Metrics guide metric behaviour, but SLAs have not controlled the correct behaviour. Service providers compete for the supply of SLAs at the lowest possible price points. The result? Users and businesses suffer from reduced experience quality. In fact, for most implementation projects, IT starts with one hand behind the back,” says Tichy. The relationship between technology and business needs to move from the traditional “Your SandBox, My SandBox” paradigm to a more collaborative playground where business and technology leaders share common goals, goals and BLAs to achieve growth and support financial goals.” That`s where the challenge begins. How often does management agree with the IT team for strategic planning and the creation of their target operating model (TOM)? The answer is, not often enough, according to stratmor senior partner Michael Grad, who wrote an article about TOMs and their relationship to major transformation initiatives in the March 2018 issue of our Insights report. Like Tichy, Grad knows information technology — for more than 25 years, he has managed major mortgage transformation programs for The Ten Largest Lenders. Grad says that “technology should not be the driving force behind your business strategy, but the main facilitator” and that there must be a commitment from the business leader and the management team to invoke the holistic – people, processes and systems – that change. Contrary to the agreement with your pizza delivery man, ALS was not negotiable with the cable company. The cable operator published it as part of its terms and conditions. Their only alternative is to register with another cable operator, provided an alternative is available. Suppliers may mislead their size with green light SLAs, but these “watermelon metrics” mean that, despite green SLAs, users/businesses are often left red with frustration. There is no need for a so-called “well-provided” service not to help the company achieve its objectives. Suppose Company X signs a service level contract with Z.
Company X agrees to host a Z-Company website on Company X`s servers. The two companies are negotiating what will be covered by the agreement, how long the agreement will be in effect, how much company Z will pay for the service at the level defined in the ALS and what penalties there will be if Company X does not deliver in accordance with ALS. Customer experience experts are already being hired around the world. The next step in maturation would be to create a function based on the driving experience: a team – under this new CeO – that wakes up every morning and is concerned about the improvement of the staff and user experience. A more complex ALS could define the responsibilities of both parties in the agreement. In this way, the above target operating framework effectively puts your strategy into project execution, as shown in Figure 2 below – TOM makes business objectives, success metrics and the high-level roadmap with your clients (borrowers or members) a top priority. The agreement could stipulate that the Z company website will be available at least 99% of the time. (The company could have obtained 99.9% availability at a higher cost.) The ALS also stipulates that Company X can process 2,000 orders per minute and that confirmation of an on-screen order does not last more than three seconds. Some of these responses even said that you should never agree on a BLA, only use an ALS according to ITIL.
This simply confirmed my statement that most IT organizations are still technology-oriented and do not master the level of service, let alone the level of customers. When it comes to management, STRATMOR`s main partner, Len Tichy, knows the way. As the winner of the MBA Tech All Star Award, Len has played a leading role in nearly 200 implementations of mortgage technology, many of them at the project level.