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Service Management Office
Start-Up Kit


Table of Contents
2 Introduction
3 8 Steps to Implementing a Service Management Office
15 Get Started
17 About Plexent



Plexent 2011-2012


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Introduction
8 Steps to Implementing a Service Management Office (SMO)
The primary role of the SMO is to provide delivery of high quality technology infrastructure management
(both strategic and tactical) to internal customers. And, at the highest level, the Service Management Office
is tasked with nurturing an internal network of champions at the executive level of the enterprise so the
entire company understands the role of (and costs associated with) corporate technology.
So, recognizing the need, how does an IT manager go about establishing a Service Management Office?
1. Develop a SMO vision and mission. It is important to understand the difference between a vision
and a mission. A vision shows the long term goal or view of the SMO and is used to define how the
SMO will operate or exist in the environment within which they function or would like to function. A
mission defines their purpose, or to put it more clearly, it describes their reason for being
2. Create a SMO Charter. The purpose of the SMO charter is to define the scope, objectives and
participants of the SMO. It provides an initial guide that outlines why the SMO has been created i.e.
their purpose, their areas of influence and governance, their overall role in the organization and
their level of authority.
3. Define SMO roles and responsibilities. Its critical to develop clarity regarding roles within the
SMO. Well-defined leadership structures and reporting relationships will be of great help in
seamlessly integrating the office into the hierarchy of the IT organization. Cross-functional and
supporting roles must also be defined.
4. Determine which processes to implement. To get the complete benefit from IT Service
Management, all of the processes should be moved into operation together. However, for the
majority of organizations this is an impracticable and unrealistic approach to take. So, how does the
SMO determine which processes to implement and in which order?
5. Create actionable policies, processes, and procedures. Many of the functions of a SMO are
likely being handled by other work groups within the IT organization. In many cases, it will simply be
a matter of reassigning existing process and procedures to the SMO. However, these processes
then need to be refined to ensure consistency with the vision of the office, and eliminate
redundancy with other functions in the IT organization.
6. Establish a communications plan. Inform the rest of the enterprise (and your own department)
what the roles and responsibilities of the office will be, and the impact on provision of IT services.
Good internal marketing is the key to success in properly communicating the SMOs vision and
policies. Most important: it must be clear that the SMO is an enabler of IT services, not a gate
keeper or barrier to these services.
7. Develop metrics. Its impossible to quantify SMO success, or areas for improvement, without
metrics and internal customer feedback mechanisms.
8. Commit to continual service improvement. A continual service improvement process gives
managers a framework for actually implementing process changes in areas where improvements
are necessary.
At the end of the day, a Service Management Office should streamline processes and enhance
enterprise efficiencies.

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8 Steps to Implementing a Service Management Office
1. Develop a SMO Vision and Mission
As the organization responsible for inspiring quality, a vision and mission must drive the SMO team
members. This, in turn, will inspire the organization.

Where there is no vision, the people perish
-Proverbs
Before diving in, it is important, however, to understand the difference between a vision and a mission. A
vision shows the long term goal or view of the SMO and is used to define how the SMO will operate or
exist in the environment within which they function or would like to function. A mission defines the purpose
and describes the reason for the SMOs being.
A vision changes as the needs and goals for the
business change, whereas a mission is more
static. For example, the mission of a
pharmaceutical company may be to provide an
economic solution to the costly provision of life
saving drugs. However, over the course of the
companys lifetime, while this mission may remain
at its core the company may have numerous
visions that are determined by their customer
base, desire to grow and outside influences:
Vision 1 (Customers) To be the number one
choice for lifesaving drugs by clinics and hospitals
throughout the United States within the next three
years.
Vision 2 (Growth) To support missions and clinics
in third world countries by providing economic, yet
clicincally proven, solutions to pharmaceutical challenges.
Vision 3 (Outside Influences) To help our customers cost effectively provide lifesaving medication in
todays challenging economic climate.
The SMO vision should be created with the requirements of your customer base in mind. You should also
consider any organizational development i.e. strategy, immediate or long term, and any external factors that
may influence the SMOs role. The SMO should also determine how frequently to review the vision, based
on organizational dynamics.
A well defined vision statement can help provide:
Direction
Motivation
Action
Stimulation

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2. Create a SMO Charter

The purpose of the SMO charter is to define the scope, objectives and participants of the SMO. It provides
an initial guide that outlines why the SMO has been created including its purpose, areas of influence and
governance, overall role in the organization and level of authority.
A crucial component of the charter is a business case. This provides the justification and value proposition
for the existence of the SMO.
The SMO charter is typically a short
document that is supported by more
comprehensive documents such as those
that detail roles and responsibilities, metrics,
policy and process creation etc.
The charter should be broad enough that it
can remain unchanged as the SMO evolves.
It can also act as an anchor throughout the
life of the SMO, providing them with a focus
point for discussions and disputes.
As a communication tool, it plays an
important role, as it can be used to help sell
the SMO to the rest of IT and, more
importantly, to the business.
The charter must have an executive sponsor, ideally the CIO. The role of the SMO sponsor is outlined in
section 3. Define SMO Roles and Responsibilities.
Typical contents of a SMO Charter:
SMO Definition
Purpose of the SMO including a business case
SMO vision and mission
SMO scope
SMO objectives
SMO team and a brief description of each role






Photo: Art Es Anna

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3. Define SMO Roles and Responsibilities

Its critical to develop clarity regarding roles within the SMO. Well-defined leadership structures and
reporting relationships will be of great help in seamlessly integrating the SMO into the hierarchy of the IT
organization. Cross-functional and supporting roles must also be defined.
Consider writing an expectations document for all SMO members, regardless of role. This document or
simple list will set the tone and expectations for the teamwork that must occur in order for the Service
Management Office to thrive.
Example: Role of an SMO Team Member
Understand the strategic implications of any process implemented
Appreciate the significance of a process for all major stakeholders and ensure the interests of those
stakeholders are well represented
Have a broad understanding of the challenges the customer organization may face in adopting any
of the processes
Ensure the process meets and continues to meet business requirements
Assist with conflict resolution around process priority and the resources allocated for each process
Provide guidance to process managers and users of
the process
Consider and review any ideas for process
improvement
Submit ideas for process improvement
Ensure processes are being adhered to and that
corrective action is taken where necessary
Ensure the purpose and need for both the SMO and
the processes are well communicated throughout the
organization
Ensure the effectiveness and efficiency of the
processes are reported to the SMO and executive
management


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SUGGESTED ROLES

ROLE DESCRIPTION
SMO Sponsor
The SMO sponsor is an executive level role and acts
as the figure head of the SMO, rather like the chairman
of a board of directors. The SMO Sponsor is not
usually involved in the day to day running of the SMO,
and, instead, focuses on championing the SMO and
helping to obtain financial support (budget). Also acts
as an escalation point for disputes and problems. The
SMO Sponsor can provide valuable input for the
business case (see SMO Charter) and can help
actively promote the SMO.
SMO Director
The SMO Director will chair the SMO and has the
overall responsibility for the Service Management
Program by ensuring that best practice is adopted and
sustained throughout the organization. Accountable for
the success of Service Management in the
organization.
Process and Function Owners for all
processes and functions implemented
in your organization. Examples include
but are not limited to:
Service Level Management
Incident Management /Service
Desk
Financial Management
Change Management
Problem Management

A process/function owner is accountable for ensuring
that a process is being performed according to the
agreed and documented process and is meeting the
aims of the process definition. Each process owner is
responsible for working with the process managers to
define and gather the KPIs for associated area of
responsibility, as well as ensuring any process
improvements identified by the committee are
implemented.
Process Managers for all processes
implemented in your organization.
Examples include but are not limited
to:
Service Level Management
Incident Management
/Service Desk
Financial Management
Change Management
Problem Management

A process manager is responsible for the day to day
management of a process. Should ensure the specific
process activities are being performed correctly across
the organization. Works closely with the process
owners to define and gather the KPIs for area of
responsibility. Audits the process on a basis agreed
with the SMO and should audit for compliance,
effectiveness and efficiency. Provides regular updates
to the SMO on the success of the process.


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4. Determine Which Processes to Implement

To get full benefit from IT Service Management, all of the processes should, ideally, be moved into
operation together. However, for the majority of organizations, this is an impractical approach to take, and is
not best practice. So, how does the SMO determine which processes to implement and in which order?
The first activity the SMO should undertake to help make this determination is to conduct a detailed
assessment. The assessment will help to identify the existence or absence of any key processes, as well as
the strengths and weakness of the organization as a whole. A good assessment can not only provide this
information but it can also provide a detailed roadmap for process implementation and cultural change.
The difficulty comes when determining the type of assessment to use. There are a number of assessments
available ranging from short, inexpensive self-assessments to lengthy, detailed and expensive ones
performed by a third party. Which one to choose is dependent on a number of factors including time and
budget, so evaluate your options carefully. Also consider whether you want a quick check of the vital
statistics or a complete health checkup. Sometimes both may be appropriate. For example, if
management buy-in for a detailed assessment is difficult to achieve, then being able to prove poor vital
statistics can help make the case for a more detailed and complete checkup.
Likewise, during the prioritization of the recommendations, include review by nonIT stakeholders to ensure
that your roadmap is going to take you where you need to go, without unnecesary midcourse corrections.
In our experience, quicker benefits can be gained by starting with Incident Management, Problem
Management, Change Management, Release Management and Configuration Management. The pain felt
by both the business and IT if these processes are not working properly is often acute. When looking for
health improvement it makes sense to focus on the most painful areas first.
Steps to determine which processes to implement first:
Carry out an assessment of both the processes and the effectiveness of the IT organization in its
support of the business
Do gap analysis on assessment findings
Create set of recommendations based on assessment findings
Prioritize recommendations
Create implementation roadmap



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5. Create Actionable Policies, Processes and Procedures
Many of the functions of an SMO are likely being handled by other work groups within the IT organization.
In many cases, it will simply be a matter of reassigning existing process and procedures to the SMO.
However, these processes then need to be refined to ensure consistency with the vision of the office, and
eliminate redundancy with other functions in the IT organization.
Honesty is the best policy.
-Benjamin Franklin

A policy is a document that outlines specific requirements or management intentions that must be followed.
With regards to ITSM, policies are usually process specific, covering a single service management area.
For example, a Change Management Policy would cover the rules and requirements on changes within the
IT environment. Do not overlook the requirement to create and use a policy for Service Management itself.
Policies are used to ensure consistency. Generally a policy contains the following:

General: Description, purpose, owner, version, creation/effective date and the last review date
Scope
The policy itself
List of people that reviewed and approved the policy

A process is a document that shows a set of activities with the inputs that initiate each activity and the
outputs generated from those activities. A visual representation (process map) is usually generated to show
the following:

Who is responsible for each activity, via swim lanes
The triggers that would call for the initiation of the process
Defined inputs
The activities/procedures that make up the process
Defined and measurable outputs
Associated governance points where control, regulatory or accepted standards compliance is
monitored

A procedure is document that shows the steps for an activity and feeds into the process.

If a governance department already exists within your organization then the SMO should work closely with
this department and take advantage of their experience, knowledge and skill. They can act as a Subject
Matter Experts (SME) providing assistance regarding content, look and feel of process and SMO
documentation or they may actually be the central control point for ITSM documentation ensuring the
inclusion of all pertinent governance elements.


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6. Establish a Communications Plan
Good bilaterial communiation is the key to easing any type of organizational change. Following, well
outline the importance of strong communication of key points when adopting a SMO, however, without
abundant opportunities to listen to your stakeholders, your outbound messaging will fall on deaf ears.
Good internal marketing is the key to properly communicating the SMOs vision and policies. Inform the rest
of the enterprise (and your own department) why the organization has been created, what the roles and
responsibilities of the office will be, and the impact on provision
of IT services. Most importantly, it must be clear that the SMO
is an enabler of IT services, not a gatekeeper or barrier to these
services.
For the SMO to reach its goals, a certain amount of cultural and
operational change will be required. Change can only succeed
with the correct use of frequent and appropriate
communication; without it, rumor and uncertainty will be most
likely ensue. When people dont know why, they often make
up their own truths. This often creates fear, uncertainty and
doubt. Communication and messaging will avoid employees'
anxieties and will also aid in getting them to support the
initiative.







Communication is not a
one-time event.
Its an ongoing campaign.


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THE COMMUNICATION PLAN
A well-planned and executed communication plan can
help avoid resistance and can even build enough
grass-roots enthusiasm to get much of the
organizations staff contributing to a successful SMO
implementation.
Your communication plan should:
Outline an awareness campaign.
Identify key stakeholders.
Determine the communication objectives for
each group of stakeholders.
Determine a communication strategy for each
group of stakeholders.
Determine the best communication approach
and medium (face to face, email, newsletter
etc.) for each group of stakeholders.
Determine the best time to communicate to each group of stakeholders.
Communicate to each group of stakeholders.
Build a momentum stategy to keep the communication going.
As mentioned earlier, listening is a critical part of the communication plan. Make sure you
incorporate ways to hear your customers. You must create a dialogue with stakeholders, and not fall
into the trap of only TELLING. Inbound communication tips:
Be frequent and ongoing. Dont ask for input once and then stop.
Give opportunities for stakeholders to give input regarding changes.
Give opportunities to provide input in a format that works for your organization. For many of our
customers, facilitated workshops have worked
nicely. Perhaps, suggestion boxes or contests
promoting feedback work better for your team.
Listen more than you tell.

TIP: When determining how to communicate to a particular
group of stakeholders it is beneficial to have a
representative from that group as be part of your team.



GOAL
Right Information to the
Right People at the
Right Time in the
Right Format using the
Right Medium


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7. Develop Metrics
Its impossible to quantify SMO success, or areas for improvement, without metrics and internal customer
feedback mechanisms.
Metrics tell you where you are, in relation to success or failure, and can
direct you to those areas that need improvement.
Before beginning any form of improvement it is important to establish a
baseline or starting point for later comparison. This can be difficult if
the capability for measurement does not yet exist, however the
outcome of the assessment should provide the SMO with a good
starting baseline until metric capabilities are developed.
The metrics should be products of the SMO vision. Remember that
this vision demonstrates the objectives of the SMO so the metrics
should be used to show how well they are doing in reaching their
goals.
Both the vision and SMO charter are based on business requirements;
therefore the measurements should show how well the SMO is doing
in meeting these needs.
Metrics must be quantifiable.
We often see the mistake of using qualitative rather than quantitative
data as a measurement. There is a big difference between the two, for
example if we were to measure beer:





Use quantitative measurements, as these are not open for interpretation.

WHY MEASURE?
To validate
To justify
To give direction
To intervene

BEER MEASUREMENTS
QUANTITATIVE QUALITATIVE
Amount e.g. 1 pint
Temperature e.g. 45 F
Price e.g. $4
Nice hop smell
Cold
Expensive

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METRIC GUIDELINES
Only use metrics that you can actually report.
Dont create too many metrics to start. Keep them to a minimum; five or six balanced key metrics
should suffice. You can add more as your capability and maturity grow.
Metrics should be reported on in regular intervals: weekly, monthly, quarterly, etc. The SMO should
determine the frequency upfront.
Stakeholders should be involved in deciding the content and visual presentation of any metrics that
will be presented to them for their use and benefit.
Post the reports in a location accessible to the stakeholders.
Stakeholders should review the metrics on regular intervals.
There should be a documented management response to the reported metrics.

Remember, the business is typically not interested in metrics, but rather information it can use decisively.
Therefore, use metrics that yield measures in a way that effectively shows the business the value of SMOs
and ITSMs capability to support it.
BUSINESS LANGUAGE SAMPLE METRICS
Reduce costs
Improve customer service
Increase output
Build competitive advantage
Address/meet customer requirements
Meeting/supporting strategic goals
Financial (Revenue, Cost, Margin, etc.)
Business volume
Customer satisfaction
End user response time
Productivity



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8. Commit to CSI

While setting up a SMO may be a one-time event, managing the SMO and ensuring it continues to support
the business goals and objectives is an ongoing journeythat requires the development of a culture of
Continual Service Improvement (CSI).

A well-designed and well-managed SMO will ensure the services and processes continue to meet the
businesss dynamic and sometimes volatile needs and requirements.
The only thing constant in life is change
-Franois de la Rochefoucauld (1613-1680), French author

WHY DOES CHANGE HAPPEN?

When change occurs in Service Management, it typically happens for one of three reasons:
1. change in business requirements
2. change in technology
3. external influence such as legislation regulation or evironment


It is also the SMOs responsibility to design the SMO and all processes in such a way that it is relatively
easy to adjust to needed changes. To ensure this agility, the SMO should be built so that it:

Is aware of relevant changes.
Is easily adjustable in order to appropriately
maximize business benefits.
Has the authority to ensure a managed response.
Ensures that all aspects of a change are considered
effectively and efficiently.
Minimizes the effect upon the business and IT when
responding to such changes.




The quality of a service, process or the SMO itself is
measured by determining how well the services meet
your customers expectations. As these expectations
change or improvements are realized, the SMO must
ensure that metrics and measurements are reviewed,
both to show evidence of the improvements, as well as to ensure that the correct metrics and
measurements are in place.



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CSI CONSIDERATIONS

Continual Service Improvement has no end. CSI is not a crash diet it. Its a
culture. If you become complacent after arriving at a given level of improvement
you will soon be passed by competing service providers. Be proactive and look
for ways in which you can make a difference to the success of your organization.

Here are some important items to remember as you move along this path:

Accountability - Foster accountability for CSI throughout your organization from
the CEO down to the people who clean the building. Everyone has a part to play
in your companys success. It cannot fall on the shoulders of one or two
individuals. Where appropriate, make use of tools such RACI (responsibility)
charts to help achieve this goal.

Morale Employee satisfaction and morale are huge success factors for
achieving a CSI culture. Keep your morale high by having clear roles and
responsibilities, communicating and celebrating achievements and creating
opportunities to contribute ideas and recommendations for improvement.

Compliance A level of control needs to be created around the delivery of
services and the processes that support them. This does not mean bureaucracy,
but it does mean that a level of discipline is necessary to ensure the agreed level
of quality is maintained. Compliance is about acting responsibly and it legitimizes
results through the application of standards. When a standard approach is taken, it is far easier to
predict and manage outcomes.

Tolerance to change and risk Different organizations have different tolerance for change and risk, based
on the characteristics of their market space and that of their customers. Some are required by the business
to make quick changes but manage incremental improvements later, providing a high level of redundancy to
ensure quality. Others have a less urgent need for change and take a more conservative and possibly cost
efficient approach to improvement. The SMO must be in tune with these aspects and manage to them.

CSI is such a crucial part of Service Management that you may want to go beyond the SMO and create a
separate CSI team that is made up of some SMO members as well as members of other groups, including
customers and users. This team would liaise between these groups and provide an end to end perspective.

Have some level of effort focused on continually improving. Remember that Volatire once wrote, Perfect is
the enemy of good. True.
Youll never be finished, because your organization is constantly changing. Be proactive and look for ways
in which you can make a difference to the success of your organization. Youll be glad you did. Its worth
the effort.


Tip
In order to foster ongoing
improvement, consider achieving
an ISO/IEC 20000 certification for
one or more of your IT services.
This standard contains an ongoing
Continual Service Improvement
requirement which will force your
organization to be committed to
improved quality.


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Get Started

Whatever your approach, and regardless of any limitations, make sure you establish some form of
organized Service Management. Know where you want to go as a service provider. Draw a line in the sand
and move forward, one step at a time.

Are you ready to get started? Here are some additional resources for you.

PLEXENT BLOG
Be sure to subscribe to our blog, as we regularly publish tips and articles regarding SMO adoption.

COMPLIMENTARY SMO STARTUP CONSULTATION
We are happy to offer a one hour complimentary Service Management Office (SMO) consultation to
help you get started.

SMO J UMPSTART WORKSHOP
Ready to commit to quality in your IT services by building a Service Management Office? Schedule a SMO
Jumpstart Workshop. This one and a half day workshop will help you:
Energize your team by building a common vision for your Service Management Office.
Create your SMO charter.
Get a jumpstart on defining your Service Management Office organizational chart.
Increase the organization's confidence by creating a clear roadmap for SMO adoption.

Weve seen successful Service Management Offices in operation and we know you can do it, too. Best of
luck on your quest for improvement.

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ABOUT PLEXENT

IT improvement & simplification. We arm you to
justify IT to the business.
We are rock stars at:
IT measurement and reporting.
ITIL training, Cloud Computing training, ISO
20000 training.
IT improvement consulting.
With strengths in IT service management, ITIL, IT
Governance & Compliance, ISO Standards, COBIT,
CMMI, software selection and Project Management,
we arm IT to drive, motivate and guide the business.
iRunIT is the industrys first business value
dashboard software.




We will get you to the finish line of IT improvements
in significantly less time for a fraction of the cost.
Plexent lives in Dallas and works globally. For more
information, please call +1.972.381.0077 or visit
www.plexent.com.
Plexent Headquarters
16479 Dallas Parkway, Suite 140
Addison, Texas 75001
Phone: +1.972.381.0077
Fax: +1.972.381.8150
Web: www.plexent.com
E-mail: info@plexent.com
Twitter @plexent.com



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