The Business Architect as Strategist

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Strategy development and the business architect's role.

Text of The Business Architect as Strategist

  • 1. The Architect as Strategist Jeff Scott VP/ Business & Technology Strategy MACC Minneapolis November 13, 2014

2. A few strategy concepts 2014 Accelare. Proprietary and confidential 2 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. 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. 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. Strategys purpose Create Focus and Clarity Strategic intent Direction Aspiration Goals Vision 2014 Accelare. Proprietary and confidential 6 7. 7 Why good strategy goes bad 7 2014 Accelare. Proprietary and confidential 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 companys strategy in its entirety 2010 HBR survey of 1,000 executives Many organizations dont 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 organizations strategy Robert Kaplan, Harvard Business Review 88 We are really, Really bad at executing corporate strategy 2014 Accelare. Proprietary and confidential 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. The architects role 2014 Accelare. Proprietary and confidential 10 11. Thinking shift Opportunity Focused Not Efficiency Focused 11 2014 Accelare. Proprietary and confidential Strategic Effectiveness Operational Efficiency 12. Strategy to execution management The Process of Business Architecture 2014 Accelare. Proprietary and confidential 12 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. 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 ITs 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. 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. 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. 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. 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. 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. 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