Walk-through of a Way of Working with Enterprise Architecture in a SAFe context in a larger Bank. What is EA, How to Steer, How to Govern, How to Lead, and how to wrestle with an emerging Future.

1. Architecting the Enterprise
in a SAFe context
Doctor of Management
(Ph.D) Mikkel H Brahm
Head of Personal Banking
Architecture | Nordea
Slides available at SlideShare
https://www.slideshare.net/mikkelbrahm
Doctoral (PhD) Thesis available at UH
Seeking to Control Enterprise with Architecture
the limits and value of an engineering approach
from the perspective of an Enterprise Architect
http://uhra.herts.ac.uk/handle/2299/17596

2. Enterprise Architecture in (Portfolio) SAFe
Centralize Infrequent and Long-lasting decisionswhich provide Significant Economy of Scale
Centralize
+ Market knowledge
+ Longer-range perspective
+ Business & Financial Landscape
- Delay (Cost of Delay)
Decentralize
+ Local context / information
+ Time-critical
+ Frequent
- Interoperability
2
https://www.scaledagileframework.com/

3. 3
Strategic Steer
Ensure investments in
change and stability
efficiently deliver
desired value and structure.
Investment Decision
Invest in change only to
produce outcomes we
cannot get from existing
investments/operations.
Delivery of Output
Execute Continuous
Integration and Delivery of
working Solutions with Just-
In-Time Designs
Realization of Outcome
Realize Business Benefits
via Exploitation of Solutions
in changing Business
Practice and Performance
Inspired by ‘Innovate – Invest – Execute – Exploit’ in Chris Potts, 2010, Recreation, Technics Publications
Architects provide basis for informed decision making
Signature-ready recommendations for Strategic Steer and Corrective Actions
Architecture Governance = Corrective Actions
Identification of mis-alignment between Strategy (steer & intentional design) and Execution (emerging Solution Designs and Business Performance)
and Recommended Corrective Actions and Follow-up

4. Common Cadence enables alignment across Portfolio
Each Iteration is an opportunity to deliver better Products but also to learn and evolve Ways of Working
4
Analysis Design Construction Test & Fix Deploy & Deliver
Product 1
Product 2
Product 3
Product 4
Product 5
Work break down by process step
Work
break
down
by
working
sub-products
Waterfall step 1
Agile step 1
NB: The previous two slides are my ‘Product 1’…

5. Common Cadence enables alignment across Portfolio
Each Iteration is an opportunity to deliver better Products but also to learn and evolve Ways of Working
5
Analysis Design Construction Test & Fix Deploy & Deliver
EA
STEER
GOVERNANCE
LEADERSHIP
FUTURE
Work break down by process step
Work
break
down
by
working
sub-products
Waterfall step 1
Agile step 1
NB: The previous two slides are my ‘Product 1’…

6. Strategic Steer
Product 2
… leading enterprise responses …
… execution of change …
… signature-ready recommendations …
Gartner
6

7. EA needs clear Mandate and Escalation Path
Managers enable Flow in execution structure by adopting a Servant Leader role
7
Group Leadership
Team
Data & Technology
Committee
Architecture
Board
(What to invest in)
Architecture
sub-Board
(Low impact)
Development
Portfolio Planning
(How to invest)
Nordea Board
Technology Standard
Operationally
supportable technology
standards
Architecture Steer
Steer change execution
to achieve Nordea
priorities
approve
Development Budget
Application
Management
(Maintain & Operate)
Maintenance Budget
escalation
path
mandate

8. Informed Decisions requires the right Information
Signature-ready Recommendations require agreed-upon Option and evaluation of Consequences
8
Recommended Option
or Scenario(s)
Consequences of saying yes
one-time cost, run cost, risk, benefit
Consequences of saying no

9. Tailor strategic artefacts to their target audience
Different audiences should get different deliverables with aligned content but different expressions
9
To fellow architects, we present clearly defined scope and architectural design
for alignment across different architecture teams and efforts. We seek
consistency and strive to make material available for reuse.
To initiatives, we present concrete and clear strategic steer on which strategic
solutions to build, when and how to stop development of non-strategic
solutions, when and how to decommission non-strategic solutions, and how to
ensure interoperability between different related solutions.
To decision makers we present strategic choice (options to choose between) in
vision & strategy and a signature ready architecture recommendation in target
& transition architecture which have been validated with key stakeholders in
relevant business areas and group functions.
Martin Fowler: https://martinfowler.com/bliki/UmlMode.html

10. Branch & CC
Distribution
Digital Distribution Broker Distribution
Experience Foundation API
Micro App
<<Pattern>>
Domain Capability / System API
Core Banking
Common Data Platform
Customer &
Counterparty
Ledgers,
Product &
Services
Cross-
product
Services
Common
Data,
Analytics,
Risk &
Reporting
User
Experience
Partner
Distribution
Public
Collaboration
Open Banking API
Payments Cards Trading &
Investment
Portfolio Mgmt.
Life & Pension Finance & Leasing
Customer Liquidity
Mgmt.
Operational CRM &
Advisory
KYC and Customer
Onboarding
Analytical CRM
incl. Aggr. &
Enrichment
Content Mgmt Digital
Communication
Document Mgmt. Identification &
Entitlements
Prod. Origination
Compliance
Fraud Mgmt. &
FCP
Credit Risk Market Risk Operational Risk Financial Risk Nordea Financial
Mgmt.
Treasury Mgmt.
Example: Mapping Planned Development to Steer framework
Identify areas of development without an agreed upon Target Architecture and Execution Strategy
10
Vision: BCC (old)
VS: Digi Distribution
VS: Prod Origination
TA/TS: Analytical CRM
TA: Common Tx Store VS: Digi Comm. VS: Document Mgmt.
Work In Progress
AB Approved
VS: Foundation API
Published (draft)
Decom Strategy
TA/TS: MM Loan Orig
TA: Broker SE
VS: Risk-based Pricing VS: Virtual Assistants
S: Digital Strategy
Legend:
File Services
TA: Lending (2019)
Workflow & Case Mgmt
Master Data Mgmt
Purchase
Flows
Domain
Capability
API
Omni-
Channel
Sales &
Advice
Sector
Integrations
CRM ‘Core’
Outbound
Routing
Core Decom
(Transition)
Entitlements
(Transition)
1. Where do we have
initiatives that require
cross-domain
decisions?
(Facilitate negotiations
and document
agreement)
2. Where do we want to
start development, but
are missing funding?
(Target to describe
choices and motivate
investment)
3. Where do we want to
start decommissioning,
but it is unclear what
replaces what and
when?
(Transition to define pre-
requisite development
and clarify
accountabilities)
4. Where do we have
significant mis-
alignments?
(Propose corrective
actions & follow-up)
Customer
Onboarding

11. Example: Use Architecture Runway to drive Common
Architects across the portfolio (and to some extent Enterprise) align on common Runway enablers
Architecture enabler features clarify the architecture design
(decisions) needed to enable the development of business features
Generally the Architecture Runway is the collection of architecture
enablers needed to “land the Programme Increment”
We use the term common Architecture Runway to denote those
architecture enablers that are necessary to maintain viable
platforms with acceptable (non-functional) performance
This includes Nordea Digital front-end platform and
Digital Experience API platform
All development teams that build content on these platforms
share a responsibility for contributing to the health of the platform
by implementing these enabler features as appropriate
11
https://wiki.itgit.oneadr.net/display/OD/Runway+objectives

12. Architectural Governance
Product 3
12

13. Governance in ‘real-life’ Architecture discipline
Real-life architecture (also) does not end with a Blueprint for a Building…
13
After a building is constructed, the architect’s
job is to make the owner or the buyer aware
of any flaws to enable them to take informed
decisions and actions based on uncovered
flaws. To do so, the architect inspects the
structural soundness and quality of the
building.
Flaws in physical architecture can be in
different levels1
◦ K3: Critical flaw requiring immediate corrective
action or additional damage may befall the
building e.g. gap in roof.
◦ K2: Severe flaw which should be corrected but
which will not immediately cause further
damage to the building e.g. puncture of thermo
window.
◦ K1: Less severe flaw which does not affect the
function of the building or causes further
damage e.g. minor cracks in the walls.
◦ K0: Cosmetic flaw e.g. paint stain.
1) K-numbers are from Danish ‘tilstandsrapport’ which is a market standard for physical architecture

14. Object of Architecture Governance
Solutions under construction are
assessed as part of Architecture
Governance of change execution
initiatives using
◦ Overview of Solutions being constructed
◦ Solution Design documentation
◦ Interviews with Solution Architects and other
change execution participants and sponsors
Lead Solution Architects are required to
assist in assessing any mis-alignments
with principles, steer, and technology
standards
14
Result of Architecture Governance
Quarterly, owner of the change
execution budget (COO) is provided with
recommended corrective actions based
on discovered mis-alignments
Recommended corrective actions
based on assessment of
◦ Availability of Strategic Steer required to properly
design the Solution and insure interoperability
with relevant other solutions
◦ Probability of Success with delivering the
designed solution within agreed constraints and
enabling promised business benefit realization
within agreed constraints
◦ Degree of Alignment with Strategic Steer and
severity of any mis-alignments
Basis for Architecture Governance
Architecture Principles
◦ All principles must be adhered to unless it can be
explained why special circumstances require a
principle to be ignored.
◦ If a principle is ignored, the risk must be defined
and have a business risk owner.
Architecture Steer (Repository)
◦ Solution Designs must adhere to approved steer
or exemption must be acquired from the decision
forum which approved the steer.
Technology Standards (TechMenu)
◦ Solution Designs may not use technologies that
are not approved for that use.
◦ NB: That a given technology is approved does not
mean that it must be used.
Governance in Nordea Personal Banking (SAFe)
We compare Intentions with Emergence and if they are mis-aligned we can choose to adjust either
14

15. Intentional Design versus Emergent Design
Emergence is not necessarily worse then Intentions – Emergence can be a Learning opportunity
15

16. Escalate to create Transparency and Ownership
Portfolio Governance ensures that the Balancing Act is done by Senior Decision Makers
16
Ambition Level
Scope
Calendar Time / Deadline
Prioritization
Epics / Features
Architecture – Business Needs
Capacity
Budget / # of Teams
Consultants / Sourcing
Do you want to
invest more money in
change execution to
become more aligned?
Should we do more
enablers and fewer
business features
to become more
aligned?
Should we lower the
ambition level
to become more
aligned?
(or just wait)

17. Example: Governance leads to Corrective Actions decisions
Status is provided to inform decision-makers about issues / impediments and their consequences
17
Partially
2,1
Improved product
Increase momentum within def
…
Medium
Volume Growth
(stock)
+ 2% MoM + 2 % MoM
Deprecated
Change Execution Initiative / Hub
Budget
FY Target1
Architecture
Align2
Architecture Alignment
Rationale
Probability
of Success
Value Type This Year Next Year
Primary Objective
Architecture
Steer
11,1
Capability D
Common enabler for growth
...
Mostly
High
Structural
enablers
+30 % Visits
Decom dd
+30 % Visits
Partially
12,2
Capability E
Common enabler for servicing
…
Mostly
Medium
Structural
enablers
+ bot/self-
service
+ bot/self-
service
Mostly
21,1
Capability F
Common enabler for digitalization
…
Mostly
High
Structural
enablers
99,9 service
availability
99,9 service
availability
Mostly
…
2,2
Maintenance of B
Maintain legacy and support simplification
Neutral
N/A N/A N/A
N/A
…
2,1
Mandatory C
Mandatory legal, risk, and compliance must-do changes
Neutral
Mitigate
compliance risk
Reduce op.
risk level
Reduce op.
risk level
N/A
…
11,2
Merger A
Merge A into B
Partially
Low
Merger +
Cost reduction
None
Exit Evry
5.6m€/year
Deprecated
1,2
New product
Increase momentum within abc
…
Mostly /
Partially
Medium
Volume growth
(stock)
+ 20% YoY + 20% YoY
Deprecated
Partially
Mostly/
Item Misalignment Issue Corrective Action Decision
Forum & Date
Action
Owner
Action Status
1 Initiative ‘Improved product’ have not adopted the
common Capability F enabler
Require the initiative to build at least one standards-compliant F example to
ensure that the team becomes familiar with this way of working.
Concrete action: Latest follow-up with x, y, and z was April 15th to identify
the first F-feature to be delivered aligned with architecture board-approved
standards.
PeB Architecture
COO monthly
2nd Oct. 2020
Y In Progress
z is working on assessing how
adoption can be initiated and on
estimating consequences
2 Use of different front-end framework in acquired
solutions
While merging A into B it has been discovered that the solutions from A use a
different front-end framework (platform) than those of B...
Concrete action: Adjust target to allow the non-strategic platform to co-exist
with strategic platform but does not change the fact that all new
development must be on the strategic platform.
PeB Architecture
COO monthly
2nd Oct. 2020
Y Done

18. Why is it so difficult to Lead – and to Follow Leaders?
Product 4
18

19. Interdependence enable and constrain our actions
Socially unacceptable behavior can damage relationships
Elias, Norbert (1978). What is Sociology? Columbia University Press. 19

20. We often act habitually / acceptably to garner support.
Provocative actions can lead to renegotiation of norms.
Scott, John C (1998). Seeing like a State. Yale University Press. 20

21. Power dynamics enable and constrain what it is prudent to say
both for subordinates and for the power holders
21
Scott, John C (1990). Domination and the Arts of Resistance - Hidden transcripts. Yale University Press.

22. Jackall, Robert (2010). Moral Mazes – The World of Corporate Managers. Oxford University Press.
Power is never equally distributed. Any leverage
can be used to further one’s interests in any other area.
22

23. Collaborative innovation hinges on mutual trust
that others can contribute what we ourselves cannot
Stacey, Ralph D. & Mowles, Chris (2016). Strategic management and Organisational Dynamics. Pearson Education. 23

24. Note: Not all Architects prefer to lead on the “construction site”
rather than model and write guidelines from the “Ivory Tower”
I facilitate strategic decision-making by brokering agreement
between stakeholders documented in an architecture

25. 25
Trust and Collaboration is a key enable for Success
in cross-functional build teams and in decision forums

26. The Future of Banking
Product 5
26

27. Organizations compete and not all of them can Win
If there was a ‘winning formula’ the competition would also be following it…
Tom Graves
27
http://weblog.tetradian.com/2019/06/24/on-shared-enterprise/

28. The Markets are also ever evolving
We need to take into account changing market conditions, changing customer expectations, etc. etc.
What are the stars and question marks of banking service providers?
Ecosystem of financial services
• Are customers willing to pay a subscription or service fee?
Data
• Are customers willing to pay for a service that exploits our data?
APIs
• Are customers willing to pay for an API service call?
Will the product owners of the cash cows allow us to spend
the money they earn on investing in a questionable future?
28
https://www.bcg.com/about/our-history/growth-share-matrix

29. Knowing the Path is different from Walking the Path
Execution is generally more difficult than creating compelling Visions of the desired future state
29
https://www.gartner.com/en/research/methodologies/magic-quadrants-research

30. Ensure you evolve both your ability to Execute and your Visions
EA’s cannot deliver alone so the most important job is to build trust relationships with those who can
Completeness of Vision
Directional Steer
Ability to Execute
Architectural Governance
30
Who must you ally with
to enforce directional steer?
Who must you ally with
to execute successfully?

31. Conclusion: How to win Complex political (EA) games
Product 6
31

32. Key Take-Aways
‘Method’ for building a successful EA practice in your organization
Recommended actions first 100 days…
• Find out what you are architecting
• Find out who is building / making
decisions on what you are architecting
• Find out which questions the builders /
decision-makers have
• Find out who also wants to supply such
answers / services in the organization
• Find out who could be allies and who
are opponents; nurture trust
relationships with your allies
Recommended practice (in a SAFe context)…
• Enterprise architects build trust relations with budget and epic owners
• Enterprise architects / cross-functional teams provide signature-ready
strategic steer just before build-teams need it
• Solution architects build trust relations with developers and execution
leaders and (co-)leads development
• Cross-level architecture community discusses strategic steer, negotiate
good/bad solution designs, and understands to which extent
intentional = emerging
• Enterprise architects propose and track execution status of corrective
actions towards decision-makers
32