Enterprise Transformation Why Should I Care This presentation provides the fundamental information required to enable senior executives and stakeholders to decide whether to invest any time or money in ID: 708693
Download Presentation The PPT/PDF document "A Pragmatic Briefing for Senior Executiv..." is the property of its rightful owner. Permission is granted to download and print the materials on this web site for personal, non-commercial use only, and to display it on your personal computer provided you do not modify the materials and that you retain all copyright notices contained in the materials. By downloading content from our website, you accept the terms of this agreement.
Slide1
A Pragmatic Briefing for Senior Executives and Stakeholders
Enterprise Transformation
Why Should I Care?Slide2
This presentation provides the fundamental information required to enable senior executives and stakeholders,
to decide whether to invest any time or money in
increasing the maturity of theirEnterprise Transformation Capability.Slide3
This presentation runs for a total of 20 minutes and is organised in stepsSlide4
A decision point is reached after 1 minute where the viewer can decide to continue or notSlide5
Another decision point is reached after 3 minutes and then 4 minutes.Slide6
A final decision point is reached at the end of the presentation.Slide7
Lets Begin with a Premise…Slide8
Why Use POET2Basic PremiseSlide9
Decision point…Slide10
If you do not agree with this basic premise,
we suggest that you
stop the presentation at this point.If you do agree with this basic premise,we suggest that youcontinue with this presentation…Slide11
DefinitionsSlide12
OverviewPhases - Strategising1Slide13
OverviewPhases - Roadmapping1Slide14
OverviewPhases - Project Execution1Slide15
OverviewPhases - Governance & Lobbying1Slide16
Problems & OpportunitiesSlide17
In the next 3 slides we will give examples of problems and opportunities related to
Transformationthat may or may not apply to your Enterprise.You can
augment these with the problems or opportunities that are specific to your Enterprise.Slide18
Motivation - MethodsProblems/Opportunities - PhasesSlide19
Motivation - ArtefactsProblems/OpportunitiesSlide20
Motivation - MethodsProblems/Opportunities – Governance & LobbyingSlide21
Some QuestionsWithin your Enterprise…
Are you happy that the way the Phases of Transformation work together, is sufficiently effective, efficient, agile and responsive enough to cope with the demands of the business?Are you happy that the
Artefacts used for Transformation are sufficiently effective, efficient, agile and responsive enough to cope with the demands of the business?Are you happy that the Governance & Lobbying used to keep the phases of Transformation effectively and efficiency aligned is sufficiently effective, efficient, agile and responsive enough to cope with the demands of the business?Slide22
Decision point…Slide23
If you answered Yes to all the previous questions then your Enterprise is already mature enough in HOW it effects
Transformation,so we suggest that youstop the presentation at this point.If you answered No
to one or more questions then your Enterprise can benefit from becoming more mature in HOW it effects Transformation,so we suggest that youcontinue with this presentation…Slide24
What is the
Fundamental Problem?Slide25
The Fundamental ProblemStructural Complexity
Enterprises are now more complex than ever – and getting more so.Largely but not solely due to ITTransformational VolatilityEnterprises are now more volatile than ever – and getting more so.Due to the context they operate within. e.g
Markets, Regulators, Investors, Competitors, Suppliers, Customers, The Media, Legislation, Technology…Slide26
The Fundamental Problem
This inexorable increase of complexity and volatility,without an adequate means of dealing with it,creates a negative feedback loop
that only increases complexity and volatility!This causes how we effect transformation to become more and more ineffective and inefficient,reduces how responsive an Enterprises Transformation efforts are to changing business priorities,and causes the fruits of those efforts to be less effective, less efficient, less agile and less durable than they would otherwise be.Slide27
Decision point…Slide28
If you believe that the way your Enterprisedeals
with its Structural Complexity and Transformational Volatility is appropriate,we suggest that youstop the presentation at this point.
If you do not,we suggest that youcontinue with this presentation…Slide29
What is the
Fundamental Solution?Slide30
The Fundamental Solution
We need something to stop this negative downward spiral of increasing Complexity and Volatility.What is required is a change in the way Enterprises approach and execute Transformation.
"We can't solve problems by using the same kind of thinking we used when we created them." - Albert Einstein Slide31
The Fundamental Solution
That change is,The Architecture Paradigm™, whose purpose is to allow people to deal with the Structural Complexity and Transformational Volatility of the Enterprise.
Enterprise Debt™, whose purpose is to allow people to deal with the Volatility of Transformation.Slide32
The Architecture Paradigm™Slide33
The Architecture Paradigm™
2Justification - ApplicabilitySlide34
The Architecture Paradigm™
2Justification - Applicability
Justification for the investment required to make the changes necessary to utilise The Architecture Paradigm™ cannot be based on numbers or normal simple cost/benefit justification. Any attempt to do so will end in disaster.Slide35
The Architecture Paradigm™
2Justification - Applicability
Justification MUST be based on understanding when it is applicable and when it is not.Slide36
The Architecture Paradigm™
2Justification - Applicability
Just as there are times when use of The Architecture Paradigm™ is critically important, there are also times when it is of no use whatsoever. The trick is to understand where you are on that continuum and more importantly where you are likely to be in the short, medium and long term.Slide37
The Architecture Paradigm™
2Justification - Applicability
How applicable and beneficial it is to use The Architecture Paradigm™ is a function of the Structural Complexity and Transformational Volatility of the Enterprise which come together to form Transformational Complexity.Slide38
The Architecture Paradigm™
2Justification - Applicability
If Structural Complexity is very low, then Transformational Volatility can rise to very high levels before use of The Architecture Paradigm™ becomes advantageous. Slide39
The Architecture Paradigm™
2Justification - Applicability
If Transformational Volatility is very low, then Structural Complexity can rise to very high levels before use of The Architecture Paradigm™ become advantageous.Slide40
The Architecture Paradigm™
2Justification - Applicability
Therefore justification for utilising The Architecture Paradigm™ rises as a function of Transformational Complexity.Slide41
The Architecture Paradigm™
2Justification - Applicability
If Transformational Complexity is low then use of The Architecture Paradigm™ is of little use but as Transformational Complexity rises, use of The Architecture Paradigm™ becomes mandatory.Slide42
The Architecture Paradigm™
2Justification - ApplicabilitySlide43
The Architecture Paradigm™2
Justification – Cost and AbilitySlide44
The Architecture Paradigm™2
Justification – Cost and Ability
Here we see how the Cost of Transforming the Enterprise and the Ability to Transform it changes as Transformational Complexity increases.Slide45
The Architecture Paradigm™2
Justification – Cost and Ability
The dotted lines indicate the result if we DO NOT USE The Architecture Paradigm™Slide46
The Architecture Paradigm™2
Justification – Cost and Ability
The Cost of Transformation (the red dotted line) starts very low but rises exponentially as Transformational Complexity rises. Slide47
The Architecture Paradigm™2
Justification – Cost and Ability
Ultimately it rises to a point where the cost of Transformation becomes prohibitive.Slide48
The Architecture Paradigm™2
Justification – Cost and Ability
The Ability to Transform (the green dotted line) starts very high but falls exponentially as Transformational Complexity rises. Slide49
The Architecture Paradigm™2
Justification – Cost and Ability
Ultimately it falls to a point where the Ability to Transformation becomes impossible.Slide50
The Architecture Paradigm™2
Justification – Cost and Ability
The solid lines indicate the result if we DO USE The Architecture Paradigm™Slide51
The Architecture Paradigm™2
Justification – Cost and Ability
The Cost of Transformation (the red solid line) starts very low, and while it does rise as Transformational Complexity rises, this rise tends to be more linear and manageable.Slide52
The Architecture Paradigm™2
Justification – Cost and Ability
The Ability to Effect Transformation (the green solid line) also starts very high, and while it does fall as Transformational Complexity rises, this fall tends to be more linear and manageable.Slide53
The Architecture Paradigm™2
Justification – Cost and Ability
Deciding to adopt The Architecture Paradigm™ (or rather increase their maturity in their use of it) in relation to Enterprise Transformation, requires that an Enterprise make adjustments to the Methods, Artefacts, Culture and Environment used for Transformation.Slide54
The Architecture Paradigm™2
Justification – Cost and AbilitySlide55
The Architecture Paradigm™
2Justification - InvestmentSlide56
The Architecture Paradigm™
2Justification - Investment
These adjustments to the Methods, Artefacts, Culture and Environment used for Transformation take an investment of time, money and most importantly, will. Slide57
The Architecture Paradigm™
2Justification - Investment
How much time, money and will is required, is a function of the current Transformational Complexity that exists.Slide58
The Architecture Paradigm™
2Justification - Investment
As the need to make the adjustments increases, the will to make them decreases.Slide59
The Architecture Paradigm™
2Justification - Investment
If left too late, there comes a time when the amount of time and money that is required is just not available regardless of how much will that exists and the Enterprise will cease to be able to transform at all.Slide60
The Architecture Paradigm™
2Justification - Investment
When you are drowning,it’s too late to learn to how swim.Slide61
The Architecture Paradigm™
2Justification - Investment
Justification is also very difficult because the realisation of the benefits only materialise after subsequent projects (which Transform Operations), execute within that improved Transformation environment.Slide62
The Architecture Paradigm™
2Justification - InvestmentSlide63
The Architecture Paradigm™
2Justification - ProcrastinationSlide64
The Architecture Paradigm™
2Justification - Procrastination
Peoples expectations of short term value are too high and their expectations of long term value are too low.Slide65
The Architecture Paradigm™
2Justification - Procrastination
In reality, short term value is much less than expected but long term value is much higher than expected.Slide66
The Architecture Paradigm™
2Justification - Procrastination
There is a time lapse between making the investment in utilising The Architecture Paradigm™ and reaping it’s benefits.Slide67
The Architecture Paradigm™
2Justification - Procrastination
Justification for The Architecture Paradigm™ cannot be based on the benefit of the next project or even the next 2, 3 or 4 projects.Slide68
The Architecture Paradigm™
2Justification - Procrastination
In fact, the next project (and probably the 2nd and 3rd projects also) may well run slower and cost more money. This is the Chasm of Procrastination.Slide69
The Architecture Paradigm™
2Justification - ProcrastinationSlide70
What Does The Architecture Paradigm™ Really Mean?We do not mean adding a new set of people…We mean adjusting the way people do their jobs…
Using Models, Metamodels & ModellingUnderstanding the Relationships between thingsUnderstanding the context of thingsUsing Abstraction/ElaborationOmission/InclusionComposition/DecompositionGeneralisation/SpecialisationIdealisation/RealisationProviding Clarity – in terms of Communication Semantics &
LanguageSlide71
Enterprise Debt™Slide72
Governance & Lobbying
Enterprise Debt™ - Overview5
In the perfect world, the Assigned Budget (i.e. what we are given) would always equal the Required Budget (i.e. what we need). But that never happens.Slide73
Governance & LobbyingEnterprise Debt™ - Overview5
In the real world, the Assigned Budget very rarely equals the Required Budget. There may very well be valid business or logistical reasons for this, but a lot of the time this restriction is pretty arbitrary.Slide74
Governance & LobbyingEnterprise Debt™ - Overview5
For most Enterprises that’s where it stops. People have to muddle through somehow, put their nose to the grindstone, forge ahead and think positive thoughts. Perhaps some lip service is paid to this gap - some entry in a risk register that is never used for anything - but that’s about it. Slide75
Governance & LobbyingEnterprise Debt™ - Overview5
There will be implications, but those implications are not known and will only be discovered later when nothing can be done about them and those that should have done something about them have moved on to far more important things.So, let us be clear.Not providing what is asked for is not the problem.Ignoring the implications is.Slide76
Governance & Lobbying
Enterprise Debt™ - Overview5
In the Pragmatic world, things start off the same as in the real world i.e. the Assigned Budget very rarely equals the Required Budget. However, in the pragmatic world we accept this inconvenient truth and do something about it. We recognise that this creates Transformation Debt™.Slide77
Governance & Lobbying
Enterprise Debt™ - Overview5
This Transformation Debt, is what it would cost, to bring the work being done up to the same standard as would have been produced if the Assigned Budget had been the same as the Required Budget. Notice that this is bigger than the difference between the Required Budget, and the Assigned BudgetSlide78
Governance & Lobbying
Enterprise Debt™ - Overview5
Enterprise Debt™ is a measure of the money, people, and time that would be required to pay off the debt. Slide79
Governance & Lobbying
Enterprise Debt™ - Overview5
Enterprise Debt™, like financial debt, has to be serviced in the form of interest payments, for example increased support costs. Like interest payments on a loan, this is a recurring cost and will continue for as long as the Enterprise Debt™ it is servicing exists.Slide80
Governance & Lobbying
Enterprise Debt™ - Overview5
In addition, if the thing that was transformed now needs to be transformed again, there will also be an increased cost to effect that change. Slide81
Governance & Lobbying
Enterprise Debt™ - Overview5
Recognising and managing Enterprise Debt™ provides a simple and extremely effective control mechanism for management to get back in control of their Transformation initiatives and for those working in them to produce quality work (and to be able to sleep at night!)Slide82
Governance & Lobbying
Enterprise Debt™ - Overview5
Enterprise Debt™ is not an exercise in making sure that the Assigned Budget always equals the Required Budget.Slide83
Governance & Lobbying
Enterprise Debt™ - Overview5
Enterprise Debt™ makes sure that when the Assigned Budget does not equal the Required Budget (most of the time) that the implications are exposed so that management can make informed business decisions in the light of that information.Slide84
Enterprise Debt™
4Investment Comparison
This diagram illustrates the Transformation investment/cost profile of an Enterprise that does not expose and manage Enterprise Debt™ (shown in red) and is typical of 99.9% of all Enterprises.Slide85
Enterprise Debt™
4Investment Comparison
The level of investment rises, but very slowly, while costs are kept low. During this time hidden Enterprise Debt™ is slowly building up…Slide86
Enterprise Debt™
4Investment Comparison
When this hidden Enterprise Debt™ reaches a critical point(i.e. when the pile of dirt under the carpet has become too big to ignore)a very large and abrupt investment is required to deal with it.Slide87
Enterprise Debt™
4Investment Comparison
Often referred to as “getting the car out of the ditch”, it’s focus is usually very short term and only concerned with dealing with the major issue that cannot be ignored any longer.Slide88
Enterprise Debt™
4Investment Comparison
Having spent a large amount of money over a very short timeframe the focus then tends to be, once again, to reduce costs and expenditure and therefore we return to the low level of investment we saw before and the whole process repeats itself.Slide89
Enterprise Debt™
4Investment Comparison
This graph is characterised by: -Low levels of investment while hidden Enterprise Debt™ builds upFollowed by large, unplanned and abrupt investment when things get too bad.Slide90
Enterprise Debt™
4Investment Comparison
This causes Un-predictability, which leads to Un-stability, which means management is not in Control.Slide91
Enterprise Debt™
4Investment Comparison
These large, unplanned and abrupt rises in investment, can often occur at the same time that an incumbent CIO is replaced by another!Slide92
Enterprise Debt™
4Investment Comparison
This diagram illustrates the Transformation investment/cost profile of an organisation that DOES expose and manage Enterprise Debt™ (shown in green).Slide93
Enterprise Debt™
4Investment Comparison
The level of investment rises more steeply than before as management decisions release resources to keep Enterprise Debt™ under control.Slide94
Enterprise Debt™
4Investment Comparison
Enterprise Debt™ does build up but this debt is exposed and managed and does not get as large as before. Slide95
Enterprise Debt™
4Investment Comparison
Increased investment to reduce it can be planned ahead when appropriate, so that when then debt reaches a critical point we can execute the investment in a controlled way.Slide96
Enterprise Debt™
4Investment Comparison
In addition, while this investment solves any short term problems that may be evident it is also aligned to longer term goals.Slide97
Enterprise Debt™
4Investment Comparison
After the investment, we again return to a more moderate level of investment and the whole process repeats its self.Slide98
Enterprise Debt™
4Investment Comparison
This graph is characterised by: -An Increased level of investment while Enterprise Debt™ is exposed and managedFollowed by moderate investment when plannedSlide99
Enterprise Debt™
4Investment Comparison
This provides Predictability, which leads to Stability, which means management is in ControlSlide100
Enterprise Debt™
4Investment Comparison
If you are doing this properly, no one will notice!Slide101
Enterprise Debt™
4Investment Comparison
Which path are you on?Slide102
How do we become more mature?Slide103
Increasing our Transformational Maturity
Increasing ones Maturity in something is not a switch, it is a continuumIncreasing ones Maturity in something means, to an appropriate level for that particular Enterprise at that point in timeTo increase ones level of Maturity in anything requires a framework – A collection of Methods, Artefacts, Cultural and Environmental things organised around a Maturity Model to allow for easy and appropriate adoptionSlide104
What is a Framework…Slide105
Primitives1FrameworksSlide106
Primitives1Frameworks
All Frameworks exist to improve the way something is done. (i.e. to increase the effectiveness and efficiency and to reduce the risk of failure) They are expressions of “Best Practice
”.Slide107
Primitives1Frameworks
To do that there are three fundamental phases:
-Slide108
Primitives1Frameworks
Evaluate –
Measure how mature we are and if we should investigate increasing our maturity.Slide109
Primitives1Frameworks
2. Analyse –
Determine how to change, and to secure the mandate and budget required to do so.Slide110
Primitives1Frameworks
3. Modify –
Make the changes identified to increase our maturity.Slide111
Primitives1Frameworks
And
these three phases are supported by a Maturity Model.Slide112
Primitives1FrameworksSlide113
Primitives1Frameworks
There
is a time lapse between making the investment to increase maturity and reaping it’s benefits.Slide114
Primitives1Frameworks
Increasing maturity is not a one shot deal. Over time, maturity can be increased by further iterations of a framework. Slide115
Next Steps?Slide116
Next StepsSlide117
Next Steps
You have already taken the most important step by watching this presentationSlide118
Next Steps
The next step is to do some roadmapping work to decide what Transformation Framework to use, to use it to consider your Transformational maturity from a high level, and to plan the work required to adopt it. This may result in multiple “strands” of work as appropriate.Slide119
Next Steps
Subsequently, you will be in a position to get some detailed training on the Transformation Framework you have selected, and to agree the Vision which will drive it’s adoption.Slide120
Next Steps
You will then be in a position to utilise the selected Framework effectively, the first part of which is to perform a detailed analysis of your Current and Target Transformational Maturity Level and to plan its adoption.Slide121
Next Steps
The adoption plan is then executed by using the selected Enterprise Transformation Framework to develop the changes to the Methods, Artefacts, Culture and Environment used to “do” Enterprise Transformation.Slide122
Next Steps
Finally, the changes are rolled out into live operation where an increase in Transformational maturity is achievedSlide123
Next Steps
So, the Next Step after this (Strategising) presentation is the Roadmapping…Slide124
Next Steps
To perform the next step you will need to
discover and be briefed on frameworks which will enable you and other Senior Stakeholders to select one.Slide125
Next Steps
Having done so, you will use it to evaluate your Transformational Maturity.Slide126
Next Steps
Then to create a high level business case and plan to proceed.Slide127
Next Steps
The example shown here is if POET has been selected but
could easily be replaced by any other Enterprise Transformation framework you select.Slide128
Next StepsSlide129
Where POET Fits
FrameworksSlide130
Where POET Fits
Frameworks
Pragmatic is tracking (and categorising) over 900 Frameworks related to the Transformation of Enterprises.Slide131
Where POET Fits
Frameworks
Here we a small set of frameworks that you may already use or wish to use, set in the coherent and holistic context that POET provides.Slide132
Why Use POET2How POET HelpsSlide133
Decision point…Slide134
Admin@PragmaticEA.com www.PragmaticEA.com
Will you contact
to
arrange yourawareness workshop?P
O
E
T
TM