1 Michael J. Novak ASQ Section 0511 Meeting, February 8, 2017Your Organization's Quality Management System is OK. Now What? Using Enterprise Architecture to Enhance Organizational Performance Michael J. Novak ASQ Section 0511 Meeting, February 8, 2017

2 Agenda Background: Moving Forward: Strategic ManagementEnterprise Engineering Quality Management Moving Forward: Enterprise Architecture

3 All models are wrong. Some are useful.A Note about Models All models are wrong. Some are useful. ‒ W. Edwards Deming

4 Concept RelationshipsStrategic Management Enterprise Engineering Quality Management Enterprise Architecture

5 Why Enterprise Architecture?

6 Strategic Management “Everything eventually focuses on the Purpose, Vision, and Strategic Objectives.”

7 Strategic Management Exists in Three DimensionsFocused on Purpose and Vision Strategic Focused on Mission Elements Operational Focused on Programs, Projects, and Day-to-day Tasks Tactical

8 Strategic, Operational, and Tactical “Building Blocks”Purpose Vision Strategic Objectives Mission Elements Operational Objectives Programs, Projects, Day-to-day Tasks Tactical Objectives Strategies Resources

9 Hierarchy of “Building Blocks” – Organizational OperationsPurpose Vision Mission Element Program/Project/Task

10 Hierarchy of “Building Blocks” – Organizational ObjectivesPurpose Vision Strategic Objective Operational Objective Tactical Objective

11 Enterprise Engineering“Everything eventually focuses on the Business Drivers.”

12 Enterprise Engineering“Building Blocks” of Enterprise Engineering Business Drivers Work Processes Work Systems Desired/Required Outputs/Results/Outcomes

13 Enterprise Engineering “Building Blocks”Business Drivers Customer Requirements Customer Concerns Customer Satisfaction Data Customer Engagement Data Customer Loyalty Data Work System Results Product Quality Indicators On-time Delivery After-sales Service Materials Regulatory Competencies

14 What’s A “Work System?” “Everything that affects the delivery of a product/service to the customer.” Internal factors External environment

15 What’s A “Work System?”

16 Work Processes – The Traditional ViewSupplier Input Process Output Customer Outcome CQM/OE (or Baldrige Examiner) Question: What’s missing in this diagram?

17 Work Processes – The Enterprise Engineering ViewBusiness Driver(s) Process Design Process Implementation Process Management Desired/ Required Results

18 What Drives Required/Desired Results?Customers Community Legal/ Regulatory Contract Specifications Standards Competitors Stockholders

19 Quality Management “Everything eventually focuses on the Quality of the Product/ Service.”

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22 Enterprise Architecture“Everything eventually focuses on Transforming the Organization.”

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24 Four Dimensions of Enterprise Architecture

25 Enterprise Architecture“Building Blocks” of Enterprise Architecture Business Architecture Data/Information/Knowledge Architecture Application Architecture Technology Architecture Architecture Roadmap

26 Why Enterprise Architecture?A more efficient business operation A more efficient IT operation Better return on existing investment, reduced risk for future investment Faster, simpler, and cheaper procurement

27 Business Architecture“The Business Architecture describes the product and/or service strategy, and the organizational, functional, process, information, and geographic aspects of the business environment.” ‒ Open Group Standard TOGAF® Version 9.1

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30 Data Architecture The Data Architecture describes the data (which sometimes also includes information and/or knowledge) needed to enable effective decision making in the Business Architecture domain.

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33 Application ArchitectureThe Application Architecture describes the applications (software programs) needed to process data, information, and knowledge to enable effective decision making in the Business Architecture domain.

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35 Technology ArchitectureThe Technology Architecture describes the technology (hardware) needed to (a) house applications that process data, information, and knowledge to enable effective decision making in the Business Architecture domain, and (b) transfer data, information, knowledge, and applications among stakeholders.

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37 Enterprise Architecture RoadmapBaseline Architecture Transition Architecture(s) (Architecture Roadmap) Target Architecture

38 Baseline vs. Target Architectures

39 So, how do you “do” Enterprise Architecture?First, you start with a “Framework” “A structure for content or process that can be used as a tool to structure thinking, ensuring consistency and completeness.” (Open Group Standard TOGAF® Version 9.1)

40 TOGAF Components

41 The TOGAF Architecture Development Method (ADM)The “core” of TOGAF The “how to” of developing an Enterprise Architecture

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43 Preliminary Phase The Preliminary Phase is about defining ‘‘where, what, why, who, and how we do architecture’’ in the enterprise concerned. The main aspects are as follows: Defining the enterprise Identifying key drivers and elements in the organizational context Defining the requirements for architecture work Defining the Architecture Principles that will inform any architecture work Defining the framework to be used Defining the relationships between management frameworks Evaluating the enterprise architecture maturity

44 Phase A: Architecture VisionArchitecture Vision is the initial phase of the Architecture Development Method (ADM). The steps in Phase A are as follows: Establish the architecture project Identify stakeholders, concerns, and business requirements Confirm and elaborate business goals, business drivers, and Evaluate business capabilities Assess readiness for business transformation Define scope Confirm and elaborate Architecture Principles, including business principles Develop Architecture Vision Define the Target Architecture value propositions and KPIs Identify the business transformation risks and mitigation activities Develop Statement of Architecture Work; secure approval

45 Phase H: Architecture Change ManagementPhase H looks at establishing procedures for managing change to the new architecture. The steps in Phase H are as follows: Establish value realization process Deploy monitoring tools Manage risks Provide analysis for architecture change management Develop change requirements to meet performance targets Manage governance process Activate the process to implement change

46 Requirements ManagementRequirements Management looks at the process of managing architecture requirements throughout the ADM. The steps in the Requirements Management phase are as follows: Identify/document requirements Baseline requirements Monitor baseline requirements Identify changed requirements and record priorities Assess impact of changed requirements on current phase; assess impact of changed requirements on previous phases; determine whether to implement change, or defer to later ADM cycle; issue new version of Requirements Impact Statement Implement requirements arising from Phase H Update the Requirements Repository with information relating to the changes requested, including stakeholder views affected Implement change in the current phase Assess and revise gap analysis for past phases

47 How does Enterprise Architecture align with …Strategic Management? Enterprise Engineering? Quality Management?

48 Enterprise Architecture Enterprise EngineeringEnterprise Architecture Enterprise Engineering Strategic Management Quality Management Time Orientation Future – Long-term Present and Short/ Medium-term Future Future – Short/Medium/ Long-term Future Scope Enterprise-wide Local or Enterprise-wide Scalable for different-sized organizations Yes Tailorable for different types of organizations Focus on Business Drivers High Moderate (High in Baldrige) Focus on Leadership Low Moderate Focus on Strategic Planning and Execution Moderate to High Focus on Customers Focus on Stakeholders Focus on Decision Making Focus on Knowledge, Information, and Data Focus on Technology Focus on Workforce Focus on Operations – Processes, Systems Focus on Project, Program, and Portfolio Management Focus on Risk Management Focus on Results/ Outcomes high Focus on Finance, Budgeting, Resource Allocation, ROI moderate Focus on Legal, Regulatory, and other Compliance Low to Moderate

49 Summary Review of: Introduction to:Strategic Management Enterprise Engineering Quality Management Introduction to: Enterprise Architecture How the four approaches compare with one another

50 Questions?

51 Thank you! Mike Novak Director of Quality EA Principals, Inc.