ASP_Conf_2007-Parker

Enterprise Architecture as a “Discipline” for Putting Business Strategy into Action

Association for Strategic PlanningAnnual Conference

February 27, 2007

Proprietary & Confidential

Page 2Copyright © 2006-2007 T. White Parker Associates, Inc. | twhiteparker.com

Objectives

• Discover new insights into the strategy execution dilemma.

• Discover Enterprise Architecture (EA) as a “discipline” for strategy execution.

• Learn how to apply EA to solve the strategy execution dilemma.

• Learn the foundational steps to establishing an effective EA.


Agenda

• The “Strategy Execution” Dilemma

• Enterprise Architecture 101

• Applying EA to Solve the Strategy Execution Dilemma

• Six Steps to Developing an EA


The “Strategy Execution” Dilemma:

We have an exceptionallywell-thought-out strategic plan

BUT(shhhh)

we still don’t know what to do!!!


More on “The Dilemma”

• Many strategic planning efforts yield plans that are heavy on the financial goals and broad business targets but light on the planning

• Staff outside the board room find little useful content in the strategic plan and are left without real guidance on how to make the strategy happen

• Year-end success is determined based on financials since few/no other performance metrics are identified during the strategic planning process


Recognize the Signs

• When asked the same question about corporate priorities, different employees give different answers

• Operational decisions are difficult to make (e.g., enterprise purchases, project priorities and investments, resource allocation)

• More dollars go to initiatives that do not directly support the enterprise strategy than to initiatives that do directly support the enterprise strategy .. Remember, you are what you spend your money on!!!

• Chronic “mark missing”

• Many goals and objectives are in the plan but no plans are in the plan

• Support departments (HR, IT, Marketing, etc.) have their own, strategic plan for meeting their own strategic goals


The Typical Culprits .. The 3 Ps

• The Process … the strategic planning process

• The Plan … the strategic plan itself

• The “People” … the planners and executors


Culprit #1: The Process

• Does not engage the right people

• Performed too infrequently (usually annually)

• Inadequate communication of the plan

• No (or ill-focused) performance measurements

• No governance .. no rules, no structure, no accountability


Culprit #2: The Plan

• Is not “actionable” .. no insight into how to make the strategy happen .. no roadmap .. no “how to”

• Does not make clear what the program priorities should be; too much left to interpretation

• Does not make allowances for having the right resources focused on the right priorities

• Does not consider downstream impacts


Culprit #3: The People

• Employees (the “executors of the plan) do not know the corporate strategy

• Employees do not feel accountable to the plan

• Employees do not know how their job contributes to the strategy

• Lack of organizational enablers (e.g., no executive champion, no funds, no resources)

• Organizational roadblocks .. resistant culture and/or no change management infrastructure


The “Strategy Execution” Dilemma Question:

How do you make strategy actionable down to the lowest level of an

enterprise?


Enterprise Architecture 101


Where Did EA Come From?

• In the beginning there was …– the Zachman Framework for Enterprise

Architecture and Information Systems Architecture (John Zachman, 1987)

– the Spewak EA Planning Method (Steven Spewak, 1992)

• Then there was…– the Clinger-Cohen Act of 1996 (formerly the

Information Technology Management Reform Act)

• DODAF (Department of Defense, 2002 formerly C4ISR)

• TOGAF (The Open Group Architecture Framework)

• TEAF (Treasury Enterprise Architecture Framework)


Where Did EA Come From? (con’t)

• Now we also have …– EA3 (Dr. Scott Bernard, 2004)

– FEA (Federal Enterprise Architecture, 2002; replaced Federal Enterprise Architecture Framework)

– EA as Strategy (by Jeanne W. Ross, Peter Weill, David Robertson; Harvard Business School Press, 2006)

The discipline and practice of EA isconstantly evolving and maturing!


Enterprise Architecture Defined

• The Breakdown– “Enterprise”

• a business .. encompasses all aspects about the structure, operations and outputs of the organization

– “Architecture”• a structure or structural description

• Putting it All Together– “Enterprise Architecture”

• a structure or structural description of all aspects about the structure, operations and outputs of an organization

EA is a description of how a business works!


Enterprise Architecture IS…

• A blueprint of an organization and serves as

– a communication tool that provides need-to-know information about an enterprise in an easy-to-understand format

– a management aid that enables resource alignment and promotes governance

– a decision-making framework that provides a roadmap for what actions are necessary to align with the mission and execute strategy at all levels of an enterprise

– an operational resource for illustrating how all enterprise pieces contribute to the big picture


Enterprise Architecture IS…

• A process for

– maintaining “views” of the enterprise

– validating the data and information captured about an enterprise

– managing strategic initiatives (budget, schedule, resources, dependencies)

– ensuring compliance with the enterprise’s target position (strategically, operationally and technically)


Why the “Blueprint” Analogy?

• Like a Blueprint …– an Enterprise Architecture provides an actionable

illustration of what has been and needs to be built

– an Enterprise Architecture is comprehensible by all who need to “build” from it

– an Enterprise Architecture is accessible by all who need to work from it


So What’s in the Blueprint?

• A snapshot of what an organization looks like today .. called an “As-Is” architecture;

• A design for what an organization should look like in the pre-defined future .. called a “To-Be” architecture AND …

• A plan that depicts how an organization will move from the “As-Is” state to the “To-Be” state .. called a Transition Plan.


To-Be Architecture + Transition Plan=

EA Enabled Strategy Execution


Simply Stated …

• An EA presents a logical, executable path to a pre-determined desired state (“To-Be” architecture) from the many viewpoints of “actors” within an enterprise.

• These “viewpoints” are represented from an integrated strategy, business and technology perspective.


Enterprise Architecture is about mission and strategy alignment with enterprise operations and resources.


What Does an EA Look Like?

• An EA illustrates …

– how critical business processes and rules relate to one another and to the enterprise mission and strategies

– how information flows to enable the business processes which, in turn, enable mission and strategy execution

– who the users, actors and stakeholders are

– what resources are used by whom, for what and when

– strategic priorities and their impact to the enterprise financially, operationally, technically and strategically


What Does an EA Look Like? (con’t)

• Can be in the form of models, diagrams, text, flows, dashboards or any combination that works!

• Should have many views– for techies, it may be a collection of system diagrams, data

models, etc.– for management, it may include org charts, conceptual

diagrams, an enterprise dashboard, what-if scenarios, etc.– for project managers, it may include an enterprise project

plan and a portfolio of initiatives– for the workforce it should include a combination of all views!

EA is tailored to the perspectives of the executors!!!


.. For Executive Management


.. For the IT Professional

Source: Zachman Institute for Framework Advancement www.zifa.org


.. For the Project ManagerGoals Objectives Strategies Actions Jan

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Action #1

Prerequisites: xxx

Dependencies: xxx

Resources Needed: xxx

Owner/Actor: xxx

Action #2

Prerequisites: xxx

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Owner/Actor: xxx

Strategy #1

Justification: xxx

Corrective Measures: xxx

Action #3

Prerequisites: xxx

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Action #1

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Objective #1

Justification: xxxx

Baseline: xxxx

Performance Metrics: xxx

Strategy #2

Justification: xxx

Corrective Measures: xxx

Action #2

Prerequisites: xxx

Dependencies: xxx


Owner/Actor: xxx

Decision Point: xxx Considerations: Players:





.. For the Workforce

Source: “Using the Living Enterprise Design”, Dr. Scott Bernard http://btmg.biz/enterprisearchitecture.htm


The Key to an Actionable EA ..

.. is to have as many views at as many different levels as is necessary to enable

effective operational decision-making throughout the enterprise.


Applying Enterprise Architecture to Solve the “Strategy Execution”

Dilemma!


EA Addresses the “Process” Culprit

The Issues:

Does not engage the right people

Performed too infrequently (usuallyannually)

Inadequate communication of theplan

No (or ill-focused) performancemeasurements

No governance .. no rules, nostructure, no accountability

EA as the Solution:

Engages the entire organization in thedevelopment and maintenance activities ..promotes ownership and accountability

An EA is a “living” resource requiring continuousupdates in order to remain current and effective

An effective EA is published and accessible toeveryone within an organization

Metrics by which progress against the To-BeState and the targeted results are captured

An embedded governance structure ensuresproper maintenance of and compliance with theEA


EA Addresses the “Plan” CulpritThe Issues:

Is not “actionable” .. no insight into how tomake the strategy happen.. no roadmap ..no “how to”

Does not make clear what the programpriorities should be; too much is left tointerpretation

Does not make allowances for having theright resources focused on the right priorities

Does not consider downstream impacts

EA as the Solution:

Transition Plan provides a decision-makingframework that presents a path from thecurrent state to the target

“To-Be” Architecture combined with theTransition Plan clarifies the direction of theorganization and provides details about theinitiatives required to make the transition areality

Enables focus of the right resources on theright priorities by depicting what needs tooccur when and outlining what resourcesare needed

Aligns operations across the organizationby identifying the “tentacles” andconsidering downstream impacts in the

plan


EA Addresses the “People” Culprit

The Issues:

Employees (the “executors” of the plan)do not know the corporate strategy

Employees do not own or feel accountableto the plan

Employees do not know how their jobcontributes to the strategy

Lack of organizational enablers

No executive champion, no funds, noresources

Organizational roadblocks .. resistantculture and/or no change managementinfrastructure

EA as the Solution:

The EA contains tailored “views” forvarious levels and functions of theenterprise

Makes clear who owns/is responsible forwhat

EA must begin with the identification andendorsement of an executive champion

andan organizational culture ripe fortransformation


Six Steps to Developing an EA

• Obtain Executive Buy-In• Select Methodology &

Toolset (process and tools for developing & maintaining EA)

• Design “To-Be” Picture (business, data, systems, technology)

• Document “As-Is” Picture (business, data, systems, technology)

• Develop Transition Plan (gaps, close-gap initiatives, implementation plan)

• Maintain the EA (update “As-Is”, “To-Be” and Transition Plan as initiatives are implemented and business strategies change)

Obtain Executive

Buy-in(step 1)

Select Methodology

& Toolset(step 2)

Design/ Refine “To-Be” Picture

(step 3)

Document/ Update “As-Is” Picture

(step 4)

Develop the Transition

Plan(step 5)

Continuously Maintain the

EA(step 6…)

Revisit“As -Is”

&“To-Be”

Regularly &Update as

needed


Objectives Revisited• Discover new insights into the strategy execution dilemma.

– The Typical Culprits .. the 3Ps.

• Discover Enterprise Architecture (EA) as a “discipline” for strategy execution.– EA is a blueprint for how an enterprise “works” with an embedded

process for proactively managing the views of an organization.

• Learn how to apply EA to solve the strategy execution dilemma.– Maintain EA as a “living” resource for depicting where an enterprise

is today, where it will be in the future and an actionable plan for making the transition.

• Learn the foundational steps to establishing an effective EA.– Six steps to developing an Enterprise Architecture.


Suggested Resources• Bernard, Dr. Scott. An Introduction to Enterprise Architecture.

Bloomington: AuthorHouse, 2004.

• Ross, Jeanne W., Peter Weill, David Robertson. Enterprise Architecture as Strategy. Boston: Harvard Business School Press, 2006.

• Association for Enterprise Architecture www.aeajournal.org

• EA Community www.eacommunity.com

• The Federal Enterprise Architecture www.egov.gov

• The Zachman Framework www.zifa.com


Questions???


Tanaia Parker is President of T. White Parker and the National Capital Area

Chapter of the Association for Strategic Planning

www.twhiteparker.com

[email protected]

703-753-5430
