Enabling Business Agility: The Business Agility Manifesto

www.processrenewal.com
© Process Renewal Group 2018
1
Roger T. Burlton, P. Eng., CMC
+1-604-240-5436
Roger.burlton@processrenewal.com
Twitter: @RogerBurlton
Enabling Business Agility:
The Business Agility
Manifesto

2
Notices
COPYRIGHT NOTICE
The content and materials included in this workshop, are copyrighted by Process Renewal Consulting Group
(2015) Inc.
Permission is granted for unlimited reproduction and distribution of this document under the following
conditions: (a) The copyrights and this permission notice are clearly included. (b) The work is clearly credited
to its the authors. (c) No part of the document, including title, content, copyrights, and permission notice, is
altered, abridged or extended in any manner.
FOR MORE INFORMATION CONTACT
Roger Burlton, Process Renewal Group, Suite 305 125 Milross Ave, Vancouver, BC, V6A 0A1,
Roger.Burlton@processrenewal.com , +1 604 240 5436

3
Ages and Revolutions: In the Knowledge Age, Change is Perpetual
Industrial
Revolution
Knowledge
Revolution

4
Agility is needed because of
• Accelerating change
• Digitalization and Technology
• Fast time to market
• Short time in market
• Fast change in market
• Customer centricity
• End to end value orientation
• Rising complexity
• Legacy artifacts
• Risk of change itself
• …
Our Enterprise
Social
Technical
Economic
Environ‐mental
Political
Legal

5
Our Concern and Motivation
Business Architecture Manifesto *
We are still focused on technology, machinery, techniques (e.g. lean, agile,
capabilities), speed, software … we are still writing code. We now have billions of
lines of code.
• Is it flexible? No.
• Is it integrated? No.
• Is it reusable? No.
• Is it interoperable? No.
• Is it aligned with business strategies? No.
• Is it secure? No.
• Is it meeting expectations? No.
* Ref: Burlton, Ross, Zachman …..

66
“True Business Agility” is the ability to modify dynamically the
concepts and structures of the business itself for maintaining
relevance in the context of a dynamically changing, complex and
uncertain operational environment.
Definition
John A. Zachman 2018
Business Agility Manifesto

7
Business Agility Manifesto – Core Concept Diagram
© Business Rule Solutions, LLC. 2017. , © Process Renewal Consulting Group (2015), Inc. 2017. © John A. Zachman, Zachman International. 2017.
Permission is granted for unlimited reproduction and distribution of this document under the following conditions: (a) The copyrights and this permission notice are clearly included. (b)
The work is clearly credited to its three authors. (c) No part of the document, including title, content, copyrights, and permission notice, is altered, abridged or extended in any manner.
Perpetual
Change
Business
Value
Concept
Model
Business
Knowledge
Business
Knowledge‐Base
Value Chain
Model
Value
Chain
helps ensure
provides
access to
frames
supports
describes
Business
Integrity
impacts
delivers
requires
is part of
Business
Strategy
drives
supports
Business
Capability
requires
depends on
is part of
is part of
Strategy
Perspective
Value
Perspective
Knowledge
Perspective

88
Let’s talk about
Strategy

9
General Management Imperatives:
The following General Management Imperatives are paramount for consideration and deliberate application in creating such an agile, dynamic operating business.
• Facilitate Business Change – Changes to the business in minimum time, with minimum cost, minimum disruption, and minimum risk of failure.
(“Change” includes market change, regulatory change, technology change, labor market change, strategy change, etc.)
• Create Value – Value for Customers, Shareholders, Community, Posterity, etc.
• Implement Business Strategies – Ensure Business Operations Implement the Business’ Strategic Intentions
• Provide Security – Physical and Cyber Security for People and Property
• Assure Sustainability – Sustainability in the Context of Business Ecosystem Changes
• Manage Business Risk – Risk of Loss of Money, Customers, Assets, Good Will, Credit, Compliance, etc.
• Encourage Appropriate Innovation or Control – Balance Disruption vs. Optimization
• Enable Collaboration – Collaboration Internally Within the Business as well as Externally with Other Businesses
• Optimize Resources – Identify/Qualify Investment Alternatives and Maximize Resource Utilization through Sharing and Reuse
• Manage Knowledge – Manage Business Knowledge for Knowledge Advantage
© Roger T. Burlton, Ronald G. Ross & John A. Zachman

10
Strategic Requirements: Assess STEEPL Factors
How should we deal with the external factors? What are the risks?
Our
Enterpris
e
Social
Technical
Economic
Environ‐
mental
Political
Legal
STEEPL Business Scenarios SWOT

11
Business
(Re)invention
Business
as Usual
Continuous
Improvement
Stable Dynamic
Dynamic
Stable
Products
& Services
Processes & Capabilities
Continuous
Innovation
Need a perpetual ability to dynamically adapt with as little disruption as possible
What True Business Agility Is

12
Perpetual Broadening Value Chains: The Real End-to-End
Collaborative Innovation from supplier’s supplier to customer’s customer
• A value chain describes all of the work
required to conceive, plan, market, sell,
deliver, optimize and manage a set of
products or services that satisfy a given set
of customers.
• All products or services servicing the same
market are the result of a single value chain.

1313
Let’s talk about
how value is
defined.

14
Outside Business Stakeholders Define What is of Value!
• Outside Stakeholders expect results from us
that are of value to them
• We have expectations from our Stakeholders
that will benefit us
• We jointly experience our relationship
• It’s more than just the Customer relationship

15
Stakeholder Value attributes: Who Cares?
There must be a relevant stakeholder
• All aspects are potentially important
• Exchanged Items
• Expected Outcomes
• Experience
• Some aspects could predominate
• Full value comes from full realization

16
Aspects of Business Value: What’s Important to Stakeholders at all levels?
What Things?
Exchanged Items
• Tangible things – the beginning of value
• Products, Services, Information and
commitments
• Items should be countable
• Items are not assessments

17
What Benefit?
Expectations of benefit
• What important stakeholder needs will be
achievable by receiving the items?
• What can the recipient do in their world
that they could not do before
• Falling short leads to relationship failure

18
What Experience?
Experience of interaction
• How did they feel while interacting with us?
• How we and they drive services
• How we and they interact with each another
• How we can differentiate when Exchanges
and Expectations are similar in the industry

19
Consolidated Value - Exchanges, Expectations and Experiences - is the
basis for measurement
Value Measures ‐ KPIs
Item Delivery Value
Benefit Value
Experience Value

20
The North Star: Integration of stakeholder value and KPIs
Value criteria before decisions – always!

21
Value Chains
• The Value Chain is comprised of a set of Value
Streams
• The Value stream is an end‐to‐end set of value
creating Processes (activities) that create a result
of value for a customer or other external
stakeholder in response to a specific trigger.
• The Value Streams provide a context for and are
enabled by business capabilities
Value Chain
Level1 Process
(Value
Stream)  1.0
Level 2
Process  (Value
Stream Stage)
1.1
Level 3
Process 1.1.1
Level 3
Process 1.1.2
Level 3
Process 1.1.3
Level 2
Process (Value
Stream Stage)
1.2
Level 2
Process (Value
Stream Stage)
1.3
Level1 Process
(Value
Stream) 2.0

22
Internal Business Design must Align with Outside Value Needs
Customer
Owner
Staff
Supplier
Regulator
I need to
increase
sales
I need to
reduce
risk
I need to
optimize
cash
I need to
cut costs
I need to
keep my
job
I need to
deliver new
products
I need you to
provide the
service you
promised

2323
Let’s talk about
Business
Knowledge

24
Business Knowledge
• Business knowledge covers all design characteristics of the business needed to create,
operate, manage, and change its value chains, as well as to evaluate their performance. It
also covers underlying business capabilities and enabling resources (financial, human,
facilities, equipment, etc.) on which value chains depend.
• Business Knowledge must be deliberately managed by means of a concept model, which
also serves to enable its reuse.

25
Connecting Concepts To form a Concept Model
Partner
Partnership
Agreement
Regulation
Regulator
Consumer
Order
Financial
Service
FS Agreement
Is given for
provides
Provides
authorization for
is relevant for
Constrains Commits to
places
Financial
Transaction
Agrees to
Small sample involving Stakeholders: Consumer, Regulator and Partner
prices
Concept Model
a set of business concepts as represented by standard
terms and business definitions along with the logical
connections among the concepts

26
Business Knowledge Management
• Effective management of business knowledge requires that it be rendered in explicit,
accessible, protected, sharable, re-usable, retainable, and updatable form accessible to all
business audiences.
• Effective management of business knowledge requires a formal storage facility for
sustaining its currency and integrity.
• The Business Knowledge-Base is critical for locating and reusing business capabilities,
and for dynamically predicting and mitigating the impacts of change.

27
Business Knowledge Domains: example of many-to-many interdependent
associations
Business processes require shared capabilities delivered as shared services
Things we do, measure and
manage
Things we develop, implement
and use
Capabilities that must change to
improve broken processes
Capabilities
Processes
Processes impacted by any change in
capability
S

2828
In Conclusion

29
Agile and Agile: FREEDOM WITHIN A FRAMEWORK
“True freedom is not the absence of structure
— letting the employees go off and do whatever they want —
but rather a clear structure that enables people to work within
established boundaries in an autonomous and creative way.”
Erich Fromm (1900—1980)
German‐born American psychoanalyst and social
philosopher

30
In Summary
Today’s reality if you wish to become an Agile Business *
• The Industrial Revolution saw major casualties
• The Knowledge Age is happening with or without you
• Pressures will require new business models and operating models
• Value Chains and Business Processes are the foundation for work and management
• Organizational models will change dramatically
• Separate domains of concern, especially the stable from the variable
• This is not about software
* https://busagilitymanifesto.org/

31
Have you achieved business agility?
Not unless …
Characteristic Rating (0‐5)
You have minimized risk of catastrophic failure.
Your business managers can make simple course corrections without fear of prohibitive IT costs.
Your business managers have time to consider the big picture instead of always fighting fires.
Your customers get consistent business results through all channels.
You can demonstrate compliance anywhere, anytime, in real time.
You can manage complexity at scale as a matter of course.
Your core business processes are not impacted when you lose key workers.
You do not have to reinvent, re‐specify and redesign core business knowledge from scratch on each new
project.
You coordinate and disseminate core business knowledge to workers in a systematic way.
You know what your business rules are and you can change them easily.
Your corporate memory is automated and free of disconnects and gaps.
Your software release cycle is largely irrelevant to changes in business policy.

Enabling Business Agility: The Business Agility Manifesto

Empfohlen

Empfohlen

Weitere ähnliche Inhalte

Was ist angesagt?

Was ist angesagt? (20)

Ähnlich wie Enabling Business Agility: The Business Agility Manifesto

Ähnlich wie Enabling Business Agility: The Business Agility Manifesto (20)

Mehr von IIBA UK Chapter

Mehr von IIBA UK Chapter (20)

Kürzlich hochgeladen

Kürzlich hochgeladen (20)

Enabling Business Agility: The Business Agility Manifesto