Service Management: Key concepts
In the context of service management, an organization can act as a service
provider or as a service consumer; in reality, an organization can play both
roles at any given moment.
The purpose of an organization is to create value for stakeholders. Value is
subject to the perception of different stakeholders, whether they are the
service consumer or part of the service provider organization(s).
The products are tailored to meet the requirements of the different consumer
groups and to appeal to them.
Different service offerings can be created based on the same product, which
allows the product to be used in multiple ways to address the needs of
different consumer groups.
Service relationships are established between two or more organizations to
co-create value. In a service relationship, organizations will take on the roles
of service providers or service consumers.
Services facilitate one or more outcomes for a customer. Achieving desired
outcomes requires resources (and therefore costs) and are often related to
risks.
Both utility and warranty are important for a service to facilitate its desired
outcomes and enable value creation. Utility determines whether a service is
‘fit for purpose’; Warranty determines whether a service is ‘fit for use.
7 Guiding Principles
The seven guiding principles are:
Focus on Value: Aims at creating value for service consumers.
Start Where You Are: Focuses on considering what is already available
instead of starting from scratch (or Reusability).
Progress Iteratively with Feedback: Focuses on avoiding everything in a go
and gathering the timely feedback.
Collaborate and Promote Visibility: Focuses on removing silos and building
trust.
Think and Work Holistically: Focuses on working in an integrated way.
Keep it Simple and Practical: Focuses on simplifying the complex work
methods.
Optimize and Automate: Focuses on optimizing the work carried out by its
human and technical resources.
The following guidelines that you should consider for each guiding principle:
Focus on Value: Know how service consumers use each service. Encourage a
focus on value among all staff. Focus on value during normal operational
activity as well as during improvement initiatives.
Start Where You Are: Look at what exists as objectively as possible, using the
customer, or the desired outcome, as the starting point. When examples of
successful practices or services are found in the current state, determine if
and how these can be replicated or expanded upon to achieve the desired
state. Apply your risk management skills. Recognize that sometimes nothing
from the current state can be reused.
