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Process Frameworks: Help or Hindrance?
Do process frameworks such as ITIL, Six Sigma and Lean deliver in the context of services outsourcing? A look at the challenges and opportunities in making them work
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Frameworks are meant to simplify complex processes and make them more efficient. But processes themselves are so dynamic that it forces one to revisit the framework and readapt it to use. If you add outsourcing to that, the complexity increases much more. Therefore, to keep up with this change and manage the complexity, training programs in organizations are a fine mix of standardized frameworks and need-based concepts.

Most of these frameworks such as IT Infrastructure Library (ITIL), Six Sigma and Lean help customers as well as service providers in getting rid of the waste in the process, explained Derek Lonsdale, Managing Consultant-IT Practice, PA Consulting. In some cases, they help the customers in understanding what part of the process to outsource. Agreeing with Lonsdale’s point of view, Mudit Saxsena, SVP and Global Six Sigma and Transitions Leader, Genpact added, “These frameworks help in assessment of data and identification of the waste in the processes to increase the overall efficiency of the processes.”

While Six Sigma and Lean are generic frameworks borrowed from the manufacturing world, and can be used in outsourcing any kind of process, ITIL is more IT-focused, and can be used in any IT process. The trend over the past few years has been such that many providers have come out with their proprietary frameworks, in which they pick up best practices from the existing standard frameworks.

Case Study - I
Change Management / ITIL

Customer: A global chemical company

Provider: IBM
A global chemical company outsourced its IT infrastructure to IBM to improve end-user IT services. ITIL standards were chosen as the means to standardize the IT infrastructure across providers.

Challenge:
After a year into the contract, the infrastructure-
service levels failed to improve as intended, and IBM’s account team investigated the issue. The main cause was determined to be the number of emergency changes that the customer approved. IBM initiated a Change Management Improvement “
Team consisting of members of the CAB (Change Advisory Board), the IBM Change Coordinator and a Process Specialist.

Solution:
The ITIL change process was used as a guide to determine gaps in the current change management process. The team determined that the normal change cycle time was too long, and that the project managers had not been trained on the change process when implementing software changes.

Results:

  • The cycle times for non-emergency changes within the customer’s process were examined and restructured. By using Lean to eliminate waste, the cycle times were greatly reduced so fewer emergency changes were requested 
  • Through the implementation of a more thorough change form template, the change process improved. So the customer’s CAB had better information at the start of their process, thereby reducing the time it took to ask additional questions 
  • By providing project managers with training and a calendar to use for advanced scheduling, the number of emergency changes were cut in half after three months
  • Due to the improvements in change management, the overall stability of the IT environment increased and end-user satisfaction improved.
Challenges in Adopting Frameworks

These frameworks are all organization driven and require an effort to ensure that the employees take them seriously. “At IBA, we have optimized the procedures of incorporating and deploying the frameworks, and are carried out through the implementation of an automated project-management system here. We also organize trainings of software developers and regular auditing of the employees to test the process understanding,” explained Zinaida Larionova, Top Management Quality Representative, IBA, an IT service provider based in Eastern Europe.

Apart from ensuring that frameworks are well understood, the challenge also lies in the seamless integration of the customized framework into the existing one. “Many of these processes are being performed in some form or fashion in the customers’ environment before they begin to adopt ITIL standards. The challenge they face is in adapting their current processes to take advantage of the standards and to deploy the standards for those processes that are absent. With the proper sponsorship and investment, incorporating the processes isn’t difficult. Without that sponsorship and investment, it’s next to impossible to be successful,” explained Kevin Smilie, Director, Chief Information Officer-Services, TPI, a sourcing advisory firm.

Training is another challenge that many firms face. “The ITIL framework has five modules and each of which is around 250 pages long so for an employee to read through over 1,000 pages of information becomes a challenge. So here at PA Consulting, we modify the frameworks as per the process requirements so that the employees can relate to it and understand it better,” added PA Consulting’s Lonsdale.
“Incorporating these frameworks at the customer site in the customer processes is another challenge,” added Tajinder Vohra, SVP and Business Leader, Genpact. Change management is an integral part of outsourcing and in most of the cases, despite the fact that the work is outsourced to the provider, the customer is expected to have the same level of understanding of the framework as the provider to be able to govern the sourcing relationship better. So, it is the providers’ responsibility to ensure that the people involved in the sourcing process from the customer side are on the same page. Herein, conducting regular training sessions would help.

 
InfrastruCture model

This infrastructure model shows a set of end-to-end integrated services that are focused on maximizing efficiency and effectiveness whilst minimizing risk. These include:

  • An integarted portfolio of end-to-end security services for optimum protection
  • End-to-end service management that helps improve the customer experience.

 

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by sonia kumar on 9/16/2008 12:56:50 AM
Process Frameworks: Help or Hindrance
 

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