Business and Information Technology (hereafter referred to as business-IT) alignment is so passé. Welcome the (relatively) new concept called Business-IT aggregation. The phrase “business aggregation” sometimes refers to a corporation that’s controlled by several key investors tasked to manage the corporation based on a succession plan. The word “aggregation” means the sum of the parts, the totality of components, or simply “the whole”. One dictionary (AllBusiness.com, 2010) defines it as “any bringing together of parts or units to form a collective whole.”
Why Johnny Still Can’t Write Rules
Business rules administration constitutes the core value proposition of any advanced business rules management system (BRMS) solution and, quite often, represents the holy grail of enterprise BRMS implementations. With the promise of propelling IT into an agile, flexible, and faster policy deployment environment, business rules administration capabilities often serve as key drivers for many cost benefit cases. However, less than 60% of these implementations actually leverage the full promise of BRMS offerings, ending up by managing business rules projects much like any other conventional software project. More importantly, business rules are too often not managed by those who should be empowered to manage them – i.e., business owners and stewards. Why does this happen?
The ‘Understand’ Phase of Development
This article covers an issue within Business Process Management (BPM) redesign which is often not fully discussed. Frequently, development groups are eager to get the team fully engaged as quickly as possible. Looking at “as is” situations (examining, modeling) may receive slight attention as being “bygones” – “Let’s start with a clean slate.” The issue is deciding how quickly to begin computerized development after a project or analysis has been scheduled.
There are different aspects of business growth and development. One faction may wish to apply technology to change its business as quickly as possible, while another may prefer to proceed cautiously and methodically, moving only after research and through using a well-tested methodology. Which is correct? The classic answer is “It depends.”
Human Risk Biases
Except for natural disasters such as earthquakes, floods, or hurricanes, all risks are man-made. This article is a synthesis of three past Harvard Business Review articles. The bibliography is at the end of the piece. Project Managers (PMs) usually have very little control of the risk circumstances in which they are placed. Taken together, viewing risk from the combined perspectives of the authors cited should help PMs assess risk in their own environments. Summarizing the titles as follows: “Right Risks,” “Is it Real?” and “Hidden Traps” will help us consider the contribution of each, and then meld them into the PM’s decision process.
The Right Risks
Launching a Business Architecture Community of Practice
Business Architecture (BA) is no longer just an emerging discipline or an “interesting concept”. It is increasingly being leveraged by enterprises to provide tangible value. And within Wells Fargo, Business Architecture has been gaining momentum, slowly but surely, through the activities of a growing BA community, involved in numerous efforts in or related to Business Architecture.
First, let’s define Business Architecture. The following is a consolidation of several definitions that have been around in the industry, and it captures quite well the quintessence of BA:
Business Architecture is a disciplined approach to creating and maintaining business-specific artifacts that serve as a formal blueprint for the planning and execution of strategy across the enterprise.
BA covers the following major areas:
Get Out of the Gate Quickly: The First Five Steps to BPM
If you don’t get off to the right start with a BPM Project, there are all kinds of consequences such as:
- Needing to change process owners mid stream
- Wasting time focusing on the wrong goals
- Not involving the right resources
- Missing critical information and making poor decisions
- “Buying” the technology solution
Continuous Improvement – Now!
Do you notice any built-in contradiction in the title of this article? A naïve approach to Continuous Improvement (CI) would be to attempt to benchmark Toyota, and just do what they do. That would be OK if: 1) You make automobiles, and 2) You have fifty years of Toyota management experience. Without those advantages, you would do best to consider a modified strategy.
It’s not easy to change, and usually not fruitful to change precipitously. An anecdote from an unnamed country, several wars ago, decided to mechanize the cavalry. An inspector, reviewing the prototype of the new battalion, marveled in the shiny new personnel carriers and tanks. However, he then noticed two soldiers standing off to the side, apparently doing nothing. When he inquired, he was told: “They are there to hold the horses.”
Building Business Architecture That Endures
Two of my biggest passions are business architecture and participating in endurance events like an Ironman® or an ultramarathon. Having excelled in both over the years taught me a few lessons. At the end of the day, every business architect’s goal to improve decision-making and accountability for business outcomes is not much different from an endurance athlete’s goal to win. I even coined the term “endurance architect” to aptly describe what I do. In my opinion, an endurance architect is someone who can bring the lessons from the playing field to the boardroom and vice versa to achieve sustainable profitability and/or self-actualization. How do we achieve these lofty goals? Let me start with the nuances of strategy and outline the steps of achieving success through strategic co-alignment, with examples from an endurance architect’s point of view.
What is strategy?
We Modeled the Processes – Are We Finished Yet?
Not quite! I can’t tell you how many companies I have worked with who announced we have modeled all the current state process or say we want to begin by modeling all their As Is processes. And they ask, can you help us with that? There is nothing wrong with modeling processes, but it takes a long time and it doesn’t produce improvements. Modeling processes is just one of the first steps. I suggest modeling the processes you want to improve and do them in groups of three or one by one. Then analyze each and improve them to see business results.
So if you’ve only done the process diagramming, what do you need to do next? Look at the roadmap below showing the phases of a BPM/ process improvement project.
Process Based Governance and the Role of SLAs
By now, it is fairly well known that the root causes of excessive costs and errors, of delays and inflexibility, are related to the non value added handoffs across organizational boundaries. In most companies, work is fragmented across multiple departments, product lines and business units. No one has end-to-end ownership of the flow of work or responsibility for flawless service to the customer. In such environments, redundant activities and duplication of effort is common, errors are frequent, and overall responsiveness to customers’ needs is elusive. The key to resolving these issues is to take action on redesigning customer touching end-to-end processes and then install a governance framework which assures cross departmental collaboration, encourages different units to work together for value creation, and makes the changes stick.