Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.

Business architecture design choices

2,049 views

Published on

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.

Published in: Business
  • Be the first to comment

Business architecture design choices

  1. 1. Business Architecture Design Choices Richard Lynch Vice President, Business Architecture Practice Leader © 2015 Accelare. Proprietary and confidential. Do not copy.
  2. 2. 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 © 2015 Accelare. Proprietary and confidential. Do not copy. 2
  3. 3. 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 © 2015 Accelare. Proprietary and confidential. Do not copy. 3
  4. 4. 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 © 2015 Accelare. Proprietary and confidential. Do not copy. 4
  5. 5. 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? © 2015 Accelare. Proprietary and confidential. Do not copy. 5
  6. 6. 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 6© 2015 Accelare. Proprietary and confidential. Do not copy.
  7. 7. 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. © 2015 Accelare. Proprietary and confidential. Do not copy. 7
  8. 8. 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) © 2015 Accelare. Proprietary and confidential. Do not copy. 8
  9. 9. 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 9© 2015 Accelare. Proprietary and confidential. Do not copy.
  10. 10. 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 the organization© 2015 Accelare. Proprietary and confidential. Do not copy. 10
  11. 11. 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. © 2015 Accelare. Proprietary and confidential. Do not copy. 11
  12. 12. 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. © 2015 Accelare. Proprietary and confidential. Do not copy. 12
  13. 13. 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 © 2015 Accelare. Proprietary and confidential. Do not copy. 13
  14. 14. 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) © 2015 Accelare. Proprietary and confidential. Do not copy. 14
  15. 15. 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 © 2015 Accelare. Proprietary and confidential. Do not copy. 15
  16. 16. 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 © 2015 Accelare. Proprietary and confidential. Do not copy. 16
  17. 17. 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 17© 2015 Accelare. Proprietary and confidential. Do not copy.
  18. 18. 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. © 2015 Accelare. Proprietary and confidential. Do not copy. 18
  19. 19. 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. © 2015 Accelare. Proprietary and confidential. Do not copy. 19
  20. 20. 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 © 2015 Accelare. Proprietary and confidential. Do not copy. 20 BA Office
  21. 21. 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. © 2015 Accelare. Proprietary and confidential. Do not copy. 21
  22. 22. 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. © 2015 Accelare. Proprietary and confidential. Do not copy. 22
  23. 23. 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) © 2015 Accelare. Proprietary and confidential. Do not copy. 23
  24. 24. 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.
  25. 25. 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 25© 2015 Accelare. Proprietary and confidential. Do not copy.
  26. 26. 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
  27. 27. 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.

×