The Secret to Better Decision-Making: How Enterprise Portfolio Management adds value to your organization
by: Bill Cason, Troux CTO
Articulating and measuring the business benefit of Enterprise Architecture (EA) has always been a bit tricky. But lately we have noticed this exercise is becoming easier for all corporate stakeholders. Key to this development is adopting an Enterprise Portfolio Management (EPM) approach.
So there I am sitting on a panel at a conference a couple of weeks ago, answering interesting questions with some interesting co-panelists, when a thought struck me. “After decades of positioning EA as a discipline for business-IT alignment, why aren’t EA programs more in tune with (driven by, owned by, participation from) the business?”
In 1937, noted economist Ronald Coase penned a short essay titled “The Nature of the Firm”. Coase was trying to understand why companies had gotten very large as the industrial revolution first emerged and then began to displace our agrarian lifestyles.
I recently took a personality profile test called the Clifton StrengthsFinder. This test measures the presence of talent in 34 categories called "themes." These themes were determined by The Gallup Organization as those that most consistently predict outstanding performance. The greater the presence of a theme of talent within a person, the more likely that person is to spontaneously exhibit those talents in day-to-day behaviors.
Did you know that 80% of all enterprise architecture (EA) initiatives are not completed because they fail to demonstrate “value added” to current business practices? I recently attended the Troux Directions Federal Users Conference, which made some excellent points on the theme: “How does EA add value?”
Enterprise architecture moves out of the back room and into the limelight in 2005. The intersection of three immutable forces — compliance, privacy, and regulatory requirements; an increase in application and infrastructure outsourcing; and continued pressure from business concerns to both cut costs and deliver increased value — will elevate conversations about architecture within the organization. Unfortunately, politics, staffing, and overblown processes will prevent most organizations from taking advantage of the opportunities presented.