Shaping a Transformation Strategy

PlanningtheStrategy•ScopeandScale•TransformationExecutionBASELINEJANUARY/FEBRUARY2010’sbusinessclimate,mostenterprisesneedtotransformthemselvesonaregularbasis.Althoughtheyneedvisionandgoalstodrivethattransformation,com-paniesalsomustaddressshort-termobjectivesanddevelopnewbusinessprocesses.Equallyimportantistreatinginformationasanasset,reusinginfrastructureswhenapplicable,optimizingapplica-tionportfoliosandmakingneededinvestmentsfromaport-folioperspective.Aboveall,projectsmustbecoordinatedandalignedwiththetransformationstrategyexecution.Thestrategicenterprisearchitecture(SEA)tiesallthistogetherwithintegratedbusinessandtechnologyarchitec-tures,theneededtechnologystandards,andguidelinesforrationalizingassetsandmanagingtheapplicationportfolio.Thiscontributestoshapingthetransformationstrategythatwillenabletheenterprisetoprogressonthepathtothefuture.ScopeandScalePartoftheplanningprocessistodefinethescopeandscaleofthetransformation.Thisinvolvesdetermininghowtosenseandrespondtothebusinessconditionsthatposechallengestothetransformationprocess.Decidingontheapproach—whethertoevolvenaturallyfromthecurrentstateorbemorerevolutionaryandinnova-tive—isacrucialstep.Theapproachfurtherdefinestheorga-nizationalreachofthetransformation,aswellasitstimelineandpace—whetheraggressiveormorereserved.Finally,thecultureoftheenterprisealsoaffectsthescope.Thisinvolvesdeterminingwhethertheenterprisehasthecapabilitytomanagethetransformation(resources,experienceandskillsets),thecompany’scapacityforchangesthatwillbemade(howmuchchangehasbeencompletedduringrecentyears)andhowtheenterpriseembracestransformation.PlanningtheStrategyOncethescopeandscalehavebeenestablished,thetrans-formationtargetandobjectivescanbefleshedout.Theymustbealignedwiththevisionoftheenterprise;however,whenthevisionchanges,thetargetandtheobjectivesneedtobeadjustedaswell.Thetargetandobjectivesaredefinedthroughthebusinessarchitecture.Accurate,currentinformationaboutenterpriseassets,theiruseandtheirhealth(theextenttowhichtheycanbeusedinthetransformationoraresubjectforreplacement)mustbeprovided.Thepathforthetransformation,thepro-cessestomovetheenterprisetowardthefuture,andtheprojectinitiativestobringthisaboutmustbedefinedandscheduled.Thetechnicalarchitecturethatenablesthetrans-formationwillneedtobedefined,andtheinfrastructurethat’stobeleveragedmustbeestablished.TransformationExecutionTheSEAisdrivenbybusinessstrategyandshowsasnapshotoftheenterpriseasitmaylookattheendofthetransforma-tionjourney.TheSEAispragmatic,actionableandrelevant.Asthebusinessvisionandstrategyareimplemented,theSEAshouldbeadjustedthroughassetportfolioimprovements,retirements,consolidationandrationalization.Itisvitaltohavegovernanceprocessesinplaceandexe-cutedtoensurethatallnonvalue-creatinginitiativesareelimi-nated,andtoexecuteonlythestrategy-alignedinitiatives.Therightgovernancebodiesanddecisionsalsomustensurethatallstakeholdersareinvolvedinthetransformationexecutioninsuchawaythatbusinessandtechnologymanagementcanapproachastateinwhichtheyareintertwined.Thesestakeholdersincluderepresentativesfromthebusiness,IT,finance,planning,complianceandoperationsfunctions.TheSEAmustreflecttheever-changingfactorsthataffectthetransformationstrategy:Theymustbeup-datedandeventuallybecomeanextraordinaryfacilitythatguidestheenterpriseinacohesivedirection.3GunnarEriksenisanon-demandexpertatBTMCorporation.BTMinnovatesnewbusinessmodelsandenhancesfinancialperformancebyconvergingbusinessandtechnologywithitsproductsandintellectualproperty.©2010BTMCorporation|[e-mail]nStrategyLEARNHOWSTRATEGICENTERPRISEARCHITECTUREKEEPSTHEEXECUTIONOFTRANSFORMATIONSTRATEGYONTARGET.BYGUNNARERIKSENBL_10_0102_Workbook_v2.indd401/21/1011:21:48AMCopyrightofBaselineisthepropertyofZiffDavisEnterpriseanditscontentmaynotbecopiedoremailedtomultiplesitesorpostedtoalistservwithoutthecopyrightholder'sexpresswrittenpermission.However,usersmayprint,download,oremailarticlesforindividualuse.