2.144.2 Business Capacity Management

Manual Transmittal

September 23, 2015

Purpose

(1) This transmits a revised Business Capacity Management (BCap) Process

Material Changes

(1)

  • Update to current Integrated Process Management (IPM) template

  • Changed the role “Business Capacity Manager” to “Capacity Manager

  • Changed the role “Business Capacity Analyst” to “Capacity Analyst”

  • Reduced output to only the Capacity Plan

Effect on Other Documents

IRM 2.144.2 dated October 10, 2014 is superseded

Audience

The Business capacity Management Process is applicable to all ACIO areas with responsibility for Capacity management

Effective Date

(09-23-2015)

Terrence V. Milholland
Chief Technology Officer

Process and Procedure

  1. Business Capacity Management

Introduction

  1. This document describes the formal process for implementing the requirements of the Business Capacity Management process. It provides an operational definition of the major components of the process and how to perform each step in the process. This document also describes the logical arrangements of steps that are essential to successfully completing the process and achieving it desirable outcome.

Administration
  1. All proposed changes to this document should be submitted in writing, with supporting rationale, to the Solution Engineering.

Overview

  1. A process is defined as “A set of related activities that accomplish a common goal”. The process definition laid out in this document further breaks down these Activities into Tasks, each of which have a complete set of attributes defined such as data and tool specifications and the role(s) responsible for executing the tasks. The document also includes process goal and objectives, metrics, role definitions, policies and other process related attributes.

Process Description
  1. The Business Capacity Management process translates business needs and plans into requirements for service and IT infrastructure, ensuring that the future business requirements for IT services are quantified, designed, planned and implemented in a timely fashion.

Goal
  1. The process goal describes a specific purpose or achievement toward which the efforts of the process are directed. Each process has a specific focus and when combined with the other processes, forms a comprehensive framework for delivering and managing services.

    • The goal of Business Capacity Management is to ensure that the capacity of IT services and the IT infrastructure is able to deliver the agreed service level targets in a cost effective and timely manner. Business Capacity Management considers all resources required to deliver the IT service, and plans for short, medium and long term business requirements

Objectives
  1. Process objectives describe material outcomes that are produced or achieved by the process. The following is a list of objectives for this process:

    • To ensure that SLA’s are met in the capacity plans

    • To provide Capacity Service Level Targets

    • To gather Capacity Service Level Metrics

Workflow

  1. A workflow consists of Activities and Tasks, Inputs and Outputs, Roles, and Flow Diagrams. It describes the tasks, procedural steps, organizations or people involved, required input and output information, and tools needed for each step of the process.

Main Process Diagram
  1. Business Capacity Flow Diagram

    Figure 2.144.2-1

    This is an Image: 61946001.gif

    Please click here for the text description of the image.

Inputs
  1. Process inputs are used as triggers to initiate the process and to produce the desired outputs. Users, stakeholders or other processes provide inputs. The following is a list of inputs for this process:

    Input Name Description Supplier
    Business Information Information about the business strategy, plans and requirements. Organization's Business Groups
    Service & Information Technology (IT) Component Relationships Information about the Services, the relationship to the business requirements, and infrastructure components needed. Business and IT Strategies, Service Strategy, IT plans and current budgets
    Component Performance and Capacity Information Capacity and Performance specifications from the manufacturer or developer; detailing expected performance and thresholds. Manufacturers and Suppliers
    Service Performance Issues Capacity related Incidents and Problems plus service level breaches. Incident and Problem Management processes
    Service Information Details of the Service Level Requirements, Service Level Agreements and data about the performance and utilization of the Services. SLM process
    Financial Information Information about the cost of providing a service. This will include, hardware, software, Component costs, and support and maintenance charges. Financial Management process
    Change Information (Request for Change) Capacity Management is responsible for assessing the impact of all proposed changes on the performance of infrastructure and services being provided. Change Management process
    Performance Information Current and historical performance and utilization information for IT services and IT infrastructure components. Capacity Management Information System (CMIS)
    Configuration Management System (CMIS) Information Configuration data on the components, services and relationships. Configuration Management System (CMIS)
    Workload / Operational Information Information about job schedules, operational tasks, and services dependencies. IT Operations team
    Patterns of Business Activity (PBA) An analysis of the workload showing how this varies according to demand. Demand Management
Outputs
  1. Each process produces tangible outputs. These outputs can take the form of products or data and can be delivered to a user or stakeholder, or, they can be used as inputs to other processes. Outputs are measurable in terms of quantity and quality. The following is a list of outputs for this process:

    Name Description Recipient
    Capacity Plan The Capacity Plan details capacity targets based on Service level requirements, current performance and utilizations, future requirements, capacity projections, capacity issues and plans for improving performance and satisfying business IT needs.
    • CMIS

    • Service Level management

    • Service Manager

    • Business Stakeholders

    • Operational Manager

    • Higher Authority

Activities
  1. An activity is a major unit of work to be completed in achieving the objectives of the process. A process consists of a sequence of related activities that transforms inputs into outputs and performed by the roles defined in the process. Identify the activities in the process and provide a brief description. The activities must correspond with the high-level process flow diagram above. The following is a list of activities for this process:

    ID Name Description
    BCap 1.0 Plan the Business Capacity Management Strategy The IT Strategic Plan lays the foundation for the Capacity Management process. The plan reflects an understanding of how IRS IT Projects utilizes IT Enterprise resources to enable key processes. With an understanding of the interrelationships among IT processes Capacity Management will be in a good position to estimate capacity needs. Capacity Management expresses business requirements into capacity terminology i.e. services and component needs and aggregates them with the common Infrastructure in ways which identify commonalities and areas where resources might be efficiently shared without unacceptable risks.
    BCap 2.0 Negotiate Service Level Agreements and implement Changes Service Level Agreements (SLAs) should include details of the anticipated service throughputs and the performance requirements. The purpose of this step is to provide Service Level Management (SLM) with targets that have the ability to be monitored and upon which the service design has been based. Confidence that the service design will meet the Service Level Requirements (SLR) and provide the ability for future growth can be gained by using modeling. Capacity will assess, Agree and document new and updated requirements.
    BCap 3.0 Review Component Performance BCap ensures the monitoring of the utilization of underlying components. All of the collected data is recorded, analyzed, and reported. Therefore, the purpose of this step is to ensure that the performance of the solution(s) meet the business requirements.
    BCap 4.0 Develop the Capacity Plan The development and update of a Capacity Plan should occur at pre-defined intervals. It should be published annually, in line with the business or budget lifecycle, and completed before negotiations future budgets. The purpose of the Capacity Plan is to document what capacity is needed in the future and at what cost. Also, the Capacity Plan forecasts hardware upgrades or additional equipment needed to meet future service level objectives and includes information on sizing of any new systems proposed. The Capacity Plan documents cost constraints and availability or reliability requirements. The plan should discuss current utilization rates and service performance. It should be based upon business strategies and explicitly recognize business strategic and operational plans and forecasts in it’s estimates of future requirements. Recommendations should include estimates of necessary resources, relevant impacts, associated costs and benefits, etc.
    BCap 5.0 Review the Capacity Plan The purpose of Capacity Plan review is to periodically re-issue the updated plan to take into account changes in business plans, to report on the accuracy of forecasts and to make or refine recommendations.
    BCap 6.0 Review SLAs and Service Catalog Business Capacity Management assists SLM in understanding the Customers' Capacity requirements, for example in terms of required response times, expected throughput and pattern of usage, including the terminal population. The purpose of this Business Capacity Management step is to facilitate the SLA negotiation process by providing possible solutions to a number of scenarios. For example, if the terminal population is less than 20 then response times can be guaranteed to be less than two seconds. If more than 20 Users connect then extra network bandwidth is needed to guarantee the required response time.
Roles
  1. Each process defines at least one role. Each role is assigned to perform specific tasks within the process. The responsibilities of a role are confined to the specific process. They do not imply any functional standing within the hierarchy of an organization. For example, the process manager role does not imply the role is associated with or fulfilled by someone with functional management responsibilities within the organization. Within a specific process, there can be more than one individual associated with a specific role. Additionally, a single individual can assume more than one role within the process although typically not at the same time. The following roles have been identified for this process:

    Role Description Definition of Responsibility
    Capacity Manager
    • Ensures process procedures are followed

    • Represents interests of Capacity Management at meetings and functions

    • Receives and acquires Higher Authority support as needed

    • Verifies and adjusts parameters used in the planning process

    • Adds and reviews system life cycle performance design criteria and production acceptance tests

    • Recommends resource re-allocations

    • Ensures that the Capacity Plan is current and that it tracks business growth and trends

    Capacity Analyst
    • Produces Capacity Plan with a forecast far enough ahead to take account of changes in IT capacity that comply with business plans and IT plans

    • Documents the need for Hardware, Software, and Component upgrades or additional equipment, based on SLRs, cost constraints, reliability and availability

    • Produce regular management reports including current usage of Components, expected trends and forecasts

    • Responsible for Capacity Management documentation

    Higher Authority
    • Approve resources to meet capacity requirements

    • Review and recommend capacity improvement recommendations

    • Review summary performance information describing capacity

    • Act as the final point of escalation for capacity issues

    Operational Manager
    • Provide ongoing maintenance of Configuration Items (CI) which affects their operation and institute measures to keep them operating at peak performance

    • Assist in describing the service chains associated with service provisioning

    • Participate in discussions of capacity

    • Meeting Operational Level Objectives and explaining variances from targets.

    Business Stakeholders
    • Negotiate capacity targets and sign-off on targets in Operational and/or Service Level Agreements

    • Review capacity performance against target and participate in preparation and recommendation of any remedial actions

    • Participate in preparation and review of Capacity Plan

    • Provide information on capacity

    Service Manager
    • Ensures that services are operational

    • Reviews Capacity Plans

Procedure
  1. Identify the Tasks and Roles for each Activity

BCap 1.0 Business Capacity Management
  1. The tasks and roles for each activity are the following for this process are the following:

    ID Task Name and Description Role RACI
    BCap 1.1 Review existing Capacity
    • Capacity Manager

    • Capacity Analyst

    • R

    • C

    BCap 1.2 Review approved RFC(s)
    • Capacity Manager

    • Capacity Analyst

    • R

    • C

    BCap 1.3 Analyze Business Information
    • Capacity Manager

    • Capacity Analyst

    • R

    • C

    BCap 1.4 Analyze Service Performance Issues
    • Capacity Manager

    • Capacity Analyst

    • R

    • C

    BCap 1.5 Analyze Service Information
    • Capacity Manager

    • Capacity Analyst

    • R

    • C

    BCap 1.6 Analyze Financial Information
    • Capacity Manager

    • Capacity Analyst

    • R

    • C

    BCap 1.7 Analyze Performance Information
    • Capacity Manager

    • Capacity Analyst

    • R

    • C

    BCap 1.8 Analyze CMIS Information
    • Capacity Manager

    • Capacity Analyst

    • R

    • C

    BCap 1.9 Analyze Patterns of Business Activity
    • Capacity Manager

    • Capacity Analyst

    • R

    • C

    BCap 1.10 Forecast Capacity demands
    • Capacity Manager

    • Capacity Analyst

    • R

    • C

    BCap 1.11 Store Capacity Plan and supporting material in CMIS
    • Capacity Manager

    • Capacity Analyst

    • R

    • C

BCap 2.0 Negotiate Service Level Agreements and Implement Change
  1. ID Task Name and Description Role RACI
    BCap 2.1 Review Capacity Plan review results
    • Capacity Manager

    • Capacity Analyst

    • Operations Manager

    • R

    • C

    • I

    BCap 2.2 Review SLA Performance
    • Capacity Manager

    • Capacity Analyst

    • Operations Manger

    • R

    • C

    • C

    BCap 2.3 Conduct impact analysis of recommended SLA changes, and conduct modeling.
    • Capacity Manager

    • Capacity Analyst

    • Operations Manger

    • R

    • C

    • I

    BCap 2.4 Review recommendations for SLA changes with SLM
    • Capacity Manager

    • Capacity Analyst

    • Operations Manger

    • R

    • C

    • I

    BCap 2.5 Store artifacts in the CMIS as necessary
    • Capacity Manager

    • Capacity Analyst

    • Operations Manger

    • R

    • C

    • I

BCap 3.0 Review Component Performance
  1. ID Task Name and Description Role RACI
    BCap 3.1 Review Capacity Plan review results
    • Capacity Manager

    • Capacity Analyst

    • R

    • C

    BCap 3.2 Review SLA
    • Capacity Manager

    • Capacity Analyst

    • R

    • C

    BCap 3.3 Review component performance, capacity information and reports
    • Capacity Manager

    • Capacity Analyst

    • R

    • C

    BCap 3.4 Develop recommendations for changes to components
    • Capacity Manager

    • Capacity Analyst

    • R

    • C

    BCap 3.5 Store artifacts in the CMIS as necessary
    • Capacity Manager

    • Capacity Analyst

    • R

    • C

BCap 4.0 Develop Capacity Plan
  1. ID Task Name and Description Role RACI
    BCap 4.1 Produce or revise the capacity plan
    • Capacity Manager

    • Capacity Analyst

    • R

    • C

BCap 5.0 Review the Capacity Plan
  1. ID Task Name and Description Role RACI
    BCap 5.1 Review the Capacity Plan
    • Capacity Manager

    • Operation manager

    • Business Stakeholder

    • R

    • I

    • C

    BCap 5.2 Approve the Capacity Plan
    • Higher Authority

    • R

    BCap 5.3 Baseline the Capacity Plan
    • Capacity Manager

    • R

BCap 6.0 Review SLA’s and Service Catalog
  1. ID Task Name and Description Role RACI
    BCap 6.1 Review SLAs
    • Capacity Manager

    • Operation manager

    • Capacity Analyst

    • Business Stakeholder

    • R

    • C

    • C

    • C

    BCap 6.2 Record review results
    • Capacity Manager

    • R

    BCap 6.3 Store review artifacts in the CMIS as necessary
    • Capacity Manager

    • Capacity Analyst

    • R

    • C

Process Control

  1. Activities involved in ensuring a process is predictable, stable, and consistently operating at the target level of performance.

Controls
  1. Process controls represent the policies and guiding principles on how the process will operate. Controls provide direction over the operation of processes and define constraints or boundaries within which the process must operate. The process controls are the following:

    Name Description
    Capacity Management Policy Business Capacity Management is a required activity mandated by the IRS CTO
    Scope Business Capacity Management process is limited to all ACIO areas with responsibility for Capacity Management
    Process Metric Business Capacity Process Monitors will continuously verify to what degree the Business Capacity Management Process is being used.
Metrics
  1. Management will regularly set targets for process performance, gather quantifiable data related to different functions of the Business Capacity Management process, and review that data in order to make informed decisions and take appropriate corrective action, if necessary. All Measurements will have a defined data dictionary, map to the organizational strategic goals, and be documented in a Process Measurement Plan. The Process Measurement Plan template is available in the IT PAL.

Policies
  1. Policies outline a set of plans or courses of action that are intended to influence and determine decisions or actions of a process. Policies provide an element of governance over the process that provides alignment to business vision, mission and goals.

    Process Management
    Statement: The Business Capacity Management process will have a single Process Owner and a separate Process Manager, responsible for implementation and ensuring adherence to the process. The process will be reviewed regularly to ensure that it continues to support the business requirements of the enterprise. The process will be designed and developed based on ROI to the business. Process metrics will be focused on providing relevant information as opposed to merely presenting raw data.
    People:
    Statement: Roles and responsibilities for the process must be clearly defined and appropriately staffed with people having the required skills and training. The mission, goals, scope and importance of the process must be clearly and regularly communicated by upper management to the staff and business customers of IT. All IT staff (direct and indirect users of the process) shall be trained at the appropriate level to enable them to support the process
    Rationale: It is imperative that people working in, supporting or interacting with the process in any manner understand what they are supposed to do. Without that understanding Business Capacity Management will not be successful.
    Process:
    Statement: Modifications to the Business Capacity management process must be approved by the Process Owner. The design of the process must include appropriate interfaces with other processes to facilitate data sharing, escalation and workflow. The process must be capable of providing data to support real-time requirements as well as historical/trending data for overall process improvement initiatives. The process must be fully documented, published and accessible to the various stakeholders of the process. The process will be reviewed on a periodic basis in order to ensure it continues to support organizational goals and objectives (continuous improvement). The process must include Inputs, Outputs, Controls, Metrics, Activities, Tasks, Roles and Responsibilities, Tool and Data requirements along with documented process flows. The process will be kept straight forward, rational, and easy to understand.
    Rationale: The process must meet operational and business requirements.
    Technology and Tools:
    Statement: All tools selected must conform to the enterprise architectural standards and direction. Existing in-house tools and technology will be used wherever possible, new tools will only be entertained if they satisfy a business need that cannot be met by current in-house tools. The selection of supporting tools must be process driven and based on the requirements of the business. Selected tools must provide ease of deployment, customizing and use. The selected tools must support heterogeneous platforms. Automated workflow, notification and escalation will be deployed wherever possible to minimize delays, ensure consistency, reduce manual intervention and ensure appropriate parties are made aware of issues requiring their attention. The tools used by this process are the following
    • Capacity Management Information System

    Rationale: Technology and tools should be used to augment the process capabilities, not become an end themselves.
Tailoring Guidelines
  1. The tailoring guidelines identify the allowable variations of the IT organization’s standard process as needed for adjustments (adding, deleting, modifying) relative to specific operational or functional needs of another organization. Process tailoring is about roles and procedures, not the standard process or major activities defined in this process. All tailoring request, with supporting rationale, must be submitted in writing to and approved by the Business Capacity Management Process owner.

Training

  1. Process training involves training all stakeholders about key processes that are crucial for an organization to deliver business objectives. Training provides clarity to employees on a set of procedures that needs to be carried out as part of the process and the best possible way to do them. List below the training resources available for this process:

    • Capacity Management, ELMS course #5775

Exhibits

  1. Acronyms and Glossary

Exhibit A: Acronyms
  1. Acronyms

    Acronym Definition
    BCap Business Capacity Management
    CI Configuration Item
    CMMI Capability Maturity Model Integration
    CMIS Capacity Management Information system
    ES Enterprise Services
    IPM Integrated Process Management
    IRM Internal Revenue Manual
    IRS Internal Revenue Service
    IT Information Technology
    ITIL Information Technology Infrastructure Library
    ITSM Information Technology Service Management
    PAL Process Asset Library
    PBA Patterns of Business Activity
    PD Process Description
    PMI Project Management Institute
    SLA Service Level Agreement
    SLM Service Level Management
    SLR Service Level Requirements
Exhibit B: Glossary
  1. Glossary

    Term Definition
    Business Capacity Management A strategic capacity management process done when decisions to expand or contract the infrastructure are made due to expected changes in demand by the business (addition of new applications, new infrastructure, etc.).
    RACI The RACI model is based on the principle that people act in one of four ways when executing a task. It accounts for the fact that more than one role may be active in performing a specific task while clearly defining specific responsibilities for that role. While many roles may be involved in a task only one is Accountable for the results. The actions are: R Responsible for the action (may do the task) A Accountable for the action (including approval) C Required to be Consulted on the action I Required to be Informed of the action If a task does not have an Accountable role indicated then the Responsible role is assumed to be accountable for the task.
    Service Level Agreement A service-level agreement is part of a service contract where the level of service is formally defined. In practice, the contracted delivery time (of the service) or performance.
    Service level management A set of practices for IT service management (ITSM) that focus on aligning it services with the needs of the business
    Service Level Requirements A statement from a customer to a service provider describing their service expectations. It includes the requirements of the customer from the service provider