SS

Figure 3.29 Combining variety-based, needs-based and access-based positioning

Once a position has been attained, here is a test :

 Does it guide the organization in making decisions between competing resource and capability investments?

 Does it help managers test the appropriateness of a particular course of action?

 Does it set clear boundaries within which staff should and should not operate ?

 Does it allow freedom to experiment within these constraints?

3.5.5 Strategy as a plan

Strategy as a plan is a course of action from one point to another within a competitive scenario. Often referred to as an intended strategy , it is the deliberate course of action charting a path towards strategic objectives. The planning horizons are typically long term but lengths may vary across organizations, industries and strategic context. Again, plans are the direct means of achieving goals and objective s. They commonly focus on financial budget s, portfolio of services, new service development , investments in service asset s, and improvement plan s (Figure 3.30).

Each plan focuses on achieving well-defined outcomes or conditions in a particular context. The key inputs to a plan are frequently derived from the results of the strategic assessment , and are framed by the strategic position and perspective.

Figure 3.30 Operational plans and patterns are driven by strategic positioning

Plan s are linked by the need to achieve certain strategic objectives. For example, building infrastructure capacity , consolidating staff at key locations, licensing a new set of software application s, and complying with an industry standard may all be parts of the same strategic plan to reach a distinctive position.

Service management can be viewed as a coordinated set of plans with which service providers plan and execute their service strategies. The difference between success and failure in strategic leadership and direction is largely dependent on how well this coordinated set is put together, put to work, and controlled in execution. Two service providers with equal sets of resource s may achieve different degrees of success simply because of their strategic plans.

3.5.6 Strategy as a pattern

Strategy as a pattern is an organization ’s fundamental way of doing things. They are the basis of what are called emergent strategies, distinctive patterns in action reinforced over time by repeated success. For example, rather than pursuing a plan to cut service costs through service sourcing , the provider makes sourcing decisions one at a time – testing the validity of the idea. First it may source telecommunication services, then application hosting, then security services, and so on, until a strategic pattern has emerged.

The patterns are embedded in a service provider ’s way of doing business. Management system s, organization, policies, processes, schedules, and budget s are all discernible patterns of action that are documented and controlled. They are the consequence of perspectives, positions, and plans directed by senior leadership in service of a particular customer or market space . Others exist in the form of tacit knowledge carried by those who carry them out. They may be neither documented nor discernible because they are unexpected outcomes realized in pursuit of certain goals or objectives. Nevertheless, they deliver value to customers so managers must capture and codify them into the organization’s documented practices.

Consistent and controllable patterns are part of the service provider’s distinctive capabilities. These patterns are valuable because they emerge inside the organization as a direct consequence of actions taken by managers and their teams. Therefore they are likely to be a signature of the organization and a source of competitive advantage. While industry practices and standards are available to all, signature processes can truly distinguish the value provided by a service provider.22 Best practice s are patterns in action for superior outcomes over the normal expected performance using prevalent practice in comparable circumstances. Organization s can set their own improvement threshold for designating a pattern as a best practice. Other criteria may include elements of innovation, efficiency gains, external recognition, and the transferability of the related knowledge.

Patterns are useful in identifying areas of opportunity. Useful patterns in performance can be codified into practice and made available as reusable asset s to other parts of the organization. When patterns in action become system s and processes, they are placed under Configuration Management so they may be stabilized, standardized, and improved. They are the past guidance from which to reaffirm or correct the current strategy . As business cycles continue, new patterns in action may emerge and provide feedback.

When managers put in renewal or improvement activities, they advance their organization to an advanced level of maturity . Strategy as patterns in action can therefore be a very powerful perspective of strategy because it engages all levels of management and rests on systematic learning. Service management can be viewed as an adaptive network of patterns through which strategic objective s are realized. Some patterns in action are shown in Table 3.1.

Example patterns of action

Description

How-to patterns

Set the operating style of the organization. The framing of how activities are performed, for example:

 R&D staff must rotate through operations

 All customer questions must be answered on the first email or calls

 Operations staff must be minimally certified

Boundary patterns

Set the focal point of the organization. The body of opportunities that should, or should not, be pursued, for example:

 Hardware acquisitions must be done through strategic vendors

 New technologies must conform to a certain standard

 New project s must follow a standard methodology

Priority patterns

Set the allocation of resource s. The ranking of new opportunities, for example:

 Service stability outweighs speed of deployment

 Speed of deployment outweighs service stability

Timing patterns

Set the rhythm of the organization. Staff are synchronized with customer and business cycles, for example:

 End-of-quarter and end-of-year required enhanced service level s

 When legislature is in session, no changes are allowed

Table 3.1 Service management patterns

.

Case example 7 (solution): Surprisingly, the solution was to suspend new sales

The CIO understood:

1. Service operation s were caught in a vicious cycle with disastrous long-term consequences.

2. Customers were leaving due to a strategic weakness. Customers differentiated the value of security services through service quality . Perspectives and positions based on cost and technology were incorrect.

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