Microsoft Motion Heat Mapping Tool The capabilities for a business in a given industry are largely the same. It is the people processes and IT applied to those capabilities that create differentiation and drive the key performance indicators for any business. It is up to the business to decide where there differentiation comes from. company in an industry is very similar for all companies in that industry. How it gets done, and where the value is in the business, is unique in every business, and having a stable view of the capabilities provides a lens on the business that allows us to isolate where the value is and where the real performance drivers are. So given that we now have many industryspecific capability templates, we can credibly sit down with customers and tell them that we have a map of their business architecture that is already more than 90% complete. The person delivering that message can, but does not have to be an expert in the customer business or the industry. What’s the Value of a Heat Map? Any business decision-maker that we talk with at a customer will likely own some or many of the capabilities on this map. Since a lot of the people we interact with are in IT, we now have detailed representations of capabilities consistent with the ITIL. Whoever we are talking with, we can start the conversation by explaining to them that we have 20 questions relating to: Business value Performance Maturity Interconnectedness Compliance and Governance Etc. These are very specific, straightforward questions that the owner of the capability should be able to at least provide a subjective answer to – and initially the answer choices are Yes/No and High/Medium/Low, so the customer should be able to answer the questions quickly. Why would the customer be interested to do this? What if they ask why they care? Because we can tell them that based on the answers to their questions, we can immediately generate a heat map for them comparing any two of the categories that relate to the 20 questions, that answer questions such as: What’s a Capability? A capability is an abstract statement of “what” work is being done in a certain area, such as “pay employees” – and “how” that is done in terms of people, process, and Technology, are implementations of that capability. How it gets done changes often in most companies, but what is getting done is comparatively far more stable. So because “what” is getting done at a What are the high value capabilities that are underperforming? What are the underperforming capabilities that would be the easiest to improve? What are the capabilities that are not very mature that have a high compliance requirement? What are the highly mature capabilities that are not very interconnected to other capabilities (to look to new opportunities to outsource, for instance) Why do I know and not know about my business architecture? When questions are not answered, the capabilities on the map still print out, but they print out grey, so in addition to getting very colorful and informative maps for where the questions are answered, where we don’t answer questions for the template, they print out grey – which is a very illustrative way to show what is known and not known, and that can be very helpful in informing the decisions related to what the next steps work should be. Why is it Credible for us to Do This? We already have industry templates, and then we ask some or all of the standard twenty questions for the capability(ies) the business decision maker owns – it is their answers to the questions that drive the heat maps. So while these will be easy questions for them to answer, they just don’t have a way or a set of tools like this Microsoft Motion Heat Mapping Tool 2 that enable them to generate this view of their business today. So this is highly credible and highly valuable. How do we Build the Maps The steps to fill out the map are very simple, and the tools we have today make the heat map generation very straightforward. 1) Get the heat mapping tool from http://msmotion 2) Ensure that you have the right industry template in the tool 3) Explain the exercise to the customer and identify what part(s) of the architecture they own so that you can focus the exercise on the small number of capabilities they own. Complete maps often have over 1200 capabilities, but most business decision makers own less than 20 capabilities in the overall map, which makes the heat mapping exercise something you can achieve in a reasonable period of time. HINT—Showing the customer some example heat maps, either pre-printed ones, or creating some sample ones on the fly with the tool will really help the customer grasp the idea of the heat map and why it can be valuable FIGURE 1A &1B – Figure 1 is the main sheet of the heat mapping tool. There are buttons at the top left of the sheet that will allow to change the level of detail you are showing in the map, from Level 1 to Level 6. Clicking on the buttons will illustrate the point well. There are also buttons on the top left of the tool that link to areas of the spreadsheet. Clicking on these buttons will take you directly to these areas within the tool. 4) Once you have focused on the part of the business the customer owns, explain the 20 questions and talk through which of the 20 questions the customer would like to answer as detailed on the Question Details worksheet tab. The questions are represented in the Capabilities with Properties tab columns AF to AX. Additional information can be assessed against the capabilities as outlined in columns AY to BP. HINT – Starting with just business value and performance is often a very good place to start so that the customer can get a sense of the questions that are being asked, and the kinds of answers that will be expected, so that they can then decide how many of the rest of the 20 questions they want to answer. FIGURE 2 – Figure 2 is a picture of some of the 20 questions. There is an Excel comment in each of the 20 questions that in most cases has a much longer description for each question in case people are not clear about the specific question. The questions are formatted like a survey and all answers can be accessed through a drop down box. FIGURE 3 – Because there are often multiple questions per segment, the tool aggregates the answers to the questions into a single score of 1-5. How those weightings are assigned are further off to the right of the file, and if you have questions about how to adjust those weightings, please contact motion@microsft.com HINT – If people want to make this simpler and just assign the values of 1-5 themselves, they can do this, and using the values in the part of the file reflected in FIGURE 3 is the place where they should do that. 5) Start to fill in the questions for the questions you have selected 6) Once through the questions, click on the options tab, and select the coloring you wish to see in the map, and also select the values you want to map 7) Then you need to select the colors you want to see the heat map represent, red-green, or more of a spectrum range. FIGURE 4 – This is pretty clear in terms of picking the colors, and then picking what values you want to include in the map. In terms of picking the two values, the heat map creates a box for each capability, and one of the values you select designates the color of the box itself, and the other option selected designates the color of the border around the box. See the examples in FIGURES 6-8 for a clearer sense of the boxes and the border colors. © 2006 Microsoft Corporation. All rights reserved. Microsoft is a registered trademark of Microsoft Corporation in the United States and other countries. This datasheet is for information purposes only. Microsoft makes no warranties, express or implied, in this summary. Microsoft Motion Heat Mapping Tool 3 HINT – While the red/green maps are often the most informative, some people are color-blind and red/green maps are not very helpful since those are the colors where color-blindness is most common HINT – It’s critical to be clear that the colors represented by the map are not always “good” or “bad” the point of the heat map is to compare two things, to inform where people should be focusing their attention. 8) Then you need to click on the sheet where the 20 questions information is stored. That sheet has to be “active” for the heat map to be activated 9) Selection the Outline Mapper button at the top of the sheet as reflected in FIGURE 5 and then select the “Build Map” button. Be sure to “Enable Macros” upon startup of the Excel Spreadsheet in order for the “Outline Mapper” button to be displayed in the Excel file menu. 10) This is the way to build heat maps. The remaining figures show heat maps from different parts of the business, and illustrate the kinds of heat maps. HINT – Noting again that grey boxes are boxes where questions were not answered. We cannot emphasize enough how valuable it is to customers to have a map of “what they know and don’t know” where the grey reflects what they don’t know. 11) Using the auto-filter capabilities on the 6 question categories will expose only those capabilities that meet the filter requirements. Using the auto-filter on 2+ question categories allows heat maps to be drawn on those specific areas. Note that you will have to uncheck the “Draw Rectangles For Hidden Rows” in the Options tab within the tool. For any other questions about Motion and the heat mapping tool, please contact motion@microsoft.com or go to http://msmotion © 2006 Microsoft Corporation. All rights reserved. Microsoft is a registered trademark of Microsoft Corporation in the United States and other countries. This datasheet is for information purposes only. Microsoft makes no warranties, express or implied, in this summary. Microsoft Motion Heat Mapping Tool 4 FIGURE 1A Buttons at the top left of the spreadsheet show specific levels of detail from 1-6. To expand or collapse groupings, click on the “+” or “-“ signs on the left side of the spreadsheet. FIGURE 1B Figure 1b below shows the buttons to click on to go to specific sections of the capability mapping spreadsheet. Analysis Summary is the section where the heat map values are complied. The Question Values section is the area in which you can adjust the numerical value associated with the answers to the questions. The Capabilities Assessment section is where the questions are answered. The Capabilities with Properties section is where the properties associated with the capabilities can be collected. © 2006 Microsoft Corporation. All rights reserved. Microsoft is a registered trademark of Microsoft Corporation in the United States and other countries. This datasheet is for information purposes only. Microsoft makes no warranties, express or implied, in this summary. Microsoft Motion Heat Mapping Tool 5 FIGURE 2 © 2006 Microsoft Corporation. All rights reserved. Microsoft is a registered trademark of Microsoft Corporation in the United States and other countries. This datasheet is for information purposes only. Microsoft makes no warranties, express or implied, in this summary. Microsoft Motion Heat Mapping Tool 6 FIGURE 3 © 2006 Microsoft Corporation. All rights reserved. Microsoft is a registered trademark of Microsoft Corporation in the United States and other countries. This datasheet is for information purposes only. Microsoft makes no warranties, express or implied, in this summary. Microsoft Motion Heat Mapping Tool 7 FIGURE 4 FIGURE 5 © 2006 Microsoft Corporation. All rights reserved. Microsoft is a registered trademark of Microsoft Corporation in the United States and other countries. This datasheet is for information purposes only. Microsoft makes no warranties, express or implied, in this summary. Microsoft Motion Heat Mapping Tool 8 Be sure to enable the Macros upon startup of the Excel Spreadsheet in order for the “Outline Mapper” button to be displayed in the menu. FIGURE 6 © 2006 Microsoft Corporation. All rights reserved. Microsoft is a registered trademark of Microsoft Corporation in the United States and other countries. This datasheet is for information purposes only. Microsoft makes no warranties, express or implied, in this summary. Microsoft Motion Heat Mapping Tool 9 FIGURE 7 FIGURE 8 © 2006 Microsoft Corporation. All rights reserved. Microsoft is a registered trademark of Microsoft Corporation in the United States and other countries. This datasheet is for information purposes only. Microsoft makes no warranties, express or implied, in this summary. Microsoft Motion Heat Mapping Tool 10 FIGURE 9 Below the capability listing is a list of typical interactions that a business will have with external influences such as customers, suppliers, logistic providers, regulatory agencies, etc. The listing also includes the major documents and interfaces that typically exist between the company and their external influencers. © 2006 Microsoft Corporation. All rights reserved. Microsoft is a registered trademark of Microsoft Corporation in the United States and other countries. This datasheet is for information purposes only. Microsoft makes no warranties, express or implied, in this summary. Microsoft Motion Heat Mapping Tool 11 READING THE HEAT MAPS **NOTE – It is Possible That the Heat Map Colors and Scoring Values in Your File Differ From Those Reflected in This File. To Find Out – Search on “Question Values” in the Capability File to Compare Scoring Models, and see the Options Sheet to View Map Color Selections** SCORING The Heat Maps can be generated by referring to a specific category or combining the score for 2 categories. The six major question categories are as follows: Business Value Maturity Regulatory Compliance Interconnectedness Performance Processes Scoring for all categories of the heat maps is driven by a set of very specific rules. Each answer to a question has a numerical value attached to it to determine its attention value. To find the rules, click on the “Question Values” Button on the top left of the tool or search on “Question Values” (it will not work if some of the capability groupings are still hidden – so make sure all groupings are expanded). For each set of questions, the values assigned to the answers are given a specific score. In the template maps, each question in each section carries as much weight as the next. All scoring in each category is based on a highest possible score of 100. In terms of what these scores translate to – the following table illustrates that breakdown: Score From Questions Score Heat Map Color Meaning Highly likely in need of attention, or to be worthy of your attention. 1 100-81 Red High business value is going to have a score of “1” because you want to give those things your attention. Capabilities that are immature processes and immature IT will also get a “1” Capabilities that have specific governance and compliance needs will also get a “1” If all of the interconnectedness questions have a “yes” or “high” answer, that score will be a “1” On the Performance segment – the more questions with a response of “low” will trend the score toward needing attention. Low performance would have a score of “1” to drive attention. Capabilities where there isn’t a documented process and there isn’t a standardized process for the same capability is also going to get a score of “1” as that is something that would be very likely to benefit from attention. © 2006 Microsoft Corporation. All rights reserved. Microsoft is a registered trademark of Microsoft Corporation in the United States and other countries. This datasheet is for information purposes only. Microsoft makes no warranties, express or implied, in this summary. Microsoft Motion Heat Mapping Tool 12 Score From Questions Score Heat Map Color Meaning Likely to need attention 80-61 2 Pink Medium attention 60-41 3 Yellow Unlikely to need attention 40-21 4 Light Green Highly unlikely in need of attention 20-1 No score (no answers) 5 Green Low business value will have a score of 4 or 5, and Pay Employees is a good example of a capability that would have this score in many businesses. High performance would have a score of 4 to 5 and represented by a green box. Unknown attention level - questions not answered 0 Unknown Looking specifically at the Business Value set of questions, there are three questions. Each question is weighted equally and each has a maximum value of 33 and a minimum value of 5. Two of the questions are “Yes/No” so by definition, any “Yes” response will at least drive the overall score to 43, which assures at least a value of “3” or yellow, or “medium level of attention.” The initial question that asks for a score from 1-5 where “1” represents high business value, and each of those responses offers a gradually declining score as the value rating goes down. The below examples illustrate how several different answers will drive different specific scores. © 2006 Microsoft Corporation. All rights reserved. Microsoft is a registered trademark of Microsoft Corporation in the United States and other countries. This datasheet is for information purposes only. Microsoft makes no warranties, express or implied, in this summary. Microsoft Motion Heat Mapping Tool 13 © 2006 Microsoft Corporation. All rights reserved. Microsoft is a registered trademark of Microsoft Corporation in the United States and other countries. This datasheet is for information purposes only. Microsoft makes no warranties, express or implied, in this summary. Microsoft Motion Heat Mapping Tool 14 After business value, the rest of the scoring is very straightforward: Maturity – two questions, “Low” response=50 points and a “High” response=1 point Compliance – 1 question, a “Yes” response=100 points Interconnectedness = four questions, “Yes” and “High” answers=25 points, 1 for Low/No Performance, 16 points for “high” answers, 1 point for each “low” answer Process, “No” answers are worth 50 points, and “Yes answers are 1 point BASIC GUIDELINES ON HOW TO INTERPRET SCORES Score Business Value 1 Highly likely in need of attention Red and pink results from the Business Value questions mean that the capability itself is either high value (which should mean that it has some direct or indirect impact on overall departmental or organizational performance) or differentiates the business from a brand/identify/competitive perspective, or simply that there is value in improving its performance. A capability such as Pay Employees is a good example of a capability that generally would not benefit from performance improvement as long as it is already compliant and meeting performance goals. “Ship Product” is a capability that might earn a red color for one business because: 1) The business can do it more reliably than their competition, so it differentiates from competition 2) Greater customer reliability also means more predictable costs, and that allows the business to make more money in this part of the business – and that is highly valuable. 3) While it is performing well, there is still room for performance improvement in either the people, the process, or the IT SO WHAT? So if the capability results in a red/pink score, that means it is probably worth more attention, but it also means that it is probably very important to understand what is causing the current performance level (is it people, or process, or IT, or some blend of those – before moving forward with a change – because if you don’t have a good understanding of how it is performing today – and you change it – and it is a high value capability – there is risk there. © 2006 Microsoft Corporation. All rights reserved. Microsoft is a registered trademark of Microsoft Corporation in the United States and other countries. This datasheet is for information purposes only. Microsoft makes no warranties, express or implied, in this summary. Microsoft Motion Heat Mapping Tool 15 Score 5 Highly unlikely in need of attention Business Value “Pay Employees” is a good example of a capability that would NOT be high value, that would not differentiate, and would not benefit from performance improvement. SO WHAT? In this case, the capability would not be worth attention to improve the performance of the business. That doesn’t mean you wouldn’t do any work in this area. What it means is that because it is a low value capability in the organization, you don’t “care” about it from a performance perspective even though it has to be there and has to perform at a certain level. So if you were to look at a project here, the only thing to look at would be reduction in cost or risk. You don’t care about who does it, or how it gets done, or what IT is supporting it. So if someone suggests a process change in Pay Employees, with only this information, a valid response would be “I don’t care about that unless it will reduce costs or risk.” Score 1 Highly likely in need of attention Maturity Red and pink results from the Maturity questions mean that the capability is using immature IT (e-mail, spreadsheets, and faxes vs. business application software, e.g.) to support the capability and that the capability itself is immature. When either IT or the capability is “High” and the other is “Low” that will result in a score of 3, or Yellow. SO WHAT? By itself, maturity information is informative, but is not very actionable. If you add business value, a high value capability that is immature, is one worthy of attention because you are probably going to want to add more predictability to the capability. Looking at interconnectedness, if the capability is highly interconnected to other capabilities, and is immature, that would be a risky capability to outsource until that capability becomes more stable unless it is expected that the outsourcer can make it more mature. Looking to process, if the capability is immature, and the process score is 1 (meaning that the processes are not documented and repeated capabilities do not share a common process), it will be a lot harder to get to process standardization here than if the capability were more mature. If you don’t have a mature predictable capability, it’s a lot harder and riskier to try to standardize process. And obviously if performance is an issue, where the capability is red for maturity, this is an opportunity and the focus on that would be guided by business value. Immature capabilities that have compliance requirements are likely to have a high degree of risk, and there would likely need to be analysis of that risk, and business value and performance could inform that focus. © 2006 Microsoft Corporation. All rights reserved. Microsoft is a registered trademark of Microsoft Corporation in the United States and other countries. This datasheet is for information purposes only. Microsoft makes no warranties, express or implied, in this summary. Microsoft Motion Heat Mapping Tool 16 Score 5 Highly unlikely in need of attention Maturity Green maturity means that the IT for the capability and the capability itself is very mature and predictable. SO WHAT? Again looking to interconnectedness here – a mature capability that has low interconnectedness, is likely to be a candidate for outsourcing, especially if the capability has a low business value score. Mature capabilities will be good candidates for process standardization. Score 1 Highly likely in need of attention Regulations/Compliance Red results from the Regulations/Compliance question mean that the capability is impacted by external regulations. This is as much an awareness value as anything. Looking across any of the other sets of questions, simply knowing that there are governance/compliance issues attached to the capability is a good flag to an organization, because it can influence decisions related to all of the other categories – business value, process, interconnectedness, maturity, and performance. SO WHAT? Red Process and red Compliance may mean that while there isn’t process standardization, getting to process standardization could reduce compliance cost and risk, though if the regulations are regional in nature, it is possible the process standardization is not possible – more attention would be needed to understand that. Red Business Value and Red Compliance are worthy of attention – to understand if there is any relationship between the two. Red Maturity and Red Compliance are a potential risk that should be addressed. 4 May require attention 5 Highly unlikely in need of attention Red Performance and Red Compliance could reveal that performance cannot be changed because of a specific regulation, though this is probably not common. Yellow Regulations/Compliance means that there may be regulatory compliance issues depending on the customer situation. Green Regulations/Compliance mean that the capability is not associated with any specific governance or compliance regulations. SO WHAT? In this case very little will be done differently if compliance is Green, but it is important to know that it is Green and to have that information on hand. © 2006 Microsoft Corporation. All rights reserved. Microsoft is a registered trademark of Microsoft Corporation in the United States and other countries. This datasheet is for information purposes only. Microsoft makes no warranties, express or implied, in this summary. Microsoft Motion Heat Mapping Tool 17 Score Unknown attention level - questions not answered Score 1 Highly likely in need of attention Regulations/Compliance For any of the areas, it can be extremely valuable to know that the questions have not been answered – whereby the heat map becomes a map of what is known and not known. In the case of compliance, it is especially important to be able to see what is not known, as this can be extremely useful in defining risk and for creating plans to get into compliance. Interconnectedness Red and pink results from the Interconnectedness questions mean that the capability is not a stand alone capability – that it interacts with other capabilities and some or all of it may already be outsourced. The more interconnected a capability is, the harder and riskier change can be if any of those connection points are impacted. SO WHAT? A highly interconnected capability is a lot harder to outsource because by definition it is hard to “carve” it out of the business. Pay Employees and Ship Products tend to be god examples of capabilities that have low interconnectedness, and that is part of why a lot of businesses outsource them. They also tend to be very mature and have low business value. Interconnectedness and compliance can intersect in that having a heavily interconnected capability could make it difficult to track compliance status and accountability. Interconnectedness and process comparisons are a bit like process and maturity. If a capability is heavily interconnected and an organization is looking to standardize processes, the more heavily interconnected processes could be harder to standardize. Interconnectedness and maturity comparisons could be a good way to identify ways in which to get the capability more mature – by reducing some of the interconnectedness complexity. Performance and interconnectedness are interesting to look at because if an organization wants to drive a performance change – knowing that the capability is heavily interconnected will inform the cost, complexity and risk associated with making a change. Knowing that there may be some domino effect complexities with changing a highly interconnected capability – this can and should be an input into change analysis. © 2006 Microsoft Corporation. All rights reserved. Microsoft is a registered trademark of Microsoft Corporation in the United States and other countries. This datasheet is for information purposes only. Microsoft makes no warranties, express or implied, in this summary. Microsoft Motion Heat Mapping Tool 18 Score 5 Highly unlikely in need of attention Interconnectedness Green Interconnectedness is simply an indication that the capability is very stand alone in what it does. In the language of services oriented architecture – this is a very loosely coupled capability by its very nature. And to the opposite of a red Interconnectedness, changing this capability is typically lower risk because there aren’t as many dependencies on it, so outsourcing it is easy, and looking to drive performance improvements are comparatively straightforward and low risk. SO WHAT? Green Interconnectedness, and green Maturity are very good candidates for outsourcing, especially if the Business Value is green or yellow. Green interconnectedness and compliance is not very actionable information. Green interconnectedness and red/pink Performance and/or Process are both helpful in that because these capabilities will be among the least messy to change – these may be a good place to start work. Score 1 Highly likely in need of attention Performance Red and pink results from the Performance questions mean that the capability has performance issues and that performance is not well understood and measured. SO WHAT? Red Performance and Red Business Value are two very good indicators for where focus and attention is needed. Red Performance and Red Maturity could suggest that if the capability could be made more mature – that could impact performance. The other side of that is that because it is so immature, it could be one of the harder capabilities to fix. Red Performance and Red Process may suggest that there is a need or an opportunity to look to a best practice process to apply to this poor performing capability. Red Performance and Red Interconnectedness may be an indication that the cost, risk, and complexity of changing the capability may be very high, such that unless the business value is also Red/Pink, this project may need to be postponed. Red Performance and Red Compliance is probably going to require more analysis to see if there is a relationship between the regulation and the performance. © 2006 Microsoft Corporation. All rights reserved. Microsoft is a registered trademark of Microsoft Corporation in the United States and other countries. This datasheet is for information purposes only. Microsoft makes no warranties, express or implied, in this summary. Microsoft Motion Heat Mapping Tool 19 Score 5 Highly unlikely in need of attention Performance Green Performance is a bit like Green Compliance in that it is a very helpful indicator that could be used to support a given decision to do something else. SO WHAT? Green Business Value, Green Performance, Green Interconnectedness, Green (or Red) Compliance, and Green Maturity are all good indicators that the capability should be considered a candidate for outsourcing. Green Performance and Red Process may be an indication that process standardization is a good idea, especially if Interconnectedness and Maturity are also Green. Score 1 Highly likely in need of attention Process Red and pink results from the Process questions mean that the capability does not have a documented process and that the capability is implemented multiple times across the organization in a non-standardized way. So in this case the Red/Pink values are indicators that more information is needed before change is planned. SO WHAT? Red Process and Green Business Value. If the capability has low business value, the organization shouldn’t really care about “how” it gets done from a process perspective – so mandating a standardized process for something like “Approve Time Sheets” should be an easy decision that results in lower cost of maintenance and greater predictability of the work. Red Process and Red Business Value is a different discussion. Here there should be an analysis of whether the processes that are different need to be different from a value and performance standpoint. Even once there has been analysis to suggest that process standardization is OK, the need to understand what causes it to be high value before the a specific change is planned. Red Process and Red Maturity and Interconnectedness have been discussed above in earlier segments. 5 Highly unlikely in need of attention Green Process is like many of the other values that are Green. It is helpful to know, and can inform the cost and risk of a decision. © 2006 Microsoft Corporation. All rights reserved. Microsoft is a registered trademark of Microsoft Corporation in the United States and other countries. This datasheet is for information purposes only. Microsoft makes no warranties, express or implied, in this summary.