Tuesday, July 13, 2010

Organizational Change & Business-IT Alignment

Organizational change is never easy. It is also unavoidable. Organizations face an ever increasing rate of change. New business opportunities and threats emerge daily. Global competition impacts nearly every industry. Technology advances at a blistering pace. It even changes customer expectations about the products and services an organization provides and how it interacts with its customers.

Enterprise Architecture and Roadmaps can ease the pain of change. With these tools, an organization can navigate forward; avoiding pitfalls and delays. Even with these tools, people remain both the key resource for, as well as greatest challenge to, implementing organizational change.


Aligning groups and individuals throughout the organization builds synergy. This alignment must be architected ‘Top-Down’, and must address structure, roles, responsibilities, and objectives. The structure must reflect the scope of work to be preformed by a group as well as its interfaces with other groups. Roles and responsibilities must be defined so as to accomplish the scope of work and collaborate with other groups. The group and individual objectives must be aligned with the business and IT strategies and plans according to their function and level. This last item is perhaps the most overlooked aspect for many companies.


Aligning groups and individuals can be approached along three lines of reasoning: 1) Business-IT Alignment; 2) Financial-Execution Alignment; and, 3) Governance Alignment. Think of these as ‘Three Pillars’ extending from the Business through Enterprise Architecture to IT. When groups and individuals are aligned so as to support the Business-IT Alignment, changes to the vision become measurable results –IT solutions. IT investment becomes more focused as groups and individuals work within the Financial—Execution Alignment. Increasing synergy across the organization is apparent when groups and individuals engage in the Governance Alignment.


Metrics can be aligned using the ‘Three Pillars’ approach. Some organizations experience difficulty defining metrics that roll-up to meaningful business and IT KPIs. The ‘Three Pillars’ pose questions: 1) How well are business and IT aligned?; 2) How well are business and IT performing?; and, 3) Did we obtain the results we expected? The latter supports metrics that verify we conducted processes as we intended, and that validate what we intended is actually correct.


__ Joseph Starwood (www.JosephStarwood.com)

Goverance and Enterprise Architecture Roadmaps

Many organizations struggle to establish and mature their Enterprise Architecture Roadmaps. The challenges they face are numerous: organizational change, cultural change, skills development, process change, technology adoption, etc. Enterprise Architecture Roadmaps improve alignment between business objectives and IT investment, and enhance communication between business and IT stakeholders.

Some organizations are finding support from the “10-Step Roadmapping Process” from the Enterprise Architecture Executive Council (EAEC; https://www.eaec.executiveboard.com/Public/Default.aspx). This process provides a customizable set of frameworks that embody the ‘Best Practices’ for building and maintaining sound roadmaps.


EAEC’s “10-Step Roadmapping Process” integrates Governance. Two aspects are emphasized: 1) Determine Ownership; and, 2) Establish Metrics.


Roles and responsibilities, especially around decision rights, are incorporated within the Determine Ownership aspect. To achieve Business-IT alignment the organizational structure and the group and individual performance objectives must also be considered and brought into alignment. The Determine Ownership aspect also sets the cadence for activities. This is critical to ensuring that progress meets key business deadlines while avoiding ‘quick shortcuts’ that jeopardize long-term business objectives.


Metrics are essential for establishing an objective and quantitative measure of success. EAEC’s “10-Step Roadmapping Process” emphasizes the success of Enterprise Architecture Roadmaps. However, metrics are also essential to measuring Business-IT Alignment, Financial-Execution Alignment, and Governance Alignment.


Just as Business-IT Alignment is architected ‘Top-Down’ from Business to IT, so to must Ownership and Metrics be architected ‘Top-Down’. This facilitates arriving at the minimum number of well-aligned roles and metrics necessary to achieve success.


__ Joseph Starwood (www.JosephStarwood.com)

An Approach to Business-IT Alignment

There are many methods and models for establishing and maturing Business-IT alignment as well as unifying IT disciplines – at least as many as consulting companies offering business and IT products and services!

Unfortunately, theses methods and models have limitations. Some are more applicable to one industry or another. Some are more applicable at the strategic level. Most emphasize the tactical level where IT products and services can be sold.

There is an opportunity to bridge the gaps between Business and IT, between strategy and tactics, and between development and operation of IT solutions. This opportunity and its challenges can be approached along three lines of reasoning: 1) Business-IT Alignment; 2) Financial-Execution Alignment; and, 3) Governance Alignment. Think of these as ‘Three Pillars’ extending from the Business through Enterprise Architecture to IT.

Enterprise Architecture bridges the Business Operating Model to the IT Operating Model. It establishes Business-IT alignment. IT Management and its many supporting IT disciplines bridge business objectives to IT automation and controls. These establish Financial-Execution alignment. Architecture Governance bridges Corporate Governance to IT Governance. It establishes Governance alignment. (Many organization place Enterprise Architecture team within the IT department. This may contribute to viewing Architecture Governance as a subset of IT Governance. However, Enterprise Architecture is primarily a strategic business discipline at the nexus of business and technology.)

There is good reason to utilize a ‘Three Pillar’ view. Some organizations are moving their Chief Architecture Officer (CAO) or Chief Enterprise Architect (CEA) under the COO in their executive structures. This is being done to ensure alignment between the Business Operating Model and the IT Operating Model. Some organizations are moving their CIO or CTO under the CFO in their executive structures. The CIO or CTO reports on matters of IT cost, risk, and performance. Recently, many organizations added a Chief Governance Officer (CGO) role to their executive structures in response to new regulatory requirements. The CGO reports to the CEO on matters of corporate governance and regulatory compliance.

__ Joseph Starwood (www.JosephStarwood.com)

Governance & Business-IT Alignment

Many organizations struggle to build synergy across their IT departments. They turn to consultants for expertise on unifying IT; obtaining assessments of their current IT alignment and maturity as well as recommendations for improvements. The organizations apply some of the recommendations, and adopt various methods and standards as a basis for aligning IT disciplines. Yet, in the end, they must ask themselves, “Did we get the results we expected?”

Governance is essential to establishing and maturing the interfaces between IT disciplines; thereby reducing and eliminating ‘IT Silos’. Governance verifies that we conduct each discipline and exchange information across each inter-discipline interface as we intended. It also validates that what we intended is actually correct. Governance provides management of IT disciplines during their normal operation. It also provides control for these disciplines when issues are encountered and exceptions (exemptions) are required.

Architecture Governance plays a key role in establishing IT alignment with the business. This is critical to validating that what IT intended is actually the correct thing to do for the business. It ensures that the Enterprise Architecture and Roadmaps conform to the business strategy and plans. The strategic alignment establishes a solid foundation for unifying IT.

Architecture Governance further contributes to IT unity through its integrations with other IT disciplines. It ensures that each Target Architecture, a milestone along the Enterprise Architecture Roadmap, furthers the strategic alignment while balancing short-term and long-term objectives. The resulting models and documents provide direction for the subsequent IT disciplines that develop and operate IT solutions.

Through Architecture Governance, professionals executing the IT disciplines are assured that their efforts are focused on doing the right things for the right reasons.

__ Joseph Starwood (www.JosephStarwood.com)

Tuesday, June 22, 2010

The Times They Are a-Changin' __ Bob Dylan

Are you an ‘IT professional’? Are you sure about that?

In We’re Not in IT Anymore, an executive survey results analysis, the Corporate Executive Board “…predicts that three out of every four IT roles will either migrate to business services, evolve into business roles, or will be externalized by 2015.” (http://www.executiveboard.com/it/pdf/The_Future_of_Corporate_IT.pdf)

Those who have followed my postings know my position: professionals in the IT department are business professionals who know and apply information technology for the benefit of the business! So the results from this survey come as no surprise.

However, the implications are profound. The pace of change will be rapid and far-reaching. According to the Corporate Executive Board “…we are embarking on one of the most significant changes to corporate IT in years.” Some challenges are predictable. Organizational change will place great stress on change management functions and maturity, on Human Resource services, and on individual professionals in existing IT departments.

The Enterprise Architectures within these changing organizations will also be under great stress; testing the robustness, flexibility, and maturity. As Enterprise Architects, we must aid our executives in preparing for this significant change. Our efforts to achieve Business-IT Alignment, between the Business Operating Model and the IT Operating Model (IT Vision), will support a smoother transition.

At “Integrate 2010: Uniting the World of IT”, a two-day conference in Cleveland, Benku Thomas, Nour Laaroubi, and I will present a model for establishing Business-IT Alignment through Enterprise Architecture. (http://gcle.itsmfusa.org/?q=content/integrate-2010) We also show how to bridge the chasm between strategic and tactical; that is between the Enterprise Architecture and the IT initiatives (Portfolio projects and Asset enhancements).

__ Joseph Starwood (www.JosephStarwood.com)

Saturday, June 12, 2010

Enterprise Architecture Implications of Social Media Influence on Corporate Brand

This morning, I met Brian Butvin for breakfast at Yours Truly Restaurant on Chagrin Boulevard in Beachwood, OH. He is a good friend who I’ve known for 20 years. Brian has remarkable wit and insight. It is always a pleasure to discuss nearly any topic with him.

I as drove to this breakfast meeting, I was intrigued by a radio program, “Living on Earth”, broadcast on WKSU. This episode, “BP’s Image Problem”, discussed whether BP's image can survive the oil spill disaster. Naturally, I discussed the program’s content with Brian.

The program’s host, Jeff Young, interviewed John Carroll, a media analyst, about the crisis facing BP’s brand and its sunburst logo. Though social media was not explicitly mentioned, the interview covered Twitter, YouTube, and Google in addition to traditional advertising.

Mr. Carroll observed that, “… BP finds itself in this situation where A) nobody believes a word they say, B) reality trumps PR every time, and C) they can't control their message even if the first two weren't in effect, because there are too many competing voices out there.” In comparing BP’s oil spill crisis to the Tylenol’s product tampering crisis, he also observed that, “Advertising used to be this one-way street, now it's a two way street, it's a conversation. You don't create your brand anymore. You collaborate with consumers to create your brand.”

It is these observations that are of interest to Enterprise Architects. Social media impacts each organization in good circumstances and in bad. It does not matter whether an organization engages in or refrains from social media. Enterprise Architects are investment advisors to the organization’s executives on matters of information technology. They are concerned with costs and risks; including risks arising from social media.

Social media presents new challenges to the Enterprise Architect. Social media extends the enterprise boundaries beyond the organization’s walls. This includes information exchanges and IT assets not under the organization’s control. Social media requires additional attention to exception conditions; especially those associated with moments of corporate crisis. Such conditions may be real or perceived, and may arise from cause, as in BP’s oil spill case, or from criminal activity, as in Tylenol’s product tampering case.

Enterprise Architects must guide their executives toward establishing a Social Media Strategy. This strategy must be aligned with the business strategy and plan as well as the marketing strategy and plan. It must address traditional outbound communications as well as inbound communications. Uniquely, it must also address communications about the organization and its brand that are neither outbound nor inbound. This strategy must cover normal and exception (crisis) conditions, and must address social media’s many forms including text, image, and video.

The Enterprise Architect counsels the organization’s executives on social media’s benefits and risks. The executives must come to understand that avoiding social media or applying reactive policies will not protect the organization. The Enterprise Architect mitigates social media risk by applying information technology to enable the organization to respond quickly and effectively in moments of crisis.

Prudent executives would do well to heed the advice from their Enterprise Architects who can best prepare their organizations to weather the social media storm in times of crisis.

REFERENCE: “BP’s Image Problem”, Living on Earth and World Media Foundation, Broadcast on WKSU, 2010-JUN-12,
http://www.loe.org/shows/segments.htm?programID=10-P13-00024&segmentID=6

__ Joseph Starwood (
www.linkedin.com/in/JosephStarwood)

Monday, May 24, 2010

Integrate 2010: Uniting the World of IT

I am pleased to announce a very special joint event from NEO-IASA, itSMFusa, NOSQAA, NEO-SPIN, and HDI North Coast Ohio:

Integrate 2010: Uniting the World of IT
June 24-25, 2010 in Cleveland, OH


Keynote Speakers:
  • Scott Ambler. IBM
  • David Cannon, HP
  • George Spalding, Pink Elephant
  • Bob Balassi, Maryville Technologies

Abstract:
In spite of the unequivocal recognition of the need for Business - IT Alignment, the corporate IT departments continue to operate thru the silos of Enterprise Architecture, Application Development and Operations. In order to become a true business enabler, IT must not only deliver services fast but also ensure smooth and cost-effective operations. This requires a holistic approach to designing, delivering and managing IT services across the service lifecycle and mandates systematic integration of processes and tools across Enterprise Architecture, Application Development, and IT Operations.

Integrate 2010 aims to bring professionals from all silos of IT under one roof and draw attention to the critical yet often ignored area of integration of Enterprise Architecture (EA), Application Development (AD) and IT Service Management (ITSM).

An Essential Conference for Professionals in IT
Recent economic, regulatory, and technological events are creating new challenges and opportunities for Northeast Ohio business. Business and IT alignment is needed now more than ever to meet these challenges and capture new opportunities.

Integrate 2010: Uniting the World of IT brings the Enterprise Architecture, Application Development, and Operations disciplines together. Enterprise Architecture is essential to aligning IT with the business, and to establishing the direction for Application Development. This is an important conference for IT & Enterprise Architects as well as their stakeholders.

Scott Ambler has been and remains at the forefront of unifying IT disciplines. He is a thought-leader in Enterprise Unified Process (EUP), Enterprise Architecture, and Agile software development.
NEO-ITEA invites its members and friends to this important conference.

About Scott W. Ambler
Scott Ambler is a software engineer, consultant and author. Currently, he is the Practice Leader Agile Development at IBM Corporation in the IBM Methods group. He is the author of several books focused on the Unified process, Agile software development, the Unified Modeling Language, and CMM-based development. Notable books include: 1] Enterprise Unified Process: Extending the Rational Unified Process; and, 2] The Practical Guide to Enterprise Architecture (with James McGovern, Mike Stevens, James Linn, Vikas Sharan, and Elias Jo)


Event Highlights:
  • Two content-rich days packed with insightful sessions by industry experts in EA, AD and ITSM
  • Four keynotes - One each in the area of EA, AD and ITSM and one dedicated to the integration of these three areas
  • Four tracks (four sessions per track) - One each dedicated to EA, AD and ITSM and one dedicated to the integration of these three areas
  • A joint communique / manifesto extolling the principles of integration of EA, AD and ITSM to be released by industry experts
  • Exhibitor area for vendors
  • To be held within the Greater Cleveland area with target audience from OH, Eastern Michigan, Indiana and Western Pennsylvania

Websites:
http://gcle.itsmfusa.org/?q=content/integrate-2010
http://itsmfusa.org/
http://www.neoiasa.org/

REGISTER NOW!
This conference is an incredible value at only $49.oo!
http://itsmfusa.org/greater-cleveland-lig-integrate-2010-attendee

Contacts:
itSMFusa: Dhiraj Gupta, President
NEO-IASA: Joseph Starwood, Secretary

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