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THE FUTURE OF BUSINESS ARCHITECTURE
Challenges And Opportunities
IASA ITARC - StockholmApril 26th, 2017
BUSINESSINNOVATIONPARTNERS
JEFFSCOTT
The Future of Business Architecture
WhyIamheretoday
Theproblemisneverhowtogetnew,innovativethoughtsintoyourmind,
buthowtogetoldonesout.- DeeHock
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Whatisbusinessarchitectureanyway?
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Businessarchitectureprovidesastructured,disciplinedapproachtotranslatestrategicintentintofocused,efficient,effectiveaction.
BusinessArchitectureToday’sReality
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Someinterestingfacts
§ Architectsareamongthebestandbrightestmembersofourorganizations.
§ Architectshavemorelatitudethanotherorganizationstocreatetheirroletobewhattheywantittobe.
§ Architectshavefewertimedependentdeliverablesthanmostorganizationssotheyhavethetimetheyneedtodevelopahighqualityproduct.
§ Organizationsareindesperateneedofinnovativebusinessdesigns,strategyimplementation,andtransformationmanagement
...andyet
Businessarchitectureteamsstruggleforsuccess
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Today’srealityforbusinessarchitects
Strugglingforsuccess
Failedinitiatives
Deliveringgoodjourneymanarchitecturework
Fulfillingthearchitecturepromise
60,0% 20,0%
15,0%
5,0%
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Wehavemettheenemy...
...andheisus.§ Wantarchitecturetohappentheir way
§ Ignorecultureandcontext
§ Overlytechnologycentric
§ Placeefficiencyovereffectiveness
§ Wanttocontrolversuscollaborate
§ Focusonmodelsversusresults
§ Wouldratherberightthansuccessful
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Thegloballandscape
Theglobalbusinessarchitecturepracticelandscape
Businessarchitecturetodayischaracterizedbyalargenumberofpeoplewhoaspiretodobusinessarchitectureworkwithamuchsmallergroupcapableofbuildingasustainablepractice.Smallerstillarethenumberwhoaremakingasignificantimpactontheircompany’sstrategiceffectiveness.
§Goal:costsavings(IT)§Focus:IT/businessalignment§Approach:modeling§Scope:IT/singlebusinessunit
§Sponsorship:CIO/none§Culture:ignored§Credibility:Low
§Goal:investmentrationalization
§Focus:strategyalignment§Approach:analysis§Scope:multiplebusinessunits§Sponsorship:Jr.executive§Culture:aligned§Credibility:individual
§Goal:strategyrealization§Focus:strategicinvestment&organizationalchange
§Approach:consulting§Scope:enterprise&LOBs§Sponsorship:executive§Culture:challenging§Credibility:practice
Maturitydistribution
SustainingStruggling
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Succeeding
Theglobalchallenge
Thepathforwardismuchmoredifficult
Asbusinessarchitectsmoveforwardfromstrugglingtowardexcellence,eachstepbecomessteeper.Thisistheprimaryreasonweseeleadingbusinessarchitecturepracticeslargelyclusteredtogetherinthemiddle.Theyhaveyettounderstandthemagnitudeofthechallengeahead.
ExcellenceAnd
SustainabilityStruggling
Effortcurve
OnlyahandfulofBApracticesarehere
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Whatarethechallengestoreachexcellence?
§Whatgotyouherewon’tgetyouthere
§ Overcomingpolitics,cultureandorganizationalcontextualchallenges
§ Raisingexecutivecollaboration
§ Implementingatop-downstrategyexecutionprocess
§ Creatingbroadseniorleveladvocacyforbusinessarchitecture
§ Shiftindividualcredibilitytopracticecredibility
§ Developastrongconsulting/engagementapproach
§ Reducecompetitionandincreasecollaboration
§ Hiringanddevelopmentofstaff
§ ThinkingBIGGER
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BusinessArchitecture’sOpportunity
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Leadingbusinessarchitectsseebusinessarchitecturethisway
Businessarchitectureisanapproachtoclarifying,elaborating,andilluminatinganorganization’sbusinessstrategyandoperatingmodelsinawaythatcreatesnewinsights,broaderperspectives,anddeeperunderstandingofhowtheorganizationasawholecreatesvalueandthatdrivesmorestrategicandcollaborativedecisionmaking.
Itprovidesastructured,disciplinedapproachtotranslatestrategicintentintofocused,efficient,effectiveactionby:
§ Clarifyingstrategicintentandtranslatingitintoconsumableelementsthattargetinvestmentstotheworkthatisessentialtotheoutcomeswedesire.
§ Creatingaholistic,commonunderstandingofbusinessoperationsthatcanbeusedtodesignaresponsiveandagileorganization.
§ Buildingarepeatablestrategy-to-initiativesprocesswhichdramaticallyincreasestheorganization’schangevelocity.
Theultimategoalofbusinessarchitectureistounlockorganizationalcapacity.
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StrategyexecutionistheBIGbusinessarchitectureopportunity
§ 60%oftypicalorganizationsdonotlinktheirstrategicprioritiestotheirbudget
§ 66%ofHRandITorganizationsdevelopstrategicplansthatarenotlinkedtotheenterprisestrategy
§ 95% ofemployeesinmostorganizationsdonotunderstandtheirorganization’sstrategy
§ 70% oftypicalorganizationsdonotlinktheirstrategicprioritiestotheirbudget
§ 37% ofexecutivessaytheircompaniesare“verygoodorexcellent”atstrategyexecution.
§ Only 23% blamecurrenteconomicconditionsasamajorfactorintheirlackofexecution
§ 53%ofimplementerscannotstatetheircompany’sstrategyinitsentirety
Source: Mark Hughes, Journal of Change Management
Source: Robert Kaplan, Harvard Business Review
Source: HBR survey of 1,000 executives
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Theorganizationalreality— strategydiffusion
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75%
75%
75%
75%
75% 68%
61%
55%
49%
Strategiceffectivenesscoefficient
Astructuredstrategyexecutionprocessislacking
TheFutureofBusinessArchitecture
Order Cash
Prospect Client
Concept Product
Orderofficesupplies
Travelexpensemanagement
Performancereviews
Strategy Execution
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AtypicalPost-it® notesorderingprocess
TheFutureofBusinessArchitecture
Filloutonlinerequest
Checkinventory
Debitbudget
Rejectorder
ExternalProvider
Order
Mgm
t.Ge
neral
Ledger
Wareh
ouse
Interoffice
Pick&pack
Scheduledelivery
DeliverPost-it®Notes
Updateroute
Sendupdatenotification
Checkbudget Fundsavailable?
Inventoryavailable?
Debitinventory Scheduleorder
Itempickup
Orderreplenishment
No
Yes
Yes
No
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Atypicalstrategyimplementationprocess
TheFutureofBusinessArchitecture
Executive
Man
agem
ent
Everyone
Else
G o d o s o m e t h I n g !!!!
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Amorestructuredapproachtostrategyexecutionwilldeliverresultsfasterandcheaper
§ Clarifystrategy– identifiesvalidapproachestostrategyrealizationandoffersguidanceonhowtooperationalizestrategy
§ Identifycapabilities– providesahigh-level(strategic)viewoftheorganization’stotalresources
§ Assesscapabilities– identifieswhichcapabilitiesarereadytoenablestrategyexecutionandwhichneedfurtherdevelopment
§ Determinegaps– clearlyidentifiestherootcauseofcapabilitydeficiencyandwhatneedstochangetoenablestrategyrealization
§ Chooseinvestments– producesacapabilitydevelopmentroadmapthatmaximizesthereturnonfinancialandhumanresourceinvestments
§ Monitorprogress– createsmethodstomonitorstrategyprogressasopposedtoprojectprogress
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Unlockingemployeecapitalisvastlyunderestimated
“Wehavegreatideas,wejustcan’tseemtoimplementthem.”
CEO
“Wekeepgettingbetteratdoingthingsthatdon’tmatter.”
DepartmentManager
“Ijustputmyheaddownanddowhattheytellme.”
CustomerServiceRepresentative
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Unlockingemployeepotential
Purpose
Autonomy
Mastery
Drive,byDanielPink
Strategicclarity
Visionandgoalclarity
Wheretodevelop
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Yourpersonalchallenge
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Excellence
Failure
RISK
Low
High
HighPRESSURES
ProcessesRulesEgos
Cultural Norms
Cultural NormsEgosRules
Processes
Status Quo
Wheredowegofromhere?
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§ Howdoweincreasebusinessarchitecture’svelocity?
§ Doesbusinessarchitecturekeepitsarchitecturefocus?
§ Dowebecomegeneralmanagementconsultants?
§ Dowebecomestrategists?
§ Whatisthecareerpathpostbusinessarchitecture?
THANK YOU
CONFIDENTIALITYANDINTELLECTUALPROPERTYThesematerialscontainconfidentialandproprietaryinformationbelonging toJeffScottandBusinessInnovationPartnersAllinformationcontainedhereinisprotectedbycopyrightlawandmayonlybereproducedorreusedwithpriorwrittenpermission.
BUSINESSINNOVATIONPARTNERS
JeffScottisPresidentofBusinessInnovationPartnerswhereheconsultswithFortune1000companiesonbusinessarchitecturepracticedesignandmanagement,organizationalchange,andstrategydevelopment.Hehassubstantialconsultingandcorporateexperienceworkingwithseniorleadershiptosetdirection,buildconsensus,andtranslatebusinessobjectivesintoeffectiveaction.Heisastrategicthinkerwiththeanalyticalskillstocreateandimplementpractical,achievablesolutionstothemostcomplexproblems.
Jeffisaninternationallyrecognizedthoughtleaderinbusinessarchitecture,strategyexecution,andorganizationaltransformation.Hefrequentlyspeaks,writes,andteachesseminarsonthesetopics.HehasaMasterofArtsdegreeinlearningandexperimentalpsychologyfromWakeForestUniversity.Jeffcurrentlywritestheblog,TheBusinessArchitect,chairsTheBusinessArchitect’sRoundtable,isaformermemberoftheBusinessArchitectureGuild’sadvisoryboard,andistheformerEditorialDirectorfortheBusinessArchitectureInstitute.TheFutureofBusinessArchitecture
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