Pattern-Based Strategy: Implications for Higher Ed

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1 Pattern-Based Strategy: Implications for Higher Ed Steve Bittinger Notes accompany this presentation. Please select Notes Page view. These materials can be reproduced only with written approval from Gartner. Such approvals must be requested via Gartner is a registered trademark of Gartner, Inc. or its affiliates.

2 The Global Financial Crisis Highlights That Change Is a Constant Not a Variable Increased Business Connectivity Network Effect Market/ Economic Instability as Normal Operations Weak Signal Vendors Increased Focus on Delivering Solutions That Provide Intelligence, Collaboration, Agility Customers Increasing "Undetected" Business Impacts Leaders Proactively Using "Collective" for Innovation Seeking Fact-Based Decisions

3 Trends: Five Eras of IT Business Value-Add Widening Ecosystem Low Control Levels High Tightly Held Centralized Corporate Technology BU BU Supplier Periphery Core Information BU BU Corporate Business Process Automation Productivity E-Commerce Ecosystem People Pattern-Based Strategy

4 The Cynefin Framework A Leader s Framework for Decision Making, Snowden & Boone, Harvard Business Review, Nov 2007 The new dynamics of strategy: Sense-making in a complex and complicated world Kurtz & Snowden, IBM Systems Journal, Vol 42, No 3, 2003

5 John Boyd s OODA Loop Observe Orient Decide Act Unfolding Circumstances Implicit Guidance & Control Cultural Traditions Implicit Guidance & Control Observations Feed Forward Genetic Heritage Analyses & Synthesis Feed Forward Decision (Hypothesis) Feed Forward Action (Test) Outside Information Unfolding Interaction With Environment New Information Feedback Previous Experience Feedback Unfolding Interaction With Environment Orientation is central, shaping observation, shaping decisions, shaping action, and in turn is shaped by the feedback and other phenomena coming into our sensing or observing window. Competitive advantage comes from quickness over the entire loop, and from how well orientation can make sense of and match changing external conditions. The Essence of Winning and Losing, J. R. Boyd (1995) Certain to Win: The Strategy of John Boyd, Applied to Business, Chet Richards (2004) Science, Strategy and War: The Strategic Theory of John Boyd, Frans Osinga (2007)

6 John Boyd s Operational Principles: Trust-based Agility Einheit: Mutual Trust Unity, mutual trust, implicit communication built on common experiences. Spontaneous, self-disciplined cooperation. Absolute confidence that your teammates will do the right thing Fingersptizengefuhl: Intuitive Skill Intuitive Competence ( fingertip-feeling ). Gut-feeling Pervasive, shared training, methods and expectations. Auftrag: The Contract of Leadership Authority pushed to the cutting edges Subordinates understand, accept, intent of orders, Leaders require them to use initiative, freedom and flexibility to meet or exceed goals. Schwehrpunkt: Focus and Direction Focus and direction of efforts understood, accepted, by all. Everyone would have agreed it was the right thing to do, and would have done the same thing, under the circumstances Certain to Win: The Strategy of John Boyd, Applied to Business, Chet Richards (2004) Science, Strategy and War: The Strategic Theory of John Boyd, Frans Osinga (2007)

7 Seeking Exceptions and Fact-Based Decisions in Information But Just as there was too much data now there's too much information. Information is not shared (trust, technology, language). Information is often conflicting. New sources of information (e.g., the collective) are often not considered. No recognition of patterns across different types of information (people, processes, data)

8 Pattern-Based Strategy Requires New Disciplines Pattern Seeking is a discipline to seek and exploit signals that may lead to a pattern that will have a positive or negative impact on strategy or operations. Performance-Driven Culture is a discipline that extends the traditional performance focus to leading indicators, modeling the impact of patterns, and driving desired behaviors (as a result of a new pattern) across the organization. Optempo Advantage is a discipline for improving an organization's competitive rhythm so that it can consistently and dynamically match pace to purpose. Transparency is a discipline that enables awareness and visibility to facts that are critical to the achievement of the desired outcomes of an organization.

9 IT Intrinsic to Pattern-Based Strategy Today Patterns have been recognized and are often valuable, but have been limited in applicability until now. Find and Document Patterns: Predictive Analytics Industry Specific e.g., Fraud/Security Social Media Platforms Information Mediums (Access to Data) Business Intelligence Act on the results at appropriate speed: Model-Driven Business Applications Business Process Management Application Development Business Activity Monitoring Service-Oriented Architecture Interpret, Analyze Pattern Impact, and Define Scenarios Performance Management Operation Planning & Modeling Tools Social Network Analysis Forecasting Tools

10 The Basics of Pattern-Based Strategy Who is responsible? What do you do? How do you execute? Where do I start? Everyone. Business leaders need to recognize current and new sources of information that may indicate a strategic or operational risk or opportunity. Invest in culture and technology to enable seeking, modeling and adapting to patterns that can have a positive or negative impact on your organization. Identify organizational capabilities where the impact of seeking, modeling and adapting will have business impact. Focus on the most important areas of your business understand the major business drivers (for example, new services, operational improvement).

11 Discipline 1: Pattern Seeking Recognizing Weak Signals Innovation Pattern Recognition Pattern Matching Operational Strategic Risk

12 Creative Activity: Exploiting Collective Knowledge To Seek Patterns The collective comprises individuals, groups, communities, mobs, markets and firms that have the ability to shape the direction of society and business. The collective is not new to higher education but technology has made the collective more powerful and enabled change to happen more rapidly.

13 Discipline 2: Establishing a Performance- Driven Culture Performance-Driven Culture Evolution Stage Monitoring Enterprise Metrics Framework Predictive Planning/ Modeling Pattern-Based Strategy Seek, Model, Adapt to Changing Patterns What-if analysis, scenario planning, optimization and simulation Driving/outcome metrics, balanced scorecard, strategy maps, leading/lagging indicators and validation of key performance indicators Focus Reporting, dashboards, alerts and business activity monitoring Degree of Business Impact and Value

14 Discipline 3: Operational Tempo Advantage Matching Pace to Purpose Guidelines, principles and prescriptive actions for continuously adapting pace to purpose

15 Discipline 4: Transparency Is an Enabler of Pattern-Based Strategy (Lagging) Timeliness of Indicator (Very Leading) Enrollment Key Performance and Key Risk Indicators Weak Signals Example Metrics Undergrad Grad Nondegree FTE Head count Prospects Applicants Retention Degree requirements Financial aid Accreditation status Demographic changes Net Promoters Score (alumni, stop outs) Social Network Size Auditability Very High High Medium Low Business Pattern Activities Defined Creative Exception Collective Patterns

16 Risk: Which Cultural Model Best Resembles Your Institution? Horizontal Management systematically and explicitly recognizes and rewards contributions to the success of others. Flat, horizontal organization with authority broadly delegated to the "end nodes." Open information access and information flow. Collaborative, participatory, bottom up. Status, rank, political capital not key factors. Fluid working relationships and anyone can communicate with anyone else. Vertical Management and measurement systems do not. Hierarchical organization with authority concentrated at the top. Information available on a need to know basis. Top down. Status, rank and political capital are critical determinants of who controls what. "Skip level" communication works only in downward fashion.

17 Risk: Underinvestment in Organizational Change Management 100% Unrealistic Expectations Gathering Momentum Absorption Rate 0 Change Mgmt. Effect Absorption Threshold Change Volume, Velocity, Complexity Change Absorption Thresholds Performance Danger Zone Moment of Truth Trough of Despair Time Institutionalization Light at End of Tunnel Change Acceptance Cycle Current Base Line Change Adoption Distribution Reluctant Majority Early Adopter Resistant Laggard t Change Participation Rates

18 Results Depend on Balanced Strengths In Each Area Objectives, Targets Strategy Business Strategy IT Strategy Constraints Governance Project Management Programme Management Portfolio Management Benefits Realization Direction Engagement Enterprise Architecture Business Applications Information Technology Security Sourcing and Vendor Management ICT Operations and Sustainment Adapted from: The Information Paradox (2003) By John Thorp, pages Presentation by Greg Farr, Defence CIO, to AIIA Canberra on 20 August 2008

19 Clarify What is Separate and What is Shared and Why Shared/ Centrally Coordinated Local IT Corp. Infra Business Unit 1 Local IT BU 1 Infra Enterprisewide Infrastructure Business Unit 2 Local IT BU 2 Infra Public Infrastructure (e.g., Internet, Vendors, Telcos, Industry Networks) 2000 P. Weill and M. Broadbent, from P. Weill & M. Broadbent Leveraging the New Infrastructure: How Market Leaders Capitalize on IT, Harvard Business School Press, June 1998 Research tools Knowledge management Financial management Home page PC/LAN service Electronic mail Large-scale processing Student database Electronic malls Telecom service providers Secure networks Copyright Matching IT Infrastructure with Business Initiatives, Peter Weill, MIT Sloan CISR; Marianne Broadbent, Gartner; Mani Subramani, University of Minnesota.

20 Business Orientation Shapes the Maxims Ent. Charac. Bus. Orient. Synergistic Enterprises 1 Agile Enterprises 2 Autonomous Enterprises 3 Business Processes Standardized and integrated across business units Modular, adaptable and easily combined More distinct and independent Coordination and Skills Specified synergies mandated, duplication removed Firmwide, front-line responsiveness Local innovation and competitive strengths Management Systems for Coordination BUs focus on BU and firmwide strategies BUs adapt to local conditions within firmwide organizing logic Few mandates, just enterprise financial and risk management Information & Information Systems 3 Substantial integrated firmwide infrastructure, shared services Modular capabilities centrally coordinated and architected Thin layer firmwide, each BU infrastructure tailored 1 Aligning IT Architecture with Organizational Realities Jeanne Ross, David Robertson, George Westerman, Nils Fonstad. MIT Sloan CISR Research Briefing, Vol 3, No 1A, March Drawing on the work of Duncan (1995), Kayworth, Chatterjee, and Sambamurthy (2001), Sambamurthy and Zmud (2000). 3 Drawing on the work of Kayworth, Chatterjee, and Sambamurthy (2001), Weill, Subramani, and Broadbent (2002) MIT Sloan Center for Information Systems Research (Weill & Fonstad). Source Peter Weill & Jeanne Ross IT Governance: How Top Performers Manage IT Decision Rights for Superior Results, Harvard Press

21 The IS Credibility Curve: From Cost Center to Business Center Potential Economic Value Level 1 Uncertainty Toolbox Budgets Operations Staffing Perception Pts. Response Reliability Level 2 Skepticism Toolbox Communication Consistency Reliability Performance Recruitment Perception Pts. Information Problem Mgmt. Policies IS Credibility Curve Level 3 Acceptance Toolbox Svc. Portfolio Skill Assessment Relationship Mgmt. Project Mgmt. Outsourcing Svc. Recovery Staff Dev. Perception Pts. Competency Business Smarts SLAs Priorities Level 4 Trust Toolbox Svc. Delivery Architecture Project Office Resource Mgmt. Competencies Measurement Perception Pts. Leadership Relationships Behavior Sourcing Choices Service Pricing Level 5 Respect Toolbox Governance Funding Portfolio Mgmt. Final Analysis Career Pathing Program Mgmt. Work Flexibility Strategic Sourcing Succession Perception Pts. Alliances Partnerships Consultation Innovation Tangible Value

22 Service Delivery Operating Models Evolve With Rising Credibility Worst Practice Reactive Silos Utility Levels 1 and 2 Acts Like a Cost Center Proactive Process- Based Acts Like External an Service Service Provider Internal Service Company (ISCo) Enhancement Levels 2 to 5 Value Acts Like the Owner Shared Differentiation Services Profit Generator Tranformation Level 5 Uncertainty Skepticism Accept Trust Respect The Best Practice Model Depends on Business Service Expectations

23 The Road to Real Time Infrastructure: The Infrastructure Maturity Model Objective Ability to Change Pricing Scheme Business Interface Resource Utilisation Organisation IT Management Processes Basic Uncoordinated infrastructure React Months to weeks None, ad hoc No SLAs Unknown None Chaotic Reactive Ad hoc Standardised Standard resources, configurations Reduce complexity Weeks Fixed costs Class-ofservice SLAs Rationalised Consolidate to fewer Economies of scale Weeks to days Reduced, fixed costs Class-ofservice SLAs Virtualised Infrastructure resources pooled Flexibility, reduce costs Weeks to minutes Fixed shared costs Flexible SLAs Known Rationalised Shared pools Central control Consolidated Reactive Proactive Life cycle management Proactive Mature problem management Pooled ownership Proactive Prediction, dynamic capacity Services managed holistically Service- Based Servicelevel delivery Minutes Variable usage costs End-to-end SLAs Servicebased pools Policy- or Value-Based Dynamic optimisation to meet SLAs Business agility Minutes to seconds Variable business costs Business SLAs Policy-based sharing Serviceoriented Service End-to-end service management Businessoriented Value Policy management

24 Higher Education CIO Business Priorities Ranking 2009 C Improving business processes Increasing the use of information and analytics Reducing enterprise costs 3 10 * Improving enterprise workforce effectiveness Attracting and retaining new customers Targeting customers and markets more effectively Creating new products or services (innovation) Managing enterprise change initiatives Creating new sources of competitive advantage Expanding current customer relationships 10 7 * Managing your environmental impact (green IT, carbon footprint) * * 9 Expanding into new markets or geographies * * 10 Gartner's annual CIO survey contains results from 75 higher education CIOs, out of a total of 1,526 total CIO responses. * = not ranked in Top 10

25 Education Hype Cycle 2009 expectations Lecture Capture and Retrieval Tools Open-Source Higher Education Financials Mobile-Learning Smartphone Mobile-Learning Low-Range/ Midrange Handsets User-Centric Identity Frameworks Digital Preservation of Research Data Cloud HPC/CaaS in Higher Education Chaotic Sandpit Open-Source Higher Education SIS SIS International Data Interoperability Standards Quantum Computing BPO Education Web-Based Office Productivity Suites CobiT Education Technology Trigger Social Learning Platform E-Learning Repositories E-Textbook Peak of Inflated Expectations Years to mainstream adoption: Virtual Environments/Virtual Worlds Higher Education Hosted Virtual Desktops Unified Communications and Collaboration Global Library Digitization Projects Mashups Higher Education ITIL Education Hosted PC Virtualization Software n Organizational-Centric IAM Education Emergency Notification/ Mass Notification Software Open-Source Higher Education Portals SaaS Administration Applications for Education Wikis Digital Rights Management Higher Education Trough of Disillusionment Healthy Hothouse time Web and Application Hosting Grid Computing Higher Education Tablet PC Social Networking in Education Podcasting Learning Content E-Portfolios IT Infrastructure Utility Cloud for Higher Education Slope of Enlightenment less than 2 years 2 to 5 years 5 to 10 years more than 10 years Web Services for Administrative Applications Disciplined Engine Room Open-Source E-Learning Applications Federated Identity Management CRM for Enrollment Management As of July 2009 Plateau of Productivity obsolete before plateau

26 Framework for Managing Technology Adoption in Higher Education Chaotic Sandpit Conceptualize Build Experiment Play Not in Use Watch Contribute Commercialize Plan Pilot Teaching/Learning Focused Use Enable Research Sell Exit Research Healthy Hothouse Administration Broad Use Leverage Use Adopt Use Disciplined Engine Room Technology Trigger Peak of Inflated Expectations Trough of Disillusionment Slope of Enlightenment Plateau of Productivity

27 Organizational Efficiency Improves Institutional ROI Education Hype Cycle 2009: A Selective Technology Strategy Map 4 18 CobiT 11 ITIL 1 7 OSS fin. 19 BPO WS admin. comp. 2 OSS SIS 13 Web and app. hosting 12 O.C. IAM "Free" cloud mail 17 FIAM 9 8 Lecture capture & retrieval Mobile 6 learning smartphone 3 UCIAM "Cloud" Office 10 Virtual worlds 16 Wiki Improves Student and Faculty Experience Personal Productivity 14 E-portfolios 5 Social learning platform 15 Social network Improves Remember "everything is relative" Technology Trigger 1. BPO Education 2. OSS SIS 3. User-centric identity frameworks (UCIAM) 4. CobiT 5. Social learning platform 6. Mobile learning smartphone Peak of Inflated Expectations 7. OSS financials 8. Lecture capture and retrieval tools 9. Web-based office productivity suites "Cloud Office" 10. Virtual worlds Trough of Disillusionment 11. ITIL 12. Organizational-centric IAM 13. Cloud 14. E-portfolios Slope of Enlightenment 15. Social networking in education 16. Wikis 17. Federated identity management (FIAM) 18. Web & application hosting Plateau of Productivity 19. Web services for administrative computing

28 Emergent Architecture: Enabling Interoperability While Not Constraining Change E x t e n s i b l e Uncertainty Generic Solutions Simple Interface Federated Components Uncertainty Unexpected reuse is the value of the Web Tim Berners-Lee

29 Emergent Architecture is Based on Simple, Standard Identifiers, Formats, Protocols Examples Identifier Address Reference Name Format Document Message Container Protocol Method Operation Process IP IP Address IP Packet IP Protocol Address RFC 2822 SMTP (Simple Mail Transfer Protocol) Web Simple Interface URI (Uniform Resource Identifier) HTML (Hypertext Markup Language) HTTP (Hypertext Transfer Protocol) Three rules - Concentrate on form, not function - Concentrate on communication, not operation - Concentrate on identification, not content WS-* URI SOAP Envelope SOAP Protocol

30 The Learning Conundrum Where learning $ goes Where learning occurs Formal learning Informal learning Therefore, most of the money organizations spend on learning does not make people more proficient or productive.

31 A Social Learning Platform Emerges Unstructured Information Sources Structured Information Repositories Experts and Peers Communities of Practice and Social Networks Certification Instructor-led training FORMAL Compliance Performance E-Learning Mentoring STRUCTURED SOCIAL Expertise SOCIAL LEARNING PLATFORM Expert intervention Coaching INFORMAL "Ask an expert"

32 Conclusions and Recommendations Pattern-Based Strategy is both about technology and culture. Understand how you "seek, model and adapt" today and where the integration of these three will enable more-efficient institutional outcomes. Include the "collective" as a source of seeking new/novel patterns. Start small identify critical patterns where exceptions have a big impact (and there is little/no planning) apply seek, model, adapt (i.e. degree offerings, funding, financial aid, retention) Understand how your institution and/or department exploits the four disciplines: pattern seeking, optempo advantage, performance-driven culture, transparency. Shift your architectural focus from standardisation toward enablement of continuous change. Think about EA in terms of how to infuence relationships Leverage the EA community of practice

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