5 Capability Model – Governance by Design
Nov21

5 Capability Model – Governance by Design

5 Capability Model Introduction to corporate governance and IT governance using a 5 capability model. Management capabilities Party management capabilities Offer management capabilities Financial management capabilities Transactional capabilities Expense transaction capabilities MIKE2.0 Investment & Planning September 2013 content award and inclusion under Creative Commons copyright Revenue transaction capabilities The five capability model provides the zero data loss scope for any organization or agency, the recovery time objectives for zero downtime and zero data loss.  The same five capabilities allows the financial scope in service management for full regression and Sarbanes Oxley.  Nearly all of the activities are universal across industries and geographies.   Who cares about this issue? The external stakeholders who are alert and using the audit reports and risk register as key indicators of the organizations operating practices.   There are some technical leaders who are happy to build a healthy risk register as it justifies the need for their teams. The executives and management would ideally want to have the rule without unnecessary risk,  if they are aware that basic business management systems were abandoned with the collaborative leadership models. Question for an executive sponsor You are an employer who must supply tools to allow the employees to perform the task they were hired to perform. “If the tools fail, is the employee at fault or the employer who supplied faulty tools?” Question for an employee If I am hired to perform a task and the tools are allowing me to break policies or avoid procedures.  “Am I expected to know how and when policies apply to me and my role if the applications were changed from doing this for me?” Yes, is there any reasonable expectation of success?  No, neither an employer nor an employee are setup for success. How do I address such a disconnect? Enable the rule Allow a certain degree of variance Expect an exception path Many of us are immediately sent a mental message that the term “governance by design” either hurts and constrains our stakeholders or it prevents innovation. Key driver in this approach is to enable the possibility. What if the possibility enables innovation by design? What if you also gain a way to change without slowing down your core business? What if you reduce complexity and increase agility and speed? Imagine if we got out of the weeds when we govern the enterprise? It’s about carving out the minimum viable systems and measuring at the leverage points. Segmentation Tomorrow, we will have policy based access and far fewer chances to introduce risk. Three operating models aligned to the customer market behaviors. Run your business Change your business Innovate to grow your business Ideally, using...

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Change Management – Purpose and Perspectives
Nov21

Change Management – Purpose and Perspectives

Change Management We have two distinct types of Change one for IT and one that is a more structured time intensive process for people and process changes.   There are times when these two processes are misunderstood and IT takes on the business change without taking the action.  The results are issues caused by an IT change.  Nuances or a quick fix in the Data Warehouse, looks like the solution to the problem, when in fact the process and people are fumbling while a report looks great.  Missing the change management for people has become a common problem for many companies. Business Change Management IT Change Management Business – Any change to people, process or technology. The people change management requires people, may include technology and may also include process, these changes are typically performed by specialized resources “Change Management” experts.  Managers of the people who need to change and change management experts are partnered for the change and work through the people parts of change in effective change programs. A business change that requires people to make adjustments to the way they perform their work, activities or process. May be prompted by a re-organization May be prompted by an acquisition May be prompted by transformation May be prompted by an audit and managed through strategy May be a change in strategy May be a change in technology An IT service management Change Release – IT change has been crafted for non-release or no data type changes Planned Maintenance Data migration – non-structure data migration 1:1 mapping Backend db performance tuning Change Management – People A scheduled release planned or in some cases not IT related and simply aligned to a release for managing the gate criteria for the people changes. Dependencies in a release Any changes to the five capability model requires “Full integration and regression testing” a reason most project teams mark “no” sox and no regression testing or no dependencies in a release A recovery time test (ideally item 2 and 3 are sequenced in a way to incorporate sarbanes-oxley testing). The changes which occur in any business function have downstream impacts when the change relates to the five capabilities.  A business process architecture allows greater visibility into the inputs and outputs for greater understanding and visibility. This is true in an integrated organization, where people are sharing the information for lower waste and greater efficiency.  At least, in an organizations where the information is integrated across business functions requires change management. The primary point for us to consider, when we think of a change and it involves people, process or technology we are talking about a concentrated communication strategy...

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Innovation and Strategy – Offer Management People Competencies
Jun26

Innovation and Strategy – Offer Management People Competencies

Strategy People who have deep experience and acquired wisdom are typically the best resources to execute your innovation strategy. In this post we will use a sports team Use Case. Use case A team sport with an objective to “win a cup” Your players are placed on teams Offense (4) Defense (4) Alternate players (3) Power Play (4) Your fans need to fill the stadium at all games You sell team gear You sell merchandise (souvenirs) Assumption The greatest role on a Wobbly team earns a player a role on either offense or defense teams. Has the greatest skill to adapt to different players on an opposing team Business Strategy In this use case we use the ability to play both positions as the strategy and highest degree of competency. An acquired competency to adapt to any opponent may best be acquired by having both offense and defense mastery The teams are shown below with the greatest competencies at the top and lowest at the bottom Developing the offer Teams Offense – EXPERT – Fast lane Similar to a process or business function type – has a specific set of skills in market and sell Can play both offense or defense Enables more agile players to adapt to the oppositions defensive player based on wisdom of playing or mastering the skill Can play power play positions Defense (4) – EXPERT – Fast lane Similar to a process or business function type – has a specific set of skills in operations and delivery Can play both offense or defense Enables more agile players to adapt to the oppositions offensive player based on wisdom of playing or mastering the skill Plays more than one power play positions Alternates (3) – ADVANCED – Middle Lane 2nd string has the ability to play in one or the other between offense and defense Not as skilled as the teams 1st string Power Player- GENERALIST – Slow Lane Suggest a Play rather than more than one play Specific to the play a Power play-infers a less skilled or limited competency Infers better than an alternate yet not as skilled as a defense or...

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Innovation and Strategy – Organizational Design Strategy
Jun25

Innovation and Strategy – Organizational Design Strategy

Innovation and Strategy "a digital Argonaut" digitalargonaut2@gmail.com Innovation What is innovation?  Well it’s going to depend on who or whom you ask the question.  The purpose of this blog will try to get past definition and get down to what’s behind the words and what people need to do to get work done. Innovation – is ideally ingrained in our culture, employees are encouraged to innovate and leaders reward the employees for their work towards the goal of being an innovative company.  The ability to measure a culture of innovation is far more subjective than any other performance measure. Innovation may be the way employees communicate about the newest offer the companies working on. Innovation may be the way a current offer get’s repositioned or different components used to increase functionality or add features. Innovation IS NOT usually an upgrade to a current operating system. For the sake of argument let’s use the same descriptions above and add a few points of interest often not known or understood by the various functions even in cases where the resources are highly effective, we are unlikely to know what we don’t know. Stakeholder and Operational Requirements High risk offers are the new inventions or offers that are NOT in the market and the industry analyst are decision makers about the readiness and category which the offer will be reported and measured against. The inventions a company and the shareholders/investors agree to accept a certain degree of risk, these are risk to these executive level stakeholders and the organization or agency must acquire a different type of insurance as part of the companies overall risk management portfolio. Insurance for the Directors and Officers (hold harmless – any fines are paid by the insurance in cases of a new offer causing monetary damage) Insurance for all investors and shareholders to prevent loss beyond the investment or percentage of the company where accepted risk was authorized. Medium risk offers are often a way a few existing offers may be segmented with a new acquisition offer improving the offer. The industry analyst will determine the new offer is now advanced which has a footnote to describe the advanced technology as a dollar amount of the GAAP moved to non-GAAP revenue reported. An organization or agency offering advanced technology offers has a greater risk if the features are ahead of their time as the consumers may not be prepared for the offers requirements for more power as an example; or the ability to monitor everything in our homes as another example. Neither example implies negative offers – the power must be available to the person buying...

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