Power, the 5th Element

http://bauzanotebook.blogspot.mx/2013/05/governance-models-how-enterprise.html

 

In the traditional diamond shaped model used by consultants (where Strategy, Process, Technology and People play a part) there is a 5th element, Power. In most of the projects I have participated (ranging from Post-Merger Integration to Supply Chain consolidation), the dynamic of the power for a recent created capability is always an issue. The problem is that if we don´t define power relationships properly, the sustainability of the “diamond” will be in jeopardy.

Defining Governance Models is a mix of science and art, where the specific power dynamics within the organization plays a critical part. In the other hand, all Governance Models are not created equal, although they have several aspects in common.

In this article, we are going to explore the power dynamics (or Politics) between the Governance models for three specific capabilities in the organization: Enterprise Architecture, Balanced Scorecard and Program Management Office. It is clear that there are others governance entities that will interact with these three players (i.e. IT Governance Model, CAPEX governance, etc.), however, we will focus in the mentioned above.

How to define Governance Models, a framework

Governance Models are defined in all projects, but sometimes they look fuzzy and without a specific purpose. In order to solve this problem, it is required before drawing boxes and lines, to define clearly 7 elements that will help to create the guiding design principles for the Governance Model. Such elements are:

Sometimes, we rush to define a Governance Model without having crisp and clear the elements mentioned above. We are going to elaborate about some of these 7 key questions for EA (Enterprise Architecture), BSC (Balanced Scorecard) and PMO (Program Management Office).

The Seven Key Question for EA, BSC and PMO governance

The first step is to respond to the mentioned key questions of the framework. In this article will focus on questions 1,2, 5 y 6. It is important for the organization to know why the enterprise will concede a quote of power to the newly created entity. Also, for communication purposes it is necessary to properly respond to these questions to the organization.

Key questions

EA

BSC

PMO

Why a governance model is needed?

In order to design, implement, manage and measure the EA.

In order to achieve vision/mission/strategic objectives in a structure way, aligning the BSC perspectives, initiatives and KPIs.

In order to achieve program and project objectives, in time and fulfilling project client quality expectations.

What is governed?

Business architecture framework.

Meta-architecture.

Enterprise Architecture model.

Process orchestration (BPM/SOA).

Dimensions of the EA.

Process KPIs.

Standards, methodologies and techniques for EA.

Strategy.

Strategy maps.

Strategy KPIs.

Initiatives.

Standards, methodologies and techniques for BSC.

Program and projects execution and tracking.

Program and project KPIs.

Standards, methodologies and techniques for PMO.

Who will govern what?

EA Governance processes and rules.

BSC Governance processes and rules.

PMO Governance processes and rules.