Enterprise Architecture: a focus on Communication and Stakeholder Engagement

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Enterprise Architecture a focus on
Communication and Stakeholder Engagement

• Gail Verley Assistant Director Enterprise
  Architecture, FDIC

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Goals/Scope of Presentation

• How to obtain high level stakeholder involvement
  in EA governing processes and address major
  challenges for building stakeholder engagement
• Identify vehicles to communicate with EA
  stakeholders while ensuring the architecture
  accommodates the style and priorities of the
  stakeholder community
• Provide examples of how stakeholder involvement
  can lead to consolidation and better management
  of IT investments

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FDIC Organizational Profile

• An independent agency of the federal government
  that was created in 1933 in response to the
  thousands of bank failures that occurred in the
  1920s and early 1930s.
• Examines and supervises about 5,300 banks and
  savings banks.
• The FDIC is managed by a five-person Board of
  Directors, appointed by the President and
  confirmed by the Senate, with no more than three
  from the same political party
• 2006 proposed corporate operating budget-
  1,050,075,522
• 2006 IT Budget-170,336,799
• Currently employs 4,466 people throughout the US
  (267 IT employees)
• Washington, D.C. Headquarters (209 IT employees)
• 6 Regional Offices (58 IT employees)

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Architecting the FDIC A study in information
integration and business alignment
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Enterprise Architecture Run-down

• Architectural Framework
• blueprint of beginning to end progression
• integrates agreed upon goals to contrive a target
  architecture
• a continual process

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Architecture Process
Business needs and requirements
Eliminate Worthless Systems
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FDICs Architecture Framework
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Architectural Blueprint
Conduct Business Process Reengineering
Determine the scope and set strategy
Analyze the business
Analyze the information technology
Construct a business case to support business
needs
Execute OM strategy for minor recommendations
Implement solution and conduct management tasks
Conduct Business Process Reengineering
Define detailed solution architecture
Conduct data Standardization
Integrate major recommendations into investment
requests
Maintain the Blueprint and the architecture
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Enterprise Architecture Repository (EA-Rep)

• 2005 Accomplishments
• January Troux Contract Award
• Acquired Metis COTS product and implementation
  services
• April Pilot Project
• Completed pilot project
• Iterative deployment plan developed
• Assembled requirements and extended model for
  v1.0
• September Production Release 1.0
• Application, Project , and Organization Domains
• Retired CDR reporting tools
• Assembled requirements and extended model for
  v2.0
• December Production Release 2.0
• CDR retired/replaced
• Business domain, security layer added to
  applications domain
• Custom UI for Application Managers

• 2006 Scheduled Activities
• June Production Enhancement 2.6
• Enhance/modify security layer
• Augment search capabilities for applications,
  applications systems, and projects
• Update associated reporting
• October Production Release 3.0
• Upgrade to Metis 5.5, Client Tools 5.2
• Upgrade production hardware
• Extend model
• Implement Infrastructure and Data Domains
• Implement refinements to existing domains
• Expand Reporting
• Integrate FDIC-specific help facility
• December Troux Contract Ends

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Engaging the Stakeholder
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Who are Stakeholders?

• Defined an individual with a vested interest in
  the results of IT solutions and implementation.
• Include business owners, data owners, developers
  and technical infrastructure operational staff

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10 Ways to Maximize Stakeholder Engagement

• 1. Executive Management Buy-in
• 2. Connect Business Goals with IT
• 3. Link pay and performance with IT projects
• 4. Communicate Objectives Frequently
• 5. Clearly Defined Principles
• 6. Demonstrate Benefits
• 7. Govern from Different Perspectives
• 8. Active Leadership
• 9. IT gets a seat at the Business table
• 10. Recognition and Success shared by all

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Why is stakeholder engagement is important?

• Stakeholder engagement is critical to applying
  enterprise architecture EA principles and
  methodologies in order to achieve value from
  information technology IT investments
• Multi-layered perspectives and comprehensive
  strategies result from high levels of stakeholder
  engagement in EA, from a projects inception to
  completion
• Stakeholder experience and subsequent foresight
  of obstacles in respective program areas can
  prove invaluable to the smooth process toward
  target architecture.

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Application Rationalization Effort Example

• PROBLEM
• Many organizations accumulate large and
  technically diverse portfolio of systems
• Unmanaged, this portfolio is too expensive and
  unresponsive to change.
• The result, restricting the organization from
  taking on IT initiatives that are strategically
  important to its mission

• FDIC SOLUTION
• Engaged both the IT Department and Business
  Stakeholders in a systematic and joint effort to
  make targeted reductions in the inventory of
  applications
• This effort served to raise the awareness of
  staff and management throughout the FDIC of the
  life-cycle costs of applications and the
  increasing need for application integration and
  consolidation
• This allowed the FDIC implement several new
  enterprise-wide integrated applications that not
  only met the need to improve business operations,
  but at the same time, replaced older, stove-piped
  legacy applications.

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Corporate Data Sharing

• CDS Data Families
• FDIC Conceptual Data Model describes the
  relationships between FDIC's data across the data
  families and the entire enterprise
• The Collaborative Working Groups (CWGs) were
  established to verify that the data has been
  defined and categorized correctly in their data
  family.

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Bank Call Reports Use XBRL

• FDIC is one of the biggest proponents of XBRL
• 8,200 U.S. banks use XBRL to submit balance
  sheets and income statement reports.
• XBRL has proven its value All XBRL-tagged data
  received from banks was 95 accurate, compared
  with 70 accuracy before implementation
• An analyst who could handle 450 to 500 banks
  before implementation can now handle 550 to 600
  of them.

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Maximizing the Impact of the Stakeholder

• Ultimately stakeholder compliance with EA must be
  governed through a comprehensive system that
  divides responsibilities to take full advantage
  of individual strengths as well as increase the
  efficiency of the corporate structure
• There exist a few mechanisms to reach this end.
  Two of the most important and effective are
  Established Governance Systems and Business
  Metrics

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Governance Structures
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Governance Mapping

• A key step in the EA process is to establish a
  system of governance. One in which rules and
  order of operation are hashed out between
  relevant actors to meet the target architecture.
• Every Corporation is different, but the basic
  requirements for a healthy Governance body are
  similar to all

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Model Governance Structure
Requirements
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The Capital Investment Review Committee (CIRC)

• Comprised of Senior Level Division Directors
• Evaluate the impact of IT investment decisions on
  the Corporations capital investment portfolio
• Reviews proposed major investments and makes the
  final funding recommendations to the FDICs Board
  of Directors
• Indicates Success in integration of EA and the
  capital investment management process.

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FDIC Governance Bodies

• Capital Investment Review Committee (CIRC)
• CIO Council
• Enterprise Architecture Board (EAB)
• Collaborative Working Groups (CWG)
• Internet Coordinators Group
• Information Security Management Committee
• Technical Review Group
• Enterprise Architecture Advisory Forum

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Metrics
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Utilize Metrics

• Metrics guide architecture
• IT desirables are reflected in the IT metrics
• Measure accountabilities

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Metrics Importance

• Identify specific EA and Business related metrics
  early to guide decisions
• Enable the tracking and recording of data
  required to report results and evaluate the
  impact of EA related strategies

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Linking Business and IT via Metrics

• You need at least three kinds of metrics to begin
  establishing a linkage from the business needs
  and the implementation of them as guided by EA.
  Chris Curran March 21, 2005, Enterprise Architect
• 1. Business Alignment
• 2. EA Compliance
• 3. EA Governance

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Metric Types
EA Metric Definition Examples
Business Alignment Measures the number, completeness, and quality of business and IT capabilities delivered against those defined in the EA blueprint(s) Post implementation review that asks two questions. 1. Was the Benefit achieved 2. Has it met the Target Architecture
EA Compliance Measures the number of systems and projects in compliance with EA standards New technology to meet target architecture Amount of time to implement Applications retired reuse of standard services, patterns
EA Governance Measures the degree of participation and effectives of EA governance processes and practices Quarterly Investment Project Reviews Portfolio Review by CIO Council
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Lessons Learned by FDIC EA

• Work with and enable the business first- critical
  first step of any EA organization is to identify
  the problem/business need first and work
  cooperatively with Business Professionals to show
  the value of IT and EA setup to the Corporation.
• Optimize EA to enable organizational
  transformation- continuing on the theme of a
  complete and stated goal with a strategy to
  achieve that goal, EA allows, via open
  communication and cooperation between IT and EA,
  for a comprehensive evaluation of all business
  processes and IT involvement to maximize EA goals
  while serving IT purposes and business needs.

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Any Questions?...