Business Architecture - 4

 

Book Description

‘Business Architecture: Collecting, Connecting and Correcting the Dots ’is the latest book for Roger Burlton. It deals with ways to design a business so that it can get better at continuous enterprise level change. Since there is so much pressure on organizations to never stop adapting to outside influences, a common-sense approach to navigating the effort and creating reusable business knowledge is required that is understandable, practical, and manageable. For Business Architects, Business Analysts and Business Managers, that is what this book is intended to do.

Its scope covers the lifecycle from business strategy to the implementation of the critical changes the organization most needs. It assures the conversion of business strategy into usable and effective business designs and optimum investment decisions. It identifies the main knowledge domains required to understand the business and connects these to assure an understanding of the impact of each on the others to assure that everything contributes to create optimum value on a continuing basis.

In a logical order and in a well-defined way it articulates what domain knowledge (dots) need to be collected, how these are connected, and which provide the greatest opportunity if corrected. The book covers the major transitions into and out of the main business architecture stages of ‘Define the Business’, ‘Design the Business’, ‘Build the Business’, and ‘Operate the Business’. It brings ways of making sure our strategic intentions are clear, agreed and always front of mind by establishing a direct interconnection of the artifacts. Models of the external ecosystem, business stakeholders, business information, business processes, business capabilities, change prioritization, and the performance management system are shown in detail along with their relationships to one another and to the
external environment of the business This knowledge reduces the risk of implementation surprises and unintended consequences.

‘Business Architecture: Collecting, Connecting and Correcting the Dots’ is loaded with illustrations and examples of how to capture architecture knowledge and how to represent the models to be built to communicate it. It is an essential companion guide for new business architects and analysts and is an ideal reference for experienced architects who will surely learn some new ways to enhance their practice. So, let’s get to it.

The Business Architecture Framework illustrates the framework behind the approach. Since it is a framework and not an unequivocal working instruction it has to be adapted to suit the challenge at hand.

The Framework is a tool to help us realize our Vision – our Dream – of what we wish to become. Our dream without the means of the framework is devoid of strategy – it’s just a hope. The Framework without a shared dream, however, is like sleepwalking – good walking but with no outcome of value realized. The book describes all the boxes in the four major quadrants and shows the alignment among them. For the purposes of this synopsis, I will focus on the big groupings of ‘Define the Business’, ‘Design the Business’, ‘Build the Business’ and ‘Operate the Business’. I will describe the Risks and Critical Success factors of each of these main phases. The challenge is how these connect among one another as well as how they align within each quadrant. I have heard many professionals say the job of moving from the top to the bottom of the framework is to translate from perspective to perspective. I prefer to think of the journey as a series of aligned interpretations considering the context of the effort and the need for different architects and business experts to understand one another in their own language. That role is one of interpretation more than literal translator. I think that great business architects bring additional value to the discussions.

Let’s look at the four building blocks from top to bottom.

Define the Business

This phase is intended to interpret the strategic direction of the enterprise in focus for architecture articulation. It may be the whole business or select value chains within it. Once done we should have an agreed unambiguous end state that we are striving to reach. It presumes that the business architect will not be a creator of business strategic intentions but will be an active participant or interpreter of it so all following architecture work can be executed and aligned to the intentions. Despite great hope this work is often not well done. Doing the rest of the business architecture phases without strategic clarity is a big risk.

Risks

Some of the risks at this point are that the existing statements are:

> not understandable or relatable to anyone except the writers

> not credible or perceived as a dream with no realistic chance of making it

> too complex to understand or alternately too naively simplistic

> unmeasurable with no chance of finding evidence of performance later to trace back

> done from an internal point of view and not outside-in on behalf of external stakeholders such as customers

> conducted as an exercise perhaps because it is that time of the year and the box has to be ticked

Critical Success Factors

Some factors critical for success are:

> separating and not confusing the end business objectives with the means of the ability

to get there

> establishing measurable outcome goals and targeted KPIs as shared objectives

> ensuring it is driven by external stakeholder needs first and foremost

> establishing timed checkpoints to mitigate risks

> conducting regular reviews and revisions to be able to adapt on the journey

> continually interpreting and communicating within the enterprise and assuring a sense of relevance

Design the Business

This Phase is intended to establish the foundation for the knowledge domains that describe the structure of what will have to be in place to convert the strategic intent and strategic capability requirements of the ‘Define the Business’ phase into real life assets that the business needs to have in place. Each of the component domains are highly interconnected and a change in any one will have consequences on the others. This phase is what many business architects consider the essence of business architecture. Each of these must be well defined while also be interdependently associated. All are needed. Any one alone will not suffice.

Risks

Some of the risks at this point are that the developed models are:

> developed with an academic methodological purity point of view or the developers get stuck in professional dogmatism

> focused on one single domain as opposed to a broader perspective that tackles the set of knowledge areas needed to work together as a whole

> derived from a business functional orientation as opposed to a cross functional value

> creating one with the consequences of being organizationally oriented not external stakeholder focused

> invented from scratch missing the opportunity to leverage knowledge gained and embedded in or the opposite where only an industry model is used

> seen as a constraint in getting to solutions so is short circuited – attention deficit

> lack of consideration for strategy as context / decision criteria for the structured models

Critical Success Factors

Some factors critical for success are:

> iterating within and among domains and updating each as we learn

> working from outside stakeholders and work to align to inside models

> assuring shared semantics and common meaning of all key terms used

> tracing each knowledge object to specific aspects of the strategic goals and objectives

> connecting performance indicators to processes and information quality

> communicating and collaborating with upstream (Define the Business) and downstream (Build the Business) players

Build the Business

This Phase is intended to make sure we decide upon the changes that are most impactful towards the strategy of the North Star and Strategic Requirements identified in Define the Business. In addition, it strives to assure the build out of business solutions happens in the optimum sequence for resourcing and management of these programs. It assures that the capacity of required resources – both human and technological – is balanced with other projects and programs which may be calling upon the same resources. It also tackles the development and implementation of all of the capabilities required to realize the benefits of the changes.

Risks

Some of the risks at this point are that the plans developed are:

> developed ignoring context of the Strategy and Business Design work in the prior phases

> siloed along the lines of disparate professional groups each of which defines its own unaligned plans and solutions independently

> redeveloped the plans of attack which do not stay aligned with others along the way

losing sight of the total need as we progress

> influenced by functional manager incentives in conflict with enterprise outcomes

> dominated by IT solutions as the prime factor disregarding other domains and solution components that are critical

> not synchronized by a cross functional governance framework or gating mechanism as we progress

Critical Success Factors

Some factors critical for success are:

> utilizing the strategic goals, North Star, KPIs and current performance as criteria for prioritization

> aligning all domains of ‘Design the Business’ in prioritization and including all in an integrated portfolio not just by domain

> tracking planned changes back to the gaps in current situations to assure no unanticipated consequences created by solutions

> using domain architectures to be sure of clearly defined scopes of each program initiative

Operate the Business

This Phase is intended to assure that the benefits of the business architecture work are continually realized and sustained, and that progress continues to occur as the business operates. It executes the new processes and capabilities and tracks performance results. Critically, it has in place a cross functional responsibility to assure there is no reversion to functional management solely. It is concerned with continuing to evaluate and improve and to identify needs for any needed larger scale improvement which will be communicated back to the beginning phases of ‘Define the Business’ and ‘Design the Business’.

Risks

Some of the risks at this point are that we may witness:

> there is little or poor training for workers to work in new ways and to adopt new behaviors

> the line managers lose sight of end-to-end management and cross-functional teamwork and revert to functional management and suboptimization

> no change sustainment mechanisms are executed to stay on track and improve for the whole

> goals do not cascade down and any that exist are contradictory and not aligned with one another

> accountabilities for stakeholder outcomes are fractured and sub optimal – there is no process ownership

> the ability to collaborate while operating or while changing is lacking

Critical Success Factors

Some factors critical for success are:

> establishing the measurement capability and monitoring of performance data

> execute a process governance framework for tracking and improvement

> making available a CoE for continuous improvement practices and governance support

> raising awareness and training all participants in their contribution to end-to-end outcomes

> monitoring and coaching the required behaviors and culture alignment

> escalating the needs for major changes when required

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Mastering Business Architecture: Insights with Roger Burlton

What is Business Architecture? Burlton’s Description

"To me, Business Architecture is just figuring out who you’re serving, why you’re serving them, and then figuring out how you’re going to serve them." 

Business Architecture tries to understand the outside world of the organization and you try to figure out how to line up the inside world of the organization in terms of the work you do, infromation you need and the tools you have to implement and execute and whether those tools should be put in the hand of the customer or through a call center. Architecture says, how do we best deliver against the expectations of those people sitting in the outside world!

It is about making sure we’re doing the right work for the right reason for the right people, at the right time.

"We’re making sure that everything we’re building or spending our money on improving is actually helping make that happen. So it’s keeping that traceability from the need all the way through to all the things we build, all the things we implement, all the people we hire, all the partners we have, making sure all that stuff is connected to the right outcomes. Business architecture will connect the dots. That’s one of the things in the book, right? Connect the dots. But connect the dots."

Perspective of Architecture in the world.

To build a building you need more than electricians, mechanics, plumbers, welders, etc. You need the running water and the plumbing to be efficient, you need the AC to have a functional heater, etc. You need to make sure all the various items are working, and working together.

Architecture from Technology P.O.V. 

This is very important because often times we believe technology is the savior for everything… but it has some enabling capabilities. It has to allow something to happen in business that’s going to make a difference. We’re seeing a lot of this with AI and digital technologies. These technologies are changing what is possible for our business. 

ChatGPT example: It is a great tool… but think- Who could use this in your organization? or how can our customers solve their own problems and be happier with this tool rather than having to talk to someone in a call center.

We have to remember these are tools to get work done, but to identify these technologies are and how they fit into the business.

Process Analysis before Architecture 

If you are trying to solve a problem, within an ill-defined scope or a scope which is going to help a particular executive inside the organization, but it isn’t the best thing for the customer can create a huge misalignment for an organization.

Everyone is working towards their end goal without realizing they’re just a means to a larger end. 

If you understand how to connect up, you can make better decisions, design structures, and choices on what to implement and what is important. Understanding what performance, you’re trying to drive and how to measure that.  Can I evaluate that and see how it is doing? How can I improve it or change it? Are there tools or new tools I have/can use? Then you can turn it all back around and evaluate if this is an opportunity? 

You need to understand the outside world first

Customer Profile’s Ready for Business Architecture

Market Structure Distinctions

Service-Oriented Companies

• Telecommunications
• Banks
• Retail

really have to get their systems down, and because it’s so competitive. If you don’t stay with it and don’t get it right- it doesn’t matter if you have great leaders in each department, it still won’t be right.  You’re going to suffer in the marketplace. Now what that what that says is, and it’s not this is not universally true because there are exceptions to this. So, it means that organizations which are more like government or monopolistic. I am working with a power company now.

Believe’s it to best Business Architecture success comes from the nature of an organization because their motivators aren’t just quarter results and next year’s bonus but on making good decisions about the long-term health of the organization.

Build for sustainability

We have to see Business Architecture as a way of life and not as a project. It is not a diet where you can go on a diet, get it off, think I’m good and then go back to the way I was. It’s actually about if you want to lose the weight, you have to change your lifestyle. You have to start with a diet, but better you have to commit to changing. It’s about building and continuing to grow sustainably. 

Challenges and Goals of Business Architecture 

Synthesizing and decision making

We don’t understand the impact of what we’re doing because we don’t spend enough time analyzing those, that synthesis. So, if I change, if I change how I run my process, I might mess up the next process. Or if I change what I want in the process, I might need different data that I don’t have. Or if I change the data, I don’t, or if I stop doing something. I may not realize that downstream somebody needs that information for regulatory reporting. And so pulling all it together, like the data, the process, the various capabilities we build, you know, all of those strategies have to make sense with one another. So if I go, I’m going to go pull, as you mentioned, pulling strings, if I pull on this string, I look in the ball of wool and I can see something else moving. I want to know what it is. before I change it.

The goal to success

The main goal here is to steer clear of unexpected consequences when we implement changes. The world we operate in is immensely intricate, but we can mitigate this complexity by clearly defining our processes, understanding the information we’re working with, deciphering policies and rules, and evaluating our skills, competencies, and overall culture. By doing so, we can determine the kind of performance we’re aiming for and, critically, we can assess how any alteration might affect all these interconnected elements. It’s like dipping our toes in the water before diving headfirst into designing and building systems.

Leadership Support 

Typically working with C-suite executives or one position below is the ideal target because you need the commitment of senior people to do things differently.

Business Architecture Framework

"While we have a framework, our approach primarily emphasizes freedom within it. This means that if you follow the general principles but occasionally begin from a different point or focus on information aspects instead of process aspects, it’s because we adapt to where individuals are, their readiness, and the nature of their specific problems.” 

Business Architecture Case Studies 

The story revolves around a consultant’s experience with a client who initially worked at a large bank in the secured lending division. This client sought the consultant’s help after hearing them speak at a conference. Together, they transformed the mortgage department and laid the groundwork for a significant technology platform.

However, the central focus of the story shifts when the client moves to a large health insurance provider on the West Coast. Upon taking the new position, the client immediately contacts the consultant for assistance once again. Together, they engage senior vice presidents and directors in a comprehensive training program. This program involves stakeholder analysis, defining a vision (the North Star), and developing a process architecture. Each leader becomes a champion for specific processes, resulting in positive changes within the organization and improved performance. The story underscores the importance of internal leadership support in achieving successful transformations.

 Business Partner’s Case Study

 The story revolves around a poorly managed but profitable organization that specialized in equipment resale auctions, particularly heavy-duty machinery. Despite their success, new leadership aimed for rapid growth, attempting to introduce numerous new products. However, the organization faced significant challenges, including the inability to generate accurate bills and reconcile their operations. A consulting team was brought in to help address these issues by developing an architecture for better operations and billing processes.

Amid these efforts, the organization was swayed by an external firm promoting agile product development, which led to a disjointed and disconnected introduction of new products. This lack of cohesion resulted in customer confusion, employee departures, and a loss of internal capacity to run the business effectively. The organization’s focus on growth came at the expense of providing quality service and retaining customers, leading to a decline in their customer base.

Despite the consulting team’s efforts, they struggled to gain the attention of the executive team, ultimately resulting in a failure to enact meaningful change within the organization.

Business Architecture Practices Seen Globally

Roger Burlton, drawing from his experiences, discusses business architecture practices globally. He highlights the disciplined approach seen in Scandinavian countries, particularly Norway, which has been influenced by a focus on quality, compliance with international standards, and a structured mindset. In Saudi Arabia, a notable emphasis on business architecture is evident across various industries, with the country successfully implementing national hospital and health systems based on this framework. It remains unclear whether this discipline stems from abundant opportunities or cultural factors, but it is a recognized need.

In contrast, Burlton notes the varying landscape in the United States, with some organizations excelling in commitment to excellence while others lack focus and rely on quick fixes. He suggests that the cultural and leadership mindset within organizations plays a significant role in determining their approach to business architecture. Overall, Burlton observes diverse practices and levels of commitment to business architecture on a global scale.

Is there a really important part or moment in this method, like a turning point or decision, or are all the steps equally important?

The story revolves around the importance of two key aspects in a method or approach, particularly in the context of decision-making and design.

1. First, it emphasizes the critical need to thoroughly understand the target audience and the underlying purpose of the work.

This understanding serves as a consistent set of criteria for making choices and investments. These choices should not be influenced by personal opinions or internal motivations but rather by the genuine needs of the external world, making decision-making less subjective.

2. Secondly, the story underscores the significance of breaking down complex enterprise problems into manageable parts, often referred to as an end-to-end process, value stream, or value chain.

This segmentation ensures that each part contributes value, making it easier to trace and comprehend the impact of various elements in the process.

Are there shortcuts to the methodology if you have a limited budget customer?

In a nutshell, when dealing with a limited budget customer, the approach is to initially get a broad understanding of the entire process without going too deep into the details. Then, prioritize the areas that are both strategically important and causing problems. Focus on these specific areas, delve deeper into them, and make improvements. The key is not to get lost in the details too early and be comfortable with some level of uncertainty. Instead of trying to understand everything perfectly, it’s better to take action, prove your value, and make a difference.

How does technology support Business Architecture?

Technology plays a crucial role in supporting Business Architecture in two main ways. First, it enables the execution of complex processes, ensuring seamless operations, and data flow. For example, in online shopping, from clicking to delivery and payment, technology connects everything without requiring human interaction. Similarly, in sectors like insurance, technology facilitates tasks like processing claims without direct human involvement, which is critical for operational efficiency.

Secondly, technology is essential for Business Architects themselves. Architects need tools to manage and organize the intricate components of business processes, data, and rules. These tools provide an inherent structure, allowing architects to see how different elements are interconnected. For instance, an architect needs to know if a specific business rule affects multiple processes, ensuring that changes to the rule won’t unintentionally disrupt other processes. In essence, technology serves as a knowledge management tool for architects, helping them avoid unintended consequences and efficiently manage complex business systems.

What does the Business Architecture lineage look like?

Business Architecture’s lineage draws from two main communities: enterprise architects and process improvement practitioners. Enterprise architects traditionally focus on defining technology infrastructure and how it supports business operations. They’ve realized the importance of understanding the business to enhance their work. On the other hand, the process improvement community, known for practices like lean and Six Sigma, has historically aimed to optimize processes. Over time, they recognized the need for a broader perspective on how processes fit into the larger business context.

These two communities bring distinct perspectives, and there has been some historical clash in their approaches. However, organizations are increasingly finding ways to harmonize these perspectives, resulting in a more unified understanding of Business Architecture. Today, these communities are working together more effectively, enhancing the overall approach to Business Architecture.

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