March 23, 2023
BUILDING A STRATEGIC BUSINESS
ARCHITECTURE FUNCTION
Presented to: Penn State
COPYRIGHT © 2023 S2E TRANSFORMATION INC.
Discussion Topics
01
Building a Strategic Business Architecture Function
02
Building the Team
03
Starting and Scaling the Function
04
Best Practices and Critical Success Factors
COPYRIGHT © 2023 S2E TRANSFORMATION INC.
2
BUILDING A STRATEGIC BUSINESS
ARCHITECTURE FUNCTION
COPYRIGHT © 2023 S2E TRANSFORMATION INC.
3
Building a Strategic Business Architecture Function
THE STRATEGIC BUSINESS ARCHITECTURE FUNCTION
An organized collection of business architecture activities across an organization which together
achieves an intended mission and value proposition. This includes the knowledgebase and tools,
team and role structures, methods, governance processes, organizational alignment and the
overall management of the function.
WHY FORMALIZE?
LEADS TO
A formalized business
architecture practice
Ability to scale to meet the demand
for business architecture across
the organization
COPYRIGHT © 2023 S2E TRANSFORMATION INC.
4
Building a Strategic Business Architecture Function
BUSINESS
ARCHITECTURE
CONSUMERS
BUSINESS
ARCHITECTS
• Inform and
translate strategy
• Facilitate usage of
business
architecture
• Maintain
knowledgebase
Leverage business
architecture for
analysis, decisionmaking, and
communication
SUPPORTING BUSINESS ARCHITECTURE
KNOWLEDGEBASE AND PRACTICE
COPYRIGHT © 2023 S2E TRANSFORMATION INC.
5
Business Architecture Value to Other Teams
COPYRIGHT © 2023 S2E TRANSFORMATION INC.
6
What Is Business Architecture Success?
Business architecture success is reflected in how we act.

Embedded into the fabric – Business architecture is fully
embedded – it’s just the way the organization works
 Business architecture is fully integrated into strategy execution and
with other teams and frameworks
 Anyone and everyone can leverage the business architecture

Leveraged as a strategic discipline – Business architecture is
leveraged for strategic usage scenarios; business architects are
highly skilled, strategic resources and trusted advisors

Delivers on its intended value proposition – Business architecture
brings agility and advantage
COPYRIGHT © 2023 S2E TRANSFORMATION INC.
7
What Is Business Architecture Success?
Business architecture success is reflected in how we think.
FROM
TO
Silo Orientation
Enterprise Optimization and
Cross-Business Unit Collaboration
Narrow Focuses
Systemic, Big Picture Thinking
Internal Focus
(“Inside Out”)
Value and Customer / Stakeholder
Focus (“Outside In”)
Technology and
Solution Focus
Business Focus
Execution Focus,
Do Things
Slow Down to Speed Up, Do the
Right Things
COPYRIGHT © 2023 S2E TRANSFORMATION INC.
8
Business Architecture: Start With Why
HOW
WHY
The unique actions facilitated
with business architecture
The purpose for business
architecture – the reason
for which it exists in an
organization
[Value Proposition Definition]
[Mindset, Abilities, Methods]
WHY
HOW
WHAT
WHAT
The outcomes and outputs
business architecture offers
[Business Architecture Services
and Deliverables]
The Golden Circle concept by Simon Sinek
COPYRIGHT © 2023 S2E TRANSFORMATION INC.
9
Example Value Propositions

Improve strategy execution or
strategic alignment




Align business and technology

Enable technology decisionmaking
Translate a new significant strategy, set
of business direction, business model
change, or venture

Better initiative investment and
planning
Application portfolio rationalization,
management and modernization

Tech debt
Enable business or digital
transformation

Cloud strategy and migration

Leverage emerging technologies

Frequently: Shift from product/silo-centric
to customer-centric (external experience
+ internal enablement aspects)

Government-specific: Ensure consistent,
seamless and effective citizen
experience

Support simplification or cost
reduction efforts

Cross-silo and cross-team
coordination

Support repeatable acquisition
(or divestiture) assessment and
integration

Support risk or compliance
activities

And many more…
COPYRIGHT © 2023 S2E TRANSFORMATION INC.
10
Business Architecture Value Definition Example
Bridge strategy and execution
Effective Strategy Execution
Business Leaders, Transformation Leaders, Strategists
•
•
•
Rapid and comprehensive business impact assessment
End-to-end traceability from strategy through initiatives
Harmonized and more detailed view of the future state
• Time from Strategic Option Idea to
Viability Determination (reduce)
• % of All Initiatives Strategically Aligned
(increase)
Strategic Imperative: Increase Organizational Agility
Better Investment
Business Leaders, Portfolio Leaders, Planners
(do the right things for the
enterprise at the right time)
• % of Funded Initiatives Strategically
Aligned (increase)
• $ of Funded Initiatives with Duplicate
Spend (reduce)
• Aggregate heatmap views of strategies and initiatives along with
alignment analysis
Strategic Options Assessment
Strategy Translation
Strategic Alignment
Investment DecisionMaking Support
Strategic Imperative: Increase Organizational Agility
COPYRIGHT © 2023 S2E TRANSFORMATION INC.
11
Components of a Business Architecture Function
• Business architecture content and
blueprints management
• Governance
• Tools
• Practice planning
• Team and community development and
management
• Socialization and change management
• Value measurement
• Organizational alignment and integration
• Architecture methods and playbook
COPYRIGHT © 2023 S2E TRANSFORMATION INC.
12
BUILDING THE TEAM
COPYRIGHT © 2023 S2E TRANSFORMATION INC.
13
Business Architecture Team Considerations
COPYRIGHT © 2023 S2E TRANSFORMATION INC.
14
“Ideal” Business Architecture Team Structure
COPYRIGHT © 2023 S2E TRANSFORMATION INC.
15
Fortune 500 Insurance & Financial Services Co.
HOW THEY POSITIONED
HOW THEY STRUCTURED
Size
 Reports to SVP Transformation Office
 Value Prop: Inform, translate, architect, plan,
guide, and align business transformations
 Positioned within broader context of change
delivery: Unified Architecture Team + other
disciplines (though IT architecture reported to IT)
Centralized
Hybrid
Decentralized
 Business Architecture + Unified Architecture COE
within Transformation Office
 Cross-enterprise business architects in center and
business-unit business architects across company
 Leverage consultants for capacity
 Business Steering Committee (business unit
heads) + Unified Architecture Steering Committee
THE JOURNEY
• Initiated by CEO
• Started in Transformation Office and then staffed in
business units with intention over time
NOTABLE ACHIEVEMENTS
•
•
•
•
BREAKTHROUGHS
• CEO “good enterprise citizen” recognition
• Success on first transformation opened the door
CHALLENGES
Involved within and across all major transformations
Ability to work as unified change team
Strong partnerships with all leaders and teams
Customer experience and cross-enterprise orientation
• Sometimes still too distant from
business units
• Fluctuating level of buy-in for
centralization
COPYRIGHT © 2023 S2E TRANSFORMATION INC.
16
Healthcare Insurance Company (Big Healthcare System)
HOW THEY POSITIONED
HOW THEY STRUCTURED
Size
 Reports to Head of EA within IT
 Value Prop: Strategy execution, portfolio
management, and other major and minor initiatives
(e.g., transformations, joint ventures, cost
management, risk)
Centralized
Hybrid
Decentralized
 Business Architecture + Enterprise Architecture COE
within EA
 Business architects support specific areas of the
business and initiatives
THE JOURNEY
•
•
•
•
Initiated by VP, IT Enterprise Delivery (office of CIO)
Quick and wide traction (up to CEO and all leaders)
Later shifts to report to Head of EA
Model practice: business and strategic focus, delivers
value, principle-based, builds over time
BREAKTHROUGHS
• Leveraging prior relationships for business
engagement and buy-in
NOTABLE ACHIEVEMENTS
CHALLENGES
• Close relationship with strategy team and
institutionalization of architecture to inform and
translate strategy
• Involvement in breadth of strategic efforts
• Close relationship with business and IT architecture
• Finding new relevance after shift
to product management focus
• Tooling (due to shared tool with
IT architects)
COPYRIGHT © 2023 S2E TRANSFORMATION INC.
17
Fortune 500 Global Transportation Company
HOW THEY POSITIONED
HOW THEY STRUCTURED
Size
 Reports to varying leaders within
individual operating companies
 Value Prop: Inform decisions (impacts, scoping,
priorities, tradeoffs) and shape and coordinate
solutions and work within a SAFe context
Centralized
Hybrid
Decentralized
 Entirely virtual business architecture center of excellence and
community of practice that cross Operating Companies
THE JOURNEY
• Business architecture was established alongside SAFe
in a robust way
• Started with leaders and teams partnering across a few
operating companies; additional op cos came on later;
• Built the business architecture and practice together
BREAKTHROUGHS
• Business and IT leader buy-in
• Engineering culture helped with resonance
NOTABLE ACHIEVEMENTS
CHALLENGES
• Major buy-in from the top business and IT leadership to
the bottom
• Institutionalized as part of process and SAFe
• Leveraging a shared knowledgebase and methods
across operating company legal boundaries
• Often pulled into business SME and
solution details (contributes to size)
• Virtual CoE does not have
accountability
COPYRIGHT © 2023 S2E TRANSFORMATION INC.
18
Introducing Business Architecture: A Tale of Two Companies
One practice and
knowledgebase;
business architects
across business units
Business
architecture
started in one
business unit
Turning point:
business
architecture
leveraged for
portfolio
management
Turning point:
first business
architecturedriven enterprise
transformation
Top to bottom
enterprise
transformation
architecture-driven
and planned
Enterprise vision for
business architecture
(it’s a discipline)
Business unit focus for
business architecture
(it’s a technique)
Business units create
their own business
architecture practices
(13+ instances)
Efforts to create a
cohesive practice
Practice currently
disbanded
COPYRIGHT © 2023 S2E TRANSFORMATION INC.
19
STARTING AND SCALING THE
FUNCTION
COPYRIGHT © 2023 S2E TRANSFORMATION INC.
20
Roadmap to Establish and Mature a Practice
COPYRIGHT © 2023 S2E TRANSFORMATION INC.
21
For Existing Practices: Reflection Questions
Clear Value Proposition
Does business architecture have a simple, clear, and relevant value proposition for the organization
that is consistently understood among the team and the key stakeholders? Are a set of repeatable
business architecture services defined to deliver that value? Are we telling our story?
Business Sponsorship
Is the business sponsorship for business architecture sufficient and visible? Are we doing everything we
can to think, speak, and act business – and continuously delivering value?
Business Architecture Baseline
Is a cohesive business architecture baseline (capabilities, value streams, and cross-mapping) in
place for the scope of the organization? Was it built by / is it owned by a cross-functional group of
business representatives? Is it accessible to all relevant team members and stakeholders?
Team Building
Do we know the strengths of each team member? Are we leveraging those strengths with intention? Do
we have a role(s), curriculum, and career path clearly defined to help business architects develop?
Conditions For Success
Do business architects have the positioning (e.g., access to and credibility with business)
resources (e.g., education, tools), and support they need to be successful?
COPYRIGHT © 2023 S2E TRANSFORMATION INC.
22
BEST PRACTICES AND CRITICAL
SUCCESS FACTORS
COPYRIGHT © 2023 S2E TRANSFORMATION INC.
23
Wisdom From Practice Leaders
How To Succeed With Business Architecture: Wisdom From Business Architecture Practice Leaders
From 3-Part podcast series available at: https://bit.ly/3gmp6rU
COPYRIGHT © 2023 S2E TRANSFORMATION INC.
24
7 Habits of Highly Effective Practices
It’s all about value.
Deliver repeatable services.
“Remember that it’s all about value. We have to
be relevant, we have to resonate, and we have
to deliver value to the organization we serve. It’s
not about the models, the discipline, or the rigor
as much as it is the why of it and how we can
change our thinking.”
– Linda Finley
Tell your story.
Build support top-down and bottom-up.
Bring others along on the journey.
“Find a sponsor and help them articulate the
big why and then build a repeatable service to
help them deliver it. Then follow the bright
spots. Leverage each experience to make your
service better and articulate the
value to others.”
– Jake Walker
Don’t aim for perfection.
Remember: you’re not alone.
From the 3-Part podcast series: https://bit.ly/3gmp6rU
COPYRIGHT © 2023 S2E TRANSFORMATION INC.
25
Top Business Architecture Success Factors
Successful business architecture teams are business and value-oriented.
•
Follow the formula: (1) Define a clear value proposition for business
architecture (in your organization) and deliver it via repeatable
services (2) tell your story and build advocates (3) repeat
+ build the knowledgebase and practice just enough just in time
•
Build strong partnerships with other roles and teams
•
Obtain early executive business sponsorship for business
architecture, but if not feasible it can be earned by continually
delivering value
•
Practice business architecture as a strategic enterprise discipline
•
Make business architecture for everybody
COPYRIGHT © 2023 S2E TRANSFORMATION INC.
26
COPYRIGHT © 2023 S2E TRANSFORMATION INC.
27