Why you need a Service Management Office
There is a growing requirement for governance models for both portfolio and project management as well as IT service delivery, particularly when these models can significantly reduce operational costs.
In addition, large organisations are now embracing multi sourcing in an attempt to reduce cost and improve services, but with this comes risk in controlling such a complex model.
In order to facilitate an overall integrated governance structure that will apply good practice across the service management lifecycle, a new governance function needs to exist, that will be responsible for integrating, promoting and delivering governance functions across the service value chain.
The Service Management Office (SMO) is a shared service responsible for the integration, promotion and delivery of good (or best) practice.
A Service Management Office is designed to help build a capability to manage the IT service lifecycle, by bringing together all relevant IT Governance, specifically:
- ITSM as per ITIL Version 3
- Security & Risk Management (ISO\IEC 270001)
- Enterprise Architecture & the SW Delivery Lifecycle
- Portfolio/Programme/Project Management, as Prince2 and Managing Successful Programmes (P3M3), and
- CobiT.
By providing an integrated IT Governance model, a SMO is able to define the governance function for both IT and the business and manage the risk in the delivery of IT services at the enterprise level.
In addition to the governance function, the SMO provides the required interface between the IT and External Service Providers (Outsourced IT), ensuring that as and when suppliers are added into the service delivery model, there are consistent models for process interlock and data interchange.
It is extremely important that any models around data ownership and RACI models are defined as part of the contractual obligations rather than after the event.
There can be much value in implementing best practice frameworks, recognised standards and multi-tier delivery models. With increased complexity comes increased risk, and increased governance.
The Service Management Office is an excellent structure to define, promote and deliver governance services to the business and IT, and help with the mitigation of risk within a multi sourced environment.
What’s Involved in Setting Up An SMO?
ProActive's approach for assisting customers build an SMO uses our existing BasePlan methodology as well as our coaching and mentoring services.
A BaseCamp strategy definition workshop first brings together the governance stakeholders to agree the overall structure and delivery model for the SMO.
Next, ProActive's BaseOne assessment will look at the core processes associated with an integrated governance model, and provides feedback on maturity and service improvement. The ITIL v3 Process Maturity Framework (PMF), ISO27001 and the OGC P3M3 P3O are used to measure compliance against best practice. A detailed business case is produced detailing the financial benefits of the SMO, and how this links to business benefits and supporting KPI's.
The BaseTwo Process Design workshops then define the changes to the customer’s process to adopt the Integrated Governance Model (IGM) and the Supplier Integration Model (SIM). During this activity, the following deliverables are met:
- Process Design for the SMO
- Modification of existing ITSM processes
- Job Roles and Responsibilities
- RACI models, Swim Lanes and KPIs
- Supplier Management Interface
- Building the SMO Service Catalogue
- Service Knowledge Management System, SKMS
In order to help individuals to understand the Integrated Governance Model, the 'ProActive Education Programme for the SMO' builds an individual training plan that closes the gap between functional responsibilities and individual's actions. A number of organisational workshops help process owners, managers and agents understand their roles and responsibilities, and how they work together within the service lifecycle.
Lastly, the assistance for early life support of the SMO would comprise mainly Coaching and Mentoring.
Our White Paper sheds more light on the subject if you are interested in learning more about the SMO! Contact info@proactiveservices.com.au to receive your electronic copy.

