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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
© 2014 Accelare. Proprietary and confidential
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
11/13/2014 © 2014 Accelare. Proprietary and confidential
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
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Strategic intent
Direction
Aspiration
Goals
Vision
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© 2013 Accelare. Proprietary and confidential. Do not copy. 7
Why good strategy goes bad
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Strategy execution is the BIG problem
© 2013 Accelare. Proprietary and confidential. Do not copy. 8
• 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
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The strategy diffusion problem
9
75%
75%
75%
75%
75% 68%
61%
55%
49%
Strategic
effectiveness
coefficient
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11/13/2014 © 2014 Accelare. Proprietary and confidential
The architect’s role
10
Thinking shift OPPORTUNITY FOCUSED - NOT EFFICIENCY FOCUSED
11/13/2014 © 2014 Accelare. Proprietary and confidential
Strategic
Effectiveness
Operational
Efficiency
11
Strategy to execution managementTHE PROCESS OF BUSINESS ARCHITECTURE
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Strategy development and articulation services examples
11/13/2014 © 2014 Accelare. Proprietary and confidential
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
13
Clarify strategySTRATEGY ON A PAGE
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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
15© 2014 Accelare. Proprietary and confidential
Start > Strategy > Value Map > Starbucks
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Differentiate Strategy – IT Inc. Value Map ALIGNING
WITH BUSINESS INTERESTS
© 2014 Accelare. Proprietary and confidential
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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Capability map– IT Inc.CREATE A BUSINESS VIEW OF THE OPERATING MODEL
11/13/2014 © 2014 Accelare. Proprietary and confidential
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
© 2014 Accelare. Proprietary and confidential11/13/2014 18
Capability assessment - IT Inc. AND UNDERSTAND WHICH CAPABILITIES NEED OPERATIONAL IMPROVEMENT
11/13/2014 © 2014 Accelare. Proprietary and confidential
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
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Why #2
Why #1 Why #3
Why #4
Why #5
Define the problem
Solve the problem
Plan and fund enhancementsCLOSE CAPABILITY GAPS
11/13/2014 © 2014 Accelare. Proprietary and confidential 21
Assess progressKEEP YOUR EYE ON WHAT MATTERS
11/13/2014 © 2014 Accelare. Proprietary and confidential
Start > Execution > Metrics > Strategy Momentum
22
Create and manage the strategy to execution process
11/13/2014 © 2014 Accelare. Proprietary and confidential
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
11/13/2014 © 2014 Accelare. Proprietary and confidential 24
Just do it!
Jay LenoFirst job - car washer
J. K. RowlingAuthor – Harry Potter series
Stephen SpielbergFirst film industry job – unpaid intern
11/13/2014 © 2014 Accelare. Proprietary and confidential 25
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
© 2014 Accelare. Proprietary and confidential 26
Questions and discussion
© 2014 Accelare. Proprietary and confidential11/13/2014 27
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
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purpose, in whole or in part, in any means whatsoever, by any person without Accelare’s prior written consent.
© 2014 Accelare. Proprietary and confidential 28