Tag Archives: process

AI, ITSM

Three AI truths with IT Service Management

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There’s no question that introducing AI capabilities can have a dramatic impact on IT Service Management (ITSM). Done well, AI adoption will free up ITSM professionals to do the work for which humans are uniquely qualified, like critical thinking, contextual understanding, and creative problem-solving. Furthermore, AI will enable organizations to realize many of the theoretical benefits of ITSM. For example, the use of AI and machine learning can leverage comprehensive in-depth data, not just a small recent sampling, for cause analysis, problem detection, and impact determination of problems. Another example is the use of AI can increase the data of the IT environment and automate the remediation of incidents.

But AI is not a “magic wand” for ITSM.

Before introducing AI capabilities into ITSM, organizations must first consider these three AI truths.

Truth #1 – AI needs good data

For the use of AI to be effective, it needs data. Lots of data. But, if that data is inaccurate, lacks integrity, or is not trustworthy, then the use of AI will only produce inaccurate or poor results.

Data quality is an issue that many organizations will have to tackle before realizing the complete benefits of introducing AI to their ITSM implementations. These means that organizations will have to step up their technology and data governance posture. According to this recent Privacera article, a fundamental principle of data governance is having a high-quality, trusted data source.  Having trusted data sources enables capabilities like ITSM to make accurate and reliable decisions regarding service management issues. But if the data sources used by ITSM tools contain data that is unregulated, the ability to automate responses is significantly hindered.

Truth #2 – AI doesn’t mean process design goes away

The need for effective ITSM processes and procedures doesn’t go away with AI adoption. Machine learning can be used to detect data patterns to understand what was done to resolve an issue. But what machine learning doesn’t do is determine if what is being done is the best approach. Machine learning doesn’t consider organizational goals and objectives with the adoption of ITSM. Machine learning cannot determine what processes are missing or need improvement to gain needed effectiveness and efficiency with ITSM.

Truth #3 – AI doesn’t replace knowledge

“Reducing cost”, often in the form of headcount reductions,  is frequently used as the justification for AI investment, as the use of AI will enable ITSM activities to be automated. And it’s true – many of the ITSM activities currently performed by humans can and should be replaced with AI-enabled capabilities, such as the automated fulfilment of service requests, automated response to incidents, and problem data analysis. But one of the hidden costs of using AI to justify headcount reductions is the form of knowledge loss – the knowledge inside people’s heads walks out the door when their positions are eliminated. And this is the knowledge that is critical for training the chatbots, developing the LLMs needed, and to the continual improvement of AI and ITSM.

While AI can provide the “how” for “what” needs to be done, it cannot answer the “why” it needs to be done.

Good Governance facilitates AI-enabled ITSM

Without governance,  AI can do some serious damage, not just with ITSM, but to the organization. As the role of IT organizations shifts from being data owners (often by default) to being data custodians, having well defined and enforced policies regarding data governance is critical. This means that the frequently found approach to governance consisting of an IT track and a corporate track is becoming untenable. As organizational processes and workflows become increasingly automated, enabled by AI capabilities, governance must become cross-functional[i] , with sales, marketing, HR, IT, and other organizational functions all involved. Organizations must consider and address data-related issues such as compliance with data privacy laws, ethical data use,  data security,  data management, and more.

An effective approach to governance enables organizations to define their digital strategy[ii] to maximize the business benefits of data assets and technology-focused initiatives. A digital strategy produces a blueprint for building the next version of the business, creating a bigger, broader picture of available options and down-line benefits.[iii] Creating a successful digital strategy requires an organization to carefully evaluate its systems and processes, including ITSM processes. And as ITSM processes are re-imagined for use across the enterprise in support of organizational value streams, effective governance becomes essential.

Getting ready for AI-enabled ITSM

What are some of the first steps organizations should take to get ready for AI-enabled ITSM?

  • Formalize continual improvement. One of the most important practices of an effective ITSM implementation is continual improvement. As organizations are continually evolving and changing, continual improvement ensures that ITSM practices evolve right alongside those business changes. And just like service management, AI adoption is not an “implement and forget”; in fact, AI will absolutely fail without formal continual improvement.
  • Answer the “why”. To say that there is so much hype around the use of AI within ITSM would be an understatement. Before jumping into AI, first develop and gain approval of the business case for using AI within ITSM. How will success be determined and measured? What opportunities for innovation will emerge by relieving people from performing those tedious and monotonous tasks associated with the current ITSM environment? What returns will the organization realize from the use of AI within ITSM? What new business or IT opportunities may be available because of the use of AI within ITSM? A good business case establishes good expectations for the organization regarding AI and ITSM.
  • Begin thinking about how AI can be leveraged by ITSM process designs. As discussed in this recent HBR.org article, AI will bring new capabilities to business (and ITSM) processes. With these new capabilities, organizations will need to rethink what tasks are needed, who will do those tasks, and the frequency that those tasks will be performed. The use of AI will enable organizations to rethink their ITSM processes from an end-to-end perspective, considering what tasks should be performed by people and what tasks should be performed by machines.

The concept of augmenting ITSM with AI is a “no-brainer”.  However, success with AI in an ITSM environment requires a lot of up-front thought, good process design, solid business justification, and considering these three AI truths.

[i] https://2021.ai/ai-governance-impact-on-business-functions

[ii] https://www.techtarget.com/searchcio/definition/digital-strategy

[iii] Ibid.

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ITSM

Don’t Go Chasing Electrons

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One of my biggest gripes about service management is that the work of service management has become synonymous with service management tools. This has really become an Achilles heel for service management. While service management tools are useful, they typically don’t take a value and outcome-based approach to identifying and defining services.

Because of this, many IT organizations have found themselves executing superficial service mapping initiatives that hardly get the complete job done. Rather than first critically think about services in terms of the value and business objectives that must be achieved with the use of technology, they buy and implement a service management tool. Then they use the tool to chase electrons across the network, map where those electrons went and what was found, and call it done.

Here’s why chasing electrons with a service management tool to define services can be the kiss of death to any real service management success.

What Service Management Tools Actually Do

I want to be clear that I am not “anti-tool”. Good service management tools are a vital and necessary component of any successful service management initiative. But those tools only address a part of service management challenges.

In its simplest form, using a service management tool to identify services is an exercise in chasing electrons. This approach focuses on the technology and seemingly puts order to that technology… so you can keep chasing more electrons.

But it’s this use of the tools that frequently causes the biggest problems with service management within organizations. Sure, this approach will find whatever is active on the network. It will group what it finds by application or system. But it also perpetuates the perception that service management is just about the tool… and not how good service management enables and supports the outcomes and value needed by a business from its investments in and use of technology.

Network maps don’t mean much if you can’t connect them to real business outcomes. Capturing what software is found on what hardware does not articulate the business value provided by that technology. An electronic discovery will never find the people, practices, or processes involved (and absolutely critical!) in delivering services within the organization.

What you’re left with is a reinforcement of a gap between IT and the business.

The Consequences of Relying on Tools to Define Services

Here’s what happens when you implement a service management tool without doing the prerequisite work:

  • IT spends a chunk of money on an expensive tool.
  • IT spends a large amount of time and money implementing that tool.
  • Because of the investments in both time and money, IT and the business as a whole feel they need to stick with their tool, no matter if it’s actually solving their problems.
  • When the initial tool implementation is done, IT and the business think that service management work is “done” as well.

Well, it’s not “done”. In fact, it becomes an ongoing issue. And the longer businesses ignore what should be service management, what should really be defined as services, the harder it becomes to fix it. As a result, IT will keep struggling with a reputation of being technology-oriented order takers. Yes, IT does more than configuring routers, writing code, and resetting passwords…but the tools don’t demonstrate that in business terms.

At some point after implementation, IT leaders have to ask themselves, “Have the accomplishments we’ve achieved with this tool helped us improve the value proposition of technology investments for my organization?”

How IT Can Stop Chasing Electrons

Defining services in terms of value and outcomes and implementing a service management approach that is actually about the business (not the technology) isn’t an out-of-the-box solution. But if you treat it like it is, you’re going to get stuck with definitions of services that don’t reflect the business needs of the organization and a burgeoning gap between the business and IT.

  1. IT needs to define services in terms of business value and outcomes

This is a point many would prefer to ignore, but it simply can’t be ignored. You can’t shortcut your way to defining IT services – and do it the right way. Tools will come into play at a later date and they will streamline the work, but they can’t do it without the right collaboration between IT and the organization.

Doing the work to articulate how your services enable or deliver business outcomes also positions IT to evolve as the business evolves. If we’ve learned anything over the last year, it’s that the way we do business can turn on a dime and IT has to be able to adapt to the ever-changing nature of how business does business. You can get ahead of the curve by having defined services in terms of business value and outcomes, then having ongoing conversations with your business colleagues about the value and outcomes needed from investments in technology, not just the technology.

2. IT needs to define the buying criteria for tools

You have to think about the long game with IT tool investments. It’s not easy to do, but it’s what builds the solid foundation of an IT organization that contributes to the bottom line.

IT has to define its tool-buying criteria based on business needs, not what the IT industry is seemingly telling them to buy. Every business is unique and solutions aren’t one-size-fits-all. Engaging key stakeholders to understand technology needs and business goals will help create buying criteria that will shortlist the tools into those that could actually work for you.

Additionally, establishing this buying criteria can help you improve your tool implementations. Often tool vendors or consultants will want you to implement a tool following some predefined technology playbook. But in reality, the best thing for your business is likely configuring the tool differently and in a way that best fits your business.

Before investing in a service management tool, ask yourself:

  • How does this investment answer the business value question?
  • Do we understand the types of outcomes that must result from this investment?
  • Why should our business want to invest in this?
  • Are we prepared to leverage the functionality of the tool?

Don’t Short Cut It

Tools are often marketed as an easy shortcut for your service management issues. But you have to think of investments in service management tools like running a marathon. A service management tool is like having a really good pair of running shoes. It can enable you to succeed. But if you haven’t done a pre-marathon training program, having good running shoes will only get you a few miles into the race – and then you will find yourself struggling. Good shoes alone will not help you complete the marathon.

Just like in running a marathon, you have to do the necessary work ahead of time to prepare yourself to win. You have to do the work to define your services in business terms, ensure you understand and can deliver the needed business outcomes, and that the work your team is doing is aligned with the business. Then, implement your tool and it will work better in the long run!

Good service management is not just about opening a ticket. It’s not just about resolving an issue or implementing a change. It is about how people, processes, and technology work together in a repeatable, measurable, and holistic way to consistently enable business outcomes and value realization by the entire organization. If service management isn’t doing this for your organization, I can help. Contact Tedder Consulting today.

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Leadership

A New CIO’s Guide to Mapping Experiences

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Delivering and enabling business value is a large part of IT’s job.  As such, the CIO must track how value flows, not only within IT, but across the organization. 

It may sound easier than it actually is. Because value is tricky. For one thing, it’s not always well-defined. And it often gets lost in day-to-day operations as the business evolves.  This often leaves end users wondering what happened to the value that they were expecting. 

One of the first tasks of new CIOs is to determine what’s driving value, what’s not, and how improved value can be delivered to all stakeholders. But how can you do that? Where do you start? 

In order to answer that question, we need to stop talking only about value. Instead, we need to include talking about the experiences of the customer, the user, and the employee. 

Customer experience

As defined by Hubspot, customer experience is “the impression your customers have of your brand as a whole throughout all aspects of the buyer’s journey.” The customer experience factors into a customer’s view of your brand and it can impact the bottom line. A strong customer experience can increase customer retention, which will reduce marketing and advertising costs. And loyal customers often spend more than new ones as one study found that if a business increases customer retention by 5%, profits can increase by up to 95%. Additionally, according to a survey by Info Quest CRM, a totally satisfied customer contributes 2.6 times more revenue than a somewhat satisfied customer.

User experience

The user experience is very similar to customer experience but it is directly related to the product, application or service. User experience refers to the journey a user takes when they interface with a system whether that is an application, a digital service, a website or a product. In today’s digital world, user experience matters. 88% of consumers are unlikely to return to a site after a bad experience and a recent study found that a well-designed user interface could increase conversion rates by 200%. 

 Employee experience

According to Gallup, the employee experience is the journey an employee takes with your organization and is made up of all the interactions that employees have during their tenure at the organization. The employee experience matters because research shows that companies with actively engaged employees outperform competitors by 147% in earnings per share and happy employees are up to 20% more productive at work. Improving the employee experience can earn your company money. 

The experience matters

Each of these experiences contributes to the overall value that stakeholders derive from an organization and all of these experiences directly impact the bottom line. If an experience is bad, there is no realized value from that experience. Therefore each of these experiences is very important to CIOs because better experiences means better value. 

Luckily, there is a tried and true approach for enabling more value through creating better experiences.  It starts with mapping the current experiences.

Whether you are mapping customer journeys or employee journeys, every mapping exercise will include the same steps. My recommendation is to choose one experience to map and improve before addressing the others. You’ll be able to use the lessons learned from mapping that one experience as guidance when mapping each of the other two.  Also, you can iterate faster when only focused on one experience at a time.

1. Include all stakeholders

This is the first and most important step you can take when mapping experiences — get all stakeholders involved. These stakeholders will want to work with you if they understand how improving experiences will benefit them, so communicate those potential wins. For example, if you chose to map the employee experience, you can explain to HR that mapping and improving this experience can improve the onboarding experience, decrease employee turnover, and increase employee engagement — thus helping HR to hit their departmental objectives.

2. Map the value streams

How is value flowing through these experiences? For example, how does a user realize value from first touch with your website through purchase? What are the steps and who is responsible for each? Mapping the value streams that enable experiences will identify where responsibilities lie, what parts of the organization are involved,  and where there may be gaps or bottlenecks.  

3. Audit workflows 

Once you have the team on the same page, review and audit the processes that underpin the value streams that underpin an experience. What’s going on under the hood of that experience? Approach these audits with an open minded curiosity, and don’t be afraid to ask why a workflow is designed the way it is.  Let your team know that this is a discovery and learning exercise, not a blame exercise, and that you are simply building a clear picture of how work is being completed. Workflows, no matter how well they were designed, have a tendency to ‘drift’ over time. 

4. Embed continual improvement  

Where is the experience falling short or encountering friction?  

This is the most critical question a CIO must be able to answer when it comes to experience.  And it’s a question that the answer is continually changing, due to continual changes in marketplaces, stakeholders, technology, and more. This is why embedding continual improvement within the experience is so important. 

New CIOs have a big opportunity to establish a mindset of continual improvement right from the start. Regularly survey end-users regarding improvement suggestions and feedback.  Develop and maintain a continual improvement log for capturing, prioritizing, and publicizing improvement suggestions. Establish a regular cadence for designing and implementing improvements. Market the successes and lessons learned from continual improvement. Why?  Because continually improving the experience continually improves value realization.

Applying the above four steps will provide great insight into each of the three experiences that are driving value within your organization. Even though the focus of each experience is different, the process of mapping these experiences is the same because they all revolve around people, processes, and technology, and how well each of these factors are working with the others. 

What has been your experience with mapping experiences?  I’d enjoy hearing about your discoveries and successes with experience mapping. 

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Leadership

CEOs, are you making your CIO sick?

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Here’s a scenario that might sound familiar:

The CEO of a mid-sized organization calls in the CIO because times are desperate. The company needs to deploy new technology to increase revenue — quickly. The organization has already invested in a variety of tools and technology… but it’s not getting the job done. Now the CEO wants the CIO to find the right tool, the one that will help the organization, and it needs to be cheap and it needs to show results quickly. The CIO — who up until this point, has had little opportunity, much less been invited, to interact with other departments to identify needs and pain points with the current toolset. In fact, beyond any initial training and implementation of the current tools, the CIO has been relegated to sitting on the sidelines. But the CEO is convinced that new technology is the answer, and expects the CIO to get it done to get the organization back into the black … and the clock is ticking.

Scenarios similar to this one happen all the time in organizations. The pressure is constantly on the CIO, but she is often not enabled to be proactive or even part of the larger conversations with the business.

For CIOs, it often feels like they’re being given a teaspoon of gas and asked to get the company through the end of the cross-country road trip. They’re being asked enormous tasks with little budget or agency over previous decisions. They’re damned if they do — and damned if they don’t.

And this happens over and over! The CIO constantly jumps through hoops… only to land and then have to run back around to jump through it all over again. It’s no wonder that CIO position has one of the highest turnover rates among the C-suite, with an average tenure of just 4 years, according to TechTarget.

The relationship between the CIO and CEO has been fraught in the past and unfortunately in some organizations, that hasn’t improved. Even as the CIO becomes more influential and valued within the organization, many CEOs are still stressing out their CIOs!

For many organizations, there’s a gap in what the CEO expects and what the CIOs need to be able to deliver on those expectations. The CEO is the one with the power to bridge the gap. Let’s address those CEO expectations and how CEOs can give CIOs what they need to meet them.

CEO Expectations and CIO Needs

CEO Expectation: Business perspective.
The CEO expects the CIO to be the bridge between technology and the rest of the company. The CIO needs to look ahead and align technical benefit with the initiatives of the company and tailoring systems to meet business needs. This is absolutely critical for success in any business. Every business needs to use technology to its fullest potential and the CIO is the only person who can ensure that is happening. If the CIO and CEO are unable to fully enable the organization with technology, the organization is at risk of losing business to the competition.

CIO Need: Business enablement
In order for the CIO to have a business perspective, the CEO needs to recognize the role the CIO and IT play in business enablement. The CEO must ensure that their CIO is part of developing business strategies and plans. The CIO’s voice in business matters should be just as important as the voices of other leadership roles. That means the CIO has to be involved from the beginning of strategy conversations, instead of at the end of them.

CEO Expectation: Leadership
CEOs expect CIOs to be self-starters. The CIO needs to be able to motivate their teams and get buy-in from the rest of the organization. Because they often work closely with other members of the organization, the CIO needs to be viewed as an influential member of the organization who can lead the way.

CIO Need: Sponsorship
The CEO can strengthen the CIO’s credibility with peers by providing strategic support. Whether it’s inviting CIOs to strategic meetings or voicing their support of a CIO’s decision, the CEO can help the CIO attain the needed credibility to influence the organization. The CEO can also help the CIO form partnerships with external partners by starting introductions or including the CIO in communications.

CEO Expectation: Vision
The CIOs need to see the big picture of the business. CEOs want CIOs to be visionaries who are constantly moving toward the future vision of the business. The CIO has to buy-in to the CEOs vision and help the CEO turn the vision into a reality.

CIO Need: Vision and Strategic Consistency
However, for the CIO to become this visionary, the CEO needs to formally articulate the vision and mission for the company. The CIO will need to interpret how that vision fits into technology strategy, but that vision has to start from the top. Additionally, the CIO needs consistency and clarity in that vision. If the vision or strategy is constantly changing, the CIO won’t be able to create systems or initiatives to sustain it.

CEO Expectation: Innovation
Turning any vision into reality needs an innovative leader. The CIO should be on the cutting edge of all the trends and continually looking for new and better ways to leverage technology to propel the business. But the CIO also needs to be able to balance innovation and risk. She has to be able to explain the cost trade-offs with every innovative initiative.

CIO Need: Challenge
If the CEO wants an innovative CIO, they need to give the CIO those opportunities to be innovative. Challenge the CIO to use her talents on things that matter to the bottom line of the business. Don’t use her as a task rabbit who can simply pull the business over the finish line. Incorporate their expertise at the start of business challenges.

CEO Expectation: ROI
Finally, the CEO expects — and needs — the CIO to enhance ROI margins and profits. The CIO must contribute to the bottom line these days. Technology is inextricably linked to the success of any business today, so the CIO has to think in terms of ROI.

CIO Needs: Flexibility
The CIO can contribute to ROI, but she needs the CEO to understand the challenges of deploying and managing technology – at least at a high level. The CEO needs to give the CIO the chance to explain the complexities and challenges they face and demystify the technology. Then they need to allow them the flexibility to develop different approaches to solving problems. The CEO needs to understand that some IT investments take time to deliver their full potential value and allow the CIO that space to ensure that value is delivered.

In Conclusion

Now, I don’t think CEOs should give CIOs any kind of “favored status” or special accommodations within the C-suite. The CIO doesn’t need to have her hand held, but CEOs do need to consider the impact of their own actions when they review how the CIO is operating. If there is high turnover in the CIO role, perhaps the first place to look is to determine if there are gaps between the CEO expectations and the CIO needs.

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Digital Transformation

IT Reset: How to Re-Prioritize IT Initiatives During COVID-19

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CIOs have had their work cut out for them over the last few months. The sudden shift to remote work has put pressure on IT to create solutions for remote workers using technology that perhaps was older or less capable, support overworked and stressed out IT technicians, and, in general, keep the business moving through the use of technology.

The priority at this time must be ensuring that technology supports essential business processes. But that doesn’t mean IT leaders should freeze any other initiatives until after COVID-19 has passed.

In fact, the worst thing any leader can do right now is “freeze” and wait until life “returns to normal.” There will be no return to the normal as businesses knew it before the pandemic. Even after the immediate threat has passed and businesses can resume working in offices, the way we work will be forever changed because of this situation.

There will be an expectation for the business to provide flexible work environments, more self-service options, tighter security, and better contingency plans for addressing future disruptions like this one.

All of these shifts provide IT with a rare opportunity to hit pause, take a step back, and reassess priorities. Adobe’s CIO Cynthia Stoddard advises, “CIOs now have to rethink priorities, or at least reorder them, and we must reinvent ourselves now as virtual leaders.”

Here are a few ways you can reset your priorities and identify what initiatives you should take on right now.

Cybersecurity

One of the first priorities should be your level of protection against cyber threats. Security is imperative for continuing essential business operations but this unique situation has increased the risk of cyber threats. “Zoom bombing” became a trend over the last few weeks as uninvited guests crashed virtual meetings and get-togethers, often disrupting the session with violent rhetoric. While Zoom quickly adapted to protect its users, this may be just the beginning of more frequent cyber-attacks and threats. As more of the world moves online, hackers will most likely increase the intensity and sophistication of their attacks. CIOs should review their cybersecurity protocols and ensure the proper procedures are being followed.

Productive Remote Work Environments

In addition to cybersecurity, CIOs need to make sure that every person in the organization is equipped to do their job remotely. This might mean you need to more heavily invest or leverage self-service technology or AI. Large investments or initiatives around new technology may have been on the back burner but now is an ideal time to reassess whether you need to make those investments now.

It’s also not just about providing technology. You may need to equip your team to handle and manage it. Are your knowledge bases relevant and up to date? Knowledge bases may not be seen as high priority, but techs will no longer be able to just walk down to an office to troubleshoot a problem. More of the organization could be turning to knowledge bases to navigate technology while they work from home.

Service Delivery

Another area to review is your service delivery processes. There are many facets of connectivity that are out of your team’s hands right now, including different hardware and software being used by team members with different levels of connectivity. Like I mentioned earlier, a service technician can’t simply walk down to an office to troubleshoot an issue. If there were any gaps in your service delivery processes before COVID-19, they are likely more apparent and problematic now. Take this time now to address those important issues.

Refocusing priorities will allow you to emerge from this situation more efficient and capable than you were. This will enable you to refocus on those more urgent tasks.

I mentioned in a previous blog post that CIOs and IT leaders need to focus on enabling outcomes instead of simply delivering outputs. Even though the way we work is rapidly shifting, this is a perfect time to reassess how IT can drive outcomes. We’ll never go back to work as before. So, instead of looking at this situation as a blow to current initiatives, look at it as the perfect time to re-prioritize and prepare for the new future.

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