16Service review

This chapter will provide you with an understanding of service review, arguably the most important activity of service level management (SLM). After a full discussion of the service review definition, we will continue by describing the associated processes and tools.

Service review goes beyond working sessions with the customer to review service performance. As we will see, service review aims to build the relationship between the service level manager and the two primary actors in the IT service management (ITSM) environment, namely the customer and the service provider.

16.1SERVICE REVIEW OVERVIEW

Service review is the focal point of the operational activities of the SLM process (see Figure 16.1). A great deal of work was put into the strategy and into positioning it properly within the organization’s overall functionality. The design work, including documentation and measurements, will have already been completed and the service level agreement (SLA) will have been negotiated and approved. From this point onwards, service review meetings are the main focal point for the service level manager.

Service review initiates the service improvement plan (SIP) and establishes chargebacks and service level penalties. Service review is the process around which all other activities rotate.

Figure 16.1 Service review within the SLM process

Service reviews are defined as meetings held on a regular basis with customers to review the service achievement in the last period and to preview any issues for the coming period. Service review meetings are time based and aligned with the contractually agreed service levels. Since most service levels are based on monthly measurements, it is recommended that service reviews are performed on a monthly basis.

Secrets of the trade

Many service providers on outsourcing engagements practise early-life support (ELS) following transition of a significant release into operational mode. This practice is exercised typically at the initial period of the contract and aims to provide extra resources to support services that are under deployment or change and also to provide an immediate response to end user queries. The primary goal of ELS is to establish a high level of customer confidence in the initial stages of the relationship. In this period it is customary to perform the service review meetings on a weekly basis to allow the customer to express concerns or provide feedback on a more frequent basis.

16.2INPUTS AND OUTPUTS

16.2.1Inputs

Inputs to the service review sub-process are as follows:

• SLA compliance report The report represents the complete set of objectives in the SLA and provides a view of service provision quality at first glance.
• Service performance reports Standard predefined reports, including availability reports, incident reports and trend reports, will be needed.
• Change schedule This input provides information regarding changes for the forthcoming period and their business impact.
• Minutes from previous service review The service level manager will prepare responses for issues raised at the previous meeting.
• CSI register The continual service improvement (CSI) database or structured document is used to record and manage improvement opportunities throughout the lifecycle.
• Presentation It is good practice to consolidate all inputs into one set of presentation slides to allow better management of information, thereby promoting an effective meeting.
• Service level agreement (optional) The SLA can be used as a reference for any dispute regarding service performance where more detail for examination is required.

16.2.2Outputs

Outputs from the service review sub-process will comprise the following:

• Meeting minutes Summary minutes of the service review meetings – including agreed action points, customer concerns and issues to be followed up – need to be documented for future reference.
• Updated CSI register Action items are discussed and negotiated with the service providers and, when appropriate, are recorded in the CSI register for operations to plan and execute service improvements.
• Updated service performance reports Although the reports are based on automated data, at times the customer and the service level manager may agree to change the results shown in the reports.

16.3SERVICE REVIEW PROCESS

The service review activities do not begin and end with the meeting itself. They require careful planning, execution and post-service-review activities. Adhering to the process and perfecting it determines the overall success of the SLM process. We should always keep in mind that the main objective of service review meetings is establishing and maintaining the customer relationship by means of attaining a high level of customer satisfaction.

Service reviews are made up of four steps (see Figure 16.2):

• Planning This step includes reviewing previous meeting minutes and determining whether any issues require special attention. Based on your analysis, invite the appropriate stakeholders to discuss the topic and request for information to be prepared.

Figure 16.2 Service review within the monthly cycle

• Preparing The meeting involves the review of performance reports, SLA reports and other supporting evidence. Preparation entails generating those reports and collecting and collating information from external functions. A slide deck (of presentation slides) should be created to organize the speaking points and data.
• Meeting This step comprises conducting the meeting and executing the agenda as planned. The result of the meeting will deliver action items for service improvement, via the CSI register.
• Post-meeting activities Most of the activities following the meeting involve updating products such as the CSI register, SLA reports and meeting minutes, and issuing them to the appropriate stakeholders.

Data from the previous month are collected and compiled from the first day of the following month. The first week of that month is spent preparing for the meeting, after which it is held. Post-service-review activities are completed during the following week. As soon as the cycle ends, determined by the final issue of the updated CSI register, the planning for the next service review begins.

The four steps are described in greater detail next.

16.3.1Planning for service review

Planning for the next service review meeting starts as soon as the post-meeting activities of the previous one are completed. As a service level manager you should have in mind the main issues to address in the next meeting and what resources you will need to support the discussion taking place within it.

Planning does not include preparation of reports and collection of information. The task of planning is for the service level manager to strategize for the next service review and initiate activities required to execute that strategy. The agenda may indicate an item that requires longer preparation time, such as inviting additional audiences or additional presentations; the planning exercise will provide sufficient time for preparation.

16.3.1.1Create the meeting agenda

The standard agenda is reviewed, and improved if need be. Topics that require special attention are added. For example, if a service has been lacking and needs to be monitored; if previous meeting minutes have indicated a follow-up; or if an upcoming change has been identified by the forward schedule of change (FSC). It is also recommended to add an item to the agenda that does not address degradation of service or any requirement for improvement. This additional item can take the form of a guest speaker, a discussion on new technology, or an exploration of new opportunities.

16.3.1.2Submit special requirements

Agenda preparation may reveal requirements that are not the standard service review deliverables. Special reports may need to be developed or resources may need to be reallocated for specific tasks. This activity aims to identify all the nonstandard elements required for the upcoming service review and to initiate their preparation.

16.3.1.3Schedule the meeting and invite attendees

The above activities may identify additional attendees for the upcoming service review. The service level manager will select a date for the meeting and submit the necessary invitations, including the proposed agenda. The date for the meeting should provide enough time for preparation but should be as close as possible to the end of the previous month – it is usual to hold service review meetings during the first 10 days of the next month.

16.3.2Preparing for the service review meeting

Preparation for the service review meeting includes report generation, material preparation, research and presentation development. Those activities are refined until they are perfected.

16.3.2.1Prepare service reports

Reports are generated, collected and analysed. Reports include SLA compliance reports, service performance reports and customer satisfaction surveys. Organizations that use an automated reporting solution will benefit at this stage by avoiding the manual labour required to create the reports.

16.3.2.2Examine service performance deficiencies

The reports may identify abnormalities in service performance that require further analysis. The first report to analyse is that for SLA compliance. Obvious SLA breaches or warnings need to be singled out and analysed. The deficiencies should be listed, examined and, most importantly, explained.

16.3.2.3Calculate penalties

In the event of an SLA breach, penalties may occur. The penalties are calculated and totalled, although the service level manager may well continue working on an examination of the penalty in order to attempt to reduce the amount involved. If the service level manager convinces the customer that the SLA breach does not reflect the level of service provision or that the service degradation did not impact the business, the customer will be inclined to negotiate downwards the penalty amount or cancel it altogether.

16.3.2.4Prepare root cause analysis for major incidents

It is good practice to generate a root cause analysis (RCA) in the case of a major incident. SLM will collaborate with the support groups to establish the RCA and make recommendations for mitigating the risk of recurrence.

16.3.2.5Consolidate service improvement plan

Many organizations utilize multiple CSI registers addressing different types of services or geographical sites. The master CSI register should be consolidated once a month by the service level manager in order for it to be reviewed with the customer. Even where there is a single CSI register, the document must be reviewed periodically and kept up to date.

16.3.2.6Acquire change schedule

The change schedule lists the changes that are planned to be implemented, and it provides the users with notice of interruptions to services. The change schedule is commonly communicated to the end user through the service desk. The service level manager, in accordance with the change manager, reviews the FSC to identify major changes and rollouts that need to be pointed out to the customer during a forthcoming service review meeting.

16.3.2.7Compile final presentation

A template for a standard service review presentation is populated with the above deliverables. It is suggested to use one set of presentation slides for the whole presentation and not to shift to multiple presentations. The overall presentation must be coherent and follow the logical structure of the meeting. The presentation will be issued to stakeholders as part of the postservice-review activities.

16.3.3Conducting service review meetings

The success of SLM is measured by customer perception. Positive customer perception of service performance is the primary goal of the process. The service review meeting is therefore your chance to either develop customer perception or, on the contrary, destroy it. The service level manager is the ambassador, representing the service provider, and must use the meeting to listen to the concerns of the customer and act on them.

The agenda of any particular service review meeting is heavily dependent on who attends the meeting. The basic assumption is that the presence of the customer and the service level manager is mandatory. Regarding the rest of the attendees, typically there are two philosophical approaches that are adopted by organizations:

• Minimal participation In organizations where the service level manager is a strong figure who possesses authority in the service environment, the service level manager is the sole representative of the service provider at the service review meeting with the customer. Action items can be agreed without the need to have service owners and the operations function present at the meeting, assuming that the service level manager has the knowledge and ability to understand the detail and make sensible decisions.
• Extended participation SLM is perceived by some organizations as the process that maintains the SLA, reports on its results and discusses service provision with the customer during service review meetings. In an organization where the service level manager has limited authority of this kind, the service providers take an active part in the meeting. Their participation is essential to present findings concerning service performance and to suggest action items for improvement.

The standard agenda items for a service review meeting reflect the business need and the two approaches detailed above:

• Customer feedback The meeting should begin by setting the stage for the customer to express their concerns and comments. No SLA report can provide you with better feedback regarding service performance than what will come out of the customer’s mouth. Responsiveness and the resolution of customer feedback must be proven by the next service review.
• Review of the previous period By reviewing the previous meeting’s minutes, the service level manager will demonstrate that issues that were raised are now resolved or undergoing improvement.
• Review SLA compliance report Review of the SLA compliance report provides a quick view of service provision quality. If any breaches or warnings are showing for a metric, further detail will be provided to examine where and when the service was lacking.

Secrets of the trade

The ‘topic of the day’ idea was introduced to me while I was providing ITIL consultancy for a large service provider. I was asked to perform a gap analysis and recommend actions for improvement of ITIL processes.

I attended the service review meetings as a guest. Observing the meeting, with its presentation and interaction between the parties, I gathered the information as evidence for my final gap analysis. Although I was not familiar with the ‘topic of the day’ idea until then, I discovered that adding an item to the agenda that does not address service performance had great value. The service level manager and the customer ‘negotiated’ which interesting topics should be discussed during the topic of the day, which guest speakers should be invited and much more. During the meeting itself, the topic of the day – which was always the last subject on the agenda – shifted the atmosphere from a service performance and technical discussion to a more relaxed and friendly atmosphere.

• Review of performance reports The service level manager or the reporting analyst will present standard reports that focus on specific metrics such as call volume, availability of critical services, trend analyses, and incidents per site or per service.
• Preview of next period This is the opportunity for the service level manager to make general announcements concerning changes in the business or resources. The service level manager precedes the discussion by reviewing the change schedule and focusing on major changes that may affect the business.
• Compile a summary of actions items The service level manager and the customer will compile a summary of action items through the SIP process via the CSI register.
• Topic of the day It is good practice to add one more topic to the meeting, in the form of a guest speaker, a discussion of new technology, or an exploration of new opportunities. The objective is to avoid the negative atmosphere that can develop when the service level manager is on the stand being cross-examined for most of the meeting.

16.3.4Post-meeting activities

The scope for post-meeting activities differs depending on the relationship of the service provider with SLM.

In some organizations, the service level manager and representatives of the service providers/operations take part in service reviews. They join forces to prepare for the meeting and attend the service review meeting as one unit. This type of collaboration results in agreeing together, with the customer and the service provider, on action items. The negotiations and agreements are thereby completed during the meetings themselves, avoiding subsequent discussions. In this scenario, the post-meeting activities are reduced to merely updating and issuing documents.

At the other extreme, some service management organizations choose to separate SLM from the service provider. According to ITIL best practice, the service level manager is the go-between communicating between the customer and the service provider. In this scenario, immediately after the service review meeting, the service level manager must review with the service provider the action items that were agreed with the customer.

16.3.4.1Conduct service provider review

As explained above, in a case where the service provider does not take part in the service review meeting, the service level manager must communicate with the service provider following the meeting. The service level manager and the service provider review customer concerns and prioritize the CSI register and action items for service improvement.

16.3.4.2Update and issue documents

After discussions with the customer and service providers are complete, the associated documents are updated and finalized. The documents are then posted on an agreed central location accessible to stakeholders, or sent to them directly.

16.4EMERGENCY SERVICE REVIEWS

Emergency service reviews are performed under unique circumstances and are rare. The assembly of the meeting is quick and typically addresses a specific, urgent issue. The customer may submit a request for an emergency service review, but it is recommended that the service level manager proactively arranges the meeting, proving prioritization of the matter at hand.

A lot like dealing with emergency changes in the ITIL change management process, emergency service reviews are not ideal but are, at times, unavoidable. The conditions for initiation and the procedures of emergency service reviews must be predefined with customers.

Secrets of the trade

Although the conditions for initiation of an emergency service review are defined and agreed upon, it is suggested to allow such a meeting on any occasion that the customer calls for it – even if the situation does not fulfil those conditions. It is important to note that the objective of the emergency service review is to promote positive customer perception, and so responding adequately to the customer takes a high priority.

16.4.1Conditions

The conditions under which an emergency service review is performed must be documented in the process documentation in accordance with what has been agreed with the customer. Typically, the emergency service review is instigated by a major incident or anticipation of a change that may heavily impact the business. The service level manager and the customer may decide together that the customer is permitted to call for an emergency service review meeting when a significant concern arises regarding service provision, even if an actual threshold has not been breached.

16.4.2Attendees

Owing to the urgency of the matter under consideration, it is not uncommon to hold the meeting virtually rather than wait for all stakeholders to be available at the same location. The service level manager and customer, or their representatives, attend the meeting. The service level manager will seek to include the service owner or the service provider that is directly involved with the matter at hand to provide immediate response, avoiding unnecessary follow-up communications for this urgent matter.

16.4.3Inputs

The service level manager will prepare evidence regarding the matter to be discussed in the meeting. For example, if the meeting addresses a major incident, then relevant reports, log files, root cause analysis and incident records should be prepared for review at the meeting. The CSI register is used to review related action items.

16.4.4Outputs

An updated SIP is the main output of the meeting. Ideally, the service owner will commit to changes or improvements to eliminate recurrence of similar incidents. If the service review addresses a significant change, the service level manager will produce a plan to mitigate risks regarding the change.

The most important output of an emergency service review meeting is a satisfied customer. Let’s remember that at the beginning of the meeting the customer had heavy concerns regarding service provision, otherwise an emergency service review would not have been requested. So the service level manager’s objective is to conclude the meeting with the customer’s perception that the issue is being addressed and is soon to be resolved.

16.5SUMMARY

When I am asked to provide consultancy services in relation to SLM, my customers are always surprised to find the emphasis on service review rather than on SLA reports.

Service reviews determine the success of SLM and have a significant impact on service provision as a whole. Service providers feed off the service review meetings, and many of the service improvement activities are steered by the products of service reviews.