Building a useful target architecture - Myth or reality2
Today I’m going to talk about the value of building a target architecture and how it can be dome successfully. Success will depend on people’s enterprise –and with
‘enterprise’ I mean an initiative or entrepreneurial activity-. There needs to be appetite for participating in risky ventures. Without ‘enterprise’, innovations simply
Enterprise’ transforms ‘capital’ into ‘value’. Sometimes people ask me ‘What is the value of IT?’, IT is not the value! IT is the capital, the people using the technology are
the ones who will produce value!
Before going into this question (Myth or reality?) I want to explain the value chain for investing in ‘enterprise’.
2. Every organisation has within it a value chain for investing in their enterprise –whether it is a formal or informal value chain) and with that the capital they need.
The value chain for Enterprise Investment (EI)* needs to reflect how much of the organisation’s goals and objectives can be achieved through existing operations and therefor how much
needs to be invested in innovations.
The strategy of an organisation will reflect how the organisation acts and plans to act to achieve those goals and objectives.
The EI defines how the organisation achieves those goals and objectives through both the structure of the organisation and value of the organisation.
- Enterprise Architecture defines the structure of the organisation. Innovations, transformations and major changes alter that structure to achieve goals that are beyond what is already
possible. An enterprise architect needs to understands and be able to articulates what the existing structure can achieve, he/she needs to asses the structural impact of the changes
needed for the future, needs to initiate and design structural changes, and needs to make sure investments deliver the structure that is needed for the future.
- The Investment Portfolio Management defines the value of the organisation. It takes the Board’s goals and objectives and manages them as a portfolio of investment, and this as risk-
efficient as possible by pro-actively manage probabilities of success. Investment Portfolio Management is not the same as a Programme Portfolio Management. Investment Portfolio
Management delivers the Value and is a investment capability, the Programme Portfolio Management delivers the Change and is a sourcing or supply capability.
Sourcing ensures that the organisation has access to the right people, services, products needed for both operations and innovations.
Strategy + EI + Sourcing are the backbone or core capabilities of any organisation. In addition organisations will have other core capabilities that are determined by their strategy.
Supply is the delivery of non-core capabilities represented by people, services, products -> internal, external or via cloud.
*The Value Chain for Enterprise Investment - Chris Potts
3. Before making significant changes to the organisation we need to know that the organisation is ready for change.
At a strategy level there needs to be clear promises or outcomes defined, there needs to be a clear vision of the future of the organisation. Key principles need to be
defined and in place that will guide the activities and decisions. And everyone in the organisation need to know the core tactics of the organisation.
A second thing that needs to be done is think of ‘How will we know when we have achieved our goals?’, ‘What are the measurements?’. In other words ‘How does
success look like?’.
A very important aspect for a successful transformation –which is overlooked a lot- is the organisation’s culture towards change. There are some techniques out there
that can help in diagnosing the cultural readiness of the organisation. These techniques will highlight what needs to be tackled first before a major change or
transformation can be carried out.
Once you have that three well defined you can start designing different alternatives to achieve the strategic promises.
And of course once you have done the transformation it needs to become BAU so new innovations can take place.
That sets the scene for change!
4. Now I’m going to talk about some key tools you need for making fact based decisions on transformation.
On of the key tools to get a good overview of the organisation is a Business Capability model of the organisation.
I designed this one for the NZ Govt., but it can be used by any organisation:
- Enterprise Capabilities are capabilities that every organisation needs to have, like Finance management, Communication, IT, HR, procurement, relationship
- Generic Government Capabilities are capabilities that every government entity needs to have like Customer services, analytics, legislation and policy development
- Sector & Multi agencies capabilities like grants management, or core capabilities within the health sector, education, justice, etc.
- Agency specific capabilities which makes the agency unique
- Around those capabilities we have the behaviour and competencies the Govt. employees need like being customer centric, collaborative, self managing, outcome
driven, and be able to make decisions
- I also added the capabilities that customers and vendors or suppliers need to have to be able to interact with the govt. Currently those capabilities are very complex
and we are trying to simplify those capabilities.
Each of those capabilities are broken down into sub-capabilities according to: Strategy, Management (planning, governance, performance), Design/development, and
operations (operate, promote, delver, fix, charge, etc.)
5. Here is an example of a capability breakdown: Change Management
At strategic level:
- Transformation Strategy Design
- Change Sponsorship
At Management level:
- Transformation Planning
- Transformation Governance
- Change Resistance Management
- Benefit Management
- Change Readiness Assessment
At Design level:
- Programme and Project Management
- Requirements Management
At Operational level:
- Change Communication
- Change Coaching & Training
6. A second key tool is the portfolio.
A good portfolio structure is designed around those capabilities in 1 of 3 ways:
- Enterprise capability based portfolio
- Customer & business event based portfolio
- (and for government) Sector & Agency based portfolio
There can be a mix of those portfolio structure according to the needs of the organisation.
A third key tool is of course the Enterprise Architecture.
Here is one I designed for the NZ Govt. If you look at the EA we see that there are a lot of artefacts at different levels that needs to be in place and all aligned with each other.
There are 4 core dimensions:
- Business which contains Customers, Channels, Product & Services, People and Organisation, Processes
- Data and Information
- Applications & ICT services
Around these we have 4 governing dimensions:
- Strategy, Investment and Policy – where you will find the strategic plans, portfolios, Capability roadmaps
- Governance and performance where you will find the benchmarks and measurements, maturity assessments and targets
- Standards with National, International, and industry standards
- Privacy and Security with all the laws and regulations, guidelines, possible threats and vulnerabilities and the mitigations plans
Across those we have different perspective:
- Government Reference architectures and design patterns
- Government Transformation Programmes
- Government Capabilities
The Capability model, portfolio and EA all need to be aligned with each other.
8. Each sub-capability is mapped with the EA. Here is an example.
Core capability / sub-capabilities / Business Services / Application and ICT services / Data and Information / [additional] Infrastructure & Skills &
What I indicate per sub-capability is:
Does that capability – Uses or Utilises – that service, application, information, infrastructure, competency
– Produces or Provides –
– Impacts or Influences –
Once you have done this for all capabilities y9ou get an overview of the linkage between capabilities and resources available what we call a Hot Spot
9. Like this one.
You see clearly which Business services are used a lot by different capabilities and therefore are of high importance that they are as efficient as possible.
You also can see the impact on capabilities if you will update or replace an application.
Or changing the structure of an information asset.
And if you have added the infrastructure and skills:
- What are the critical infrastructures of the organisation
- What skills are needed
With this knowledge you can make more fact based decisions on change or transformation programmers
With all these things in place you can design a successful target architecture.
10. Here is an example of a design of a possible future of the NZ Govt.
If you look closely you see the different layers of capabilities coming back in this design. 9EC, GGC, S&MAC, ASP)
The architecture is based on events:
- Life events – for individuals, whanau, communities
- Business events – commercial or non commercial, national or international
- Environmental events – like earthquakes, flooding, disease outbreaks, etc.
- Civic events – building or repairing transport infrastructure, water infrastructure, etc.
- Government events – election, law change, policy change, war, aid, etc.
During the design of this high level target architecture I worked with agencies, students of Victoria University,. Public. I organised work session with each of these groups to come up with
A target architecture is a guideline for a possible implementation of the future. The further in the future you are designing your target architecture for, the more abstract and high level it
needs to be. Don’t expects that the implementation will reflect 100% the target architecture because there will always be changes along the way. That does not mean that the architecture
failed or that you don’t need an target architecture. It is a guideline and a way to make sure everyone in the organisation has the same direction. As long as the target architecture helps
guide the organisation in achieving its goals and objectives and it is flexible enough to meet the future needs.