IT governance helps customers and providers talk about value, costs, and risks–three key components in the definition of an IT service. IT service management can support IT governance by making IT more transparent, by adding control points for governance, and by better connecting what IT does to what the institution most needs. Conversely, IT governance can support IT service management by advocating for IT services and by providing a high-level decision-making framework, firm commitments, policies, and architectural standards. We’ll briefly review what IT governance is, and then talk about the role of specific IT service management processes in supporting IT governance–processes such as IT service portfolio management, IT financial management, IT supplier management, IT change management, and IT continual service improvement. We’ll also briefly introduce how COBIT 5 can help ITIL practitioners connect service management capabilities to IT governance.

1. Connecting ITSM to
IT Governance
JOHN BORWICK, MANAGER AND FOUNDER
HIGHER EDUCATION IT MANAGEMENT, LLC
http://www.heitmanagement.com/itilcg2014

2. John Borwick, PMP®, ITIL® Expert
 Wake Forest University,
2003-2012
 Director of Service Mgt
 PMO Director
 Manager and Founder,
HEIT Management
Career goal: Make people’s
lives easier by improving
how higher education IT is
managed.
johnb@heitmgt.com

3. Higher Education IT Management, LLC
 One-on-one coaching
 Custom engagements
 Blog
 Newsletter
http://www.heitmanagement.com

4. Agenda
 Background: ITSM, IT governance
 Preparing for an IT governance meeting
 Providing visibility and transparency
 Understanding and explaining IT costs
 Understanding value
 Understanding risks
 Responding to IT governance concerns
 Ways IT governance can help ITSM
 COBIT as a reference source
 Q&A

5. Background: IT service
management

6. IT service management (ITSM)
 Organizations: itSMF, HDI, ITIL CG
 Guidance: ITIL®, ISO 20000
 Certifications (for people): ITIL foundations,
ITIL intermediate certificates, ITIL expert

7. ITIL’s definition of a service
“A service is a means of providing value to customers
by facilitating outcomes they want to achieve without
the ownership of specific costs and risks.”

8. Examples of specific costs and risks
Specific costs
Specific risks
 Hardware support
 IT tool stops working
needs to be renewed
 Database
administrators need to
go to training
due to a software patch
 Water leak in the data
center

9. Background: IT governance

10. Aside: what is “governance?”
 Board of Trustees

11. IT governance
 Organizations: ISACA, IT Governance Institute
 Guidance: ISO38500, Implementing and
Improving IT Governance, …
 Certifications (for people): CGEIT® (Certified
in the Governance of Enterprise Information
Technology)

12. IT governance fundamentals
Value
Cost
Risk

13. IT providers own costs and some risks
Value
Cost
Risk

14. IT consumers own value and some risks
Value
Cost
Risk

15. Example: Admissions CRM tool
IT Consumers
IT Providers
Value
 Time saved in
recruiting
 Improved candidate
quality
Risks
 People understanding
the technology
Costs
 OS licenses
 Time spent on
maintenance
Risks
 Hardware failure
 Unanticipated demand

16. IT governance depends on effective IT
management practices
 IT governance cannot make decisions in a vacuum
 IT governance will push you to improve processes
 Build improvement loops:
 Make and communicate guesses based on what you have
 Plan for incremental improvements from meeting to meeting

17. Preparing for an IT governance
meeting

18. Multiple IT governance groups
Board-level IT
governance ?
Cabinet-level
IT governance
Academic IT
governance
Administrative
IT governance

19. Visualize a cabinet-level IT governance meeting
 Provost
 CFO
 Dean(s)
 CIO
 VP, Alumni Relations
 VP, Facilities
http://www.flickr.com/photos/89228431@N06/11080482376/

20. Providing visibility and
transparency

21. Service catalog management
 Business service catalog, or “Lines of Service”
 Use the language of the catalog
 Highlight existing IT work
Operations vs. Enhancements
30%
70%
Operations
Enhancements

22. Service catalog reports:
demand by department
IT service catalog report for Finance for CY2013Q4
Service
# incidents
# requests
# changes
Business
intelligence
87
220
85
Desk-side support
350
103
9
Web site support
20
30
20
…
…
…
…

23. Service portfolio management
 Add service information to your project portfolio
reporting
 Raise the visibility for ongoing IT support costs

24. Service pipeline report
Project
Status
Line of
service
Admissions
CRM tool
In progress,
On schedule
Administrative Admissions
services
Virus
scanning
tool
In progress,
Desk-side
Behind schedule support
All
departments
…
…
…
…
Customer(s)
Net impact
to IT
operations
+1 IT FTE
-0.5 IT FTE

25. Understanding and explaining
IT costs

26. Service level management
 Define and approve a global service level
 Access to the Service Desk
 Next-business-day response
 Build “tiers” of service
 Gold: 24x7x365, one hour response
 Silver: 24x7x365, four hour response
 Bronze: 9x5, next business day response

27. Costs of service by tier
• Email service:
Tier
Cost
Gold
$300,000
Silver
$200,000
Bronze
$150,000
• Customers pay for exceptions

28. IT financial management
 Translate the IT budget into IT service costs
 Non-personnel
 Direct costs (e.g. server hardware for the LMS)
 Indirect costs
 Personnel
 “Billable hours” vs. overhead

29. IT costs by service
Total operating budget $1 million
Service
Costs (budgeted)
Service level
Administrative support
$300,000
Gold
Web site support
$150,000
Silver
Reporting
$300,000
Bronze
Personnel set-aside for
project work
$250,000
--

30. Understanding value

31. Business relationship management
 Proactive customer meetings
 Briefings to CIO and IT leadership

32. Customer satisfaction reports
 Reports by Service Desk contact
 Service Desk to end users
 Reports by service
 Business Relationship Management to the service’s customers
 Overall IT satisfaction reports
 Business Relationship Management to campus

33. Demand management
 Working with customers to understand demand
 Influencing demand, e.g. through marketing

34. Understanding risks

35. Service Design “warranty” processes
 Availability management
 Capacity management
 IT service continuity management
 IT security management

36. Provide “levers” to IT governance
Disaster recovery for the Learning Management
System has not been done. Options:
$0: All records lost if there’s a fire
2. $100k/yr: Records stored off-site; returning the
service to production would take 2 weeks and
$500k
3. $1 million + $100k/yr: Records stored off-site and
a “hot standby” environment will be ready
1.

37. Responding to IT governance
concerns

38. Service Improvement Programs (SIPs)
 Standard process for improving
 Raises the visibility of service improvements

39. Ways IT governance can help
ITSM

40. Ways IT governance can help ITSM
 Sponsorship
 Advocate for the language of IT services
 Focus on the customer

41. COBIT as a reference source

42. Control Objectives for Information and related
Technology (COBIT)
 Organization: ISACA
 Guidance: COBIT 5 (and many supplementary
publications)
 Certifications (for people): COBIT 5 Foundation,
COBIT 5 Implementation, COBIT 5 Assessor

43. COBIT 5’s processes
 37 processes including governance processes:
 EDM01 Ensure Governance Framework Setting and
Maintenance
 EDM02 Ensure Benefits Delivery
 EDM03 Ensure Risk Optimisation
 EDM04 Ensure Resource Optimisation
 EDM05 Ensure Stakeholder Transparency

44. APO09: Manage Service Agreements
 APO09.01: Identify IT services
 APO09.02: Catalogue IT-enabled services
 Inputs include an “approved resources plan” from IT
governance
 APO09.03: Define and prepare service agreements
 APO09.04: Monitor and report service levels
 APO09.05: Review service agreements and contracts

45. APO09 “Related Guidance”
ISO/IEC 20000
 5.0 Planning and implementing new or changed
services
 6.1 Service level management
ITIL V3 2011
 Service Strategy, 4.4 Demand Management
 Service Strategy, 4.2 Service Portfolio Management
 Service Design, 4.2 Service Catalogue Management
 Service Design, 4.3 Service Level Management

46. Review
 Background: ITSM, IT governance
 Preparing for an IT governance meeting
 Providing visibility and transparency
 Understanding and explaining IT costs
 Understanding value
 Understanding risks
 Responding to IT governance concerns
 Ways IT governance can help ITSM
 COBIT as a reference source

47. http://www.heitmanagement.com/itilcg2014