IT1722

Service Management Guiding Principles creation of value. Opportunity and demand are always entering
into the system, but the organization does not automatically
• The Service Value System (SVS) describes how all the accept all opportunities or satisfy all demand.
components and activities of the organization work together as • A guiding principle is a recommendation that guides an
a system to enable value creation. Each organization’s SVS has organization in all circumstances, regardless of changes in its
interfaces with other organizations, forming an ecosystem that goals, strategies, type of work, or management structure. A
can, in turn, facilitate value for those organizations, their guiding principle is universal and enduring
customers, and other stakeholders • The guiding principles embody the core messages of service
• The following are the two (2) key inputs of the service value management in general, supporting successful actions and good
system: decisions of all types and at all levels. They can be used to guide
o Opportunities represent options or possibilities to add organizations in their work as they adopt a service management
value for stakeholders or otherwise improve the approach and adapt ITIL guidance to their own specific needs
organization and circumstances. The guiding principles encourage and
o Demand is the need or desire for products and services support organizations in continual improvement at all levels.
among internal and external consumers • Focus on value - This section is mostly focused on the creation
• The purpose of the SVS is to ensure that the organization of value for service consumers. However, a service also
continually co-creates value with all stakeholders through the contributes to value for the organization and other stakeholders.
use and management of products and services. The structure of This value may come in various forms, such as revenue,
the SVS is shown in Figure 1. The left side of the figure shows customer loyalty, lower cost, or growth opportunities. The
opportunity and demand feeding into the SVS from both internal following recommendations can be adapted to address various
and external sources. The right side shows the value created for stakeholder groups and the value that is created for them by the
the organization, its customers, and other stakeholders. organization
o Who is the service consumer? - When focusing on
value, the first step is to know who is being served. In
each situation, the service provider must, therefore,
determine who the service consumer is and who the key
stakeholders are (for example, customers, users, or
sponsors)
o The consumer’s perspectives of value - Next, the
service provider must understand what value to the
service consumer is. The service provider needs to
know why the consumer uses the services.
o Customer Experience - An important element of value
is the experience that service consumers have when
interacting with the service and the service provider.
This is frequently called customer experience (CX) or
user experience (UX).
Figure 1. The service value system • Start where you are - In the process of eliminating old,
• Opportunity, demand, and value - Opportunity and demand unsuccessful methods or services and creating something
trigger activities within the SVS, and these activities lead to the better, there can be great temptation to remove what has been
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 IT1722

done in the past and build something completely new. This is better than isolated work, which is frequently referred to as ‘silo
rarely necessary, or a wise decision. This approach can be activity’. Silos can occur through the behavior of individuals and
extremely wasteful, not only in terms of time, but also in terms of teams, but also through structural causes. Applying the guiding
the loss of existing services, processes, people, and tools that principle of thinking and working holistically can help
could have significant value in the improvement effort. Do not organizations break down barriers between silos of work.
start over without first considering what is already available to be • Think and work holistically - Taking a holistic approach to
leveraged service management includes establishing an understanding of
o Assess where you are - Services and methods already how all the parts of an organization work together in an
in place should be measured and/or observed directly to integrated way. It requires end-to-end visibility of how demand is
properly understand their current state and what can be captured and translated into outcomes.
re-used from them. Within organizations, there is • Keep it simple and practical - Trying to provide a solution for
frequently a discrepancy between reports and reality. every exception will often lead to over-complication. When
This is due to the difficulty of accurately measuring creating a process or a service, designers need to think about
certain data, or the unintentional bias or distortion of exceptions, but they cannot cover them all. Instead, rules should
data produced through reports. Getting data from the be designed that can be used to handle exceptions generally.
source helps to avoid assumptions that can be o Judging what to keep - When designing or improving
disastrous to timelines, budgets, and the quality of service management, it is better to start with an
results if proven to be unfounded. uncomplicated approach and then carefully add
o The role of measurement - The use of measurement is controls, activities, or metrics when it is seen that they
important to this principle. However, it should support are truly needed. Critical to keeping service
but not replace what is observed, as over-reliance on management simple and practical is understanding
data analytics and reporting can unintentionally exactly how something contributes to value creation.
introduce biases and risks in decision-making. • Optimize and automate - Optimization means to make
• Progress iteratively with feedback - Resist the temptation to something as effective and useful as it needs to be. Before an
do everything at once. Even huge initiatives must be activity can be effectively automated, it should be optimized to
accomplished iteratively. By organizing work into smaller, whatever degree is possible and reasonable. It is essential that
manageable sections that can be executed and completed in a limits are set on optimizing services and practices, as they exist
timely manner, the focus on each effort will be sharper and within a set of constraints that may include financial limitations,
easier to maintain compliance requirements, time constraints, and resource
o The role of feedback - While the iteration is being availability.
undertaken, circumstances can change, and new • Principle interaction - Organizations should not use just one or
priorities can arise, and the need for the iteration may be two of the principles but should consider the relevance of each
altered or even eliminated. Seeking and using feedback of them and how they apply together. Not all principles will be
before, throughout, and after each iteration will ensure critical in every situation, but they should all be reviewed on each
that actions are focused and appropriate, even in occasion to determine how appropriate they are.
changing circumstances.
• Collaborate and promote visibility - Creative solutions, References:
enthusiastic contributions, and important perspectives can be
Axelos (2019). ITIL foundation, ITIL 4 edition. Norwich: The Stationery Office.
obtained from unexpected sources, so inclusion is generally a ClydeBank Technology. ITSM quickstart guide: The simplified beginner's guide to IT
better policy than exclusion. Cooperation and collaboration are service management. Albany: ClydeBank Media LLC.

03 Handout 1 *Property of STI