Jim Alexander KPMG LLP

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KPMG LLP (CANADA)
Complexity and ChangeBringing Clarity to the
Boardroom Table
ADVISORY
Jim AlexanderKPMG LLP
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Complexity
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Simplicity
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Complexity Change

• Change
• Too many changes can upset the balance
• Cant complete before next group of pressures

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Change Clarity

• Changes
• Understanding the relationships

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Drivers of Public Sector Change

• Macro-level
• Economic shifts
• Political shifts (new leadership/governments)
• Social (e.g. demographic, education, generational
  shifts)
• Conflicts and natural disasters
• Efficiency and Effectiveness
• Increase relevance, responsiveness decrease costs
• Building and Maintaining Trust

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Public Sector Value Chain
Strong services internally and externally
contribute to confidence in the public service
Internal Services
Engaged Supported Employees
Citizen Service Satisfaction
Trust Confidence
External Services
Modern and Transformed Government
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Change is more Challenging in the Public Sector
Because

• Public enterprises are more complex than private
  (1-2 orders of magnitude)
• Public enterprises have a duty to address all
  knowable implications of their policies and
  actions
• Public enterprises use very different business
  paradigms and semantics
• guardian values vs. merchant values (Jane
  Jacobs)
• Equity and access vs. customer profitability and
  delight
• Programs vs. markets citizens vs. shareholders
• Outcomes and impacts vs. market share and profit
• Public enterprises collaborate and compete under
  different constraints compared with the private
  sector

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Challenge of Scale Complexity
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The Foundations of Successful Transformation
Execute Implement
Educate Build Capability
Elaborate Plan
Envision Design/Architect
Evaluate Assess

• Success requires
• Long term perspective and context but short
  term progress
• Progress in the most critical areas
• Efficient use of public funds
• Achieving multiple outcomes (e.g. cost savings,
  capacity building, private sector involvement)

and can only be achieved by design
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Enterprise Architecture

• Use of structured methods to plan and design
  complex business changes.
• Alignment
• the design of a business and its critical
  resources with its strategic vision
• Uses
• The business case for strategic change
• Innovations in business strategy, operations or
  supporting technology
• Changes to enterprise supply chains or delivery
  channels, including shared services, outsourcing
  and off-shoring
• The business value of investments in information
  and technology
• An emerging best practice within governments and
  large corporations across the world
• Canadian approaches are world-leading on the
  implementation of EA reference models in public
  sector transformation projects

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How do Organizations drive Innovation?

• CIOs and IT organizations what do you bring?
• Innovation needs context
• Perspective
• A focus on outcomes
• From Vision to pragmatism
• .you bring capacity to deal with complexity

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Complex Change.Requires a Blueprint and a
Roadmap
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The Governments of Canada StrategicReference
Model (GSRM)

• A common approach to viewing the business
• Provides a consistent definition of and
  structural framework for programs, services and
  the value they deliver
• The ability to consistently categorize allows for
  rich analysis based on these consistent
  groupings
• Originally developed for use in municipalities,
  and used successfully in provinces and the
  Federal Government

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Models to Describe the Enterprise
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Enterprise DesignContribution to the Change
Agenda
Program Modeling
Value Chain Modeling
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Enterprise Business Architecture in a Gov 2.0
World

• Enabling client centric service delivery
• Potential for seamless, no-wrong-door access to
  government services from client perspective

• Enabling provider community based delivery
• Emergence of cross-program, cross-sector and
  cross-jurisdiction communities of program
  managers and service providers
• To collaborate in policy development, program
  design, service management and service delivery
• Based on overlapping accountabilities for target
  groups, needs, outcomes and outputs

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Enterprise Architecture a roadmap in an
increasingly collaborative world

• The challenge
• Requirement for program managers across
  organizations and jurisdictions to collaborate in
  achieving better outcomes for overlapping target
  groups or needs

• Where clarity will be needed
• Accountability of program manager for outcomes
• Role of community-based reference models
• Clarifies and harmonizes definitions of target
  groups, needs and outcomes
• Sharing of best practices in policy making and
  program design, development, implementation and
  management

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Enterprise Architecture Portfolio Planning
Support Effective Change Governance
Architecture provides the blueprints
Portfolio management provides the roadmap
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Enterprise Architecture Portfolio Planning
Support Effective Change Governance

• Governance determines
• Which projects receive

• Based on architectural blueprints and emerging
  priorities

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Enterprise Architecture Portfolio Planning
...Support Effective Change Governance

• Without project portfolio management
• Enterprise architecture
• shelf-ware

Without architecture Project portfolio
management investment decisions in the dark
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Enterprise DesignContribution to the Change
Agenda
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Contact Information

• Jim Alexander
• Senior Principal, Enterprise Architecture
• KPMG LLP
• [phone]