When I tell people I’m a Business Architect, I am normally met with one of two reactions;
utter bewilderment or
an assumption that I design buildings.

The first is understandable, but whilst I’m definitely not qualified to design buildings, the second reaction is closer than people realise.

What do they do:

One of the most important activities of a Business Architect is the Target Operating Model and this is where the analogy overlaps with a more traditional architecture. At the risk of massively over-simplifying their role, architects design buildings to meet a brief – they specify the layout and materials, understand how the building will fit into the wider space and environment and they will also ensure regulation is met and create a blueprint to be used by the builder. Furthermore, they spend time with their customer to understand how the building will be used and advise on constraints and opportunities in order to create something fit for purpose, which ultimately meets the customer vision.

For business architecture, the architect will use an organisational vision to create a Target Operating Model (An Operating Model is not a Business Model) which in turn designs the building blocks of the organisation to enable it to achieve this vision. There are various models available, but the building blocks will include dimensions such as people, capabilities, processes, business channels, IT and data. There will be internal constraints to operate within, such as finance budgets and governance and of course external and environmental considerations such regulation, legislation and competing companies. Like buildings, Operating Models should be fit for purpose and enduring but also need to be regularly assessed to see if walls need to be removed or roofs repairing. One important point – “enduring” shouldn’t be mis-read as rigid or inflexible and if needed both buildings and operating models can be demolished to create something better.

Having a Vision:

One thing you may have noticed is the strong dependency on the customer brief or the organisational strategy. As with anything, it’s important to know where you are heading and have a clear vision of the destination. There is no point in building a hospital when a school is required. The same is true for organisational operating models as the model needs to describe the building blocks needed to move the organisation forward and turn the strategic dials in the right direction. For example, an organisation selling low-value, repeat sale products will require very different processes and channels to one that is selling bespoke high end products.

Conclusion:

So that is Operating Models in a nutshell and why they matter. By thinking about the elements of what makes up an organisation as building blocks, this can help unlock the value provided by business architecture.
We would love to hear your thoughts. Have you considered how business architecture can help you build your organisation to realise your vision? Or were you confused as to what Business Architects do? If you’d like to talk more, please do get in touch with us at Avantix here