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"It is impossible for ideas to
compete in the marketplace if no forum for The Business Forum Journal
IT
ARCHITECTURE - FOR SMALL & MID-SIZED FIRMS By Steve Huhta
OverviewSeveral topics will be discussed here. First, a measurement refresher is provided for those readers potentially unfamiliar with the subject of measurement (or in need of a refresher.) Then, a generic, high-level measurement process is presented. Third, the concept of measurement drivers is presented along with how these drivers define both the IT Architecture’s value proposition and the appropriate metric category for each stage of the ITAMM. Fourth, the ITAMM stages are presented along with the associated measurement category and possible relevant metrics. Measurement refresherWhy Measure?Why does one measure? The reason to measure something is simple: if something is not measured, it can not be improved! Measurement is not done just for the sake of measurement. Rather, it is this author’s position that the something ones wishes to measure and improve is actually customer satisfaction! Obviously, the use of the word “customer” here is very generic. In this particular situation, customers include:
Who exactly the “customer” might be, is determined by one’s own particular situation. Similarly, what to measure is also determined by one’s particular circumstances. Such circumstances might, for instance, include a company’s particular organizational “hot buttons,” or perhaps a particular important “customer” who doesn’t feel its needs are being met. Measurement ProcessNow let’s look at a very simple, high-level measurement process. Although simplified, this generic, process covers the primary requirements for most any successful measurement endeavor – not just IT Architecture measurement. Each step is described in terms of how it might relate to a typical IT Architecture initiative. The steps include: 1. Define objectives and driversBegin by determining measurement objectives and drivers. In other words, figure out why you want to measure in the first place. For example, is someone or something pushing you to do so? If so, why? Moreover, if you are being pushed to measure, what are the “hot buttons” associated with this “push?” For example, if you are being asked by your boss to measure the money saved by a implementing an IT Architecture, find out why s/he is asking. By understanding the reason behind the request, the measurement process is both improved and simplified. 2. Determine “who you are”?Next, assess your own IT organization and determine its level of architectural maturity. A good way to begin is by looking at how well your own IT Architecture compares both against those of your industry as a whole, and against your direct competitors. (For further insight on assessing architectural maturity, refer to the first article mentioned in the Introduction above.) 3. Determine measurement areasThen, determine the architectural areas or elements to be measured. Accomplish this task by first stepping back and deciding what results are to be accomplished by taking on a measurement initiative to begin with. As presented above, measurement occurs in order to improve something and thus increase customer satisfaction. Hence, consider what desired or likely actions or decisions might result from a measurement initiative. 4. Determine measurement constraintsWhen doing measurement, be realistic about your situation because, irrespective of the desired level of measurement, the organization has only limited time, money, and resources. Consequently, the organization needs to ensure that any measurement program and its metrics are appropriate and sensible for your current, particular situation. 5. Establish metricsWhen undertaking this step, look at how the gathered information will be used. Don’t forget to consider who or what will be impacted by the outcomes caused by using that information. Could, for example, measurement drive any behaviors that would result in unintended consequences? 6. MeasureActually gather the data associated with the selected metrics. 7. Review and adjustOnce the measurement data is gathered, it must be consolidated, reported, and analyzed. Based upon such review, the measurement process may need to be adjusted. For instance, the review may show that the gathered metrics do not provide adequate decision-making information. Or, perhaps the analysis may discover that measurement data is not relevant to the situation at hand. Whatever the case, the measurement process should be revised. Measurement DriversIf improved customer satisfaction is measurement’s goal, how is such customer satisfaction achieved? The satisfaction is made possible by meeting the customer’s needs in one or more of three areas: Business Effectiveness; Financial Efficiency; and Operational Excellence. When viewed in terms of their relationship to measurement, these three areas provide key measurement drivers: Business effectivenesswhich asks the question “What do you get?” and has metrics related to the categories of Value and Benefits.Financial Efficiency that deals with the question of “How much?” and includes metrics related to Costs and Resources categoriesOperational Excellence that focuses on “What is done?” and its metrics consider both the quality of Processes and whether or not customers are getting the appropriate Deliverables.These three key measurement drivers are represented pictorially in Figure 1. Because each driver is important and can not be ignored, a triangle represents their relationship and interdependence. In other words, unless each side is appropriately “balanced,” the ultimate goal of meeting customer needs – and thus achieving customer satisfaction – will not be accomplished.
Figure 1 presents the three measurement drivers associated with its corresponding measurements categories, and by extension, provides guidance toward the correct type of metrics for each driver. This association is shown by the diagram presented in Figure 2. (Note that through the balance of this article, each measurement driver and its respective measurement category and metric type has been color coded.) As an example of the interrelationship between measurement driver, measurement category, and metric type, refer to Figure 2. Notice that the measurement driver of Financial Efficiency, which deals with the measurement category of Cost/Resources, has metrics associated to the topic of “How Much?”
IT Architecture MeasurementThe IT Architecture Value PropositionNow consider the various drivers for implementing IT Architecture. These drivers relate to the same measurement categories as presented in Figure 2. Table 1 below shows a small set of IT Architecture drivers matched against their respective measurement category (and metric type.)
Table 1When the drivers for implementing an IT Architecture are laid out against the three measurement categories, we end up with the value proposition for IT Architecture! Not only that, each IT Architecture driver now coincides with a metric category. Now, it is just a matter of deciding what to measure and to then select the appropriate metric from the metric category. So to summarize, one measures in order to provide customer satisfaction. The three drivers enabling customer satisfaction each relate to both a particular measurement category and its associated metrics. These metrics show the customer: 1. What the customer gets in the way of value and benefits (Business Effectiveness) 2. How much costs and resources are being optimized (Financial Efficiency) 3. What is being done and what are the deliverables (Operational Excellence) What to Measure in Your IT ArchitectureWhen deciding what to measure within your architecture, the initial step is to determine your particular IT Architecture situation. At any point in time, an IT Architecture for one organization will have different priorities and be at a different level of development than the IT Architecture within another organization. To pinpoint your priorities, ask yourself both “Why do I want to measure my IT Architecture?” and “Who is pushing me to measure?” These two questions help you to identify the “hot buttons” surrounding your IT Architecture situation. For example, if data is being requested by your company’s Finance Department, then it is likely that data about both costs and about resource utilization are relevant measurement topics. To get a handle on your Architecture’s development level, use the IT Architecture Maturity Model described below. The IT Architecture Maturity ModelThe ITAMM describes the phases through which an enterprise must progress to achieve an effective and sustaining IT Architecture. Consisting of 6 stages (numbered 0 through 5), the lowest level of readiness is Stage 0 and the highest level Stage 5. Similar in concept to a ladder, an enterprise “climbs” the model increasing its degree of IT Architectural readiness and maturity with each higher stage.
The name given each stage characterizes both
the degree of architectural readiness represented and the main effort
being undertaken. Additionally, each stage asks a question that
epitomizes the architectural challenge associated with that stage.
Finally, the model highlights for each stage the business or
architecture deliverables required to meet that challenge. See Figure
3.
Each stage of the model will now be discussed and placed into context with the metric category and the type of metrics appropriate for that stage. Notice that during this discussion, each ITAMM stage has been expanded from the figure above by adding two additional columns. The “Measurement Question” column relates back to the measurement category and measurement driver described earlier. For instance, in the Stage 0 (“Chaos”) discussion below, the Measurement Question “How Much?” ties to category of “Cost/Resources” – which in turn, refers to the Financial Efficiency measurement driver. Stage 1: ChaosWhen in this stage, an IT organization may recognize that it has a problem but is not sure what that problem is. The organization asks itself “What’s wrong?.” At the same time, corporate management is asking the question “Why are we spending so much time, money, and resources on Information Technology?” Because the emphasis of Stage 0 is on costs, metrics of importance include those that deal with the cost of IT – e.g., support, services, hardware, software, etc.
The Chaos Stage metric examples provided
below are just a few of those possible. When deciding upon which
metrics to use, consider your own circumstances.
Stage 2: Awareness During this stage, the primary question to be answered is: ”What do we have?” The IT organization endeavors to find out both what IT assets/resources are owned and used by the enterprise and, where these resources are located. As such, this stage tends to be concerned with the idea of “inventory.” By understanding what resources are currently in place, a picture of the “as is” computing environment can be built. Keep in mind that relevant IT resources and assets comprise much more than just technology items such as PCs. Other pertinent resources include contracts, vendors, existing standards, and so on.
Stage 3: Alignment This Stage looks at how well IT projects and initiatives align against the organization’s published set of IT Architecture standards. During this stage governance processes are established and the IT organization begins to get its arms around issues associated with missing standards, lack of technological consistency, and too much variety. The governance question being asked is “Does it fit?” Governance helps new IT projects leverage already installed technology while ensuring that exceptions to architecture and standards are implemented consciously and are appropriately documented. When developing metrics for this stage, consider those that highlight the benefits arising from having an IT Architecture. Of course, such benefits will vary from organization to organization. Your particular “hot buttons” in this arena may be the result of the “promises” made during funding requests for IT Architecture. If so, build metrics that relate to any such promises.
Stage 4: AdvantageThe Advantage stage concerns the degree that technology investments support the enterprise’s business direction and requirements. Investments aligning with business needs ultimately lead to enterprise performance advantages. – whether that advantage be faster time-to-market, quality, customer service, lower costs, etc. As a result, during this stage senior management asks: “What business value is coming from our investment in IT Architecture?” At the same time, the IT organization itself is asking: “Where does IT lead the enterprise?” To successfully carry out this stage, the IT organization must understand the enterprise’s vision and business strategy. Another way of describing this stage is: if the Alignment Stage was about selecting the correct type of ladder, the Advantage Stage is about making sure that the ladder is leaning against the correct wall!
When considering metrics
for this stage, look at how IT plans to provide value through business
performance advantage. For instance, is that value to be delivered via
improved quality, or improved customer service, or, perhaps, enhanced
flexibility leading to increased speed and a faster “time to market?”
Whatever the case, select metrics that appropriately reflect how
the value reaped from IT aligns with the organization’s vision and
business strategy.
Stage 5: Migration Migration deals with the “business of IT” and how well the IT organization is running its projects and other activities to move the enterprise towards its ultimate vision and strategy – as identified in the Advantage stage. Leveraging the organization’s vision or business strategy, this stage’s goal is to answer the question “How do we get there?” Therefore, critical to this stage are funded IT projects, project plans, and the IT organization’s internal processes. A primary question coming from corporate management is “Are new IT projects appropriate and being well managed?”
Stage 6: Renewal The model’s top stage involves maintaining an organization’s competitive advantage by ensuring that it’s IT Architecture is “fresh” and relevant. During this stage the IT organization addresses the question of “What’s next?” Moreover, IT is also attempting to look at “what comes after what’s next” – all in connection to the enterprise’s vision and strategy. A refreshed and updated architecture results through technology reviews and innovative research. This stage also is an excellent time for the IT organization to compare itself against both other IT organizations within its industry and direct competitors. Such comparisons highlight how well the IT organizations efforts to maintain a competitive advantage measure up.
All Stages Summary The IT Architecture Maturity Model is a useful, practical tool that helps IT organizations determine their own specific maturity and readiness situation. The model facilitates and simplifies the determination of which metrics are appropriate for the organization’s particular circumstances. Such facilitation is important because an IT Architecture effort likely consists of multiple initiatives – each of which may occupy a different ITAMM stage at any given time.
SummaryBy leveraging the IT Architecture Maturity Model, the difficult issue of appropriately measuring the progress and performance of your IT Architecture initiative becomes greatly simplified. Rather than just a theoretical concept, the ITAMM provides a flexible, practical tool for determining what and how to measure – using metrics and measurement categories specific to your particular organization and situation. Try ITAMM on your own and discover how it can help your organization. If you would like further information, please contact me at: shuhta@earthlink.net
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