Bridging the Pillars
Some time ago, I was challenged by a friend to share here in LinkedIn a methodology that combines Business Architecture, Project Management, Product Management Efficiency Management, BPMN and Strategic Planning.
Part of this methodology was shared in a presentation, when I was one of the speakers at a TOGAF event in the city of Baltimore.
The sharing is going to be divided into some chapters.
This is the introduction.
I am naming this methodology : “Bridging the Pillars”.
On this introductory phase, I will introduce some concepts, their definition and some examples.
I would like to start by the concept of “Bridging”.
It is easier to begin by thinking of a bridge.
Bridges have purpose, they unite places, unite people, they make it possible to cross over an “obstacle” and keep moving forward.
A Bridge can have many lanes, going both directions at the same time.
“Bridging” provides continuation, constant flow, constant value deliverance.
To make its mission possible, every bridge needs pillars.
By “pillars”, let us understand, something that sustains, that supports something else.
By silos, let us understand a single business unit. I would say the most important meaning for silo, is the feeling of standing alone, or even better, “providing value by itself”.
In a company, we can connect silos, but even by connecting them, the company ends up with silos. Independent departments/business units, at the most sharing some goals.
Now, let´s pause for a minute.
So far, you might think, you are already living“Bridging the Pillars”, and that this is just another article, with a nice name.
But I would like to invite you to really consider the next few paragraphs and ponder if you are indeed, “Bridging the Pillars”, or if you are “Connecting the Silos”.
I am going to share some examples, illustrating the difference between “Bridging the Pillars” and “Connecting the Silos”.
First example.
Let´s think of an HR department. Every company has one. Perhaps with different names but basically delivering the same value.
If the HR department has a Goal, such as:
-Employe´s turnover should not be higher than xy% by DEC 31st .
That shows me, the company is working in Silos.
In the best scenario, the company is connecting the silos.
To “Bridge the Pillars”, HR department, would not think of such a goal.
Instead. The mentioned goal, would be a KPI and part of one or more OKRs.
An example of OKR would be: Improve product quality by xy% by mm/yyyy.
Another OKR: increase value to shareholders by xy amount or xy% by mm/yyyy.
Second example.
Let us think of a Finance Department.
If the Finance department has a goal such as:
-Reducing costs in xy% by the end of the year.
The company is working in Silos.
To “Bridge the Pillars” this goal, would become a KPI and part of one or more OKRs.
An example of OKR is: To increase value to shareholders by xy% by mm/yyyy.
Another OKR, could be: To improve efficiency by xy% until mm/yyyy.
Can you see how this changes the way we run businesses?
The actions to achieve the OKR would be towards improving efficiency, improving operations, cutting bureaucracy. Not just the regular approach, aiming cost reduction by removing “service packages”, features, vendors.
Of course it would have some service package reduction, but it would be proven that a service package is not necessary.
The other example, related to HR department, the approach would switch from the traditional (but still very important actions such as), thinking on fringe benefits, improving employee’s mental health, provide a “modern office” etc , to including other actions related to; employment training (specific quality training) , simpler and straight to the point evaluation methods.
HR department would need to think of actions that would improve product quality and how to provide more value to shareholders.
Bridging the Pillars is hard in the beginning, it is not for the faint heart.
It is hard because it “moves everybody cheeses”!
It is everybody’s game.
It shifts the way companies plan their budget; it changes how companies approach growth.
Siloed goals reward siloed processes and siloed objectives, not a common objective.
By “Bridging the Pillars” everything becomes truly connected. No longer does a decision affect only one group/department.
Decisions will affect a Business Capability, or many Business Capabilities.
There are no more Silos. No more, “department xy achieved its goals”, “department xyz did not achieve its goals”.
The usual problems, the ones that everybody knows, and that are always there, will change.
Every Business Capability is a Pillar that sustains value. Value delivered to the final client and shareholders.
The focus is on the value delivered, the measurement is related to the value delivered, the results will come from the value delivered to the final client and Shareholders.
Let us pause one more time.
Not having silos, it is what everybody says they want for a company.
It is not impossible to achieve it, but it demands changes.
It is not a “big bang” type of change.
There is no “one right way” to begin.
I believe there are 3 ways to begin this transformation.
Beginning from Strategic Planning
Beginning from Efficiency and Process Management.
Beginning from Business Architecture.
All 3 ways have its Pros and Cons. We will explore them later.
To close this introduction, I must say. All 3 ways share a key component.
The “face of the change” needs to be a “C” level in the company.
The face of day-to-day work should be a delegated leader.
Empowering is not enough.
The “C” level needs to be a force, a moving force over this transformation.
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CHAPTER - IMPLEMENTATION BEGINNING FROM STRATEGIC PLANNING AND PROJECT MANAGEMENT
I am going to describe how to implement Bridging the Pillars, starting from Strategic Planning and Project Management.
I am going to mention PROS and CONS/ Risks, the deliverables, specify the improvements in people skills and propose a roadmap.
First, let’s begin with the PROS by beginning implementation from Strategic Planning and Project Management.
· There is less friction in adopting a Capability Map;
· It is easier to identify and place company strategy over the Capability Map;
· It is easier to run Strategy accomplishment analyses over the Capability Map;
· It is easier to promote the concept of Capability Thinking;
· It is easier to identify the value provided by each project for each Capability;
· It is easier to propose future value chances for each Capability;
· It is easier to identify if money is allocated in the correct capabilities, to deliver the expected value and strategy.
In short, by beginning from Strategic Planning and Project Management, the company will have a ONE PAGE method to visualize the Strategy, its execution, value delivered and monetary allocation.
Executives will be able to start thinking about the company as ONE organization.
No silos, focus on the value delivered to the final clients and shareholders.
There should be no feelings of “invaded space”, since it will be Strategic Planning who will lead the efforts.
Since there are PROS, there are also CONS.
CONS/ Risks:
· Strategic Planning analysts and PMOs/ VMOs usually do not think Capability, they need to be trained on the concept of Capabilities;
· Since the team needs to be trained on the concept of Capabilities, there will be need of having a leader that knows the concept and knows how to apply/implement it;
· There might be the risk of extended time to begin delivering value;
· There is a risk of not achieving Bridging the Pillars full potential, stopping on Capability Map visualization;
After mentioning the PROS and CONS, it is time to propose a High Level Roadmap for phase 1(Implementing Capability Thinking, Capability Map and its use):
1. Obtain “C” Level sponsorship;
2. Obtain training budget;
3. Train Team;
4. Develop and Deploy Capability Map (Strategic Planning);
5. Connect each Project to its respective Capability (PMO/VMO);
6. Identify if money is placed to deliver Strategic Value (PMO/VMO);
7. Run analyses (Strategic Planning);
8. Present Results (Strategic Planning).
9. Phase 2
In my opinion the most difficult/ hardest steps are steps 1,2 and 3. Step 1 is the hardest of them all.
The other following steps are just execution. If the team is well trained and has the right attitude, results will follow.
There are a couple of ways to execute step 1:
A) The “C” Level, presents the need to the team;
B) Someone must “inspire” a “C” Level.
If you are facing scenario “A”, you will need to study, develop, test, fix issues, test and deploy. But you already should have the support needed.
If you are facing scenario B, you will need to execute the same steps mentioned on the last paragraph, but you have the chance to surprise, to bring a solution for a need someone has.
Accomplish steps 2 and 3 can be tricky.
If you hire a consulting group, make sure they know TOGAF, PMBOK/ AGILE, Strategic Planning, make sure they “think cross” and not only Enterprise Architecture.
Perhaps you do not need to spend money hiring a Consulting Group. Perhaps you are a leader who really knows the subject and can train the team and develop the Capability Map. Perhaps Business Architecture could train the team and help on the mapping of Capabilities.
As soon as the team is trained, execute the Capability Map, focus on the execution.
Be meticulously focused on the quality of the execution.
A word of advice:
- Do not take a long time to present the results to the “C” Level.
- Phase 1 should take no longer than 2 months from Start to Finish.
- Do not underestimate the concept. It is easy to understand, it is simple, but not simplistic/simpleton.
-Remember, the team will need constant follow up. The team will feel in the beginning, this is just another way to visualize and present Strategic Planning.
-Make sure to show them, to teach them, Bridging the Silos is much more than just presenting a Capability Map.
-Do not fall for the trap of feeling great after receiving Congratulations regarding accomplishing Phase 1. Remember, Bridging the Silos is a much broader journey.
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After presenting the Capability Map and all the analyses that are possible to present using a Capability Map, after the “C” Levels are used to receive information on this format, it is time to move with the next phase of the implementation.
Phase 2 is where a larger interaction with other business units will happen.
It is necessary to advance on connecting Capabilities -mainly- with ABBs (Architecture Building Blocks), Operational Value Streams, SBBs (Solution Building Blocks), Business Processes, Organizational Structure.
But Phase 2 is not only connecting artifacts.
Phase 2 should bring real value to the company.
This when the Pillars will be truly Bridged.
There will be a need and space to start executing real Capability Assessments, perhaps you can start with Product Assessment, train the team on how to run it properly and then move to Capability Assessments.
Using Capability Thinking and all the artifacts mentioned above, you will be able to achieve great results, by truly identifying the Context, Issues +Risks, Market Data, Innovation, compare it all with the AS IS scenario and propose changes focusing on People, Business and Tech, combine them and bring great value to the company.
I believe there are two ways to make Phase 2 happen.
A) A transitioning way, keeping Strategic Planning, PMO/VMO, Business Architecture, Business Process Management as separated business units;
B) Combining all four. I will detail this in the last chapter.
In case “A”, all 4 business areas/units will need to work together and identify their boundaries.
For instance, Business Architecture and Product Areas will be able to propose innovation and changes on the company´s Strategic Plan, and Strategic Planning will evaluate if it is applicable or not.
Business Architecture will connect Tactical work to the strategy.
Business Architecture will focus on working with POs, PMs, Business Unit leaders, delivering Assessments with Strategic and Tactical value, focus on Capabilities, ABBs, Operational Value Stream, but working close to Strategic Planning.
Strategic Planning will continue to focus on what they focus on. Change Management, overlook Strategy, provide medium- terms and long-term insights, working with POs, PMs, High level executives and Business Architecture.
Perhaps a big change to Strategic Planning is to verify the need to change strategy execution in the middle of the strategic cycle, defend it and execute it.
PMO/VMO, will continue to focus on what they focus on today. Providing evaluation regarding project deliverance. But now thinking Capability.
Business Process Management will need to map Operational Value Streams and understand how they execute the Capabilities. BPO will need to work closely with Business Architects.
The arrangements mentioned above seem simple and obvious, but if they are not made, if the boundaries are not clear, if there are disputes among the Management level, a lot of confusion and conflict will come, and the entire change will be at risk. This is where; the full commitment of the “C” Level sponsor will make a difference.
Next Chapter will follow on how to implement Bridging the Pillars starting from Efficiency and Process Management.
Ótima abordagem Yuri!!!
Legal a abordagem…
Excelente!