CHAPTER 1: SERVICE VALUE SYSTEM KEY CONCEPTS AND CHALLENGES
The first chapters in this book look at how to plan and build a service value system (SVS) to create, deliver and support services. This includes:
Understanding the concepts and challenges relating to the SVS;
Understanding how to use a 'shift-left' approach;
Knowing how to plan and manage resources in the SVS; and
Understanding the use and value of information and technology across the SVS.
This information provides the foundation for the activities and choices practitioners and managers can use as services are created, delivered and supported.
SVS concepts and challenges: Organisational structure
The way an organisation is structured will have an impact on how it works. Structure affects how people work together, how decisions are made, and how new ideas are shared.
Table 1: Organisation Structures
Functional
Functional structures are typically hierarchical, with defined formal lines of authority, clear roles and responsibilities, and clear allocation of power and responsibility.
Examples of functions could be sales, finance, IT, etc.
Divisional
Divisional structures are based around organisational entities such as markets, products or geographical areas.
In a divisional structure, each division may operate as an individual entity with its own profit and loss, support teams, etc.
Matrix A matrix structure occurs when staff have dual reporting lines; for example, to a line manager and a product manager for a piece of work. Matrix organisations are represented as a grid of relationships, and often describe 'pools' of people who can move between projects and products. They can support more agile ways of working and rapid reconfiguration of resources. Flat Flat organisations have very little hierarchy and can support fast decision-making by enabling autonomy. This may, however, create challenges as an organisation grows.
Think about the structure or your current, or most recent, employer. Does it fall into one of these types? What benefits did the organisational structure offer? Did it create any challenges?
The key differences between organisational structures are often defined by:
Grouping/team basis (e.g. product, function, customer);
Location - co-located or not;
Relationship to value streams - responsible for individual step(s) or an entire value stream; and
Levels of autonomy and authority (command and control vs delegation or self-organising teams).
Digital transformation requires organisations to be more flexible and agile, which has an impact on structure. Matrix structures, resource pools and the ability to use external staff can all offer benefits. Some organisations are moving from project-based to product-based teams to provide consistency and ownership from demand to value. Any change in organisation structure should have appropriate change controls applied.
Take a look at the Banksbest case study and read about the organisation's relationship with Employeez on Demand. This supplier provides extra resources during peak times. What would Banksbest need to consider from a contractual and a service management perspective to ensure its customers receive a good service when they are speaking to Employeez on Demand staff?
SVS concepts and challenges: Integrated/collaborative culture
Collaboration and cooperation are separate concepts that should not be confused. Collaboration requires active and passive participation from all people and groups in the organisation to be effective. Cooperation is often based around goals; a group that is focused solely on its own goal can become a silo as it loses sight of the bigger picture.
For collaboration to take place, goals and key performance indicators (KPIs) for groups need to be shared, integrated, and aligned to organisational goals.
Table 2: Collaboration and Cooperation
Collaboration Cooperation Work together towards a shared goal/objective Separate goals can lead to silo working Shared and integrated goals Aligned goals Everyone succeeds or fails together Individuals and teams succeed independently Goals and resources aligned in real time Cooperative, friendly, willing to share information Technology is necessary but not sufficient Technology is necessary but not sufficient Needs respect, trust and transparency Less need for trust and transparency Needs respect, trust and transparency Less need for trust and transparency Needs multi-channel communication (stand ups, face-to-face, active listening, tool-mediated, etc.) Needs effective communication Everyone needs to understand how they contribute to the big picture Everyone needs to understand their own role Need to understand PESTLE
* factors for all stakeholders Need to understand PESTLE factors for own role
* PESTLE analysis looks at these factors as part of an analysis:
Political
Economical
Social
Technological
Legal
Environmental
The work that a team does may be classed as algorithmic or heuristic.
Table 3: Algorithmic or Heuristic
Algorithmic tasks Heuristic tasks Follow a defined process, with established instructions Depend on human understanding and intervention Follow the rules Learn or discover what is needed Clear inputs, outputs, instructions, branches, etc. Need flexibility, information, knowledge and experience Reassignment and handover between teams where needed Collaboration, swarming and DevOps often appropriate People doing the work may recognise opportunities to improve how it is done - this should be part of their role New insights can be recorded for future use, moving some work to algorithmic (removing 'toil' - manual, repetitive work that is devoid of enduring value. Toil scales in a linear way, for example more users equals more password resets.)
Think about your typical working day. How much of your work is pre-planned, and how much just 'happens'? Are your tasks algorithmic or heuristic? Algorithmic tasks may be suitable for automation or improvement, but to identify that, you will also need time to review what you are doing. Teams, for example, that spend much of their time firefighting and carrying out reactive work may struggle to find time to identify ways to do things better.
Collaboration happens within IT teams, as well as with service consumers, service provider employees, shareholders, regulators, partners, suppliers, and any other relevant stakeholders. Whether an organisation offers business-to-business (B2B) or business-to-consumer (B2C) services also has an impact on the stakeholders it will need to collaborate with. Technology (such as Slack or Microsoft Teams) can support collaboration, but don't forget the guiding principle is to collaborate and promote visibility. Don't lose information because it's hidden in a tool.
The digital economy is also imposing new challenges on organisational leaders, as well as organisational structures. Servant leadership is an approach that allows leaders and managers to focus on supporting rather than directing staff.
Looking back over your career, how many managers have you worked with who have genuinely inspired you? How many senior people have helped you to develop and made you a better person? When I reflect on my career, the number is very small, but I remember those managers for the huge impact that they had on me. Many of the managers who helped me to grow professionally (and personally) displayed servant leadership characteristics. They listened to their people and supported them almost unconditionally. They encouraged me to resolve problems for myself, while providing guidance when it was needed.
Any organisation that wants to thrive in a digital world will be familiar with all of the cultural buzzwords that go along with digital transformation - agility, autonomy, self-directing teams, etc. What is often missed are the leadership and management behaviours that allow this.
SVS concepts and challenges: Teams, roles and competencies
Traditionally, IT roles were focused on areas such as designer, programmer, business analyst or support analyst. Organisations now require staff to be more flexible and able to change their role. Business skills like relationship management, team leadership, negotiation, and supplier and contract management are also required.
ITIL uses a competency profile to describe roles....
