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The IT Strategy: An Articulation of the IT Strategy from a Coherency Architect’s Point of View.

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Articulation of the IT Strategy

The Coherency Architect needs to be able to deal with the IT strategy otherwise he or she will not be able to drive any value from the Enterprise Architecture. There are many approaches to how an IT strategy can be articulated and what the primary focus should be.

This blog post will deal with the approach Chris Potts have proposed in his book titled “FruITion”. Chriss Potts have proposed a bit controversial approach to IT strategy e.g., he focuses on other models and claim that when the organization manages its investments then the right portfolio of technology will be selected, likewise does he propose that the role of the CIO isn’t an imperative. In the novel Chris Potts suggest the title “CIIO” for Chief Internal Investment Officer.

The Coherency Architect can make use of the approach to challenge his or her own view on the strategy and thereby be able to produce better strategy.

It is notable that the book is organized around a novel that deals with a CIO that faces a situation where he can’t pin point what kind of value the IT department brings value to the organization.
Potts then write emphasize some observations that can be made on each of the chapters in the book.

The Strategy Articulation Process

This section is based on the definitions that Potts describes in his work “FruITion” (Potts 2008, p. 13):

  1. Most robust strategies emphasize high value on its environmental feedback.

  2. Make sure the strategy is meaningful to the stakeholders of the strategy.

  3. Distinguish between the strategic level and the operational level thinking.

  4. Disinterest should never be understood as trust.

The following four statements are based on Potts’s “fruITion” (Potts 2008, p. 25):

  1. A document that contains the strategy is not the strategy.

  2. The language used to articulate a strategy shows the mindset of which the person who articulated made use of (or has).

  3. If the host organization (enterprise) has an IT strategy then it is necessary to include all of the Information Technology the organization (enterprise) makes use of.

  4. It is an imperative that the IT strategy has to summarized in one meaningful sentence; otherwise the strategy needs to be reworked.

  5. If the organization (enterprise) has an IT roadmap then it is imperative that the driver of the roadmap isn’t the suppliers but the tactical goals and strategies of the organization.

  6. If the CIO runs the IT department as an external business (weak links to the enterprise) then the enterprise will threat the IT department as such.

The following four statements are based on Potts’s “fruITion” (Potts 2008, p. 54):

  1. Shape the strategy by exploring why the company isn’t already fulfilling its promise.

  2. The CIO should validate who the promise is “talking about”.

  3. Build the strategy on a model that emphasize the customer and supplier perspective and never the “Business and IT” perspective. The over all reason for this is that the organization and IT department is one and the same.

The following four statements are based on Potts’s “fruITion” (Potts 2008, p. 204):

  1. If the organization manages its investments well then it is likely that the most appropriate technology will be selected.

  2. The organization should assign an executive accountability for maximizing the total value the company creates by its internal investments in change.

This leads to the Alignment phase.

The Alignment Phase

This section is based on the definitions that Potts deals with in his work “FruITion” (Potts 2008, p.34):

  1. Never under estimate the pace (of change) of the Corporate Strategy.

  2. The strategy has to be compatible that stakeholders change their minds.

  3. Build the IT strategy on a promise and not on aims.

  4. If the IT strategy is organized around solving a particular problem, then it is a necessity that the IT strategy solves the problem.

  5. Are the persons who develops and articulates the strategy (strategists) game players?

This section is based on the definitions that Potts deals with in his work “FruITion” (Potts 2008, p. 44):

  1. If the business side of the organization perceives the IT department as an external supplier then it is likely that the IT department and the CIO can’t influence the corporate strategy.

  2. Different kinds of strategies needs different kinds of strategists.

  3. The CIO should know his relative strengths and weaknesses when it comes to analysis and synthesis. In a strategy it is the synthesis part that is the most important thing to handle.

  4. If the IT department or organization (enterprise) have issues with identifying what value the IT brings to the organization then it is likely that the organization (enterprise) experience wider business related problems.

This section is based on the definitions that Potts deals with in his work “FruITion” (Potts 2008, p. 61):

  1. A corporate strategy that is focused on exploiting IT is focused on value, money and organization. The corporate strategy is not focusing on technology.

  2. The directors of a company is an independent community that adds value to the company.

  3. Value is defined as a portfolio of measures and types.

  4. The “business side” of an organization will in many cases assume the money the enterprise is spending on IT is a random number.

This section is based on the definitions that Potts deals with in his work “FruITion” (Potts 2008, p.124):

  1. Each stakeholder in a strategy has something distinctive to offer.

  2. Language and communications are critical to a strategies success.

  3. The concept of theoretical, practical and abstraction depends on the audience. The strategy should be articulated and aligned to the audience.

  4. People in organizations develops the projects rather fine but they tend not to make the most out of the projects when the projects have been implemented.

This leads to the value adding phase.

The Value Adding Phase

This section is based on the definitions that Potts deals with in his work “FruITion” (Potts 2008, p. 70):

  1. Many relationships are based on perceptions and high profile characteristics.

  2. The business side of the organization expects service and therefore should service levels between the IT department as a supplier and the customers be negotiated and incorporated into the strategy.

  3. The corporate strategy is about numbers. The focus of the IT strategy should be the same.

  4. Often there is a gap between those in the enterprise who adds value and those who spends the value. Is that also the case for the IT strategy?

This section is based on the definitions that Potts deals with in his work “FruITion” (Potts 2008, p. 159):

  1. The CIO (or the Coherency Architect) should make use of color coding to distinguish the business investments from the IT investments.

  2. The CIO (or the Coherency Architect) should prove that looking and managing the IT investment as something apart from the business investment isn’t sufficient.

  3. The CIO (or the Coherency Architect) should show that the strategic projects aren’t necessary those projects that aggregate the highest ROI.

  4. Explorer the cause and effect with of IT investments and business investements.

This leads to the change management phase.

The Change Management Phase

This section is based on the definitions that Potts deals with in his work “FruITion” (Potts 2008, p.72):

  1. When changes occur (as it will with the implementation of a new strategy) then the change process will also impact the employees (and managers) personal life.

  2. Numbers is a dispassionate way to analyze the strategic landscape with. It should include what the CIO and the enterprise knows and doesn’t know.

This section is based on the definitions that Potts deals with in his work “FruITion” (Potts 2008, p.81):

  1. The IT strategy has to be articulated in an iterative approach.

  2. Look at the numbers in the budget and evaluate if they speak for themselves.

  3. The CIO (or the Coherency Architect) has to explore how the company budgets , manages, and measures business change that comes through IT related projects.

This section is based on the definitions that Potts deals with in his work “FruITion” (Potts 2008, p.175):

  1. The CIO (or Coherency Architect) has to cause other people to change.

  2. The CIO should know what he would die in the ditch for.

  3. The business side of the organization often experience the IT side of the organization as being “promising a lot and never keeps the promises and it doesn’t care about the business side”.

  4. 100% alignment among strategies can be dangerous and it occurs rarely that the strategies are 100% aligned.

  5. The future role of the CIO is not assured.

  6. The CIO or Coherency Architect has to understand that there are competencies else where in the enterprise that is in duplication of the those competencies that are in the IT department.

  7. The new strategy for IT demands a new operation model.

This section is based on the definitions that Potts deals with in his work “FruITion” (Potts 2008, p.180):

  1. Strategists deal only in success and so should the CIO and the Coherency Architect.

  2. It can be hard for the CIO and the Coherency Architect to challenge the orthodoxies of the organization.

  3. If the CIO will not cross the bridge then let someone else take care of the investments.

This section is based on the definitions that Potts deals with in his work “FruITion” (Potts 2008, p.182):

  1. Leading strategy can be a lonely job.

  2. The over all focus of a strategy is about winning. If the CIO or the Coherency Architect is not committed 100% to achieving the strategy then it is not really a strategy.

This section is based on the definitions that Potts deals with in his work “FruITion” (Potts 2008, p.191):

  1. Set down your Promise, Principles and Tactics for the key stakeholders to explore and ratify.

  2. The stakeholders wants to see the combination of ideas in relation to the organizational system.

  3. The strategy can look like the obvious but it is important that the CIO or Coherency Architect emphasize that the strategy isn’t applied.

  4. The CIO or Coherency Architect should test the best practice of the industry.

  5. The strategy is what the CIO or Coherency Architect does (de facto strategy).

This leads to the implementation phase.

The Implementation Phase

This section is based on the definitions that Potts deals with in his work “FruITion” (Potts 2008, p.96):

  1. Use the “Promise, Principles and Tactics” framework while the strategy is in the articulation process and when it is about to become executed.

  2. The “Promise and Principles are the stabile core of the strategy. Tactics are more fluent or adaptable when it comes to events.

  3. Address each of the stakeholders individually (preferable personally) before the stakeholders are addressed as a group.

  4. Lead the execution of a strategy don’t manage it.

  5. When it comes to the investigation of IT investments then start with identifying value and then work backwards. When using a spreadsheet then the focus should be on columns and not on rows. This should help create the overview that is needed (according to Potts).

This section is based on the definitions that Potts deals with in his work “FruITion” (Potts 2008, p.103):

  1. The strategist (CIO) is the embodiment of the strategy.

  2. Organize the collaboration around one set of numbers and strategic themes; however each person who works with the strategy should be given the opportunity to have an influence on that part of the strategy that they work with.

This section is based on the definitions that Potts deals with in his work “FruITion” (Potts 2008, p.115):

  1. A relationship is owned by two people.

  2. Experimenting with the numbers (in the budget) can uncover a new understanding of the problem.

  3. The CIO (or Coherency Architect) should make use of a bottom up value portfolio.

  4. The CIO (or the Coherency Architect) should evaluate the investment strategy to sparkle a discussion on what priorities the organization (enterprise) has.

  5. The Coherency Architect should be focusing on the exposing the scenarios for what will happen if the investment strategy is changed.

This section is based on the definitions that Potts deals with in his work “FruITion” (Potts 2008, p.134):

  1. Strategy is essential about options and opportunities and it is not about being right.

  2. Take the lessons for what didn’t work as expected.

  3. The relationships that people builds are influenced of previous events and relationships.

  4. Look for the subtleties in the responses of the stakeholders.

Types of Managers

Potts presents the model (illustration 1) that serves as a compass for characterizing managers within the organization. Note it is a compass and most managers aren’t purely technical, purely operational, purely environmental or for that matter purely organizational.

Pott's View on Managers

Potts's View on Managers.

The operational manager focuses on execution and internal processes.

The environmental manager focuses on how the strategy’s external context.

The technical manager focuses on specifications, technologies and products/services etc.

The organizational manager focuses on organization models, cultures, structure, internal politics and sourcing.

That leads to the conclusion.

Conclusion

The Coherency Architect should be aware of that there are various ways to develop and articulate an IT strategy. Potts approach is rather clear and can in many ways be considered as a practical approach to articulate an IT strategy. Potts approach can be considered an alternative approach to IT strategy and it can be used to challenge the “industry orthodoxies” which in itself can create a competitive advantage.

The Coherency Architect has to understand how an IT strategy is and how the artifact can be produced if it doesn’t exist in an enterprise already and that makes the concept of the IUT strategy rather important to understand and challenge.

Sources

Potts, C., 2008. fruITion: Creating the Ultimate Corporate Strategy for Information Technology illustrated edition., Technics Publications, LLC.

Download the paper her (articulation_of_the_IT_strateg.).

A Coherent Architecture as a Strategy

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There are several issues that influence the competitiveness of any organization.  These factors are to be found in any domain (and are almost generic). This means that the organization will lead to the innovation, growth and decline of organizations.
Some organizations are privileged by owning a monopoly either backed by a government or by the fact that their products or services are superior to any of the competitors on the market. This makes the organization rather good to earn money since they often can set the price for the products and services as they want to; however this also leads to lack of agility since the pressure of the free market isn’t influencing the decision making of the management or the employees.
When organizations growth then they have a tendency to become more bureaucratic since there is a greater need for coordinating among the members of the organization, departments and management. This leads to a great degree of standardization but it also leads to a decline in agility compared to changes in the domain of the organization.
Therefore it becomes a question on how to cope with the need for coordination (bureaucracy) and the need for agility.
This can become an influence that impacts the organization and if it is used correctly then the organization can gain a competitive advantage.
Likewise can the way the organization make use of a technology become a competitive advantage for the organization. An example of this is that the organization might be superior to any competitors to utilize their information technology like software and hardware to support and develop their processes. These processes might in return prove to become easier to handle and create more value than the processes the competitors of the organization have.
Organization culture might also prove to become a competitive advantage since it indoctrinates the employees to act in a specific way. If the organization culture makes the members of the organization find and discover errors and eliminate the errors then the cost of repair and service fall and re-enforce the brand of the organization and re-enforce the good will the customers of the organization has to the organization.
Thereto will coherency management assist the host organization with creating a competitive advantage since it will assist the management and the various other stakeholders in the organization developing the necessary overview and consistent information that can be used to make the proper decisions.
Thereto if IT, business processes, organization culture, corporate strategy aren’t aligned then the organization will experience that the system is not able to fulfill the its potential and will therefore the organization will experience opportunity costs.
It is therefore in the interest of the management to work with the organization to achieve its goals and it is in the interest of the employees to assist making their work place better for them. It is the interest of them to feel productive and feel that their work matters for the organization. It is therefore a paradigm to involve them in the decision making but they too should be kept informed on how the organization develops.
Coherency Management is building on the principles on identifying the underlying architecture in the organization and enhancing the development of the architecture and by that the organization.
This is done by applying the tools from Enterprise Architecture to identify and evaluate the various processes and adding the technology needed to enhance the processes or re-think the processes to generate more organizational value.
It is therefore a strategical tool to evaluate and rebuild the architecture of the organization to match those tasks and challenges the organization will face in the future competition. A solid architecture which can be extended and reused will be a necessity in the future so the organization can grow and develop an architecture that can be used to connect the processes, people, departments and organizations to develop the right products and services to the right price.

Organizations will in the future be able to align them self to one or more syndicates to create products which are cheap enough to sell to the people in the third world. The organizations in these  syndicates have to know their architecture to understand and connect to these shifting syndicates and if these organizations either don’t know or understand their architecture then they will not be able to join the syndicates and gain the benefits from it.

Therefore is it of strategic importance that all organization work with and articulate their architecture to enable abilities of agility, knowledge and innovation and to that all the support functions and processes to enable interactions with so called networked organizations and syndicates.

To give the analyst some insight into how IT influences the an Architecture then it is advised that the analyst reads about critical issues in IT management.

Critical Issues in IT Management

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IT is a fundament when it comes to Coherency Architecture and it is therefore necessity to be able to understand the critical issues in IT management.

Therefore have I chosen to publish my notes from the course “Critical Issues in IT management” which I attended at Copenhagen Business School in year 2008.

As with all other documents at this blog the license for the document is Creative Commons V3 U.S. Edition share alike (read more under the general license for this blog).

Link to document: issuu.com

 

Enjoy the notes.

 

The Coherency Architect

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Since the start of the blog then I have mentioned the work of the Coherency Architect. In this blog post I will describe what abilities the Coherency Architect should posses to perform his or her job. This description could be considered a template for a job description for the Coherency Architect.
The Coherency Architect has to be a generalist that have to understand the basis and depth of organizational behavior and understand human psychology in how the organization works.
The organization consists of various contexts which the Coherency Architect has to be able adjust to and develop suitable solutions for.
For being agile then the Coherency Architect has to understand and work by a set of principles based on an academic study of Management Accounting, Project Management, IT strategy, Corporate Strategy, Organizational studies, knowledge Management and change Management.
Some of the above mentioned disciplines are of course logical for a Coherency Architect to understand and to make use of; however some of the courses like Management accounting has to be understood otherwise the Coherency Architect wouldn’t be able to understand the economic flow or the cost structure of producing the products or the services in the organization.
The costs have to be understood to identify the bottle heads in the organization and it enable the Coherency Architect with the the tools needed to solve major problems for the organization.
Coherency Management and Coherency Architectures derives from field of Enterprise Architecture which originally was an engineering discipline for developing technical solutions for organizations. These technical solutions were derived from the IT strategy and the IT strategy was again derived from the Corporate Strategy. In that way IT and business had to be some how aligned to achieve sufficient results. This could be called Coherency in a simple state.
For this the understanding of business models, strategies and corporate strategies is needed and therefore should the Coherency Architect develop an understanding of these disciplines to be able to add value by changing the processes and adapting coherent processes.
For this the Coherency Architect should understand people (their psychology and their organizational abilities). The Coherency Architect should not get all his or her knowledge from the academic world but also gain knowledge from experience e.g., by working with people and developing his or her people skill and the Coherency Architect should be able to lead people into the new situation meaning that he or she has to understand rhetoric and leadership to inspire the members of the organization to help change instead of fighting change.
However people are often not good to stay focused on a goal that is distant in a matter of time frame and therefore should the Coherency Architect work on his or her motivation skills and to be able to create short term goals and short term wins that are aligned with a vision.
Especially the short term wins are important to keep commitment from the stakeholders in the organization.
The Coherency Architect has to understand how to operationalize programs for changing the organization and the be able to keep stakeholder commitment which is a classic project Management discipline.
It is vital to understand that the Coherency Architect has to be able to gain knowledge from both the academia and by gaining knowledge from working in practice in the organization. In some ways the a practical approach can be the proposal to align the processes so they are coherent.

Nonaka's SECI Model

Nonaka's Framework

Therefore should the organization that is about to apply for a Coherency Architect work with several perspectives on knowledge and not just be working with the idea that a pure academic would be able to solve the problems better than a person who only have practical education; however the middle ground would in most conditions be preferable.
The Coherency Architect and the organization have to adapt to each other otherwise Coherency Management can’t be applied properly.
The Management and the stakeholders of the organization have to invest their trust into the Coherency Architect to show to the rest of the host organization that the Coherency Architect has the power, the initiative and the right to give them orders to change the way they work.
It is often the failure of the Management to show commitment to the Coherency program that blocks for coherent changes in the host organization.
Since organization consists of humans then all organizations are alike and yet they aren’t. Therefore should the Coherency Architect also adapt to the organization.

The Mind Map below deals with the primary issues of the Coherency Architecture.

The Skills of the Coherency Architect

The Coherency Architect

How to Identify Architectures?

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Every organization has an architecture otherwise it wouldn’t be possible for the organization to do business or transform raw materials into products or labour power into services.

However the Coherency Architect has to focus on how to identify the architecture in a methodical way so the Coherency Architect can make develop a functional approach on how to define potential coherence related problems and how to mature the architecture so the organization will make progress and work in a smarter way to reach the goals of the organization (those defined in the official strategy).

To identify the various problems then the Soft Systems Methodology or the Work System Method which can be used to collect data about the architecture in a systematic way. If the Coherency Architect doesn’t make use of a systematic approach then it is likely that he or she will miss potential flaws, errors, dangers etc. that might have a great impact on how good the coherence of the organization is.

There are two general approaches the Coherency Architect can make use of to identify the processes in the organization. The first one is the so called exhaustive approach that deals with the Coherency Architect identify all the processes in the organization and create plans for them. The second one is called the “high – impact” approach that deals with that the Coherency Architect deals with identifying the core processes in the architecture (organization). To start with then it might be preferable for the Coherency Architect to deal with the core processes and then adapt the Coherency Program to alter them.

Besides the two above mentioned methodologies then the organization can make use of various techniques such as the rich picture and flowcharts to analyze how the various elements in the organization impact the general outcome of the organization.

An example of a functional approach to analyze an architecture could be that the Coherency Architect made use of a qualitative data collection method which means that the Coherency Architect would go an observe and interview potential members of the organization. The members have to be put located various places in the organization so the Coherency Architect can create the best overview of the organization as possible. When the first round of interviews have been collected and processed then Coherency Architect should go observe the members of the organization perform their daily tasks and identify how the raw materials are transformed into products or services. The Coherency Architect should especially focus on how the various linked processes interact use this view to identify potential problems with the coherency of the processes. When these problems have been identified then it is likely that the Coherency Architect should make use of either the SSM or the WSM methodologies. These methodologies are used to create an understanding of what is happening within the system. However it is notable that the two methodologies belongs to two different paradigms which view the world very differently.

The Work System Method belongs to the “functional paradigm” where the Soft Systems Methodology belongs to the “interpretive paradigm”. The two paradigms are defined by Burrell and Morgan (1979) in their article dealing with sociological paradigms and organizational analysis.
The functionalist paradigm works with the idea that the architect will collect the needed data and then come to a conclusion based on his or her own world view. The interpreting paradigm works with the idea that the architect has to facilitate the different world views in the organization and thereby assist the members of the organization with developing a solution e.g., a new work system, information system or a third solution.

The two paradigms will lead to various kinds of conclusions and of which there might be opposing. It is therefore vital that the Coherency Architect is able to identify the limits of his or her own world view and identify how the members of the organization thinks and acts according to their world views. If the Coherency Architect makes use of the wrong approach then his or her suggested solutions might turn out to be out of touch with how the organization assume its business works and the solution will be turned down.

When the Coherency Architect has gone through this process then he or she will be able to identify one of the three different forms of architecture an organization might have. As mentioned earlier then every organization has an architecture.

Doucet et al. (2009) identifies three possible architectures. The first one is the architecture of an organization before an EA (enterprise architecture) toolkits have been applied. The architecture is called the articulated architecture.

The more mature architecture is called extended architecture where the EA toolkits has been applied for the IT side and some of the processes at the business side has been identified and is making use of EA principles.

The most mature architecture is called the embedded architecture where the EA principles are embedded into every business and IT project. Doucet et al (2009) defines this state as where the EA grid is put into practice and where all project, processes and sides of the business work with practices from EA and therefore have achieved the goal of Coherency Management.

To summarize then the Coherency Architect has to focus on:

  1. The methodology used to collect data.
  2. The paradigm the Coherency Architect make use of to identify issues with the Coherency of the processes, structure, people, tasks and technology within the organization.
  3. The world view the Coherency Architect make use of when he or she develops his or her coherent solutions for the organization.
  4. The states of the architectures in the organization and how to reach them.

Sources

* Gary Doucet et al., Coherency Management: Architecting the Enterprise for Alignment, Agility and Assurance (International Enterprise Architecture Institute, 2009).

* Burrell, G., & Morgan, G. Sociological Paradigms and Organizational Analysis (1979).

Governance versus Innovation

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Currently the IT department has a lot of control on how to govern and administrate the computers in the organization. It is usually based on the idea that the economies of scale is the preferred perspective to make use of e.g., when it comes to discussion on how to enable the users to operate with new features.

The CIOs tends to favor ideas of that when the governance committee has decided how the group is designed and who should be consulted when it comes to input and enforcement but they tend not to understand the need for user customization that has the potential to crystalize innovation and by that strengthen the organization.

After all it is the users who usually understand how they can improve their work conditions and their way to handle various forms of tasks e.g., organizing, information handling or knowledge sharing.

In this perspective it is rather clear that the persons who have a first hand impression of the situation are those who should be able to find suitable solutions for the problems at hand.

The IT department often play a critical role of the degree of freedom and thereby degree of innovation the users can achieve. If the IT department enforces the strategies the strategy committee has articulated and enforcing its view of governance then the employees often have to live by the rules of the IT department.

From the CIOs point of view then the organization’s use of IT has to be efficient both in usage and in costs. This means that the organization has to focus on keeping costs down on maintenance and focusing on pleasing the stakeholders of the IT projects. With this in mind then the IT department will focus on limiting the possible configurations of the computers and information systems in the organization so end user support and technical support can be easily deployed.

In other words the organization is in a constant struggle between efficiency and innovation.

As mentioned before then it is of vital importance that the organization is able to innovate its processes and by that the employees of the organization actively engage in the improvement of the organization structure. The Coherency Architect has to focus on both the efficiency (costs and support) and the issues of innovation in the core of the organization.