IT IL ® 4 : D ire c t, P la n a n d Im p ro v e R e fe re n ITIL® 4: c e a n d S Direct, Plan and Improve tu d y G Reference and Study Guide u id e ITIL® OFFICIAL PUBLISHER More key titles to enhance your learning Explore the full range of ITIL® 4 titles Available in print, PDF and online subscription – Core textbook per module Shop now – Supporting reference and study guides – Convenient packs to suit your study pathway towards ITIL 4 Managing Professional or Strategic Leader Use code NS20 for 20% off today *applies to print and PDF titles purchased on TSO Shop. 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Contents Foreword v Acknowledgements vi About this guide vii 1 Introduction 1 2 Key terms and concepts 3 2.1 Key terms 3 2.2 Key concepts 9 3 Direction and control 17 3.1 Cascading objectives and requirements 17 3.2 Defining effective policies, controls, and guidelines 18 3.3 Decision-making at the right level 21 4 Governance, risk, and compliance 22 4.1 Role of risk management in direction, planning, and improvement 22 4.2 Governance 24 5 Continual improvement 27 5.1 Improving the SVS 27 5.2 The continual improvement model 30 5.3 Assessing for improvement 40 5.4 Prioritizing outcomes 47 5.5 Developing a business case 48 5.6 Learning from past experience 51 iii ITIL® 4: Direct, Plan and Improve Reference and Study Guide 6 OCM and communication 52 6.1 Organizational change management 52 6.2 Communication and OCM 59 6.3 Interfaces across the value chain 69 7 Measurement and reporting 72 7.1 Basics of measurement and reporting 72 7.2 Types of measurements 76 7.3 Success factors and KPIs 83 8 Value streams and practices 85 8.1 Value stream mapping 85 8.2 Value streams, practices, and processes in the SVS 86 8.3 Methods and techniques to direct, plan, and improve value streams and practices 89 9 Taking the DPI examination 108 9.1 Purpose of the ITIL 4 DPI qualification 108 9.2 Examination overview 108 9.3 Question type examples 110 9.4 Examination modalities 112 10  The ITIL 4 certification scheme  114 10.1 ITIL Foundation 114 10.2 ITIL Managing Professional stream 115 10.3 ITIL Strategic Leader stream 118 10.4 ITIL Master 120 10.5 ITIL and the T-shaped individual 120 11 ITIL 4 Direct, Plan and Improve syllabus 123 Further information 129 Index 132 iv Foreword While the concept of an ITIL study guide is not a new one, this publication takes a fresh approach. Lou manages to laser her focus on those areas of direction, planning, and improvement that are actionable, and supports them all by introducing some very important concepts. I’m particularly glad to see both Little’s Law and Goldratt’s theory of constraints so clearly and concisely covered. This is a valuable collection of information condensed in a meaningful way. Using this guide, readers will be able to form an action plan that aligns with the ITIL guiding principles. This will be a real value-add for those who intend to take the certification examination in ITIL 4: Direct, Plan and Improve, and for those attending the course. Lisa Schwartz ITSM Academy founder and CEO v Acknowledgements Lead author Lou Hunnebeck Reviewers Akshay Anand AXELOS Alison Cartlidge Sopra Steria Phil Hearsum AXELOS Mark Lillycrop itSMF UK Contributing authors to ITIL®4: Direct, Plan and Improve Akshay Anand, AXELOS; Mauricio Corona, BP Gurus; Marcel Foederer, ITpreneurs; Kirstie Magowan, New Zealand Defense Force; Nicole McFarland, Elementum; Allen Ureta, Deltamine, Inc.; Michael Vikdal, Auslyn Group vi About this guide This guide can be used as a study aid for candidates taking the ITIL Managing Professional Direct, Plan and Improve (DPI) qualification and as a quick reference guide for those who just want a high-level overview of the key points from the AXELOS core guidance ITIL®4: Direct, Plan and Improve. Although the guide does not include exhaustive examinable content, it is a summary for quick revision with specific references to the core guidance should you wish to read more (found in practical tabular format linked to learning requirements in Table 11.1). Further information is also available in the practice guides on the AXELOS My ITIL platform (one year’s subscription to My ITIL is included with any ITIL exam). In addition, you will find useful non-examinable content, including information on taking the examination, tips, key messages, and definitions highlighted throughout, with key figures to help with your understanding. ITIL®4: Direct, Plan and Improve addresses the cultural and team management aspects of product and service management; provides an overview of the tools and technologies which support service management; and demonstrates how to integrate management practices into end-to-end value streams. Note that this title is not intended to replace ITIL®4: Direct, Plan and Improve nor to be a substitute for a course provider’s training materials. vii 1 Introduction ITIL®4: Direct, Plan and Improve (DPI) and the associated qualification hold a special place in the ITIL 4 universe. During the development process that created ITIL 4, it became clear to the architects and authors that, while some ITIL 4 guidance might be appropriate only for readers with specific organizational roles or personal objectives, there were some topics that would be of value to all readers. These comprise the heart of DPI. Regardless of their organizational role or level of authority, everyone has something they have the authority to direct – even if it is just themselves. Everyone has something they need to plan, and everyone at every level should always be contributing to, if not leading, improvement. ITIL®4: Direct, Plan and Improve provides a grounding in a set of principles, methods, and techniques that can be used by anyone to direct, plan, and improve the areas in which they are involved. But ITIL®4: Direct, Plan and Improve has a deeper message than just teaching important ideas to anyone who might benefit from using them. It challenges each person, no matter what their position, to see themselves as a leader, and to take responsibility for the quality of the outcomes they participate in producing. Every person who is involved in service management is essential and consequential. What each person does matters and affects everyone and everything else. By seeing themselves in this way, readers of this study guide and of ITIL®4: Direct, Plan and Improve itself will hopefully be inspired to commit to a lifelong journey of learning and growth, allowing them to continually expand their horizons and to lead others along a similar path. 1