Change

Management Credibility
What's Your Credit Score?
BENJAMIN SAPP

JANET HYLAND

Cardinal Health

Cardinal Health

DIRECTOR - IT SERVICE MANAGEMENT

2016 ServiceNow All Rights Reserved

MANAGER - IT PROCESS MANAGEMENT

Agenda
The Problem with Problem Management
Change Management Accountability
Change Credit Score Dened
Driving Cultural Change
Overview of Results

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Your Presenters
Benjamin Sapp

Janet Hyland

21 years of IT experience
5 years in Service Management
Current ResponsibiliRes:

20 years of IT experience
5 years in Service Management
Current ResponsibiliRes:

Director of IT Service Management

Cardinal Health

IT Process Governance
ServiceNow PlaYorm
Infrastructure AutomaRon &
AnalyRcs
Shared Services Client
Management

Prior ResponsibiliRes:

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EDI Order Entry

Third Party LogisRcs (3PL)
Data Warehousing
ETL IntegraRon
Enterprise Monitoring
DevOps PlaYorm

Manager of IT Process Management

Cardinal Health

IT Process Governance
ITIL Alignment
Mergers & AcquisiRons Support/
Onboarding
EIT ITSM Training

Prior ResponsibiliRes:
Product Development
PCI Compliance
Network Security &
Management Systems
Program Management
Network OperaRons
Client Service Management

About Cardinal Health, Inc.

Headquartered in Dublin, Ohio, Cardinal Health, Inc.
is a global health services and products company
Ranked 26th on the Fortune list, with $103 billion in
annual revenue
37,000 employees in nearly 60 countries worldwide
IT Demographics
More than 3,500 IT resources
2,900 ServiceNow users
500,000 incidents and 425,000 requests annually
11,000 changes annually
360 service catalog items
590,000 conguraRon items

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The Problem with Problem Management

By the Rme you know you have a problem, its too late!

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The Problem with Problem Management

In 2014 Cardinal Health applied a heavy focus on improving Problem Management
as a method to reduce the number of new problems
We focused on driving down MTTD and MTTR
The goal was to reduce the average age of open problems, and enable faster root cause analysis

Although we improved process performance, we did not reduce the volume

of new problems
We idenRed that Problem Management was too reacRve to prevent problems,
which led us to invesRgate the top problem causes.

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RelaRonship Between Change and Problem Management

We suspected that several of our problems were caused by change acRvity
We idenRed that 35% of our problems had a related change record
When we invesRgated further, we discovered several problems that had no related
change record, but had a causal code of process error or human intervenRon
When we included these addiRonal records, we idenRed that 67% of our problems
were caused by change
We found the problem with the problemit was change

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Change Management Shortcomings

We performed a deep-dive assessment of our Change Management processes to
assess eecRveness
We discovered that our current processes were loosely enforced
Managers were unaware of change acRvity
Teams werent performing peer reviews
Missing evidence of requirements and tesRng
Lack of cross-team communicaRon

Our process governance was enabling change related problems to persist, and no one
was being held accountable for failed changes
We determined that in order to reduce problems,
we needed to drive organizaRonal change accountability.

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Change Management Accountability

Who is truly accountable for a failed change?

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Change Related Problem DeterminaRon

Any approved change performed by EIT or by a third party
on behalf of EIT that caused a system failure
A component in the producRon environment (ApplicaRons, Servers, Network Switch,
etc.) fails or behaves in an unexpected manner aper the EIT change request is fullled,
e.g., causes performance issues that mandated an SRT
An unauthorized change that results in a CIE or problem

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Causal Assignment Group The Linchpin to Change Accountability

The linchpin of change
accountability was
idenRfying who caused the
problem, and whether or
not it was change
associated
We enhanced our problem
process to include a Causal
Assignment Group and
Change Associated ag
This enhancement enriched our processes,
enabling us to drive Change accountability to the correct teams.
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Change Credit Score Dened

Leveraging the FICO credit score model to drive public accountability.

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FICO Credit Score Model

Banks and creditors use the
FICO credit score to determine
the credibility of a borrower
The credit score is based on
mulRple aspects of a borrowers
credit history
As the borrower pays o debt
and improves spending habits,
their credit score improves
The credit score is made
available to all creditors, to
enable consistent accountability
of the borrower, across the
industry

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Change Credit Score Model

Leaders and peers use the
Change Credit Score to
determine the credibility
of an IT team
The Change Credit Score is based
on mulRple aspects of a teams
change management acRvity
As a team implements successful
changes, their Change Credit
Score improves
The credit score is made
available to everyone in EIT, to
enable public accountability of
the team across the organizaRon

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Change Credit Score Formula

Change Related
Customer ImpacRng
Events
Change acRvity that
caused an impact to
Cardinal Health
customers
Weighted at 50% of the
overall credit score
AcRvity for the past six
(6) months
The impact of this
metric degrades over
Rme to reect credit
score improvement as
stability is achieved

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Change Related
Problems
Problems and outages
caused by change
acRvity
Weighted at 30% of the
overall credit score
AcRvity for the past
three (3) months

Change Deployment
Success
The percentage of
changes that were
successfully deployed;
(not rolled back or
parRally implemented)
Weighted at 20% of the
overall credit score
AcRvity for the past six
(6) months

IntegraRon With ServiceNow

We added two (2) new elds to
the Assignment Group record;
Group RaRng and Group Score
A batch job runs monthly to
recalculate the credit score and
update the Assignment Group
record
This enabled usage of the credit
score informaRon in standard
reporRng and workow logic

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Driving Cultural Change

Embedding accountability into IT processes to drive cultural change.

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SocializaRon and Performance Management

We proposed the model to IT execuRve leadership; it was well received and supported
We aligned the credit score to our HR performance review raRngs; Developing,
achieving and exceeding
The IT organizaRon agreed to assign a leadership MBO to Change Credit Score
Once we idenRed how to calculate the Change Credit Score, we published the score
for each exisRng team (over 260 teams performing changes)
Publishing the rst report sparked momentum and engagement across EIT

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Public Accountability
We publish a Monthly Change Credit Report to all of EIT, which idenRes the scores by Group, Manager,
Director and VP
This report is anxiously anRcipated each month, and has driven public accountability across the
organizaRon
Poor performing teams
Group
SP-Network Global Sites
SP-Data Access
AsiaPac Network
SP-Voice Access
EIT-UC-Lync
Network Data Center
SP-Network M&A
SP-Firewall
SP-Account Admin-RightFax
SP-Voice Access Separations

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Overall
Score

Overall
Rating

850
795
781
768
768
713
493
300
506
506

Exceeding
Exceeding
Achieving
Achieving
Achieving
Achieving
Developing
Developing
Not Rated
Not Rated

Change
Related
CIEs
0
0
0
0
0
0
1
2
0
0

Change
Related
Problems
0
0
0
1
1
1
1
1
0
0

Deployment
Success

Change
Count

Open
Problems

98%
93%
100%
100%
100%
96%
100%
94%
100%
100%

202
247
5
140
8
440
72
269
0
0

0
5
0
5
1
0
0
3
0
0

Embedding The Credit Score into Change Management

We embedded the Change
Credit Score into the Change
Control Board (CCB), and
ExecuRve Change Advisory
Board (ECAB) meeRngs
Changes for teams with low
scores are scruRnized by EIT
leaders on the call
Developing teams receive a
deep-dive QC review for all
changes prior to approval

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OrganizaRonal ReacRon to the New Process

The term Change Credit Score immediately became a common term within our
culture
We witnessed healthy compeRRon, as peers would joke with each other regarding
their low credit scores
We were surprised by the number of teams with an Achieving raRng wanRng to learn
how they could earn an Exceeding raRng
We implemented a Get-to-Green program to assist developing teams
OrganizaRonal engagement in Change Management increased across the board.

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Overview of Results
The posiRve eect of change management accountability.

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Results ReducRon of Outages and Customer ImpacRng Events

We achieved a 31% reducRon of total outages, 52% reducRon of criRcal outages, and
39% reducRon of Customer ImpacRng Events

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Results ReducRon of Change Related Problems

Changed related
problems
dropped 29%
from 67% in
FY15 to 38% in
Feb-16

Timeline of
contribuRng
acRviRes

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67%

43%

Top Takeaways

1. There is a direct correlaRon between change accountability and system stability.

2. RelaRng a cultural behavior to a well known-model enhances change adopRon.
3. Public accountability drives posiRve behavior and cultural change.

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Take the Survey

Please take a moment to complete a session survey in the Knowledge16 app.

Thank You

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Benjamin Sapp

Janet Hyland

Director
IT Service Management

Manager
IT Process Management

Cardinal Health

Cardinal Health