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Building Business Analysis Capabilities A Planning Toolkit from Enfocus Solutions Inc. http:// EnfocusSolutions.com. Building Business Analysis Capabilities. Table of Contents. The Value of Business Analysis 2 Why Business Analysis is Important 3

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slide1

Building Business Analysis CapabilitiesA Planning Toolkitfrom Enfocus Solutions Inc.http://EnfocusSolutions.com

building business analysis capabilities
Building Business Analysis Capabilities

Table of Contents

The Value of Business Analysis 2

Why Business Analysis is Important 3

Defining the Role of the Business Analyst 14

Current State of Business Analysis Maturity 17

Stakeholder Engagement 21

Benefits Realization Management 31

Enterprise Portfolio Management 37

Maturing your Business Analysis Capability 44

Business Analysis Performance Metrics 73

project success rates
Project Success Rates

Source: Standish Chaos Report, 2009

slide6

Project Success Rates

Source: Standish Group Chaos Reports

slide7

It Gets Worse!!!

  • Solutionwas ultimatelynotusedandwithdrawn because of lack of user adoption
  • Solution didnotdeliveronbusinesscase
  • Solution did not deliverexpected businessbenefits
  • Solution had poorusability, poor performance, orhigherrorratesrequiring rework

The following projects would have been considered successful if they had delivered all planned scope on-time and on budgetusing the CHAOS criteria, but …

waste 45 of functionality is never used
Waste: 45% of Functionality is never used

Source: Standish Group Report at XP Conference 2002 by Jim Johnson

slide9

Where are the Benefits?

  • “78% of Information Systems projects failed to realize even 50% of the originally identified benefits.” Source: Management Today
  • “Only 40% of CFOs find that their IT investments are producing the returns they expected. ” Source: Gartner, How to Optimize IT Investment Decisions
  • “30-40% of systems to support business change deliver no benefit whatsoever.” Source: OGC, Successful Delivery Toolkit
most projects deliver little or no business value
Most Projects Deliver Little or No Business Value

The Culprit

Poor business analysis is at the root of most project failures.

  • Poor requirements
  • Poor communications between business and development teams.
  • Business cases are mostly used to secure funding and are not used to manage project outcomes.
  • Low business analysis maturity levels for most organizations
  • There is serious lack of tools to support business analysis.
top 3 reasons for challenged projects
Top 3 Reasons for Challenged Projects

Source: Standish Chaos Report, 2011

Lack of User Input

Incomplete Requirements

Changing Requirements

All of these are symptoms of

Poor Business Analysis

the cost of poor business analysis
The Cost of Poor Business Analysis
  • Companies with poor business analysis capability will have three times as many project failures as successes.
  • 68% of companies are more likely to have a marginal project or outright failure than a success due to the way they approach business analysis. In fact, 50% of this group’s projects were “runaways” which had any 2 of the following:
    • Taking over 180% of target time to deliver.
    • Consuming in excess of 160% of estimated budget.
    • Delivering under 70% of the target required functionality.
  • Companies pay a premium of as much as 60% on time and budget when they use poor requirements practices on their projects.
  • Over 41% of the IT development budget for software, staff, and external professional services will be consumed by poor requirements at the average company using average analysts versus the optimal organization.
  • The vast majority of projects surveyed did not utilize sufficient business analysis skills to consistently bring projects in on time and budget. The level of competency required is higher than that employed within projects for 70% of the companies surveyed.

Source: Business Analysis Benchmark, IAG Consulting

most it projects deliver little or no business value
Most IT Projects Deliver Little or No Business Value

The Problem

Too many failed or challenged projects.

Significant functionality is developed but never used.

Projects seldom deliver benefits identified in the business case.

what are the benefits of good requirements
What are the Benefits of Good Requirements?

Significantly lower costs through less rework

Higher project success rates

Delivery of more value to the business through effective requirements prioritization

Faster time to market through earlier detection of defects

Better alignment between IT and the business

Higher user satisfaction

More efficient testing

Avoidance of costly workarounds resulting from missed requirements

business analysis is much more than requirements
Business Analysis is Much More than Requirements
  • Requirements
  • Requirements Elicitation
  • Requirements Development
  • Requirements Management
  • Enterprise Analysis
  • Problem Analysis
  • Business Case
  • Organization and Process Change
  • Business Process Modeling
  • Business Process Improvement
  • Stakeholder Analysis and Communications
  • Organizational Readiness
  • Organizational Change Management
  • Manage Delivery of Value
  • Solution Assessment and Validation
  • Business Benefits Realization
  • Enterprise Portfolio Management
business analyst role more about the business than it
Business outcome oriented

Business process improvement skills

Organizational change skills

Broad (not deep) IT technical knowledge

Customer management skills

Ability to conceptualize and think creatively

Can articulate a vision

Interpersonal skills, ethics, and integrity

Negotiation and conflict management skills

Analytical and communication skills

Business Analyst Role: More About the Business than IT
requirements maturity
Requirements Maturity

On average, performance virtually doubled as organizations progressed from using an ad-hoc approach for requirements definition and management to having institutionalized and consistent competency in business analysis.

Source: IAG Consulting Business Analysis Benchmark 2009

Improved on time performance of technology projects increased by 161%.

Reduced time overruns on projects by 87%.

Improved average on budget performance for technology projects by just over 95%.

Reduced budget overruns by just under 75%.

Improved the per cent of projects that deliver 100% of the functionality needed by the business by just over 75%.

Reduced average functionality missed by approximately 78%.

current state of business analysis maturity1
Current State of Business Analysis Maturity

Business analysis maturity is low for most organizations.

Effective requirements management does not necessarily equate to business analysis maturity.

The profession of business analysis is relatively new:

  • IIBA was formed in 2004.
  • IIBA chapters were not created until 2008.
  • Less than 2,500 Certified BAs (2,230 CBAP, 184 CCBAs).

IIBA’s competency model is geared towards individuals,not organizations.

There is no recognized standard for measuring Business Analysis maturity:

  • Kitty Hass and Associates.
  • CompassBA/PM™ CMM.
  • IAG Requirements Management Maturity Model.
  • CMMI Requirements Development and Requirements Management.
  • Enterprise Agility’s BAMM.
  • Enfocus Business Analysis Maturity Model.
how is your business analysis maturity
How is Your Business Analysis Maturity?

If you answer “Yes” to any item – Your BA Maturity is not where it needs to be.

Customers are not satisfied with product quality or IT services.

Business and IT stakeholders frequently have different interpretations of requirements.

Five types of requirements as specified in the IIBA BABOK are not defined and used consistently for all projects.

  • Business Requirements
  • Stakeholder Requirements
  • Functional Requirements
  • Nonfunctional Requirements
  • Transition Requirements

Business cases are seldom prepared or when prepared, only used for funding purposes.

After requirements elicitation, stakeholders are not involved again on the project until acceptance testing.

Solution alternatives do not consider stakeholder, business process, and IT service impact.

Requirements elicitation is haphazard.

Key stakeholders are often not included in requirements elicitation.

Important requirements are frequently missed.

Frequent and often unnecessary requirements changes delay projects.

ROI or some other measure of financial benefits is not estimated and measured on projects.

how can better collaboration between the solution team and stakeholders help
How can better Collaboration betweenthe Solution Team and Stakeholders Help?

Lack of user input is the #1 cause of project failures.

Joint ownership of requirements results in lower costs and higher quality solutions.

Organization change goes more smoothly when users and other stakeholders are involved through the entire lifecycle.

Effective business analysis is the key for better collaboration between stakeholders and developers.

slide24

Joint Responsibility for RequirementsMakes a Big Difference

Source IAG Business Analysis Benchmark, 2008

engage your stakeholders
Engage your Stakeholders!!!
  • Learn background and purpose of project
  • Document and express needs
  • Document business rules
  • Gather relevant background materials
  • Review and validate requirements
  • Participate in requirement prioritization
  • Review design documents
  • Participate in software and prototype demonstrations
  • Participate in retrospectives and capturing lessons learned
  • Provide additional information for unclear requirements
  • Build test scenarios and test cases for user acceptance testing
  • Perform user acceptance tests
  • Approve changes to requirement specifications
  • Define transition requirements
  • Help prepare the organization for change
why is solution scope important
Why is Solution Scope important?

Carefully defined solution scope is key to prevent scope creep, deliver value, and serve as a basis for gathering user needs and developing requirement specifications.

Solution scope consists of high-level Features of the proposed solution.

Features should be prioritized based on business value.

Features are used to capture stakeholder needs and organize requirements.

Using features significantly reduces solution scope creep.

Using features is highly-beneficial for both Agile and Waterfall development, as well as implementation of Commercial Packages.

Managing Features = Managing Business Value

two types of value for the user
Two Types of Value for the User

Gain Creators

Pain Relievers

Value is helping the user get a job done faster, more conveniently, and less expensively than before.

identify and understand your users
Identify and Understand Your Users
  • Identify all your various types of users
  • Prepare a persona for each user type
  • The personas should contain:
    • Responsibilities
    • Systems and Services Used
    • Profile
    • Expectations
  • Review the persona with real users to ensure that it adequately represents their view.
understand user s activities and problems
Understand User’s Activities and Problems
  • Users frequently cannot describe their needs. However, they almost always describe what they do and what problems they frequently encounter.
  • When customers do understand their needs, they often cannot communicate these needs clearly to developers.
  • Users should develop scenarios that describe the work they do.
    • Problem Scenarios – Describe problems encountered in performing their work
    • Activity Scenarios – Describe how users perform their daily work
    • Interaction Scenarios – Describe how users interact with the system
  • Business Analysts read the scenarios to determine how the solution will add value to the user’s job.
    • Pain Relievers
    • Gain Creators
  • Business Analysts develop functional requirements to address the needs outlined in the scenarios and validate the requirements with users and developers.
slide31

What are the Key Reasons Expected Business Benefits are not Achieved?

  • The business problem was poorly defined giving rise to a flawed business case.
  • The business case was poorly developed and established an incorrect or unrealistic expectation.
  • Requirements for the solution were inaccurate, incomplete, or were poorly defined.
  • Delivery of the solution was poorly executed.
  • The technical solution was fundamentally flawed.
  • The delivered solution was not effectively adopted by the business.
  • The business changed significantly between inception and project completion.
value index
Value Index

Business Benefits Received

-----------------------------------

Solution Cost

slide34

Benefits Realization Management

  • Benefits realization starts with defining a realistic business case.
  • Benefits do not just happen.
  • Benefits realization has its own lifecycle.
  • Benefits rarely happen according to plan.
  • Benefits realization is a continuous process of envisioning results, implementing, checking intermediate results, and dynamically adjusting the path leading from investments to business results.
  • Benefits realization is a process that can and must be managed, just like any other business process.
slide36

Benefits Realization Management

  • Validate and Re-Validate the Business Case
  • Create Benefit Realization Accountability
  • Create a Benefit Realization Management Plan
  • Measure and Evaluate Benefits Realization at Key Points
  • Identify Problems and Document Solutions
  • Continually Optimize Processes, Organization, and Technology to Achieve Benefits
  • Create a Benefits Dashboard
business analysis involves facilitating business change
Business Analysis Involves Facilitating Business Change

7 Core Aspects

12 Additional Aspects

Source: ePMbook

slide39

Portfolio Management

Portfolio Management is a corporate, strategic level process for coordinating successful delivery across an organization's entire set of programs and projects.

  • To obtain the highest return from your available resources given an acceptable level of risk.
  • To ensure balance – in terms of investment types and organizational strategies.
  • To ensure funding allocations reflect business priorities.
  • To reallocate funds when performance deteriorates and/or priorities change.
  • To manage dependencies, constraints and minimize double counting of benefits.
  • To manage Portfolio-level risk and uncertainty.
  • To provide transparent reporting on performance from strategic intent to benefits realization.
slide40

Portfolio Management is More Than Just Projects

Process

Portfolio

Process

BPM

IT Service

Portfolio

Technology

ITSM

ProjectPortfolio

Strategy

PPM

Stakeholder

Portfolio

People

Org. Change

  • Project Portfolio Management (PPM) is often not understood or embraced and is often managed quite haphazardly.
  • PPM is often has different tools and processes and organizations to manage projects, processes, applications, and IT services.
  • Enterprise portfolio management involves addressing strategy, people, process, and technology.
portfolio management managing for value
Portfolio ManagementManaging for Value
  • Evaluate
  • Value
  • Alignment
  • Fit
  • Innovation

Value

Are the benefits worth the effort and risk?

  • Optimize
  • Re-Scope
  • Re-Classify
  • Re-Assign (resources)
  • Re-Design (merge)
  • Remove (cancel)
  • Reschedule

Do the projects contribute to the strategic goals of the company?

Alignment

Do we have the resources and skills to complete the project?

Fit

  • Monitor
  • KPIs
  • Solution Delivery
  • Benefits Realization
  • Stakeholder Satisfaction

Are we willing to invest something new and will we gain a competitive advantage?

Innovation

slide42

Gartner’s View of Portfolio Management

  • Enterprise Portfolio Management Offices are beginning to emerge. The key driver is the need to merge technology and business projects under the same organization.
  • Organizations must consider moving beyond traditional IT portfolio management to align with mission critical business objectives.
  • Since 2008, there has been a high rate of PMO startup activity with an implementation failure rate of more than 50%.
  • By 2014, more than 30% of organizations will experience a proliferation of software tools installed to support Project and Portfolio Management processes and projects.
  • “Don’t start a PMO unless it focuses on demonstrable results and business value vs. process and administrative burden.”

Source: Gartner Group – Project Manager 2014

Effective portfolio management requires managing strategy, people, processes, and technology and focuses on delivering business value, not creating an additional process or administrative burden.

slide43

Key Takeaways for Portfolio Management

  • PMOs will emerge to EPMOs merging IT and business portfolio silos including:
    • IT Service Portfolio Management
    • Traditional PMOs
    • BA Centers of Excellence
  • Portfolio management will focus more on delivering value and less on standardization of processes and administration
  • By 2014, companies will invest 30% less time and money in traditional IT project management than in 2011. (Source: Gartner Group)
  • Business analysis skills will play a major role in realizing the potential benefits of an EPMO.
business value lifecycle
Business Value Lifecycle

Portfolio Management

Project Delivery

Benefits Realization

“Doing the Right Projects”

“Doing Projects Right”

“Harvesting the Benefits”

  • Solution Scoping
  • Business Case
  • Prioritization
  • Approval
  • Closing projects that are no longer important
  • Requirements
  • Design
  • Build
  • Test
  • Deploy
  • Measure
  • Evaluate
  • Optimize

Portfolio Governance

Project Management

Business Analysis

Enterprise Portfolio Management

business analysis capability maturity levels
Business Analysis Capability Maturity Levels

5

4

3

2

1

5.0

Innovating

Focus on innovations used to gain competitive advantage

4.0 Managed

Enterprise portfolio managed for business value

3.0 Aligned

Valuable solutions are delivered and aligned with the business

2.0 Defined

Business requirements defined and managed

1.0 Initial

Process unpredictable, poorly controlled and

reactive

enfocus business analysis maturity model
Enfocus Business Analysis Maturity Model™

3. Aligned

4. Managed

5. Innovating

1. Initial

2. Defined

Stage:

Survival

Projects

Business Alignment

Enterprise

Portfolio

Business Model

Innovation

Focus:

Awareness of the importance of business analysis

Business requirements defined and managed

Solutions aligned with the business

Enterprise portfolio managed for business value

Innovations used to gain competitive advantage

Goal:

Description:

Business analysis methods are not well established and defined. Deep fragmentation exists across the organization - one area does it one way while another unit is following a different process for getting the same thing done. Things get done through individual effort as opposed to a standardized process.

  • All five types of requirements are defined and managed in a consistent way.
  • Business requirements
  • Stakeholder requirements
  • Functional requirements
  • Nonfunctional requirements
  • Transition requirements

More advanced business analysis techniques are used to address business and organizational change. All projects are now aligned with business goals and objectives.

Given standard performance baselines, business analysts can now measure, benchmark and evaluate performance across the enterprise. Enterprise portfolio management practices are used to manage business benefits across the enterprise.

Business analysts work with business units to link enterprise goals and strategies to programs.

Business analysts work as internal consultants with business units to evaluate innovations to gain a competitive advantage.

Capabilities:

  • Elicitation
  • Solution scope
  • Requirements development
  • Requirements management
  • PM Partnership
  • Stakeholder engagement & communications
  • Business analysis planning and management
  • Solution analysis
  • Business case development
  • Business rules
  • Business process improvement
  • Organizational change
  • IT service strategy and design
  • Project portfolio management
  • Process portfolio management
  • Service portfolio management
  • Business Model /CapabilitiesAnalysis
  • Competitive market analysis
  • Enterprise portfolio management
  • Innovation management

Enterprise Portfolio Management Office

EPMO manages enterprise innovation

Community of Practice

Center of Excellence

understanding the levels
Understanding the levels

Understanding the Levels

1

2

3

4

5

Success depends on individual heroics

People

Processes

“Fire fighting”is a way of life

Measurement

Relationships between disciplines are uncoordinated, perhaps even adversarial

Technology

understanding the levels1
Understanding the Levels

1

2

3

4

5

People

Success depends on individuals

Commitments are understoodand managed

People are trained

Processes

Measurement

Technology

understanding the levels2
Understanding the Levels

1

2

3

4

5

People

Project groups work together,perhaps as an integrated team

Training is planned and providedaccording to roles

Processes

Measurement

Technology

understanding the levels3
Understanding the Levels

1

2

3

4

5

People

Processes

Strong sense of teamworkexists within each project

Measurement

Technology

understanding the levels4
Understanding the Levels

1

2

3

4

5

People

Strong sense of teamworkexists across the organization

Everyone is involved inprocess improvement

Processes

Measurement

Technology

understanding the levels5
Understanding the Levels

1

2

3

4

5

People

Few stable processes exist or are used

“Just do it!”

Processes

Measurement

Technology

understanding the levels6
Understanding the Levels

1

2

3

4

5

People

At the individual project level,documented and stableestimating, planning andcommitment processes are used

Problems are recognized andcorrected as they occur

Processes

Measurement

Technology

understanding the levels7
Understanding the Levels

1

2

3

4

5

People

Integrated management andengineering processes(how things get built)are used across theorganization

Problems are anticipated andprevented, or their impacts areminimized

Processes

Measurement

Technology

understanding the levels8
Understanding the Levels

1

2

3

4

5

People

Processes are quantitativelyunderstood and stabilized

Sources of individual problems areunderstood and eliminated

Processes

Measurement

Technology

understanding the levels9
Understanding the levels

Understanding the Levels

1

2

3

4

5

People

Processes are continuously andsystematically improved

Common sources of problems areunderstood and eliminated

Processes

Measurement

Technology

capability maturity model
Capability Maturity Model

Figure out

where you

are?

5. Innovating

4. Managed

3. Aligned

2. Defined

1. Initial

capability maturity model1
Capability Maturity Model

5. Innovating

Ratchet up

gradually

over time

4. Managed

3. Aligned

2. Defined

1. Initial

capability maturity model2
Capability Maturity Model

Don’t skip steps

5. Innovating

4. Managed

3. Aligned

2. Defined

1. Initial

capability maturity model3
Capability Maturity Model

5. Innovating

Don’t slip back!

4. Managed

3. Aligned

2. Defined

1. Initial

capability maturity model4
Capability Maturity Model

Pick projects

Appropriate

For your

level

5. Optimizing

4. Quantitatively Managed

3. Defined

2. Managed

1. Initial

slide64

Business Analysis Maturity Progression

Defined

Aligned

Innovating

Initial

Managed

FUTURE

Processinitiated

StrategicAlignment

Corporateagenda

End-to-endoversight

48 mths

Full control

Competencycenter

No linkage

Linkage between corporate priorities and BA capabilities

Early warning

Automation

24 mths

Internalchampions

Reviews

Structuredapproach

Routine

Governance

Sophisticatedsoftware

Uncoordinated

Standards

12 mths

Transparent accountability, decision making, rewards

Training

Widely accepted

Positivesupport

Externalexpertise

6 mths

Process & Practices

Various methods

Involvement

Standardized approach,

techniques &

methods

Current

Individual effort

Limited commitment

Limited (e.g., Word)

InformationTechnology

Skills & Competencies

Culture

CURRENT

Knowledge management, collaboration, and automated business analysis support

Skills, competencies, and domain knowledge

Beliefs and values leading to attitudes committing to value of business analysis

strategic alignment
Strategic Alignment

Business Analysis Maturity Progression

Business Alignment

Defined BA Role

Project ManagementAlignment

Business analysis services must support the needs of the business.

BA processes and practices, including reporting relationships must align and support project management processes.

Role and responsibilities of the BA must defined and clearly understood by all.

StrategicCapabilities

SDLC Alignment

Core capabilities should be identified, a gap analysis conducted, and a program developed to build BA capabilities.

BA processes and practices must align and support systems development processes.

Best practice examples of BA artifacts such as requirements, problem statements, visions, etc.

Best practice examples of BA artifacts such as requirements, problem statements, visions, etc.

governance
Governance

Business Analysis Maturity Progression

Executive

Support

Measurement

Funding

COEs require funding to pay for staff development, technology, and support.

Strong ongoing Executive support is required.

Effective KPIs should be in place to measure COE performance.

COE Charter

Clear objective and responsibilities should be defined including defined reporting relationships.

Best practice examples of BA artifacts such as requirements, problem statements, visions, etc.

Best practice examples of BA artifacts such as requirements, problem statements, visions, etc.

processes and practices
Processes and Practices

Business Analysis Maturity Progression

Business

Analysis Framework

Business Analysis

Practice Guidelines

Business Analysis

Techniques

Alter the way business analysis tasks are performed or describe a specific format for the output of a task.

Methodology that describes the tasks for performing business analysis activities.

Guidelines for performing business analysis activities defined in the framework.

Example

Artifacts

Business Analysis

Visualization Methods

Describe how to improve the communication of business analysis artifacts through graphic visualizations.

Best practice examples of BA artifacts such as requirements, problem statements, visions, etc.

Best practice examples of BA artifacts such as requirements, problem statements, visions, etc.

information technology
Information Technology

Business Analysis Maturity Progression

Business Analysis

Software

Collaboration

Provide automated support for business analysis processes.

Enable collaboration between business and technical stakeholders.

Reusable Objects

Knowledge Management

Share knowledge on business processes, practices and domain knowledge.

Reusable BA artifacts that can be reused among projects.

skills and competencies
Skills and Competencies

Business Analysis Maturity Progression

CompetencyModel

Reference Library

Learning & Professional Development

Comprehensive resources on a variety of topic should be available for BAs to learn and grow.

A defined competency model is needed to guide individual BA development.

The COE should offer ongoing education to build BA skills.

Reusable BA Artifacts that can be reused among projects

culture
Culture

Building Effective BA Capabilities Requires Significant Changes to Culture

Executives

Business

Stakeholders

Technical

Stakeholders

Executives should see BA as strategic to the organization and essential for project success

Comprehensive resources on a variety of topic should be available for BAs to learn and grow.

Technical Stakeholders should clear value from better requirements and see less rework and frustration.

Project Managers

Business Analysts

Reusable BA Artifacts that can be reused among projects

Project managers should see the BA as essential partners for delivering successful projects.

BAs must view themselves as more than just requirement writers.

performance metrics
Performance Metrics

Business Analysis Metrics

Requirements Management Metrics