Transformational alignment to IT service management
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In this case study, WGroup helps a Fortune-500 healthcare firm transform their IT organization and cut costs. WGroup was contacted to reduce service costs and aligning the organization to an ITSM based service model. WGroup used the ITIL framework to determine service delivery alignment across suppliers, level of process maturity, and the alignment of internal resources against services in the portfolio.
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Transformational alignment to IT service management
- 1. Opportunity The IT organization of a major healthcare firm had recently restructured several key long-term service contracts that drove the need to reevaluate the service delivery model and reexamine how the organization should realign internal resources. Restructuring long-term service contracts included technology, process and scope changes that required an organizational modernization effort to realign all suppliers in the delivery model. WGroup was engaged to assess the organizations’ assets and to define a transformational plan that would streamline the organization toward a more service-oriented delivery model.The goal was to provide answers to the following questions: • What is the right level of retained resources required to support the portfolio of outsourced services? • What opportunities exist to streamline service delivery and costs? Are there any redundancies or gaps in the service delivery model? • Do we have the right service model and organization in place? • Are we structured to scale, adapt and improve our speed to market? These questions cannot be answered easily using industry averages, benchmarks, or industry rules of thumb. WGroup’s point of view is that industry estimates are insufficient benchmarks because each organization has its own unique culture and challenges. In addition, supplier relationships, variation in scope of services, and highly automated operations can significantly distort averages. WGroup’s proprietary approach involves a rigorous analysis of the client’s service delivery model and processes along with a comprehensive assessment of all organizational assets. Approach WGroup used the ITIL framework to determine service delivery alignment across suppliers, level of process maturity, and the alignment of internal resources against services in the portfolio. Based on an adaptable, fact-based approach WGroup was able to deliver an objective analysis and a detailed process-oriented recommendation for transformational change based on multiple inputs.The analysis outlined how the organization is currently delivering individual services, process gaps or redundancies, non-valued work tasks, staffing adjustment opportunities, recommendations, and a specific road map to implement transformational change. Drive Your Business Transformational Alignment to IT Service Management Healthcare | IT Service Management (ITSM) 1 The client contacted WGroup – experts in IT, outsourcing, and service management–for help meeting the challenge of reducing service costs and aligning the organization to an ITSM based service model. WGroup helps Fortune-500 healthcare firm transform their IT organization and cut costs
- 2. 2 Insights & Advice When there are changes to the services portfolio—whether it be adding a new service, changing the supplier delivery model or changes to the organization—the service delivery model should be assessed and addressed as part of change management. If not addressed, missed adjustments could create service delivery inefficiencies including incremental cost and compromised service quality. Over time this could create a compound effect that ends up creating more challenges for the organization and a cycle that burdens the service delivery resources. Service governance is critical to maintain the integrity of service delivery and needs to consider all contributing suppliers including internal suppliers to ensure all suppliers are performing to the expected scope and service level agreements. Good service management and governance enables discipline that is essential to drive service improvement and improvements in customer satisfaction. Having a well-defined service model and related processes allows the organization to apply meaningful service metrics and analytics that provide insight into understanding the true cost of delivering services. Overall, having a services portfolio with a well-defined set of services enables the organization to manage the services lifecycle effectively. Having the discipline to manage and maintain the process framework provides the organization with a foundation to scale, adapt, and add IT value to business processes. WGroup Service-Based Analysis Healthcare “Adopting an ITIL-based service management model and aligning the organization’s resources to it allows for better management control and the ability to standardize service delivery.” Rick Letourneau Principal, WGroup
- 3. IT Service Management Value Delivered Through this process, WGroup was able to provide objective insight and a set of meaningful recommendations, along with a transformational roadmap. The roadmap supported the organization’s objectives to improve service delivery quality and to reduce service cost. It is expected that a 25% reduction of service delivery costs will be realized, along with organizational improvements that will support a more efficient service delivery model. Contact Us WGroup 301 Lindenwood Drive, Suite 301 Malvern, PA 19355 610-854-2700 About WGroup Founded in 1995, WGroup is a boutique management consulting firm that provides Strategy, Management and Execution Services to optimize business performance, minimize cost and create value. Our consultants have years of experience, both as industry executives and trusted advisors, to help clients think through complicated and pressing challenges to drive their business forward. For more information on WGroup, visit http://thinkwgroup.com Copyright © 2015 WGroup. All Rights Reserved. Tower-centric service delivery organizations tend not to have a service-oriented view of delivering end-to-end services. Most “tower owners” view their service responsibilities at the point of where their assignment begins and ends. When service integration between towers and suppliers is not clearly defined, there is a need to apply incremental resources to fill in the process gaps, and in many cases this creates redundancies and incremental service cost. Adopting an ITIL-based service management model and aligning the organization’s resources to it allows for better management control and the ability to standardize service delivery.