Integrated Approach to Enterprise Architecture Governance

Integrated Approach to Enterprise Architecture GovernanceThe Open Group Conference, April 28, 2010
Janne J. Korhonen
Requisite Remedy

Preface to Presentation
Diaspora of Business and IT
Traditional notions of corporate and IT governance
Fundamental system perspectives: black box and white box
Enterprise Governance = conformance + performance
Requisite Organization as metadesign
The paradigm shift: beyond a single organization
Agile Governance ModelTM
Linking EA and IT Governance

Business-ITDivide

IT people are
from Mars
Business people
think they should
stay there

Nothing is as dangerous in architecture as dealing with separated problems. If we split life into separated problems we split the possibilities to make good building art.
− Alvar Aalto (1898−1976)

Corporate GovernanceTraditional Definitions
”The process by which corporations are made responsive to the rights and wishes of stakeholders.”
– Demb and Neubauer (1992)
“Corporate governance deals with the ways in which suppliers of finance to corporations assure themselves of getting a return on their investment.”– Shleifer and Vishny (1997)
“Corporate governance is about how suppliers of capital get managers to return profits, make sure managers do not misuse the capital by investing in bad projects, and how shareholders and creditors monitor managers.” – American Management Association

Specify Financial
Reporting Objectives
Internal Controls and COSO (Commission of Sponsoring Organizations of the Treadway Commission)

IT Governance Traditional Definition
“IT governance is the responsibility of executives and the board of directors, and consists of the leadership, organisational structures and processes that ensure that the enterprise’s IT sustains and extends the organisation’s strategies and objectives.”– IT Governance Institute; CobiT 4.1 (2007)

Business-IT Alignment

Basic CobiT Principle
drive the
investment in
that are
used by
CobiT
that areused by
to deliver
Source: CobiT 4.1

CobiT Follows Top-Down Approach
Source: CobiT 4.1

Conformance

Is this enough?

Fundamental System Perspectives
”Black Box”
Functional
Teleological
Control-oriented
Design irrelevant
”White Box”
Constructional
Ontological
Change-oriented
Design essential

Performance

Enterprise Governance: Broader Definition From More White Box Perspective
Enterprise Governance
“The set of responsibilities and practices exercised by the board and executive management with the goal of providing strategic direction, ensuring that objectives are achieved, ascertaining that risks are managed appropriately and verifying that the organisation’s resources are used responsibly.”
− Information Systems Audit and Control Foundation (2001)
Corporate Governance
i.e. Conformance
Business Governance
i.e. Performance
Accountability
Assurance
Value Creation
Resource Utilisation
Source: IFAC (2004)

Enterprise Governance: My Definition
Enterprise Governance defines the requisite roles, accountabilities and policies to effectively design and operate an enterprise in continually shifting contexts.
The word governance derives from the Greek verb κυβερνάω [kubernáo]: to steer

VII-VIII Long-term sustainability
V-VI Innovation, transformation
III-IV Effectiveness
Board Member,
Super Corporation CEO
I-II Efficiency
VI+ Executive Leadership
Strategic organizational leadership: culture, values, vision; business portfolio
VIII
Conceptual-Abstract
Dialectical
VII
Corporate CEO
Corporate EVP
VI
Business UnitPresident
V
IV−V General ManagementBusiness models,
products, services
General Manager
IV
Symbolic-Verbal / Logical
III
Unit Manager
I−III Operations
Day-to-day work, supervision, first-line management, departmental management
First-Line Manager;Specialist
II
I
Supervisor; Operator
Requisite Organization as Metadesign

Service-Dominant
Organismic
Holistic
Dynamic
Emergence
Coordination
Post-Formal
Dialectical
Complexity
Effectiveness
Integrity
Goods-Dominant
Mechanistic
Reductionistic
Static
Planning
Control
Formal
Logical
Efficiency

Business Technology
Value Creation
Performance
Business-IT Convergence
Interactions
Informated
In the Cloud
Complexity
Effectiveness
Integrity
Information Technology
Cost Containment
Compliance
Business-IT Alignment
Transactions
Automated
On the Ground
Efficiency

Stratified Approach to Achieve Concurrent Objectives
Scope of Modern Enterprise Architecture, Governance and Management
Scope of Traditional IT Architecture, Governance and Management

Agile Governance Model 1.1
Strategic
Steering
Strategic,external
StrategicDecision-Making
Enterprise
Coordination
Strategic,internal
Tactical Decision-Making
Domain Coordination
Tactical
Operational Decision-Making
Operations
Planning &
Support
Operational
Real-Time
Development and Execution
Design, Planning and Support

EA Governance
Strategic,external
Strategic,internal
Tactical
Operational
Real-Time
Positioning EA Governance
Effectiveness
IT Governance
Efficiency

Linkages Within and Between EA and IT Governance
Architectural linkages
EA office
Guidelines, principles, policies
Approval mechanisms
Operational linkages
Business sponsors
Process owners
Project reviews
Balanced scorecard
Service-level agreements
Alignment linkages
Architecture contracts
Compliance assessments
Architecture support to projects
EA Governance
Alignment linkages
Architectural linkages
Operational linkages
IT Governance

Traditional EA Approach: Architectural Dimensions as Layers

From Layers to Slices: Stratification by Decision-Making Perspectives
External
Strategic
Internal
Tactical
Operational
Real-Time
Technology
Business
Information
Information
Systems

Prelim: Framework and Principles
TOGAFDefinesa Methodology:ADM

Pertinent Governance Levels for TOGAF Artifacts

AGM Applied to EA and ITG
Strategic Alignment, Strategic Architecture
Strategic,external
Segment Architecture
Value Delivery, Risk Management, IT Project Portfolio Management
Strategic,internal
Capability Architectures
Resource Management, Performance Measurement, IT Program Management
Tactical
IT Architecture, Architectural Support
IT Project Management, IT Operational Mngt, Arch. Realization
Operational
Real-Time

Three Takeaways
”Mind the Gap”
Do not just align business and IT; converge them
Design for concurrent objectives
Use requisite stratification as guiding metadesign
Do not turn EA upside down
Just 90 degrees

http://www.requisiteremedy.com/

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Integrated Approach to Enterprise Architecture Governance

by Janne J. Korhonen on Apr 29, 2010

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