Wednesday, January 21, 2009

How Enterprise Architecture initiatives can survive an economic downturn

As the economic downturn begins to have tangible consequences, IT executives have turned their eyes towards reducing costs within their organizations. Whenever there is an attempt at the executive level to control costs, the primary targets tend to be hardware replacement projects, non-strategic business projects and IT specific discretionary spending. Enterprise Architecture initiatives typically fit neatly into the discretionary spending category, and are one of the primary targets for cutting. I do not believe that cutting EA initiatives serves the enterprise in the short or long term.

The question then becomes how can we best justify Enterprise Architecture initiatives not as discretionary spending, but rather a necessity for future success? To do this we need to position the goals and objectives out of the strategic cloud and deliver tangible results to the organization. This can be done through a series of steps that adheres to the larger charter of the group, while executing tactically.

First, EA initiatives need to be repositioned in the view of the organization as strategically imperative rather that as discretionary “pet” projects. There are a couple of ways that this can take place. One way is to dig in and begin looking at the projects in the pipeline and evaluate the best way to get ahead of the project. We should be able to analyze the patterns that will need to be applied to the Architecture and ensure that the project is in line with the governance framework. Previously, this would have been a challenge, as projects were coming at a fast and furious rate. If cuts are taking place the rate of project approval has likely been slowed, and Enterprise Architects should have an opportunity to get a handle on projects further upstream in the project life cycle. By getting ahead of the curve, the Enterprise Architecture should be able to increase the speed at which projects are delivered and indentify potential trouble spots early on.

A second way is to look internally and identify any pain points that Enterprise Architecture may have caused when it was implemented in the life cycle of the previous projects. Were there any places that the Enterprise Architecture was deemed as a burden to the project teams, and they attempted to work around it in the name of “Getting things done.” By identifying these pain points, we can look to reevaluate where the governance points along the project life cycle became a source of resistance. The various teams that are responsible for the project methodology probably have some breathing room right now and will be willing to sit down and work with the Enterprise Architecture group to solve any issues. This approach will engage the project stakeholders and give them a sense of ownership in the EA initiative, thereby making it less likely that they resist the process once the project pipeline gets ramped up again. This approach will fit nicely in aligning with the strategic vision of tying the business to IT.

Another area that can be examined in the current climate is the application portfolio. Are there any applications not been performing in an optimal manner? Are there any applications that lack transparency or are inherently fragile, causing large amounts of pain when enhancements are implemented? Are there any internal or external interfaces that can be improved dramatically? The common thread between all of these improvements is that they deliver a measurable result and they will solve a problem. The beautiful part about attacking these problems is that applications built outside of the governance framework can be brought in line with established standards.

Now would be a great time to look at different avenues of innovation that were previously dismissed. A good example would be any interface that does address validation or performs some non mission critical task. If the interface was designed in a legacy type technology there could be a cost savings in moving that interface to a SaaS / cloud platform. The hidden costs in maintaining those interfaces most likely far exceed the cost of executing them in the cloud. Identifying those interfaces and experimenting with the replacement technology will not require a great deal of expense, and could act as a stimulus for further innovation.

In addition to the actions that should be taken now, there are a couple of initiatives that should be avoided. Right now is not the time to launch a large scale application portfolio inventory for the creation of a 5 year strategic plan. It is not that it is not valuable to have one, just now is not the right time. The key now is to focus tactically and deliver value. The worst thing the Enterprise Architecture team can do right now is nothing. With the environment slightly depressing, and projects slowing to a trickle, it can be easy to sit back and take a breather. That cannot happen. There is a perception in most organizations that Enterprise Architecture is unnecessary in the first place. By doing nothing, this will be taken as a sign by the naysayers that enterprise had nothing to add when times were good, and cannot help when times are bad.

Key Takeaways:
Look at the project pipeline and identify the projects that are business critical. Work with the business owners to get a head start on the projects that are going to be funded.

Evaluate pain points in the EA governance process as it relates to delivering projects. Work with the business to eliminate those pain points and establish joint ownership.

Take a look at the application portfolio and make someone’s headache go away.

Look at some lower cost versions of existing technology and see if they can cut costs

Do something! Now is not the time to just keep the lights on. It is easiest to be the brightest bulb when all others ones are dark.