As organizations continue to work through a pandemic, adapt to an ever-increasing digital world, and adjust to new customer and employee expectations, CIOs must continue to step up to the plate to help navigate these changes from a business perspective.
Perhaps with some organizations, CIOs have not been part of business decisions in the past. The pandemic has shown that organizations can have success when working with IT as a business partner. The reliance on technology and new remote work expectations have paved the path for CIOs into the role of business success partner. Smart CIOs are taking advantage of the opportunity by presenting a strategy that can help the business holistically — not just the technology aspects within the business.
And that strategy is Enterprise Service Management.
What is Enterprise Service Management?
Enterprise service management, also known as ESM, is an organizational capability for holistically delivering business value and outcomes-based upon shared processes, appropriate technology, increased collaboration, and better communication across the organization, not just within IT. ESM, done well, provides a strong foundation for a positive customer experience, positive employee experience, and digital transformation.
Before we dig further into what ESM is, let’s talk about what it is not. ESM is not just about extending ITSM into enterprise. This is not about IT barging in and forcing its workflows on the rest of the organization. It’s not just deploying instances of IT’s service desk tool across the organization. ESM is focused on leveraging the best practices of service management across the organization holistically to co-create business value for the enterprise.
What effective Enterprise Service Management does is get the entire organization on the same page. ESM processes reflect and support the entirety of value streams, not just the IT portions. This enables teams to have clarity around how work and value flows through the organization, and how technology underpins workflow and value. And in the digital age, knowing how work and value flows through an organization provides the ability to quickly shift and react to changes in market spaces and is critical for business success.
Why is ESM a business strategy?
The biggest misconception about service management is that it’s just something that is done only in IT. Service management has always been about delivering real business value and measurable outcomes for organizations. While service management is often associated with IT, many are often surprised to realize that service management is also being practiced in other parts of the organization, such as HR, customer service, and facilities. What effective ESM does is help organizations connect these often-disjointed pockets of service management together, creating a better working environment and improved results. That is especially important in our current world.
The way we do business now has drastically changed. Remote work has become more of the norm. We may have thought 2020 was the year of remote work but actually, it’s just the beginning. The percentage of workers permanently working from home is expected to double in 2021. Many organizations are creating hybrid models for working, allowing for both work from home and remote work opportunities. Forbes reports that by 2025, an estimated 70% of the workforce will be working remotely at least 5 days a month.
This divide in working conditions and how work is being completed will impact the efficiency of the enterprise. There are plenty of benefits to operating with remote and hybrid models, but enterprises also have a higher risk of creating silos. This isn’t a technology issue, it’s a business issue – and it’s one that ESM can solve.
When enterprises commit to and implement ESM, the result is enhanced visibility regarding how value flows through the organization. This makes it easier to identify problem areas, simplify workflows, and clarify expectations and roles. Over the long term, this will increase efficiency across the organization, which means decreased costs and possibly increased revenue.
As we said earlier ESM is not just extending ITSM across the enterprise. This should not be seen as a hostile takeover by IT. The goal is to leverage IT’s service management expertise to improve overall performance across the organization. In order for that to happen, the CIO and IT have to lead the way in establishing ESM as a must-have strategy in the organization.
ESM does incorporate principles of good ITSM, and the CIO and IT should know the best practices and mistakes to avoid when implementing service management. This is an opportunity for IT to demonstrate leadership based on their past experiences working with ITSM. By showing the rest of the organization real-world examples of how service management has improved collaboration and made work more effective and efficient in IT, IT can make the case for how ESM can improve the enterprise’s workflows as well.
The CIO and IT can make their case even stronger because IT are one of the few departments that interacts with every other department every day. IT understands the workflows of other departments because it helped design and implement solutions that support those workflows. Using this knowledge, the CIO can present use cases for ESM using actual workflows and initiatives from across the organization as examples.
The trick here is to understand the overall business goals and how the goals of the individual departments contribute to those overall goals. This especially applies to the CIO. If a CIO can demonstrate how ESM helps link departmental goals to enterprise goals, and makes it easier to accomplish both goals, they can convince other organizational leaders to rally around the idea of ESM.
How to Start Implementing ESM
ESM implementation is the opportunity for CIOs to exhibit their business savvy while delivering a solution that helps the organization work in a more holistic fashion. But there will be those who resist ESM and will need to be convinced. You need three things for a compelling argument.
Make sure the IT house is in order
If IT is not running efficiently or doesn’t have its service management house in order, no one will be convinced that ESM is the right move. Before taking service management out into the enterprise, make sure that IT’s workflows are running like a well-oiled machine and that there are no gaps in services, support, delivery, or communication. The successful use of service management within IT makes for a stronger use case for adopting ESM across the enterprise.
Collaborate with Other Leaders
As we discussed earlier, you have to rally the troops around ESM before it can be properly implemented within your organization. Start by having conversations with other organizational leaders about their 2021 goals, their challenges, and their needs. That’s the best place to start the conversation, because you need other leaders to see the “what’s in it for them”. If you can illustrate how ESM not only helps individual departments meet goals, but also link those achievements to organizational goals, they’ll be more likely to support your case for ESM.
Develop the Business Case
Finally, after you’ve ensured that IT service management practices are in order, and gained support from other department leaders, you’re ready to develop the business case for ESM.
When developing the ESM business case, focus on the five factors of value — improved productivity, competitive differentiation, improved customer satisfaction, decreased cost, and increased revenue. Link the anticipated outcomes from ESM to one or more of these factors, and you increase the chance that you’ll receive full support and funding for ESM.
Looking for more support on implementing ESM initiatives in your enterprise? Book a free consultation! I can help you develop a plan for bringing ESM to your organization.
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