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CHAPTER 1: DIRECT, PLAN AND IMPROVE KEY CONCEPTS
This chapter introduces the DPI key concepts that underpin the rest of the DPI content. These include:
• DPI key terms;
• Differentiating between key concepts, including:
Strategy, tactics, operations;
Governance, compliance, management; and
Policies, controls, guidelines.
• Value, outcomes, costs and risks in a DPI context.
The ITIL 4 DPI manual is intended to support practitioners at all levels:
“Regardless of organizational role, everyone has authority, even if it is limited to personal direction. Everyone should plan. And everyone should be contributing to, if not leading, improvement. The publication explores and explains principles, methods, and techniques that can be universally used to direct, plan, and improve. We have also included tools and templates that can be used to implement the guidance.”
The key themes within DPI are the focus of the DPI course, and of this publication.
Direction
The definition of direction is:
“Leading, conducting, or guiding someone, or ordering something. This includes setting and communicating the vision, purpose, objectives, and guiding principles for an organization or team. It may also include leading or guiding the organization or team towards its objectives.”
Having clear direction in an organisation helps to clarify what outcomes are expected and what principles should be followed. Effective direction relies on a defined mission, respect for the abilities of those being directed, and good two-way communication. Changes in direction need to be communicated so that team members can adapt to them.
The people who give direction may have been given authority formally (for example, they hold a senior role such as a chief technology officer) or informally (for example, an enthusiastic champion for a new initiative). Evaluate, direct and monitor (EDM) is a common construct for providing direction. EDM allows performance to be monitored to ensure direction is having some effect.
Planning
Planning is defined in ITIL 4 as the “value chain activity that ensures a shared understanding of the vision, current status, and improvement direction for all four dimensions and all products and services across an organization”.
Once direction is set and provides an objective, a plan can be used to define how to move towards the desired state. Plans help to avoid waste and reduce risk and are particularly important in large organisations where more coordination is needed.
Plans can range from very simple to very complicated. Planning too much or too little creates problems;for example:
• Too much planning means actual execution can be delayed;
• Too much faith in detailed plans leads to paralysis when something unexpected happens; and
• Work starts without sufficient planning, leading to rework or waste.
The amount of planning undertaken should be proportionate to the work that is being carried out. Planning is helpful, but it’s important to remember that plans may need to evolve once work begins or as requirements change. Planning should be seen as an iterative activity that continues alongside the work being carried out, rather than a one-off exercise.
“Everyone has a plan until they get punched in the mouth” (Mike Tyson).
In the year that I wrote this book, a pandemic crippled economies around the world and changed every aspect of daily life. Planning is a vital capability, but we must also build resilient organisations that can adapt and change when circumstances deviate from the plan.
Improvement
Improvement is defined as “a deliberately introduced change that results in increased value for one or more stakeholders”.
Very few organisations start with a completely blank canvas. If we are dealing with existing people, processes or technology, our activities are improvement activities. To measure whether an improvement has been effective, we must understand our start point and whether the change has made things ‘better’. Improvement can apply to any part of the ITIL service value system.
Improvement takes place at every level of an organisation – strategic, tactical and operational. If operational staff are empowered to identify and (where appropriate) implement improvements, organisations can see real gains in their services and the user experience that they offer. Different levels of the organisation might have a different role to play in improvement, with direction set at the strategic level, planning and coordination taking place at the tactical level, and implementation taking place at the operational level. It is important to remember that the staff who are closest to the customer may be best placed to identify improvements.
Measurement and reporting help us understand our position before, during and after improvement activities. Objective data means there should be no argument about whether something is ‘better’ or not. Measurement and reporting can also help predict the results of improvement actions, for example how many more website sales would be generated with an improved checkout process?
One of the advantages of starting something in a ‘greenfield environment’ (i.e. one where nothing is already in place) is the complete freedom from constraints and past experience. When we approach improvement activities, we need to build a plan that incorporates past experiences, culture, existing technology, and so on. This can create challenges that need to be part of our improvement plans. For example, in the case study in the Appendix you read about the rebrand from HW Banking to Banksbest. If Banksbest were launched as a brand-new organisation, it would be easier for it to communicate its ‘digital first’ message. Because Banksbest is an ‘improved’ brand compared to HW Banking, it must consider the existing customer base and their perception of the old and new brands.
Operating model
An operating model is “a conceptual and/or visual representation of how an organization co-creates value with its customers and other stakeholders, as well as how the organization runs itself”.
The ITIL service value chain is an operating model for the creation, delivery and management of products and services. Operating models show complex systems divided into sub-systems, allowing them to be examined and managed more easily.
Methods
A method is “a way, technique, or process for doing something. Methods are structured and systematic.”
Methods are used for structured, systematic work. Some organisations provide guidance about which methods to use, and others allow teams carrying out work to choose their own method. For example, some organisations will work in a waterfall way, whereas others use Agile methods. Waterfall or Agile could be mandatory for teams, or teams might be allowed to choose their own ways of working.
Risks
Risk is “a possible event that could cause harm or loss or make it more difficult to achieve objectives. Risk can also be defined as uncertainty of outcome and can be used in the context of measuring the probability of positive outcomes as well as negative outcomes.”
Every organisation will experience risk. From a DPI perspective, risk management is a way of balancing maximum results against minimum harm or loss. Once risks are understood, they need to be managed. Risk management is important because risks can cause projects, products and services to fail or deliver sub-standard results. If team members are aware of risks that are being ignored, this can affect their behaviour and morale. Ultimately, organisations need to understand their current risk levels to drive improvement activities. Risks cannot be managed until they are understood.
Controls
A control is “the means of managing a risk, ensuring that a business objective is achieved, or that a process is followed”.
Controls are used as safeguards or countermeasures. Control categories include:
• Organisational/procedural controls: These controls include policies, organisation, training, ownership and processes.
• Logical/technical controls: These include elements like required fields, scripting and automated workflows.
• Physical controls: These include badge or code entry systems, fencing, locks and guards.
Controls need to be ...
