Business Architecture based Performance Transformation
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Major business change initiatives often fail because there is a gap between leadership's stated vision and strategy and what is ultimately delivered. This can be addressed through developing a business architecture, which bridges this gap by providing a common framework that aligns people, processes, technology, and other assets to achieve the desired outcomes. An effective business architecture increases the chances of implementing major changes successfully in one try. It should be used for large, complex changes but may not be needed for small, routine improvements.
Business Architecture based Performance Transformation
- 1. Getting Major Business Change “Right First Time” via Business Architecture ! www.kz-a.net 1 ©2011 KzA. ALL RIGHTS RESERVED.
- 2. Objectives & Agenda By the end of this slideshow the audience should understand a key reason why many major business change initiatives fail and the basics behind an approach that has proven very effective in avoiding this outcome. The slideshow storyline is structured as below: • The Experience • The Reasons • The Implications • The Solution • The Benefits • The Practice Notes • The Conclusion www.kz-a.net 2 ©2011 KzA. ALL RIGHTS RESERVED.
- 3. Have you ever had this experience in your business….? You decide there needs to be a change from business as usual. You consult with key stakeholders to agree the case for change. You define the new direction, starting with a new vision & strategy. You communicate the vision and strategy to all stakeholders. You commission programmes and projects charged with carrying out the changes. You monitor progress towards agreed deliverables and outcomes. Χ You look on in dismay as you realise that what you thought you had (clearly) asked for is, sometimes by a very large margin, NOT what is being delivered. So what went wrong….? www.kz-a.net 3 ©2011 KzA. ALL RIGHTS RESERVED.
- 4. There are a number of reasons that could explain this result…. • Lack of a realistic and clear business vision & strategy. • Weak leadership and insufficient management time and commitment. • Poor change initiative governance and ineffective decision taking. But these factors are fairly obvious and yet change initiatives still fail. Why ? Because there is usually another subtle, almost invisible, factor also in play ! An implicit assumption that message sent = message received. Experience shows that this is normally NOT the case…. www.kz-a.net 4 ©2011 KzA. ALL RIGHTS RESERVED.
- 5. Consider the people dynamics at work in this scenario…. The business vision & strategy has NOT been clearly communicated. Often staff, suppliers and business partners will be: • Wary of asking too many ‘clarifying’ questions. • Unsure of the practical meaning of ‘high-level’ concepts referenced. • Uncertain about what degree of radical thinking will be tolerated. And…. www.kz-a.net 5 ©2011 KzA. ALL RIGHTS RESERVED.
- 6. And…. • Unconvinced that their ideas will really be sanctioned by seniors. • Aware that there may be industry ‘sacred cows’ in the way. • Tempted to fill in any vacuum with their own agendas. BUT, in ignorance, and in the interests of time, the organisation presses ahead. What would you imagine might be the likely outcome of this scenario….? www.kz-a.net 6 ©2011 KzA. ALL RIGHTS RESERVED.
- 7. Most people, when put like this, correctly see the likelihood of problems arising…. The likelihood of problems arising becomes very predictable. In jumping directly from a ‘high-level’ business vision & strategy statement to a detailed implementation mechanism an unintentional void often appears between intent and actions. This is a very common failure mode for major change initiatives. And once you think about it, in hindsight, none of this is really very surprising. So, the question then becomes what can be done about this very common issue…. www.kz-a.net 7 ©2011 KzA. ALL RIGHTS RESERVED.
- 8. Lets start with this depiction of the change problem space…. “Right First Time” Transformational Change Model MARKET CHALLENGES MARKET RESULTS Requirements Solutions Decomposition Delivery (1) (8) IF YOU MOVE Vision & Strategy Outcomes AND ALMOST FROM HERE NEVER THIS (4) (7) WITHOUT Business Architecture Integration BUT NORMALLY DOING THIS NOT THIS (6) (2) Programmes & Projects Outputs AND TYPICALLY TO HERE ACHIEVE THIS (3) (5) AND HERE Tasks & Activities Inputs YOU WILL INCUR THIS www.kz-a.net 8 ©2011 KzA. ALL RIGHTS RESERVED.
- 9. And continue by placing this model in its proper context…. Performance (a.k.a. Business) Transformation is defined as being – “a key executive management initiative that attempts to coordinate and align the People, Process, Technology and Infrastructure initiatives in an organisation with its business vision and strategy so as to successfully meet and sustain its performance objectives.” VISION & STRATEGY Performance Transformation Lifecycle OUTCOMES NEXT-RELEASE ASSESS MOBILISE DESIGN BUILD RUN (architecting) (planning) (specifying) (developing) (operating) RENEW PREPARATORY (readying) = REVIEW GOVERNANCE (overseeing) www.kz-a.net 9 ©2011 KzA. ALL RIGHTS RESERVED.
- 10. The goal being to make a level of performance improvement…. A typical Performance Transformation Challenge objective is to, over time, progress along Optimised some improvement pathway…. Release 4 – All / Many Areas at Industry ‘Leading Practice’ Streamlined Maturity Level Release 3 – All Areas at Industry ‘Good Practice’ Improved Maturity Level Release 2 – Key Areas at Industry ‘Good Practice’ Stable Maturity Level Release 1 – All Areas at a ‘Stable State’ ….as illustrated in this idealised Maturity Level ‘Stairway To Heaven’ diagram. Time www.kz-a.net 10 ©2011 KzA. ALL RIGHTS RESERVED.
- 11. To reach this goal several key dimensions need consideration…. “Right First Time” Business Architecture Framework CUSTOMER SEGMENTATION & VALUE STREAMS PROCESSES ORGANISATION INFORMATION PEOPLE OUTSOURCING & & & & & METRICS LOCATIONS REPORTING SKILLS PARTNERING IT APPLICATIONS & DATA TECHNOLOGY INFRASTRUCTURE & FACILITIES www.kz-a.net 11 ©2011 KzA. ALL RIGHTS RESERVED.
- 12. Which taken together bridges the interpretation gulf between intent and action…. Business Architecture is defined as being – “the coordinating framework of an organisation that documents and provides a common understanding of how the People, Process, Technology and Infrastructure assets (existing or new) of the organisation will be structured so as to align with and achieve the objectives set out by its vision and strategy as well as satisfying nearer-term tactical imperatives.” Establishing a Business Architecture: • Ensures that outcomes proceed along a known path and timeline. • Increases productivity and reduces costs through better coordination. • Enables & facilitates an agile, flexible and integrated style of working. And…. www.kz-a.net 12 ©2011 KzA. ALL RIGHTS RESERVED.
- 13. And…. • Greater stakeholder confidence in change based on accepted good practice. • Establishes a context ‘envelope’ into which all change work is positioned. • Encourages re-use / adaptation of existing capabilities. • Serves as a basis for regulatory compliance as well as for risk management. • Helps determine the most appropriate choice of other methods and tools. Another advantage is that this approach is also very flexible…. www.kz-a.net 13 ©2011 KzA. ALL RIGHTS RESERVED.
- 14. A Business Architecture approach lends itself to use in a variety of situations…. The “Right First Time” Framework’s purpose is to connect business vision & strategy to detailed delivery work, aligning implementation with strategic intent. It enables organisations to successfully realise various types of change, including: • Performance Improvement • Opportunity Realisation • Outsourcing & Collaboration • Mergers & Acquisitions • Joint Ventures • Corporate Turn-arounds • Regulatory Compliance • Risk Containment • IT Re-Alignment (including Open Source options) And it has proven itself to be very effective in practice…. www.kz-a.net 14 ©2011 KzA. ALL RIGHTS RESERVED.
- 15. Some illustrative examples of successful application…. • Merger of ‘equals’ between two leading security technology manufacturers. • Supply Chain re-engineering of a lifts and escalators capital goods producer. • Performance improvement in a ‘white label’ food manufacturing company. • Joint venture between two major software and consultancy services firms. • Merger of two large global computer OEM organisations. • Turn-around of a large mobile phone producer’s global ERP implementation. • Performance turn-around of an automotive parts supplier joint venture. • Structuring outsourcing of technical delivery services for a public security agency. Lets move now to a brief explanation of how all this typically works in practice…. www.kz-a.net 15 ©2011 KzA. ALL RIGHTS RESERVED.
- 16. The realisation of a ‘paper’ design typically proceeds like this…. 1. Complete and agree each of the architectural blueprint ‘layers’ as necessary. 2. Set the scope of the first release based on benefits, priorities and dependencies. 3. Sequence other development areas into later releases. 4. Scope of Release 1 should then be the commissioned via usual delivery vehicles. 5. Perform detailed design and delivery work in the usual sequence as needed. 6. Selection of appropriate systems, outsourcing partners, etc are part of above steps. 7. Test, train and conduct final hand over to the operational business. N.B. The “Right First Time” Framework is method and tool agnostic…. And you can choose to use as much or as little of the Framework as suits your needs. Lastly, lets look briefly at when an architecture based approach is appropriate…. www.kz-a.net 16 ©2011 KzA. ALL RIGHTS RESERVED.
- 17. When to use a business architecture based approach…. If your organisation and your initiative are of a size, scope and complexity that a gulf in communications, understanding and interpretation could emerge. Then a business architecture can be very effective in: • Enabling an agile, flexible and intelligent response in dynamic environments. • Maintaining a tight focus on the outcomes that are important. • Minimising initiative overload, gaps / overlaps and depletion of scarce resources. • Stopping local interpretations hijacking intent and making results very unpredictable. • Avoiding a result that is off-putting and hard work for customers / stakeholders. • When-ever getting it “right first time” is truly essential to ongoing business success. And when it is not appropriate…. www.kz-a.net 17 ©2011 KzA. ALL RIGHTS RESERVED.
- 18. When NOT to use a business architecture based approach…. If any of the following are true then a sound business architecture, by itself, is not the answer. It is not a magic bullet and it won’t: • Work without a well considered and realistic vision & strategy. • Overcome weak leadership or lack of ‘political’ will to see changes through. • Compensate for non-existent governance or poor / untimely decision taking. • Make any difference if once created it is never referred to or used again. • Be particularly suitable for small, routine, local or ‘continuous’ improvement activities. If any of these conditions exist they should be addressed first as a leading priority. So, to summarise…. www.kz-a.net 18 ©2011 KzA. ALL RIGHTS RESERVED.
- 19. If getting change “right first time” is essential, as in these times it surely must be…. Then, when setting off towards a new or unfamiliar goal or endpoint: • Would you begin a journey to a new destination without a map ? • Would you start building a new house without a blueprint ? • Then why would you undertake transformational change in any significantly sized organisation without a business architecture ? Now that you know about the role of Business Architecture, the rest is up to you! www.kz-a.net 19 ©2011 KzA. ALL RIGHTS RESERVED.