The first step in answering this question is to take pen to paper and draw MIT’s very straightforward, four-quadrant matrix for linking data integration and process standardization with your operating model.

1. First, draw a box and split it into four even quadrants.
2. Next, write Business Process Standardization along the bottom (horizontal axis) and Business Process Integration along the left side (vertical axis).
3. In the lower left box, write “Diversification Model” and in the upper left box, write “Coordination Model”
4. Then, going over to the right side, in the lower right box, write “Replication Model” and in the upper right box, write “Unification Model”

Voila! You’ve drawn the MIT framework for assessing the levels of data integration and process standardization required for success in different types of public and private sector organizations. It is a simple but powerful tool that enables you to start with the right focus…on the operating model that will best serve your business.

Stay tuned for parts 3 through 6 of this series to find out where you fit in. Every organization should be a able to position themselves in one of the four boxes MIT framework boxes.

The answer is definitely NOT “more is better” across the board.

Most would argue that “integration” and “standardization” of business processes can be powerful strengths for both public and private sector organizations. They improve service and create efficiencies.  

Yet, data integration across business units can be expensive, time consuming and, in many cases, unnecessary. Likewise, business process standardization can dampen creativity and innovation, and downgrade the customer experience.

So how do you decide what levels are best for you? In their book, Enterprise Architecture as Strategy, distinguished faculty from MIT and IMD International outline a framework for answering that question. Their framework is one of the best I’ve seen for kicking off discussions about performance improvement and organizational transformation.

If you would like to get a handle on the MIT framework, stay tuned for entries 2 through 6.