The Business Architect as Strategist

The Architect as Strategist

Jeff Scott

VP/ Business & Technology Strategy

MACCMinneapolisNovember 13, 2014

A few strategy concepts

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TransformationalStrategy

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


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

Strategy is difficult to define

Usage Example

Strategy as goal“Our strategy is to double thesize of the company.”

Strategy as direction “Our strategy is to become a global company.”

Strategy as plan“Our strategy is to move our New Yorkoffices to San Francisco.”

Strategy as strategic landscape

Strategy refers collectively to: vision, goals, strategies, and objectives.


Strategy’s purposeCreate Focus and Clarity

Strategic intent

Direction

Aspiration

Goals

Vision


7

Why good strategy goes bad


Strategy execution is the BIG problem

• 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

The strategy diffusion problem

9

75%

75%

75%

75%

75% 68%

61%

55%

49%

Strategic effectiveness

coefficient


The architect’s role


Thinking shiftOpportunity Focused – Not Efficiency Focused


StrategicEffectiveness

OperationalEfficiency

Strategy to execution managementThe Process of Business Architecture


Strategy development andarticulation 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 mappingPackage 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 mappingImplementation of Kaplan and Norton strategy mapping process

Business model developmentFacilitate organizations in development of their business or value delivery model.

Value chain analysisHelp organizations fully understand and clarify how they create value


Clarify strategyStrategy 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 SuccessFactors:

• Overcoming cultural challenges

• Developing new capabilities along with the skills, processes, and technologies to support them

• Improving the speed to market of IT delivery


Differentiate & illuminate Value Map – Starbucks


My WorkFit > Strategy > Value Maps > Starbucks

WorkFit Jeff Scott

Create New Value Map Edit/Delete Value Map Export Starbucks (Example)

Map

Data

Value Map:

My WorkFit > Strategy > Value Maps > IT Inc.

WorkFit Jeff Scott

Create New Value Map Edit/Delete Value Map Export Starbucks (Example)

Map

Data

Value Map:

Differentiate strategy – IT Inc. value map Aligning with Business Interests


Product Innovation

Identify New Opportunities

Lower Project Costs

Predictable Outcomes

Speed to Market

Operational Efficiency

Business View

IT View

High

Low

Em

ph

asi

s New IT

Capability map – IT Inc.Create a Business View of the Operating Model


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 PartnershipManagement

IT Inc.

2IT Planning & Controls 3Program & Project

Management 4IT Administration& Management 5Solutions Delivery

PERFORMANCE is significantlybelow 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


AdvantageCapabilities

EssentialCapabilities

StrategicSupport

Capabilities

BusinessNecessity

Capabilities

Gre

ater

Str

ateg

ic &

Val

ue

Pro

p Im

pac

t

Greater Financial Impact

Capability assessment – IT Inc.And Understand Which Capabilities Need Operational Improvement







2.1 Manage EA





2.6 Manage Policy

3.1 Plan Portfolio
















5.7 Test Solutions



My WorkFit > Capabilities > Capability Models > IT Inc.

WorkFit Jeff Scott

Tile View Edit This Model Export/Print PerformanceView:

1Business PartnershipManagement

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

Root cause analysisIdentify Cause


Why #2

Why #1 Why #3

Why #4

Why #5

Define the problem

Solve the problem

Peo

ple

Leadership/Vision

Management Discipline

Performance Management

Accountability

Compensation

Communication

Collaboration & Teamwork

Ability to Make Decisions

Skills

Lack of Resources

Funding

Compliance

Training

People

Pro

cess

Supplier

Input

Process

Output

Customer

Regulator

Business Rule

Process Owner Clarity

Facilities

Tools

No Clear Process

Process

Tech

no

logy

Functionality

Availability

Access

Performance

Reliability

Integration with Other Systems

Data Quality

Agility/Adaptability to Change

Technology






2.1 Manage EA





2.6 Manage Policy

3.1 Plan Portfolio
















5.7 Test Solutions



1Business PartnershipManagement 2IT Planning &

Controls 3Program & Project Management 4IT Administration

& Management 5Solutions Delivery

Plan and fund enhancementsClose Capability Gaps


Assess progressKeep Your Eye On What Matters


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

[email protected]

Business architecture, strategy development,

organizational innovation

Create and manage thestrategy 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 andongoing role for architects


Assessments

Capabilities

Gaps

Vision and Goals

Strategies

The role of the EA strategist


Focus management’s thinking

Clarify direction

Integrate new ideas

Identify new opportunities

Create broad consensus

Manage strategy buy-in

Be proactive – drive change

Just do it!

Jay LenoFirst job – car washer

J. K. RowlingAuthor – Harry Potter series

Stephen SpielbergFirst film industry job – unpaid intern


http://www.parade.com/export/sites/default/celebrity/slideshows/exclusive/jay-leno.html_71192267.html

http://www.parade.com/export/sites/default/celebrity/slideshows/exclusive/jay-leno.html_71192267.html

Stay in touch

Jeff Scott

Email: [email protected] 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


Questions and discussion


THANK YOU

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