The Road to Business Agility Roger T Burlton

The Road to Business Agility Roger T. Burlton, P. Eng. , CMC +1 -604 -240 -5436 Roger. Burlton@processrenewal. com Twitter: @Roger. Burlton busagilitymanifesto. org processrenewal. com

Why Business Agility is the Issue of the Century R

Perpetual Change in Markets and Business and Operating Models 33 Self Managed Business Work Cells Digital Disintermediation of trusted transactions New resources RPA and AI Connectivity R www. processrenewal. com Collaborative and extended value chain One brand – Low capital Business Agility Manifesto I. 1 © Process Renewal Group 2018

Have you achieved business agility? Not unless … • You have minimized risk of catastrophic failure. • Your business managers can make simple course corrections without fear of prohibitive IT costs. • Your business managers have time to consider the big picture instead of always fighting fires. • Your customers get consistent business results through all channels. • You can demonstrate compliance anywhere, anytime, in real time. • You can manage complexity at scale as a matter of course. • Your core business processes are not impacted when you lose key workers. • You do not have to reinvent, re-specify and redesign core business knowledge from scratch on each new project. • You coordinate and disseminate core business knowledge to workers in a systematic way. • You know what your business rules are and you can change them easily. • Your corporate memory is automated and free of disconnects and gaps. • Your software release cycle is largely irrelevant to changes in business policy. https: //busagilitymanifesto. org/ © Process Renewal Group 2018 R&S www. processrenewal. com 44

What is True Business Agility S

66 Management Imperative Be able to make changes to the business in minimum time, with minimum cost, minimum disruption, and minimum risk of failure Business Agility Manifesto Management Imperatives © Process Renewal Group 2018 S www. processrenewal. com

What True Business Agility Is: Building the Business for Perpetual Anticipation and Response Need a perpetual ability to dynamically adapt with as little disruption as possible Dynamic Continuous Innovation Business (Re)invention Stable Business as Usual Continuous Improvement Stable Dynamic Products & Services Processes & Capabilities Perpetual Response to Change Business Agility Manifesto I. 3 R www. processrenewal. com © Process Renewal Group 2018 77

The Grounding: Value Creation and Value Chains R

Value Chain Collaboration Internally and Externally for Value Creation • Value Chain is a natural construct Organizational charts are arbitrary and temporal. • The marketplace determines the natural boundaries of a value chain. • The role and motivation of each stakeholder in a value chain must serve the best interests of the intended results. • Knowledge of the dependencies in a value chain enables prediction of the impacts of change. The role of each stakeholder in a value chain must serve the best interests of the entire value chain Business Agility Manifesto IV. 3 R www. processrenewal. com © Process Renewal Group 2018 99

Customer Experience and Digitalization Demand Business Integrity Customers are integral participants in our processes / We are optional for theirs Customer Activities Our Value Chain Activities Failure to consistently meet contractual obligations and commitments to external stakeholders is incompatible with a customer-centric focus. Business Agility Manifesto IX. 2 © Process Renewal Group 2018 S www. processrenewal. com 1010

However: We do not have the Business Knowledge and Our Dots do not Usually Connect Lack of business knowledge about the impact of change is extremely risky to value creation Knowledge of the dependencies in a value chain enables prediction of the impacts of change and provides natural criteria for scoping the boundaries of business design and software implementation initiatives. Business Agility Manifesto IV. 5 S www. processrenewal. com © Process Renewal Group 2018 1111

Business Architecture Can Help Business Agility R

1313 Business Architecture can Provide Agility capability The goal of Business Architecture is ultimately to identify nonredundant, reusable resources to be able to execute the business strategy. * According to Burlton, Ross, Zachman Separate the Stable from the Dynamic © Process Renewal Group 2018 R www. processrenewal. com

1414 Business architecture Stages and Artifacts Strategic Context Business Ecosystem Strategic Framing Business Design Business Capabilities Business Performance Business Change Priorities 2 Strategic Intent Strategic Requirements Business Processes Business Information 1 Change Roadmap Business Operations End to End Management Business Sustainability Continuous Improvement Business Results 3 Resource Requirements Resource Transformation © Process Renewal Group 2018 S www. processrenewal. com

1515 Business value: Who Cares and What’s Important to Stakeholders Exchanges Products, Services and Information Expectations What outcomes are important Experience Nature of interaction Inconsistent or conflicting business results impacting external stakeholders such as customers, regulators, etc. lowers credibility and creates potential legal liabilities. Business Agility Manifesto IX. 1 © Process Renewal Group 2018 S www. processrenewal. com

Business Agility Requires Assessment of Strategic Intent and the Ecosystem 1616 How should we deal with the external uncertainties? What are the risks? North Star SWOT STEEPL Alternative Business Scenarios © Process Renewal Group 2018 R www. processrenewal. com

1717 Isolate the Stable ‘Whats’ from the Dynamic ‘Hows’: Business concept Model Business Processes Business Information Business Performance Business Capabilities Business Rules © Process Renewal Group 2018 R www. processrenewal. com

Business Processes and Capabilities: A many to many association Business processes require shared capabilities delivered as shared services Processes Things we do, measure and manage Capabilities that must change to improve broken processes Processes impacted by any change in capability Capabilities Things we develop, implement and use © Process Renewal Group 2018 S www. processrenewal. com 1818

Isolate the Stable ‘Whats’ from the Dynamic ‘Hows’: measures of Value Follow the Process Hierarchy Tracing business performance using the process hierarchy Level 0 (Value Chain) Process KPIs Level 1 (Value Stream) Process KPIs Level 2 Process KPIs Process performance must be directly traceable to strategic performance objectives © Process Renewal Group 2018 S www. processrenewal. com 1919

2020 Prioritize Processes: Pain-Gain Triage (Nine Block) Invest in what’s both strategic and potentially broken 1. First Process Gain 2. Then Process Pain © Process Renewal Group 2018 R www. processrenewal. com

Assure INtegrity S

Re-Align All Internal motivations with those of outside Stakeholder’s I need to increase sales I need to reduce risk I need to keep my job I need to cut costs I need to optimize cash I need to deliver new products Customer Regulator I need you to provide the service you promised Staff Supplier Owner S www. processrenewal. com © Process Renewal Group 2018 2222

2323 Business Architecture: Alignment for Business Agility Be agile in each domain and in the connections among them © Process Renewal Group 2018 www. processrenewal. com

The Road Ahead R

There is a Lot of Knowledge that you must Have Access to Stakeholder Expectations Business Ecosystem Business Performance Strategic Framing Strategic Intent Business Transformation Business Processes Business Capabilities Business Decisions Business Information Transformation Roadmap Business Rules Business Sustainability Change Program Process-Centric Management Change Priorities Business Results Continuous Improvement © Process Renewal Group 2018 www. processrenewal. com 2525

You will need a trustworthy Knowledge Base and Professional Discipline to Make this Work © Process Renewal Group 2018 www. processrenewal. com 2626

2727 Investment in Business Agility • Investing in software alone is risky and does not assure sufficient ROI. • Scrap and rework is a pure waste of your scarcest resources. • Optimizing for silos sub-optimizes customer value. • Value creation and the Value Chain must be the change perspective. • Business knowledge management is essential © Process Renewal Group 2018 R www. processrenewal. com

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