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VeriSM™ - A Pocket Guide
VeriSM™ - A Pocket Guide
VeriSM™ - A Pocket Guide
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VeriSM™ - A Pocket Guide

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This pocket guide will introduce you to VeriSM key concepts and the VeriSM model and help you to understand how they can apply in your organization.

VeriSM is an approach that offers value-driven, evolving, responsive, and integrated service management. VeriSM is designed to enable organizations and professionals understand how to create a flexible operating model using Governance, Service Management Principles and a Management Mesh to define, produce, provide and respond to consumer requirements for service.

VeriSM is essential reading for anyone who works within a service organization. It will be of particular interest to:
• Managers - who want to understand how to leverage evolving management practices;
• Service owners and service managers - who need to bring their skills up to date and understand how service management has changed;
• Executives - who are accountable for effective service delivery;
• Graduates and undergraduates - who will be joining organizations and who need to understand the principles of service management.
LanguageEnglish
Release dateMar 15, 2018
ISBN9789401803045
VeriSM™ - A Pocket Guide

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    VeriSM™ - A Pocket Guide - Doug Tedder

    1Introducing VeriSM

    1.1   EVERYTHING IS A SERVICE

    People consume services, products and functionality at an astonishing rate. Products and services have become more connected to deliver ever-increasing functionality and intelligence. Products and services provide assistance, advice, help and support. Many of these services and products are enabled by or only possible because of advances in technology.

    1.2   CONSUMERS CONSUME

    Consumers consume. They provide the demand for products and services. There is a need, articulated as requirements, and the consumer is willing to invest in and pay for that functionality, directly or indirectly. Additionally, consumers receiving services from a service provider might also be a service provider to other consumers, as part of a broader network.

    1.3   PROVIDERS PROVIDE

    If there is a consumer, there is also a provider. Providers provide. The principle of providing, relies on understanding the consumer. For success, there must be a benefit for both the provider and consumer. The providers will only invest in products and services if they see ongoing demand, while the consumers want to receive value by having their needs met and feel they are getting a return on investment.

    illustration

    Figure 1 Consumers and providers

    The service provider needs to monitor this consumer and provider cycle. Over time, the needs of the consumer and the capabilities of the service provider will change. The ongoing interaction between the consumer (who confirms their requirements) and the service provider (who confirms their capability to provide) are the dynamics of service provision. Value is the outcome.

    Managing those dynamics drives the development of service management and a service culture.

    1.4   THE VERISM APPROACH

    Service management is the approach adopted by an organization to deliver value to consumers through quality products and services.

    Everyone is now in the service market. Even organizations that focus on selling products (for example, retailers) need to provide services attached to those products to be successful (for example, customer service, shipping, returns).

    Services are just as important in public sector environments, where good service can deliver a better experience for consumers or citizens. Value still needs to be delivered, whether financial or non-financial.

    The most important part of the VeriSM approach is accepting that service management is part of everyone’s role and an essential organizational capability. It can no longer be confined to a single department like the IT department or customer services. There isn’t a VeriSM team, or a department.

    The other key success factor is to accept the impact of technology on products and services. Business projects and processes are enabled by technology. We need to think in terms of technology-enabled services, rather than ‘IT projects’.

    Finally, we need to accept that it’s not solely the responsibility of an IT department to assess how technology can improve services, just as it’s not solely the responsibility of the customer service team to interact with customers. Every employee of the organization works together to create products and services that will support the organizational goals.

    PART 1

    Services and service management

    In Part 1, we explore the essentials of service management in the digital age. We introduce the VeriSM approach and the need for service management in an organization. And we consider the service culture, the skills and competences required, and the challenges a service provider may face.

    2Organizational context

    2.1   WHAT IS AN ORGANIZATION?

    An organization is an official group of people and encompasses businesses (large and small), companies, charities or government departments.

    2.2   ORGANIZATIONAL STRUCTURE

    A service provider organization offers products and services to consumers. Consumers may pay for these products and services directly (for example, ordering and paying for a takeaway meal via a website) or indirectly (for example, receiving regular garbage collection as a taxpayer).

    For an organization to be efficient and effective, it needs to focus its assets and resources towards meeting the needs of its consumers. An asset is anything that is useful or valuable within a product or service.

    2.2.1    Organizational capabilities

    To meet consumer needs, an organization uses its capabilities.

    Capability is the ability or the qualities that are necessary to do something. Capabilities represent how an organization delivers actions and outcomes that meet consumer needs. Capability areas are made up of people, knowledge, processes etc. and could include human resources, sales or IT for example.

    Effective service provider organizations focus on acquiring or developing the capabilities they need and structuring them in the most efficient way.

    2.2.2    Outcomes and outputs

    An outcome is the end result of a consumer interacting with a product or service. In this publication, ‘outcomes’ rather than ‘outputs’ are discussed. An output focuses on a physical deliverable; for example, was the takeaway pizza cooked on time? Outcomes focus on the consumer’s overall experience. In this case, perhaps the outcome was for the family to enjoy a stress-free meal.

    2.2.3    What does a ‘good’ service provider organization look like?

    A ‘good’ service provider organization is one that understands the outcomes it needs to deliver and how to organize its capabilities to deliver those outcomes effectively. This includes being able to recognize when the consumers’ needs are changing and then reacting appropriately.

    2.3   OPTIMIZING ORGANIZATIONAL INTERACTIONS

    So far, the organization has been defined as a service provider, delivering products and services to consumers. Some services are only used inside the organization (for example, the IT department has developed a Customer Relationship Management (CRM) system for the sales team).

    The point to emphasize is that within any organization, there are hundreds of interactions, hand-offs, conversations and approvals taking place between staff, teams and departments every day.

    The traditional approach is to try and optimize these interactions by introducing a customer-provider mindset between departments within the organization. For example, the IT department might be encouraged to treat the rest of the organization like a ‘customer’ and work to meet their desired outcomes. The result has not been as successful as hoped in many instances, resulting in a polarized organization where the IT department and the rest of the business seem to be ‘separate’ entities. Asking IT to treat the organization like a customer has created a distance between them, with extra layers of bureaucracy introduced to try to improve the interactions (for example, internal account managers).

    VeriSM encourages service providers to see their capabilities as part of an overall organization, not as a web of internal providers and internal consumers. People, departments and teams will work together as part of this, but as colleagues.

    2.4   ORGANIZATIONAL CULTURE

    Culture is the collection of written and unwritten rules, guidelines and practices that shape the behaviors of people. Culture becomes visible through behavior: what people do and what people say.

    It is essential the culture is understood, especially in periods of change. Understanding how a change will impact an organization requires an understanding of the organizational culture so that appropriate ways of encouraging people to embrace the change can be devised.

    The relevance of culture is discussed in Chapter 4 ‘Service culture’. In successful organizations, staff have shared values and beliefs that reflect the organization’s mission.

    2.4.1    How to change organizational culture

    Many organizations set out to change their culture and many fail. Often, these failures can be attributed to leadership’s lack of realization that evolutionary change (a series of small changes) is more effective than revolutionary change (one, enormous change).

    2.4.2    No-blame culture

    A no-blame culture is one in which staff know that if they have behaved in the right way and something goes wrong, they will not be blamed. Instead, the focus is on getting to the cause of the issue, ensuring that it does not happen again.

    2.4.3    Entrepreneurial culture

    To succeed in the era of digital services, organizations must establish an entrepreneurial culture.

    Welcoming change is central to this. Entrepreneurial organizations empower staff, include them in decision making and provide for a learning organization which monitors and measures solicited and unsolicited employee and consumer feedback into improvement actions.

    2.5   ORGANIZATIONAL GOVERNANCE

    To manage products and services, operating activities occur within a set of parameters. These parameters will differ by organization and are the governing principles and practices that all decisions should be based

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