Editorial
Building a digital workplace tech stack that delivers for employees and the business requires a strong commitment and a strategic approach to the employee experience (EX). At the heart of this commitment is a well-defined blueprint, known as a reference architecture (RA).
In this deep dive, we’ll explore the purpose and significance of a reference architecture, the steps to create one and how to ensure it remains current and effective over time. As the disconnect between idealized and lived employee experience widens with the introduction of new technologies, a reference architecture provides a practical framework towards achieving the complete employee experience.
Defining Reference Architectures
A reference architecture is a strategic blueprint based on industry standards, best practices and domain expertise. Its primary purpose is to unify and guide technology acquisition and integration decisions within an organization. A well-defined reference architecture provides a clear roadmap and priorities for technology implementations, ensuring that new tools and systems are compatible and integrated with existing infrastructure.
While reference architectures are widely used in regulated industries such as banking, insurance, telecommunications, infrastructure and government, people often underestimate their importance in the domain of employee experience. Adopting a reference architecture in EX is essential to connect silos, ensure stakeholder alignment and deliver a complete employee experience built on a unified technology stack.
Creating Effective Reference Architectures
When building an employee-centric reference architecture, consider every employee as a stakeholder in its creation and implementation. Each organizational function should be viewed as a core capability. The initial top-level version of reference architecture must be easily understandable for all stakeholders while remaining adaptable to evolving business needs. It provides a transparent and consistent framework for making technology decisions.
To start, you need to distinguish between connecting and autonomous functions in the organization. Connecting functions facilitate coordination between different parts of the organization, while autonomous functions operate within their specific area of expertise, such as Finance, Legal, Sales or Product. Note: do not confuse an organizational function with the organization's reporting structure. In an optimal operating model, these will be well-aligned.
The minimum functions in an organization are represented in the top-level reference architecture shown below. From here, you can add the necessary capabilities within each function bubble. For instance, the hire to retire people function can be illustrated as follows.
Sustaining and Optimizing Reference Architectures
Engage with your stakeholders to validate and refine the reference architecture. Once its finalized, it’s time to integrate it into the organization's ways of working. It should evolve alongside your business and serve as a standard reference for technology selection, investment and prioritization decisions. Leverage your existing governance structures to ensure its consistent application and operationalization. For example, incorporate reference architecture reviews into your weekly, monthly and/or quarterly business reviews.
To maximize the value and impact of this approach, tie a percentage of performance rewards at all levels in the organization to the accuracy and relevance of the reference architecture. In my experience, 15%-20% is an appropriate range. Accountability will keep all stakeholders aligned and committed, ensuring that the reference architecture stays current and effective.
Key Steps for Core Principle #1
- Engage and Develop: Involve all employees in the creation and development of the reference architecture. This ensures that everyone has a say, and that the architecture meets the needs of the entire organization. For example, hold workshops or brainstorming sessions to gather input from different departments. Have experienced moderators facilitate the sessions to ensure that all voices are heard and to keep discussions stay focused on key business objectives.
- Validate and Refine: Continuously validate and refine the reference architecture with input from employees to keep it relevant and effective as the organization evolves. Regular feedback loops and review sessions are instrumental in this process. For instance, set up a dedicated role responsible for collecting feedback and making necessary adjustments to the architecture.
- Implement and Govern: Integrate the reference architecture into the organization's daily operations and governance structures to ensure it is consistently applied and followed. Establishing clear guidelines and protocols for implementation can help in maintaining consistency. You might also add governance-oriented KPIs, such as Tech Stack Health Score, into existing dashboards and reports to minimize oversight overhead.
- Measure and Reward: Measure the effectiveness of the reference architecture and tie performance rewards to its accuracy and relevance. This encourages the organization to stay committed and aligned. For instance, set specific metrics to track the success of the reference architecture and reward teams that meet or exceed these metrics. Examples of such metrics could include the percentage of projects or purchases that adhere to the reference architecture, the time saved in decision-making and value realization processes, and the overall satisfaction of employees with the technology solutions provided.
Developing a reference architecture is the first step in making magic happen, it sets the context for a seamless employee experience. By establishing this solid foundation for the digital workplace, you can ensure that your technology decisions are aligned, effective, and reduce the friction points caused by a fragmented technology stack.
In our next article in this six-article series, we will delve into Core Principle #2: Implement in Context, where we will explore how to understand and meet the unique needs of your organization. Stay tuned!
Editor's Note: Read more about how to improve your digital employee experiences:
- Make Magic Happen: How Technology Completes the Employee Experience — To build a digital employee experience that delivers for employees and the business, follow these five core principles.
- Creating Exceptional EX: Where HR, Communications and IT Unite — Employee experiences cross departmental boundaries. So to create exceptional EX, multiple departments must work together – with internal comms in the lead.
- A Digital Workplace Perspective on Where AI Can Enhance Employee Experience — AI can help build digital workplaces where employees thrive. Success lies in balancing tech innovation with an understanding of employee needs and aspirations.
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