ITIL Strategy (Version 5) : The “mortar” holding the Service Value System “bricks” together

David Sweeney - Lead Author, ITIL Strategy

In today’s highly competitive market for products and services, it is vital for organizations to be hyper-focused on what they’re doing and where they direct their activities.

Essentially, being able to create and implement successful initiatives is what gives businesses a clear direction and a competitive edge in the market. However, the guidance for learning how to do this can often be more theoretical than practical.

Consequently, the core concept behind the ITIL Strategy module in ITIL (Version 5) is to provide a workable strategy management model.

While the previous strategy-focused modules within the ITIL framework focused on ITSM specifically, we found that practitioners wanted to know more about how to do strategy.

Within ITIL (Version 5), ITIL Strategy frames the context of digital product and service management, giving candidates a practical model to develop and implement strategies.

Cascading strategy through the organization

Traditionally, professionals have often felt that senior leadership is responsible for setting strategy. Conversely, the capabilities that the ITIL Strategy guidance offers are important for managers and their teams at all levels. And one of the key concepts it outlines is cascading strategy.

For example, if a company wants to move its computer servers to the cloud, the organization must decide how to implement this and then cascade the strategy through the relevant teams in a programme of projects covering areas such as a migration plan, training staff in new skills, managing change for the service desk, enabling the marketing team to do its work, etc.

Therefore, the range of skills that empower an organization’s C-suite to formulate strategy must be understood at lower levels of the organization because they are the ones who will be charged with implementing it.

But why does ITIL Strategy contain these concepts, and why now?

The need for speed

Ten years ago, the impact of volatility, uncertainty, complexity and ambiguity (VUCA) affected about 30% of the digital product and service management environment. Today, it’s 100%.

In the face of this reality, many organizations remain far behind and are trying to catch up without fully understanding the challenge. This is why cycles of strategy development and implementation must be much faster.

Therefore, ITIL Strategy emphasizes this point and offers techniques to increase the speed of developing and implementing strategies.

For example, a model already known for its speed of iteration, OODA – observe, orient, decide, act – is adapted in the guidance to become OODP, replacing act with plan. This approach enables rapid strategy cycle development while constantly assessing the situation. In addition, it allows strategic durability and a longer implementation cycle with a feedback pipeline.

The ITIL Strategy module gives organizations struggling to catch up a model for rapid strategy cycles. And, for candidates obtaining this certification early in their career, the extra knowledge will support their quest both to secure a job, and to get promoted sooner.

A practical approach to strategy

By taking strategy management cycles and breaking them down into actionable steps, ITIL Strategy is designed for practical application.

For example, strategy development involves observing external signals. The module provides a structured table that outlines key external factors to scan and consider. These factors may include legal aspects such as regulations, labour laws, health and safety requirements, and intellectual property, along with relevant examples and metrics for each area.

The guidance includes tables that translate these considerations into clear, functional steps, while supplementary materials—such as templates and practice guides—support informed decision-making based on an analysis of the external environment.

The capabilities that candidates develop help them understand what is essential in strategy and what good looks like, providing them with a clear method for strategy management.

AI and its impact on strategy

In the context of ITIL Strategy, AI impacts the required speed of strategy development and implementation. It also brings into focus those capabilities that it can’t provide, such as relationships and experience-based decision making. ITIL Strategy sees these as strategic opportunities.
From an organizational standpoint, AI is considered a workforce, alongside human agents, that should be assigned work within the organization's value streams.

Therefore, the techniques outlined in the ITIL Strategy module can inform the organizational strategy for how to leverage AI in value creation through products, value streams and organizational models that will, ultimately, benefit customers.

ITIL Strategy, universally applicable and vital to ITIL Strategic Leaders

There are few people in an organization who wouldn’t benefit from training and getting certified in ITIL Strategy. Among the key roles for whom the guidance is highly relevant are CIO, IT Director, Chief Product Officer, Digital Transformation Manager, Service Owner and Programme Manager. But any leader or manager responsible for an organization must understand strategy development and implementation to effectively carry out the strategies of the larger organization.

And for those aiming to achieve the ITIL Strategic Leader designation, you can’t be successful without it.

Strategy itself is a capability that cuts across all areas of the enterprise: the “mortar” in the “brick wall” that holds the whole structure together.

Having these competencies means professionals and their organizations become more agile in strategy management; They are better able to define and implement strategy, while steering the direction of the business, much faster.

As more teams work this way, creating work that aligns with the strategic initiatives underpinning business success becomes part of the fabric of the organization.

In a world where AI and volatility redefine competitive advantage daily, strategy cannot remain theoretical. Build the capability your organization needs.
Get certified in ITIL Strategy (Version 5) and lead with confidence.