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Chapter 15 of 20

Continual Improvement and the ITIL Continual Improvement Model

Tie everything together with continual improvement, using the ITIL model to move from vision to measurable progress across all parts of the Service Value System.

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Continual Improvement: Why It Matters Now

Continual Improvement in ITIL

In ITIL Foundation (Version 5), continual improvement is the thread that connects guiding principles, the service value chain, and the overall service value system.

Canonical Definition

ITIL defines continual improvement as: "A recurring activity performed at all levels to ensure that an organization’s performance continually meets stakeholders’ expectations."

Key Phrases Explained

  • Recurring activity: not a one-off project.
  • At all levels: strategy, practices, services, teams.
  • Meets stakeholders’ expectations: what customers, users, sponsors, and others care about.

Why It Matters in 2026

In fast-changing digital and AI-enabled services, continual improvement keeps services relevant, secure, compliant, and valuable over time.

Continual Improvement in the SVS

In the service value system, continual improvement is both a specific value chain activity (improve) and a mindset that should influence every activity and every practice.

The ITIL Continual Improvement Model: Overview

The 7-Step Model

The ITIL continual improvement model has 7 steps: 1) What is the vision? 2) Where are we now? 3) Where do we want to be? 4) How do we get there? 5) Take action. 6) Did we get there? 7) How do we keep the momentum going?

Navigation Analogy

Think of the model as a navigation system: vision is your destination, assessment and planning are your route, action is the journey, evaluation checks arrival, and momentum keeps you improving.

Link to Guiding Principles

The model is powered by the seven guiding principles: focus on value, start where you are, progress iteratively with feedback, collaborate and promote visibility, think and work holistically, keep it simple and practical, optimize and automate.

Exam Relevance

For the exam, you must recognize the steps, know their logical order, and be able to match scenario descriptions to the correct step and relevant guiding principles.

Steps 1–3: From Vision to Target State

Step 1: What Is the Vision?

Improvements must align with the organization’s vision and strategy, and support value co-creation between provider and consumer.

Step 2: Where Are We Now?

Use data to understand current performance and capabilities: baselines, SLAs, surveys, incident trends, and maturity assessments.

Exam Trap: 2 vs 3

Do not confuse assessment (where are we now) with target setting (where do we want to be). Assessment describes the present; targets describe the future state.

Step 3: Where Do We Want To Be?

Define a measurable target state, considering both utility (functionality) and warranty (assurance), and make targets realistic and time-bound.

Steps 4–7: From Plan to Momentum

Step 4: How Do We Get There?

Design value streams and initiatives that move from current to target state, using simple, practical changes and appropriate optimization and automation.

Step 5: Take Action

Execute improvements through service value chain activities such as design and transition, obtain/build, deliver and support, and engage.

Step 6: Did We Get There?

Compare actual results with target metrics from step 3 using KPIs, satisfaction scores, and reliability measures.

Step 7: Keep the Momentum

Capture lessons learned, update practices, recognize success, and plan the next iteration so improvement becomes part of the culture.

Worked Example: Improving an Incident Management Practice

Scenario Overview

A university IT help desk has 16-hour average resolution times and poor support for online exams. Students complain that technical issues affect their grades.

Steps 1–3 Applied

Vision: stress-free digital learning. Now: 16-hour resolution, 30% exam incidents unresolved in time. Target: fast response, 95% resolved before exam end, higher satisfaction.

Steps 4–5 Applied

Plan: new exam incident category, AI chatbot triage, extra staff during exams. Action: update practices and tools, train staff, run a mid-term pilot.

Steps 6–7 Applied

Results: 6-minute response, 96% resolved in time, 4.5/5 satisfaction. Momentum: standardize, share results, and plan further improvements like better knowledge articles.

Continual Improvement Across the Service Value System

Improvement in the SVS

The service value system shows how all components work together to enable value creation. Continual improvement acts across all of them.

Service Value Chain Activities

The service value chain has six activities: plan, improve, engage, design and transition, obtain/build, deliver and support. Improvement is one activity and a mindset for all.

Practices and Services

Each practice and each service or service offering should have its own improvement backlog and metrics, targeting both utility and warranty aspects.

Strategic Level

At governance and strategy level, continual improvement refines policies, risk appetite, and investments based on performance and stakeholder feedback.

Thought Exercise: Mapping Improvements to the Value Chain

Use this exercise to connect continual improvement activities to specific service value chain activities.

Recall the six service value chain activities (in order): plan, improve, engage, design and transition, obtain/build, deliver and support.

Task 1: Classify activities

For each activity below, decide which value chain activity it best represents. Think it through before checking your reasoning.

  1. A product team analyzes usage analytics and customer feedback to decide which AI features to prioritize next semester.
  2. The service desk introduces a new script for handling password reset calls to reduce call time.
  3. Architects design how a new mobile app will integrate with existing identity and payment systems.
  4. Procurement negotiates a new cloud provider contract with better uptime and security commitments.
  5. Leadership runs a quarterly review of all services, updating the overall roadmap and risk register.

Pause and map each one to: plan, improve, engage, design and transition, obtain/build, or deliver and support.

Suggested answers (self-check):

  1. Typically improve (using feedback and data to refine the service), with a bit of plan.
  2. Deliver and support (front-line support improvement) using the continual improvement model.
  3. Design and transition (designing how a new or changed service moves into live use).
  4. Obtain/build (acquiring external service components, such as cloud services).
  5. Plan (strategic planning and prioritization across services).

Task 2: Add improvement thinking

Pick one of the five activities and quickly sketch how you would apply the 7 steps of the continual improvement model to make that activity itself better over the next year.

Quiz 1: Core Concepts of Continual Improvement

Check your understanding of the definition and model steps.

Which option best matches ITIL’s definition of continual improvement and its scope?

  1. A one-time project to redesign underperforming services so they meet customer expectations.
  2. A recurring activity performed at all levels to ensure that an organization’s performance continually meets stakeholders’ expectations.
  3. An annual management review meeting where leadership sets new KPIs for IT services.
  4. An ad-hoc process used only when major incidents reveal serious service failures.
Show Answer

Answer: B) A recurring activity performed at all levels to ensure that an organization’s performance continually meets stakeholders’ expectations.

The canonical ITIL definition you must recall is: "A recurring activity performed at all levels to ensure that an organization’s performance continually meets stakeholders’ expectations." It is not one-time, annual-only, or restricted to major failures.

Quiz 2: Steps of the Continual Improvement Model

Test your ability to recognize the correct step in a scenario.

A team compares the latest incident resolution times and customer satisfaction scores with the specific targets they set three months ago. Which step of the continual improvement model are they performing?

  1. Where are we now?
  2. Where do we want to be?
  3. Did we get there?
  4. How do we keep the momentum going?
Show Answer

Answer: C) Did we get there?

Comparing actual results with previously defined targets is step 6: "Did we get there?" Step 2 is initial assessment, step 3 is target setting, and step 7 is about sustaining and extending improvement.

Flashcards: Key Definitions and Lists

Use these flashcards to reinforce critical definitions and lists for the exam.

Continual improvement (definition)
A recurring activity performed at all levels to ensure that an organization’s performance continually meets stakeholders’ expectations.
Service (definition)
A means of enabling value co-creation by facilitating outcomes that customers want to achieve, without the customer having to manage specific costs and risks.
Service value system (definition)
A model representing how all the components and activities of an organization work together as a system to enable value creation.
Service value chain (definition)
A set of interconnected activities that an organization performs to deliver a valuable product or service to its consumers and to facilitate value realization.
Six service value chain activities (in order)
plan, improve, engage, design and transition, obtain/build, deliver and support
Seven guiding principles (list)
focus on value, start where you are, progress iteratively with feedback, collaborate and promote visibility, think and work holistically, keep it simple and practical, optimize and automate
Utility (definition)
The functionality offered by a product or service to meet a particular need.
Warranty (definition)
Assurance that a product or service will meet agreed requirements.
Value co-creation (definition)
The joint activities performed by a service provider and a service consumer to create value.
ITIL continual improvement model: 7 steps (keywords)
1) What is the vision? 2) Where are we now? 3) Where do we want to be? 4) How do we get there? 5) Take action. 6) Did we get there? 7) How do we keep the momentum going?

Exam-Style Scenario Analysis: Spotting Continual Improvement

How to Read Scenarios

In exam questions, look for where continual improvement is being applied or missing by analyzing triggers, actions, and outcomes.

Four-Step Analysis

1) Look for triggers. 2) Identify the improvement step. 3) Map to the value chain activity. 4) Check whether it is SVS, practice, service, or team level.

Security Scenario Summary

A spike in security incidents leads to data gathering, gap analysis, and a roadmap. This shows step 2 (assessment) and step 4 (planning) in the improve and plan activities.

Use in Your Study Path

Apply this breakdown method to Skarp mock exam questions. Your next diagnostic and gap guide will show if continual improvement scenarios are a weak area.

Key Terms

service
A means of enabling value co-creation by facilitating outcomes that customers want to achieve, without the customer having to manage specific costs and risks.
utility
The functionality offered by a product or service to meet a particular need.
warranty
Assurance that a product or service will meet agreed requirements.
service offering
A description of one or more services, designed to address the needs of a target consumer group.
value co-creation
The joint activities performed by a service provider and a service consumer to create value.
guiding principles
Seven recommendations that guide an organization in all circumstances: focus on value, start where you are, progress iteratively with feedback, collaborate and promote visibility, think and work holistically, keep it simple and practical, optimize and automate.
service value chain
A set of interconnected activities that an organization performs to deliver a valuable product or service to its consumers and to facilitate value realization.
service value system
A model representing how all the components and activities of an organization work together as a system to enable value creation.
continual improvement
A recurring activity performed at all levels to ensure that an organization’s performance continually meets stakeholders’ expectations.
service value chain activities
The six key activities in the service value chain: plan, improve, engage, design and transition, obtain/build, deliver and support.

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