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Recipe for successJames Prunty on why ITIL is the ‘secret sauce’ that aligns IT and business Pick up almost any information technology (IT) trade magazine published during the past quarter of a century and you will be hard put not to find editorials and case studies decrying the lack of alignment between the IT and business organizations. Some of these articles lament the lack of business knowledge on the part of IT professionals who cannot communicate effectively or even understand the business (and business customers) they are supposed to serve. Some look at the other side of the equation and place the blame for dysfunctional IT systems and operations with business managers who continually change their specifications, which means the IT department is forced to function in crisis mode 24/7. The truth is there is plenty of blame to go around. We’ve all met IT professionals who fall in love with the latest and greatest technology, even though it’s untested, expensive, hard to install and difficult to use. And we all know more than our fair share of business managers who are so techno-phobic – or downright lazy – that they hardly know how to use their e-mail, word processing or spreadsheet applications. They’re the ones calling the helpdesk at all hours asking about things they should have learned years ago. The ironic thing is that after discussing every conceivable aspect of IT/business alignment for the past 25 years, so many smart companies and dedicated IT and business professionals still have not managed to crack the code. And yet the stakes have never been higher. IT and business managers are faced with a daunting array of challenges, including reducing total cost of ownership, increasing return on investment in IT assets, delivering competitive advantage, deploying and integrating IT systems quickly and cost-effectively, meeting service level agreements that guarantee high availability, and recovering rapidly from IT systems failure. The good news is that more and more companies have found a way to align their IT and business organizations by adopting the IT Infrastructure Library (ITIL). ITIL is a framework that codifies best practice guidelines in IT service management (ITSM) and delivery learned over many years in organizations around the world. ITIL best practices help to ensure that the IT department is run like a business and has a keen customer focus. For example, IT managers learn how to ascertain their customer’s business goals and negotiate effective service level agreements. And they learn to solicit customer feedback through surveys, focus groups and the like. The framework is flexible enough that it can be customized to suit the needs of companies in particular industries – for example, pharmaceutical firms that must conform to strict Food and Drug Administration regulations that govern many aspects of their IT operations, or banking and financial services firms that likewise must obey strict government requirements on how they operate and maintain their IT systems and data. So what exactly is ITIL, and how does it foster alignment between IT and the business? The ITIL framework consists of seven books that provide best practice guidance on the principal IT service management disciplines that support and benefit business activities. When most people speak of ITIL, they are referring to the two ‘main’ books or modules: Service Support and Service Delivery. • Service Delivery provides guidance on how to assess,
negotiate and meet service level agreements. It includes disciplines like high
availability, capacity management, business continuity and disaster recovery.
This module also takes into account the cost of delivering services and helps
IT managers make financial management a key part of their service delivery practices.
IT managers cannot run IT like a business unless they learn to be good financial
managers and know the cost of delivering their IT services and can forecast
for their business colleagues the financial impact of changes to SLAs or other
service delivery practices. Managing IT in a way that aligns it with the organization’s business goals and practices is one of the most challenging assignments in any organization. IT and business managers in the world’s best managed companies have been trying for more than a quarter of a century to develop methods that would make this job easier and more predictable. Finally, we have at our fingertips a body of best practices that provides expert guidance on the most difficult aspects of this job. ITIL is a godsend to IT managers and their business customers who have been looking all these years for the secret sauce to IT/business alignment. |