Waiting for service-level management

In the circles of managers - whether IT or some other form of service provider - the subject of service-level management is one of great interest.

Of course, to say that it is of great interest is akin to saying that Mount Everest is a " high " mountain. It is a subject of intense interest, yet, curiously, with only a limited amount of activity. Managers around the world recognize the importance of establishing a program for managing the level of the service they provide to their clients, but they seem to be paralyzed.

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Research conducted by Enterprise Management Associates has found that there is no doubt among IT managers or service providers that service-level management (SLM) is important, regardless of the size of the organization. Yet, when probed further and asked about what they are doing about SLM, a surprisingly large number (43%) report that they are doing nothing, or almost nothing. What is the reason for this? In part, the answer lies in that old acronym " FUD " - Fear, Uncertainty and Doubt.

Fear

Some managers have already had experience with SLM and with service-level agreements (SLA). That experience has been painful because their customers or clients have misused the SLA. Instead of treating it as a means of communication and collaboration, they have used it as a club to attack the IT manager or service provider. The attack might come when service commitments are not met, or, in some cases, when the service guarantees are not exceeded.

Fortunately, instances of this have been relatively few, largely because of the limited adoption of SLAs - not because of any generosity or right thinking by the customers. However, IT managers and service providers have long memories and a willingness to share their painful experiences with their peers. This has led to the propagation of this fear to a broader community.

Uncertainty

Uncertainty wears two faces. First, there is a segment of managers that has little information about the world of the SLA and for that precise reason is inclined to fear it. They can imagine various unpleasant consequences and are not inclined to risk facing those consequences in return for some very uncertain benefits.

The other side of uncertainty is comprised of a group of managers who believe that there may be significant benefits to be realized from SLM and furthermore believe that they should be addressing this subject. However, in spite of this belief, they do not act. The reason is they are uncertain where to begin. They don't know how to go about establishing and managing a program for SLM or how to negotiate SLAs.

Doubt

Doubt is a first cousin of Uncertainty. Doubts can nag and gnaw at the best intentions of a manager who wants to establish an SLM program. In this tight economy, a manager may doubt the wisdom of spending money on SLM. The manager may doubt the ability of his or her staff to negotiate SLAs, etc.

The answer for each of these lies in education. Learning sheds light on a subject and allows a manager to put it in the proper perspective and make an informed, objective opinion. It is true that education cannot erase painful memories of painful experiences in a dysfunctional organization. However, education can help even someone with painful memories of SLM to recognize the positive side and potential benefits of a properly implemented program for SLM.

The bottom line is that service-level management is a powerful tool for IT managers. It can lead to better relationships with clients, improved levels of service and increased profitability. However, in order for these benefits to be realized you can't sit there waiting for them to happen magically. You must act! The intent of this series of newsletters is to provide you with at least a starting point for that action. In future newsletters we will examine other related topics, such as: the terminology of SLM and SLAs, education requirements and alternatives, the negotiation of SLAs, the relevance of standards, and what products are required to support SLAs and SLM.

Rick Sturm is the Founder and CEO of Enterprise Management Associates, an industry analyst firm. He has written extensively on the subject of Service-Level Management and is a co-author of the top selling book " Foundations of Service-Level Management. " He can be reached at sturm@enterprisemanagement.com

Dennis Drogseth is a director with Enterprise Management Associates, a leading analyst and market research firm based in Boulder, Colorado, focusing exclusively on all aspects of enterprise management. Dennis has extensive experience in network management platforms and products and is researching trends in management software and changing IT roles internationally. His 18-plus years of experience in high-tech includes positions at IBM and Cabletron. He has been quoted in the press and is a speaker at industry events. He can be reached via e-mail.

Audrey Rasmussen is a research director with Enterprise Management Associates in Boulder, Colorado, a leading analyst and market research firm focusing exclusively on all aspects of enterprise management. Audrey has more than 20 years of experience working with distributed systems, applications and networks. Her current focus at EMA is e-business, SMB/SME and MSPs. She can be reached via e-mail.

Enterprise Management Associates in Boulder, Colorado, is a leading analyst and market research firm focusing exclusively on all aspects of enterprise management software and services.

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Network World, 08/20/01

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