Every measure selected should be part of a link of cause-and-effect relationships, and ultimately affect the growth and long-term perspective of the organization.
Without properly aligning the objectives with the performance indicators, monitoring KPIs will not add much value. In practice, KPIs should stay focused on measuring some cohesive business goals of the Enterprise Architecture.
Business strategy-execution progress measurement: Enterprise Architecture helps to leverage multi-choices of strategy. Thus, the velocity and effectiveness of the strategy execution are the important parameters you can measure EA. The strategy execution progress is achieved through a series of interdependent decisions and actions run in the iteration and can be measured by taking into account both financial and non-financial measures, process improvement, past outcomes, as well as indications of future performance. How fast you are completing the various operational tasks, can be measured and taken as one of the indications of the strategy velocity and execution success, and EA KPI.
EA KPIs measurement approaches keep track of the coherence of strategy execution and the progress made toward the predefined set of strategic goals, in a consistent manner. Outcome-related KPIs are as relevant as, even more relevant than process-related KPIs, in order to measure the end to end business performance effectively, showing how the data, directly and indirectly, affects productivity, performance, and profitability at strategic areas, the business benefit or outcomes. The valuation is based on financial metrics and projections for future revenues, cash flows, and income, etc.
Business Culture Index: The carefully crafted and well-intended strategy fails in the execution phase if culture is weak because the shared value and buy-in at all levels of the organization are misaligned, EA is a great culture shaper. The business culture index is one of the critical KPIs for evaluating culture effectiveness and EA maturity. It is important to design and validate a culture assessment instrument that measures culture from different perspectives, such as cultural constructs styles, or dimensions of culture.
A good culture can perhaps make an average strategy working, but a bad culture will fail a good strategy. Culture is difficult to measure because it’s not only one dimension such as financial or a technical point, but a multidimensional assessment. It's not usually possible or sensible to quantify how much organizations are down to cultural change (too many factors, including collective mindset, attitude, or behavior, or external market conditions). Also, it’s hard to measure culture directly, there are logical steps in evaluating its impact indirectly. There are tools and techniques which can help to assess its impact.
Cost Optimization: There is never "enough" to optimizing operations and fine-tuning differentiated business capabilities. EA is a practical tool to increase visibility and transparency of the legacy environment through eliminating something which is not used and saving effort on maintaining it, optimizing varying business costs such as operational cost, financials, technical debt - a calculation of the cost to fix structural quality problems, vendor cost, information management cost, or people cost, etc.
EA KPIs measurement approaches keep track of the coherence of strategy execution and the progress made toward the predefined set of strategic goals, in a consistent manner. Outcome-related KPIs are as relevant as, even more relevant than process-related KPIs, in order to measure the end to end business performance effectively, showing how the data, directly and indirectly, affects productivity, performance, and profitability at strategic areas, the business benefit or outcomes. The valuation is based on financial metrics and projections for future revenues, cash flows, and income, etc.
Business Culture Index: The carefully crafted and well-intended strategy fails in the execution phase if culture is weak because the shared value and buy-in at all levels of the organization are misaligned, EA is a great culture shaper. The business culture index is one of the critical KPIs for evaluating culture effectiveness and EA maturity. It is important to design and validate a culture assessment instrument that measures culture from different perspectives, such as cultural constructs styles, or dimensions of culture.
A good culture can perhaps make an average strategy working, but a bad culture will fail a good strategy. Culture is difficult to measure because it’s not only one dimension such as financial or a technical point, but a multidimensional assessment. It's not usually possible or sensible to quantify how much organizations are down to cultural change (too many factors, including collective mindset, attitude, or behavior, or external market conditions). Also, it’s hard to measure culture directly, there are logical steps in evaluating its impact indirectly. There are tools and techniques which can help to assess its impact.
Cost Optimization: There is never "enough" to optimizing operations and fine-tuning differentiated business capabilities. EA is a practical tool to increase visibility and transparency of the legacy environment through eliminating something which is not used and saving effort on maintaining it, optimizing varying business costs such as operational cost, financials, technical debt - a calculation of the cost to fix structural quality problems, vendor cost, information management cost, or people cost, etc.
The business ecosystem becomes over-complex and interdependent. EA is a practical tool to navigate through business complexity. When selecting the right set of metrics for cost optimization and evaluating EA effectiveness, ask whether the metrics can reveal anything meaningful for the identified purpose, and ensure the management buy-in for the metrics collection processes. The goal is to improve the financial health of the company and the overall organizational maturity.
GRC: The goal of the GRC discipline is to ensure business effectiveness and efficiency. EA is a great tool for bringing up business logic, transparency, and establishing clear GRC standards for different aspects of the organization. It helps the management understand how the implementation of the strategy proposed will affect the existing business processes, roles, and responsibilities, and how much it will cost to change the processes in order to establish good governance and risk management discipline.
In a well-aligned and architected organization, governance must be assessed at the enterprise level and managed holistically. The thing that the management would like to see is what exact benefits it will bring to the business at the end. It doesn’t matter what the drive is. One of the key measures of GRC success would be its utilization. These GRC systems can provide a lot of data, neither of which is valuable or useful if the organization doesn't utilize it. Not only is the implementation utilized, is it being maintained and what advancements are being made to the program.
Sustainability: The modern digitized technologies are moving our society into the lower carbon, and sustainable economic era. Sustainability is about minimizing the usage of non-renewable resources, optimizing resource usage, cutting emission and recycling waste, etc. EA can play a pivotal role in orchestrating the energy-efficient, sustainability-savvy, and resource-optimized organization, and become advocates and educators for corporate-wide environmental sustainability initiatives.
Sustainability leaders embed real, measurable, ongoing commitments to sustainability practices as a strategic differentiator, going beyond the immediate benefits of compliance, obligations, and efficiency. The well-defined sustainability KPIs help to measure how well the business efforts for reducing energy use & waste & emissions in operations. By applying EA as a useful tool, sustainability is embedded into key business processes, and the business makes decisions with an integrated view that blends financial, environmental, and social performance, to gain business insight, with which to manage the risks and opportunities in the future.
A set of possible measurements for EA is perhaps very large. This is partially because EA is the glue between strategy and execution, Thus, the main principle of selecting and measuring EA KPI is: You select the critical few, beginning with the end in mind. Every measure selected should be part of a link of cause-and-effect relationships, and ultimately affect the growth and long-term perspective of the organization.
GRC: The goal of the GRC discipline is to ensure business effectiveness and efficiency. EA is a great tool for bringing up business logic, transparency, and establishing clear GRC standards for different aspects of the organization. It helps the management understand how the implementation of the strategy proposed will affect the existing business processes, roles, and responsibilities, and how much it will cost to change the processes in order to establish good governance and risk management discipline.
In a well-aligned and architected organization, governance must be assessed at the enterprise level and managed holistically. The thing that the management would like to see is what exact benefits it will bring to the business at the end. It doesn’t matter what the drive is. One of the key measures of GRC success would be its utilization. These GRC systems can provide a lot of data, neither of which is valuable or useful if the organization doesn't utilize it. Not only is the implementation utilized, is it being maintained and what advancements are being made to the program.
Sustainability: The modern digitized technologies are moving our society into the lower carbon, and sustainable economic era. Sustainability is about minimizing the usage of non-renewable resources, optimizing resource usage, cutting emission and recycling waste, etc. EA can play a pivotal role in orchestrating the energy-efficient, sustainability-savvy, and resource-optimized organization, and become advocates and educators for corporate-wide environmental sustainability initiatives.
Sustainability leaders embed real, measurable, ongoing commitments to sustainability practices as a strategic differentiator, going beyond the immediate benefits of compliance, obligations, and efficiency. The well-defined sustainability KPIs help to measure how well the business efforts for reducing energy use & waste & emissions in operations. By applying EA as a useful tool, sustainability is embedded into key business processes, and the business makes decisions with an integrated view that blends financial, environmental, and social performance, to gain business insight, with which to manage the risks and opportunities in the future.
A set of possible measurements for EA is perhaps very large. This is partially because EA is the glue between strategy and execution, Thus, the main principle of selecting and measuring EA KPI is: You select the critical few, beginning with the end in mind. Every measure selected should be part of a link of cause-and-effect relationships, and ultimately affect the growth and long-term perspective of the organization.
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