The Business Architect as Strategist

The Architect as Strategist
Jeff Scott
VP/ Business & Technology Strategy
MACC
Minneapolis
November 13, 2014

A few strategy concepts
© 2014 Accelare. Proprietary and confidential 2

Transformational
Strategy
All strategy is not the same
Where we play
and how we win
How we design
our organization
Changing how
we work
Operational
Strategy
Business
Strategy

Not all strategy is strategy
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© 2014 Accelare. Proprietary and confidential

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.

Strategy’s purpose
Create Focus and Clarity
Strategic intent
 Direction
 Aspiration
 Goals
Vision

7
Why good strategy goes bad

Strategy execution is the BIGproblem
• 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
• 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
88
We are really, Really bad at executing corporate strategy
© 2014 Accelare. Proprietary and confidential

The strategy diffusion problem
9
75%
75%
75%
75%
75% 68%
61%
55%
49%
Strategic
effectiveness
coefficient

The architect’s role

Thinking shift
Opportunity Focused – Not Efficiency Focused
Strategic
Effectiveness
Operational
Efficiency

Strategy to execution management
The Process of Business Architecture

Strategy development and
articulation services examples
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 mapping
Package 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 mapping
Implementation of Kaplan and Norton strategy mapping
process
Business model development
Facilitate organizations in development of their business or
value delivery model.
Value chain analysis
Help organizations fully understand and clarify how they
create value

Clarify strategy
Strategy on a Page
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

Differentiate & illuminate
Value Map – Starbucks
My WorkFit > Strategy > Value Maps > Starbucks
WorkFit Jeff Scott 
Create New Value Map Edit/Delete Value Map Export Starbucks (Example) 
MapData
Value Map:

My WorkFit > Strategy > Value Maps > IT Inc.
Create New Value Map Edit/Delete Value Map Export Starbucks (Example) 
MapData
Value Map:
Differentiate strategy – IT Inc. value map
Aligning with Business Interests
Product
Innovation
Identify New
Opportunities
Lower Project
Costs
Predictable
Outcomes
Speed to
Market
Operational
Efficiency
Business View
IT View
High
Low
Emphasis
New IT

Capability map – IT Inc.
Create a Business View of the Operating Model
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,
& 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
My WorkFit > Capabilities > Capability Models > IT Inc.
Tile View Edit This Model Export/Print CapabilityView:
1Business Partnership
Management
IT Inc.
2IT Planning &
Controls
3Program & Project
Management
4IT Administration
& Management
5Solutions Delivery

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
Advantage
Capabilities
Essential
Capabilities
Strategic
Support
Capabilities
Business
Necessity
Capabilities
GreaterStrategic&ValuePropImpact
Greater Financial Impact

Capability assessment – IT Inc.
And Understand Which Capabilities Need Operational Improvement
Reengineering
(to Customers)
1.4 Manage Customer
Relationships
Models
2.1 Manage EA
& Innovation
2.6 Manage Policy
3.1 Plan Portfolio
& Governance
& Governance
Delivery
4.2 IT Performance
Management
Planning
4.5 Manage IT
Services/Products
5.2 Define & Manage
Management
Analysis
5.7 Test Solutions
&Harvest
My WorkFit > Capabilities > Capability Models > IT Inc.
Tile View Edit This Model Export/Print PerformanceView:
Management
IT Inc.
High Heat Medium Heat Low Heat
2IT Planning &
Controls
3Program & Project
Management
4IT Administration
& Management
5Solutions Delivery
11/12/2014as of
Meets or exceeds current needs
Needs minor improvement
Needs significant improvement
Heat Map Index

Root cause analysis
Identify Cause
Why #2
Why #1 Why #3
Why #4
Why #5
Define the problem
Solve the problem
People
Leadership/Vision
Management Discipline
Performance Management
Accountability
Compensation
Communication
Collaboration & Teamwork
Ability to Make Decisions
Skills
Lack of Resources
Funding
Compliance
Training
People
Process
Supplier
Input
Process
Output
Customer
Regulator
Business Rule
Process Owner Clarity
Facilities
Tools
No Clear Process
Process
Technology
Functionality
Availability
Access
Performance
Reliability
Integration with Other Systems
Data Quality
Agility/Adaptability to
Change
Technology

Reengineering
(to Customers)
1.4 Manage Customer
Relationships
Models
2.1 Manage EA
& Innovation
2.6 Manage Policy
3.1 Plan Portfolio
& Governance
& Governance
Delivery
4.2 IT Performance
Management
Planning
4.5 Manage IT
Services/Products
5.2 Define & Manage
Management
Analysis
5.7 Test Solutions
&Harvest
Management
2IT Planning &
Controls
3Program & Project
Management
4IT Administration
& Management
5Solutions Delivery
Plan and fund enhancements
Close Capability Gaps

Assess progress
Keep Your Eye On What Matters
Start > Execution > Metrics > Strategy Momentum
View ReportStrategy Momentum
The strategy momentum metric assesses the organization’s support for a given strategy or family of strategies. It
measures the number of strategy support opportunities taken in terms of resources and financial allocations. It
works similar to a stock index – higher investment indicates the perceived future value of the strategy.
Metric
Notes (0)Edit Detail
Owner:
Category:
Format:
Jeff Scott
Momentum
Frequency:
Display Type:
Quarterly
Line
Datasource:
Datasource info:
Budgets and project plans
Trend Owner
Links Add Link Documents Add Document
Jeff Scott
VP Business & Technology Strategy
jeff.scott@accelare.com
Business architecture, strategy development,
organizational innovation

Create and manage the
strategy to execution process
• 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 architects
Assessments
Capabilities
Gaps
Vision and Goals
Strategies

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

Just do it!
Jay Leno
First job – car washer
J. K. Rowling
Author – Harry Potter series
Stephen Spielberg
First film industry job – unpaid intern

Stay in touch
Jeff Scott
Email: Jeff.Scott@accelare.com 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

Questions and discussion

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 reproduced,
repackaged, further transmitted, transferred, disseminated, redistributed or stored for subsequent use for any such purpose, in whole or
in part, in any means whatsoever, by any person without Accelare’s prior written consent.

The Business Architect as Strategist

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