Which one of the following is the CORRECT set of steps for the continual service improvement approach?

'Devise a strategy; Design the solution' are activities associated with the service strategy and service design lifecycle stages, not steps in the CSI seven-step improvement approach.

'Where do we want to be?' is the third step in the CSI approach, not the starting point - the vision and current baseline must be established before improvement targets can be set.

'Identify the required business outcomes' is not a step in the ITIL CSI improvement approach; it conflates CSI terminology with service strategy activities.

The CSI approach begins with 'What is the vision?' to align improvement efforts with business strategy and goals, followed by 'Where are we now?' to establish a baseline through assessments and measurements. These first two steps are essential because improvement efforts must be anchored to both a desired future state and an accurate understanding of the current situation before targets or action plans can be meaningfully defined.