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IBM Global Services

2005 IBM Corporation

ITIL is a Registered Trade Mark, and a Registered

Community Trade Mark of the office of Government

Commerce, and is Registered in the U.S. Patent and

Trademark Office

ITIL Service Manager

Service Delivery

Service Level Management

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Service Delivery Service Level Management

2 2005 IBM CorporationITIL Service Manager Course | v1.0

Content

1. Goals, Scope and Definitions

2. Process

3. Controls

4. Implementation Considerations

5. Summary and Exercise

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Content


2. Process

3. Controls



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Source: IPW Model is a trade mark of Quint Wellington and KPN Telecoms

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Goals

The goal of Service Level Management is to maintain and improve IT

service quality, through a constant cycle of agreeing, monitoring andreporting upon IT service achievements and instigation of actions to

eliminate poor service, in line with business or cost justification. Through

these methods, a better relationship between IT Services and its

customers can be developed.

Goals of Service Level Management:

Balance of customer requirements and IT organization capabilities

Measurable service standards Better Business relationship between customer and supplier

Accurate specification of required IT services

Reduction of unexpected workload

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Scope (1/2)

Scope and Contribution of the Service Level Management Process:

Scope of Service Level Management (SLM):

SLM determines, monitors and adjusts the level of IT service, which is needed to

support the business.

Service relationship customer supplier interface

Balanced relation between customer demands and service costs

Definition, monitoring and reporting of service levels Objective conflict solution

Quality improvement (continuous review)

Importance of Service Level Management:

The key interface of the IT organization to the customer

One of the most powerful processes, because its results have

consequences in almost every ITIL process

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Scope (2/2)

Service Level Management as link between customer and IT service provider


Packaging of complex IT products into easy

understandable IT services

Integration of the variouscomponents of an IT service

Creation of transparent IT services for

the customer with help of ratios

Service Level Agreements (SLAs)

Customer

IT service

provider

Alignment to the business targets and

concentration on the customers requirements

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Definition Service, SLA, OLA, UC (1/2)

A service is the packaging of products suited to the customer, shown by processes in

an organization and supported by an infrastructure, that can be provided.

Service

The Service Level Agreement (SLA) is the formal documentation of an agreed service

level between IT service provider and IT customer(s) and describes key service targets

and responsibilities of both parties.

Service Level Agreement (SLA)

The Operations Level Agreement (OLA) is the (formal) documentation of an agreed

operation level between IT service provider and other internal service providers on

which the service depends.

Operational Level Agreement (OLA)

The Underpinning Contract (UC) is a contract with external IT service providers (for

hardware, software or services).

Underpinning Contract (UC)

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Definition Service catalogue, SLR, SIP, element chain (2/2)

A service catalogue is a list of all defined services, that have to be provided including

the available service levels.

Service catalogue

The Service Level Requirement (SLR) list all customer requirements for the service.

Service Level Requirement (SLR)

Management can instigate a Service Improvement Program (SIP) to identify and

implement whatever actions are necessary to overcome any difficulties and restore

service quality.

Service Improvement Program (SIP)

An element chain is the totality of all elements (e.g. systems, applications, network) in

relationship that produce the service for the customers.

Element chain

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Content


2. Process

Process activities

Roles & Responsibilities

Interfaces Essentials

3. Controls



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Process Activities

Process Activities Service Level Management:

Planning activities:

Establish Service Level Management fundament

Implementation activities:

Plan service catalogue and SLA structure

Identify Service Level Requirements and Manage Expectations Verification feasibility

Negotiate SLAs

Define reporting and review procedures

SLA publication

Ongoing activities:

Monitor and Report Service Levels

Conduct service review meetings

Manage Service Improvement program

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Implement

activities

Process Activities in a flow chart

Ongoing

activities

Service

Level

Management

Establish

SLM

Fundament

Monitoring

& Reporting

Service Review

Meetings

SIPIdentify SLR

& Expectations

Verification

feasibility

Plan catalogue

& SLA structure

Negotiate

SLA

Define review

procedures

SLA

publication

S i D li S i L l M t

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Roles & Responsibilities

Driving the efficiency andeffectiveness of the Service LevelManagement process

Producing customer & management

information

The key interface between customerand IT organization

Responsible and accountable forservice quality

Monitoring the effectiveness ofService Level Management andmaking recommendations forimprovement

Identify report requirements

Controlling of monitoring activitiesrelated to Service Levels

Identify Service Level failures Analysis of monitoring activities and

development of detailed trend-/failurereports for customer and ITmanagement

Identify improvements in the reportingarea

Service Level Manager Service Level Support Staff

S i D li S i L l M t

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Interfaces Inputs

Process Trigger: New requirements

New customer requirements (Customer)

New IT Management requirements (ITManagement)

Service Desk information about complaints

(Service Desk)

Inputs using for process activities:

Monitoring data/reports (Capacity Mgmt.)

Monitoring data/reports (Availability Mgmt.)

Incident reports (Incident Mgmt.) Problem reports (Problem Mgmt.)

Financial data about services (Financial Mgmt.)

CI details (Configuration Mgmt.)

Process Trigger: New requirements

New customer requirements (Customer)

New IT Management requirements (ITManagement)

Service Desk information about complaints

(Service Desk)

Inputs using for process activities:

Monitoring data/reports (Capacity Mgmt.)

Monitoring data/reports (Availability Mgmt.)

Incident reports (Incident Mgmt.) Problem reports (Problem Mgmt.)

Financial data about services (Financial Mgmt.)

CI details (Configuration Mgmt.)

Service

Level

Management


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Interfaces Outputs

Process Outcome: Agreed SLAs and Services Defined service catalogue (all ITIL processes)

Defined SLAs (all ITIL processes)

Regular reports (all ITIL processes)

Output Information used by other processes:

SLM problem information (Problem Mgmt.)

Required changes request (Change Mgmt.)

Achievement SLA rate (Financial Mgmt.)

Process Outcome: Agreed SLAs and Services

Defined service catalogue (all ITIL processes)

Defined SLAs (all ITIL processes)

Regular reports (all ITIL processes)

Output Information used by other processes:

SLM problem information (Problem Mgmt.)

Required changes request (Change Mgmt.)

Achievement SLA rate (Financial Mgmt.)

Service

Level

Management

Service Delivery Service Level Management Additional Information

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Essentials Manage expectations with the model of Zeithaml

Customer view

Service provider view

Service architecture

Service provision

Moment

of truth

Service concept

4

5

1

3

4

The following weaknesses can

lead to dissatisfaction of the customer

expectations by the provided service (5)

1: The customers desires are not

really understood or considered.

2: The existing technical service

architecture is not correct and/or

specified incompletely.

3: The delivery processes do not

produce the specified service quality. 4: The promised and provided

services are not the same.

Source: Zeithaml

Communication

Service expectations

Service targets 2

Service Delivery Service Level Management Additional Information

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Service

Level

Management

Servicecatalogue

Essentials Manage relationships with customers and suppliers

(internal and external)

ElementA

ElementB

ElementC

ElementD

ElementE

Ext.SupplierA

Ext.SupplierB

Customer

Service A

Service B

Service C

Element chain OLAs

SLAs

UCs

SLA reports

ReviewMeetings

SLA monitoring

Service Level Agreement-SLAA written agreement between IT

Service Provider and IT customer(s).

An SLA should have a commercialand a legal part.

Operational Level Agreement-

OLAA contract or agreement with an

internal supplier covering delivery ofservices.

An OLA has no legal part.

Underpinning Contract-UCA contract with an external supplier

covering delivery of services with

commercial and legal parts.A UC is a SLA with the external

supplier or providers point of view


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User support

Management of all requests of the end user from the

registration of the request up to the entire solution

IT-Enablement

Entry for all service requests according to HW/SW validation

and IMAC services

User training

Provision of all necessary training for end users

as well as IT staff

Essentials Example of a service catalogue

Application consultancy

The application consultancy gives advice and suggestions

according to the implementation of customer requirements in

the IT

Application development

The actual implementation of the customer requirement intoimplementable IT solutions

Application maintenance

All activities for the improvement of existing solutions

Program management The management of packaged technological initiatives

Operation

All activities that are necessary

Asset Management

Management and control of all assets

Support Services Development services

Management Services

Operation servicesStrategy planning

Development of the IT strategy including organization wide IT

architecture

Customer management

Is the connection between customer and IT responsible of

the customer relationship as well as the service management


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Essentials Example of a service description

Name Name of all customer Name and department

Definition and scope

Clear classification of the service contents

Service elements

List of all necessary service elements for the provisioning

of services

Client advantages (value proposition)

Description of the advantages for the customer including

explanation

Measure criteria and targets

Overview of the quality criteria's for the services and

related measurements procedures and responsibilities

Additional comments

Space for further comments

Service results

List of the results of the service

(tangible and intangible)

Price structure

Price illustration

Service Name Service customer Service Owner


Additional Information

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y g


Essentials End-to-end element chains

Connection

element

End-to-end methodology

Application

B

Application

B

End tool:

Access to A, B

IT elements1

Organizational unit that manages the element

(problem free procedure guaranteed)

PC-Server

Printer

AB

B X

1 IT-Element: Independent technical component or independent part of the net with clear defined tasks

IP

IP

Connection

elementRouter Router Router

Telecom

Mainframe

AC

Workstation

system

Periphery

End user

ApplicationC


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y g


Essentials Service Level Monitoring and Reporting

To have a indication of the reachable

service levels and to communicate the

compliance, a corresponding infrastructure

is necessary for the control of theelements.

Services / Managed Elements

Element 1 Element 2 Element 3

OLA OLA OLA

HW-/SW-

Component

Monitor

Reporting

& Prognosis

Element

chain

Data

aggregation

Data

collectionHW-/SW-

Component

Monitor

HW-/SW-

Component

Monitor

HW-/SW-

Component

Monitor

HW-/SW-

Component

Monitor

HW-/SW-

Component

Monitor

SLA reports

(actual state & trends)

Service level agreement (SLA)


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Essentials Service Level Agreement (SLA): General SLA Structure

A modular creation of the frame contact and SLAs/OLAs assure the efficient

reuse. Customer-based, service-based and multi-layer based SLA-structures

are possible.

Example: Service-based SLA structure

Service A

Service B

Service

Description

Service Level A1

Service Level A2

Service Level A3

Service Level B1

Service level

agreements

Operations level

agreements

Element X

Element Y

Element Z

Operations Level X1

Operations Level X2

Operations Level X3

Operations Level Y1

Operations Level Z1

Operations Level Z2

Elements


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Essentials Service Level Agreement (SLA): Basic framework

Costs accounting and charging Bonus/Malus Regulation

Validity

Name of the client or customer

Business field, products

Type of service or product Definition and scope of business

Customer requirements

Process steps description for the product handling

Agreed quality standards

Availability

Deadlines for same-day handling

Quality degrees

Emergency regulation (reference to emergency concepts)

Incidents

Claims and escalation procedures

Action plans

Reports

Periodic checks

Q circle

Prerequisites that have to be fulfilled by the customer or client

... + signatures of the

contract partners

Recourse claims for

non-compliance of SLAs-> liability regulation


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Essentials Service Level Agreement (SLA): Legal Contents

Preamble Costs and performance clearing

Change Management Performance control, measuring method

Scope Reporting

General conditions Failure of provision

Cooperation duties of the customer Penalties

Consulting Warranty, liability, damages

Education Duration of contract

Performance description Extraordinary termination

Backup and data protection Conversion

Limitations, restrictions, exclusions Claim to working results

Priorities Venue

Escalations Writing

Other obligations Final provision

Secrecy


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Essentials Service Level Agreement (SLA): Sample


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Technical:

Tools, methods,

metrics collection

procedures

Staff point of view:

Operationalspecification,

education, administration

Customers point of view:

Reaction time,

service time, etc.

Commercial:Accounting,

charging

Negotiation of

ServiceLevelAgreements

(SLA)

Negotiation of

ServiceLevelAgreements

(SLA)

Legal:

Contract law, handling,

disputes, penalties

Essentials Communication & Negotiation of Service Level

Agreements (SLA)


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Content


2. Process

3. Controls

Reports & KPIs

Costs




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Reports & Key Performance Indicators (KPIs)

Key Performance Indicators (KPIs):

Manage quantity and quality of IT Service needed

Deliver service as previously agreed at affordable costs

Manage business interface

Number or percentage of services covered by SLAs (OLAs, UCs) Number of SLAs being monitored and reports being produced

Number or percentage of service targets achieved

Number and severity of service breaches

Are service breaches being following up effectively Number of review meetings (held on time with correct minutes)

Are service level achievements improving ?

Are customer perception/satisfaction statistics improving ?


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Costs

Costs of not implementing a

Service Level Management:

Decrease in customer satisfaction

Lack of transparency of IT department

performance

No Single Point of Contact for new IT

requirements (Lack of coordination,

weak interfaces)

No adequate basis for IT charging

Costs of implementing and

maintaining the process:

Transfer costs Hardware costs

Software costs

Staff costs

Accommodation costs

Marketing costs


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Content


2. Process

3. Controls

4. Implementation Considerations Essentials

Critical Success Factors

Benefits

Risks

Practical Recommendations



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Essentials Timing and Planning Activities

Where do we wantto be?

Where are we now? Assessment

People Process Tools Information according the Service

Level Management

How do we getwhere we want tobe?

How do we know wehave arrived?

Process implementation activities and Metrics

Qualification of activities, resources, funding and qualitycriteria

Identification, design and development of support systems

Get Agreement

Training and Education

Implementation and establishment of support tools and the

new process Cut-over the new processes

Vision and business objectives

Nomination of a Service Level Manager

Mission statement and scope of the Service Level

Management Awareness Session


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Essentials Framework for Implementation

Framework for Implementation of Service Level Management:

Service Level Management need a solid basic

All Service Support processes need to be implemented

Close linkage to Availability and Capacity Management

Strategic analysis upfront is necessary (Strong linkage to Business

requirements)

Service Level Manager needs to be empowered as an important organizational

role with relevant responsibilities

IT services need to be prioritized


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Critical Success Factors (CSFs)

Critical Success Factors (CSFs):

Culture change necessary for customer as well as IT staff

Minimize the complexity (Trade-off necessary between cost,

IT strategy and IT requirements, customer satisfaction)

Establish Service Level Management as strategic role

Close link to customer and all other ITIL processes

Establish a partnership not only metrics


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Benefits

Benefits:

Alignment of customer expectations, strong links to businessrequirements focus on business needs (IT supports thebusiness)

Clearer view between both parties on roles and responsibilities

Standardization of IT services delivery and measurement Road to continuous improvement and monitoring feeds into

Configuration Management

SLAs are the basis for charging (demonstration of what

customers receive for their money) and outsourcing/out-taskingactivities

Improvement in IT service quality and reduction of serviceoutages can lead to significant financial savings

Better user/customer satisfaction and customer relationship


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Risks

Possible Problem Areas and Risks:

Interface between customer and IT is only based on metrics (SLAs)

Commitment only to achievable targets

SLAs based on desires rather than achievable targets

Lack of resources

Service Level Manager has inadequate organizational role or is seen as

spy in both camps

No adequate process or monitoring landscape available

Services are IT-based rather than business-aligned

Unclear definition of responsibilities of each party making some things

fall between the cracks

Inadequate supporting agreements, SLAs not communicated,

Verification of targets prior to Agreement


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Practical Recommendations

Practical Recommendations:

Incident structure within a Help Desk is a good starting point for service

definition. 80/20 thumb role is a useful framework to identify the most important

services, which needs to be covered first.

Reduce complexity by offering similarly measured and reported SLAs (high

administrative costs). Do not focus only on metrics - partnership between both sides is also a

critical success factor

Service Level Management and the Service Level Manager needs to be

accepted by both sides.


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Content


2. Process

3. Controls




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Summary

The goal of Service Level Management is to maintain and improve IT

service quality, through a constant cycle of agreeing, monitoring, and

reporting upon IT service achievements and instigation of actions to

eliminate poor service, in line with business or cost justification.

Through these methods, a better relationship between IT Services andits customers can be developed.

Service Level Management Activities:

Planning activities: Establish Service LevelManagement basics

Implementation activities: Plan service catalogue and SLA structure

Identify Service Level Requirements andManage Expectations

Verification feasibility

Negotiate SLAs Define reporting and review procedures

SLA publication

Ongoing activities: Monitor and Report Service Levels



Service Level Management Activities:

Planning activities: Establish Service LevelManagement basics

Implementation activities: Plan service catalogue and SLA structure

Identify Service Level Requirements andManage Expectations

Verification feasibility

Negotiate SLAs Define reporting and review procedures

SLA publication

Ongoing activities: Monitor and Report Service Levels



Process Essentials

Manage expectations

Manage relationships with customers and

suppliers

Service catalogue

Service description

End-to-end element chains Service Level Monitoring and Reporting

Service Level Agreement

Process Essentials

Manage expectations

Manage relationships with customers and

suppliers

Service catalogue

Service description

End-to-end element chains

Service Level Monitoring and Reporting

Service Level Agreement


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Exercise Service Level Management (1/2)

Scenario

This exercise is a role play. Your tutor will assign several roles to your teamwho will participate a ServiceReview Meeting. The roles are:

Service Level Manager

Client Representative (Key Account) [1 or 2-regarding on the number of members in your team]

Change Manager

For each role specific scenario instructions will be handed over by your tutorr. Please dont share thesescenario pages before the role play has ended. If you dont want to prepare your assigned role alone, contactthe person of the other team who has the same role assigned.

Task

Read the scenario page for the role which is assigned to you

Prepare yourself for the Service Review Meeting (role play) by finished the tasks mentioned in the scenariopage

Play your role in the Service Review Meeting

When the other team is performing their role play, your task is it to listen and take notes regarding the

following items: Communication behavior

Outcome from a company perspective

Outcome from the perspective of the different roles

Suggestions for improving the next Service Review Meeting


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Exercise Service Level Management (2/2)

Results

Checklist for preparation of your role for the role play

Performed role play

List with issues from the role play of the other team

Hints Try to perform your role as it is mentioned in your scenario page, not as you feel it is right or fair

Duration

Preparation of yourself : 30 minutes

Role play Service Review Meeting 1: 20 Minutes

Discussion Review Meeting 1: 20 minutes

Role play Review Meeting 2: 20 Minutes

Discussion Review Meeting 2: 20 minutes

Date post:	16-Feb-2018
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