Service Vs. Project

🔄 Update Note (ITIL 4): Since the publication of this post, ITIL has evolved significantly. In ITIL 4, the framework has shifted from the traditional service lifecycle to the Service Value System (SVS), emphasizing a more holistic and flexible approach to service management. Additionally, ITIL 4 integrates practices from Agile, DevOps, and Lean, promoting adaptability and continuous value co-creation. The introduction of value streams offers a comprehensive view of value delivery, integrating various activities beyond traditional project boundaries. While the core distinctions between services and projects discussed in this post remain relevant, we recommend consulting updated ITIL 4 guidance for the most current best practices.

A question arose recently concerning the relationship between Service Management and Project Management. This is a topic of interest to many people since on the surface both approaches seem to be fighting for some of the same work space in organizations. When we go back to the basic definitions of each we can see that the two are not in conflict, rather are very complementary. However, the relationship may not be as many people expect. I have found that the relationship is one of time: short term bursts of creation activities (outputs) inside a larger ongoing management lifecycle (outcomes).

Let us start with the definition of service and service management (according to ITIL^®):

Service: A means of delivering value to customers by facilitating outcomes customers want to achieve without the ownership of specific costs and risks.

Service Management (SM): A set of specialized organizational capabilities for providing value to customers in the form of services.

Both of these definitions imply a chain of activities coming together over time to provide an outcome to a customer. These are ongoing ideas that provide both short term and long term benefits to customers. Services are outcome not output based.

Now we will turn to the definition of project and project management (according to PMBOK^®):

Project: A temporary endeavor undertaken to create a unique product, service, or result.

Project Management: The application of knowledge, skills and techniques to execute projects effectively and efficiently.

These terms imply defined time frames with unique outputs delivered at the end of the time frame. This includes the creation not just of software, but services, infrastructure, process, organization, and just about any other output. Projects are output not outcome based.

When we put these ideas together we can recognize that a project is a method by which we design and transition a service into existence. Projects are defined bursts of activity (including the development, building, testing and delivery) that result in the creation of services that bring value to the customer. Thus, project management is the short term control and guidance of projects that result in long term value-laden services. Once a project completes its objective or goal of creating a service, then the project closes until we need to do the next burst of creation. When a project closes, then the activities associated with project management will end as well.

Since services are lifecycle (repeatable and long term) in nature, service management is an ongoing lifecycle-based approach to strategizing, designing, transitioning, operating, and improving services to ensure long-term, consistent, and ongoing value to the customer. Service Management looks not just at the creation aspect of a service, but the entire lifecycle: conception, creation, growth, maturity, and even retirement.

By seeing that project work and the discipline of project management resides as one of the many methods that come together inside the overall lifecycle of a service to create value for customers, we find that service management and project management work very well together.

Four Service Characteristics

Recently I came across several articles by researchers and experts that laid out definitions and characteristics of services. ITIL provides us with a definition that can help drive the creation of value-laden services: A means of delivering value to customers by facilitating outcomes customers want to achieve without the ownership of specific costs and risks. An area that ITIL is not so clear is in terms of service characteristics. Several researchers and experts put forth that services have four basic characteristics (IHIP): Intangibility—Services are the results of actions not things. They have no physical presence and represent a logical set of elements. One way to think of service is “work done for others.” Heterogeneity—Also known as “variability”; services are unique items because of the mechanisms used to deliver services, which is people. Because the people element adds variability, the service is variable. This holds true, especially for the value proposition—not eve...

What Is A Service Offering?

The ITIL 4 Best Practice Guidance defines a “Service Offering” as a description of one or more services designed to address the needs of a target customer or group. As a service provider, we can’t stop there! We must know what the contracts of our service offering are and be able to put them into context as required by the customer. Let’s explore the three elements that comprise a Service Offering. A “Service Offering” may include: Goods, Access to Resources, and Service Actions 1. Goods – When we think of “Goods” within a service offering these are the items where ownership is transferred to the consumer and the consumer takes responsibility for the future use of these goods. Example of goods that are being provided in the offering – If this is a hotel service then toiletries or chocolates are yours to take with you. You the consumer own these and they are yours to take with you. ...

What is the difference between Process Owner, Process Manager and Process Practitioner?

This article was originally published in 2015. With the Introduction of ITIL 4, some of this best practice has changed. See ITIL 4 and the Evolving Role of Roles . Updated Definitions in ITIL 4: Process Owner: In ITIL 4, the concept of 'processes' has expanded into broader 'practices.' Consequently, the Process Owner is now often referred to as the 'Practice Owner.' This individual is accountable for the overall design, performance, integration, and improvement of a specific practice within the organization. They ensure that the practice achieves its intended outcomes and aligns with the organization's objectives. Process Manager: Now commonly known as the 'Practice Manager' in ITIL 4, this role is responsible for the day-to-day management of the practice. The Practice Manager ensures that activities are carried out as intended, manages resources assigned to the practice, and oversees the practitioners performing the work. Process Practit...

Search