Friday, March 20, 2009

How to build a BSC strategy map for Enterprise architecture

Kaplan and Norton have identified the following the 5 principles of that guide the development of the strategy map. The principles have been modified to fit the Enterprise Architecture context.

  1. Strategy balances contradictory forces: EA’s short term resource expense should balance the benefits realized mainly on a long term return time horizon
  2. Strategy is based on a differentiated customer value proposition. Satisfying customers needs the vital source of sustainable value creation. The targeted customer segments of the EA initiative need to be identified and a value proposition need to be formulated.
  3. Value is created through internal processes. Effective and aligned internal processes of the enterprise modeling initiative, determine how value gets created and sustained for customers. Focus is on critical few internal processes that deliver the differentiating value proposition
  4. Strategy consists of simultaneous, complementary themes. The formulated key internal process, occur parallel and in many situations complement each other. However, they do not always deliver benefits at the same time. Hence care is to be taken so that, they are formulated, evolve and measured at appropriate intervals to create a sustaining growth.
  5. Strategic alignment determines the value of intangible assets. The future learning and growth perspective, describes the EA initiative’s intangible assets and their role in the strategy.

I find work done by an EA guru, Jaap Schekkerman in Extended Enterprise Architecture Maturity Model Support Guide SM Version 2.0, an exceptional starting point to use maturity based KPIs to measure the objectives indicated in the strategy map.

http://www.enterprise-architecture.info/Images/E2AF/Extended%20Enterprise%20Architecture%20Maturity%20Model%20Guide%20v2.pdf

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