Transcript
Page 1: Strategy to Execution - c.ymcdn.com · Strategy to Execution Translating Strategy Into Business Value ... Start > Strategy > Value Map > Starbucks . Value map – IT Inc. ALIGNING

Strategy to Execution Translating Strategy Into Business Value

Jeff Scott VP/ Business & Technology Strategy

OMG/BA Guild BA Summit Reston VA March 19, 2013

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Who is Accelare?

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Thought Leadership

Powerful Technology

Innovative Process

• Writer: – Currently publish the blog: The Business

Architect – Have written over 50 research reports and

articles for Forrester Research, Cutter Consortium and others

• Speaker: – Regularly speak at industry conferences,

universities, user groups, and companies on the topics of strategy management, business architecture, and organizational innovation

• Mentor: – Work with a small number of business leaders

and business architects to facilitate their growth and success

Business Architect Advocate

Experts in strategy management

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Enterprise Business Architecture Isn’t . . .

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Yogi Berra

“In theory, there is no difference between theory and practice. In practice there is.”

Business architecture isn’t what you produce – its what you do

Mission: To solve complex business and organizational problems

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You have a choice of where to work

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Strategic

Effectiveness

Operational

Efficiency

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We need to solve the real problem

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Context

Problem

Symptom

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Strategy execution is the BIG problem

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

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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

strategy Robert Kaplan, Harvard Business Review

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The organizational reality — strategy diffusion

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75%

75%

75%

75%

75% 68%

61%

55%

49%

Strategic effectiveness

coefficient

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What’s the solution?

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Strategy to execution management THE PROCESS OF BUSINESS ARCHITECTURE

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Clarify strategy CREATE FOCUS AND CLARITY

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Strategic intent Direction Aspiration Goals

Vision

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Value map - Starbucks NEW EXPERIENCE BY EMPHASIZING NEW ATTRIBUTES

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Start > Strategy > Value Map > Starbucks

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Value map – IT Inc. ALIGNING WITH BUSINESS INTERESTS

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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

Emph

asis

New IT

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Identify capabilities CAPABILITIES LINK STRATEGY TO ACTION

Capabilities: • Create a common language

for change • Provide a foundation for

assessment • Identify investment priorities

• Create a leadership centric

viewpoint of the organization

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Capability map– IT Inc. CREATE A BUSINESS VIEW OF THE OPERATING MODEL

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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

Solutions Delivery

5 IT Administration & Management

4 Program & Project

Management IT Planning &

Controls Business

Partnership Management

1 2 3 Start > Capabilities > Capability Models > IT Inc.

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PERFORMANCE is significantly below 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

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Capability assessment - IT Inc. UNDERSTAND EACH CAPABILITY’S VALUE CONTRIBUTION

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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

Solutions Delivery

5 IT Administration & Management

4 Program & Project

Management IT Planning &

Controls Business

Partnership Management

1 2 3

Business Necessity Capabilities

Essential Capabilities

Strategic Support Capabilities

Advantage Capabilities

Capability Value Index

Start > Capabilities > Capability Models > IT Inc. > Value Contribution

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Capability assessment - IT Inc. AND UNDERSTAND WHICH CAPABILITIES NEED OPERATIONAL IMPROVEMENT

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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

Solutions Delivery

5 IT Administration & Management

4 Program & Project

Management IT 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

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Plan and fund enhancements CLOSE CAPABILITY GAPS

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Invest where and when it matters ALIGN CAPABILITY EVOLUTION TO MAXIMIZE BUSINESS VALUE

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Intended strategy

What we’d like to

happen

Emergent strategy

The many day-to-day decisions and

prioritizations that set direction

Realized strategy

What actually occurs

Unrealized strategy

Things that are left behind

Deliberate strategy

Top-down plans, statements, and initiatives

Assess progress RECOGNIZE THAT STRATEGIES ARE DYNAMIC

The role of the business architect is to get you where you want to be

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Assess progress KEEP YOUR EYE ON WHAT MATTERS

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Metrics

Change Acceleration Assessment

Overall Investment Roadmap Health

Future State Metrics

Bottom Line Benefits (Customer

and Investor)

Enables

Delivers

Yields

Metrics

Metrics

Metrics

Metrics

Organizational measures that indicate our ability to sustain change

Process and organization KPIs that correlate to our Value Map

Customer and Financial KPIs

How are we executing our investment roadmap

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S2E value proposition

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VISION

GOALS

STRATEGIES

CAPABILITIES

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 BAs

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Stay in touch

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Jeff Scott Email: [email protected] Phone: +1-704-275-1725

LinkedIn: www.linkedin.com/company/accelare

Web: www.accelare.com Twitter: @accelare

Blog: http://jeffscott.accelare.com (The Business Architect)

Webinars: Quarterly business architecture oriented webinars

BA Tools: The Business Architect’s Toolkit

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Questions

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