An optimal Target Operating Model (TOM) is the final outcome of all design efforts stemming from the Architecture of Business. Having previously discussed the benefits of an architected operating model to any organisation, this article addresses value delivery chains, a key element at the very heart of any TOM.
Building on agile ways of working to define change projects’ KPIs and embed transformation
The earlier post on 10 principles of agile project management spoke at length about bringing the spirit of the original Agile Manifesto into organising and running a Transformation & Change project and/or Target Operating Model design process. One of the most pertinent questions resulting from that post is “What KPIs can be put in place to track transformation progress and how can they be used to embed change further inside the organisation?”
Building in just 2 things will convert a seemingly ‘red tape’ corporate document into a major ally in change management efforts
With September upon us, it is the time of the year when many companies whose financial year ended in August are beginning to cascade their Delegations of Authority. While presentation of these documents would vary, their content in most instances consists of fairly dry tables capturing mostly financial limits of executive authority on how much they can spend, invest or commit money-wise.
And this is where these delegations of authority are missing their golden opportunity to facilitate change in the organisation, or embed a transformational effort further.
Continuing the discussion on the 5 key contexts of Strategic Business Architecture, this article looks at the importance of taking into account consumer dynamics in responsive Target Operating Model design. Understanding of final consumers will help create the target model (including one for a global enterprise) that has necessary responsiveness and relevance, while also ensuring that enough flexibility remains to encompass any local cultural variation.
Real life experience suggests that as many as up to 50% of initiatives and projects, including those conceived in good faith and with best possible intentions, are cancelled along the way or do not meet business expectations once finished. In addition to being a huge financial burden on any business and strain on its scarce resources, these aborted or miscarried projects may become a source of teams’ disengagement and low morale once the office rumour mill gets going. By reviewing the enterprise business model beforehand, Strategic Business Architecture helps to dramatically reduce number of these dead starters as it connects the Target Operating Model with overall strategic objectives of the business.
In my earlier post, I wrote that Strategic Business Architecture takes into account a number of key environmental contexts (in addition to the enterprise business model and its organisational background) to build a robust Target Operating Model that captures pragmatic choices and solutions to a successful transformation of the enterprise.
I see five most important contexts that every Strategic Business Architect must consider when working on a Target Operating Model.
There exist several definitions of Business Architecture as a discipline. One is that Business Architecture is ‘concerned with developing and maintaining business capabilities of the enterprise in line with the corporate strategy as well as contributing to the business strategy and plans’. Another, promoted by the Business Architecture Guild, defines Business Architecture as ‘a blueprint of the enterprise that provides a common understanding of the organization and is used to align strategic objectives and tactical demands’.