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The Architect as Strategist
Jeff Scott
VP/ Business & Technology Strategy
MACC
Minneapolis
November 13, 2014
A few strategy concepts
© 2014 Accelare. Proprietary and confidential 2
Transformational
Strategy
All strategy is not the same
Where we play
and how we win
How we design
our organization
Changin...
Not all strategy is strategy
Strategic planning
• Financial forecasting
• Demand projections
• Incremental change
• Resour...
Strategy is difficult to define
Usage Example
Strategy as goal
“Our strategy is to double the
size of the company.”
Strate...
Strategy’s purpose
Create Focus and Clarity
Strategic intent
 Direction
 Aspiration
 Goals
Vision
© 2014 Accelare. Prop...
7
Why good strategy goes bad
7© 2014 Accelare. Proprietary and confidential
Strategy execution is the BIGproblem
• 37% of executives say their companies are “very good or excellent” at strategy
exec...
The strategy diffusion problem
9
75%
75%
75%
75%
75% 68%
61%
55%
49%
Strategic
effectiveness
coefficient
© 2014 Accelare. ...
The architect’s role
© 2014 Accelare. Proprietary and confidential 10
Thinking shift
Opportunity Focused – Not Efficiency Focused
11© 2014 Accelare. Proprietary and confidential
Strategic
Effe...
Strategy to execution management
The Process of Business Architecture
© 2014 Accelare. Proprietary and confidential 12
Strategy development and
articulation services examples
Product/Service Description
Scenario planning (large)
Full fledged...
Clarify strategy
Strategy on a Page
Strategy On A Page
Strategy Name:
IT Innovation
Owner: Cindy Burk Scope: IT
Descriptio...
Differentiate & illuminate
Value Map – Starbucks
15© 2014 Accelare. Proprietary and confidential
My WorkFit > Strategy > V...
My WorkFit > Strategy > Value Maps > IT Inc.
WorkFit Jeff Scott 
Create New Value Map Edit/Delete Value Map Export Starb...
Capability map – IT Inc.
Create a Business View of the Operating Model
17© 2014 Accelare. Proprietary and confidential
1.1...
PERFORMANCE is significantly
below what is needed given the
VALUE of the capability to the firm
PERFORMANCE is below what ...
Capability assessment – IT Inc.
And Understand Which Capabilities Need Operational Improvement
19© 2014 Accelare. Propriet...
Root cause analysis
Identify Cause
20© 2014 Accelare. Proprietary and confidential
Why #2
Why #1 Why #3
Why #4
Why #5
Defi...
1.1 Divisional Planning
1.2 Support Business Process
Reengineering
1.3 Publish IT Performance
(to Customers)
1.4 Manage Cu...
Assess progress
Keep Your Eye On What Matters
22© 2014 Accelare. Proprietary and confidential
Start > Execution > Metrics ...
Create and manage the
strategy to execution process
• Focuses investments where they
will have the most business impact
• ...
The role of the EA strategist
24© 2014 Accelare. Proprietary and confidential
 Focus management’s thinking
 Clarify dire...
Just do it!
Jay Leno
First job – car washer
J. K. Rowling
Author – Harry Potter series
Stephen Spielberg
First film indust...
Stay in touch
Jeff Scott
Email: Jeff.Scott@accelare.com Phone: +1-704-275-1725
LinkedIn: www.linkedin.com/company/accelare...
Questions and discussion
© 2014 Accelare. Proprietary and confidential 27
THANK YOU
CONFIDENTIALITY AND INTELLECTUAL PROPERTY
These materials contain valuable confidential and proprietary informat...
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The Business Architect as Strategist

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Strategy development and the business architect's role.

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The Business Architect as Strategist

  1. 1. The Architect as Strategist Jeff Scott VP/ Business & Technology Strategy MACC Minneapolis November 13, 2014
  2. 2. A few strategy concepts © 2014 Accelare. Proprietary and confidential 2
  3. 3. Transformational Strategy All strategy is not the same Where we play and how we win How we design our organization Changing how we work Operational Strategy Business Strategy © 2014 Accelare. Proprietary and confidential 3
  4. 4. Not all strategy is strategy Strategic planning • Financial forecasting • Demand projections • Incremental change • Resource alignment • Demand awareness Managing resources Strategy crafting • Envisioning new futures • Organizational transformation • Substantive change • Insight and perspective Growing capabilities 4© 2014 Accelare. Proprietary and confidential
  5. 5. Strategy is difficult to define Usage Example Strategy as goal “Our strategy is to double the size of the company.” Strategy as direction “Our strategy is to become a global company.” Strategy as plan “Our strategy is to move our New York offices to San Francisco.” Strategy as strategic landscape Strategy refers collectively to: vision, goals, strategies, and objectives. © 2014 Accelare. Proprietary and confidential 5
  6. 6. Strategy’s purpose Create Focus and Clarity Strategic intent  Direction  Aspiration  Goals Vision © 2014 Accelare. Proprietary and confidential 6
  7. 7. 7 Why good strategy goes bad 7© 2014 Accelare. Proprietary and confidential
  8. 8. Strategy execution is the BIGproblem • 37% of executives say their companies are “very good or excellent” at strategy execution. • Only 23% blame current economic conditions as a major factor in their lack of execution • 53% of implementers cannot state their company’s strategy in its entirety — 2010 HBR survey of 1,000 executives • Many organizations don’t have a consistent way to even describe their strategy • 60% of typical organizations do not link their strategic priorities to their budget • 66% of HR and IT organizations develop strategic plans that are not linked to the enterprise strategy • 95% of employees in most organizations do not understand their organization’s strategy — Robert Kaplan, Harvard Business Review 88 We are really, Really bad at executing corporate strategy © 2014 Accelare. Proprietary and confidential
  9. 9. The strategy diffusion problem 9 75% 75% 75% 75% 75% 68% 61% 55% 49% Strategic effectiveness coefficient © 2014 Accelare. Proprietary and confidential 9
  10. 10. The architect’s role © 2014 Accelare. Proprietary and confidential 10
  11. 11. Thinking shift Opportunity Focused – Not Efficiency Focused 11© 2014 Accelare. Proprietary and confidential Strategic Effectiveness Operational Efficiency
  12. 12. Strategy to execution management The Process of Business Architecture © 2014 Accelare. Proprietary and confidential 12
  13. 13. Strategy development and articulation services examples Product/Service Description Scenario planning (large) Full fledged, multi-phase scenario planning to help organizations explore strategic options Scenario planning (small) Scaled back scenario planning workshops for smaller organizations and large projects Value mapping Package value mapping as a standalone product – leverage Blue Ocean Strategy work to create more detailed value map views Strategy clarification Help organizations explore and define strategies and goals. Provide standard definitions and relationships for strategy elements. Provide mission, vision, strategy description template(s) Strategy mapping Implementation of Kaplan and Norton strategy mapping process Business model development Facilitate organizations in development of their business or value delivery model. Value chain analysis Help organizations fully understand and clarify how they create value © 2014 Accelare. Proprietary and confidential 13
  14. 14. Clarify strategy Strategy on a Page Strategy On A Page Strategy Name: IT Innovation Owner: Cindy Burk Scope: IT Description: Create the organization, processes, tools, and culture to drive a ten-fold increase in IT’s ability to find, experiment with, develop, and implement new ways to exploit technology that create new products and service models for our business customers. Drivers: • Competitive analysis indicates competitors are more aggressive in incorporating new technologies such as smart phones and tablets into their product offerings and internal processes. • Business strategy to acquire younger customers in the 22 – 35 age bracket. This age group expects high quality, any time, any place, self-service via the latest devices. • Business strategy to reduce workforce by 3% per year for the next 4 years in non-customer facing roles will require new technology solutions at a lower price point. Known Challenges: • Risk adverse culture • Historically poor cross-organizational collaboration • Low innovation process maturity Implications: • Will require an additional funding pool for innovation projects • Must move from ROI funding to risk based funding model for innovation projects Critical Success Factors: • Overcoming cultural challenges • Developing new capabilities along with the skills, processes, and technologies to support them • Improving the speed to market of IT delivery © 2014 Accelare. Proprietary and confidential 14
  15. 15. Differentiate & illuminate Value Map – Starbucks 15© 2014 Accelare. Proprietary and confidential My WorkFit > Strategy > Value Maps > Starbucks WorkFit Jeff Scott  Create New Value Map Edit/Delete Value Map Export Starbucks (Example)  MapData Value Map:
  16. 16. My WorkFit > Strategy > Value Maps > IT Inc. WorkFit Jeff Scott  Create New Value Map Edit/Delete Value Map Export Starbucks (Example)  MapData Value Map: Differentiate strategy – IT Inc. value map Aligning with Business Interests 16© 2014 Accelare. Proprietary and confidential Product Innovation Identify New Opportunities Lower Project Costs Predictable Outcomes Speed to Market Operational Efficiency Business View IT View High Low Emphasis New IT
  17. 17. Capability map – IT Inc. Create a Business View of the Operating Model 17© 2014 Accelare. Proprietary and confidential 1.1 Divisional Planning 1.2 Support Business Process Reengineering 1.3 Publish IT Performance (to Customers) 1.4 Manage Customer Relationships 1.5 Maintain Current State Models 2.1 Manage EA 2.2 Manage IT Standards 2.3 Manage IT Governance 2.4 Create Annual Plans 2.5 Plan & Manage Research & Innovation 2.6 Manage Policy 3.1 Plan Portfolio 3.2 Deliver Portfolio 3.3 Manage Program & Project Standards, Methods & Governance 3.4 Manage Requirements, Project Standards, Methods & Governance 3.5 Govern Portfolio & Delivery 4.1 IT Resource Management 4.2 IT Performance Management 4.3 Execute IT Controls 4.4 IT Operational Tactical Planning 4.5 Manage IT Services/Products 5.1 Deliver Solution Estimation & Impact Analysis 5.2 Define & Manage Solution Architecture 5.3 Conduct Requirements Management 5.4 Conduct Solution Analysis 5.5 Design Solutions 5.6 Construct Solutions 5.7 Test Solutions 5.8 Design Audit, Review &Harvest 5.9 Deploy Solutions My WorkFit > Capabilities > Capability Models > IT Inc. WorkFit Jeff Scott  Tile View Edit This Model Export/Print CapabilityView: 1Business Partnership Management IT Inc. 2IT Planning & Controls 3Program & Project Management 4IT Administration & Management 5Solutions Delivery
  18. 18. PERFORMANCE is significantly below what is needed given the VALUE of the capability to the firm PERFORMANCE is below what is needed given the VALUE of the capability to the firm PERFORMANCE is adequate given the VALUE of the capability to the firm Capabilities are not all equal in their VALUE to the customer and/or financial performance … … or the same in terms of their effectiveness and efficiency PERFORMANCE within the organization. Assess capabilities Assess Both Value and Performance 18© 2014 Accelare. Proprietary and confidential Advantage Capabilities Essential Capabilities Strategic Support Capabilities Business Necessity Capabilities GreaterStrategic&ValuePropImpact Greater Financial Impact
  19. 19. Capability assessment – IT Inc. And Understand Which Capabilities Need Operational Improvement 19© 2014 Accelare. Proprietary and confidential 1.1 Divisional Planning 1.2 Support Business Process Reengineering 1.3 Publish IT Performance (to Customers) 1.4 Manage Customer Relationships 1.5 Maintain Current State Models 2.1 Manage EA 2.2 Manage IT Standards 2.3 Manage IT Governance 2.4 Create Annual Plans 2.5 Plan & Manage Research & Innovation 2.6 Manage Policy 3.1 Plan Portfolio 3.2 Deliver Portfolio 3.3 Manage Program & Project Standards, Methods & Governance 3.4 Manage Requirements, Project Standards, Methods & Governance 3.5 Govern Portfolio & Delivery 4.1 IT Resource Management 4.2 IT Performance Management 4.3 Execute IT Controls 4.4 IT Operational Tactical Planning 4.5 Manage IT Services/Products 5.1 Deliver Solution Estimation & Impact Analysis 5.2 Define & Manage Solution Architecture 5.3 Conduct Requirements Management 5.4 Conduct Solution Analysis 5.5 Design Solutions 5.6 Construct Solutions 5.7 Test Solutions 5.8 Design Audit, Review &Harvest 5.9 Deploy Solutions My WorkFit > Capabilities > Capability Models > IT Inc. WorkFit Jeff Scott  Tile View Edit This Model Export/Print PerformanceView: 1Business Partnership Management IT Inc. High Heat Medium Heat Low Heat 2IT Planning & Controls 3Program & Project Management 4IT Administration & Management 5Solutions Delivery 11/12/2014as of Meets or exceeds current needs Needs minor improvement Needs significant improvement Heat Map Index
  20. 20. Root cause analysis Identify Cause 20© 2014 Accelare. Proprietary and confidential Why #2 Why #1 Why #3 Why #4 Why #5 Define the problem Solve the problem People Leadership/Vision Management Discipline Performance Management Accountability Compensation Communication Collaboration & Teamwork Ability to Make Decisions Skills Lack of Resources Funding Compliance Training People Process Supplier Input Process Output Customer Regulator Business Rule Process Owner Clarity Facilities Tools No Clear Process Process Technology Functionality Availability Access Performance Reliability Integration with Other Systems Data Quality Agility/Adaptability to Change Technology
  21. 21. 1.1 Divisional Planning 1.2 Support Business Process Reengineering 1.3 Publish IT Performance (to Customers) 1.4 Manage Customer Relationships 1.5 Maintain Current State Models 2.1 Manage EA 2.2 Manage IT Standards 2.3 Manage IT Governance 2.4 Create Annual Plans 2.5 Plan & Manage Research & Innovation 2.6 Manage Policy 3.1 Plan Portfolio 3.2 Deliver Portfolio 3.3 Manage Program & Project Standards, Methods & Governance 3.4 Manage Requirements, Project Standards, Methods & Governance 3.5 Govern Portfolio & Delivery 4.1 IT Resource Management 4.2 IT Performance Management 4.3 Execute IT Controls 4.4 IT Operational Tactical Planning 4.5 Manage IT Services/Products 5.1 Deliver Solution Estimation & Impact Analysis 5.2 Define & Manage Solution Architecture 5.3 Conduct Requirements Management 5.4 Conduct Solution Analysis 5.5 Design Solutions 5.6 Construct Solutions 5.7 Test Solutions 5.8 Design Audit, Review &Harvest 5.9 Deploy Solutions 1Business Partnership Management 2IT Planning & Controls 3Program & Project Management 4IT Administration & Management 5Solutions Delivery Plan and fund enhancements Close Capability Gaps 21© 2014 Accelare. Proprietary and confidential
  22. 22. Assess progress Keep Your Eye On What Matters 22© 2014 Accelare. Proprietary and confidential Start > Execution > Metrics > Strategy Momentum WorkFit Jeff Scott  View ReportStrategy Momentum The strategy momentum metric assesses the organization’s support for a given strategy or family of strategies. It measures the number of strategy support opportunities taken in terms of resources and financial allocations. It works similar to a stock index – higher investment indicates the perceived future value of the strategy. Metric Notes (0)Edit Detail Owner: Category: Format: Jeff Scott Momentum Frequency: Display Type: Quarterly Line Datasource: Datasource info: Budgets and project plans Trend Owner Links Add Link Documents Add Document Jeff Scott VP Business & Technology Strategy jeff.scott@accelare.com Business architecture, strategy development, organizational innovation
  23. 23. Create and manage the strategy to execution process • Focuses investments where they will have the most business impact • Creates a direct line of sight from strategic intent to day to day activities • Establishes a foundation for continuous improvement • Increases employee engagement which drives innovation and productivity Creates an integrated and ongoing role for architects © 2014 Accelare. Proprietary and confidential 23 Assessments Capabilities Gaps Vision and Goals Strategies
  24. 24. The role of the EA strategist 24© 2014 Accelare. Proprietary and confidential  Focus management’s thinking  Clarify direction  Integrate new ideas  Identify new opportunities  Create broad consensus  Manage strategy buy-in  Be proactive – drive change
  25. 25. Just do it! Jay Leno First job – car washer J. K. Rowling Author – Harry Potter series Stephen Spielberg First film industry job – unpaid intern © 2014 Accelare. Proprietary and confidential 25
  26. 26. Stay in touch Jeff Scott Email: Jeff.Scott@accelare.com Phone: +1-704-275-1725 LinkedIn: www.linkedin.com/company/accelare www.linkedin.com/in/logicalleap Web: www.accelare.com Things you might be interested in: The Business Architect blog @ http://thebusinessarchitect.accelare.com/ Ask me about: The business architect’s roundtable © 2014 Accelare. Proprietary and confidential 26
  27. 27. Questions and discussion © 2014 Accelare. Proprietary and confidential 27
  28. 28. THANK YOU CONFIDENTIALITY AND INTELLECTUAL PROPERTY These materials contain valuable confidential and proprietary information belonging to Accelare. All information contained herein is protected by law, including but not limited to, copyright law. None of such information may be copied or otherwise reproduced, repackaged, further transmitted, transferred, disseminated, redistributed or stored for subsequent use for any such purpose, in whole or in part, in any means whatsoever, by any person without Accelare’s prior written consent. © 2014 Accelare. Proprietary and confidential 28

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