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Monthly Archives: March 2016

Surviving Change: 12 Organisation Transformation Principles to Help You Cope

Craig SavageBy Craig Savage:

Change Organisation TransformationIn my role as an Operations Transformation Architect, I get the privilege of working with many different organisations in many different markets and geographies, and as our team are closely knit, we share a lot of knowledge and experience amongst ourselves and globally after each engagement we undertake. What follows are some of the key principles that we believe can and should be applied across all the large IT organisation transformation projects we see.

  1. Understand that transformation is EXPENSIVE – in terms of time, money and emotional energy.
    1. Time – any cultural change will take time, traditions need to be re-made, new balance created (many times) and new roles will take time to settle.
    2. Money – your people will need to gain new skills and competencies; you will also need to reflect on your compensation model.
    3. Emotional energy – Some people thrive on change, others find it very hard work so being aware of how the process is affecting your people and making sure you keep everyone is engaged is crucial.
  2. Realize that every transformation journey is different – there is no “one size fits all” as every company has a different culture and a different diversity in their people, as well as a uniquely evolved process framework to take into account. That said, there are a lot of common elements, that if treated similarly to architectural building blocks, can be re-used
  3. Culture change must be a primary priority and must be led top down. Realistically assess your current culture before beginning – decide what to keep, what needs to be transformed and what will have to be scrapped. Get outside help!
  4. There is a great deal of value in structuring the programme effectively – it really needs to be about constant, small and iterative changes that drive towards a larger goal. One huge project with fixed milestones generally runs into issues, whereas a programme with a clearly defined end state, with multiple smaller, short projects or a more Agile-esk sprint structure will deliver earlier realised outcomes at lower cost.
  5. You will need to change the way you recognise and reward your people – people management and the skills of acquiring and retaining the right people will become increasingly valuable. Keep the management structure focused on performance, development and reward management, managers should be mentors and coaches. Doing this allows for people to hold different roles in different teams without the artificial tribal boundaries that tend to arise in the older models.
  6. Be transparent about the changes taking place – people will be uncertain anyway, and we have seen countless times how destructive rumours can be, whereas every time we have seen openness and clear communication we have seen a far easier transformation journey. Be mindful that local laws, unions, etc. can often inhibit this, so sometimes you will need to be creative in order to keep your people informed and engaged without exposing your company to additional risk.
  7. You will likely need to increase headcount while you transform, unless your current team are grossly under utilised or your current process model is very inefficient. Get help understanding when and how to flex your teams.
  8. Encourage innovation, value it highly and find ways to make it valuable to yourself and your teams. Encourage people to hold multiple roles, increasing the skills and capability diversity and capacity across your team.
  9. Identify and work with your resistance fighters – they may have a valid concern and they definitely have passion, find a way to make them part of the change.
  10. This may sound terribly obvious – keep your current environment running! Alienating your business by delivering bad (or worse) service now will not help.
  11. Understand you are no longer the sole provider of IT for your organisation, no matter how much may seem to be true, your business will already be taking some IT services from other providers. Work towards becoming the broker of these services and being your organisation’s preferred IT provider.
  12. Technology can only effectively transform an operation when the people that operate it and the processes that they carry out are able to take full advantage of that technology. In our experience, implementing technology and expecting the people and process change to take place organically fails almost every time.

With your people heading in the direction of the new and clearly defined way of working, and your processes being re-written and optimised to deliver on that new vision, your organisation will have started off well.

It’s important to get outside help with this process.  This major change requires someone impartial with the skills and experience to advise you on what is working, what could be done better, what is coming up next and to give you ways they’ve seen other organisations overcome those new challenges.  To leverage our experience, contact your local VMware representative to engage with VMware Advisory and Operations Transformation services.

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Craig Savage is a VMware Operations Transformation Architect and is based in the UK. You can follow @craig_savage on Twitter.

IT Service Strategy: Catalogs and Portals

Insight from the EMC and VMware 2016 State of IT Transformation Report

self-service portalGuest Blogger:
Denise Partlow, Director, Product Marketing Cloud Professional Services, EMC Corporation

IT organizations are experiencing a cultural revolution. CIOs want to run IT like a customer-focused business. They want to empower users with self-service and enable them to make value-based consumption decisions. This means packaging IT services for easy consumption by the business, providing financial transparency through unit-based pricing and billing, and developing processes, roles, and skills to successfully manage the supply and demand side of the portfolio.

As I mentioned in my last blog, EMC and VMware have been doing workshops on IT transformation with our customers for several years now. We recently analyzed the data collected during these workshops. The top gap, identified by all organizations, is their ability to provide and efficiently manage user requests through a service catalog and self-service portal. 80% plan to have a self-service portal and service catalog in place by the 2016-2017 timeframe.

Read more >

EMC, VMware Release ‘State of IT Transformation’ Report

The ‘State of IT Transformation’ report takes a look at more than 660 EMC and VMware enterprise customers across 18 industries, and identifies gaps, progress and goals in their current IT Transformation initiatives.

By focusing on data provided by CIOs and their direct reports who participated in a transformation workshop led by EMC or VMware, this analysis provides deep insight into the biggest goals and challenges for organizations who are actually in the midst of an IT transformation.

The full State of IT Transformation Report (PDF) can be downloaded here.

Where do Organizations Want to Improve Most in 2016?

State of IT TransformationCloud Infrastructure

While more than 90% of organizations are only in the early stages of evaluating a well-engineered hybrid cloud architecture, and 91% of organizations have no organized, consistent means of evaluating workloads for hybrid cloud, 70% want to standardize on a hybrid cloud architecture across the organization within the next two years.

Operating Model

Running IT like a customer-focused business is a high priority for IT organizations, but 88% of companies have not begun, or are only in the preliminary stages of developing skills in business-facing service definition, and only 24% have a well developed service catalog in place.

Organizations recognize that collaboration is key to meeting customer expectations, with 95% of organizations expressing that having no silos and working together to deliver business-focused services at the lowest cost this is critical.  However, less than 4% of organizations reported that they currently operate like this.

Agility is also critical to success.  For over half of the participants it currently takes between a week and a month to provision infrastructure resources.  The goal this year for 77% of participants is to be able to do this in less than a day, or dynamically when needed.

Applications

Accelerating application development is a high priority for CIOs this year.  68% of the organizations surveyd take 6-12 months to complete a new development cycle.  This is likely due to the fact that 82% of the companies currently don’t have a scalable, infrastructure-independent application delivery framework on which to rapidly and consistently build mobile-friendly, cloud-native apps.

How does your organization stack up?

Are you curious about how the results changed by industry, or by geography?  Read the full State of IT Transformation Report to see how your organization compares to your peers.

If you need assistance identifying the gaps in your own organization, and developing a comprehensive strategy and roadmap for moving forward, contact your VMware Advisory Services strategist or your local VMware representative today.

Cloud Services Definition

Part 3 of the Cloud Business Management Series

By Khalid Hakim, Kai Holthaus and Bill Irvine

Services DefinitionIn our last cloud operations business transformation blog, we talked about the cloud business strategy and its importance in formulating the vision and the plan as to how you want to run your cloud as a business. In today’s blog, the focus begins to shift to executing the strategy and laying out the foundations of a service-oriented and business-driven “operating model”.

There is a saying: you can’t manage what you can’t control, and you can’t control what you can’t define.  Imagine that you are planning to open a new business. The first step is to define what services/products you want to offer your consumers and what distinguishes your market value among the others. Similarly, cloud business management starts at this point. IT should identify and define what cloud services would be offered to its consumers in order to truly drive a services-oriented and value-driven organization.

Key Areas of Services Definition

VMware recommends a unique approach for defining cloud services, through which a service owner defines a 360-degree view of how the cloud services would be established, managed and delivered effectively and efficiently to meet or exceed the expected value. To paint this panoramic view, cloud service owners should consider the following areas:

  • Service Overview – describe the service in terms of its purpose, goals, consumers, criticality, availability criteria and rhythm of business.
  • Virtual Service Team – organize your team members around the services you deliver. Team up as a virtual service team.
  • Services Definition ChartService Chart – map out the end-to-end cloud service in a graphical representation that is easy to consume. The service chart helps to visually understand the core components of a service and contributes when costing services.
  • Service Portfolio and Consumer Management – the service portfolio answers the questions, who are our customers and why should they buy the service from us. It contains all of the service categories and the business units that consume them and aids with making informed “service” and “business” based investment decisions.
  • Service Design and Development – provide high level information about how the services will be designed and developed, especially if the service isn’t yet in production. This helps with understanding the customer business need and developing the most valuable solution possible.
  • Service Catalog Management – identify service catalog structure parameters and possible blueprints. Also, define what columns or key fields should be included in service catalog entries.
  • Service Level Management – define key SLA/OLA targets to ensure provisioning time and quality meets specific business needs.
  • Service Desk Management – describe how the service will be supported. Draft a plan for service-desk requirements, skills needed and required knowledge transfer.
  • Proactive Operations Management – define the service operation requirements for support and reliability from the event and performance monitoring to availability, demand, capacity, continuity and security management.
  • Provisioning and Change Management – define the service provisioning lifecycle and associated change management policies including how the service will be pre-approved and auto-provisioned (for maximum efficiency). New leaner change management workflow needs to defined / refined (i.e. standard changes).
  • Service Financial Management – define the service cost and charge back/ show back model along with pricing and connections to the service catalog.
  • Service Performance and KPIs – define any applicable service related strategic, tactical and operational performance indicators (KPIs), and the metrics that will be collected to demonstrate that required performance was achieved. Also define how and when the KPIs and metrics will be reported, and to whom.
  • Service Reviews – define service-based review meetings to discuss and remediate any operational or consumer related topics. Follow a standard cadence for all services. Discuss potential changes in demand for services. Capture new or enhanced service requirements.
  • Service Marketing – define the key applicable service marketing elements for a successful service promotion and value realization within different company cultures.

Now, how long do you think this exercise will take? In most of our engagements, defining a service takes between 1 to 2 weeks. It is never intended to fully document all the areas above immediately, or establish all of the processes, as many organizations don’t have this all of this information available. Think of the Service Definition as a living and breathing document. The service owner should establish a working draft, develop it to the point of release and then maintain in for its life as an active service offering. All undefined services are treated as areas for improvement.

In our next blog, we will take this to the next level as we learn to establish a cloud service-based cost model and cost out cloud services end-to-end.  This will enable you to understand the cost of a unit of a cloud and provide the required level of cost transparency internally and to consumers.

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Khalid Hakim is an IT Business/Financial Management Lead with the VMware Operations Transformation global practice. You can follow him on Twitter @KhalidHakim47.

Kai Holthaus is a Sr. Transformation Consultant with VMware Operations Transformation Services and is based in Oregon.

Bill Irvine is a Principal Strategist with VMware Accelerate Advisory Services and is based in Colorado.

3 Common Mistakes when Breaking Organizational Silos for Cloud and DevOps

Pierre Moncassin-cropOrganizational SilosBy Pierre Moncassin

Every customer’s journey to Cloud, DevOps or other transformative initiatives is unique to an extent.  Yet all those journeys will come across a similar set of challenges.  With the exception of truly green-field projects, each transformation to Cloud/DevOps involves dealing with the weight of legacy – organizational and technical silos that hamper their momentum towards change.

This is why I often hear from customer teams: “We know that we need to break down those silos – but exactly how do you break them?”

Whilst I do not advocate a one-size-fit-all answer, I want to share some recommendations I promote on how to go about breaking those silos – and some mistakes to avoid along the way.

From where do silos come?

As discussed in earlier blogs, silos usually come into existence for valid reasons – at the origin. For example, when infrastructure administration relies on manual and highly specialized skills, it appears to make sense to group the skills together into clusters of deep expertise. Unix gurus, for example, might cluster together, as might Microsoft Windows experts, SQL database specialists and so on.  These are examples of silos teams build around infrastructure skills – experts of all those areas need to align their mode of operation to support cloud infrastructure services.

Other examples of commonly found silos include:

  • Application Development to Operations: DevOps emerged precisely as a way to break down one of the ‘last great silos’ of IT – the persistent gap between the Development teams and Operations teams.
  • Business to IT: When IT becomes so reliant on a specialist set of skills (think mainframe programming) significant inefficiencies arise in cross-training IT staff to business or vice-versa. In transitioning to Cloud/DevOps, this is another of the ‘great silo risks’ that the transformation will mitigate and ultimately break down completely as Business, Application Development and Operations function as an integrated team.

Common mistakes when attempting to break down silos.

a) Toolset-only approach.

A frequent temptation for project teams is to install software-based tools and assume (or rather, hope) that the silos will just vanish by themselves. In Cloud transitions, teams might install automated provisioning, but forget to work across the business/IT silos. Result – adoption by the business generally ends up minimal. In DevOps transition attempts, the technology approach might consist of deploying, for example, Jenkins, Code Stream etc. – tools meant for continuous delivery efforts, but failing to bridge the gap fully with day two operations management, for example without governance around incident-handling or idempotent configuration management. Without a clear path to resolution that cuts across the silos, it is easy to see when issues are not resolved satisfactorily. The impact on customer satisfaction is predictably less than optimal.

b) Overlook the value of ‘traditional’ skills

During the transition to Cloud/DevOps, especially when considering a toolset-only approach, it can appear at first sight that many of the legacy skills have become irrelevant.   But this is often a mistaken perception. Legacy skills are likely still relevant, they simply need to be applied differently.

For example, traditional operating systems skills are almost always relevant for Cloud, however they will be applied differently. Instead of manually configuring servers, the administrators will develop blueprints to provision servers automatically. They will use their knowledge to define standardized operating system builds.

Traditional skills become all the more critical when we look into soft skills. The ability to manage stakeholder relationships, communicate across teams, organizational and business specific knowledge – are all essential to running an effective Cloud/DevOps organization.

c) Focus on problem not solution

This is a well-known principle of change management – focusing on the problem will not solve it. Rather than present the teams with a problem, for example existence of a silo, it is often far more effective to work on the solution – cross-silo organization and processes.

Does it work? I can certainly relate the experience of ‘seeing light bulb’ moments with highly specialized teams.  Once they see the value of a cross-silo solution, the response is far more often “we can do this” as opposed to defending the status quo of individual silos.

In sum, focus on the vision, the end-state and the value of the end-to-end solutions.

Five recommendations to help break down silos.

  1. Shift from silo mindset to Systems Thinking. Conceptually, all the ‘common mistakes’ that I mentioned above can be traced back to the persistence of a silo mindset – whether focusing on traditional (versus leading-edge skills), new toolsets (versus legacy ones), or isolated ‘problem’ areas. The better approach is Systems Thinking. Systems thinking implies an understanding that the overall organization is more than the sum of the parts. It means looking for ways not just to improve the efficiency of individual elements (skillsets, tools, process steps) but optimize the way these elements interact.
  2. Create vision. As mentioned earlier, creating the vision is a vital step to get the team’s buy-in and to overcome silos. This can entail an initial catalog of services and outline workflows to fulfill these services. Potentially, it may be worth setting up a pilot platform to showcase some examples.
  3. Build momentum. Building the vision is important but not enough. One the initial acceptance is reached, the transformation team will need to build the momentum. For example by recruiting ‘champions’ in each of the former silos.
  4. Proceed in incremental steps, building up a track record of ‘small wins’ and gradually increasing the pace of change.
  5. Establish the permanent structure. One the change in motion, it will be necessary to define the long-term roles that operate the Cloud/ DevOps operations. These roles are detailed in ‘Organizing for the Cloud’: https://www.vmware.com/files/pdf/services/VMware-Organizing-for-the-Cloud-Whitepaper.pdf.

Take-aways

  • Breaking silos is a result rather than the end. Start by building the vision to engage teams and motivate them to break the silos themselves.
  • Do not rely on technology alone. Toolsets augment processes, but do by themselves overcome silos (e.g. vRealize Code Stream, vRealize Cloud Automation and other VMware Cloud automation tooling) as long at they are leveraged to sustain the vision and constantly build momentum.
  • Leverage existing skills. Many of the legacy, previously silo’ed skills can be adapted to the future cloud/DevOps organization.

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Pierre Moncassin is an operations architect with the VMware Operations Transformation global practice and is based in the UK.