Enterprise Architecture as a “Discipline” for Putting Business Strategy into Action Association for Strategic Planning

1. Enterprise Architecture as a “Discipline” for Putting Business Strategy into ActionAssociation for Strategic PlanningAnnual ConferenceFebruary 27, 2007 Proprietary & Confidential

2. Objectives • Discover new insights into the strategy execution dilemma. • Discover Enterprise Architecture (EA) as a “discipline” for strategy execution. • Learn how to apply EA to solve the strategy execution dilemma. • Learn the foundational steps to establishing an effective EA.

3. Agenda • The “Strategy Execution” Dilemma • Enterprise Architecture 101 • Applying EA to Solve the Strategy Execution Dilemma • Six Steps to Developing an EA

4. The “Strategy Execution” Dilemma: We have an exceptionally well-thought-out strategic plan BUT (shhhh) we still don’t know what to do!!!

5. More on “The Dilemma” • Many strategic planning efforts yield plans that are heavy on the financial goals and broad business targets but light on the planning • Staff outside the board room find little useful content in the strategic plan and are left without real guidance on how to make the strategy happen • Year-end success is determined based on financials since few/no other performance metrics are identified during the strategic planning process

6. Recognize the Signs • When asked the same question about corporate priorities, different employees give different answers • Operational decisions are difficult to make (e.g., enterprise purchases, project priorities and investments, resource allocation) • More dollars go to initiatives that do not directly support the enterprise strategy than to initiatives that do directly support the enterprise strategy .. Remember, you are what you spend your money on!!! • Chronic “mark missing” • Many goals and objectives are in the plan but no plans are in the plan • Support departments (HR, IT, Marketing, etc.) have their own, strategic plan for meeting their own strategic goals

7. The Typical Culprits .. The 3 Ps • The Process … the strategic planning process • The Plan … the strategic plan itself • The “People” … the planners and executors

8. Culprit #1: The Process • Does not engage the right people • Performed too infrequently (usually annually) • Inadequate communication of the plan • No (or ill-focused) performance measurements • No governance .. no rules, no structure, no accountability

9. Culprit #2: The Plan • Is not “actionable” .. no insight into how to make the strategy happen .. no roadmap .. no “how to” • Does not make clear what the program priorities should be; too much left to interpretation • Does not make allowances for having the right resources focused on the right priorities • Does not consider downstream impacts

10. Culprit #3: The People • Employees (the “executors of the plan) do not know the corporate strategy • Employees do not feel accountable to the plan • Employees do not know how their job contributes to the strategy • Lack of organizational enablers (e.g., no executive champion, no funds, no resources) • Organizational roadblocks .. resistant culture and/or no change management infrastructure

11. The “Strategy Execution” Dilemma Question: How do you make strategy actionable down to the lowest level of an enterprise?

12. Enterprise Architecture 101

13. Where Did EA Come From? • In the beginning there was … • the Zachman Framework for Enterprise Architecture and Information Systems Architecture (John Zachman, 1987) • the Spewak EA Planning Method(Steven Spewak, 1992) • Then there was… • the Clinger-Cohen Act of 1996 (formerly the Information Technology Management Reform Act) • DODAF (Department of Defense, 2002 formerly C4ISR) • TOGAF (The Open Group Architecture Framework) • TEAF (Treasury Enterprise Architecture Framework)

14. Where Did EA Come From? (con’t) • Now we also have … • EA3 (Dr. Scott Bernard, 2004) • FEA (Federal Enterprise Architecture, 2002; replaced Federal Enterprise Architecture Framework) • EA as Strategy (by Jeanne W. Ross, Peter Weill, David Robertson; Harvard Business School Press, 2006) The discipline and practice of EA is constantly evolving and maturing!

15. Enterprise Architecture Defined • The Breakdown • “Enterprise” • a business .. encompasses all aspects about the structure, operations and outputs of the organization • “Architecture” • a structure or structural description • Putting it All Together • “Enterprise Architecture” • a structure or structural description of all aspects about the structure, operations and outputs of an organization EA is a description of how a business works!

16. Enterprise Architecture IS… • A blueprintof an organization and serves as • a communication tool that provides need-to-know information about an enterprise in an easy-to-understand format • a management aid that enables resource alignment and promotes governance • a decision-making framework that provides a roadmap for what actions are necessary to align with the mission and execute strategy at all levels of an enterprise • an operational resource for illustrating how all enterprise pieces contribute to the big picture

17. Enterprise Architecture IS… • A processfor • maintaining “views” of the enterprise • validating the data and information captured about an enterprise • managing strategic initiatives (budget, schedule, resources, dependencies) • ensuring compliance with the enterprise’s target position (strategically, operationally and technically)

18. Why the “Blueprint” Analogy? • Like a Blueprint … • an Enterprise Architecture provides an actionable illustration of what has been and needs to be built • an Enterprise Architecture is comprehensible by all who need to “build” from it • an Enterprise Architecture is accessible by all who need to work from it

19. So What’s in the Blueprint? • A snapshot of what an organization looks like today .. called an “As-Is” architecture; • A design for what an organization should look like in the pre-defined future .. called a “To-Be” architecture AND … • A plan that depicts how an organization will move from the “As-Is” state to the “To-Be” state .. called a Transition Plan.

20. To-Be Architecture + Transition Plan=EA Enabled Strategy Execution

21. Simply Stated … • An EA presents a logical, executable path to a pre-determined desired state (“To-Be” architecture) from the many viewpoints of “actors” within an enterprise. • These “viewpoints” are represented from an integrated strategy, business and technology perspective.

22. Enterprise Architecture is about mission and strategy alignment with enterprise operations and resources.

23. What Does an EA Look Like? • An EA illustrates … • how critical business processes and rules relate to one another and to the enterprise mission and strategies • how information flows to enable the business processes which, in turn, enable mission and strategy execution • who the users, actors and stakeholders are • what resources are used by whom, for what and when • strategic priorities and their impact to the enterprise financially, operationally, technically and strategically

24. What Does an EA Look Like? (con’t) • Can be in the form of models, diagrams, text, flows, dashboards or any combination that works! • Should have many views • for techies, it may be a collection of system diagrams, data models, etc. • for management, it may include org charts, conceptual diagrams, an enterprise dashboard, what-if scenarios, etc. • for project managers, it may include an enterprise project plan and a portfolio of initiatives • for the workforce it should include a combination of all views! EA is tailored to the perspectives of the executors!!!

25. .. For Executive Management

26. .. For the IT Professional Source: Zachman Institute for Framework Advancement www.zifa.org

27. Goals Objectives Strategies Actions Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 Objective #1 Strategy #1 Action #1 Prerequisites : xxx Decision Point: xxx Justification: xxxx Justification: xxx Dependencies : xxx Considerations: Baseline: xxxx Corrective Measures : Resources Needed : xxx Players: xxx Perform ance Metrics: xxx Owner/Actor : xxx Action #2 Prerequisites : xxx Dependencies : xxx Resources Needed : xxx Owner/ Actor : xxx Decision Point: xxx Considerations: Action #3 Players: Prerequisites : xxx Dependencies : xxx Expand Reach Within Existing Customer Base Resources Needed : xxx Decision Point: xxx Owner/Actor : xxx Considerations: Strategy #2 Action #1 Players: Prerequisites : xxx Justification: xxx Dependencies : xxx Corrective Measures: Resources Needed : x xx xxx Decision Point: xxx Owner/Actor : xxx Considerations: Action #2 Players: Prerequisites : xxx Dependencies : xxx Resources Needed : xxx Owner/Actor : xxx .. For the Project Manager

28. .. For the Workforce Source: “Using the Living Enterprise Design”, Dr. Scott Bernard http://btmg.biz/enterprisearchitecture.htm

29. The Key to an Actionable EA .. .. is to have as many views at as many different levels as is necessary to enable effective operational decision-making throughout the enterprise.

30. Applying Enterprise Architecture to Solve the “Strategy Execution” Dilemma!

31. The Issues: Does not engage the right people Performed too infrequently (usually annually) Inadequate communication of the plan No (or ill-focused) performance measurements No governance .. no rules, no structure, no accountability EA as the Solution: Engages the entire organization in the development and maintenance activities .. promotes ownership and accountability An EA is a “living” resource requiring continuous updates in order to remain current and effective An effective EA is published and accessible to everyone within an organization Metrics by which progress against the To-Be State and the targeted results are captured An embedded governance structure ensures proper maintenance of and compliance with the EA EA Addresses the “Process” Culprit

32. The Issues: Is not “actionable” .. no insight into how to make the strategy happen.. no roadmap .. no “how to” Does not make clear what the program priorities should be; too much is left to interpretation Does not make allowances for having the right resources focused on the right priorities Does not consider downstream impacts EA as the Solution: Transition Plan provides a decision-making framework that presents a path from the current state to the target “To-Be” Architecture combined with the Transition Plan clarifies the direction of the organization and provides details about the initiatives required to make the transition a reality Enables focus of the right resources on the right priorities by depicting what needs to occur when and outlining what resources are needed Aligns operations across the organization by identifying the “tentacles” and considering downstream impacts in the plan EA Addresses the “Plan” Culprit

33. The Issues: Employees (the “executors” of the plan) do not know the corporate strategy Employees do not own or feel accountable to the plan Employees do not know how their job contributes to the strategy Lack of organizational enablers No executive champion, no funds, no resources Organizational roadblocks .. resistant culture and/or no change management infrastructure EA as the Solution: The EA contains tailored “views” for various levels and functions of the enterprise Makes clear who owns/is responsible for what EA must begin with the identification and endorsement of an executive champion and an organizational culture ripe for transformation EA Addresses the “People” Culprit

34. Six Steps to Developing an EA • Obtain Executive Buy-In • Select Methodology & Toolset (process and tools for developing & maintaining EA) • Design “To-Be” Picture (business, data, systems, technology) • Document “As-Is” Picture (business, data, systems, technology) • Develop Transition Plan (gaps, close-gap initiatives, implementation plan) • Maintain the EA (update “As-Is”, “To-Be” and Transition Plan as initiatives are implemented and business strategies change)

35. Objectives Revisited • Discover new insights into the strategy execution dilemma. • The Typical Culprits .. the 3Ps. • Discover Enterprise Architecture (EA) as a “discipline” for strategy execution. • EA is a blueprint for how an enterprise “works” with an embedded process for proactively managing the views of an organization. • Learn how to apply EA to solve the strategy execution dilemma. • Maintain EA as a “living” resource for depicting where an enterprise is today, where it will be in the future and an actionable plan for making the transition. • Learn the foundational steps to establishing an effective EA. • Six steps to developing an Enterprise Architecture.

36. Suggested Resources • Bernard, Dr. Scott. An Introduction to Enterprise Architecture. Bloomington: AuthorHouse, 2004. • Ross, Jeanne W., Peter Weill, David Robertson. Enterprise Architecture as Strategy. Boston: Harvard Business School Press, 2006. • Association for Enterprise Architecture www.aeajournal.org • EA Community www.eacommunity.com • The Federal Enterprise Architecture www.egov.gov • The Zachman Framework www.zifa.com

37. Questions???

38. Tanaia Parker is President of T. White Parker and the National Capital Area Chapter of the Association for Strategic Planning www.twhiteparker.com tanaia.parker@twhiteparker.com 703-753-5430