Realization of strategic intent through Business Architecture€¦ · The effective realization of...

Realization of strategic intent

through Business Architecture

Yet another year in the life of a Business Architecture Practice

David Stevens, Jason Towley and Troy Nelson

December 6, 2018

© Prime Therapeutics LLC CONFIDENTIAL1

The effective realization of strategic intent remains elusive for many companies.

This session will describe the latest developments in this journey at Prime

Therapeutics, sharing lessons learned in the pragmatic application of business

architecture to the overall investment cycle, from planning strategic initiatives to

managing project scope.

Session Overview


Our Story Map For Today

Introduction

To Prime

Prime

Context

Business

Architecture

at Prime

S2E

at Prime

(Re)focusing

on the ‘S’

in ‘S2E’

Top

Down

Empowered

Decision

Making

Initiative

Level

Planning

Initiative

Evaluation

Parsing

Initiatives

Next

Steps

Initiative

Mapping

Estimate

Classification

Investment

Evaluation

Investment

Evaluation

Progressive

Elaboration

Prime Therapeutics

5451-F © Prime Therapeutics LLC CONFIDENTIAL4

Our purpose

To help people get the medicine they

need to feel better and live well.


18Blue Plan owners

22Blue Plan clients

27+ millionmembers

$23.4 billiondrug spend managed (2017)

320 millionannual claim volume (2017)

3,000+employees

Prime Therapeutics: At a Glance


Our culture

Together

AccountableCandor

Purpose

Active


Our recognition

Inc. 5000 List of

Fastest Growing

Companies

2017

Top 100 Private

CompaniesMinneapolis/St.

Paul Business

Journal

2017

Fit Friendly

Award American

Heart Association

2016

Fast 50

CompaniesMinneapolis/St.

Paul Business Journal

2017

20 Companies to

WatchTwin Cities

Business Magazine

2017

CFO of the Year

HonoreeMinneapolis/St.

Paul Business

Journal

2017

Business Architecture at Prime


The Essence of Business Architecture

Source: Business Architecture Guild (Business Architecture Overview)

Source: Accelare (S2E Guide R3.1)

What it is

What it is

used for


Where Does Business Architecture Fit?

Business Planning

Information Technology

Program Management

Office

Business

Architecture

In the organization


Where Does Business Architecture Fit?

StrategicPlanning

Business Planning

Investment Planning

EnterpriseAnalysis

Planning Execution Closure

Project PhasesPre-Project Phases

Business

Architecture

In the lifecycle

Strategy to Execution at Prime


Capability Based Planning

(sort of)

Strategy to Execution Timeline

2013 2014 2015 2016 2017 2018

Enterprise Analysis

definition and piloting

Enterprise Analysis

extended to all projects

Enterprise Analysis

scaling and continuous improvement

Evolving to

Investment Planning


The Context of Enterprise Analysis

Changing the order of the box cars…

Proposed

Projects

Roadmap

Planning

High Level

Project

Estimate

Selected

Roadmap

Projects

Project

Initiation

& Planning

Project

Business

Case

Project

Execution

Business

Needs

Enterprise

Analysis

Business

Case

Selected

Business

Investments

Project

Packaging

Project

Initiation

& Planning

Project

Execution

From a business case is what is needed to justify a project budget

To a business case justifies investment realized through a project


Enterprise Analysis in a Nutshell

Business

Problem or

Opportunity

Business

Case

Business

Value

Proposition

Business

Solution

Approach

Business

Investment

Approach

Business

Need

Analysis

Business

Solution

Analysis

Business

Investment

AnalysisEnterprise

Analysis


EA is underpinned by Business Architecture


So What Happened to Enterprise Analysis?

StrategicPlanning

Business Planning

Investment Planning

EnterpriseAnalysis


Some aspects were

embedded in

Planning (in the project)

Some aspects were

embedded in

Investment Evaluation

Class 5 Project Definition/Estimates

• Investment Screening

• High Level Planning

• Detailed Planning

• Project Initiation


Refactoring the Investment Lifecycle

StrategicPlanning

Business Planning

Investment Planning

EnterpriseAnalysis


Initiation Planning Execution Warranty

Strategic

Planning

Business Planning

CapabilityPlanning

PortfolioPlanning

Project PhasesPre-Project Phases

Project Phases

Planning Phases

Investment Planning


The Cone of Uncertainty

Source: Construx


The Cone of Uncertainty: Estimate Classification

Class 5We know

little

Class 4We know enough

Class 3We know

a lot

Source: Construx

© Prime Therapeutics LLC CONFIDENTIAL

Positioning Class 5 in the Investment Lifecycle

Strategic

Planning

Business Planning

CapabilityPlanning

PortfolioPlanning

Capability

Analysis

Investment

Evaluation



Purpose

● To provide a Class 5 ROM ‘project definition’

● To position the investment request in ‘the portfolio’

- To allow investment screening by Funding Portfolio- To allow delivery planning by Capability Portfolio

Participants

● Business and Technology Architects

● Requestors and Capability Leads

● Portfolio Managers

Approach

● Highly structured but lite and lean

- Value streams with capability impacts- Capabilities mapped to organization and applications- Solution patterns with demand estimate patterns

● Weekly cadence with week(s) cycle time

Investment

Evaluation

SIPOC Diagram


Investment Evaluation in a Nutshell

RequestDevelopment

RequestIntake

CapabilityImpact

Assessment

Complexity& Risk

Assessment

Class 5/ROMSize &

DurationEstimation

Investment Request Evaluation Summary

Capability Impact

Assessment

(the Placemat)

Complexity

& Risk ScoringInvestment Request• Authored by Requestor

• Authored by Capability Lead

• Co-authored with Business Architect


Investment Evaluation became a bottleneck

• We needed a ROM before anything else could happen

• We needed a ROM more than we needed to clarify scope

Every Investment Request became a project

• Little or no capability level analysis

• Little time for Enterprise Analysis, even on complex requests

No further scope definition until project starts

• Scope and estimate ambiguity causing projects to drift

• Too many change requests too late

Box cars back in the wrong order…

Victims of our own success…


The Cone doesn’t narrow itself

Class 5 Class 4 Class 3

Requirements Requirements Requirements

Design Design Design

Work Work Work

Estimate Estimate Estimate

Better scope clarity = Better estimate

Better scope clarity

=

Better estimate

You must force the Cone to narrow

by removing sources of variability from your project

Source: Software Estimation, Steve McConnell


Progressive Elaboration in a nutshell

ClassificationScope

Document

Estimate

NameEstimate Purpose

Class 5Project

Brief

Rough Order of

Magnitude (ROM)

Investment

Screening

Class 4Project

Definition

Preliminary Budget

Estimate

Planning

Approval

Class 3Project

Deliverables

Budget Authorization

Estimate

Execution

Approval

Class 2Project

Deliverables

Revised Budget

Estimate

(only if needed)

Change

Approval

(only if needed)

Class 1Realized

Project

Final Budget

ActualClosure


Inserting Class 4 in the Investment Lifecycle

Investment

Request

Investment

Execution

Investment

Baseline

Progressive elaboration is a powerful tool to gain and increase

customer satisfaction for both Agile and Waterfall teams…

Waterfall

Agile

InvestmentEvaluation

Initiation Planning Execution

Class 5

Scope &

Estimate

Class 4

Scope &

Estimate

Class 3

Scope &

Estimate


One Size Does Not Fit All…

Scale of Change Summary of Characteristics Project Delivery Path

New or Modified

Business Capability

• Complex changes across multiple

organizations, processes and applications

• Deviates from existing and known solutions

and patterns

Pipe A

Localized Change

(within a Capability)

• Simple process, application, technology

platform or data changes

• Localized to a single context (department,

application, technology)

• Work is similar to work done in the past for

the given context

Pipe B

Standard Activity

(across Capabilities

or within a Capability)

• Repeatable, reoccurring business activities

that require coordination across organizations

• The work is known;

been there, done that

Pipe C

Recognizing the opportunity to refactor processes…


Raising Our Game on Change Management

A problem well-stated is half-solved…

Feature From To

Initiation

Refactoring

Somewhat mechanical

‘getting organized’ step

Lean team energized about

value proposition delivery

Knowledge

Transfer

Inconsistent and limited

(even no) handover

Collaborative cross-functional

progressive elaboration

Scope

Management

Inconsistent and unstructured

scope statements

Cohesive set of requirements and

design scope statements

Estimate

Management

Inherited and sometimes

dated ROM estimates

Recalibrated estimates based on

current scope definition

Project Definition

Approval

No meaningful approval

of scope baseline

Management approval from both

requesting and delivering aspects

Continuous

Improvement

Sporadic improvement with

limited or no feedback loops

Up and downstream feedback loops

informing improvement cadence

We are improving our downstream processes to deliver projects better

Now let’s look upstream to ensure we deliver the right projects

Over to Jason

(Re)focusing on the “S” in S2E

33

Goal: Leverage Capability Planning and Management as a foundation for planning our business and delivering on Prime’s strategy

Make it real

• Tie everything back to our Strategy.

Make it relevant

• Processes only “stick” when they are aligned to and embedded in how the business truly works.

Make it continuous

• Strategy, initiatives, & investments do not start and finish according to a fiscal calendar – nor should planning.

Make it flexible

• Things will change. We never know everything at the time we baseline the plan.

Business Planning: Move from Strategy to Execution

34

Strategy as a more robust & intentional basis for investment

planning

Strategy

FROMPLANNING & LINKING BOTTOM UP DEFINED PROJECTS

FOUNDATIONAL & ENABLING PROJECTS STRATEGIC PROJECTS

35

Strategy as a more robust & intentional basis for investment

planning

FOUNDATIONAL & ENABLING INITIATIVES STRATEGIC INITIATIVES

Strategy

Priorities & Objectives

Strategy

FROMPLANNING & LINKING BOTTOM UP DEFINED PROJECTS

TOPLANNING STRATEGICALLY DRIVEN TOP DOWN OUTCOMES


FOUNDATIONAL & ENABLING WORK STRATEGIC WORK

36

Executives removing themselves from project-level

governance to focus on top down strategic planning

Top Down Planning


Strategy


FOUNDATIONAL & ENABLING WORK STRATEGIC WORK

37

Govern & hold accountability for

outcomes

Top Down Planning: Executive Focus

Strategic Planning

Where do we need to focus?

What must be delivered?

How much and where do we invest?

What outcomes do we need to achieve?

Performance &

Incentive Goals

38

Management is empowered to prioritize and determine how

to achieve the expected outcomes.

Empowered Decision Making


Strategy



39

Initiative Owners define & justify action to achieve outcomes:• Business Need

• Success Measures

• Key Deliverables, Milestones, & Dependencies

Capability Owners manage a capability plan and determine how to most effectively utilize resources to deliver the initiatives

Capability team executes the work• Programs, Projects, Activities linked directly to

initiatives

Utilizing initiatives to facilitate higher level planning

According to priority based funding

allocations & outcome expectations

INITIATIVES

CAPABILITIES

Initiatives & resources assigned

to primary Capabilities

We are translating strategic intent into a set of initiatives

Now let’s look at how we analyze those initiatives

Over to Troy

Initiative Evaluation


• BizBok definition: an Initiative is “a course of action that is being executed or has been selected for execution”

• At Prime, an Initiative starts out as an un-funded proposal to meet an assigned outcome.

• Through a prioritization process, get selected, in part or in full, for “investment”

• The pre-Initiative activities are managed via Prime’s Strategic Planning Process; Business Architect receives the output of this process

2019: Initiatives to Investments

Initiatives drive a

structured process

leveraging

architectural models

to define the

changes required

Strategy Objectives Initiatives Investments

Projects & Programs


• Business Architecture’s role is to parse Initiatives into Architecture

Constructs

– Start with a clear understanding of the objectives and associated course of action

– Identify Value Streams impacted by the Initiative

– Value Streams show the impacted Capabilities

– At Prime, we identify the Organizations that fund, sponsor and/or are impacted by the Initiative

Initiative Decomposition


An example from a Lemonade stand*

*We actually have a Lemonade Stand scenario built out for use in interviewing Business Architect candidates, training new hires and

educating the company on the value of Business Architecture!

Strategy: Be the Low-

Cost Leader in the

Lemonade Stand

Industry

Objective: Reduce raw

materials costs 20%

Objective: Leverage

100% renewable

energy sources for

stand power

Initiative: Increase yield

per lemon

Initiative: Optimize

supply chain


Assess Capabilities and Value Streams

People: Limited Production staff

Limited skills / physical strength

Process: Manually slice lemons in half

Manually press and twist lemon on juicer

Manually mix juice with sweetener and water

Information: Lacking data on expected lemon juice yields

Receive

Order

Verify

Inventory

Value Stream: Order to Delivery

Fulfill

Order

Calculate

Amount

Due

Collect

Payment

Deliver

Order

L1:

Production

L2: Lemon

Squeezing

Technology: Manual lemon juicer

Trigger:

Customer

wants

lemonade

Result:

Customer

receives

lemonade


Initiative mapping will be used to further decompose Capability and Value

Stream changes across Programs, Projects and Sprints

Initiative Planning

Q1 Q2 Q3 Q4

S1

S2

S3

S4

Improve Collection of Yield Data

Project: RFI

Project: Technology Assessment

Project: Pilot

Project: Deploy

S1

S2

S3

S4

Continuous Improvement on

Manual Squeezing Process

Initiative: Improve Lemon Squeezing Capability

S1

S2

S3

S4

Staff Retraining Program

Program: Lemon Squeezing Technology Refresh


• Today, Prime leverages Waterfall for most program and project delivery

• Modernization of systems driving Prime to adopt more Agile methods

• Doesn’t change the fundamental need to align strategy and execution

• But, it is driving changes to how we think about

o Products – what are “products” and how are they delivered? (map to Value

Streams!)

o Funding of investments – align to Capabilities or Value Streams or both?

o Organizational design – departmental hierarchy grouped by function vs cross-

functional teams aligned to value streams and products

Perhaps we’ll have an update at the 2019 TCBAF Summit!

Looking Forward: Prime’s move to Agile


Our Story Map For Today

Introduction

To Prime

Prime

Context

Business

Architecture

at Prime

S2E

at Prime

(Re)focusing

on the ‘S’

in ‘S2E’

Top

Down

Empowered

Decision

Making

Initiative

Level

Planning

Initiative

Evaluation

Parsing

Initiatives

Next

Steps

Initiative

Mapping

Estimate

Classification

Investment

Evaluation

Investment

Evaluation

Progressive

Elaboration

Questions?

Our purpose:

To help people get the medicine they need

to feel better and live well

Thank you!

David Stevens

[email protected]

Jason Towley

[email protected]

Troy Nelson

[email protected]

51

David Stevens

David is an insightful and pragmatic thought leader in business architecture with over 15 years of consulting and management experience in both business and technology functions in the healthcare and manufacturing sectors.

He enjoys helping business leaders grasp business opportunities through the aspirational but realistic hybridization of industry best practices always focused at the business problem in hand.

David operates with an ego-less and boundary-less style and excels at bringing together sometimes disparate cross-functional parties in pursuit of a shared vision and common purpose.

He is English but has lived outside the UK for many years, with 15 years in Belgium and now happily at home here in the Twin Cities since moving here with 3M in 2001.

David currently works for a Prime Therapeutics, developing a business architecture practice and leveraging agile techniques to improve strategy-to-execution including investment planning, investment evaluation and effective execution of projects chartered to realize business value.

Jason Towley

Jason Towley is Sr. Director of Strategy and Business Planning for Prime Therapeutics. In this current role, he and his team have accountability for facilitating strategic and investment planning, materials for Board of Directors meetings, competitive intelligence, and investment governance.

Jason has been with Prime since 2004 and served in a variety of roles. Starting in IT, he led the establishment of Prime’s first IT Service Management processes based loosely on the ITIL framework. He later led the development and facilitation of Prime’s first system development and project management lifecycles. These early frameworks were foundations for maturing practices that continue at Prime today. Transitioning out of IT and into the Enterprise Project Management Office, Jason began focusing on and maturing Prime’s investment governance process. This evolved into a need to bring tighter alignment between investment planning, governance, and strategy and his current role leading the Strategy team.

Troy Nelson

Troy Nelson is Director of Business Architecture for Prime Therapeutics. He is a Certified Business Architect and a Member-at-Large member of the TCBAF Board. In his role at Prime, he leads a team of Business Architects defining the investments and changes required to support successful execution of company strategies and delivery of client requests. He is working across Prime’s Agile transformation and technology modernization initiatives, developing new business models and approaches to accelerate Prime’s delivery of value to its multiple constituents.

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