Instill Collaborative Decision-MakingThe second principle of BTM is to instill collaborative decision-making. The concept of collaborative decision-making is frequently employed as a catchall that includes everything from face-to-face communication to knowledge management to coordinating partnerships. This scope is too broad for our purposes, of course, so this discussion is limited to the role that collaboration plays in the specific context of BTM: decision-making that is either facilitated by modeling itself or undertaken to support the modeling initiative. The idea of collaborative decision-making in BTM is a descendent of the broader concept of a virtual workspace, where potentially disparate teams can come together to access a common work environment, post and share supporting information, and communicate in real time to solve problems. For BTM, this virtual workspace equates to a combination of the model itself and three key levels of collaboration:
Vertical and Horizontal CollaborationThe three levels of collaboration can occur both vertically (within a single business unit or team) and horizontally (across multiple business units or teams). Most day-to-day communication within an IT project falls under the aegis of vertical collaboration. Its goal is to improve existing processes by sharing information and expertise. One manifestation of vertical collaboration is communication between team members at different levels of the same business unit, from executives to business unit heads to managers and so on. In the worst cases, top-to-bottom communication between those who set objectives and those responsible for meeting them resembles a version of the children's game, Telephone: The original message is garbled along the way and disconnects crop up between strategy and execution. Vertical collaboration improves this process by making sure that the directives passed between managers and their reports happen accurately and in real time. For top-down communication this means that changes in strategy or goals are communicated in time to change course, and for bottom-up communication this means that needs and issues are passed back up to executives to make small, corrective changes that don't jeopardize the project as a whole. However vertical collaboration isn't necessarily limited to members of the same business unit. Another type of vertical collaboration focuses on particular teams or business processes. An example here is product development, when representatives from marketing, sales, and engineering define specifications, share new product designs, and make update requests . The impetus for this collaboration is improved communication and efficiency: The marketing team knows which market niche to exploit, the sales team understands customer needs, and engineers have the technical capability to design new and exciting product offerings. By improving the flow of information between participants , tools that facilitate vertical collaboration in product development can improve speed to market and reduce production errors. In BTM, vertical collaboration shares important characteristics with both manager-to-report collaboration and process and team-based collaboration such as product development. By encouraging team members to share metrics, project management information, and relevant knowledge bits, collaboration encourages holistic decision-making, and ultimately reduces development time and cost. While vertical collaboration is all about efficiency, horizontal collaboration is focused on helping to share amorphous "great ideas" that can deliver unique insights that are especially powerful. Vertical collaboration is project and process-based, and includes stakeholders with multiple specialties. Horizontal collaboration is quite the opposite : General trends and opportunities are shared between employees with similar job functions, but who work in different business units or on different projects. One example of horizontal collaboration could be the interaction between the customer service and product design teams in a consumer products company. Suppose that over time, the customer service team notices that a large number of the calls to their help desk are from users who can't figure out how to use a particular feature of a particular product. After documenting the issues, a service team member contacts the product design team. The two groups collaborate to determine the exact nature of the problem and change future versions of the product to make it more intuitive. In this example, two otherwise disparate teams (customer service and product design) collaborate to share a unique insight ( user difficulties with a particular product feature) in a way that was outside the scope of normal processes and regular communication. The advantages of horizontal and vertical collaboration are predictably unique from one another. In vertical collaboration, the focus is on pervasive integration of well-defined team members and processes in order to share knowledge and improve efficiency. Horizontal collaboration, on the other hand, requires employees to identify and analyze important developments in their own work environment, and then to pass these along through free-form interactions to whomever is most equipped to act upon them. This is the foundation for an integrated organization that recognizes broad trends and shares them across business lines to provide opportunities elsewhere. T-Shaped ManagingBoth vertical and horizontal collaboration are essential components of BTM. Embracing both in tandem requires a management technique that Morten T. Hansen and Bolko von Oetinger describe in the Harvard Business Review as the "T-shaped management" model. In BTM, the vertical component of T-shaped management encompasses most day-to-day work on IT projects, and focuses on individual modeling teams and their managers on up to the office of the CIO and the CxO Suite. But BTM also requires teams to collaborate horizontally to share what Hansen and von Oetinger call "implicit knowledge, the type needed to generate new insights and creative ways of tackling business problems or opportunities." [4] These horizontal interactions could include a marketing manager who identifies a sales trend and passes it along to a product design team, or an IT professional who recognizes an opportunity to reuse an existing ERP system in another department. Figure 3.2 illustrates the roles that vertical and horizontal collaboration play in BTM, and shows some types of information that are commonly exchanged in each: Figure 3.2. Vertical collaboration encompasses day-to-day work, while horizontal collaboration delivers key insights and opportunities
Contextual and Cultural BarriersBefore they can achieve T-shaped management, companies need to overcome both contextual and cultural barriers to collaboration. Contextual barriers are the biggest obstacle that stands in the way of collaborative decision-making. Most collaborative systems, including groupware or virtual workspace applications, don't integrate directly with everyday work environments, so employees are forced to leave their workspace ”be it a word processor, spreadsheet, CAD/CAM tool, or even the factory floor ”to interface with others. IT analyst IDC describes this phenomenon as a " schism between how people get information and what they can do with it." [5] For vertical collaboration, the contextualization problem is more practical than anything else: Team members know what to share and with whom, but many times lack the infrastructure to communicate within their familiar business applications. In horizontal collaboration, however, the impetus for collaboration isn't as intuitive. Issues are less likely to be explicitly documented in the first place, and it can be difficult to determine who to collaborate with, as partners come from outside the immediate team or from different business units altogether. This means that not only do employees not know how to collaborate, but they also don't know when or with whom to do so. People also fail to collaborate because of ingrained cultural and organizational issues. In the simplest case, they fail to recognize either the person with whom they should be collaborating or the need to collaborate at all. A process analyst faced with choosing to modify either a current purchasing process or a new procurement application, for example, might not know that a colleague in another department recently grappled with a similar problem, and so might be a good source of knowledge and advice. A second, more deep-seated challenge is to overcome the strict concept of ownership that impedes collaboration ”especially horizontal collaboration between business units. There are innocent and not-so-innocent reasons why this happens. Sometimes, people simply assume that they should solve their own problems, and consequently miss opportunities to collaborate with peers who may have valuable insight into their dilemma. Other times, cultural barriers get in the way. Information from outside the immediate team may be considered untrustworthy. Or, in other cases, knowledge producers may fall prey to an ingrained tendency to hoard information for their own personal advantage. In organizations where employees compete internally (to acquire customers, for example), this last condition may require a system of incentives and penalties to encourage open information exchange. The Advantages of Collaborative Decision-MakingCollaborative decision-making provides a number of important advantages for BTM. By combining vertical and horizontal collaboration to employ a T-shaped management model, enterprises can:
Achieve Concurrent Business, Process, and Technology DesignThe first advantage of collaborative decision-making is that it helps companies to achieve the BTM equivalent of concurrent engineering, where manufacturers collaborate at every stage of the value chain so that all aspects of product development ”from engineering to marketing to manufacturing design ”can be carried out simultaneously. Collaborative decision-making does the same for IT projects by allowing each activity of BTM ”business model definition, process optimization, and technology automation ”to occur simultaneously . When both product design and BTM occur concurrently, cycle times decrease and critical issues in quality control are addressed early on in the process. Maintain Alignment Between Disparate DecisionsThe second advantage of collaboration is that it helps team members to make intelligent trade-offs that maintain alignment between seemingly disparate decisions. When companies employ multiple tools for each of the three activities of BTM, they invite disconnects between choices made in separate environments. By collaborating to unify decision-making across multiple environments, team members can provide visibility into choices that are made in other areas of the project. For example, an implementation consultant may need to determine why a modification was made to a process in order to balance its relative importance against the changes to the technology infrastructure that it requires. By implementing collaborative decision-making, team members can identify and bridge these whitespace disconnects to maintain alignment across the board. |