respect as an architectural issue: a case-study in business survival
DESCRIPTION
The client: a large bank in Latin America. The business problem: loss of respect of the company in the market and the broader community, plummeting from highest to lowest in the region in a matter of months, with impacts throughout all aspects of the business. This real-life case study explores, step-by-step, the actual practices and underlying architecture principles that were used to tackle a major strategic issue with enterprise-wide scope, and set the groundwork for subsequent process development.TRANSCRIPT
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the futures of business
10 Apr 2023 (c) Tom Graves / Tetradian 2011 1
Respect as an architectural issue- a case-study in business survival
Tom Graves, Tetradian ConsultingIRM-EAC London, June [email protected] / www.tetradian.com
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Scope of enterprise-architecture
(this, we’re often told, is the entire scope of enterprise-architecture)
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Scope of enterprise-architecture
(complete EA includes many other intersecting ‘architectures’ – security, process, brand, organisation etc)
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Enterprise-architecture beyond ITEA often starts with IT infrastructure, but...
•IT tech-architecture depends on applications
•Applications-architecture depends on data
•Data-architecture depends on business-info need
•Information-architecture depends on business
•Business-architecture depends on enterprise
•Enterprise-architecture defines the context
An enterprise-architecture must have whole-of-enterprise scope – it’s not just detail-level IT!
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the futures of business 10 Apr 2023 (c) Tom Graves / Tetradian 2010 5
A question of maturity
Step 1: Know your business(focus on business-purpose)
Step 2: Clean up the mess(horizontal assessment)
Step 3: Strategy and stuff(top-down assessment)
Step 4: Work with the real world(bottom-up assessment)
Step 5: Pull together(spiral-out assessment)
Maintainthe dialogue
Prepare and maintain foundations for architecture
(Initialpilot test)
Step 1: Know your business(focus on business-purpose)
Step 2: Clean up the mess(horizontal assessment)
Step 3: Strategy and stuff(top-down assessment)
Step 4: Work with the real world(bottom-up assessment)
Step 5: Pull together(spiral-out assessment)
Maintainthe dialogue
(Start EAdev’ment)
Prepare and maintain foundations for architecture
(Initialpilot test)
Step 1: Know your business(focus on business-purpose)
Step 2: Clean up the mess(horizontal assessment)
Step 3: Strategy and stuff(top-down assessment)
Step 4: Work with the real world(bottom-up assessment)
Step 5: Pull together(spiral-out assessment)
Maintainthe dialogue
(Start EAdev’ment)
Level 1:Ad-hoc
Prepare and maintain foundations for architecture
(Initialpilot test)
Step 1: Know your business(focus on business-purpose)
Step 2: Clean up the mess(horizontal assessment)
Step 3: Strategy and stuff(top-down assessment)
Step 4: Work with the real world(bottom-up assessment)
Step 5: Pull together(spiral-out assessment)
Maintainthe dialogue
(Start EAdev’ment)
Level 1:Ad-hoc
Level 2:Repeatable
Prepare and maintain foundations for architecture
(Initialpilot test)
Step 1: Know your business(focus on business-purpose)
Step 2: Clean up the mess(horizontal assessment)
Step 3: Strategy and stuff(top-down assessment)
Step 4: Work with the real world(bottom-up assessment)
Step 5: Pull together(spiral-out assessment)
Maintainthe dialogue
(Start EAdev’ment)
Level 1:Ad-hoc
Level 2:Repeatable
Level 3:Defined
Prepare and maintain foundations for architecture
(Initialpilot test)
Step 1: Know your business(focus on business-purpose)
Step 2: Clean up the mess(horizontal assessment)
Step 3: Strategy and stuff(top-down assessment)
Step 4: Work with the real world(bottom-up assessment)
Step 5: Pull together(spiral-out assessment)
Maintainthe dialogue
(Start EAdev’ment)
Level 1:Ad-hoc
Level 2:Repeatable
Level 3:Defined
Level 4:Managed
Prepare and maintain foundations for architecture
(Initialpilot test)
Step 1: Know your business(focus on business-purpose)
Step 2: Clean up the mess(horizontal assessment)
Step 3: Strategy and stuff(top-down assessment)
Step 4: Work with the real world(bottom-up assessment)
Step 5: Pull together(spiral-out assessment)
Maintainthe dialogue
(Start EAdev’ment)
Level 1:Ad-hoc
Level 2:Repeatable
Level 3:Defined
Level 4:Managed
Level 5:Optimised
Prepare and maintain foundations for architecture
(Initialpilot test)
(adapted from maturity-model in TOGAF 9, chapter 51)
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the futures of business 10 Apr 2023 (c) Tom Graves / Tetradian 2010 6
TOGAF scope in maturity-model
Step 1: Know your business(focus on business-purpose)
Step 2: Clean up the mess(horizontal assessment)
Step 3: Strategy and stuff(top-down assessment)
Step 4: Work with the real world(bottom-up assessment)
Step 5: Pull together(spiral-out assessment)
Maintainthe dialogue
Prepare and maintain foundations for architecture
(Initialpilot test)
Step 1: Know your business(focus on business-purpose)
Step 2: Clean up the mess(horizontal assessment)
Step 3: Strategy and stuff(top-down assessment)
Step 4: Work with the real world(bottom-up assessment)
Step 5: Pull together(spiral-out assessment)
Maintainthe dialogue
(Start EAdev’ment)
Prepare and maintain foundations for architecture
(Initialpilot test)
Step 1: Know your business(focus on business-purpose)
Step 2: Clean up the mess(horizontal assessment)
Step 3: Strategy and stuff(top-down assessment)
Step 4: Work with the real world(bottom-up assessment)
Step 5: Pull together(spiral-out assessment)
Maintainthe dialogue
(Start EAdev’ment)
Level 1:Ad-hoc
Prepare and maintain foundations for architecture
(Initialpilot test)
Step 1: Know your business(focus on business-purpose)
Step 2: Clean up the mess(horizontal assessment)
Step 3: Strategy and stuff(top-down assessment)
Step 4: Work with the real world(bottom-up assessment)
Step 5: Pull together(spiral-out assessment)
Maintainthe dialogue
(Start EAdev’ment)
Level 1:Ad-hoc
Level 2:Repeatable
Prepare and maintain foundations for architecture
(Initialpilot test)
Step 1: Know your business(focus on business-purpose)
Step 2: Clean up the mess(horizontal assessment)
Step 3: Strategy and stuff(top-down assessment)
Step 4: Work with the real world(bottom-up assessment)
Step 5: Pull together(spiral-out assessment)
Maintainthe dialogue
(Start EAdev’ment)
Level 1:Ad-hoc
Level 2:Repeatable
Level 3:Defined
Prepare and maintain foundations for architecture
(Initialpilot test)
Step 1: Know your business(focus on business-purpose)
Step 2: Clean up the mess(horizontal assessment)
Step 3: Strategy and stuff(top-down assessment)
Step 4: Work with the real world(bottom-up assessment)
Step 5: Pull together(spiral-out assessment)
Maintainthe dialogue
(Start EAdev’ment)
Level 1:Ad-hoc
Level 2:Repeatable
Level 3:Defined
Level 4:Managed
Prepare and maintain foundations for architecture
(Initialpilot test)
Step 1: Know your business(focus on business-purpose)
Step 2: Clean up the mess(horizontal assessment)
Step 3: Strategy and stuff(top-down assessment)
Step 4: Work with the real world(bottom-up assessment)
Step 5: Pull together(spiral-out assessment)
Maintainthe dialogue
(Start EAdev’ment)
Level 1:Ad-hoc
Level 2:Repeatable
Level 3:Defined
Level 4:Managed
Level 5:Optimised
Prepare and maintain foundations for architecture
(Initialpilot test)
Main emphasis of TOGAF,for IT-architecture only
TOGAF 8.1
TOGAF 9
‘Big-picture’ strategy
Pain-points + wicked-problems
But business most wants us to work on these...(...everything else is just ‘detail stuff’)
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The business problem“Loss of respect”
– fallen from most-respected bank in region
to least-respected bank
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Symptoms…• Deterioration in customer relations
• Deterioration in government relations
• Deterioration in community relations
• Severe loss of morale in all staff areas
• Difficulties in recruiting and retention
• Unresolved operational, technical and cultural problems from previous merger with other bank
• No real strategy to address any of this...
All of these having significant, identifiable impacts on bottom-line performance
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…and requests
Request is from Organizational Development unit:
• Identify the problem-areas
• Identify ‘anchors to unify the tribes’
• Create experience in use of whole-enterprise view and whole-system techniques
• Prepare executive-team for real strategy-work
Combined effort of business-transformation and enterprise-architecture
• (will include IT-architectures etc at a later date, when business-issues have been identified)
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Stage 1: Meeting with executive-team
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First meeting…
One-day offsite for 32-person executive team, but:
• Participants wander in at random, up to half an hour after scheduled start
• People answer their phones, texting, jump out of meeting to take calls– CEO is worst offender in this – probably >10 times...
• CIO sits off to one side, isolated from the team, using her laptop throughout most of the day
A simple question:• how does this reflect respect within org itself?
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Five Elements in all organisations
(adapted from classic Group Dynamics project-lifecycle)
Adjourning
Forming
Storming
Norming
PerformingPerformance
Purpose
People
Preparation
Process
far-future
‘people-time’
past NOW!
near-future
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Five Elements workshop
Provides a quick, experiential means to introduce systems-thinking to practical business-folk:
• Describe roles within each ‘element’• Describe the ‘other’ roles from each role
– “we’re right, everyone else is wrong”
• “All move round one” – suddenly feels ‘unfair’
• Different views, roles, time-perspectives– these arise from the work itself
• What happens if one ‘element’ dominates?
• What happens if no-one keeps the balance?
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Working with Five Elements
(Five Element workshop in progress, for a different organisation)
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Functional Business Model
Accept Orders
Contact Customer
Manage the Business
Deliver Orders
Support the Business
Process Orders
Consolidate Orders
Manage Production
Management
Manage Licensee Outbound Operations
Manage Materials
Receipt and Verification
Manage Facility
Pre-Production Processing
Manage Container & Label Strategies
Manage VehiclesManage Equipment and Equipment-Strategies
Manage Facility
Property
Manage Relationship
with Licensees
Manage Asset
Service Providers
Manage Transport Sub-Contracts for
Delivery
Manage NCR-Code Configurations
Define Processing Strategies
Define Performance Management
Manage Production Systems Strategies
Design and Develop Facility I nfrastructure
Manage Production-Planning Strategies
Manage Facility
I nformation
Manage Core Business
Manage Post-Production Operations
Setup for Contractor Delivery
Manage Equipment
Maintenance
Manage Production Operations
Accept from
Agency
Accept from
Contractor
Accept at Facility
Accept at Customer Location
Manage FinanceManage Human ResourcesManage Facility Administration
Manage Materials Strategies
Prepare Customer Transfer
Support Customer
Bulk Orders
Handle Customer
Complaints & I nquiries
Process Service
Requests
Fulfil Order
Prepare Fulfillment Transfer
Support Bulk Fulfillment
Orders
Handle Fulfillment Complaints & I nquiries
Process Fulfillment Requests
(typical Functional Business Model, for a different organisation)
Describe the structure of the work, how each part relates to other parts, and who is responsible
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How is this business structured?
(Functional Business Model process, with photos, for a different client)
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Music as metaphorPowerful experience of interdependence in org’n• Basic exercises – hit the beat, simple sequence
– need to listen to each other, and to instructions
• Complications – orchestrating multiple sequences– align with own team, yet also listen to others
• Complexity – interweaving patterns– respond as a collective to natural ‘unorder’
• Freeform ‘chaos’ – adapting in the moment– real-time responsibility for ‘feel’ of the whole
Aligns strongly with Latin culture, though can also be used elsewhere
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Music as metaphor
(music as metaphor for team-coordination – executive-team from another organisation)
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Stage 2: Set-piece with frontline staff
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Out in the firing-line…
(workshop-facilitator in theatre with 400 frontline staff)
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Getting issues out into the open…
(each group described their issues and challenges at work)
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What’s going on for the front line?A very broad range of unaddressed issues:• Loss of morale – e.g. “I’m embarrassed to tell
my friends that I work for the bank...”
• Clashing imperatives – e.g. issue credit-cards vs withdraw credit, confused risk-management
• Clashing performance-metrics between teams
• Cultural mismatch – individual vs collective
• Operational / IT-issues – e.g. multiple apps needed for single task, manual crosslinks needed
...all with real impacts on business effectiveness
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Stage 3: Back with the executive-team
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Back to the future...Another one-day offsite with the executive...• Report from the frontline – ‘bad news’ that
they could not afford to ignore• Organisation vs enterprise – create a better
understanding of their place in business world• The market-cycle – where respect and trust
come from, and why they’re crucial for business
• The structure of strategy – why their current ‘non-strategy’ could not create success – and what to do next to make it work
...and this time they did turn up on time!
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Organisation and enterprise
We create an architecture for an organisation,but about an enterprise:
•Enterprise: a social structure defined by vision, values, mutual commitments•Organisation: a legal structure defined by rules, roles, responsibilities
•The enterprise is – provides motivation, WHY•The organisation does – provides action, HOW
They’re fundamentally different – don’t mix them up!
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Organisation as ‘the enterprise’
From a business perspective, this is the effective scope of TOGAF’s ‘business architecture’
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Business-model as ‘the enterprise’
Typical business-model or supply-chain view(complete supply-chain should extend beyond this)
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Market as ‘the enterprise’
Overall market includes actors who do not yet have active transactions with us, or have other transactions
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The real scope of ‘the enterprise’
The overall enterprise has many actors who may have only ‘intangible’ transactions / interactions with us(yet can have major impacts on our business)
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The market-cycle
transactions depend on (reaffirmed) reputation and trust– loss of trust creates anti-clients!
boundary of ‘market’in conventional
business-models
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Strategy, tactics, operations
(overall cycle and relationships need to be in balance)
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The ‘quick-money’ failure-cycle
(common source of ‘unexpected’ failure – focus only on immediate profit,with classic “last year +10%” used as a substitute for strategy)
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operationsTransaction / exchange
:: completion of taskCompletions
Focus only on Production tactics
operations
Attention / conversation
Transaction / exchange
:: completion of task
:: completion for self (profit)
Completions
Completions and the market-cycle
Production-focus, market-focus, enterprise-focus?
Focus on Market and its transactions
strategy
tactics
operations
Shared-purpose (vision) defines enterprise context
Reputation / trustRespect / relations
Attention / conversation
Transaction / exchange
:: completion of task
Reaffirmed trust
:: completion for self (profit)
Completions
:: completion for all
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The structure of vision
• Vision is the overall anchor for everything– ‘vision’ in the ISO9000 sense – not ‘marketing puff’
• Vision-descriptor has distinct 3-part structure– focus [noun]: context or things of concern to everyone– action [verb]: what is to be done to or in the focus– qualifier [adjective]: why this is important to everyone
• Example: ‘ideas worth spreading’ (TED conferences)
– ‘ideas’ (focus)– ‘worth’ (qualifier)– ‘spreading’ (action)
Components may be in any order, but all must be present
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Putting themselves on the line…Visioning was a huge struggle...• Could not break free from self-centrism –
kept reverting to standard ‘marketing puff’• After three hours... – finally arrived a vision-
statement that was fully enterprise-inclusive– ‘creating better financial futures’
Another real challenge (but a happier one!)• Performing music for families and colleagues
– simple percussion, as in the previous sessions
...provided a first-hand reminder of what it’s like to be out there on the business front-line
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Business outcomes
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What happens next?Practical outcomes for Organisational
Development• Executive did create a true business-
strategy – for the first time ever, apparently...• Leveraging vision – as a guide and descriptor
for all enterprise relationships• Rethinking culture – creating shared-learning
between executive and front-line• Rethinking performance-metrics – a joint
effort between OrgDev, HR, BPM, IT and others
...and yes, some of this did link into the existing IT-centric ‘enterprise-architecture’
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Summary• The real key to enterprise-architecture is
enterprise culture
• Architecture is for an organisation, but is always about the whole enterprise
• Always start from a real business-problem– in this case, the loss of respect in the marketplace
• Keep the focus on one area at a time, but always remain aware of the whole
• A real enterprise-architecture begins and ends with people – not solely the enterprise-IT
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Many thanks!
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Further detail: books by Tom Graves• Doing Enterprise Architecture: process and practice in the
real enterprise
• Everyday Enterprise Architecture: sensemaking, strategy, structures and solutions
• Mapping the Enterprise: modelling the enterprise as services with the Enterprise Canvas
• Bridging the Silos: enterprise architecture for IT-architects
• The Service Oriented Enterprise: enterprise architecture and viable systems
• Real Enterprise Architecture: beyond IT to the whole enterprise
• SEMPER and SCORE: enhancing enterprise effectiveness
• Power and Response-ability: the human side of systems
(see tetradianbooks.com for details)
10 Apr 2023 (c) Tom Graves / Tetradian 2010 40