Tuesday, February 28, 2012

(5) Capability Model

How do I get Master Data and Transaction to play nicely together? 

Master data 
Many of us are unaware that the two types of data must be treated differently.

The setup of master records have legal and financial implications that will produce the right results or in a worst case scenario;

  • May harm your companies reputation and brand.  
  • May cause defects in financial accuracy 
  • May cause legal action from an employee, customer, or supplier.  

Either of the above have the highest threat to your organization in terms of legal liability.

  • The assumption MUST be that these are the priority from a business continuity and recovery with zero data loss perspective.   
  • The non-conformance and noted findings on audit reports have the potential to produce the above external risk. 
External audit reports are required by the external board of directors.
The Board has several committees who are tasked with oversight of these activities.

  • The results assure the Board of Directors that their interest and guidance has been executed.  
types which will prompt an audit finding in both external audit types business and quality.

  • Any financial transaction must have an audit trail. 

How the information is referenced in every transaction?
Yes, people hardly realize the facts that party, offer and financial management data is sourced from master records and should represent a point in time.

Not be mixed with master data.   

Management Capabilities

  1. Master Data Management

Expense Transaction Capability 

  1. Priority Matrix
  • We can assume that Engineering and Marketing are the users or functions most represented in spend categories.  
  • We should not have many revenue capabilities related to these process owners.  
 "The role each plays in expenses MUST be as a consumer of the performance results as an outcome."
Any scenarios which allows either function to influence expenses transactions at any time preceding or post end of the period reporting;
  • Effective business process activities will require rework
  • The rework has a ripple effect from the point of introducing the defect; 
  • In this case each function will be forced to rework each transaction based on an adjustment.   

Lesson Learned
An expense transaction capability relies on the investment funds allocated appropriately to the charged account.    

In the past we as Business Process professionals have been directed to work with purchasing on the process diagrams or modeling.  We certainly will have this stakeholder as our primary.

My prescription to practice leads would be to ensure your scope includes each function and the associated inputs and outputs for each.  

Beyond Purchasing
Purchasing is the center of the process; however every function process owner will purchase.  The result "an expense" which will result in a "vendor invoice" and cost actual spent will be issued a payment to your vendor.  These activities represent the accrual process.

By ensuring inputs to purchasing have consistent process activities and a real picture of the Outputs or defects caused by inputs would adjust our perspective.   
Finance must approve all expenses before issuance of a purchase order.

HR must on-board all resource expenses processed as non-catalog expenses.

Understanding the way people are acquired for both temporary and consulting engagements ensures better control around access to internal networks.

Real World with Prezi

Customer Public Sector Branches

Public Sector Branches
Apply this structure to any state data management and governance model.

Outside In - The highway analogy

Wednesday, February 22, 2012


One page scenario

The following diagram represents a task or question raised in LinkedIn STW group.

My attempt to supply a simple example of a scenario.

The next blog post "sales program" offers an extension of how sales may leverage the same model to acquire senior level support to sustain a program.  

Tuesday, February 21, 2012

My Links: Sales Program using the risk type and new APQC Business Process

My Links: Sales Program using the risk type and new APQC Business Process

Pilot the Cradle to career model in Santa Clara County

  1. Public Education
  2. Good without Breaking Anything

Sales Program using the risk type and new APQC Business Process

Answering a question about the best way to describe a sales program to ensure management support by highlighting the system relationships.  

All parts of the system; with the components in the system that enable the system.  

A simple way to understand your program using a generic way to define the companies risk or strategy.

Components that make up system

  1. Make and Model of a Car or Vehicle 
  2. Supplier traveling South to build the vehicle
  3. Feedback loops through engineering and marketing who developed the supply and demand. 
  4. Exit criteria for South bound movement to Northbound supply.  
  5. Drivers the demand; acquiring the ready vehicle as part of the revenue stream (driver enters the highway traveling North).  
The approach and guidelines you are using to ensure all components and relationships have been holistically included in the program.     
  1. Fast Lane - Is the program targeting moving current inventory to make room for a maturing new line?  
  2. Middle Lane - Are you targeting a maturing offer to move into the fast lane?  
  3. Slow Lane - Does your program promote the right skills for every new offer or competitive advantage?  
The structure is designed in a way to promote the systems objectives.

Transparency and Accountability measures.  
Did the program meet and retain the correct lanes of travel based on the industry definition?
Did the supply meet the demand and therefore the model was fair? 

When a gap exist in a balancing loop you have a plan to adapt to the gap.

Balancing loops 
  1. Current state
  2. Desired outcome or condition
  3. Gap between these two
  4. How you are responding to the gap

We can assume that traveling South entails the parts of the system that your program relies on and this should include the way you've developed the sales plan and the sales forecast.

Feedback Loops
You are working with your partners in engineering and marketing to ensure the forecast will have a feedback loop into any improvements. 

Objectives of the program; fairness, recognize high performance, provide transparency, hold people accountable.

Assume you are promoting a make and model of a car; you are targeting ALL drivers and you are going to measure the effectiveness based on the car entering the highway.  

Group Editing Link

comappingloader.swf (application/x-shockwave-flash Object)

APQC Business Process Framework

Publish Address

Tuesday, February 14, 2012

Great work being done in System Thinking World forum on LinkedIn!

This forum group has the most engaging discussions to date.  Some of the worlds smartest and socially aware individuals I've ever had the pleasure to engage and have conversations with.

Outside In


Please take a look at some of the work we are doing.


Enterprise Model

Generic Business Structure Enterprise Model
Business Process Management
Business modeling
In support of 

  • Business governance-Imagine if you will-the only thing your people need to know; they are not touching these 5 capabilities and if and when you are you have a Community of Practice simulate the work for you.  
  • Business performance monitoring and measurement
  • Business Information Management
  • Business Integration
  • Business to Business collaboration,
  • Business to Customer collaboration
  • Business service agreements
  • Business security policy and management.

If you like what you see feel free to reach out and I'll get you connected with the forum group.  


Wednesday, February 8, 2012

Enterprise Model

Generic Business Structure Enterprise Model
Business Process Management
Business modeling In support of
    Business Process Management (OMG) with Lisa's Models  2012 (c) Copyright Lisa Marie Martinez

    Monday, February 6, 2012

    Part II - Business and Quality Management Systems

    Enabling Business and Quality Management System(s)
    Inserts a generic approach which works without disruption; allowing a consistent way to determine your cultural conditions based on your management and risk appetite. 

    Virtual Lines in the Sand or in this analogy the highway

    Any part of the world
    If you can imagine we have highways all over the world.  Therefore this prescription would be applicable anywhere in the world.  The signs on the highway may allow you to see different things upon exiting in any scenario.

    Any company in any industry
    Therefore you have an opportunity to apply this model to any industry.

    Risk Management and Entitlement for Access 
    Each industry and each company will have different levels of risk and at the least 3 different business scenarios.  Logical grouping of three levels of risk-High, Medium and Low in either direction of the highway, translates into slow lane for high, middle lane for medium and fast lane for low risk.

    Financial Statements
    Your offers through the development and design phases when the offer has been matured according to market definitions will be in your fast lane and reported to the Security Exchange Commission or regional agency of the same type as a foundational cost (expense) or sell (revenue) in summary.

    To ensure we never have a scenario where we might confuse the role of a supplier with customer and have the infrastructure to enable consistent access and entitlement for cases when the companies go to market strategy relies on a strategic alliance who has the role of both.  Our approach ensures we insert static supplier accounts on the south bound lanes of the highway for all cost related activities.

    Using the entry and exit of the highway to control the fact that a northbound traveler represents the customer and offer value measurements.  

    A new driver will acquire a vehicle of any make and model.  
    Based on the offers maturity (decided off road by various stakeholders including industry analyst); a vehicle (offer) merely applying logical or virtual groupings rather than assuming any forced constraints.    

    Design Patterns for any business model of any maturity
    Any business or technology user can assume you must build and invest before you can sell an offer.
    The lines we draw for the investment to develop, design, build and deliver an offer is an expense transaction capability with our supplier stakeholders; traveling SOUTH for a negative adjustment to your investment plan.

    In order to sell your offers you must have invested and supplied the value to begin your revenue streams we start with the sales goal inputs and assume the trigger to revenue streams begins with a developed sale plan with a direct customer.
    sales planning work streams.  

    • The line we must assume for north bound travelers should represent the revenue stream. 
      • We know a driver (customer) and vehicle (offer) will enter the north lanes and expect each company who adopts this approach will be in a position to inter operate their revenue according to quality standards with revenue recognition converging in the slow lane on high risk or new offers-NON-GAAP
      • While your SEC advanced types are in the middle lane-deferred revenue
      • Your resale and point of sale to consumers will travel in the fast lane.  Immediate revenue
      • for the new offers in the slow lane.  
    • Strategy is simply the vehicle and marketing creating the CUSTOMER CAPABILITY versus an enterprise architecture task to have value stream and mapping of capabilities as part of the internal Enterprise and Business Architecture.  
      • No change to technology strategy for this purpose
      • Some external dependencies may be proposed and warranted by industry trends. 
    The following supplies the graphical representation in a manner for both business and technology audiences to understand.  The concepts in a very abstract form.

    The details are going to follow in each subject. 

    Part Vi People Industry Specific prescriptions-If I were in education or the military branches of the government how I would transform to this model; The highway analogy applied to two vertical industry  types to show the way the model applies to any market.    Education Scenario
    Federal2 Healthcare coming soon 

    Saturday, February 4, 2012

    Part I - A candidate for an Outside In EA and BA

    An Outside In Candidate to simplify the business architecture and enterprise architecture.

    Transparency and Interoperability
    Across the industry we have so many solutions and varying degrees of maturity.
    The goal in this prescription supplies a common and generic approach to ensure Enterprise and Business Architecture value consistently for the companies primary external stakeholder requirements.

    Ensure financial and quality standards have been applied to the industry where the two most often converge.
    • Minimize the knowledge gap through a systemic approach to corporate policies.

    Virtual Boundaries 
    The people part of any organizational culture will require the introduction of known sequences of activities.  Recognition of the fact that each company will have slightly different task and different offerings.  

    New Value proposition for any Enterprise and Business Architecture practitioner
    Provides predictive and consistent reference architectures using event driven architectures to promote the expected behaviors first without constraints.

    Service Management Design
    The tactics used to promote the adoption of such a generic model enables any company to realize their service management strategy through the definition of your priorities around recovery time objectives and record retention.

    Configuration and Change Management 
    Core component for each of the service management work streams; highlights the financial and quality elements through the transition of tacit into explicit using industry and risk according to the industry.   Over time the dependency on tacit knowledge will be abandoned for the consistent methods designed into the system. 

    Incident and Problem Management 
    Inserts the blueprint for the consistent measurement of risk and problem ranking with a consistent reference architecture that will highlight the dependencies across technology for accurate assessment of incidents on the organization.   

    EA and BA Value 
    Quality and Agility with Resilient and Sustainable Business, Operational, Systems and Technology.

    Board of Directors and Officers
    Inserts the boundaries in a virtual or logical grouping of your corporate policies; allowing fact based decision making without forcing disruptive changes. 

    Stakeholder Communication Strategy Internal and External
    Internal - Value streams are dynamic and vary by functional team; this approach intends to supply a single point of reference for all future communications by inserting the known dependencies.   Ideally serving as the map to use for decision making based on the inputs and outputs across the boundaries whether hard or soft.
    Example; If marketing elects to make a data type change we must include sales who's systems must consume the outputs as their inputs to their work streams.

    People, Process and Technology - Change Management 
    A value stream to promote the known but often overlooked or left to the skill of each resource and their motivational factors which will often be subjective.  This prescription eliminates the unknowns on any proposed strategy or change by identification of a reference architecture that will promote the vital components of your configuration management domain.

    Impact and Dependency Scope on all strategy and future projects

    A capability to ensure the outputs from one function have consistently been transparent in any supplying visibility to all impacted stakeholders for any future changes to all impacted stakeholders during the Business Commit phase to pro-actively alert the impacted people, process and/or technology. 

    Predicts the external risk management facts for decision making
    Value streams for external stakeholders will vary based on the strategy.  in a manner that converges the dependencies and factors the known impacts.