As mentioned in a previous post, I announced that our Enterprise Architecture team has made some very interesting investments in the area of Strategy Management and Portfolio Management in the last year via an Enterprise Architecture offering called “Strategy and Planning Service”. It’s very interesting and we’ve gathered enough experience through our mistakes and successes that I think I’m ready to share more on it to the broader community to help others. Keep in mind that we are relatively new to this area and learning more every day so I might change my opinion on some things. Here’s what I currently think.
As a bit of background, our investment in Strategy Management and Portfolio Planning is a result of our team’s need to understand Microsoft’s business strategy and connect it to changes in our enterprise architecture to inform project portfolio managers to fund the right projects and include the right scope in the funded projects. The result is an accelerated change in our architecture streamlined to achieve our corporate strategy.
We’ve decided to provide an offering from Enterprise Architecture team that essentially is a template to implement an Office of Strategy Management concept at particular areas in our enterprise. The template heavily leverages Kaplan and Norton’s Office of Strategy Management concept but is enhanced to include bits to support Strategy Formulation and Portfolio Optimization to bring an end-to-end offering for Strategy Management and Portfolio Management - one without the other is a waste of time in my opinion. We also embedded into the offering concepts to help derive platform strategy and other important Enterprise Architecture concerns like Strategy Formulation, Business Model, Operating Model, Core and Context Processes, etc. Anyway, I wanted to share with you some important details we’ve learned so far:
One really important note is that we heavily rely on our information model to deliver the above points. Getting this right is the secret sauce, the science if you will, to delivering on the above value propositions.
I’d like to tell you more about the Strategy Management and Portfolio Planning architecture work we are doing such as our Organizational Alignment, Team Model, Process Model, EA reference models, multitude of business concepts, etc but I’m not entirely confident we’ve cracked the nut on them just yet. Sharing what we have today may cause more confusion than value so I’ll wait until they are a bit more refined before sharing.
good article. thanks
I like this direction a lot. I've experienced many benefits combining EA with Balanced Scorecard, especially in traceability. I've shared some findings two years ago, published by ISACA - http://bit.ly/c9nfne (my framework evolved since then but the basic tenets are the same) Apart from traceability, there is a good way to calculated KPI's from the structures of the EA repository.
I believe the next step is to go beyond bridging the Business-IT gap: www.strategicstructures.com
I'm looking forward to see the results of your work when you find it refined enough to share. (Well, I'd prefer it in an earlier stage, but... :) )
Thank you for your comments. I've ready your ISACA article and, in fact, it helped inspire me to continue my learning of the BSC and it's usefulness to help aligne IT to the business a year or so ago. I think you are a thought leader in this space and I appreciate your sharing your ideas with the rest of us. :)
Regarding the strategic structures article, I haven't read that one before but just did due to your reference. I think the topic is very interesting but I'm not sure it's as accurate and precise as it needs to be in order to be ready for implementation. It could use a bit of the science (like you provided in your ISACA article for example) as well as a dose of adopting business strategy management for large enterprises taken from business management disciplines so that it can be ready to help IT change at the rate it needs to in order to mature from 'relating it to the business' to a stronger alignment of IT to the business specifically where much of what is IT of today is actually embedded into the business of tomorrow. Anyway, I commented on the article to explain more of what I'm talking about. Perhaps, we can all share our thoughts on that topic some more.