what is the business motivation model (bmm) for business ... · november 15, 2013 mandalay bay...

November 15, 2013

Mandalay Bay Resort & Casino, Las Vegas, NV, USA

What Is the Business Motivation Model (BMM) for Business Strategy?

John [email protected]

Keri Anderson HealyBRCommunity.com

© Model Systems What is the BMM for Business Strategy? BBC Las Vegas, Nov 15 2013

About the Speakers

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John Hall is a Principal of Model Systems ([email protected]), based in London, UK, and has more than forty years experience in business and IT systems. John is a charter member of the Business Rules Group (BRG), and from 2001 to 2008 was co-organizer of the annual European Business Rules Conference.

John is also active in the OMG, as co-chair of the Regulatory Compliance SIG, chair of the BMM revision task force, and one of the OMG representatives on the W3C Rule Interchange Format (RIF) working group. He is a consultant to the EU ONTORULE project (http://ontorule-project.eu).

Keri Anderson Healy serves as Editor of BRCommunity.com and its flagship on-line publication, Business Rules Journal. Keri has served as Technical Editor on several major publications, including the original GUIDE white paper on Business Rules, the revision to the IEEE IDEF1X language standard, the BRG's Business Motivation Model paper, and, most recently, The Semantics of Business Vocabulary and Business Rules (SBVR), now an OMG standard.

Keri is a founding member and original Chair of the Business Rules Group (BRG). She has over forty years experience in developing shared data applications within an architected framework for both the private and public sectors. Keri is a Principal at Automated Reasoning Corporation.

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What is the BMM for Business Strategy? BBC Las Vegas, Nov 15 2013©BRCommunity.com

What is the BMM?

• Today:

‣ What is the BMM? What is it for? Where did it come from?

‣ What is the vocabulary of BMM?

‣ How does the BMM 9it with business rules? ...with business processes? ...with other aspects of a business model?

‣ How can the BMM be put to use? What can I do today??

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What is the BMM? What is it for?

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✦ the Zachman Framework

What

HowWhere

WhenWho

six basic engineering questions

”Motivation”: Ends & Means

✦ the Why? column

✦ the Business row

Why

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What is the BMM? What is it for?

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The Business Motivation Model ~ Business Governance in a Volatile World

the industry standard for structured business strategy, providing a scheme (or structure) for developing, communicating, and managing business plans in an organized manner

✦ identi9ies and de9ines the elements of business plans

✦ identi9ies factors that motivate the establishing of business plans

✦ indicates how all these elements and factors inter-‐relate

All elements of the Business Motivation Model are developed from a business perspective.

✦ A business model for the elements of the business plans is developed before system design or technical development is begun.

✦ Business plans become the foundation for IT, connecting system solutions =irmly to their business intent


Where did it come from?

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the OMG (Object Management Group) • standards organization .... consortium of computer-‐industry companies• both large and small ... a range of membership plans

BMM TimelineNov. 2000: BRG publishes the first version as "Organizing Business Plans: The Standard Model for Business Rule Motivation"

Jan. 2005: BRG publishes v1.1, renamed “The Business Motivation Model: Business Governance in a Volatile World”

Sep. 2005: OMG votes to accept the BMM as the subject of a RFC (BRG v1.2 published)• RFC is an OMG fast-path for adopting external standards

Dec. 2007: OMG approves BMM

Aug. 2008: OMG publishes BMM 1.0 (BRG publishes v1.3)

May 2010: OMG publishes BMM 1.1 (BRG publishes v1.4)

Today: OMG work on BMM 1.2 has been accepted; publication early in 2014.

the BRG • independent organization of experienced practitioners of business analysis and systems analysis• focused on formulating statements and supporting standards about the nature and structure of business rules

©BRCommunity.com

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the BMM document

Available at: http://www.omg.org/spec/BMM/1.1/

Available at: http://www.BusinessRulesGroup.org/bmm.shtml

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Is the BMM a methodology ?

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No!

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What is the BMM?

• Today:





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BMM vocabulary

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Two major areas of the Business Motivation Model:

✦ the Means and Endsof business plans

✦ the Influencers that shape the elements of the business plans & the Assessments made about the impacts of such Influencers on Ends and Means

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BMM vocabulary: Ends

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End concepts: “Being”

•Goal-‐ Desired Result that is a state or condition of the enterprise to be brought about or sustained through appropriate Means

•Objective-‐ Desired Result that is a speci=ic time-‐targeted, measurable, attainable target that an enterprise seeks to meet in order to achieve its Goals

•Vision-‐ End that is about the future state of the enterprise, without regard to how it is to be achieved

•Desired Result-‐ End that is a state or target that the enterprise intends to maintain or sustain


BMM vocabulary: Means

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Means concepts: “Doing”

•Mission-‐ Means that is the ongoing operational activity of an enterprise•Course of Action-‐ Means that is an approach or plan for con=iguring some aspect of the enterprise involving things, processes, locations, people, timing, or motivation undertaken to achieve Ends

•Strategy-‐ Course of Action that is an element of a plan devised through the science and art of business leadership exercised to ensure the most advantageous conditions

•Tactic-‐ Course of Action that is a device or expedient to be employed as part of a Strategy

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BMM vocabulary: Means

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Means concepts:•Mission-‐ Means that is the ongoing operational activity of an enterprise

•Course of Action-‐ Means that is an approach or plan for con=iguring some aspect of the enterprise involving things, processes, locations, people, timing, or motivation undertaken to achieve Ends

•Directive-‐ Means that de=ines or constrains some aspect of an enterprise

•Business Policy-‐ Directive that is concerned with directly controlling, in=luencing, or regulating the actions of an enterprise and the people in it and that is not directly enforceable

•Business Rule-‐ [Directive that is a] rule that is under business jurisdiction


BMM vocabulary: Influencers

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Influencer concepts:•Influencer-‐ Something that has the capability of producing an effect without apparent exertion of tangible force or direct exercise of command, and often without deliberate effort or intent

•External Influencer-‐ In=luencer that is outside an enterprise’s organizational boundaries that can impact its employment of Means or achievement of Ends

•Environment• Technology•Regulation•etc.

•Internal Influencer-‐ In=luencer from within an enterprise that can impact its employment of Means or achievement of Ends

• Infrastructure•Resource•etc.

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BMM vocabulary: Assessments

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Assessment concepts:•Assessment-‐ judgment that an In=luencer affects the employment of Means and/or the achievement of Ends

•Assessment uses Assessment

•Directive is motivated by Assessment

SWOT- typical categories of ‘Assessment’

•Strength•Weakness•Opportunity•Threat


BMM vocabulary

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The vocabulary

(concept model)

for

business

strategy

&

plans

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What is the BMM?

• Today:





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BMM & other aspects of the Business Model

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OMG integration

•Directive provides linkage to SBVR

•Business Process provides linkage to BPMN

•others (Organization, Asset/Liability) are placeholders for other, future OMG activity

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© Model Systems What is the BMM for Business Strategy? BBC Las Vegas, Nov 15 2013 19

Decision Model & Notation (DMN)

• DMN was accepted by the OMG in September 2013 and is in finalization (formal publication Q4 2014).

• It is an important addition to OMG specifications, providing a bridge between business rules and business processes. How might it affect BMM?

-‐ DMN is a speci9ication for a logical information model (OMG Platform Independent Model, or ‘PIM’).

-‐ Although it can support human decisions, it is intended for frequently-‐invoked types of decision (eligibility, routing through business processes, input validation …) that will be automated — part of the operational, IT-‐supported business.

-‐ It will not be explicit in BMM for the kinds of decisions made as outcomes of assessments, although DMN-‐based tools might be used in, say, analytical models that inform assessments.

-‐ It is likely that the version of BMM that follows formal publication of DMN will include Decision as a placeholder, as it does for Business Rule, Business Process, Organization, Asset and Liability.


What is the BMM?

• Today:





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Business Motivation Model

The Business Motivation Model

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Courses of Action Desired Results

Influencers Assessments

Operational Business

Internal

External

Changes

“A model for recording governance decisions”✦ Describing the in9luencers that affect your business✦ Documenting assessments of impact, options considered, decisions made — and why

✦ Referencing supporting detail — internal and external✦ Building up history of cumulative effects


Business Motivation Model

The Business Motivation Model

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Courses of Action Desired Results



Internal

External

Changes

“A model for connecting governance to operations”✦ In9luencers to assessments✦ Assessments to: desired results, business policies, & courses of action✦ Desired results to courses of action✦ Business policies & courses of action to the detail of operational business systems

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Business View of BMM


- Business Processes- Business Rules- Responsibilities- Resources- etc

References to

Means

Directives

Business Policy

Business Rule

Mission

Course of Action

Strategy

Tactic

Ends

Vision

Desired Result

Goal

Objective

Assessments

Assessment

Potential Impact

Risk

Potential Reward

Influencers

Internal

External

External

Internal

Sources of change that affect your

business

What you decided your business should

do

Assessment of impacts and

decisions on how to react

The states you want your business to be

in

Govern the Courses of Action


BMM Basics

•A business needs to monitor influencers that may affect it — and decide if, how, and when it will react.

•The effect of reactions is cumulative — each new one needs to take account of relevant earlier decisions.

•In many (most?) situations, a business can’t control the sources of its influencers:

– It can expect (or hope) to in9luence them.

– Sometimes the outcomes are not as expected (or hoped for). The business will need to change its courses of action — and may have to change its desired results.

•To deal with this, businesses need:

– Tools: the BMM provides a speci9ication for a support tool.

– Methodology: the BMM does not contain a methodology — but it does make some assumptions about dependencies between activities.

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Activities: Underlying Dependencies

Identify relevant Influencers and monitor them

Assign Organization Responsibilities

Assess Impact of Changes

Decide on Desired Results

Decide on Business Policies

Select Courses of Action

Develop Business Rules

Realize Courses of Action in Business Processes


Scope of a BMM

•A business may create two types of BMM:

– A long-‐running BMM to manage its ongoing operational business

– A limited-‐life BMM to manage a change in its operational business (merger, product/service diversi9ication, start-‐up in a new country …)

•Either of these may be scoped as:

– the entire enterprise.

– an organization unit in the enterprise.

– speci9ic issues (product/service quality, customer retention, performance against competitors …) rather than the entire operational business.

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BMM Core Concepts

Content of a BMM

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MeansEnds


Influencing Organization

Business Rule

+ categorization

BMM Placeholders

Asset

Liability

Organization Unit

Business Process

References to

References to


References to

• BMM entries are simple: name & text description.• They should not include operational detail — the BMM includes placeholders that refer to the affected parts of the operational business and to external in9luencing organizations.

• Core concepts may also reference supporting knowledge, such as internal studies, models, and external evidence to support assessments.


Ends

Categorization

Supports flexibility and extensibilityIn addition to the relationship ‘Objective quantifies Goal’– a Desired Result may be in multiple Desired Result Categories.– a Desired Result Category may categorize and be categorized by multiple other Desired Result Categories.

There are similar categorization structures for: Influencing Organization, Influencer, and Assessment.

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Desired Result

Goal

Objective

Vision

Desired Result CategoryCategorizes

Categorizes

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Courses of Action

•Courses of Action are decided as outcomes of Assessments. The rationale for choosing a given Course of Action over other options is documented as part of the Assessment (or the Assessment may be “no action needed”).

•Courses of Action state what changes are to be made to the operational business, especially roles and responsibilities, business processes, and use of assets and resources.The detail of the changes is managed and documented in the change management system of the operational business.

•Strategy and Tactic are the BMM’s categories of Course of Action.– Broadly, Strategies support Goals, and Tactics support Objectives, but there is no hard and fast distinction between them — businesses will make their own distinctions.

– The granularity changes in BMMs that are developed for organization units rather than the entire enterprise.


Strategies and Tactics: relationships

• A Course of Action may enable, or be enabled by, other Courses of Action. Generally:– Strategies enable Strategies.– Tactics enable Tactics.

• A Course of Action may include, or be included by, other Courses of Action. Generally:– Strategies include Strategies.– Tactics include Tactics.

• Tactics implement Strategies. – A given Tactic may participate in implementing more than one Strategy.

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Effects of Courses of Action

•Are we doing the right things?

– Are you achieving your desired results?

– Is changing the things you can control also in9luencing the things you can’t — in the ways you hoped for?

– Managing this well is what your BMM is for.

•Are we doing things right?– Are the Courses of Action implemented and operating as intended?– Below the BMM horizon.– Mainly handled in business process management and work9low management systems.

– Persistent operational problems may emerge as Internal In9luencers in the enterprise’s BMM.

– Some operational measurements may be aggregated for “actuals” to be compared with Objectives in the BMM.


When to make assessments?

•External Influencers cause changes

– The enterprise decides when they are signi9icant enough to require strategic assessment.

•Internal influencers require assessment

– Routine, e.g., annual budgeting, replacement of major assets

– Exceptional, e.g., operational performance problems, new product/services created

•The enterprise fails to meet some of its objectives

– Is this about “doing things right”? Some changes may be handled at operational level, rather than de9ining new Courses of Action.

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Actions and Outcomes

•Sometimes your Courses of Action will not achieve your Desired Results. – It may take some time to recognize this.

• It is not necessarily because your Assessment or selected Courses of Action were wrong. Change continues to occur:– Other organizations may react to what you are doing. (You are an in9luencing organization for them.)

– There may be more general changes in the economy, markets, technology, etc.

• Your BMM should support continuing activities of monitoring, assessing, and deciding on changes. But organizations usually cannot cope with instant change. You need– a plan for instituting the changes, ensuring that you are “doing things right” and a period of stability to see whether the changes are achieving the Desired Results.

– preferably, a ‘worst case’ contingency plan for Assessments with substantial Risks.

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Two ways to use a BMM

1. To provide a high-level vocabulary for Strategies, Tactics, Policies, Goals, Objectives ...

2. As a control and feedback mechanism

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BMMMonitor Influencers

Assess Impacts

Decide on means:

• Strategies and Tactics

• Business Policies

Define ends (desired results)

• Goals and Objectives

Compare actual and desired results

Re-assess


Business Processes

Roles and Responsibilities

Business Rules

Ends and Means

Actual Results

Internal Influencers

External Influencers

Assets and Resources

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Feedback and Control

•A special case of monitoring, assessing, and deciding on changes

•Within selected Goals define sequences of (sub) Goals — with short time intervals — that will indicate progress and compare actual values.– If progress is not satisfactory, revisit the relevant Assessment(s), Courses of Action, and (perhaps) Desired Results.

– Build remedial changes into the next roll-‐out of your plan.

•Possible difficulties:– Deciding on effective measures (not just easy to collect)– Ensuring that ‘actuals’ are collected – Persuading stakeholders that this really is continuous activity


BMM: Where is ‘motivation’?

•A BMM of a business supports a collaboration of stakeholders.

•Motivation is a shared commitment to reach the Goals agreed by consensus of the stakeholders:

– Objectives are measurable steps along the way towards Goals.

– Strategies and Tactics change the operational business in the expectation of reaching Objectives (so making progress towards Goals).

– Directives govern Strategies and Tactics.

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Consensus

•Some stakeholders will have different requirements and desires.

For example: In a production-‐related Goal– the sales force will want inexhaustible inventory of all products.– the production manager will want long production runs of individual products.

– the 9inance director will want minimum capital tied up in 9inished products and raw materials.

• All will recognize that the others’ requirements are reasonable (and essential to economic operation of the business), but will give them different weights.

You should have– a policy, and perhaps some rules, for getting to consensus.– an organizational role of arbitrator for getting to consensus.


Covert Desired Results

• Some Desired Results may be actual, but will not be stated explicitly.

This can happen at the enterprise level.– For example, a cynical view of some banks might be that that they don’t want money launderers (who make large deposits and don’t dispute fees) to be detected. The bank simply wants to demonstrate that it complies with anti-‐money-‐laundering regulations.

Or because there are differences in desired results between the organization and individuals who work there. – For example, some technical people want to keep up with the latest technology and techniques and this may shade their proposals for the technology the organization should adopt

•If this is so, they should be recognized in the Desired Results, albeit expressed in guarded language.

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Summary

A BMM supports management of change by

✦ Recording Assessments of impacts of In9luencers on a business.✦ Documenting consensus on what needs to be achieved as Desired Results.

✦ Documenting the Courses of Action that are intended to achieve the Desired Results, and their impact on the operational business.

✦ Capturing feedback on how effective the Courses of Action are (and opinions on why).

✦ Maintaining connections to experience of earlier Assessments of In9luencers that had similar or related impacts.

✦ Externalizing this knowledge so that it is available to all stakeholders.


Resources

✦ OMGwww.omg.org/spec/BMM/1.1/

BMM 1.2 accepted September 2013, in publication process

✦ Business Rules Groupwww.businessrulesgroup.org/bmm.shtml

✦ BR Communitywww.brcommunity.com ‘BMM Insider’ – new column area

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Questions ?

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what is the business motivation model (bmm) for business ... · november 15, 2013 mandalay bay...

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