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Strategy Mapping Fundamentals
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The Business Architecture Summit
About Sparx Services North America
“Align information technology and systems engineering capabilities with business strategy using industry best practices
and industry leading tooling to deliver world-class results.”
� Industry thought leader in enterprise architecture, business architecture, systems and software engineering, business analysis, and agile methods
Member and contributor to
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TCBAF Business Architecture Summit 2018 – Strategy Mapping Fundamentals
Copyright © 1998-2018 Sparx Services North America, All rights reserved
� Member and contributor to� UML®, SysML®, SPEM, UPDM™/UAF, BACM at OMG®
� TOGAF®, ArchiMate®, IT4IT™ at The Open Group®
� UML Profile and Metamodel teams at Business Architecture Guild®
� Open Group Accredited Training Provider, Guild Accredited Training Partner™, IIBA® Endorsed Education Provider (EEP™)
What is Business Agility?
� “...the ability of an organization to sense
environmental change and to respond
efficiently and effectively to that change.”
- Gartner, 2006
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TCBAF Business Architecture Summit 2018 – Strategy Mapping Fundamentals
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� Effectively achieving agility requires
the business to…
� Anticipate and characterize change
� Understand impact of change on existing
strategy and in-flight initiatives
Business Architecture Framework4
Business Architecture Knowledgebase
TCBAF Business Architecture Summit 2018 – Strategy Mapping Fundamentals
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� Blueprints provide views into knowledgebase, based on stakeholder concerns
� Scenarios contextualize expected outcomes of business architecture work
� Also inform initial selections of key stakeholders and likely concerns
BIZBOK® Guide 6.5
Deliver Strategic Outcomes – Value Stream5
TCBAF Business Architecture Summit 2018 – Strategy Mapping Fundamentals
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Deliver Strategic Outcomes – Entrance/Exit Criteria6
TCBAF Business Architecture Summit 2018 – Strategy Mapping Fundamentals
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Strategy Map – Definition
� “Articulates a strategy in such a way that it can be readily interpreted and acted upon”� “A collection of techniques that are used to enable organization to gain
visibility into the way that strategic tradeoffs are made between competing objectives”
� Strategy defined as “the pattern or plan that integrates an organization’s major goals, policies, and action sequences into a cohesive whole”
� Balance top-down, high-level objectives with bottoms-up, low-level
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� Balance top-down, high-level objectives with bottoms-up, low-level objectives
� “Provides both a map of how decisions have been reached”� “As well as a guide for what choices are currently under consideration”
� “The exercise of planning remains much more valuable than confirming to any particular strategic plan”� “In preparing for battle, I have always found that plans are useless, but
planning is indispensible.” – General Dwight D. Eisenhower
BIZBOK Guide 6.0
Strategy Mapping – Benefits
� Support organizational alignment� Strategies are only as effective as the ability to align organization
to those strategies
� Open up discussions of implications to wider, deeper audience
� Improve communication and fidelity of objectives� As strategy is communicated across business units and down
layers, each community may interpret it differently
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TCBAF Business Architecture Summit 2018 – Strategy Mapping Fundamentals
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� Connect intent with specific, unambiguous objectives
� Assist organizations in adapting rapidly� Pace of change and rate of competition requires effective
innovation
� Help understand how to respond to newly identified opportunities and threats
� Provide framework for bubbling up ideas from lower levels
BIZBOK Guide 6.0
Strategy Mapping – Benefits
� Enable rationalization of initiatives� Need clear governance framework for aligning proposed
initiatives to strategy
� Provide context to continually re-evaluate in-flight initiatives as understanding deepens and new changes occur
� Support capability-centric investment management� Smaller initiatives may not have enterprise recognition
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TCBAF Business Architecture Summit 2018 – Strategy Mapping Fundamentals
Copyright © 1998-2018 Sparx Services North America, All rights reserved
� Smaller initiatives may not have enterprise recognition
� May be over-investing in non-differentiating capabilities or unnecessary redundant deployments
� Provide ability to monitor organization’s progress towards strategic objectives� Enable linking high-level strategies to low-level strategies
� Create strategic dashboards to demonstrate ongoing alignment
BIZBOK Guide 6.0
Strategy Planning – Approach
� Many organizations have little formality in strategy definition
� Feel formalization constraints innovation
� Other organizations have formal strategy management
team
� Feel formalization critical to informing executive decision making
� Unified approach to organizational change a critical differentiator
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TCBAF Business Architecture Summit 2018 – Strategy Mapping Fundamentals
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� Unified approach to organizational change a critical differentiator
� Incrementally describe
� What an organization might do
� What an organization can do
� What an organization wants to do
� What an organization should do
Integrated Enterprise Planning Processes
Innovation
ManagementStrategic
Planning
Transformation
Planning
• Market analysis
• Disruptive
technology • Rationalized strategy
• Enterprise scope definition
• High-level target state
• Capability assessments
• Detailed target state
• Gap analysis
• Readiness assessment
• Implementation strategy
• Transformation roadmap
TCBAF Business Architecture Summit 2018 – Strategy Mapping Fundamentals
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Initiative
Planning
Tactical
Planning
• Sponsor
submitted “big
changes”
• Board-level
directives
Architecture
Demand
Management
• Allocated
funding and
resources
• Prioritized
portfolio
Business Model Alignment12
TCBAF Business Architecture Summit 2018 – Strategy Mapping Fundamentals
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� Business model allows stakeholders to clearly articulate what it wants to accomplish� Business architecture delivers views of business that can be targeted for
improvement, rearranged, redeployed, refined, or transformed
� Business architecture provides platform for planning, implementing, and operating the desired business model
Business Model Canvas13
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Business Model Canvas- Alexander Osterwalder
Strategy Mapping – Principles
1. Business strategies relate to a particular “community of interest”� Ground planning from diverse stakeholder perspective
2. Business strategies are created to respond to the external environment� Operational ecosystems come with specific opportunities and constraints
3. Business strategies are evaluated using value analysis� Strategy describes approach to preserve and increase value
Understand opportunities for differentiation
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TCBAF Business Architecture Summit 2018 – Strategy Mapping Fundamentals
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� Understand opportunities for differentiation
4. Business strategies leverage and build upon existing organizational capabilities� Need to understand “core” capabilities and which ones are considered
differentiators
� Validate strategy against current capability performance
Principles 1-3 represent what an organization might doPrinciple 4 represents what an organization can do
Ecosystem Model15
Organization
TCBAF Business Architecture Summit 2018 – Strategy Mapping Fundamentals
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StakeholderValue Item
Exchange
Capture and Categorize Ideas16
TCBAF Business Architecture Summit 2018 – Strategy Mapping Fundamentals
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Cross-Map Ideas to Capabilities & Value Streams17
TCBAF Business Architecture Summit 2018 – Strategy Mapping Fundamentals
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IdeaCapability Value Stream
Strategy Mapping Frameworks
Opportunity identification
� Ansoff Product/Market Grid
� SWOT Analysis
� Five Forces Model
Formal mapping techniques
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TCBAF Business Architecture Summit 2018 – Strategy Mapping Fundamentals
Copyright © 1998-2018 Sparx Services North America, All rights reserved
Formal mapping techniques
� Norton Kaplan Strategy Map
� Business Motivation Model (BMM)
� Hoshin Kanri
SWOT Analysis – Concept 19
TCBAF Business Architecture Summit 2018 – Strategy Mapping Fundamentals
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� Similar to Ansoff, but different perspectives (late 1960s)� Capability dimension – Strengths and Weaknesses
� Environment dimension – Opportunities and Threats
� May be too simple for complex markets
Assessment Map20
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Strategy Assessment21
TCBAF Business Architecture Summit 2018 – Strategy Mapping Fundamentals
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Assessment Summary22
TCBAF Business Architecture Summit 2018 – Strategy Mapping Fundamentals
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Norton and Kaplan Strategy Map – Example 23
TCBAF Business Architecture Summit 2018 – Strategy Mapping Fundamentals
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� Based on principle that most strategic failures are not about bad strategy, butpoor execution
� Driven by metrics-based balanced scorecards that are hierarchically rolled up
Balanced Scorecard – Concept 24
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Copyright © 1998-2018 Sparx Services North America, All rights reserved
� Strategic performance management framework
� Initially introduced by Kaplan and Norton in 1992
� Composed of direct and indirect metrics
Balanced Scorecard – Example 25
TCBAF Business Architecture Summit 2018 – Strategy Mapping Fundamentals
Copyright © 1998-2018 Sparx Services North America, All rights reserved Smartsheet - BSC Template
Identify Objectives for Transformation Initiative26
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Initiative Objective
Cross-Map Ideas to Business Strategies27
Strategy
TCBAF Business Architecture Summit 2018 – Strategy Mapping Fundamentals
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Cross-Map Strategy28
Target
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Target
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TCBAF Business Architecture Summit 2018 – Strategy Mapping Fundamentals
Copyright © 1998-2018 Sparx Services North America, All rights reserved
Source
Consolidate all lead and customer information
CRM Strategy
Plan targeted campaigns
Reduce operational activities of sales leader
Retire custom CRM-related applications
Understand lead sources and lifecycles
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Source
Consolidate all lead and customer information
CRM Strategy
Plan targeted campaigns
Reduce operational activities of sales leader
Retire custom CRM-related applications
Understand lead sources and lifecycles
Cu
sto
me
r R
ela
tio
nsh
ip M
an
ag
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Lea
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Capability Improvement Requirements29
TCBAF Business Architecture Summit 2018 – Strategy Mapping Fundamentals
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Heat Mapped Capability Model30
TCBAF Business Architecture Summit 2018 – Strategy Mapping Fundamentals
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Value Stream-Based Improvement31
TCBAF Business Architecture Summit 2018 – Strategy Mapping Fundamentals
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Business Motivation Model32
TCBAF Business Architecture Summit 2018 – Strategy Mapping Fundamentals
Copyright © 1998-2018 Sparx Services North America, All rights reservedOMG Business Motivation Model
(BMM) v1.3
Rationalized Business Strategy33
TCBAF Business Architecture Summit 2018 – Strategy Mapping Fundamentals
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Strategy Drives Towards Goals34
TCBAF Business Architecture Summit 2018 – Strategy Mapping Fundamentals
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Business Strategy – Business Unit Alignment35
TCBAF Business Architecture Summit 2018 – Strategy Mapping Fundamentals
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BU strategy
does not map
to enterprise
strategy
Enterprise goal with
related goal in each BU
� Possible synergy
Enterprise
goal with no
BU goals
Conclusions
� Establish common vocabulary with business architecture to provide clarity when discussing, evolving, and formulating business strategy
� Align strategic planning with business architecture to provide end-to-end transparency across enterprise � Provide foundation for assessment and trade-off analysis
Enable impact analysis on key business architecture perspectives
TCBAF Business Architecture Summit 2018 – Strategy Mapping Fundamentals
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� Enable impact analysis on key business architecture perspectives (value streams, capabilities, organizations, etc)
� Rationalize business strategies using business architecture modeling best practices� Improve understanding by business architecture community and
related stakeholders
� Enable integration of multi-level strategies to understand alignment and flow-down
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Q&A
Thanks for your attention
and participation!
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TCBAF Business Architecture Summit 2018 – Strategy Mapping Fundamentals
Copyright © 1998-2018 Sparx Services North America, All rights reserved
and participation!
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Additional Diagrams
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BIZBOK Strategy Metamodel39
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