Organisations and enterprises

Many words have been written and many said about organisations and enterprises, and the extent to which they are the same or different.  This article is prompted by a current “debate” over the meaning of “enterprise” and a suggestion that “enterprise” is distinctly different to “organisation”.  I am not so sure about that!

So, this is part of my “normal process” of “thinking out loud” – an approach where I:

  • outline what I currently “think”
  • refine what I think in order to express it in a clear and coherent manner
  • expect to be challenged
  • am offered the opportunity to refine my thinking, based on the questions and challenges arising from articulating my thinking

For me, this is the way I have become better at understanding, articulating and practicing the disciplines of architecting enterprises, governing enterprises, becoming more systems savvy, and of recent times, becoming more brain savvy.

Organisations

In using this term, it is important to distinguish between organisations and legal entities.  Oftentimes, when I think of organisation, I am thinking of:

  • a commercial firm
  • a government department
  • a community entity

This pertains more to the legal status of the entity and to the basis upon which it is constituted, managed and governed.

In this discussion, whilst it includes all of these types of organisations, I am including other forms of organisation, including:

  • an organisational unit
  • a cross-functional team
  • a multi-organisational operation
  • a community
  • a region
  • an industry
  • a profession
  • a project
  • a program

Each of these groups have:

  • membership
  • bounds
  • shared interest and purpose
  • varying degrees of linkage and relationship
  • an existence for some period of time
  • some form of means by which they are “organised”

So to the definition of organisation

an organised group of people with a common purpose

Enterprise

A number of blogs have been written on this topic already, including:

In summary …

an enterprise is most easily understood as an undertaking or an endeavour

Context

Given a systems view of organisations and enterprises, it should not be surprising that there is a need to consider system context, including:

  • the market or environment in which the organisation, enterprise or system exists and operates
  • the economy, community and society within which the market and environment exists

Any organisation, enterprise or system will need to:

  • give attention to entities in these broader contexts
  • understand the relationships that exist or should exist, both
    • across the organisation / enterprise / system boundary, and
    • amongst entities in the external environment
  • adapt the structure and behaviour of the enterprise, both
    • in light of changes in the external environment, or
    • in order to shape and prompt changes in the external environment

These activities are evidenced as an inherent part of organisations through:

  • governance processes (attending to accountability and strategy)
  • intelligence processes (informing the organisation of activity in the external environment)
  • marketing processes (understanding changes and opportunities in the external environment)
  • supplier, partner, customer / consumer, regulator and other stakeholder relationship management processes (providing direct knowledge and understanding of key external relationships)

These represent the means by which organisations attend to life-beyond-the-organisation and about which organisations develop enterprise models to enable them to understand, architect and realise their intended business models and operating models.

In this respect, the business model is the key artefact which prompts understanding and articulation of the balance required between internal and external affairs (so to speak).  Further articles outlining key thinking and practices in this area, include:

Enterprise concept and views

There are a range of benefits that I see arise from taking an enterprise view of an organisation, including:

  • organisation tends to prompt a people / role based view
  • enterprise encourages a purpose and process view
  • enterprise allows the balancing of multiple views including:
    • strategic views
    • process views
    • role / responsibility views
    • information views
    • facilities / location views
    • service views (composite of internal and external sourcing)
    • integration views
  • enterprise provides an abstraction from the connection to organisation and the threat that arises in considering organisational change
  • enterprise enables views that are agnostic to a particular dimension

For me, there is incredible value in taking an enterprise view, but none of the value derives from viewing organisation and enterprise as distinctly different.  Perhaps the following is a reasonable way to summarise?

Enterprise is an abstraction that is orthogonal to organisation

 

Bringing it all together

STORYB~1.JPGOver the last two and a half years, I have written and published over 50 articles which relate to architecting and transforming enterprises.  These have been published on LinkedIn and an index of all articles maintained in the article “Architecting Enterprises“.

About twelve months ago, I started copying these articles across to this blog site.  As I did that, I published a post on LinkedIn which proved to receive far greater views than many of my original articles.  In parallel, Interface Consultants started holding public Lunch’n’nLearn events where I was using content from these articles in sessions on:

  • Curious about being more brain and systems savvy
  • Bootstrapping a systems savvy enterprise
  • Cultivating capabilities
  • Diversity, coherence and assurance (for Boards)

Reflecting on the development of these sessions and on feedback from these sessions, it became evident to me that participants in these sessions and readers of this blog need a sense of:

  • the whole story and how the fifty (or more) articles fit together
  • how to find the pieces of the puzzle that are missing without need to read all the pieces that they already know and understand

This is how the process of “bringing it all together” started.  It has led to:

  • Restructuring the blog site
  • Creating a top level menu item “Bringing it all together
  • Adding the first four items under this menu
  • Linking these pages to:
    • other content in the various articles
    • other reference materials relevant to the topic
    • examples of outputs mentioned in the articles

Further content is being developed and will be released.  I hope this becomes an increasingly convenient, easy-to-use, valuable resource for those involved in transforming their enterprises and looking to advance their mastery of this highly rewarding activity.

Feedback on the articles and on this initiative to “bring it all together” is always welcome.  Please feel free to post comments or to contact Interface Consultants or Peter Murchland if you wish to respond privately.  These articles are also used to prompt discussion in the related LinkedIn Group – Enterprise Modeling

 

Enterprise design mantras

mantra-om-mani-padme-hum_zkPVd0Lu_L

What mantras do you find underpin your AE practices? Are there particular principles or guidelines that you remind yourself about or that you share with others in your team and amongst your stakeholder community?

Here are some of the mantras that I find myself repeating …

  • Keep the end in mind
  • Business process not system process
  • Continuum between autonomy and control
  • What is the system-of-interest?
  • What constitutes success?

Keep the end in mind

Many of us are trained to determine our objective and then explore the strategies for achieving the objective – determining the ends and exploring the means. So what is important about this mantra? Isn’t it a natural part of our daily practices?

Many years (actually decades) ago, I read “I’m right, you’re wrong” by Edward de Bono. I gained a number of insights from that book, but the most frequently referenced insight was:

creative ideas are logical in hindsight

This insight is important to solving problems and to learning. Once solved or learned, the problem seems simple. This can also mean that a solution can be more easily understood by working backwards rather than forwards.

This simplicity is often overlooked when we present the problem and solution to stakeholders. It all seems logical to us but can seem puzzling and difficult to our audience. This applies in many different scenarios, including many of the business improvement or business transformation undertakings I have encountered.

It was recently brought to mind and reinforced by a colleague sharing that they read books backwards – last chapter first. Another practice is that of describing what I aim for meeting participants to have gained at the end of the meeting – shared understanding, agreed actions, etc. This often helps construct are more effective sequencing of the agenda.

clarity in relation to goals, deliverables, and outcomes

has proven to be a valuable practice – keeping the output and outcome in mind as we design and plan our way forward.

Business process not system process

I have lost count of the times that I have encountered IT projects where the focus is on the IT system and not on the business objectives which the IT system should be designed to support.

Indicators of an inappropriate focus include:

  • A project scope expressed in system function terms rather than business terms
  • A “process” diagram which is focused on the interactions with the system and the “system processes” without attending to the “business processes and practices”
  • A project with system deliverables and few or no business deliverables
  • A project which regards business change as “out of scope”

Practices which have proven to prompt greater clarity and quality include distinguishing between:

  • business objectives, system objectives and project objectives
  • business scope, system scope and project scope
  • business processes and system processes

The first two areas typically apply in the initiation stages of a project, where as the third arises at various stages in the project, and hence is the distinction that is more frequently made (and needed).

Balancing autonomy and control

For any situation where alternate processes or means are being considered to achieve an agreed objective, consideration often needs to be given to the nature of the circumstances and the type of action or response that might be needed.

For example, if the situation entails lots of variability and unknowns, then it is likely to need a person to determine the nature of the situation as well as the appropriate action. Significant autonomy should be given to a person to determine and take the appropriate action. This is typical of situations that are described as being “knowledge work”.

There are other situations where it is possible or it is necessary to be prescriptive and for specific consistent action to occur. Situations such as ensuring consistent counting rules are applied to an information set, or where financial transactions need to be processed in a consistent manner. These situations call for appropriate control to be applied, with no need for flexibility or autonomy.

Redesign of processes requires careful consideration to the areas where autonomy versus control is required and how to design a process to achieve the appropriate balance and combination of these responses.

Be clear about the system-of-interest

Enterprises are complex. Enterprises can be viewed from the perspective of being a system-of-systems.

If one considers a system-of-systems, we have the situation where:

  • the whole is a system
  • the parts are each systems
  • some parts may be systems-of-systems

In addition, there are human activity systems (social systems or soft systems) and technology based systems (machines, computers, etc or hard systems). Given the pervasive use of IT systems, many times “system” is taken to be a synonym for “IT system”, making it more difficult for some to consider the “system” being a social system or socio-technical system.

If systems based views and techniques are to be applied successfully, it is important that those engaged are considering the same system – that the system-of-interest is clear, as it may be part of a containing system, and it may be composed of parts-as-systems. Oftentimes, I have found that the differing views or confusion being experienced in analysing or diagnosing systems has arisen because different stakeholders are holding a different system as the focal point.

Being clear about the “system-of-interest” or the “system-in-focus” ensures that the differences emerging arise from different perspectives, perceptions and conceptions of the system-of-interest, and not through a difference in the point of focus.

What constitutes success?

This is a valuable question that I learned as a Director on a Board, but is equally applicable in other settings. Similar questions are sometimes asked such as “What does good look like?”

Such questions draw us to being clear about outcomes such that then we can consider the differing outputs that might be required to realise the outcome and the alternate processes (and strategies) which might be pursued to deliver these outputs.

Exploring enterprise lifecycles

Wherever an enterprise engages in architectural activities, there are three key lifecycles which come into play:

  • enterprise operations, managing the entire lifecycle from prospective customer to satisfied customer
  • enterprise development, managing strategy, innovation and change, delivering and embedding new or improved capabilities within enterprise operations
  • enterprise architecture, managing the structures and principles through which enterprise operations and development are effected

Enterprise-development-1

Any engagement needs to assess:

  • the current position within these three key lifecycles
  • the maturity of the organisation with respect to each of these lifecycles

in determining where to direct efforts to deliver the greatest value to the organisation.

EM_journey_v0-15

In this respect, the approach shown above for architecting enterprises provides an effective mechanism for managing each of the lifecycles, prompting an assessment and appreciation of:

  • vision
  • future directions
  • capability gaps
  • initiatives addressing gaps
  • program (roadmap) of activities in train

This could lead to three inter-related capability development cycles for maturing the enterprise architecture capability, enterprise development capability and enterprise operations capability.

Enterprise-development-2

Where is your organisation placed in terms of its architecture, development and operations maturity?

To what extent does your strategy development take account of your maturity in these three domains?

To what extent does your program planning and execution explicitly take account of these differing levels of maturity, including:

  • delivery risks arising from varying maturity levels?
  • adaptive approaches which allow for the necessary enterprise learning required for successful delivery?
  • synergies which can be pursued to leverage investment and effort towards enhancing maturity in all three domains?

Novel ideas?

creative-idea-in-bulb-shape-as-inspiration-concept-vector_z1WDrevu_L

A colleague and I convened a “kick off” meeting yesterday. When we left the meeting and travelled back to the city, she said something like “Another successful novel idea!”

Not being sure what novel idea she had in her mind, I asked “Which one?”

She said, “Getting people together so that they can talk to each other”.

And I said, “Ahhh … yes … one of several novel ideas that you just pursued:

  1. Getting people together so that they can talk
  2. Asking people to do things
  3. Giving people information necessary for them to do the task you want them to do
  4. Letting people do their job”

And then we talked about the novelty of these ideas. How is it that they seem so novel? How is it that people don’t do these things so often that we have cause to feel that the idea of doing so is something new, novel, innovative, earth-shattering …

How is it that this could be?

I suggested to my colleague that she should write a book on this topic as it would clearly be a best seller and provide a lasting income beyond any retirement that she might contemplate.

I wonder whether it would be a best seller?

Capability cultivation

Are you cultivating the capabilities your enterprise needs for the future? How do you know what capabilities you will need? How do you choose which capabilities to develop or strengthen sooner rather than later?

Last year, my son drew my attention to “Time for a new consensus”, subtitled “Fostering Australia’s comparative advantages” – an essay by Jonathan West and Tom Bentley, published by the Griffith Review. The essay in full is a very interesting read, but in this article I just want to pick up a couple of thoughts which caught my attention:

… the deeper problem is that the assumptions underpinning our current (political) consensus no longer fit Australia’s circumstances

and

… a new consensus must focus on how we construct comparative advantage in the Australian economy, by shifting from static, one-off efficiency reforms to dynamic, capability-enhancing investments

These reflect common themes facing many industries and many organisations

  • market disruption, laying waste our existing operating assumptions
  • developing dynamic capabilities, enabling greater flexibility and agility in responding to market / environmental changes, whether they represent disruptive forces or new opportunities

This aligns with key elements of the enterprise transformation lifecycle that underpins our work in developing next generation leaders and enterprises.

Using this lifecycle, we:

  • explore business models and operating models, exposing, testing and adjusting assumptions that we make about our organisation and the ecosystem within which it operates
  • maintain business models and operating models, informing the progressive development of a dynamic organisational capability portfolio
  • assess and develop these organisational capabilities through consideration of a number of different dimensions, including culture, process, practice, systems, assets and other resources

What do we need to do to successfully cultivate a capability?

We need to consider the different composite elements of a capability, be it an organisational capability or a technology-based capability. The inclusion of attention to people, culture, practices, attitudes, behaviour, leadership is one of the reasons that we have chosen to describe the work of defining and realising organisational capabilities as an act of cultivation – helping to underscore the cultural and social elements that are equally important as other elements of these capabilities.

How do we choose which capabilities to develop? Through reconsideration of our business models and operating models, establishing an understanding of which will make the most significant contribution to enterprise viability and sustainability and where capability inter-dependencies exist that influence timing and sequencing.

Change exhaustion?

A few years ago, I attended an “all staff” meeting for a business unit of 60 people within a large organisation. It was a “kick-off” event at the beginning of the year, outlining for staff the range of activities and developments that would be pursued during the year. It followed a busy preceding year, with lots of change and lots of pleasing outcomes (from a management perspective).

The Director said to the staff something along the following lines …

If you are thinking that last year was busy and this year we are going to slow down, I am sorry to disappoint you. Last year represents the “new normal”. You will need to “get used to this” and find ways to operate successfully and satisfyingly in this new mode of operation.

In one sense, this is “no surprise”. We have all heard (and therefore know, understand and accept!!) that the pace of change is increasing and that it is not going to stop. Yet, sometimes things are changing so much, we feel like we want the world to stop, so that we can take a breath and steady ourselves (or perhaps steel ourselves) for what is inevitably going to come.

So, how do we cope with the change that is occurring around us, with the “disruption” to our lives and the ways in which we are accustomed to living, working, learning and playing? How do we go about making changes so that we are not “left behind”, possibly without a job or without our traditional role or with a diminishing pipeline of clients as they no longer value what we offer?

One of the ways is to undergo a transformation … so what is different about changing versus transforming?

A transformation entails operating with a different set of assumptions.

Whilst we continue to assume the world is operating in the manner to which we have become accustomed, then we may experience the world as a spiral of diminishing circles, leading to disaster. We may see our circumstances in negative, disappointing and threatening terms.

Often, in these circumstances, it is possible to see the world and our circumstances through a different lens, a little bit like turning a kaleidoscope and seeing things in completely different ways. Sometimes this requires help from others, simply to enable us to appreciate that there is a radically different way of seeing things. You have probably heard people say …

  • There are no problems, there are only challenges …
  • There are no problems, there are simply opportunities …
  • Some people see a glass half-full and others see a glass half-empty

These expressions are all about seeing things differently.

One of the great capacities that humankind has is to be able to consider situations in the following way:

  • understanding the elements that constitute the means versus the ends
  • conceive of scenarios where the ends remain the same but the means are different
  • conceive of other scenarios where the means remain the same but the ends are different

The latter allows us to explore new ways in which our own capabilities, built around our knowledge, skills and experience can be used to achieve different goals and outcomes. This is the manner in which individuals and enterprises can envisage new ways of seeing things and new ways of operating which take advantage of their personal strengths and abilities. Sometimes the new opportunities require some attention to some weaknesses in order to work more effectively in the new environment, and this presents us with new manageable changes, learning and improving, so that we can pursue new goals and new horizons.

In this way, we can turn a frustrating and demoralising situation into one which offers excitement and inspiration, enabling us to move forward with a new spring in our step, ready to meet the new challenges facing us, and with a new sense of purpose and capacity to contribute to shaping our world of work and to supporting those around us whom we love and care for.

Turning the kaleidscope may be all that is required to change exhaustion into exhilaration …

Becoming more brain and systems savvy … includes learning different ways to turn the kaleidoscope