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Strategic Thinking and Service Management

Strategic Thinking and Service Management

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<strong>Strategic</strong> <strong>Thinking</strong><strong>and</strong> <strong>Service</strong><strong>Management</strong>Edward LewisUNSW Canberra#LEADit


Presenter Plan• 8.30 – 10.00: Introductions,Concepts (Control, Risk, Core,Values, Resources, <strong>Strategic</strong>thinking)• Morning tea• 10.30 – 12.00 (ish): Principles<strong>and</strong> Application to Education<strong>Service</strong>s


Introductions• Initial Intent• My biases• Your requirements for utility <strong>and</strong> warranty of my service today


IntentThis workshop will introduce the principles of planning that should beused to develop <strong>Service</strong> Strategy.These principles encourage <strong>Service</strong> Managersto use strategic thinkingto plan the business <strong>and</strong> technical services thatenable their enterprise to gain <strong>and</strong> maintain control over itsoperations.


Why Me?In service all my lifeArmed <strong>Service</strong>sPublic <strong>Service</strong>Education <strong>Service</strong>Helped produce ISO38500(Corporate Governance of IT)Strategy <strong>and</strong> PolicyHelping to produce ISO 31000 <strong>and</strong>H<strong>and</strong>books (Risk <strong>Management</strong>)Risk-response


Statements of FaithEverything is a serviceThe greatest risks<strong>and</strong> the best responsesarise from the people in the processRisk is everybody’sbusiness


Why You?• Why are you here?• What would be your measure of success for this workshop?


Concepts• Control• Risk• Values• Capabilities <strong>and</strong> <strong>Service</strong>s• Resources for Capabilities• <strong>Strategic</strong> thinking• Business cases as application of strategic thinking


ControlControl ismaintainingdesiredperformance• Setting target• Monitoringtarget – actual• Removing gapSitting underneath this concept is thetheory of controlPerformance cyberneticsNow Gain control = add value (utility)Maintain control = preserve value (warranty)Then Time


RiskOfficially,in ISO 31000,risk is “effect ofuncertainty uponobjectives”orPossible deviationfrom desiredperformance(current or futurevalue)that is of concernPerformance Now Then risk Time


Core Commodity Common <strong>Service</strong>sEnrol ReceiveStudy Test KnowITIL = Core,enabling,enhancingIT (Admin, Pay, Logistics)PersonnelFinanceSense risk in one minute= response in one minuteSense risk in one week= response in one weekGoverned at the highest level, for effectiveness,through strategyGoverned at the lowest level possible, forefficiency <strong>and</strong> acceptabilitythrough policy


Fundamental ValuesEffectiveCapable = will it work?Capacity = will it work enough?EfficientSufficient = can we afford it?Safe = is it safe <strong>and</strong> secure?AcceptableSatisfactory = will they want to use it?Suitable = will they be allowed to use it?Actually, it is all about acceptability… to the boss… to other managers… to your people


Capability <strong>and</strong> <strong>Service</strong>sBusiness <strong>Service</strong>• Capability PortfolioSoftware <strong>Service</strong>• Capability programmePlatform <strong>Service</strong>• Capability projectInfrastructure <strong>Service</strong>• Capability resource


What does it all mean?Capability is achievingan effect(providing a service)through a set ofresourcesWe need to determinewhat is that effect<strong>and</strong> which resourcesbest provide that effectthrough strategicthinking14


Capability Resources (W6)1. Way2. Whom3. With4. Where5. When6. Worth


Resources for Resources (W36)


<strong>Strategic</strong> <strong>Thinking</strong> vs <strong>Strategic</strong> PlanningThese days, we have ‘emergent strategy’ <strong>and</strong> adaptive or agile planningDriven by circumstances (threat, opportunity) not timeSo need planning processes <strong>and</strong> skills that enable us to gain <strong>and</strong>maintain controlSafer to call it ‘strategic thinking’to avoid the baggage of ‘strategic planning’


What is <strong>Strategic</strong> <strong>Thinking</strong><strong>Strategic</strong> thinking is… the skill in gaining control.Involves looking over thehorizon to:1. set targets for futureperformance,2. monitor likely performanceagainst these targets, <strong>and</strong>3. design means for reducingpossible deviation from thesetargets


Where <strong>Strategic</strong> <strong>Thinking</strong> HelpsAs you know, ITIL <strong>Service</strong> Strategydraws upon ISO/IEC 38500: 2008Corporate governance of informationtechnologyIt contains the Evaluate Direct Monitormodel.And also six principles, one of which isStrategy:(“The organizations’ business strategytakes into account the current <strong>and</strong>future capabilities of IT; the strategicplans for IT satisfy the current <strong>and</strong>ongoing needs of the organization’sbusiness strategy”)BusinesspressuresDirectPlan/PoliciesIT ProjectsEvaluateProposalsMonitorPerformance/conformanceBusinessNeedsIT Operations


<strong>Strategic</strong> <strong>Thinking</strong> about <strong>Service</strong>sRegarding ITIL <strong>Service</strong> Strategy(2011) …… <strong>Strategic</strong> thinking is neededfor:• Preparing <strong>and</strong> evaluatingproposals (high-level riskstudies)• Preparing <strong>and</strong> evaluatingpolicies• Monitor managers to see ifperforming <strong>and</strong> conforming


<strong>Thinking</strong> of Work Systems<strong>Strategic</strong> thinking = choice ofthe responsibilities <strong>and</strong>resources that provide thecapability <strong>and</strong> capacity toprovide the required service,subject to the efficiency <strong>and</strong>acceptability constraintsSystemic thinking = aligning,integrating, <strong>and</strong> attuning theresources


What <strong>Strategic</strong> <strong>Thinking</strong> HelpsThere are principles of <strong>Strategic</strong> <strong>Thinking</strong>… as generally useful guides to sound behaviour in <strong>Service</strong> Strategy<strong>Thinking</strong> Systems 1 Systems 2<strong>Service</strong> managersGovernancecommittee (Board,Steering)<strong>Service</strong> staffEvaluate proposalsImplementinitiatives, maintainwarrantyPrepare proposal forinitiatives to gaincontrol; businesscases, risk studies


Principles for Planning in <strong>Service</strong> Strategy• Use of Principles• What are the PEACEFUL Planning Principles• Risk-Response Approach to <strong>Strategic</strong> <strong>and</strong> Systemic <strong>Thinking</strong>• Use of Principles in <strong>Service</strong> Strategy(with a Higher Education <strong>Service</strong>s example)


Use of PrinciplesPrinciples are generally usefulguides to sound behaviour• ‘Maxims’ for the business• Policy principlesor ‘Our Values’• Values that describe desiredoutcomes


Some Familiar PrinciplesPrinciples are very useful,every home should have some.It seems that they do …most st<strong>and</strong>ards these days areprinciple-based.


What are the Planning PrinciplesP leaseE verybodyA nticipateC ouple forE ffectF ixU pL essenWhat dothey needWhen dothey need itWhat do weredesignWhatimproves itWhat usesless


Please EverybodyWhy: Everyone is willing touse, Everyone is allowed to useWhat: Reduce the concernsof the key points-of-viewHow: Know who to please,Know what pleases <strong>and</strong> whatdoes not please them, Showthey will be pleased, Keep thempleasedMIT CISR


Education <strong>Service</strong>: Who wants whatDellarocas, C. <strong>and</strong>Van Alstyne, M.(2013), MoneyModels for MOOCS,Communications ofthe ACM, 56(8),25-28


AnticipateWhy: Gain control over destiny–Think ahead, Think it throughWhat: Provide requisiteresources in timeHow: Know what is requiredthen, Know what resources willbe ready in time, Speed response


Education <strong>Service</strong>: What could happenMOOC (ofcourse)‘Gamefication’VirtualSimulationBig DataSocial MediaVirtual teamsExpert tutoringProblem basedcertification (games)Dellarocas, C. <strong>and</strong>Van Alstyne, M.(2013), MoneyModels for MOOCS,Communications ofthe ACM, 56(8),25-28DigitalLiteracyDigitalLeadershipInformabledecisionmakersProfessional services


Couple for EffectWhy: Obtain desiredcharacteristics, Obtain intended<strong>and</strong> only the intendedconsequencesWhat: Link resources to givethe required characteristicsHow: Know where to cede, Knowwhat to cede, Consider coupling inall other principles


Couple for Effect – Design 1/2Everything is connectedbut should not be alwaysCommon environmentResource competitionInput-output35


Couple for Effect – Design 2/2Recoupling is a response to riskSt<strong>and</strong>ards“Slack” resourcesChange input-outputBuffer36


Example of the Effect of CouplingDifferentcoupling =differentrestaurants37


Coupling <strong>and</strong> CharacteristicsThe couplingbetweencomponentsdetermines(solely) thecharacteristicsof the system


Coupling for Effect - CapabilityWhat are the characteristics of the resource that intercedes(decouples, ‘controls’) in the chain of consequences that concernthe points-of-viewEffectivenessCapabilityCapacityEfficiencySufficientSafeAcceptableSatisfactorySuitableCircumstances/conditionsConcernsConsequencesIntercedingvalueValuesValuesSub-Values


Recouple in DADDesign Analysis Displays generate every possible option,from couples between alternative ways of achieving each subcapabilityOption: Increase training – collaborative assignments on line –central training


Education <strong>Service</strong>: Design Analysis DisplayGain knowledgeD Generate Knowledgel D . Scholarly l l x . Empirical l l x . Computational l l x Communicate l D . Journals l l x . Conferences l l x . Wiki/ blog l l x . Books/ chapters/ reports l l x Result l D . Professional l l x . Societal l l x Remove IgnoranceD Enroll D . On campus l 1 x . Online l 1 x Accommodate l D . On campus l l x . Off campus l l x . Not l l -­‐ -­‐ x Transmit l D . Lectures l l x . Tutorials l l x . Online l l x Study l D . Peer to peer l l x . Self l l x Form of Assessment l D . Examination l l x . Project l l x . Game/ simulation l l x . Portfolio l l x . None -­‐ -­‐ -­‐ -­‐ x Location of assessment l D . On campus l -­‐ l x . Off campus l -­‐ l x . On line l -­‐ l x Result l D . Professional st<strong>and</strong>ards l 1 x . Societal st<strong>and</strong>ards l 1 x OptionsOxbridge L L L L L L L L L L L L L L L S<strong>and</strong>stone L L L L L L L L L L L L L L L L L L L L L Liberal Arts L L L L L L L L L L L L L L L L L L Distance L L L L L L L L L L MOOC L L L L L


Fix UpWhy: Reduce concerns –politics, Continually seek to dobetter, Maintain controlWhat: Respond to the risksof the responseHow: Grow options,‘Simplicate <strong>and</strong> add lightness’,Underst<strong>and</strong> politics, Maintainwarranty


Lessen CostWhy: Reduce concerns(resource managers), BuildreservesWhat: Trim resourceswhilst still effectiveHow: Trade off resources, Findthe cheapest effective way,Avoid waste, Use worth notesteem


Risk-ResponseCircumstancesWhy: Gain control, MaintaincontrolCedes(controls)characteristicsConcernsWhat: Respond rapidlyenough with requisiterelated resourcesConsequencesHow: Know level of concern,Reduce level of concernCapabilitiesControlsConsideration


Risk-Response Approach


Use of Principles in <strong>Service</strong> StrategyPrincipleEducational servicePlease Everybody Whose concerns Clients (students),customers, staff, regulatorsAnticipateWhat will concernthemaccepted qualifications,available to all, pay for itselfCouple for EffectBuffers, st<strong>and</strong>ards,relinkDistance, on dem<strong>and</strong>,simulatedFix Up Residual risk Redesign curriculaLessen costsReduce budgetableresourcesReuse


In Conclusion<strong>Strategic</strong> thinking is apeaceful responseto risksso that you gain <strong>and</strong>maintain control


Action Plan• Monday• 90 Days• Next Year


Additional Resources• www.layrib.com forebook: Risk-Response: User Manual for <strong>Strategic</strong> <strong>and</strong> Systemic<strong>Thinking</strong><strong>and</strong> these slides• layrib@gmail.com (if you want to chat)

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