Isolate the Foundation team and allocate a budget to it


But the Foundation Resources are expensive.

How can we justify these costs if no Operational Organizational unit is asking for the Foundation?

The Foundation can only be financed by corporate management: it's up to it to decide if it wants consistency, economies of scale, synergy…

The Foundation director reports to the Executive Management.

  1. The common Good is taken into account by a Foundation team

    The Transformation aims to build Product Offers and Solution Models. So that these Offers and Solutions are built in a coherent framework, we also have to take the "Common Good" into account.

    This is why, alongside the teams in charge of these projects (new Products and new Solutions), there are other small and often distributed teams, such as "Methodology", "Urbanism or Enterprise Architecture", "mapping", "Enterprise Glossary", "Security", "usage norms", "Architecture", "Development Tools", "technical Infrastructure", "Interfaces", "Components",...

    Our suggestion is to create one Organizational unit, that we can call "Foundation" (or "Common Good"), responsible for everything that is shareable between the Business Lines, so that the Solution Project Manager only has to deal with one internal supplier. In what can be reused, we find:

    • The Transformation Model: how we Transform (Approach and Tools)
    • The Components to build Products and Services
    • The components to build Solutions
    • The shareable Solutions which can be common to several Organizational Units
    • The Enterprise Architecture which describes the global structure of the Solutions and their exchanges.
  2. The "Foundation" team only exists through the determination of Executive Management

    Each Business Unit is judged on its result. It is therefore illusory to ask it to work for the "common good" of the Enterprise: it naturally has a selfish behavior.

    It is up to Executive Management to take responsibility for this common good. To do so, it needs to set up a Structure which works for the good of the Business Units and brings together excellent competences in both Business and IT.

    One of the major difficulties is that we struggle to justify the economic profitability of the Foundation. We know that we need coherence to simplify the overall system but it is difficult to monetize what is structural. We do not justify in economic terms the need for electricity or communication means in the Enterprise, we know we do; it is the same for the Foundation.

  3. Objectives given to the Foundation: Agility, Synergy, Simplification

    The Role of the "Foundations" Organizational unit is to increase Agility in both its characteristics "fast" and "well"; to identify the right level of Synergy between Business Lines or Subsidiaries and to provide ideas to simplify the Operation Model.

    Define the road map to simplify the Enterprise Architecture. A project will be easier if it fits into a well-structured Enterprise Architecture. The clarity of scope, the precision of the interfaces with other Solutions, the reuse of Information access Functions are some of the assets that help focus the Project Manager's energy on the Solution Model and not on his/her environment. The real difficulty is in establishing a strategy of progressive simplification so that each Project contributes to this overall simplification. This first track has been defined in the white paper from CEISAR "Simplify Legacy Systems": we recommend that the interested reader downloads this white paper from www.ceisar.org

    To check that its Goal has been properly reached, the Foundation team has to acquire measuring tools to follow the changes in the Agility (speed of change and quality of Solutions) and Synergy indicators (the sharing of repositories, the reuse of Solutions or Components).

    The CEISAR cube to manage Complexity, Agility
              and Synergy

    The CEISAR Cube is a classification framework whose 3 dimensions correspond to the 3 biggest challenges facing Enterprises today: Complexity, Agility and Synergy.

    • managing the growing Complexity requires us to separate the real world from its Modeling
    • managing Agility requires us to separate Operations and Transformation
    • managing Synergy requires us to Share Resources (human resources, IT or information repository resources) and to Reuse Models (Solution or Component or Approach Models)
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