What are the metrics - KPI/OKR that are used to measure Enterprise Architecture value to your Enterprise?
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There must be a reason you are establishing an EA practice.<br><br>Start by finding measures related to the issues you are hoping to resolve and create a baseline. Remember, that measures need data. Choos measures that rely on easily available data to avoid a masssive workload collecting the necessary data or relying on educated guesses.<br><br>Then you can start implementing your EA practice and track progress on the measures.<br><br>Remember to evaluate - maybe some progress cannot be attributed to EA practices, but to something completely different in the business environment.
EA value is best communicated to the business using cost metrics - cost savings created using EA tech stacks/tooling for process efficiency, channel shifts, internal/external self service & revenue streams created by introduction of new channels, a seamless customer experience that encourages cross-sell opportunities/referrals, and a unified customer record that can 'smart-suggest' products and services
What I have found in all Architecture roles I’ve had across different industries (including my current industry) is that value are best measures towards the following stakeholders: Customer, Shareholder and Risk.
I break the points of metrication down these into 5 categories:
1. Customer Value generation (measured typically by NPS)
2. Shareholder Value genration (usually measured by share price and dividents)
3. Time to market (measured by speed of delivery from ideation to deployment)
4. Total cost of ownership (measured in $$$ spent developing, improving and maintaining capability)
5. Risk (measured by numbers of risks discovered, and incidents occured)
Even though I like the suggestions, I find it very difficult to attribute changes in those KPIs to Enterprise Architecture.<br><br>For that reason I would suggest to use KPIs more directly related to EA work like:<br>1. Number of exemptions from Architecture Principles<br>2. Number of violations of a standard layered architecture<br>3. etc...
You can do this by outlining your Architecture Courses of Action (e.g. introduction of standards, principles, patterns, guardrails or link to strategic business direction), and then "T-shirt size scoring" these CoA to the 5 categories mentioned + ++ - --<br><br>You can then, as part of elaborating, Plateau by Plateau further detail these "score metrics" to indicate the success of the architecture in terms of real business outcome. Answering questions e.g. "How does this principle reduce my TCO?" or "How does this guardrail effect my Risk Position?" for example.<br>
Key metrics include alignment, efficiency, and cost-effectiveness for evaluation.
The challenge I am having here is we are establishing the EA practice. So while many of the factors mentioned make sense once EA is in-place and mature, how do we track progress towards EA maturity model? That is where I find myself focusing right now. Any thoughts from that perspective?