business transformation

Business Agility and Digital Transformation

What is Business Agility?

  • Business is “the activity of making, buying, or selling goods or providing services in exchange for…”
    • Corporations –> Money
    • Non-profits –> Social Causes
    • Education –> Knowledge
    • Government –> Citizen Services
    • Military –> National Defense
  • Agility is the “ability to move quickly and easily.”
  • Business Agility is the ability to move quickly and easily to:
    • Make products and services
    • Buy products and services
    • Sell products and services
    • Provide products and services

to employees and customers along with the ability to effectively and efficiently collaborate with partners and vendors.

What is Digital Transformation?

  • Digital is “electronic and especially computerized technology.”
  • Transformation is “an act, process, or instance of transforming or being transformed.”
  • Digital Transformation is the process of transforming:
    • How things are made
    • How things are bought
    • How things are sold
    • How products and services are provided
  • through electronic and especially computerized technology.

What is the Relationships between Business Agility and Digital Transformation?

  • All organizations are digital in one way or another. Some are more digital and some are less but fundamentally they utilize a mix of the following to achieve their desired outcomes and capabilities:
    • People who use technologies
    • Processes enabled by technologies
    • Technologies to capture and synthesize data
  • In order for your organization to survive and thrive in today’s hyper competitive business environments, your organization should have:
    • People who can quickly make decisions on how products and services are created, bought, sold and provided
    • Processes that reduce time between data capture to informed decision-making
    • Technologies that capture, manage and disseminate data quickly to decision-makers

Note that without Digital Transformation, achieving Business Agility is a hallucination!

Understand your Present to Create your Future

  • Do an honest and comprehensive analysis of how business is done currently
  • Holistically understand how current people, processes, technologies, products and services (business and technical) are affected by Strategies, Politics, Innovation, Culture and Execution (SPICE) factors
  • Determine if current capture of KPIs, SLAs and other metrics (e.g., employee incentives) are just for collection or are these measurements truly bringing change within the organization

SPICE Factors

While it is great to imagine and document your future, but any shortcuts you take in the assessing your present will come back to haunt you in the future!

Analysis

Today (Where you are)

  • Create a list of roles and responsibilities for everyone in your organization, partners and vendors
  • Map hybrid business processes that show people-technology interactions
  • Determine what data is being captured, managed and disseminated during people-technology interactions
  • Determine the relevancy of the data for informed decision-making
  • Assign a cost to each business process
  • Assess how quickly and easily your organization can respond to employee and customer needs
  • Determine the various obstacles that result in poor execution of strategy
  • Understand organizational and individual biases

Tomorrow (Where you want to be)

  • Eliminate overlapping and redundant roles and responsibilities that don’t provide value to your organization
  • Create governance, functions, teams and business processes that optimize use of data across people and technologies
  • Create metrics that result in effective decision-making and lessons learned to improve those metrics
  • Communicate effectively to eliminate any preconceived notions of your transformation journeys
  • Create test labs for all employees to test business models, enhance current capabilities and new capabilities
  • Create a new culture through norms, standards, communications and incentives and know that not everyone is motivated by the same things
  • Continuously self-evaluate your maturity level and make use of lessons learned

Asking Questions

  • Strategy
    • Who is affected by transformation?
    • What siloed/outdated/imaginary/undocumented processes are affecting strategic execution?
    • What technology and non-technology tools are used to make strategic decision?
  • Politics
    • Who is distorting transformation communications?
    • What processes and data are leading to transformation easily being vetoed?
    • What technologies decisions are empowering transformation?
  • Innovation
    • Who is assessing frontline employees, external customers, similar industries and different industries to bring innovation to the organization?
    • What processes are in place to raise people’s ability to contribute?
    • Are there technologies to test out new capabilities and business models?
  • Culture
    • Who is motivated to participate in transformation journeys?
    • What kind of processes are in place to encourage culture change?
    • What kinds of technologies are used to assess culture and changes?
  • Execution
    • Who is setting the expectation at all levels for the transformation journeys?
    • What processes are in place that obstruct strategic execution?
    • What technologies are in place that obstruct strategic execution?

Transitions

  • Organizational Structures
    • Optimize organizational structures based on a mix of functions, products, services and geography
    • Create formal and informal strategic linking through processes and coordination
  • Governance and Processes
    • Create governance structures and processes to evaluate how data can be captured, managed, modeled, assembled and deployed
  • People
    • Find people from top, middle and frontlines to champion transformation journeys
    • Show how transformation actually makes people’s lives easier
  • Program Mission
    • Views transformation journeys as an investment portfolio of multiple projects and operations
    • Connects business and technical operations to business capabilities and outcomes
    • Measures relevant metrics and abandon irrelevant metrics that cannot be connected to business value
    • Creates alignment of IT with non-IT functions (e.g., Accounting, Administration, Business Development, Customer Service, Finance, HR, Management, Manufacturing, Operations, Productions, R&D, Sales etc.)
    • Creates effective feedback loops across the organization

 

5 Questions to Ask About Your Organization’s Politics

Politics in an organization is about influencing others by using official and unofficial power. Official power comes from management titles while unofficial power comes from peers, juniors and even outsiders. Everyday in organizations official and unofficial power is used to: (1) frame problems, (2) influence changes and (3) make/guide decisions. This power can affect organizational structures, business processes, technologies and even innovation. Thus, it becomes imperative that organizations understand this power and how this power can affect organizational cultures. However, despite the strong relationship between politics and culture, most organizations are unaware, unwilling and/or unprepared to address it. The three main reasons politics is not directly addressed is because of:

  1. The inaccurate thinking that politics is always negative
  2. The fallacy that politics only happens at an individual’s personal level
  3. The inability to understand how politics can destroy/enhance capabilities

An organization’s politics is the total complex of relationships between people inside and outside of organizational boundaries. What this means is that people play politics even if they are unaware of it. While these people might have the best of intentions but their experiences/biases may or may not be best for the entire organization. By not keeping this in mind, organizations might not be able to self-assess if the IT vs. Business tension is a myth or reality, if the most optimized and continuously improving processes are present, if the correct technology is being selected for collective efficiency, if the right people are asking the right questions and if questioning the status quo is just a checkmark. In order to understand politics, the following questions need to be asked:

Strategic Perspectives on Politics:

 

Currently

In the Future

1. Who is incentivized at the executive level to understand politics? Who should be incentivized at the executive level to understand politics?
2. What governance structures are in place to address holistic vs. specific unit/function/team strategic needs? What governance structures should be in place to address holistic vs. specific unit/function/team strategic needs?
3. Where is technology being affected by politics? Where should technology affect politics?
4. When and how often political motivations are revealed? When and how often political motivations are revealed?
5. Why political understanding is critical to achieving strategic objectives? Why should political understanding be critical to achieving strategic objectives?

Tactical Perspectives on Politics:

 

Currently

In the Future

1. Who is incentivized at the middle management level to understand politics? Who should be incentivized at the middle management level to understand politics?
2. What business units, functional areas and teams are included to bring forth political implications? What business units, functional areas and teams should be made aware of political implications?
3. Where technology hinders understanding politics? Where technology might hinder in understanding politics?
4. When is the start and end of political motivations? When should be the start and end of political motivations?
5. Why political understanding is critical to achieving tactical objectives? Why political understanding should be critical to achieving tactical objectives?

Operational Perspectives on Politics:

 

Currently

In the Future

1. Who sees politics as an obstacle? Who might see political understanding as an obstacle?
2. What business processes provide views on the organization’s power plays? What business processes should provide views on the organization’s political boundaries?
3. Where is technology part of your understanding the organization’s politics? Where should technology be a part of understanding the organization’s politics?
4. When were you informed about the political objectives? When should you have been informed about political objectives?
5. Why political understanding is critical to achieving your daily tasks? Why political understanding should be critical to achieving your daily tasks?

Politics and culture are two sides of the same coin and each lurking in the shadows or showing in broad daylight to change the direction of the organization everyday. To address this, (1) be transparent, (2) create an atmosphere of trust, (3) be genuinely helpful across business units, functional areas and teams.

Politics-Culture

5 Questions to Ask About Your Business Transformation

Business transformation is the process of transforming (1) how things are made, (2) how things are bought, (3) how things are sold and/or (4) how services are provided. It has been pursued by organizations ever since the first organization came into being and would continue to be pursued in the foreseeable future. It is the way for organizations to know their current state (i.e., know where they are), their future state (i.e., know where they want to be) and their transition (i.e., what steps to take) by considering the people, business processes, services, products and technologies that can help them achieve their objectives. To be clear, business transformation is not merely a “business” only pursuit but rather it is an organizational pursuit that encompasses Information Technology (IT) and digital transformation journeys as well.

While the promise of business transformation is great, it is still something that organizations consistently struggle with. There are multiple factors that can lead to failed business transformation efforts but the number one reason seems to go back to a typical conversation within organizations. In the 21st century, technology for organizations is not just an enabler but paramount to their success. But how many times have you said or heard someone say, “business” wants this and “business” wants that and that “business” does not understand that systems cannot be developed overnight. Ingrained in this sort of thinking is the idea that somehow IT is different from “business”. Somehow there is this “us” vs. “them” mentality.

It is time to change this “us” vs. “them” culture. It is time to think about IT as not something that is outside of “business” but is part of “business”. To have this conversation there has to be mutual understanding that neither should downplay the importance of the other. This requires an understanding that all technical and non-technical aspects of the organization are there to support the end objectives of business transformation and that collaboration works much better than just mere animosity.

When organizations’ bread and butter business models are shattered in light of the new digital and sharing economy, “business” and technical folks have no one else to blame but themselves. As such it becomes imperative that organizations don’t get lost in complacency and infighting. These organizations should view business transformation as a holistic endeavor by paying enough attention to people, business processes, products, services and technologies that directly and indirectly affect them otherwise business transformation is just a pipe dream. In order for organizations to figure out their own business transformation journey, they need to ask the following questions from internal and external perspectives:

 

Currently

In the Future

1. Who is helped by business transformation? Who should be helped with business transformation? (E.g., management, employees, customers, shareholder etc.)
2. What does business transformation teach us? What should business transformation teach us? (E.g., better internal communications, governance, standardization, discipline, branding etc.)
3. Where does business transformation start? Where should business transformation start? (E.g., IT, marketing, operations, customers, vendors, partners etc.)
4. When is business transformation considered? When should business transformation be considered? (E.g., customer-employee conversations, competitors’ disruption/re-imagination of business models, new innovations, new methods etc.)
5. Why is business transformation is being done? Why should business transformation be done? (E.g., optimization, cohesiveness, long-term value, positive societal ripples etc.)

When you ask the above questions, keep in mind that without effective and unbiased feedback loops most business transformation journeys would be just nearsighted one-time initiatives and not something that would make organizations self-improving entities. Smart organizations have realized this and are taking advantage of not only technological changes but also setting themselves up for the future before they themselves get disrupted.

Business Transformation 5Ws

What’s Wrong With My Enterprise Architecture? – a response

Recently, a fellow Enterprise Architect reached out and asked my opinion on his article.  Below is my response:

• Enterprise Architecture has many definitions. Here is one that I tried to create in 160 characters. “EA bridges business and IT via enterprise integration/standardization resulting in people becoming more efficient and effective in achieving their objectives.”

• While there are many reasons behind failures of EA within organizations but as I see it, they essentially boil down to only one thing (i.e., lack of communication in understanding the true value of what EA brings to the organization). It takes effort from everyone (EA, Business and IT) in the organization to use EA for business transformation. Before anything else organizations need to decide:

  • Why they need/want EA? Here is a good video that alludes to this.
  • What quantitative and qualitative values does EA bring to the table?

• Unfortunately EA has turned into merely an information collection activity and moved away from why this information is being collected in the first place. What is the strategic intent? In my observation, most EA is not strategic (e.g., Federal Government’s use of EA)

• My biggest issue with EA these days is where it resides within the organization. These days EA reports to or is a part of IT and suffers the same fate as IT (e.g., reduced budgets, no executive representation etc.). Ideally, EA should report into Chief Strategy Officer (CSO) or Chief Executive Officer (CEO) but not to the Chief Information Officer (CIO) or Chief Technology Officer (CTO).

• EA is a conceptual mindset. In my view, it is not about frameworks, modeling or programming languages. EA is about business transformation that may or may not require IT to accomplish transformation. Blasphemy! I know ☺

• True EA is difficult to do and it takes a long-term commitment from the organization to pursue it.

In today’s business world quickness and agility is often used as a pretext/excuse for a lot of things mostly because the people using these terms just want additional lines added to their resume before they move on. To put in an analogy, what kind of car would you like to drive? One that goes really fast but has bare minimum safety or one that has optimum safety but you might get it a month late? Short answer is, it depends. Mainly it depends on what is the end goal the organization or person is trying to achieve. Same is true for EA. Without measurable end-goals EA just becomes a complacent black hole.