Achieving Business & IT Alignment - OMG · 2015-11-09 · business strategic need. using corporate . 2. Perform Business Architecture Analysis . Provide transparency across the organization,

Achieving Business & IT Alignment Through Business Capabilities & Governance

March, 2012

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Thrivent Financial for Lutherans

• Not-for-profit, Fortune 500 financial services membership organization

• Largest fraternal benefit society in U.S.

• Help approximately 2.5 million members achieve financial security and give back to their communities

• Offer a broad range of financial products and services

• More than $75 billion in assets under management

• Ranked 318 on Fortune 500 list based on 2011 revenue of $7.471 billion

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• Creating Alignment with Business Capabilities • Governance

Agenda

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Agenda

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Creating Alignment with Business Capabilities Evolution not Revolution

2007 2008 2009

Developed Thrivent Capability Map

Used capabilities to communicate

common needs and project overlaps to

achieve reuse savings

Defined roadmaps relevant to Thrivent

Create a business architecture practice

People/ Organization

Process Strategy

Process Strategy

Skills/Training

Framework/Methodology Framework/Methodology

People/ Organization

Capability

Capability

Capability

Capability

2006 - Q4 2010 2011 2012

Process Strategy

Skills/Training

Framework/Methodology

People/ Organization Capability

Assets

Work with business partners to start

developing 3-year capability roadmaps

Full buy-in from all business areas to

commit to capability work

Refresh and revisit roadmaps – make capability to asset

relations more clear

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Strategies

Business capabilities provide common language and a framework for identifying integration across a portfolio of initiatives. Business capabilities provide a framework to assess a capabilities performance and the desired future state – using a 3-year capability roadmap view. The 3-year capability roadmaps are prioritized by the business areas to determine best fit with the

enterprise strategy.

Components

MISSION

GOAL GOAL GOALGOAL GOAL GOAL GOALGOAL

METRICS

Capabilities

Business Strategies

Projects

VISION

Objectives

PAC (CBA, Funding, Approval)

Strategy Maps

Creating Alignment with Business Capabilities Business Capability Planning

This Quarter

1 B2C Customer Profile Transactions2 B2C Customer Payment Transactions3 B2C Annuity Transactions4 B2C Life Transactions5 Public Documents: Prospectus, etc.6 Private Documents: Statements, etc.

* See project Impact Statements fordetail

2008

Web Strategy ProgramRoadmapLast updated:

Tuesday, October 23, 2007

Notations

Legend

Business Capability Used bya Project

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3Q4

2009 2010

Project Milestone

Thrivent Impact Club’s Community

Business CapabilityImplemented by a Project -Definitive

This Quarter

1 B2C Customer Profile Transactions2 B2C Customer Payment Transactions3 B2C Annuity Transactions4 B2C Life Transactions5 Public Documents: Prospectus, etc.6 Private Documents: Statements, etc.

* See project Impact Statements fordetail

2008

Web Strategy ProgramRoadmapLast updated:

Tuesday, October 23, 2007

Notations

Legend

Business Capability Used bya Project

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3Q4

2009 2010

Project Milestone

Thrivent Impact Club’s Community

Business CapabilityImplemented by a Project -Definitive

Roadmaps

Process Models and chnology Blueprints

Proj

ects

/Impl

emen

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Creating Alignment with Business Capabilities Business Capability Map

Thrivent’s Level One

Capabilities

Executive

ownership is assigned to each functional area.

The enterprise capability map is a living document that requires governance.

Sub-domain Sub-domainSub-domainSub-domain Sub-domain

Sub-domain

Sub-domain

Sub-domain

Sub-domainSub-domain

Risk Product Management and ServiceThe management of contracts and policies held by members

Brokerage Management and ServiceThe management of the brokerage accounts of customers

Capability

CapabilityCapability

Capability

Capability

Capability

Capability

Capability

Capability

Capability

Sub-domain

Capability

Capability

Sub-domain

Sub-domain

Capability

Capability

Sub-domain

Capability

Capability

Sub-domain

Capability

Capability

Sub-domain

Capability

Capability

Capability Capability Capability

Capability

Capability

Capability

Capability

Sub-domain

Capability

Capability

Capability

Capability

Sub-domain

Capability

Sub-domain

Capability Capability

CapabilityProduct Launch

Product Development and ManagementThe creation of products and services with new or different characteristics that offer new or additional benefits to the members

Banking Product Management and ServiceThe management of the products and accounts of customers as well as all functionality specific to the banking industry

Sub-domain


Sub-domain

Capability


Sub-domain


Sub-domain


Capability

Capability

Capability

Investment ManagementThe management of the investments of Thrivent

Capability

Capability

Capability

Sub-domain

Capability

Sub-domain

Capability

Capability

Capability

Capability

Capability

Capability

Product ManagementCapability


Capability

Sub-domain

Sub-domain


Capability



Business Capability – Functional View

Capability

Capability

Sub-domain

Capability

Capability

Capability

Capability

Capability

Capability

Capability

Capability

Capability

Capability

Capability

Sub-domain Sub-domain Sub-domain Sub-domain

Sub-domain Sub-domain Sub-domain



Capability

Capability

Capability

Capability

Capability

Capability



Capability



Capability



Capability CapabilityCapability


Capability

Sub-domain

Sub-domain

Sub-domainSub-domain


Capability

Capability

Capability

Capability

Capability

Capability

Capability

Capability

Capability

Capability

Capability

Capability

Capability



Capability

02/05/2010

Capability

Capability

Sub-domain

Capability


Capability

Capability


Capability

Middle Office Management



Capability


Sub-domain

Capability Capability Capability Capability

Sub-domain

Capability

Capability

Exec Sponsor: Exec Sponsor:


Exec Sponsor:

Exec Sponsor:


Exec Sponsor:

Sales The development, management, and execution of a mutually beneficial, interpersonal exchange of goods and/or services for equitable

value

Channel and Distribution Management Ensure the effectiveness of the organization’s sales channels

Membership Enable Thrivent Financial for Lutherans to maintain it's not-for-

profit fraternal status

Marketing The movement of goods and services from concept to customer offering

Capability

Customer Service and Relationship ManagementFoster good connections with customers and partners to build loyalty and increase sales.

Sub-domain


Capability

Business Management, Finance & AccountingThe management of the day to day operations of the organization

HR & Corporate ServicesThe management of corporate workforce, physical assets and communication resources

Supply ChainThe oversight of materials, information and

finances as they move from manufacturer to consumer

IT & Support ServicesThe development and support of the technology infrastructure to support the needs of the organization

Exec Sponsor:Exec Sponsor:

Exec Sponsor:

Exec Sponsor:


Capability


Capability

Capability



Sub-domain

Capability


Capability

Sub-domain

Capability


Capability

Sub-domain

Capability


Capability

Capability

Capability

Capability

Capability

Capability

Capability

Capability

Capability


Capability

Sub-domain

Capability Capability CapabilityCapability

Regulatory & Risk ManagementThe management of the exposure to legal and financial risk

Exec Sponsor:

Internal Risk Management

External Risk Management


Capability

Capability



Capability Capability Capability

Capability

Exec Sponsor:

Capability

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Creating Alignment with Business Capabilities Business/IT Alignment Model

IT Architecture

BSP/ Business Architecture

Business

EPMO

Version 1.0 7/1/2009

Deliver Business Solutions

Plan Technology Strategy, Solutions, Investments, Products

Plan Technology Strategy, Solutions, Investments,

Products

Architect Technology Environment

Under Construction

1. Align with Business Strategy

Partner with business to align IT strategy with business strategic need.

2. Perform Business Architecture Analysis

Provide transparency across the organization, using corporate strategies and business architecture models as the common language to support Thrivent’s long-term strategic vision.

3. Create and Maintain IT Architecture

Provide transparency across the organization using IT architecture models and supporting descriptions as the common language to describe how IT will support Thrivent’s business strategic vision

4. Plan and Recommend Candidate Solutions

Collectively recommend a complete architecture solution to our business partners to support long-term strategic vision.

5. Prioritize, approve and fund proposals

Provides a consistent process for CAPS to make informed business decisions related to new programs/ projects in the pipeline.

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IT Architecture

BSP/ Business Architecture

Business

EPMO



Architect Technology Environment

Under Construction

1. Align with Business Strategy

2. Perform Business Architecture Analysis

3. Create and Maintain IT Architecture

4. Plan and Recommend Candidate Solutions

5. Prioritize, Approve and Fund Proposals

Talent Planning Insights Results Resources

Business Planning IT Operating Framework

Deliver Business Solutions

Develop and Manage

Information Technology

Communication Feedback Loop

Creating Alignment with Business Capabilities Business Planning with Capability and Solution Planning

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Agenda

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Planning and Resource Lateral Mechanisms

Definition: Aligning and linking structures (e.g. councils, task forces, committees, project teams, etc.) that require cross-divisional collaboration and discipline. Purpose: These aligning and linking structures, when properly designed and executed, facilitate corporate-wide focus, better and faster decision-making and resource allocation excellence.

External and internal customer

and industry research

Strategic Planning including the

creation of annual corporate and division plans

Allocating financial and people resources to support strategic priorities through a

decision making body named CAPS

(Capability Alignment and Project Selection)

Measure and report progress towards

strategies and goals. Includes mechanisms like QBRs (Quarterly

Business Review)

Creating and maintaining an

engaged workforce capable of delivering strategies and goals

Insights Planning Resources People Results

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Planning Lateral

Strategic Laterals

Planning Discipline

Strategy Formation

Capability Alignment and Project Selection

(CAPS)

Portfolio Executive Councils (PECs)

Resource Discipline Execution

Planning Resources

Insights Planning Resources People Results


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On cross-organization capabilities

To align resources to strategic needs and priorities

For capability enablement, not project execution

On the large investments (“big bets”)

CAPS Focus is:

Capability Alignment and Project Selection

(CAPS)

Portfolio Executive Councils (PECs)

Resource Discipline Execution

Resources

On prioritization within portfolio

On business case management

On people resource alignment

On program and project execution management

PECs focus is:


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CEO

(Executive Sponsor)

CIO (Chair)

Portfolio Executive Committees

Velocity and Volume

EVP Member Services

Value

SVP Financial Products

Effectiveness

CFO

Nondiscretionary

SVP and General Counsel


Resource Lateral – Capability Alignment and Project Selection (CAPS)

Questions

Thank You!

– Insurance products issued by Thrivent Financial for Lutherans, Appleton, WI. Not all products are available in all states. Securities and investment advisory services are offered through Thrivent

Investment Management Inc., 625 Fourth Ave. S., Minneapolis, MN 55415, a wholly owned subsidiary of Thrivent Financial for Lutherans. Member FINRA and SIPC.

– Bank products and trust services are offered through Thrivent Financial Bank, (Member FDIC, Equal Housing Lender), a wholly owned subsidiary of Thrivent Financial for Lutherans. Insurance, securities, trust, and investment management accounts are not deposits, are not FDIC insured, are not insured by any federal government agency, are not guaranteed by Thrivent Financial Bank and may go down in value.

Tammy Leurquin Sr. Manager

IT Strategy and Solutions Thrivent Financial for Lutherans [email protected]

Jake Laabs Sr. Business Architect

IT Strategy and Solutions Thrivent Financial for Lutherans

[email protected]

http://www.finra.org/

http://www.sipc.org/

mailto:[email protected]

mailto:[email protected]

• Sample Artifacts

Appendix

Relational Model

Sub-business unit

Relational Diagram

Business Unit Business Unit

Business Unit

Business Unit

Business unit

Business Unit

Business Unit

Sub-business Unit Sub-business unit

Sub-business unit

Sub-business unit

Sub-business unit Sub-business unit

Main business unit/organization

capability

Capability

Cap.

Capability

Cap.

capability

Capability

Capability

Capabilty

Capability 7

Capability 3

Capability

capability


Capability

Capability

Capability

Capability

Capability

Capability

Capability

Capability

Capability

Capability


Capability


Capability 1

Cap. 5

Capability 6

Capability 2

Capability

Capability

Capability

Capability 8

Capability

Capability

Capability

Capability


Capability

Cap.

Capability


[Capability Domain] handled outside of the business unit/organization

Capability

Capability

Capability

Cap.

Capability

Capability

Capabilty

CapabiltyCapability

Capability

Capability

Capability

Sub-business unit


Capability

Capability

Capability 4

Clarity needed for relationship to organizational areas

Strategies and Related Capabilities

Capability 5

Capability 3

Capability 1 Capability 1

Strategy 1


Capability 7

Capability 4

Capability 11

Capability 4


Capability 13

Capability 2

Capability 4

Capability 1

Strategy 2 Strategy 3 Strategy 4 Strategy 5

Capability 9

Capability 12

Capability 8

Capability 6

Strategies

Cap

abili

ties

Capability 1

Legend

Capability needed for 4 strategies

Capability needed for 3 strategies

Capability needed for 1-2 strategies

Capability 5

Capability 2

Capability 10


Capability 11

Capability 13

Capability 5

Capability 9

Capability 8

Processes to Capability modeling

High level process 1 High level process 2 High level process 4 High level process 5 High level process 3

• Process 1, sub-process 1

•Process 1, sub-process 2

•Process 1, sub-process

3…etc.

• Process 2, sub-process 1

•Process 2, sub-process 2

•Process 3, sub-process 3…etc

• Sub-processes •Sub-processes •Sub-processes

Sub-

proc

esse

s

Capabilities

Capability 3

Capability 6

Capability 3

Capability 4

Capability 5

Capability 6

Capability 1

Capability 2

Capability 8

Capability 9

Capability 1

Capability 4

Capability 7


Capabilities and business needs

Legend = Low = Medium = High

Priority Capability Capability Domain Functional needs

Current state maturity

Strategic maturity needed People Process Tech

Capability one Domain one User-friendly tool for analyzing data 2 3 XImproved reporting X XRevised policies and training X

Capability two Domain one User-friendly tool for analyzing data 2 5 XImproved reporting X XProvide a "360 degree view" of sales and client interactions X X XClarity of roles with the business unit and out to impacted business units X XImproved clarity around ownership/accepted accountability X X

Capability three Domain one Utilize data/analysis to become more proactive 3 4 X X XCreate business rule checks earlier in the process X XImprove specified business practices and tools X X XImprove review and follow-up actions of X processes X X X

Capability four Domain twoReduce duplication of functionality between systems (retire duplicates etc) X XUser-friendly tool for analyzing data 2 4 XImproved reporting X XProvide a "360 degree view" of sales and client interactions X X X

Impacts

Maturing Capabilities

Advanced Intermediate

Capability seven

Capability five

Capability twelve

Basic

Capability two

Capability four

Capability eight

Capability three

Capability one

Current State Future State

1 3 2 4 5

Capability thirteen TBD

Business strategy needs to mature the following capabilities stretching across multiple capability domains and executive sponsors.

Capabilities

Cap

abili

ty D

omai

ns Cap

abili

ty d

omai

n on

e D

omai

n 4

Dom

ain

5

Capability six

Capability eleven

Capability ten

Capability nine

Dom

ain

2 D

omai

n 3

TBD

TBD

TBD

TBD

Maturing Capabilities: How we get there

Advanced Basic

Capability two

Capability three

Capability one

1 2 4

5 Capabilities

Cap

abili

ty D

omai

n

1. Milestone one

2 . Milestone two

3. Milestone three

5. Milestone five

7. Milestone seven

6. Milestone six

2 . Milestone two

4. Milestone four

5. Milestone five

7. Milestone seven

6. Milestone six

1

3 5 7 2 6

4 5 7 2 6

Intermediate

Current State Future State

3

Priority Capability Year One: 2010 Year Two: 2011 Year three: 2012Capability oneCapability twoCapability threeCapability fourCapability fiveCapability sixCapability sevenCapability eightCapability nineCapability ten

Business Capability Roadmap Example

1. Milestone work one (In progress) 2. Milestone work two (In progress) 3. Milestone work three (Planned 2010) 4. Milestone work four (Planned 2010) 5. Milestone work five (Planned 2010) 6. Milestone work six (Planned 2011) 7. Milestone work seven (Planned 2010, 2011) 8. Milestone work 8 (Planned 2011)

High

Medium

Legend: Capability Priority

Low

1

2 3

4 ,5

Milestone summary

Other capabilities impacted

•List capabilities that will benefit from improved prioritized capabilities and impacts if applicable

2

2

3

5

5

5

5

6, 7

6, 7

6, 7

8

8

3

4, 5

4 6

7

7

7