Contributed on December 8, 2015

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Business architecture design choices

Description

Business Architecture provide leadership, modeling, requirements analysis value propositions and strategies to set priorities for taking strategy to execution. Where it fits in the organization must be tailored to your company.

Transcript

Business Architecture Design Choices
Richard Lynch
Vice President,
Business Architecture Practice Leader
© 2015 Accelare. Proprietary and confidential. Do not copy.
Outline
• Why Business Architecture (BA)
• Organization Design Choices
– Certification
– Bolt-on
– BA CoE
• Chartering a Business Architecture Team
• BA Roles and Responsibilities
• Metrics for a BA
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Familiar Challenges
• Lack of a cohesive strategy
• Growth has slowed or stalled
• Intense pressure to trim or drastically reduce costs
– Employee Engagement after a downsizing
– Consolidation of inter company departments
• M&A activities fail to deliver promised value
• Extending the boundaries of the organization through
partnership or sourcing activities
• The pace of environmental change is faster that the
organization’s strategic planning cycle, leaving the
organization in a state of perpetual catch-up
• Regulatory Reform
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What’s Different
• Surely these are not new challenges facing companies
and their leaders. But how to attack them has changed.
So what’s different about the nature of these issues
today?
• For starters …
– Complexity has created or reinforced siloed behaviors
– Fragmentation of all the data sources across the organization
– Sharing work across many strategic partners
– Pressure on leaders to be ambidextrous: be efficient in ops and
be innovative
– Growth AND Efficiency
– The velocity of change continues to accelerate
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The Problem BA is solving
• At the heart of these issues, is a new way to look
at companies – without silos – as a collection of
inter-related capabilities needed execute
strategy.
– This is the essence of Business Architecture.
How well prepared is your company and its leadership
to engage in this dialogue to operate in this new way?
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BA Quick Assessment
Question Yes/No
We have a well-defined strategic planning process
We have a strong strategic planning group
IT is aligned to the business.
We embrace the idea of enterprise architecture
Our leaders tackle adaptive challenges (they know how to mobilize
resources and navigate in new domains and problem areas)
We value Hi-Po’s who are Strategic thinkers;
they have insights into external environment including emerging market needs;
advanced technologies; converging technologies, etc.
We are willing to fail and learn
We have a good handle on our business capabilities
including capabilities across the company.
We have strong program management office; IT and non IT projects
We have clear RACI/related accountability and dashboards
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The Tally
• If you answered yes for 8 or more questions you
practice the discipline of business architecture.
Look to certify PMs, Strategic Planners, BPM,
Internal Audit, etc. through BAA.
• If you answered 6-7, consider bolting BA onto
existing organization.
• If you answered yes 6 of or less, you probably
need to establish a BA CoE.
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Certification in Business Architectures
• Targets:
– Strategic planners; those responsible for strategy development
and execution
– Business Process design/six sigma /lean professional looking
for better ways to focus the application of their tools
– Internal Auditors to better understand the various business and
how resources should be allocated
– Enterprise architects who need a way to better align to the
business and become more relevant
– Program/Project Management Office specialist who need a way
to map projects and metrics to strategic intent
• Certification is available through the Business Architects
Association/Guild (Certified Business Architects)
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BA through Certification
Pros
• Common language
• Common methods
• Organizations already exist
• Leverage existing power base
• Other
Cons
• Slower speed of adoption of methods
• May face resistance to methods
• Approach/methods may be diluted to adapt to current process
• Other
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BA as a “Bolt-on”
• There are several potential homes for locating
the Business Architecture role within an
organization:
– Within a Program/Project Management Office
– Within an Internal Consulting Group
– Within a Strategic Planning Group
– Within a Venture Growth team
– Other?
• All of these options possess the desirable
characteristic of having a holistic perspective of
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BA as a “Bolt-on”
• Program/Project Management Office (PMO)
– Pro’s
• BA speaks the same language as the PMO: Capabilities.
• PMO’s deliver capabilities to the organization via projects,
it is therefore not a stretch to integrate BA as the
overarching process for aligning & prioritizing projects and
managing the investment roadmap.
– Cons
• Too many levels removed from the CEO?
• Positions BA more as a project management methodology
rather than a strategic process
• PMO is not necessarily a home for big picture strategic
thinkers.
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BA as a “Bolt-on”
• Internal Consulting Group
– Pro’s
• Broad exposure to a wide range of corporate problems &
issues (the type BA would address)
• Potentially agenda-free / honest broker for the BA process
• Typically staffed with strategic thinkers
– Cons
• Potentially too far removed from the CEO
– Must report to an Executive Committee member
• If the Internal Consulting Group reports into IT, then BA
risks getting labeled as an IT alignment process, not a
strategy realization process.
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BA as a “Bolt-on”
• Strategic Planning Group
– Pro’s
• BA is a logical “execution” extension of the Strategic
Planning process.
• Both leverage strategic thinkers and similar skills
• Reasonable proximity to the executive suite
• Potentially the best fit of the Bolt-on options
– Cons
• Potential for BA taking a back-seat to Strategic Planning
• Approach/methods may be diluted to adapt to current
process
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BA as a “Bolt-on”
• Venture Growth Team
– Pro’s
• Venture Growth Teams, tasked with uncovering growth
opportunities for the organization, have a very high profile with
the executive team.
• Both BA and Venture Growth are focused on the extended
forward looking horizon.
• Both look to leverage the abilities of Hi-Po’s
• Both can benefit from a clear understanding of the company’s
capability system.
– Cons
• Potentially incongruent performance drivers (growth v.
alignment)
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BA Center of Excellence
• A CoE is simply a centralized (physical or
virtual) body of knowledge and subject
matter expertise on a specific field,
function or technology that utilizes a
structured set of processes, procedures
and activities that support high levels of
efficient and effective performance.
• In support of this approach, the CoE is
typically staffed with subject matter
experts in the chosen field who promote
collaboration and the application of
knowledge, techniques, tools and
processes.1
• Can include members outside the
company.1 – American Institute for Innovation Excellence
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Leverage for Effectiveness
• Knowledge work: specialized expertise
that is leveraged
• A need for access to best practices
inside and outside of organization
• Strong desire to share capabilities
across boundaries
• Solutions oriented and problem solving
in nature
• Delivered through an expert model
approach
• Benefit of co-location of SMEs
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BA CoE
Pros
• Elevates importance of BA
• Dedicated resources
• Consistent methods and approach across enterprise
• Higher visibility
Cons
• Threat to related organizations
• If it doesn’t report to C-Suite, impact diluted
• Complex linking mechanisms
• Pressure to sub-optimize to keep busy
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Chartering a Business Architecture CoE
• The BA (or Strategy to Execution (BA) Office) will
provide leadership, modeling, analysis and directives on
determining best practices, value propositions and
strategies to set priorities for taking strategy to execution.
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BA CoE Charter
• Support and promote the future state characteristics − by emphasizing
the maturation of applicable business capabilities in the future state
operating model.
• Support and promote the core strategies − by articulating the
supporting goals/objectives and metrics to monitor their fulfillment.
• Deliver Business Enabling Solutions − that support business agility
and provide differentiating capabilities to the market place.
• Enable Enterprise Products and Services − act as a broker providing
the most effective and efficient solutions (build, buy, or reuse) to
meet the business need.
• Address Regulatory and Insurance Market Changes − ensure that we
are prepared for market opportunities, competition, and regulatory
changes.
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Chartering a Business Architecture CoE
S2E Office
Analysts
Architects
Corporate
Governance
Steering Committee
President
CFO
COO
CIO
Business Architecture
S2E Director
Backlog/Repository
Librarian
Tech Writer/Trainer
Portfolio
Management
Project Managers
Execution Leaders
Program Manager
Portfolio Manager
Business Architects
Enterprise
Architecture
Enterprise Architects
Stakeholders
Division VP
Department Director
Account Manager
Subject Matter
Experts
Market/Client/Partner
Representatives
Capability Owners
Key Domain Leaders
Business Analysts
Process Modelers
Quality Assurance
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BA Office
Role and Responsibilities
• Aligning client strategic goals and objectives with decisions
regarding; capabilities, sourcing, organization, products and services
and key business and IT initiatives.
• Acting as proponents framework, the Business Architect works to
develop an integrated view of the enterprise using a repeatable
approach, cohesive framework (preferably in WhatFirst), and
available industry standard techniques (e.g., Blue Ocean tools).
• Analyzing the activities of a particular business unit or line of
business and recommending the projects that the business unit
should perform to develop or improve the capabilities to achieve its
business objectives in the most effective and efficient way.
• Illustrating the alignment (or lack thereof) between strategic goals
and key business decisions regarding products and services;
partners and suppliers; organization; capabilities; and key business
and IT initiatives.
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Role and Responsibilities
• Analyzing of business drivers and business operations, through the
use of business analysis frameworks and related networks that link
these aspects of the enterprise together.
• Developing an integrated view of the business, in the context of the
enterprise, using a repeatable approach, cohesive framework, and
available industry standard techniques.
• Providing direct input into the governance cycle for the funding,
oversight, and realization of business projects.
• Ensuring that business and IT projects are aligned to support the
achievement of key goals and specific business scenarios are
considered.
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Gained through these kinds of
experiences
• Directing and managing large-scale strategic business transformation
projects
• Creating Blue Ocean, Emerging Business Opportunities or New Growth
Platforms
• Planning and deploying both business and IT initiatives; including strategic
sourcing
• Modeling business capabilities
• Capturing the tactical and strategic enterprise goals that provide traceability
through the organization and are mapped to metrics that provide ongoing
governance.
• Describing the primary business functions of the enterprise and distinguish
between customer-facing, supplier-related, business execution and business
management functions.
• Annual budgeting/financial planning
• Extensive experience planning and deploying either business or IT initiatives
(preference for both)
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Roles and Responsibilities
Role Responsibility
Backlog/Repoistory Librarian Manage the request and project queue for BA-related work
Business Architect Facilitate process, architecture models and templates for BA-related work
Business Capability Owner Ownership of a business domain or subject area (i.e. claims)
Business Analyst Create project requirements management artifacts
Enterprise Architect Create technical architecture vision and manage continuity of strategy
Process Modeler Create functional/process models and templates for business systems
Director of BA Office
Sell the BA vision and strategy to gain adoption and business value. Manage
the adoption and delivery of BA-related work
Portfolio/Program Lead Manage the corporate project portfolio and delivery of BA solutions
Stakeholder Advise and adopt the BA solutions delivered
Subject Matter Expert Specialized knowledge of a business domain or subject area (i.e. claims)
Content Author/Trainer
Create formal communications and other BA documentation. Create and
conduct related training for BA solutions
Affiliation/Relationship Legend
Core Functional Team Extended Team Community
24© 2015 Accelare. Proprietary and confidential. Do not copy.
Partial Competency Matrix
Business Architect Master Business Architect Chief Business Architect
Equivalent Business
Title
Manager Level Director Level Vice President/GM Level
Activities Business Architecture Team Member Business Architecture Team Leader
Lead Business Architecture Group and advise
Corporate Management
Education and
Certification
• MBA or equivalent with exposure in business
and IT architecture and practices
• Certified Business Architect (CBA)® from the
Business Architects Association® or
equivalent
In addition:
• Advancing the profession through published
articles and papers
In addition:
• Leadership training
• Public speaking
• Recognized leader in the BArch field
Years of Prior
Experience
• 3-5 years (participated as a key member on
multiple Barch engagement)
• Exposure to other disciplines, including:
Sales/Marketing, Operations (ex: Service,
Supply Chain, Manufacturing), IT, Strategy,
Finance, HR or Project Mgmt. Work
experience within these disciplines a plus
• 5-7 years (leader of small cross-
organizational Barch engagements)
• Work experience within several of the
following disciplines: Sales/Marketing,
Operations (Service or Manufacturing), IT,
Strategy, Finance, HR or Project Mgmt.
• 10 years (leader of multiple cross-
organizational Barch engagements)
• Work experience within many of the follwing
disciplinesL Sales/Marketing, Operations (ex:
Service, Supply Chain, Manufacturing), IT,
Strategy, Finance, HR or Project Mgmt.
Individual
and/or Leadership
Behavior
• Works collaboratively with others
• Self-directing
• Maintains confidentiality
• Exhibits respect for cultural differences
• Uses industry-approved methods and
standards
• Open to and gives constructive advice
• Raises awareness when needed
• Understands the engagement’s big picture
• Participates as a positive team member on
BA team
• Takes initiative to get assignments done,
particularly as a pert-time assignment
• Dissects corporate strategy and designs the
enabling Business Architecture
• Understands the interdependencies across
organizational boundaries
• Is passionate about advancing the business
through the application of Business
Architecture tools and methodologies
In addition:
• Leads teams
• Challenges the status quo and raises issues
with functional Directors/VPs
• Secures commitments from others with no
direct authority in Business Architecture
engagements
• Looks ahead for ways to address core
process issues beyond engagement scope
• Finds ways to remove barriers for Business
Architecture teams
• Advocates a constant focus on customer and
business needs
• Achieves leadership buy-in
• Estimates costs and allocates resources
• Developing people/orientations
• Nurtures collaboration relationships across
the organization
• Empowers, delegates and mentors team
members
In addition:
• Sets direction for Business Architecture
organization
• Educates leadership on the benefits or a
well-architected organization
• Sets the business-level strategy for Business
Architecture deployment and manages
overall change planning
• Sets and oversees plan for deployment of
Business Architecture corporation-wide
• Identifies next area of Business Architecture
implementation
• Incents Business Architecture team members
• Is passionate about advancing the business
• Updates senior leadership on Business
Architecture activities
• Raises and resolves critical Business
Architecture organizational issues
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Business Architecture Metrics
Metrics Classes
Change
Acceleration
Assessment
Overall
Investment
Roadmap Health
Future State
Metrics
Bottom Line
Benefits (Customer
and Investor)
Enables
Delivers
Yields
Metrics
Metrics
Metrics
Metrics
Problem
At Risk
At Risk
Assessment of our desire to
change and willingness to sustain
the effort
Process and organization KPIs
that correlate to our Value Map
Customer and Financial KPIs
How are we executing our
investment roadmap (timeliness,
budget, scope and quality)
© 2015 Accelare. Proprietary and confidential. Do not copy. 26
Stay in touch
• Rich Lynch
• Email: Richard.lynch@Accelare.com
• Mobile: 978.590.3552
• web: http://www.accelare.com/richard-lynch
27© 2015 Accelare. Proprietary and confidential. Do not copy.