SOA Governance: Step By Step

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SOA GovernanceStep By Step

• Jeff Schneider, CEOEd Vazquez, VP Business
  Innovation

Jeff Carlson, Enterprise Architect Pfizer Global
Research and Development
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Agenda

• What SOA Governance is
• Why We Govern SOA
• How We Govern SOA
• Defining Governance And Styles
• Governance And Policy Lifecycles
• What We Govern in SOA
• Assets, Processes And Portfolios
• Governance In The Business - IT Lifecycle
• Getting Started in SOA Governance
• Assess, Build, And Operate

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Step 1 Define What SOA Governance is
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SOA Governance Defined

• SOA Governance balances enterprise needs and
  departmental goals to create a framework for
  delivering service oriented business solutions.
• It defines individual and group responsibility
  and accountability.
• It defines a structure for defining, amending and
  enforcing governance policies.

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Step 2 Determine Why We Govern
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SOA Governance Why?

• SOA Governance Strategies create A sustainable
  competitive advantage.
• In essence, strategy is the allocation of scare
  resources (people, money, time, etc.).
• SOA Governance is used to ensure effective
  allocation of resources to achieve desirable
  results.
• SOA Governance
• Creates Economies of Scale
• Defines a System of Priorities
• Works to achieve a Network Effect.

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SOA Governance creates Economies of Scale

• Economies of scale reduces unit costs.
• We must actively seek synergies that present
  opportunities to create economies of scale.
• Multiple groups want to take advantage of
  something
• Shared electricity, shared water, etc.
• Synergy requires commonality.
• Need to create a standard way to deliver water,
  electricity, etc.
• The construction code, the plumbing code, etc.
• Sharing requires governance.
• Why do I pay more for electricity?
• Ill just run my own electricity lines

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SOA Governance defines a System of Priorities

• Governing requires visibility into initiatives.
• By viewing current and future projects you can
  prioritize business initiatives.
• Priorities may vary based on the knowledge that
  multiple parties are requesting.
• Financial Return and Investment will definitely
  vary if initiatives are subsidized.
• New ROI models will affect new priorities.

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SOA Governance works to achieve The Network Effect

• Shared services create a network effect.
• Metcalfes Law The value of the network is
  proportional to the square of the number of users
  of the system.
• Acknowledge both clients and services.
• Acknowledge valuable services (not all are
  created equally).
• IT must create mechanisms to encourage shared
  services (carrot and stick).

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Why do we avoid Governing?

• Governance requires resources cost.
• Diseconomies of scale increase unit costs.
• As communication complexity grows, so does the
  effort to complete the task.
• Silver Lining Recent studies by MIT School of
  Business show that companies with strong
  governance gain greater value from their IT
  organizations up to 20 more ROA.
• Governance implies rules, committees, enforcement
  and rework.
• These items often slow down project progress in
  the short term.
• Silver Lining Good governance can expedite the
  adoption rates of new SOA technologies and tools
  and expedite program and project deliverables.
• We must find balance between governance and chaos
  to increase economies of scale while avoiding
  diseconomies of scale.

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Step 3 Determine How We Govern
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A SOA Governance Framework
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SOA Governance Decisions

• Evaluate the following to create a SOA Governance
  model that is right for your organization
• Formal vs. Informal
• Centralized vs. Decentralized
• Visibility vs. Control
• Incentives vs. Punishment
• Manual vs. Automated

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Formal vs. Informal

• No Governance
• Purest form of Informal Governance Often results
  in Random SOA or SOA Gone Wild
• QTAY What are the SOA policies, processes and
  practices that need to be governed?
• Self Governance
• Mixture of Formal and Informal Some tasks and
  activities governed some not
• SOA Governance is as weak as the weakest link in
  the chain.
• QTAY Do I need to inform anyone when I make a
  SOA policy or process change?
• Formal Governance
• A real or virtual organization exists that is
  devoted to the promotion of SOA programs and
  causes that is accepted as fundamental part of a
  SOA culture.
• Clear job titles / responsibility support SOA
  Governance activities.
• QTAY How do I get involved in giving my input on
  SOA policy, practice, and process issues?

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Centralized vs. Decentralized

• Centralized A single defined, physical team that
  is chartered with SOA Governance.
• 10 people in a room making decisions
• Decentralized Multiple groups responsible for
  making specific decisions relative to a knowledge
  domain.
• 10 teams for 12 domains making decisions relative
  to themselves.
• QTAY Does an organization (or multiple
  organizations) exist that can take responsibility
  for SOA Governance topics?

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Visibility vs. Control

• Visibility Simply being aware of the governance
  activities in the organization.
• Control Influencing or regulating the governance
  activities in the organization.
• Use the right level of governance for your
  organization
• Monitoring - Awareness, Policy Definition
• Regulating - Definition, Enforcement
• Differentiating - Realizing Synergies

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Incentives vs. Punishment

• Create and formalize organizational incentives
  that align with governance objectives and tasks.
• QTAY Is my bonus plan or performance appraisal
  tied to compliance with any SOA governance
  policies or processes?
• Align incentives with level of governance you are
  seeking.
• QTAY What do I get if I follow a stated policy
  or process?
• Align response costs with level of governance you
  are seeking.
• QTAY What are the costs of not following a
  stated policy or process?
• Clearly communicate incentives and response costs
  with stakeholders.
• Dont move to a charge-back system too soon.

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Manual vs Automated

• Dont start with the technology, start with your
  goals and objectives.
• Start with Manual Governance.
• Define policies, processes, structure, roles and
  responsibilities first. Then, measure compliance
  and understanding.
• Understand that not all governance tasks can or
  should be automated.
• QTAY Where can my job functions provide
  governance?
• In time, Automate simple, manual governance
  tasks.
• Automation of governance tasks will occur over
  time.
• Resources (headcount) will be required to
  manually govern some tasks.
• Measure Automation costs benefits to support
  future activities.
• QTAY Are there systems or tools that can
  automate some governance functions?

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Step 4 Determine What We Govern
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Governing Targets

• Not everything needs to be governed.
• Focus on conflicting interests between parties.
• Portfolios Prioritize the choices.
• Process Standardize processes and activities.
• Assets Govern the work products.
• Services, components, etc.

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Standardization And Sharing

• Weve had success in the past creating a shared
  environment and platform.

Core And Common
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The Same Challenge

• Now we must extend that approach to incorporate
  SOA.

Operating Systems
Development Platforms
Messaging
IT Workflows
Network
Technology Services
Information Models
Process Models
Business Services
Data Services
Core And Common
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Refactoring

• Projects refactor to core and common.

Project Lifecycle
Business Problems
Solution Requirements
Business Services
Technology Components And Services
Data Services
Solution Architecture
Business Processes
Shared Asset?
Reuse Asset?
Technology Services
Information Models
Process Models
Business Services
Data Services
Core And Common
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Adopting Governance

• Inserting the Governance Institution

Projects
Common Functionality?
Common Non-Functional Requirements?
Governance Institution
2nd Sponsor?
Cost of making reusable vs. latent cost of not
making reusable
Core And Common
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Governed To Core And Common

• As reuse increases, new challenges emerge.

Projects
Governance Institution
Support / Ownership Model Defined
Functionality Non-Functionally Abstracted
Core And Common
Asset brought up to Code (standards, etc.)
Subsidized operating model
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Governance Mechanics Model A Lifecycle Approach

• A good model or theory does two things
• It groups important phenomena into categories,
  and, within categories, it makes statements of
  cause and effect.
• - Harvard Business Review, November 2006

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Governing Service Integration Portfolio Analysis

• Cause
• Governance is required in this SOA Lifecycle when
  there is no clear understanding of how service(s)
  and integration(s) are aligned with Business and
  IT functions and objectives.
• Effect
• Once governance is applied in this area, there is
  a framework and accountability matrix around the
  people, processes, and tools required to align
  service programs and projects with business and
  IT principles and objectives.

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Governing Service Integration Planning

• Cause
• Governance is required in this SOA Lifecycle when
  there is no clear understanding between the
  relationship, documentation or definition between
  service(s) and consumer(s).
• Effect
• Once governance is applied in this area, there is
  a framework and accountability matrix around the
  people, processes, and tools that clarify the
  relationship between service build and service
  integration lifecycles.

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Governing Service Build

• Cause
• Governance is required in this SOA Lifecycle when
  there are issues and constraints around
  delivering services into production.
• Effect
• Once governance is applied in this area, there is
  a framework and accountability matrix around the
  people, processes, and tools that are responsible
  for delivering services to the organization.

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Governing Service Integration Discovery,
Documentation, and Definition

• Cause
• Governance is required in this SOA Lifecycle when
  there is no clear understanding of what
  service(s) and integration(s) have been
  delivered, if theyre reusable, and what the
  service(s) do.
• Effect
• Once governance is applied in this area, there is
  a framework and accountability matrix around the
  people, processes, and tools that are responsible
  for defining what service(s) are available to the
  organization and how they can be consumed.

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Governing Service Integrations

• Cause
• Governance is required in this SOA Lifecycle when
  there is no clear understanding of how
  integration(s) are delivered and how integrations
  should occur (policies and best practices).
• Effect
• Once governance is applied in this area, there is
  a framework and accountability matrix around the
  people, processes, and tools that are responsible
  for consuming service(s).

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Governing Service Integration Promotion
Marketing

• Cause
• Governance is required in this SOA Lifecycle when
  there is no clear understanding of how service(s)
  and integration(s) are communicated and presented
  internally and externally.
• Effect
• Once governance is applied in this area, there is
  a framework and accountability matrix around the
  people, processes, and tools that are responsible
  for educating internal and external groups about
  the organizations service(s) and integration
  capabilities and the value SOA provides.

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Governance Lifecycle Roles
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Getting Started
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Scoping Governance In

• Make SOA Governance part of your SOA program.
• You cant hide this one it must have teeth.
• The governance program must be granted the
  authority and resources.
• Run a standard SOA Governance effort.
• Assess current state.
• Build future state.
• Execute SOA Governance improve as needed.

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Assess Current State

• Know where your currently at with regard to SOA
  and Governance
• How formal is governance currently?
• Does everyone understand what it is and their
  role in it?

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Build It

• Tailor the Governance Framework to meet the needs
  of your organization.
• Identify roles, responsibilities and flows.
• Create the policies and communicate them.
• Modify SDLC process to incorporate governance
  steps.
• Identify success metrics revisit the program.
• Review tools to facilitate YOUR structure.

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Operate It

• Run pilot projects through the governance
  structure.
• Pilot governance, not tools.
• Start slow Finish hard.
• Run 10-25 of projects through flows initially.
• Plan on running 100 of projects through.
• Continually monitor for improvement!

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Thank You

• Questions?