Business Architecture Performance Management: Does It Really Exist?

Gordon Barnett

It is that dreaded time of year again where we have to report via the performance management system (PMS) on our individual performance and the value we bring to the organization. I say dreaded, because we all know that in reality the goals and objectives were set some time ago in the past, maybe a year ago, and a lot has happened since that time. The person you report to may have changed, you were redirected to other tasks, and so on. Everything seemed possible at the time of the objective setting, but now the reality hits that you were or may have been far too optimistic about your own capability. The self-assessment is difficult as you are not sure whether your manager has the same view as you. You believe you met the objective, but does their expectation meet your actual delivery? If a good performance relates to more money, the pressure and stress builds.

So whilst I was preparing for my Orlando Business Architecture Forum presentation I started to think about how business architecture teams measure and manage their performance. One of my next reports for Forrester’s business architecture playbook addresses BA performance. It was also a hot topic for the EA Council members in Orlando. I had a number of 1-on-1’s with clients who particularly asked about BA metrics and performance — in particular, “What do other business architecture teams do?”

I started listing the questions that, when answered by clients, would lead to a very valuable report for all BA leaders:

Do you measure your BA’s performance? Clients often advise me that they have fairly mature BA practices. However, very few can articulate how they measure their performance, and often comment that the business asks them to demonstrate how BA adds value. So, it would be useful to understand whether BA leaders measure their team’s performance and why they do or don’t.

Read more

2012 EA Award Winners: Business-Focused, Strategic And Pragmatic

Alex Cullen

In Forrester’s EA Practice Playbook, we describe high-performance enterprise architecture programs as “business-focused, strategic, and pragmatic.” They are business-focused so that the direction and guidance EA provides has clear business relevance and value. They are strategic because the greatest value EA brings is to help its business to achieve its business strategies. They are pragmatic because, well, the path to strategy is never straight, and EA teams who aren’t agile in their approach get pushed aside.

This year’s InfoWorld/Forrester EA Awards program used this theme to find and recognize our 2012 winners:

  • National Grid, facing the enormous changes to the utility industry, developed an enterprisewide business capability model and made that the center of their joint business-IS planning. The result? All the way up to the C-level, EA is being recognized as a strategic change agent.
  • Scottish Widows Investment Partnership “reinvented” their EA program, centered on a business capability model developed over four weeks, and used to organize and link all the EA portfolios. They now have business managers as well as EA using their architecture planning tool.
Read more

Think Like A Lean Startup For BPM Success

Clay Richardson

Outside of BPM, one of my other passions is mentoring college students through the process of launching new startups. I enjoy helping students tighten up their business ideas and seeing them build business plans that can attract the funding they need to stand up and implement their ventures.

Recently, after reviewing and providing feedback on a student’s business plan, the student responded, “I can launch my business without a business plan; all this planning seems like a waste of time.” At first, I thought he was joking. However, I could read by the look on his face that he was serious. I am sure you can imagine the conversation that followed.

The next day when I reflected on the conversation, I had a moment of satori. I could see that startups share the same risk/reward profile as business process management initiatives. Just like startups, BPM initiatives promise huge returns to investors and stakeholders. Additionally, just like startups, BPM initiatives are fraught with risks such as inadequate funding, low adoption, and difficulty attracting skilled resources.

My conversation with the student about the importance of business planning seemed to parallel conversations I often have with enterprise architects and business architects launching or retooling their BPM initiatives. Most tend to overestimate the BPM’s potential rewards and downplay — or do not fully understand — the risks involved with launching a BPM initiative. However, for the most successful BPM initiatives, I have found that their leaders tend to have a “lean startup” mentality.

What does it mean to have a “lean startup” mentality?

Read more

Focus Your Information Strategy On Business Impact

Gene Leganza

Today’s organizations must manage the explosive growth of all types of information while addressing greater-than-ever business demand for insights into customer needs and the business environment. Meanwhile, the significant regulatory and compliance risk associated with information security has increased the urgency for tightly controlled information management capabilities. These requirements are hard to meet, with scant best practices available to tame the complexity that firms encounter when trying to manage their information architecture. Enterprise architects must define the organizational capabilities they need to develop and evolve their information resources — as well as the technology to exploit them. You can only achieve all this with a coherent information strategy that defines and prioritizes your needs and focuses resources on high-impact goals.

Read more

Embrace Mobile To Deliver A New Value Proposition For BPM Excellence

Clay Richardson

Arguably, mobile is currently the hottest trend driving both business and technology strategies for executives. If you need any additional evidence, just look at all of the enterprise buzz Apple has generated with the iPhone 5 launch. Unfortunately, today’s business and technology leaders continue to respond to the mobile opportunity with the wrong answers. Business leaders respond to mobile with, “Let’s build a really slick mobile app, put it up on iTunes and we’re done!” Technologists respond to mobile with, “We need a strong BYOD policy and to put device management tools in place!” Both of these responses completely overlook the fact that underlying legacy applications and business processes need optimizing for the mobile experience.

We run into examples of this “lipstick on a pig” approach to mobile all the time. In fact, I ran into a perfect example of this recently when I needed to order a pizza for my family after a very hectic Saturday afternoon. When I picked up my mobile phone to call the pizza delivery place, a light bulb went off over my head. Instead of dialing the pizza delivery company and waiting on hold for 15 minutes, why not download its mobile app in two minutes and order my pizza within another two minutes. I figured I could shave off ten minutes of wait time by simply downloading the pizza delivery company’s mobile app.

Read more

Today’s EA Methods Can’t Handle Continuous, Pervasive Business Change

Henry Peyret

Enterprise architects I talk with are struggling with the pace of change in their business.

We all know the pace of change in business, and in the technology which shapes and supports our business, is accelerating. Customers are expecting more ethics from companies and also more personalized services but do not want to share private information. Technology is leveling the playing field between established firms and new competitors. The economic, social, and regulatory environment is becoming more complex.

What this means for enterprise architects is that the founding assumptions of EA — a stable, unified business strategy, a structured process for planning through execution, and a compelling rationale for EA’s target states and standards — don’t apply anymore. Some of the comments I hear:

“We’re struggling with getting new business initiatives to follow the road maps we’ve developed.”

“By the time we go through our architecture development method, things have changed and our deliverables aren’t relevant anymore.”

“We are dealing with so many changes which are not synchronized that we are forced to delay some of the most strategic initiatives and associated opportunities.”

The bottom line is that the EA methods available today don’t handle the continuous, pervasive, disruption-driven business change that is increasingly the norm in the digital business era. Our businesses need agility — our methods aren’t agile enough to keep up.

Read more

Business Needs To Take A Moneyball View On Performance

Craig Le Clair

I recently finished reading Moneyball, the Michael Lewis bestseller and slightly above-average Hollywood movie. It struck me how great baseball minds could be so off in their focus on the right metrics to win baseball games. And by now you know the story — paying too much for high batting averages with insufficient focus where it counts —metrics that correlate with scoring runs, like on-base percentage. Not nearly as dramatic — but business is having its own “Moneyball” experience with way too much focus on traditional metrics like productivity and quality and not enough on customer experience and, most importantly, agility.

Agility is the ability to execute change without sacrificing customer experience, quality, and productivity and is “the” struggle for mature enterprises and what makes them most vulnerable to digital disruption. Enterprises routinely cite the incredible length of time to get almost any change made. I’ve worked at large companies and it’s just assumed that things move slowly, bureaucratically, and inefficiently. But why do so many just accept this? For one thing, poor agility undermines the value of other collected BPM metrics. Strong customer experience metrics are useless if you can’t respond to them in a timely manner, and so is enhanced productivity if it only results in producing out-of-date products or services faster.

Read more

Why Your Company Needs You To Attend Forrester’s Business Architecture & Process Summit

Alex Cullen

The pace of business change is accelerating. The reason why it is accelerating is the mushrooming of disruptive factors: your customers expecting anytime/everywhere access to you through their mobile devices, competitors leveraging big data technology to rapidly execute on customer-centric value propositions, and new market entrants with lean business models that enable them to outmaneuver your business.

Most companies deal poorly with disruptive change. If they are the “disruptor,” seeking to use these disruptive factors to steal market share, they often run without a plan and only after, for example, a poor mobile app customer experience, realize what they should have changed. If they are the firm being disrupted, the desire for a fast response leads to knee-jerk reactions and a thin veneer of new technology on a fossilized back-office business model.

This is where the value of business architects and business process professionals comes to play: you help your company plan and execute coherent responses to disruptive factors. That’s why your company needs you to attend Forrester’s Business Architecture & Process Forum: Embracing Digital Disruption in London on October 4 and Orlando, FL on October 18–19, 2012.

  • We’ll start with James McQuivey describing how technology is changing the playing field for disruption in his keynote: The Disruptor’s Handbook: How To Make The Most Of Digital Disruption.
  • We’ll look at how firms have used technology to rethink their operating models, eliminating low-value activities to focus on what their customers value in Craig Le Clair’s Implementing The Different In The Age Of Digital Disruption.
Read more

It Doesn't Matter Where EA Lives — So Let's Stop Arguing About It

Brian  Hopkins

George Colony, our CEO, just released a post on his blog about enterprise architecture, aptly enough named “Enterprise Architects For Dummies (CEOs).” I retweeted the post to my followers and received a flood of responses, most of which were violently disagreeing with George’s assertion that EA works for the CIO. I think this is a pointless argument, but underscores a very important change that most are missing.

Here’s what I mean:

  • The objection to putting EA under the CIO is based on an old-school notion.That notion is that CIOs are chief technology infrastructure managers. Our data shows that the role of CIO is changing, fueled by cloud and other as-a-service technology. CTOs or VPs of IT are increasingly taking on the job we used to think of as the CIO, while progressive CIOs are evolving to something else. Locating EA under the CTO is a bad idea, we all agree.
  • Every business is a digital business.If you don’t believe me, I’ll send you a pile of research. There is no such thing as a non-information-centric business anymore — or at least there won’t be for very long, because they are going out of business. Forrester has been using the term “business technology” (BT) for a while to indicate that there is no room for having separate business and IT — it simply won’t work much longer. Even in the most paper, analog verticals, we can give you example after example; check out Monsanto’s IFS (they are a seed company!).
Read more

The First Rule Of Big Data — Don't Talk About Big Data

Brian  Hopkins

I’ll be chairing Big Data World Europe on September 19 in London; in advance of that event, here are a few thoughts.

Since late 2011, we’ve seen the big data noise level eclipse cloud and even BYOD, and we are seeing the backlash too (see Death By Big Data, to which I tweeted, “Yes, I suppose, ‘too much of anything is a bad thing’”). The number one thing clients want to know is, “What is my competition doing? Give me examples I can talk to my business about.” These questions reflect a curiosity on the part of IT and a “peeking under the hood to see what’s there” attitude.

My advice is to start the big data journey with your feet on the ground and your head around what it really is. Here are some “rules” I’ve been using with folks I talk to:

First rule of big data: don’t talk about big data. The old adage holds true here — those that can do big data do it, those that can’t talk <yup, I see the irony :-)>. I was on the phone with a VP of analytics who reflected that her IT people were constantly bringing new technologies to them like a dog with a bone. Her general reaction is, show me the bottom-line value. So what to do? Instead of talking to your business about big data, find ways to solve problems more affordably with data at greater scale. Now that’s “doing big data.”

Read more

Categories: