ZYXS has been appointed as the service integrator ZYXH will provide the retained capabilities The CEO has asked the ZYXS IT Director to prepare a governance approach for monitoring and measuring service performance that will support the achievement of the strategic objective to ensure delivery against contracts.
What is the best approach?
Objective and Context:
ZYXH wants to ensure delivery against contracts and has appointed ZYXS as the service integrator.
The CEO requests a governance approach to monitor and measure service performance.
End-to-End Service Assurance:
ZYXS, as the service integrator, is responsible for ensuring the delivery of end-to-end services. This includes integrating services from various providers and maintaining overall service performance.
Monitoring by ZYXH:
ZYXH will focus on monitoring ZYXS's performance as the integrator, ensuring that the strategic objectives are met and benefits are realized.
ZYXH will evaluate the overall outcomes and effectiveness of the SIAM transition, including service quality and contract adherence.
Governance Approach:
This approach aligns with the SIAM principle of having the service integrator manage operational responsibilities while the retained organization oversees strategic performance and benefits realization.
SIAM Professional Body of Knowledge (BoK), Chapter on Service Performance Management
ITIL 4: Direct, Plan and Improve (DPI), Section on Governance and Reporting
SIAM Professional Body of Knowledge (BoK), Chapter on Governance and Service Assurance
ITIL 4: Direct, Plan and Improve (DPI), Section on Monitoring and Measuring Performance
The planning for NEWGEN has started
- ZYXS will be the service integrator
- OUTSCO will provide application support services
- NETSCO will provide network services.
- PAYSCO is asked to continue to provide payroll services
Users are happy with the services of PAYSCO The contract with PAYSCO has 2 years left to run This is 18 months after the expected completion date ot the implementation of the SIAM model Initial discussions by ZYXS with PAYSCO have indicated that PAYSCO does not want to make any contract changes to support the SIAM model.
Given this constraint what is most likely to be the best method to plan for onboarding PAYSCO?
Understanding the Scenario:
ZYXS will be the service integrator.
OUTSCO, NETSCO, and PAYSCO are the service providers.
PAYSCO provides payroll services and users are satisfied with PAYSCO's services.
The contract with PAYSCO has 2 years remaining, which extends 18 months beyond the SIAM model implementation.
Analyzing Constraints:
PAYSCO is unwilling to modify the existing contract to support the SIAM model.
Evaluating Options:
Option A: Terminating the contract early involves additional costs and may disrupt payroll services, leading to dissatisfaction among users and potential operational risks.
Option C: Renegotiating contracts with NETSCO and OUTSCO to manage PAYSCO indirectly could introduce complexity and might not align with the direct relationship PAYSCO has with ZYXS.
Option D: Waiting for the contract to expire is not feasible as it delays SIAM model implementation and integration benefits for 18 months.
Selecting the Optimal Approach:
Option B: Implementing an interim operating model allows ZYXS to manage PAYSCO within the current contract constraints, ensuring continuity of payroll services and gradual alignment with the SIAM model. This approach maintains user satisfaction and operational stability while working towards full integration.
Justification:
An interim model provides a practical solution without immediate contractual changes, leveraging existing relationships and ensuring service continuity.
This approach aligns with ITIL and SIAM principles of maintaining service quality and managing supplier relationships effectively during transitions.
ZYX has now appointed SIAMRUS as the service integrator and has started to plan and build the new SIAM ecosystem Initially the new SIAM model will be supported by the existing service providers.
In a recent program progress meeting, it was highlighted that the planned Organizational Change Management (OCM) initiative has a high cost
What approach should be taken to ensure that the OCM initiative for the service providers will cost effectively support the transition to SIAM?
Comprehensive OCM Scope:
Including all service providers in the OCM initiative ensures that every stakeholder is aligned with the changes, minimizing resistance and ensuring a smoother transition.
Use of ADKAR Model:
Utilizing a recognized change management model like ADKAR provides a structured approach to managing change.
The ADKAR model focuses on Awareness, Desire, Knowledge, Ability, and Reinforcement, which are critical for effective change management.
Understanding Provider Intentions:
Fully understanding the intentions and potential conflicts of interest of large providers like OUTSCO and NETSCO helps tailor the OCM activities appropriately.
Addressing these factors early mitigates risks and ensures cooperation from all parties.
Tailored OCM Activities:
Customizing the OCM activities to suit the characteristics of each service provider ensures relevance and effectiveness.
Tailoring the approach helps in controlling costs by focusing efforts where they are most needed and avoiding unnecessary expenses.
Cost-Effective Transition:
A well-planned and tailored OCM initiative ensures that the transition to the new SIAM model is cost-effective and achieves the desired outcomes.
SIAM Professional Body of Knowledge (BoK), Chapter on Organizational Change Management
ITIL 4: Create, Deliver and Support (CDS), Section on Change Management
SIAM Professional Body of Knowledge (BoK), Chapter on Organizational Change Management
ITIL 4: Direct, Plan and Improve (DPI), Section on Managing Organizational Change
ZYXH is the head office of the ZYX corporation, with responsibility for corporate strategy, global investments, procurement, contract governance and financial reporting of the performance of ZYX Corporation
The corporate strategy of ZYX contains these objectives
- Ensure delivery against contracts
- Invest in and train all ZYX staff
- Reduce operating costs
- Be ready to adapt to change
The ZYX strategy requires that the costs of the service integrator should be as low as possible
The ZYX Board of Directors has introduced additional policies that supplement the corporate strategy The policies immediately apply to all new services, providers, and contracts and include the following guidelines
- No contract can be longer than 2 years duration
Service levels in contracts must be continually updated to reflect increasing customer requirements
- Service providers who fail service levels for more than 3 consecutive months must be replaced
The service integrator must also be replaced if the end to end service levels fail for 3 consecutive months
- The number and variety of service providers must be increased
- There must be more small providers and commodity providers
- Additional staff can be recruited within ZYX where there are clear business benefits
In this scenario, who would be most likely to be proposed as the service integrator?
Introduction:
ZYXH's corporate strategy and additional policies require a cost-effective service integrator with the capability to adapt to frequent changes in service providers and contracts.
Analyzing the Options:
Option A (OUTSCO):
Likely to offer competitive pricing and flexibility required to manage a large number of small and commodity providers.
Aligns with the policy of no contract longer than 2 years and frequent updates to service levels.
Option B (SIAMRUS):
While experienced, may not be the most cost-effective option considering the policies requiring frequent changes and updates.
Option C (ZYXII):
An internal integrator may struggle with the cost constraints and requirements for frequent updates and changes in service providers.
Option D (ZYXS):
Similar to ZYXII, may not be the best fit given the stringent cost and flexibility requirements.
Conclusion:
Option A (OUTSCO) is the most likely choice as it aligns with ZYX's strategy for cost-effective and flexible service integration.
The ZYX Board of Directors decided that the proposal from SIAMRUS for ZYXUK was not suitable to be used for the whole of the group, and asked the ZYXS IT Director to lead the creation of a new SIAM strategy. This new SIAM strategy has now been approved by the NEWGEN Executive Steering Board.
What is the best approach to ensure that the ZYXUK Management Board supports the implementation of this SIAM Strategy?
Stakeholder Engagement: Successful implementation of the SIAM strategy requires buy-in from all key stakeholders, including the ZYXUK Management Board.
Perspective Consideration: Demonstrating that the perspectives and concerns of ZYXUK stakeholders have been considered helps in gaining their support. It shows that the strategy is tailored to address their specific needs and challenges.
Communication Strategy: Clear and transparent communication about how stakeholder feedback has been incorporated can alleviate concerns and build trust.
Alternative Approaches:
Delaying implementation (Option A) can stall progress and may not address underlying concerns.
Teaming board members with strategy team members they know (Option B) might help but does not ensure understanding and buy-in at a strategic level.
Financial incentives (Option D) may be seen as coercive and can undermine genuine commitment to the strategy.
Conclusion: Ensuring stakeholders understand how their input has shaped the strategy is the most effective approach to securing their support and facilitating smooth implementation.
SIAM Foundation Body of Knowledge (BoK), Chapter on Stakeholder Engagement and Management
SIAM Professional Body of Knowledge (BoK), Strategic Alignment Sections
