How do you monitor and control the financial performance of a Business Architecture initiative?

1 Define the financial scope

The first step to monitor and control the financial performance of a Business Architecture initiative is to define the financial scope of the project. This means identifying the expected costs, benefits, and return on investment (ROI) of the initiative, as well as the sources and allocation of funds. The financial scope should be aligned with the business case, the value proposition, and the stakeholder expectations of the initiative. It should also be realistic, measurable, and adaptable to changing circumstances.

2 Establish the financial baseline

The second step to monitor and control the financial performance of a Business Architecture initiative is to establish the financial baseline of the project. This means setting the initial budget, schedule, and quality parameters for the initiative, based on the financial scope and the available resources. The financial baseline should be documented, approved, and communicated to the project team and the stakeholders. It should also be used as a reference point for tracking and reporting the financial progress and performance of the initiative.

4 Control the financial performance

The fourth step to monitor and control the financial performance of a Business Architecture initiative is to control the financial performance of the project. This means identifying, assessing, and managing the financial risks, issues, and changes that may affect the initiative, such as scope creep, cost overruns, benefit shortfalls, and stakeholder dissatisfaction. The control of the financial performance should be done proactively, collaboratively, and effectively, using appropriate tools and techniques, such as contingency plans, change requests, and corrective actions.

5 Evaluate the financial outcomes

The fifth step to monitor and control the financial performance of a Business Architecture initiative is to evaluate the financial outcomes of the project. This means measuring, reviewing, and validating the financial results and impacts of the initiative, such as the actual costs, benefits, and ROI, as well as the alignment and satisfaction of the stakeholders. The evaluation of the financial outcomes should be done objectively, comprehensively, and constructively, using appropriate tools and criteria, such as key performance indicators, benchmarks, and feedback.

6 Learn and improve

The sixth and final step to monitor and control the financial performance of a Business Architecture initiative is to learn and improve from the project. This means capturing, sharing, and applying the financial lessons learned and best practices from the initiative, such as the successes, failures, and opportunities for improvement. The learning and improvement from the project should be done continuously, systematically, and strategically, using appropriate tools and processes, such as retrospectives, audits, and recommendations.

7 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?