Service Matters! ITSM & IT Management: “Process” for “Strategy Generation”?

One of the complex areas to assess from ITIL v3 is “Strategy Generation”. In more than a couple of ITIL v3 assessments I have conducted, I have always found it difficult to ascertain whether a process for Strategy Generation exists or is followed in an organization. What does one look for, as evidence of Strategy Generation? Should there be AND more importantly is there a need for a defined and consistent process for Strategy Generation for an IT organization?

The Service Strategy lifecycle stage in ITIL v3 elaborates on four key elements – Strategy Generation, Service Portfolio Management, Financial Management and Demand Management. While the later three seem quite easy to gauge, the first one is difficult to assess and recommend. The suggested method is 4P Analysis Method (Perspectives, Position, Plan, Patterns).

Strategy is one area which is by nature very dynamic and esoteric. It may need one OR more than one ways to articulate Strategy for an organization. In such a scenario, is it advisable to make only one method (say the 4P analysis of ITIL v3) as a mandate to define the Service Strategy?

What should one look for to check if there exists a process for Strategy Generation? Almost all organizations would have a Service Strategy. But, most organization may not really follow any particular method or technique for strategy such as the 4P Analysis defined in ITIL v3. Does that warrant making an observation that the Strategy Generation process or method is non-existing?

I am sure many must be sharing the same predicament as me. So how do we resolve this?

My opinion inclines towards having some simple steps defined for Strategy Generation with guidelines and templates – which may be used to define and /or update the Service Strategy every year. If an organization is following a particular format or technique to map its strategy, it should be given credit for it and be counted as complying with “Strategy Generation” practices in principle.

Some of the objects through which the Strategy may be visible are – the mission, vision statements for IT, the IT planning and budgeting documents, the IT strategy document (if it exists), etc. There are many Strategy Tools which are available in the industry such as Strategy Maps, Policy Objective Matrix, Balanced Scorecard (BSC), etc. Should their usage be considered as “Satisfactory” as per ITIL v3 Service Strategy?

I would say “Yes”.

Strategy is one area which most organizations will be having a gap vis-à-vis ITIL v3. Typical outputs of a sound Service Strategy process would be (inputs to) the Services Portfolio, a Strategic Plan over a longer term which would be a basis for tactical planning (capacity, availability, resources, support, etc.), futuristic direction that the Service organization is moving towards and such strategic details.

I find it slightly paradoxical to have a “Process” defined for something as dynamic and wide as “Strategy Generation”. Envision recommending your senior management to define a process for Service Strategy which they need to follow as a mandate. In one instance I recall, there was a strong debate with Senior Management team questioning the utility of having a defined “Process” for “Strategy Generation”.

Have you experienced similar confusion over how and what to look for in a “Process” for “Strategy Generation”? I would like to invite people to share their views and experiences on Strategy Generation practices.

Comments

One of the Strategy generation tools I used was as simple as the "resource-based view" beginning with VRIN principles. Sometimes you need to discount it with external determination of resource's value. There are many other tools. However, the application depends on specific circumstance.

The notion of "complying" is a false metaphor. ITIL is a set of best practices. As I learnt from the strategy author at CMU while he was authoring ITIL v3, he clarified that he and his fellow authors were not building a compliance-based system; but they were upt o a compendium of best practices. David Canon, another author, clarified that best practices are constantly evolving and that the moment ITIL v3 is released, it will be obsolete as someone else may have discovered a better practice.

Strategy generation need not be a process but can be a practice. It can be a process in environments which are averse to uncertainty - for instance, government.

Strategy is neither esoteric nor as challenging unless one has a bias to think about it in that direction. It is as simple as the ITIL authors for strategy put it - "differentiate on the outside and simplify on the inside"

Posted by: Manik Patil | June 22, 2008 2:43 PM