cup Football clubs and Major League Baseball teams revisit their fundamental skills each and every year, why wouldn’t IT?

1. Assume a Journey: IT leaders who develop a step-wise, modular path of realistic projects that deliver a defined ROI at each step have the best track record of securing ongoing funding from the business. The danger here is defining modular steps that are so disconnected and silo’d, that IT never progresses toward an integrated BSM/ITSM process and technology architecture. This balance continues to be one of the most difficult to manage.

1. Empowered VP of IT Operations: The advantages of a CIO empowering a VP of IT operations and holding them accountable for end-to-end business service has been discussed in previous posts. The practice of having a strong VP of operations who has executive focus on service operations and continual service improvement, while having end-to-end service performance responsibility does appear to be a growing trend and success factor.

1. Focus on the Applications: In the same research study that showed the perception gap on, “Investing to improve general IT service support and production IT operations”, there was consistent agreement on, “Investing to improve business critical application performance and availability”. The CIO’s, Ops Managers and Business Relationship managers all ranked this capability as a top 1 or 2 priority.

Successful BSM implementations focus on the fundamentals of process and infrastructure management, but do so from a business service, or an application perspective. This approach not only enables an advantageous budget discussion with the business, but it also hones the scope and execution of projects.

It is difficult to assess the relative impact of this CIO/IT Ops perception gap, considering the wide variety of challenges that IT faces. But hopefully, this post gives you something to consider when assessing your own IT organization’s situation and evolution.

Let us know where your organization fits – please take our two question survey (two demographics questions also). We’ll publish the results on the blog.

• Describe the perception of your IT's fundamental service delivery process
• How often does your IT organization significantly evaluate and invest to update your fundamental IT process

Click Here to take survey

Bryan Dean – BSM Research