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In Charge of
Technology Enabled
Business Transformation
(not in Control of…)
Doctor of Management (Ph.D) Mikkel H Brahm
Head of Personal Banking Architecture | Nordea
Mikkel H. Brahm
Doctor of Management (Ph.D)
Head of Personal Banking Architecture | Nordea
25+ years of experience in the fields of
Software Engineering and
Enterprise Architecture
Slides available at SlideShare
https://www.slideshare.net/mikkelbrahm
Doctoral (PhD) Thesis available at UH
Seeking to Control Enterprise with Architecture
the limits and value of an engineering approach
from the perspective of an Enterprise Architect
http://uhra.herts.ac.uk/handle/2299/17596
ENTERPRISE
Intentional process of doing and organizing business
emerging from enabling/constraining figurations of relationships always in flux
ARCHITECTURE
Guiding organisation of structuring structures
including human conventions and mechanisms
Enterprise Architecture
Some definitions to ensure that we understand each other
Architects design Architecture
Architecture is Structuring Structures1
We impose Structure to achieve Qualities
• e.g. Firmitas, Utilitas, Venustas
• ~ Durability, Usefulness, Beauty
Everything that is Formed has Architecture
• whether or not an architect designed it
• whether or not emergent = intentional
A Company may engage in one or more Businesses
A Business is a Purposeful Exchange of Valuables
(tangible or intangible; for profit or non-profit)
The Business takes place in an Ecosystem of
Players who play some role in the Context of the
Business e.g. customer and supplier, but also
market regulators, competitors, partners, media, ..
Enterprise can mean the Ecosystem, the Business, the Company, or the IT of either of these
Enterprise Architecture can mean the design of the (intentional) structure of the Enterprise,
or/and the (intentional and emergent) structuring of the Enterprise
1) Pierre Bourdieu, (1972) 2013, Outline of a Theory of Practice, Cambridge University Press 3
3. AS-IS MODEL 2. TO-BE MODEL
0. AS-IS REALITY 1. TO-BE REALITY
4. GAPS
• A
• B
• C
5. ROAD MAP
Best Practice (waterfall) Change Management
Rarely delivers the desired outcomes – but it is something you can do without having to think too much
4[E.g. TOGAF-ADM] Open Group, The (2013) TOGAF® Version 9.1. Zaltbommel: Van Haren Publishing.
Best Practice (waterfall) Change Management
Partial answer to why this approach rarely seem to deliver the desired outcomes
Pattern1: Context (= set of Forces) + Problem + Solution
Our models are (over) simplifications of the real world
=> they do not describe all the relevant forces and aspects of problem and solution
1. Gaps between as-is and to-be models are only a subset of gaps between realities
◦ dependencies exist between gaps, both gaps that show up in models and gaps that do not
2. Changes in our roadmap are only a subset of all the changes that occur e.g. do not cover
◦ changes emerging without intentional actions
◦ changes that result from the intentional moves of other players in the ecosystem
3. Some changes that are included in our roadmap, we are not always able to effect
◦ the people available to us may not have the required know how or technologies
◦ “wielding power” to influence, sell, motivate, etc. is difficult and complex
◦ the objective we are pursuing may not be realistic
1) Christopher Alexander, 1979, The Timeless Way of Building & 1977, A Pattern Language, Oxford University Press 5
Iterative approaches may better support learning and navigating along the way
Some games can be won or lost…
… others are more complex!
If we cannot control or predict particular outcomes,
how can we be in charge of technology enabled business transformation?
Practice
Being in Charge without being in Control
Source: Nordea, Annual Report 2017, nordea.com Investor Relations
Nordea simultaneously responds to change and innovate
Together, we lead the way, enabling dreams and everyday aspirations for a greater good
10
Nordea’s adoption of Scaled-Agile Framework
This is a work in progress – roughly 50 % of development is done in a SAFe (“inspired”) structure
• Nordea has split our total investment in change into 7 portfolios
• Initiatives in a portfolio are sized according to investment level (essential, large, full)
• Cadence is common 4*12 weeks PI’s (+3+1 weeks of vacation) = matches fiscal year & quarters
11Source: https://scaledagileframework.com/
Group Business Support
Nordea Organisation, simplified
No split between IT and Business, nor Silos; just Run the Business and Change the Business
Group
Functions
Personal Wholesale
RUN THE BANK
CHANGETHEBANK
Group Functions Portfolio
Personal Portfolio
Commercial Portfolio
Commercial &
Business
Wealth
Wealth Portfolio
Wholesale Portfolio
Change Execution Initiatives funded by Portfolios
Product (not Project) funding i.e. ≈ Stable Burn Rate
Architectural Governance is a mix of Investment Gates and
Solution Architects assigned into Hubs
Group Data Portfolio
Group Tech Portfolio
Group
Architecture
CEO
12
Budgets&Guidelines
Controlling&Reporting
Henry Mintzberg, 1983, Structure in Fives, Designing effective organizations, Prentice-Hall 13
Sunshine
14James C Scott, 1992, Domination and the Arts of Resistance, Yale University Press
Architecture Board
Includes COO’s and CIO
Head Architect
Dual competent
Solution Architect
Dual competent
Developer
Cross-functional teams
trust
trust
trust
15Steve Jobs: The people that really create the things … are both the thinker and doer in one person.
16
Strategic Steer
Architectural
Governance
Solution Design
Portfolio
Architecture
Governance &
Strategic
Architectural
Alignment
Delivery
Architectural
Alignment
Artefact &
Technology
Adoption and Use
WHAT
Enterprise & Portfolio Architecture supports management by providing
proposals for strategic steer of change execution initiatives and
architectural governance of the portfolio of change execution initiatives.
Solution Architecture leads build teams’ realization by participating in
day-today leadership of change execution initiatives and by transforming
strategy and target architectures into concrete solution High-Level
Designs and Low-Level Designs.
HOW (5 pillars of Architecture Governance)
Portfolio Architecture Governance
​Demonstrate that the annual and quarterly review of budget is optimally
balanced by taking into account strategic and architectural priorities, as well
as tactical and operational demands. Provide a level of assurance that
funded initiatives are architecturally aligned, that critical dependencies are
identified and reconciled. and that meaningful prioritization exists.
Strategic Architectural Alignment
Demonstrate that the highest cost and/or impact initiatives have optimal
architectural/strategy alignment and executive support
Delivery Architectural Alignment
Demonstrate that initiatives (whether project or agile-based) have their
scope/epics aligned with approved artefacts, and are consuming IT
standards
Technology Adoption and Use
Demonstrate that a minimal set of operationally supportable technology
standards exist to meet business objectives, that obsolescence and security
risks are mitigated through robust lifecycle management, and that cost,
complexity and risk is reduced through service-based delivery of technology.
Artefact Adoption and Use
Demonstrate that artefacts have been approved by accountable persons
from architecture, business, functions, technology, data, security and
risk/compliance areas/domains, in an inclusive manner.
Architecture
Embedded into Management and Solution Design
Gartner (G00450389): Enterprise Architecture Must Evolve Into an Internal Management Consultancy
Escalate to create transparency into the actual state of affairs
Portfolio Governance ensures that the Balancing Act is done by Senior Decision Makers
17
Ambition Level
Scope
Calendar Time / Deadline
Prioritization
Epics / Features
Architecture – Business Needs
Capacity
Budget / # of Teams
Consultants / Sourcing
Do you want to
invest more money in
change execution to
become more aligned?
Should we do more
enablers and fewer
business features
to become more
aligned?
Should we lower the
ambition level
to become more
aligned?
(or just wait)
2018 © Nordea Digital Company confidential
Customer Statement
“I will trust a bank that guides me when I
feel lost, comforts me when I feel
frustrated, and encourages me when I need
motivation.” Take my hand
and I will trust
you
Customer Statement
Enterprise Architect toolbox
Processes rarely work as intended, but tools can be useful if you know when & how to use them
19
Enterprise Architecture
(and Technology)
Tools, Methods, and
Understanding
Business and
Change Management
Tools, Methods, and
Understanding
Leadership and
Psychology
Tools, Methods, and
Understanding
• Find out what you are architecting
• Find out who is building / making decisions on what you are architecting
• Find out which questions the builders / decision-makers have
• E.g. how to build in a desirable, viable, feasible (, …) way
• Find out who also wants to supply such answers
• Find out which of these could be allies and which are opponents
• Do whatever it takes to provide the needed answers / guidance
Universal Architecture Method

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Being in Charge of but not in Control over Technology Enabled Business Transformation

  • 1. In Charge of Technology Enabled Business Transformation (not in Control of…) Doctor of Management (Ph.D) Mikkel H Brahm Head of Personal Banking Architecture | Nordea
  • 2. Mikkel H. Brahm Doctor of Management (Ph.D) Head of Personal Banking Architecture | Nordea 25+ years of experience in the fields of Software Engineering and Enterprise Architecture Slides available at SlideShare https://www.slideshare.net/mikkelbrahm Doctoral (PhD) Thesis available at UH Seeking to Control Enterprise with Architecture the limits and value of an engineering approach from the perspective of an Enterprise Architect http://uhra.herts.ac.uk/handle/2299/17596 ENTERPRISE Intentional process of doing and organizing business emerging from enabling/constraining figurations of relationships always in flux ARCHITECTURE Guiding organisation of structuring structures including human conventions and mechanisms
  • 3. Enterprise Architecture Some definitions to ensure that we understand each other Architects design Architecture Architecture is Structuring Structures1 We impose Structure to achieve Qualities • e.g. Firmitas, Utilitas, Venustas • ~ Durability, Usefulness, Beauty Everything that is Formed has Architecture • whether or not an architect designed it • whether or not emergent = intentional A Company may engage in one or more Businesses A Business is a Purposeful Exchange of Valuables (tangible or intangible; for profit or non-profit) The Business takes place in an Ecosystem of Players who play some role in the Context of the Business e.g. customer and supplier, but also market regulators, competitors, partners, media, .. Enterprise can mean the Ecosystem, the Business, the Company, or the IT of either of these Enterprise Architecture can mean the design of the (intentional) structure of the Enterprise, or/and the (intentional and emergent) structuring of the Enterprise 1) Pierre Bourdieu, (1972) 2013, Outline of a Theory of Practice, Cambridge University Press 3
  • 4. 3. AS-IS MODEL 2. TO-BE MODEL 0. AS-IS REALITY 1. TO-BE REALITY 4. GAPS • A • B • C 5. ROAD MAP Best Practice (waterfall) Change Management Rarely delivers the desired outcomes – but it is something you can do without having to think too much 4[E.g. TOGAF-ADM] Open Group, The (2013) TOGAF® Version 9.1. Zaltbommel: Van Haren Publishing.
  • 5. Best Practice (waterfall) Change Management Partial answer to why this approach rarely seem to deliver the desired outcomes Pattern1: Context (= set of Forces) + Problem + Solution Our models are (over) simplifications of the real world => they do not describe all the relevant forces and aspects of problem and solution 1. Gaps between as-is and to-be models are only a subset of gaps between realities ◦ dependencies exist between gaps, both gaps that show up in models and gaps that do not 2. Changes in our roadmap are only a subset of all the changes that occur e.g. do not cover ◦ changes emerging without intentional actions ◦ changes that result from the intentional moves of other players in the ecosystem 3. Some changes that are included in our roadmap, we are not always able to effect ◦ the people available to us may not have the required know how or technologies ◦ “wielding power” to influence, sell, motivate, etc. is difficult and complex ◦ the objective we are pursuing may not be realistic 1) Christopher Alexander, 1979, The Timeless Way of Building & 1977, A Pattern Language, Oxford University Press 5 Iterative approaches may better support learning and navigating along the way
  • 6. Some games can be won or lost…
  • 7. … others are more complex!
  • 8. If we cannot control or predict particular outcomes, how can we be in charge of technology enabled business transformation?
  • 9. Practice Being in Charge without being in Control
  • 10. Source: Nordea, Annual Report 2017, nordea.com Investor Relations Nordea simultaneously responds to change and innovate Together, we lead the way, enabling dreams and everyday aspirations for a greater good 10
  • 11. Nordea’s adoption of Scaled-Agile Framework This is a work in progress – roughly 50 % of development is done in a SAFe (“inspired”) structure • Nordea has split our total investment in change into 7 portfolios • Initiatives in a portfolio are sized according to investment level (essential, large, full) • Cadence is common 4*12 weeks PI’s (+3+1 weeks of vacation) = matches fiscal year & quarters 11Source: https://scaledagileframework.com/
  • 12. Group Business Support Nordea Organisation, simplified No split between IT and Business, nor Silos; just Run the Business and Change the Business Group Functions Personal Wholesale RUN THE BANK CHANGETHEBANK Group Functions Portfolio Personal Portfolio Commercial Portfolio Commercial & Business Wealth Wealth Portfolio Wholesale Portfolio Change Execution Initiatives funded by Portfolios Product (not Project) funding i.e. ≈ Stable Burn Rate Architectural Governance is a mix of Investment Gates and Solution Architects assigned into Hubs Group Data Portfolio Group Tech Portfolio Group Architecture CEO 12
  • 13. Budgets&Guidelines Controlling&Reporting Henry Mintzberg, 1983, Structure in Fives, Designing effective organizations, Prentice-Hall 13
  • 14. Sunshine 14James C Scott, 1992, Domination and the Arts of Resistance, Yale University Press
  • 15. Architecture Board Includes COO’s and CIO Head Architect Dual competent Solution Architect Dual competent Developer Cross-functional teams trust trust trust 15Steve Jobs: The people that really create the things … are both the thinker and doer in one person.
  • 16. 16 Strategic Steer Architectural Governance Solution Design Portfolio Architecture Governance & Strategic Architectural Alignment Delivery Architectural Alignment Artefact & Technology Adoption and Use WHAT Enterprise & Portfolio Architecture supports management by providing proposals for strategic steer of change execution initiatives and architectural governance of the portfolio of change execution initiatives. Solution Architecture leads build teams’ realization by participating in day-today leadership of change execution initiatives and by transforming strategy and target architectures into concrete solution High-Level Designs and Low-Level Designs. HOW (5 pillars of Architecture Governance) Portfolio Architecture Governance ​Demonstrate that the annual and quarterly review of budget is optimally balanced by taking into account strategic and architectural priorities, as well as tactical and operational demands. Provide a level of assurance that funded initiatives are architecturally aligned, that critical dependencies are identified and reconciled. and that meaningful prioritization exists. Strategic Architectural Alignment Demonstrate that the highest cost and/or impact initiatives have optimal architectural/strategy alignment and executive support Delivery Architectural Alignment Demonstrate that initiatives (whether project or agile-based) have their scope/epics aligned with approved artefacts, and are consuming IT standards Technology Adoption and Use Demonstrate that a minimal set of operationally supportable technology standards exist to meet business objectives, that obsolescence and security risks are mitigated through robust lifecycle management, and that cost, complexity and risk is reduced through service-based delivery of technology. Artefact Adoption and Use Demonstrate that artefacts have been approved by accountable persons from architecture, business, functions, technology, data, security and risk/compliance areas/domains, in an inclusive manner. Architecture Embedded into Management and Solution Design Gartner (G00450389): Enterprise Architecture Must Evolve Into an Internal Management Consultancy
  • 17. Escalate to create transparency into the actual state of affairs Portfolio Governance ensures that the Balancing Act is done by Senior Decision Makers 17 Ambition Level Scope Calendar Time / Deadline Prioritization Epics / Features Architecture – Business Needs Capacity Budget / # of Teams Consultants / Sourcing Do you want to invest more money in change execution to become more aligned? Should we do more enablers and fewer business features to become more aligned? Should we lower the ambition level to become more aligned? (or just wait)
  • 18. 2018 © Nordea Digital Company confidential Customer Statement “I will trust a bank that guides me when I feel lost, comforts me when I feel frustrated, and encourages me when I need motivation.” Take my hand and I will trust you Customer Statement
  • 19. Enterprise Architect toolbox Processes rarely work as intended, but tools can be useful if you know when & how to use them 19 Enterprise Architecture (and Technology) Tools, Methods, and Understanding Business and Change Management Tools, Methods, and Understanding Leadership and Psychology Tools, Methods, and Understanding
  • 20. • Find out what you are architecting • Find out who is building / making decisions on what you are architecting • Find out which questions the builders / decision-makers have • E.g. how to build in a desirable, viable, feasible (, …) way • Find out who also wants to supply such answers • Find out which of these could be allies and which are opponents • Do whatever it takes to provide the needed answers / guidance Universal Architecture Method