Mastering Business Analysis Standard Practices: Seven Steps to the Next Level of Competency
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Mastering Business Analysis Standard Practices: Seven Steps to the Next Level of Competency
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Overview
Product Details
| ISBN-13: | 9781604271386 |
|---|---|
| Publisher: | Ross, J. Publishing, Incorporated |
| Publication date: | 03/14/2019 |
| Series: | Business Analysis Professional Development |
| Edition description: | None |
| Pages: | 400 |
| Product dimensions: | 7.40(w) x 9.10(h) x 0.90(d) |
About the Author
Read an Excerpt
CHAPTER 1
INTRODUCTION
The purpose of this book is to provide guidance on mastering business analysis. First, as with any profession, there is a foundational understanding required prior to digesting guidelines for performing the work of business analysis. This chapter is dedicated to providing that foundational information from the two leading organizations on business analysis — the International Institute of Business Analysis (IIBA®) and the Project Management Institute (PMI) — as well as some additional practical resources that are identified throughout this book. The intent of this chapter is to help guide readers to understand the differences and similarities between the IIBA and PMI that are related to understanding the profession of business analysis.
WHAT IS BUSINESS ANALYSIS?
Even though the business analysis profession has only recently been recognized, the problems and opportunities surrounding it have been analyzed since the beginning of time. Consider the creation of the wheel; it came about because there was a need to move materials that were too heavy to carry quickly. Wheels on an axle allowed materials to be loaded on open containers and trucked to the needed location more efficiently. This is the result of a business analysis effort.
Business analysis is defined by both the IIBA and PMI as a set of activities to enable change in an enterprise by defining needs and recommending solutions that deliver continuous value to stakeholders. This short definition is packed with exciting and rewarding opportunities for both the business analyst (BA) and the enterprise. There is a natural gut reaction to identify an obstacle and immediately go into solution mode rather than trying to identify the underlying problem. Most folks have no trouble seeing the solution — it's the problem that eludes them.
The value that enterprises reap by investing in business analysis can be summarized as:
• Solutions that meet stakeholder needs and provide business value due to more reliable, higher quality requirements;
• Higher buy-in for the change by ensuring stakeholder engagement in the process;
• Much higher probability of projects being delivered on time, within scope, and within budget; and
• A reusable pattern on future change initiatives by building business analysis competency.
Research clearly indicates that enterprise projects are failing to deliver their intended business value. From 2012 through 2016, project success indicators have remained fairly constant. Research conducted by PMI summarizes these results in Table 1.1. How much does this mean in dollars and cents? An estimated 12% of the money invested on projects is wasted due to poor project performance. According to a whitepaper by PMI called Business Analysis: Leading Organizations to Better Outcomes, the second leading cause of project failure is inaccurate requirements (39%), preceded only by changes in an organization's priorities (41%). Enterprises that have matured their business analysis practices are dramatically improving their probability of project success.
The necessary enterprise solutions are increasingly more complex and interrelated, providing business analysis professionals with an opportunity to engage stakeholders with multiple viewpoints in order to drive solutions. These solutions likely require changes in process, technology, and organizational structure. The need for these business analysis professionals has been predicted to grow by double digits, specifically 13–30% over the coming decade (see the Business Analysis Perspectives section of this chapter for more on this trend). Specifically, business intelligence (BI) skills are predicted as the highest need. According to a recent PwC report that was supported by data from Burning Glass Technologies, the 2020 estimate calls for 2.7 million job postings in the analysis space that require professionals with deep analytical (BI) skills. Also, business analysis is a profession that has been defined by Harvard Business Review as the sexiest job of the 21st century.
To keep current, the BA has the following sources:
• Business analysis professional organizations, guides to business analysis practices, and certifications:
[??] IIBA
[] Guides to business analysis practices
[] A Guide to the Business Analysis Body of Knowledge (BABOK® Guide), [v.sup.3]
[] Agile Extension to the BABOK® Guide
[] IIBA Global Business Analysis Core Standard
[??] Certifications
[] Entry Certificate in Business Analysis™ — recognizes individuals entering the field of business analysis
[] Entry Certificate in Business Analysis Plus™ (ECBA™ +) — provides hands-on experience to grow knowledge into application for targeted skills
[] Certification of Capability in Business Analysis™ (CCBA®) — recognizes BA professionals who have 2–3 years of experience
[] Certified Business Analysis Professional™ (CBAP®) — recognizes BA professionals who lead and have over 5 years of BA experience
[] PMI
[??] Guides to business analysis practices
[] The PMI Guide to Business Analysis
[] Business Analysis for Practitioners — A Practice Guide
[??] Certification
[] PMI Professional in Business Analysis (PMIPBA)® — recognizes professionals who have business analysis and project experience
[] Association of Business Process Management (BPM) Professionals International
[??] Guides to business analysis practices
[] Guide to the Business Process Management Body of Knowledge®
[??] Certifications
[] Certified Business Process Associate® — recognizes broad-based BPM foundation-level skills and understanding
[] Certified Business Process Professional® — recognizes BPM professionals who have at least 4 years of BPM experience
[] Certified Business Process Leader™ — recognizes a BPM mastery level competency
[] Business Architecture Guild
[??] Guides to business analysis practices
[] A Guide to the Business Architecture Body of Knowledge®
[??] Certification
[] Certified Business Architect ® — recognizes proficiency in the field of business architecture
As of the end of 2018, approximately 84% of the over 12,000 individuals holding the previously mentioned business analysis-related certifications are IIBA certifications. All of these certifications require re-certification, which provides BAs with a chance to update their skills by earning development units that are recognized by certifying bodies. The IIBA conducts annual salary surveys for business analysis professionals, and most business analysis professionals with a minimum of one certification typically receive between 7–31% more in earnings than those without certification. Business analysis professionals with the CBAP certification receive 16–38% more in salary. Of note, in India business analysis professionals with a minimum of one certification receive 52% more in earnings. These statistics remind us that there is value in certifications. Other ways BAs can keep their skills sharp include:
• Networking opportunities
[??] Professional organization chapter events
[??]Online professional networking sites with opportunities to join business analysis groups
• Business analysis training
[??] Live instructor-led training sessions (virtual or face-to-face)
[??] Webinars
• Reference material
[??] Blog posts
[??] Whitepapers
[??] Business analysis books (like this one)
WHO DOES BUSINESS ANALYSIS?
The profession of business analysis has been experiencing an evolution in recent history. Not all enterprises define the business analysis role exactly the same way in their job descriptions due to differences in size, orientation, organizational structure, departments, and culture.
Consideration and care must be exerted by enterprises to be clear about the roles, responsibilities, job descriptions, and hiring practices of business analysis professionals to ensure the right fit. Business analysis professionals may be referred to by many different titles as noted in Table 1.2. This table is not intended to be an all-inclusive list of job titles and is meant to show the diversity of titles that perform business analysis work. According to the 2017 Global Business Analysis Salary Survey, 83% of business analysis professionals have the following titles: BA, Data Analyst, Product Analyst, Business Process Analyst, Business Systems Analyst, or Systems Analyst. The exciting news — business analysis is not just for IT anymore due to broadening perspectives and different solution outcomes that are not always technologically based. Going forward in this book, all those conducting business analysis work regardless of title will be identified as BAs.
Support from all levels of an enterprise is essential in order for BAs to successfully perform their responsibilities. This support must include senior level personnel of an organization, as well as project teams. BAs need the support of project managers and sponsors to remove roadblocks that will impede the BA from communicating effectively with stakeholders since most BAs do not possess any formal authority within the organizational hierarchy. According to the whitepaper by PMI called Business Analysis: Leading Organizations to Better Outcomes, 91% of respondents from highly mature business analysis practices reported that the role of the BA is valued by management, sponsors, and stakeholders, as compared to 53% of respondents working for less mature organizations. However, according to a recent survey by PMI, only 18% of respondents rated their business analysis practice as highly mature.
WHAT QUALITIES DO BAs POSSESS?
There are some key developments that are helping the business analysis profession to evolve, including:
• Finding value in having business analysis performed before a project is initiated in order to help properly define the problem or strategic opportunity
• Expanding the business analysis profession into specialized roles to cover the entire initiative
• Discovering that business analysis work delivers value beyond software solutions
• Tailoring of business analysis services based on unique project characteristics to provide more value to the organization
• Using a hybrid role for practitioners who are performing both project management and business analysis activities
While many roles in organizations are static, the BA role is one that will be continuously evolving. As this happens, knowing what qualities are essential will help a BA to become more effective. The following qualities are critical for success in business analysis:
• Big picture view versus detailed information: this involves the ability to be a strategic thinker in order to provide the big picture for an initiative, while at the same time being able to pinpoint details. On the spectrum of these two qualities, most people are gifted at one, but not both. Both strategic thinking and detail-oriented thinking can be learned. In business analysis, start with the strategy — the business requirements — and decompose to the stakeholder requirements, solution requirements, and transition requirements.
• Change advocates: this includes people who will help the stakeholders and the organization transition from the current reality to the desired future state by minimizing negative impacts and increasing positive outcomes in terms of value to the organization. Effective BAs assess the culture of the enterprise to accept change and the readiness of the enterprise to adapt to the cultural changes that will occur.
• Forward thinking: this type of person needs to look at not only the here and now (current state), but also examine what needs will be required in the future, including potential growth opportunities. This quality includes being able to differentiate between potential solutions that appear to meet current stakeholder needs and one solution that has the potential to meet future needs.
• Inquisitiveness: This would include someone who is curious and will investigate both strategic opportunities and the root causes of problems. Being interested, asking the right questions, and digging deeper to solve problems are some of the inquisitive and investigative qualities that help a BA to be effective.
• Multi-dimensionality: this would include people who exhibit knowledge of the particular perspective or domain that is being analyzed. The business analysis profession has expanded beyond IT. This multi-dimensional quality also includes paying attention to scope regarding impacts, change, risks, and stakeholder engagement.
• Open-mindedness: this would require a person to have an impartial approach when engaging stakeholders and is a critical quality for business analysis. The way BAs ask questions can reveal biases and close-mindedness. The best way to alleviate close-mindedness is to ask a variety of questions.
• Solution and answer seeker: this type of person will pursue answers to root causes, perform what-if analysis, challenge assumptions, and recommend viable solutions to address business needs.
The qualities identified here are intended to be used in combination with the competencies, knowledge, and skills that are discussed later in this chapter. When hiring BAs, each enterprise needs to determine which of the qualities, competencies, knowledge, and skills to consider for interview questions. Due to the continuous evolution of the BA role, organizations must also provide training, mentoring, and coaching on techniques and skills to enhance successful outcomes for the business.
ORGANIZATIONAL STRUCTURES AND THE BA
Just as there are differences in roles and responsibilities for BAs, there are also unique organizational structures related to business analysis. By 2020, employers in the U.S. will need 876,000 business analysis professionals according to the U.S. Bureau of Labor Statistics Employment Projections Program. Appropriate organizational structures to support those BAs and their career progression opportunities will become critical in order for enterprises to retain the most effective BAs.
One of the more tricky questions in workplaces is determining where to put the BA on an organizational chart. Part of this conundrum is due to differing job specifications for BAs and hybrid roles. For organizations that have functional BAs and technical BAs, it makes sense to have the business BAs report to functional managers in their respective business units and have the technical BAs report to IT managers; however, not every workplace is this straightforward.
When organizations view the BA as a project role, they tend to place the BA in IT. One of the disadvantages of placing the BA in IT is that the BA doesn't become involved in the project until after the business case is developed and the project is recognized. More mature workplaces are realizing the value of having the BA involved in the creation of the business case because of the analysis skills that are needed to examine the problem or opportunity. Oftentimes, when a business unit has subject matter experts (SMEs) perform strategy analysis or needs analysis, that person does not have the analysis skills necessary to adequately determine the best solution. It is in these situations where the BA serves a balancing role with the business SMEs — the BA provides an unbiased viewpoint to the situation the business is experiencing.
Having BAs report to a functional area is beneficial in ensuring early involvement of BAs in initiatives and projects. Less mature organizations have not yet recognized the value of early involvement of the BA role in understanding business needs and helping drive toward a feasible solution. Organizations that do realize this value are reaping the benefits of cost savings, efficiencies, and increased stakeholder satisfaction.
Understanding different perspectives can also influence reporting structures for BAs. For example, BAs in BI, agile, or IT often report to IT or information systems (IS) leadership; while BAs in enterprise architecture and BPM report to functional leadership or the IT/IS department.
In the 2017 Global Business Analysis Salary Survey, 46% of business analysis professionals report to the solution space (IT/project management), 34% report to a functional business area/product, and 20% report to the center of excellence/expertise/project management office (PMO).
Regardless of where the BA resides on an organizational chart, it is critical that BAs:
• Have access to key stakeholders
• Build relationships with stakeholders
• Engage stakeholders throughout each project, program, portfolio, or initiative
• Lead stakeholders without formal authority
• Become a trusted advisor
Each organization needs to examine the overall strategy, vision, goals, business drivers, job descriptions, and perspectives to determine the best fit for placement of the BA role in the organizational structure.
BA CAREER PROGRESSION
When selecting a career, many practitioners are not familiar with the BA role and where it comes from. Surveys show that most BAs do not consciously seek out the role. In fact, we (the authors of this book) just kind of fell into it. One of us came from an education and accounting background and the other came from a strategic and process improvement background. It's not important where you come from; it's critical that you have the appropriate skills to effectively perform business analysis work. BAs can be formed through any of the following backgrounds or combinations:
• Formal degree programs: example programs include business administration, business analysis, business analytics, BI, computer science, data analytics, etc.
• IT or technical background: knowledge of specific systems and solutions
• Department, functional areas, or lines of business experience in the business domain: knowledge of processes and systems used in specific areas
• Industry or specific trade experience: knowledge of history, trends, and competitive advantages
There are many paths that a practitioner can take to become a BA. BAs typically begin in either the business domain or the technical domain. The type of perspective a BA will engage for an initiative also needs to drive your career progression. Perspectives include the types of tasks and techniques that a BA needs to use in order to successfully complete an initiative.
(Continues…)
Excerpted from "Mastering Business Analysis Standard Practices"
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Excerpted by permission of J. Ross Publishing.
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Table of Contents
Preface xi
Acknowledgments xv
About the Authors xviii
WAV™ xx
Chapter 1 Introduction 1
What Is Business Analysis? 1
Who Does Business Analysis? 4
What Qualities Do BAs Possess? 5
Organizational Structures and the BA 6
BA Career Progression 7
Becoming a Trusted Advisor 11
Business Analysis Competencies 13
Core Concept Model 14
Underlying BA Competencies and Skills 14
Business Analysis Perspectives 17
The BI Perspective 18
The BPM Perspective 18
The IT Perspective 24
The Business Architecture Perspective 32
The Agile Perspective 36
Key Business Analysis Terms, Concepts, and Definitions 41
What Is a Requirement Versus Design Versus Business Analysis Information? 41
What Is a Project Versus Program Versus Initiative Versus Operation? 48
What Is a System Versus a Solution Versus a Process Versus an Application Versus a Software System? 50
What Are Stakeholders Versus Actors Versus Users? 50
What Are Enterprise Environmental Factors Versus Organizational Process Assets? 52
Business Analysis Center of Excellence and Business Analysis Community of Practice 53
Hone Your Business Analysis Information Elaboration Techniques 53
Business Analysis Journey Map 57
Summary of Key Points 59
Chapter References 59
Chapter 2 Step 1: Understand Your Stakeholders 61
Types of Stakeholders 62
Domain Stakeholders 64
Solution Stakeholders 66
Business Analysts and Project Managers 67
Product Owners and Scrum Masters/Agile Project Managers 69
Develop Stakeholder Profiles 70
Understand Stakeholder Motivations 72
Understand Stakeholder Differences 72
Understand Stakeholder Attitudes 73
Understand Stakeholder Influence 74
Understand Stakeholder Success Criteria 75
Understand How Stakeholders Can Be Engaged 75
Balance Your Stakeholders' Needs 80
Understand the Political Environment 81
Define Strategy for Navigating the Organizational Environment 81
Trust: It's the Game Changer 82
Detecting Mistrust or Distrust 82
Understand the Impact of Trust on Your Business Analysis Work 84
Ongoing Stakeholder Analysis 86
Techniques 87
Capability Framework 88
Organizational Modeling (Organizational Charts) 88
Stakeholder List, Map, or Personas 89
Summary of Key Points 96
Chapter References 97
Chapter 3 Step 2: Understand the Business Context 99
Understand the Enterprise Architectural Direction 102
Organizational Structure 105
Organizational Culture and Style 106
Organizational Communication 107
Organizational Systems 107
Organizational Readiness 107
EA Components 108
Frequently Identified Business Drivers 110
Customer Satisfaction/Customer Impact Business Driver 110
Currency Business Driver 112
Compliance Business Driver 114
Market Position Business Driver 115
Needs Analysis/Needs Assessment Business Driver 117
Situation Statement 119
Feasibility Analysis 119
Cost-Benefit Analysis 120
Understand the Business Case 121
Techniques 124
Balanced Scorecard (BSC) 125
Benchmarking and Market Analysis 126
Business Capability Analysis 130
Business Model Canvas 133
Business Motivation Model (BMM) 136
Business Value Definition 138
Decision Analysis 138
Document Analysis 142
Financial Analysis/Valuation Techniques 144
Interviews 145
Project Portfolio Analysis 146
Root Cause Analysis (RCA) 146
Roadmap 152
SWOT Analysis 158
Summary of Key Points 163
Chapter References 164
Chapter 4 Step 3: Plan the Business Analysis Work 165
Iterative Nature of Elicitation, Collaboration, and Analysis 170
Where to Begin Planning 172
Plan the Business Analysis Work Activities 175
Elicitation and Collaboration 176
Scope Analysis 178
Solution Requirements Analysis and Design Definition 178
Solution Evaluation 181
Scope Management 182
Justify the Business Analysis Effort 187
Business Analysis Assessment 187
Techniques 189
Estimation 190
Risk Analysis and Management 190
Summary of Key Points 194
Chapter References 194
Chapter 5 Step 4: Set Initiative Scope 195
What Is Scope? 196
Focus on Why First, before What 198
Develop Success Measures 198
Now What?-Chunkify the Initiative 200
At the Highest Level What 200
The Mid-Level What 201
Solution Stakeholder Impact and Scope Definition 205
Gain Consensus on Scope Definition 206
Techniques 207
Brainstorming 210
Business Process Architecture 214
Business Value Modeling 215
Collaborative Games 215
Concept Modeling 216
Customer Journey Map 216
Focus Groups 217
Functional Decomposition 218
Gap Analysis 221
Glossary 221
House of Quality and Voice of Customer 222
Input, Guide, Output, Enablers (IGOE) 225
Kaizen Event 226
Kano Analysis 227
Mind Mapping 230
Process Analysis 231
Purpose Alignment Model 234
Scope Modeling 235
Story Mapping 238
Survey or Questionnaire 239
Planning and Facilitated Workshops 240
Summary of Key Points 243
Chapter References 243
Chapter 6 Step 5: Develop Solution Requirements and Design Definition 245
Decompose Scope Definition into Effective Solution Requirements 248
Elicitation 249
Collaboration 256
Analysis 257
Consensus 260
Decompose Solution Requirements into Effective Design Definition 260
Doneness: How Do I Know When I'm Done? 261
Techniques 264
Acceptance and Evaluation Criteria 266
Business Rules Analysis 266
Data Mining 268
Data Modeling 268
Data Dictionary 269
Data Flow Diagrams 271
Sequence Diagrams 273
State Modeling (State Table/State Diagram) 275
Interface Analysis 278
Lightweight Documentation 278
Nonfunctional Requirements Analysis 279
Observation 280
Process Modeling 281
Prototyping (Storyboarding, Wireframes) 283
Real Options 287
Roles and Permissions Matrix 288
Story Elaboration 289
Use Cases and Scenarios 289
User Stories 290
Summary of Key Points 292
Chapter References 293
Chapter 7 Step 6: Scope Management 295
Verify Requirements 298
Peer Reviews 299
Inspections 300
Validate Requirements 301
Recommend Solution(s) 302
Monitor Requirements and Design Definition 305
Tracing Requirements and Designs 305
Maintaining Requirements and Designs 308
Prioritizing Requirements and Designs 309
Monitoring Requirements and Designs 310
Scope Change 313
Techniques 316
Backlog Management 317
Change Control Board 318
Impact Analysis 319
Item Tracking/Issue Log 321
Prioritization 322
RCMS and VCS 327
Reviews 328
Traceability Matrix 329
Summary of Key Points 333
Chapter References 333
Chapter 8 Step 7: Evaluate the Solution 335
Evaluate Proposed Solutions 337
Recommend Actions to Increase Solution Value 339
Support Implementation SMEs 340
Support Testers 341
Assess Organizational Readiness 342
Develop Transition Requirements 342
Measure Solution Success 343
Analyze Performance Measures 343
Collect Measures 344
Analyze and Communicate Measures 344
Techniques 345
Definition of Done (DoD) 347
Failure Mode and Effect Analysis (FMEA) 348
Theory of Constraints (TOC) Thinking Processes 349
Specification by Example 350
Lessons Learned/Retrospective 351
Metrics and Key Performance Indicators (KPIs) 353
Product Portfolio Matrix 354
Relative Estimation 355
Vendor Assessment 356
Summary of Key Points 357
Chapter References 358
Glossary 359
Index 369