A complexity approach to managing technology enabled business transformation - part 2
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The document discusses the practical implications of organizational change and the need for a multi-disciplinary approach in managing architecture and innovation within businesses. It emphasizes the importance of empathy, incremental change, and understanding relationships to better align strategies and architecture with organizational goals. Key concepts include the transition from traditional models to agile practices, collaboration across disciplines, and the necessity for continuous learning and adaptation in a complex business environment.
A complexity approach to managing technology enabled business transformation - part 2
- 1. Practical implications of thinking and acting differently Doctor of Management (Ph.D) Mikkel H Brahm Head of Architecture, Nordea | Digital Banking
- 2. Practical examples of Orthodoxy Outcome Mean / Objective Mean / Objective Mean Mean MeanMean Linear Causality => Predictable
- 3. Practical examples of Orthodoxy Mean Mean Mean Mean Outcome Organisation / needs in t0 = organisation / needs in t1 i.e. we control when the organization does and does not change t0 t1
- 4. Practical examples of Orthodoxy Elias: Idealization of stable states Process-reduced language Analyze Design Execute Unfreeze Change Refreeze (Kurt Lewin)
- 5. The v-model assumes that you can hand over the entire outcome of your work Practical examples of Orthodoxy
- 6. Practical examples of Orthodoxy AS-IS LOGICAL AS-IS PHYSICAL TO-BE LOGICAL TO-BE PHYSICAL
- 7. STRATEGY SOURCE: McKinsey Organization Design Service Line, McKinsey 9 Golden Rules report 2013 SOURCE: Leavitt, Harold J. “Applied Organizational Change in Industry” in Handbook of Organizations pp 1144-70 1965 5 decades of improvements … … without progress
- 8. Taking the attitude of the other is what allows us to understand their perception of us – and allows us to “fit in” Rather than pursuing an unattainable level of predictability, why not improve instead our ability to observe and understand?
- 9. George Herbert Mead describes “the attitude of the engineer” as an enlarged sense of social self and attitudes of others
- 10. To engineer something helpful, we must understand both the person we are trying to help and their journey (fulfil need)
- 11. Case: Agile@Nordea How can we become “at our best” more of the time?
- 12. 12
- 13. In a fragmented and uncertain market, we seek evolution rather than revolution Open innovation Observation
- 14. Deposits Loans Investments Mortgages Property Trading Treasury Nordea is not one business – it is as a group involved in many businesses and business models with many counterparties Our current strategy is less about a safe bet, and more about keeping options open
- 17. Collaboration is needed both between aspects of Architecture, lines of Business, and between group, partitions & initiatives Hub Capability Area
- 18. Architecture as a matrix between federated partitions and initiatives Digital Sales Software Architecture Product Ownership Mobile development Web development Competency Areas … Hub NHub 2Hub 1 CAL CAL CAL CAL CAL HLHL Hub Architecture Team Business Capability Architecture Team Support Hub Lead to understand Capability Architecture visions and design Hub Architecture vision accordingly to guide business value realization Support Business Capability owner to develop capability architecture vision describing how capability can be most efficiency delivered Support Hubs to understand and mitigate impact on Capability of proposed solutions HL Deliverables • Hub Architecture Vision • QBR & roadmap support • Hub backlog refinement • Epic Definition • Enabler Epic identification • Epic architecture deep-dives Deliverables • Feature descriptions • Solution architecture design • Architecture Debt Capture Deliverables • Business Capability Architecture Vision • Target, as-is, transition architecture • Capability architecture standards Solution level Support POs and teams in defining solution architecture for Epics applying guidelines of the Hub Architecture Vision and, if relevant, the more detailed Epic Architectures and Non- Functional Requirements on Epic level. Hub level Portfolio level Support portfolio is aligned to strategy (as part of QBR in giving feedback to Hubs) and Hubs are executing according to right scope Deliverables • Strategic Theme Definition • Capacity Allocation • Hub initiation / retirement Architecture presentation in portfolio discussions (QBR)
- 19. Factions of Architecture do not necessarily agree on which approach to adopt
- 20. Architecture cadence must match Initiative cadence now +6 months +18 months +3 years +5 years Too late to influence More detail and Comprehensive Less detail and more ad hoc Direction and Outlines Focus on goals, not on means – e.g. Guide Decision-making and Development Beware of an approach so heavy-weight that you do not have time to produce quality content.
- 21. Change is constant i.e. no more projects as temporary organization of change Funding Bucket Run the Business Change the Business Hub = Solution Train People with Business competence and IT competence Funding Bucket Hub = Solution Train People with Business competence and IT competence Funding Bucket Hub = Solution Train People with Business competence and IT competence
- 22. App BFF Service ESB Service Back End Supplier Sector Partner App Partner Portal end-to-endORG end-to-end The hand-over dilemma: what sender knows ≠ what receiver needs to know Max 9 + One of each = Dev + 8 Mgrs Agile dilemma:
- 23. We seek empathic connection to our customers and end users via personae with emotions, hopes, wants and pains
- 24. Journey Map: 3 meter long posters becomes a focal point as we struggle to fit everything into one simplified model
- 25. Confidence vote: Teams express confidence and commitment with 0-5 fingers raised
- 26. Program Board: As teams commit to deliver, a shared plan emerges through negotiation
- 27. We seek to shorten Build – Test – Learn loops concerning what we cannot predict
- 29. Even with all the refactoring, we still believe we will get to a better match to customers needs this way in the same time that we could have delivered an undesired solution by following the old V-model
- 32. The Agile (Scrum) principles can clash with the Lean principles
- 33. Not all Architects prefer to lead on the “construction site” rather than model and write guidelines from the “Ivory Tower”
- 34. So far, we are mainly modelling “as sketch”. We maintain very few coherent enterprise models. UmlAsBlueprint is a UmlMode that focuses on completene The essence of (UmlAsSketch) sketching is selectivity The promise of (UmlAsProgrammingLanguage as) a higher level language (is that it is) … more productive than current programming languages.Martin Fowler
- 36. GOOD UGLYHARD Incremental value creation, demos, benefit realization, and relentless continuous learning and behavioural changes An intimate and empathic relationship to the customer and customer validation Permanent change organization i.e. no (re)allocations to projects Trusting people and pushing decisions down to the organizational level with competence to decide Accepting that also architecture has to be developed incrementally and accepting refactoring Transitioning from Ivory Tower to Building Site (technical) Leader Trying to transform from waterfall to lean-agile without CI/CD (and environments) Disconnect between funding structure and change execution structure We say that we “accept unpredictability” but have a hard time accepting that sometimes shit happens
- 37. Summary Different ways of thinking about change
- 38. ENTERPRISE Intentional process of doing and organizing business emerging from enabling/constraining figurations of relationships always in flux ARCHITECTURE Organisation of structuring structures including human conventions and mechanisms
- 39. We need a multi-disciplinary approach Complex Responsive Processes of Relating Systems Theory people technology action structure ? ANT is first of all a negative argument
- 40. Take different perspectives i-i, i-o, o-i, o-o Team, Company, Market, Society are all just subsets of organizing = patterning of relationships always in flux Consider carefully when you need more or less stability Conversations – and action in general – can take more fluid or more formalized forms Choose carefully when to play or pass Trust (social capital) can be built up (not given) over time, but it can be lost very quickly and dramatically Small incremental changes are less difficult to validate Changing structuring structures can have unpredictable effects, and can be dificult to recover from Choose carefully whom to oppose and whom to back Many people want to influence the organization in similar ways to Enterprise Architects Some observations and options
- 41. • Find out what you are architecting • Find out who is building / making decisions on what you are architecting • Find out which questions the builders / decision-makers have • E.g. how to build in a desirable, viable, feasible (, …) way • Find out who also wants to supply such answers • Find out which of these could be allies and which are opponents • Do whatever it takes to provide the needed answers / guidance Universal Architecture Method
- 42. Stacey, Ralph D. and Mowles, Chris (2016). Strategic management and Organisational Dynamics: The Challenge of Complexity to Ways of Thinking About Organisations. 7th ed. United Kingdom: Pearson Education. Stacey, Ralph D (2012). Tools & Techniques of Leadership and Management. Routledge. Jackall, Robert (2010). Moral Mazes – The World of Corporate Managers. Oxford University Press. Scott, John C (1990). Domination and the Arts of Resistance - Hidden transcripts. Yale University Press. Elias, Norbert (1978). What is Sociology? Columbia University Press. Elias, Norbert (1991). The Society of Individuals. Basil Blackwell. Latour, Bruno (2005). Reassembling the Social – An introduction to Actor-Network-Theory. Oxford University Press. Mead, George Herbert (1934). Mind, Self, & Society. The University of Chicago Press. Bourdieu, Pierre (1977) Outline of a Theory of Practice. Cambridge University Press Scott, John C (1998). Seeing like a State – How Certain Schemes to Improve the Human Condition Have Failed. Yale University Press. Guenther, Milan (2013). Intersection – How Enterprise Design bridges the gap between Business, technology and People. Elsevier. Ries, Eric (2013). The Lean Startup – How today’s Entrepreneurs use Continuous Innovation to create radically successful Businesses. Crown Business.
Editor's Notes
- #14: And the changing world is reflected in a more fragmented competitive picture. Whilst our competition was traditionally from other banks, technology has meant that other players are coming into the market, with this be online only banks or players adressing specific more transactional elements of our current business such as payments (mobile payments, peer to peer) and financing (for example crowd sourcing) What is interesting to note, is that players such as Facebook and telecompanies who are moving into the payments market, are leveraging established and loyal customer bases
- #24: The role descriptions we ususally use as per TOGAF /ADM and BPMN only describes responsibility and accountability relative to action whereas we here try to understand emotions and needs and thus develop an empathic connection with our user/customer so that we might better anticipate how a user/customer might react to a given design in a given situation.
- #25: The tangible artifact draws attention and shapes process. We quickly begin to resemble an ant trail picking up post-it’s from previous work artefacts and placing them on the emerging customer journey map. There seems to be a very low level of conflicts at this stage.
- #26: The cleaned up artefact is brought to new meetings where we elaborate on the contents.
- #27: The cleaned up artefact is brought to new meetings where we elaborate on the contents.