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Standing up a Business Capability Management Office: a Report from the Field Todd Sicard Business Capability Management Director, Blue Cross Blue Shield of Minnesota

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Standing up a Business Capability Management Office: a Report from the Field Todd Sicard Business Capability Management Director, Blue Cross Blue Shield of Minnesota STANDING UP A BUSINESS CAPABILITY MANAGEMENT OFFICE: A REPORT FROM THE FIELD TODD SICARD BUSINESS CAPABILITY MANAGEMENT DIRECTOR, BLUE CROSS BLUE SHIELD OF MINNESOTA The Business Architecture Summit THE BUSINESS ARCHITECTURE SUMMIT 12/06/2018 1 ABSTRACT Blue Cross Blue Shield of Minnesota has newly created a team of three to perform capability management functions for the enterprise. Since April 2019, this team has worked to define & introduce themselves, develop baseline models & practices, and gain traction & deliver value. Through the progress forward, there have been wins, misses. Using MN's experiences as a touchpoint, this will be an interactive session sharing experiences and lessons learned. Laugh, cry, cringe, and cheer - but most of all - learn! OUR CORPORATE CONTEXT New concept of a “Stella Health” umbrella with an overarching mission Fundamental, underlying technology swap & pivot Company’s been changing operational platforms for the past few years Accumulating business & technical debt New leadership New strategy OUR SCENARIO New department / new role / new team / new leaders / new players All players have both industry and company experience (WHEW!) Some corporate experience with a capability model, mappings, and roadmaps …but that’s all entangled with "feelings" Corporation isn’t yet sure where we fit / how we fit / when we fit / why we fit …and sometimes we're not that far ahead of them! THIS. IS. INTERACTIVE. LET’S PRACTICE INTERACTIVE PRACTICE #1: TELL ME SOMETHING I DON’T KNOW INTERACTIVE PRACTICE #2: BE PROFOUND IN TEN WORDS OR LESS INTERACTIVE PRACTICE #3: LET ME FLIP TO THE NEXT SLIDE & MOVE ON THE BUSINESS ARCHITECTURE SUMMIT 12/06/2018 5 OUR OWN DOG FOOD: Key People Process Technology Information Performance Indicators Strategy Office People Process Tech Info KPI’s Business Vendors PEOPLE Leaders Vendor Cap Mgmt Mgmt IDEAS Good HR SME’s Better Best IT Finance Corp EMPO Dev Risk Mgmt Collaboration & boundaries People Process Tech Info KPI’s CAPABILITY PROCESS Model & Understand Assess Analyze Roadmap Align KEY POINT Understand direction and Identify the core and Find the gaps in each Evaluate each capability’s Determine 1) what gaps are to expected outcomes. supporting abilities that are capability’s current readiness strategic placement, size, and be filled over time to achieve needed. for the end state. gaps. interim and end states; 2) which capabilities should be internal. WORK PRODUCTS 1. Engagement outline 3. Target capability model 5. Raw assessment scores 8. Capability strategic 12. Capability Roadmap 2. Solution model w/ 4. Impact to Enterprise 6. Raw heat map & gaps alignment 13. Build v. Buy minimum viable product Capability Model 7. Raw assessment notes 9. Capability weighting Recommendation (as needed) 10. Weighted heat map 14. Capability Assessment 11. “Key” gaps to MVP & ideal Summary PROCESS: IDEA TO INITIATIVE People Process Tech Info KPI’s Strategy Idea LOB / P&L LOB / P&L Idea LOB / P&L Tactics Idea Idea Miracle Tactics Tactics FUNDED EXECUTION Idea Idea Client & Marketplace Idea THE BUSINESS ARCHITECTURE SUMMIT 12/06/2018 9 People Process Tech Info KPI’s TECHNOLOGY Surveys: Teams Forms, Perceptix, Survey Monkey Visualization: Visio & Access/Excel, Sparx Metadata: Excel, Word Model: Access, Sparx Publishing: PowerPoint People Process Tech Info KPI’s INFORMATION It is Known It is Discovered It is Analyzed Enterprise capability model & Scope, objectives, success criteria, Capability strategic alignment metadata solution outline Gap relative impact Strategic goals & alignment Current, interim, and final states =f(readiness, relative size, strategic alignment) Gaps & marketplace demands Subject area capability models Build v. buy Existing investments Capability current state and gaps Roadmap: gap to state Existing assets: systems, data, Maturity v. Readiness vendors, suppliers, etc. People Process Tech Info KPI’s INFORMATION MODEL StellaStellaStella Strategies StrategyStrategy Business Goal(s) Operating Models Capabilities Solution Models ...what we need to Weighting & Stratification be able to do... End State Inter-Dependencies Build v. Buy InterimInterimInterim States States States #2+ #2+ Minimum Viable Current State ...the difference between current & future... Readiness Gaps ...what s needed for each state... People Process Technology ...what s needed when.. CapabilityCapabilityCapability Initiatives,CapabilityCapability Programs, IncrementsIncrements Increments& Projects Information Increments Increments KPI s Roadmap Execution Weighting & Stratification Inter-Dependencies People Process Tech Info KPI’s KPI’S % Senior leadership socialization, one-on-ones, etc. # Engagements $’s of scope within engagements % Utilization prior to funding request Demand v. capacity What’s the value of a good decision, well informed? What’s the value of a bad decision avoided? NEXT STEPS Take work where we can, provide actionable value and succeed Continue to practice, learn, and mature ourselves Develop our own capability model? Models Metadata Assess Analyze APPENDIX THE BUSINESS ARCHITECTURE SUMMIT 12/06/2018 15 Key Performance Information Readiness People Process Technology Indicators Assessment Defined q Fully Skills Effectiveness Ease of Use Accessibility Meets q Mostly Training Documentation Meets Current & Accuracy Expectations q Some Future Needs Timeliness Optimization q None STRATEGIC ALIGNMENT 2.1 This 4.1 Cool 3.1 That 4.2 Super Cool 3.2 The Other 4.3 Hyper Cool 4.4 Tesla Cool 4.5 SpaceX Cool Strategic Advantage Capabilities Capabilities High value but little direct Create differentiating Strategic Advantage financial impact distinctions and financial performance Value Value Impact Business Necessity Essential Capabilities Capabilities Necessity Essential Internal and/orInternal External Not seen driving financial Drive financial Value performance or value performance but not value Financial Financial Impact 1.2 Must 1.1 Optimize Lower Costs / Higher Revenue 1.3 Gotta 2.2 Squeeze 1.4 It s the Law 2.3 Spend to Save THE BUSINESS ARCHITECTURE SUMMIT 12/06/2018 17 ROADMAP RADAR (TOGAF) THE BUSINESS ARCHITECTURE SUMMIT 12/06/2018 18.
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