The Architect as Strategist8wriz40sy4t1ph08pf5vo1dp-wpengine.netdna-ssl.com/...The Architect as Strategist Jeff Scott VP/ Business & Technology Strategy MACC Minneapolis November 13,

The Architect as Strategist

Jeff Scott

VP/ Business & Technology Strategy

MACC

Minneapolis

November 13, 2014

11/13/2014 © 2014 Accelare. Proprietary and confidential

A few strategy concepts

2

All strategy is not the same

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Where we play

and how we winBusiness Strategy

How we design

our organization

Changing

how we work

Operational

Strategy

Operational

Strategy

Business

Strategy

Operational

Strategy

Transformational

Strategy

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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

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.

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Strategy’s purposeCREATE FOCUS AND CLARITY


Strategic intent

Direction

Aspiration

Goals

Vision

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Why good strategy goes bad


Strategy execution is the BIG problem

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• 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 company’s strategy in its entirety

2010 HBR survey of 1,000 executives

We are really, REALLY bad at executing corporate strategy

Many organizations don’t 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 organization’s

strategyRobert Kaplan, Harvard Business Review


The strategy diffusion problem

9

75%

75%

75%

75%

75% 68%

61%

55%

49%

Strategic

effectiveness

coefficient



The architect’s role

10

Thinking shift OPPORTUNITY FOCUSED - NOT EFFICIENCY FOCUSED


Strategic

Effectiveness

Operational

Efficiency

11

Strategy to execution managementTHE PROCESS OF BUSINESS ARCHITECTURE


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 mappingPackage 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 mappingImplementation of Kaplan and Norton strategy mapping

process

Business model

development

Facilitate organizations in development of their business or

value delivery model.

Value chain analysisHelp organizations fully understand and clarify how they

create value

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Clarify strategySTRATEGY 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 IT’s 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

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Differentiate & illuminate VALUE MAP - STARBUCKS

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Start > Strategy > Value Map > Starbucks

11/13/2014

Differentiate Strategy – IT Inc. Value Map ALIGNING

WITH BUSINESS INTERESTS


Product Innovation

Identify New Opportunities

Lower Project Costs

Predictable Outcomes

Speed to Market Operational Efficiency

Start > Strategy > Value Map > IT Inc.

Business View

IT View

High

Low

Em

ph

asis New IT

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1416

Capability map– IT Inc.CREATE A BUSINESS VIEW OF THE OPERATING MODEL


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

SolutionsDelivery

5IT Administration & Management

4Program & Project

ManagementIT Planning &

Controls

Business Partnership

Management

1 2 3

Start > Capabilities > Capability Models > IT Inc.

17

PERFORMANCE is significantlybelow 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

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Capability assessment - IT Inc. AND UNDERSTAND WHICH CAPABILITIES NEED OPERATIONAL IMPROVEMENT


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

SolutionsDelivery

5IT Administration & Management

4Program & Project

ManagementIT Planning &

Controls

Business Partnership

Management

1 2 3

Start > Capabilities > Capability Models > IT Inc. > Performance

Meets or exceeds current needs

Needs minor improvement

Needs significant improvement

Heat Map Index

19

Root cause analysis IDENTIFY CAUSE


Why #2

Why #1 Why #3

Why #4

Why #5

Define the problem

Solve the problem

Plan and fund enhancementsCLOSE CAPABILITY GAPS


Assess progressKEEP YOUR EYE ON WHAT MATTERS


Start > Execution > Metrics > Strategy Momentum

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Create and manage the strategy to execution process


VISION & GOALS

STRATEGIES

CAPABILITIES

ASSESSMENTS

GAPS

• Focuses investments where they

will have the most business

impact

• Creates a direct line of sight

from strategic intent to day to

day activities

• Establishes a foundation for

continuous improvement

• Increases employee engagement

which drives innovation and

productivity

Creates an integrated and ongoing role for EAs

23

The role of the EA strategist

Focus management’s thinking

Clarify direction

Integrate new ideas

Identify new opportunities

Create broad consensus

Manage strategy buy-in

Be proactive – drive change


Just do it!

Jay LenoFirst job - car washer

J. K. RowlingAuthor – Harry Potter series

Stephen SpielbergFirst film industry job – unpaid intern


http://www.parade.com/export/sites/default/celebrity/slideshows/exclusive/jay-leno.html_71192267.html

http://www.parade.com/export/sites/default/celebrity/slideshows/exclusive/jay-leno.html_71192267.html

Stay in touch

11/13/2014

Jeff Scott

Email: [email protected] Phone: +1-704-275-1725

LinkedIn: www.linkedin.com/company/accelare

www.linkedin.com/in/logicalleap

Web: www.accelare.com

Things you might be interested in:

The Business Architect blog @ http://thebusinessarchitect.accelare.com/

Ask me about: The business architect’s roundtable

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Questions and discussion

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11/13/2014

THANK YOU

CONFIDENTIALITY AND INTELLECTUAL PROPERTY

These materials contain valuable confidential and proprietary information belonging to Accelare. All information contained

herein is protected by law, including but not limited to, copyright law. None of such information may be copied or otherwise

reproduced, repackaged, further transmitted, transferred, disseminated, redistributed or stored for subsequent use for any such

purpose, in whole or in part, in any means whatsoever, by any person without Accelare’s prior written consent.

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Documents

The Architect as Strategist8wriz40sy4t1ph08pf5vo1dp-wpengine.netdna-ssl.com/...The Architect as Strategist Jeff Scott VP/ Business & Technology Strategy MACC Minneapolis November 13,