Architecture of an Organization: Building Blocks of an Enterprise (Business / Government)
The architecture of a business or government is a living part of the organization, one that documents what the organization is intended to be, how it is to operate, and where actual performance measures are established, monitored, and acted upon. By positioning the architecture in this manner and by focusing on the business, performance indicators, revenue / appropriations, and cost, one caters to the business community, customers, and suppliers. This is depicted in Figure 1: The Architecture of an organization as the Heart and Brain.
Just as one zones a city and then architects the buildings within a city, we document the business by Zoning the Business, Architecting the Capabilities that comprise the Business, and Engineer the underlying details of Doctrine, Organization, Training, Materiel, Leadership, Personnel, and Facilities (DOTMLPF) of each Capability. But In order to zone a business, architect capabilities, and engineer DOTMLPF, one needs to understand the Building Blocks of a business.
Building Blocks
This form of architecture does entail documenting the way the components of the business are organized and integrated, but there needs to be some consensus on the primary components (Building Blocks) of a business. In a previous blog, Defining Architecture and Engineering and its role in Business Operations, we talked about some large grained and high order building blocks. We introduced the idea that a business / government is composed of functional areas which are either a Business Line (operating unit) or a Business Area (non-operating unit). We also talked about Capabilities as large-grained activities performed by and germane to a Business Area / Line.
- Business Areas are organizations that conduct back-office functions that keep the business running. They are also referred to as Cost Centers and Non-Operating Units. Business Areas are work horses that support the Business Lines so that the business lines can focus on their customer facing responsibilities.
- Business Lines are customer facing organizations that have responsibility for profit and loss. Business Lines are also called Operating Units.
These Business Areas / Lines and the smaller grained building blocks that comprise them are documented in the architecture repository and the resulting structure and outputs from a business point of view. Each of the Business Areas and Business Lines have Capabilities germane to the Area / Line. These Capabilities are architected, and the resulting structure and output is as depicted in Figure 2: Model depicting Capabilities by Business Area / Line.
We refer to this as a zoning map, but it doesn’t matter what it is called, call it a model or a drawing. It is an example of applying the building block concept to document and segment the business / government. Building blocks that resonate with businesspeople. A model of this sort is created to show the association and alignment of Capabilities to Business Areas and Lines. This sets the stage and provides a context for the other smaller grained building blocks to be documented, right down to the Key Performance Indicators. We’ve found that businesspeople appreciate the intuitiveness of the building block concept and in particular building blocks that are familiar to them.
Conclusion
Whether one is just launching a business or a new governmental agency, architecture development is a management tool that provides a sustained view of the business, what it is and how it is to perform. One cannot Zone a Business, Architect Capabilities, or Engineer DOTMLPF without understanding the Building Blocks of a business / government. This is true whether one is architecting a house or a business capability. Can you imagine someone trying to build a house when they don’t know what rebar is or what a 2x6 is? The outcome is not likely to be a success.
The Architecture of a business, in its’ noun form, is fundamentally data and information about the Building Blocks of the business, including information about how the blocks are interconnected. The components of a successful architecture and engineering endeavor are typically minimized or overlooked. As a result, architecture and engineering efforts fail and get a bad rap. We believe that each of the components presented here is a critical success factor not to be excluded.
