Delivering Maximum Value Through Effective Business Analysis

• 1. 9/18/12 Delivering Maximum ValueThrough Eective Business AnalysisJohn Parker, CEOEnfocus Solutions Inc.www.enfocussolutions.com Copyright 2012 Enfocus Solu:ons Inc. All Rights Reserved. 0 The Problem Most IT Projects Deliver Li2le or No Business Value Too many failed or challenged projects. Signicant func:onality is developed but never used. Projects seldom deliver benets iden:ed in the business case. Copyright 2012 Enfocus Solu:ons Inc. All Rights Reserved. 1 1

2. 9/18/12 Project Success Rates Failed, 24% Successful, 32% Challenged, 44% Source: Standish Chaos Report, 2009 Copyright 2012 Enfocus Solu:ons Inc. All Rights Reserved. 2 Project Success Rates Original Waterfall Agile Category DescripJon 1994 2011 2011 Completed on +me and budget, Successful with all features and func+ons 16% 14% 42% Project as specied. Completed, but were over budget, Challenged late, or lacking some originally-53% 57% 49% Project specied features and func+ons. Project Abandoned or cancelled at some Impaired/ 31% 29% 9% point and thus became a total loss. Failed Source: Standish Group Chaos Reports Copyright 2012 Enfocus Solu:ons Inc. All Rights Reserved. 3 2 3. 9/18/12 It Gets Worse!!! The following projects would have been considered successful if they had delivered all planned scope on-:me and on budget using the CHAOS criteria, but Solu:on was ul:mately not used and withdrawn because of lack of user adop:on Solu:on did not deliver on business case Solu:on did not deliver expected business benets Solu:on had poor usability, poor performance, or high error rates requiring rework Copyright 2012 Enfocus Solu:ons Inc. All Rights Reserved. 4 Waste: 45% of FuncJonality is never used Source: Standish Group Report at XP Conference 2002 by Jim Johnson 5 Copyright 2012 Enfocus Solu:ons Inc. All Rights Reserved. 3 4. 9/18/12 Where are the Benets? 78% of Informa:on Systems projects failed to realize even 50% of the originally iden:ed benets. Source: Management Today Only 40% of CFOs nd that their IT investments are producing the returns they expected. Source: Gartner, How to Op+mize IT Investment Decisions 30-40% of systems to support business change deliver no benet whatsoever. Source: OGC, Successful Delivery Toolkit Copyright 2012 Enfocus Solu:ons Inc. All Rights Reserved. 6 The Culprit Most Projects Deliver Li2le or No Business Value Poor business analysis is at the root of most project failures. o Poor requirements o Poor communica:ons between business and development teams. o Business cases are mostly used to secure funding and are not used to manage project outcomes. o Low business analysis maturity levels for most organiza:ons o There is serious lack of tools to support business analysis. Copyright 2012 Enfocus Solu:ons Inc. All Rights Reserved. 7 4 5. 9/18/12 Top 3 Reasons for Challenged Projects 1. Lack of User Input 2. Incomplete Requirements 3. Changing Requirements All of these are symptoms of Poor Business Analysis Source: Standish Chaos Report, 2011 Copyright 2012 Enfocus Solu:ons Inc. All Rights Reserved. 8 The Cost of Poor Business Analysis 1. Companies with poor business analysis capability will have three :mes as many project failures as successes. 2. 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 groups projects were runaways which had any 2 of the following: Taking over 180% of target :me to deliver. Consuming in excess of 160% of es:mated budget. Delivering under 70% of the target required func:onality. 3. Companies pay a premium of as much as 60% on :me and budget when they use poor requirements prac:ces on their projects. 4. Over 41% of the IT development budget for sofware, sta, and external professional services will be consumed by poor requirements at the average company using average analysts versus the op:mal organiza:on. 5. The vast majority of projects surveyed did not uJlize sucient business analysis skills to consistently bring projects in on :me 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 Consul:ng Copyright 2012 Enfocus Solu:ons Inc. All Rights Reserved. 9 5 6. 9/18/12 EecJve Business Analysis Must Address SoluJon Planning, SoluJon Delivery and Benets RealizaJon SoluJon Planning Business Case Solu+on Scope Requirements SoluJon Delivery (Cost, Scope, Schedule and Quality) Monitors project delivery (on-+me, on-budget, delivers all scope and meets quality objec+ves). Ensures the solu:on meets requirements. Monitors user and stakeholder engagement and par:cipa:on. Benets RealizaJon Ensures that expected business outcomes are achieved (e.g., revenues, costs savings, customer sa+sfac+on, growth/market share, etc.). Requires clear measurement and repor:ng well afer the project has been delivered. Focuses on Key Performance Indicators (KPI) and works best when accountable business owners have KPIs locked in scorecards or business plan targets. Copyright 2012 Enfocus Solu:ons Inc. All Rights Reserved. 10 Business Analysis is Much More than Requirements Requirements Enterprise Analysis Requirements Elicita:on Problem Analysis Requirements Development Business Case Requirements Management OrganizaJon and Process Change Business Process Modeling Business Process Improvement Stakeholder Analysis and Communica:ons Organiza:onal Readiness Organiza:onal Change Management Manage Delivery of Value Solu:on Assessment and Valida:on Business Benets Realiza:on Enterprise Pormolio Management Copyright 2012 Enfocus Solu:ons Inc. All Rights Reserved. 11 6 7. 9/18/12 Business Analyst Role: More About the Business than IT Business outcome oriented Business process improvement skills Organiza:onal change skills Broad (not deep) IT technical knowledge Customer management skills Ability to conceptualize and think crea:vely Can ar:culate a vision Interpersonal skills, ethics, and integrity Nego:a:on and conict management skills Analy:cal and communica:on skills Copyright 2012 Enfocus Solu:ons Inc. All Rights Reserved. 12 IIBAs Business Analysis Framework There are big changes coming in the role of business analysis. The focus will be much more on understanding stakeholders and their needs, analyzing change, and delivering value. Understanding how to use these components and the rela:onships between them results in understanding your stakeholders, what they value, and how to beper deliver that value. Version 3 is coming Copyright 2012 Enfocus Solu:ons Inc. All Rights Reserved. 13 7 8. 9/18/12 Lack of Automated Business Analysis Tools There are many tools on the market that address some aspect of business analysis, but most address only a small part of the problem. Many organiza:ons use Microsof Word and SharePoint for business analysis. These are good tools, but using them for business analysis is like using hammer and screwdriver to construct a skyscraper. Most tools focus exclusively on the development team and ignore stakeholder and business needs. Pormolio Requirements Project Management Management Management IT Service Management Agile Development Applica:on Lifecycle Management Copyright 2012 Enfocus Solu:ons Inc. All Rights Reserved. 14 Most Requirement Tools Address Only a Small Part of Business Analysis Problem statements Requirements Valida:on Opportunity and vision Requirements Traceability Business Case Requirements Change Constraints Management Assump:ons Solu:on Acquisi:on Stakeholder Analysis Solu:on Assessment and Business Process Analysis Verica:on Capability Gap and Impact Requirements lifecycle Analysis Management Business Rules User Acceptance Tests Elicita:on Transi:on Requirements User Needs Analysis Retrospec:ves Requirements Development Pormolio Management Requirements Bundling Benets Realiza:on Management Orange highligh:ng is what simple requirements management tools provide. Copyright 2012 Enfocus Solu:ons Inc. All Rights Reserved. 15 8 9. 9/18/12 Poll What tool do you use for business analysis ac:vi:es? Microsof Word, Excel, and/or SharePoint A simple requirements management tool A comprehensive business analysis solu:on Other Copyright 2012 Enfocus Solu:ons Inc. All Rights Reserved. 16 Deliver Maximum Value Copyright 2012 Enfocus Solu:ons Inc. All Rights Reserved. 17 9 10. 9/18/12 A Balanced Scorecard View of Business Value Financial Stakeholder Delivering a posi:ve ROI for Sa:sfying the needs of stakeholders by increasing internal and external revenues, decreasing costs. stakeholders. Internal Business Process Learning and Growth Improving performance Helping users adopt the by reducing cycle :me, solu:on resul:ng in elimina:ng waste, avoiding increased skills, high defects, increasing employee sa:sfac:on, and eciency, and spending bringing innova:on to new less :me on non-value and exis:ng products. added ac:vi:es. Copyright 2012 Enfocus Solu:ons Inc. All Rights Reserved. 18 7 Business Analysis Technique To Deliver More Value Copyright 2012 Enfocus Solu:ons Inc. All Rights Reserved. 19 10 11. 9/18/12 Change Project Success Focus to Delivering Value The ul:mate success of a project involves much more than successfully delivering the solu:on on :me, on budget, and with all planned scope. The m ain c riteria f or s uccess i s w hether t he b usiness benets a s p roposed d uring t he i niJal b usiness c ase were a chieved. Copyright 2012 Enfocus Solu:ons Inc. All Rights Reserved. 20 Achieving Value Source: Panorama Consul+ng Copyright 2012 Enfocus Solu:ons Inc. All Rights Reserved. 21 11 12. 9/18/12 Why is a Business Case Needed? A well-dened business case is an essenJal rst step for delivering more value to the business. The successful business case allows the decision maker to condently choose a course of ac:on. In the end, it answers the ques:on: Should we undertake this iniJaJve? The Business Case should not be used just for funding. It should be updated and used in the benets realiza:on management process. Copyright 2012 Enfocus Solu:ons Inc. All Rights Reserved. 22 Business Case Lifecycle Copyright 2012 Enfocus Solu:ons Inc. All Rights Reserved. 23 12 13. 9/18/12 Requirements: Three PerspecJves Business PerspecJve What business needs must be sa:sed, and what metrics iden:fy that the project is successful? Customer/User PerspecJve What problems needs to be solved how will users interact with the solu:on? Technical PerspecJve What technology changes are required to ensure that the projects objec:ves will be accomplished? Not adequately addressing all three of these perspec:ves will result in a subop:mal solu:on. Copyright 2012 Enfocus Solu:ons Inc. All Rights Reserved. 24 5 Types of Requirements According to IIBAs BABOK, there are ve types of requirements. Business Requirements The vast majority of requirements management tool only addresses solu:on requirements. Stakeholder Requirements Business stakeholder and transi:on requirements cannot be not ignored to SoluJon Requirements achieve maximum value. Func:onal Nonfunc:onal If your current requirements tool does not support all 5 types of TransiJon Requirements requirements, nd a dierent tool! Copyright 2012 Enfocus Solu:ons Inc. All Rights Reserved. 25 13 14. 9/18/12 Requirements Maturity On average, performance virtually doubled as organiza:ons progressed from using an ad-hoc approach for requirements deni:on and management to having ins:tu:onalized and consistent competency in business analysis. Improved on :me performance of technology projects increased by 161%. Reduced :me 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 func:onality needed by the business by just over 75%. Reduced average func:onality missed by approximately 78%. Source: IAG Consul+ng Business Analysis Benchmark 2009 Copyright 2012 Enfocus Solu:ons Inc. All Rights Reserved. 26 How can be2er CollaboraJon between the SoluJon 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 solu:ons. Organiza:on change goes more smoothly when users and other stakeholders are involved through the en:re lifecycle. Eec:ve business analysis is the key for beper collabora:on between stakeholders and developers. Copyright 2012 Enfocus Solu:ons Inc. All Rights Reserved. 27 14 15. 9/18/12 Joint Responsibility for Requirements Makes a Big Dierence Who owns Primary Budget Time FuncJonality Stakeholder Time Responsibility for Requirements % of Target % of Target % of Target % of Target IT 162.9 172 91.4 172.9 Business 196.5 245.3 110.1 201.3 Jointly Owned 143.4 159.3 103.7 163.4 Source IAG Business Analysis Benchmark, 2008 Copyright 2012 Enfocus Solu:ons Inc. All Rights Reserved. 28 Engage your Stakeholders!!! Learn background and purpose of project Document and express needs Document business rules Gather relevant background materials Review and validate requirements Par:cipate in requirement priori:za:on Review design documents Par:cipate in sofware and prototype demonstra:ons Par:cipate in retrospec:ves and capturing lessons learned Provide addi:onal informa:on for unclear requirements Build test scenarios and test cases for user acceptance tes:ng Perform user acceptance tests Approve changes to requirement specica:ons Dene transi:on requirements Help prepare the organiza:on for change Copyright 2012 Enfocus Solu:ons Inc. All Rights Reserved. 29 15 16. 9/18/12 What is SoluJon Scope? Project Scope SoluJon Scope Project Scope includes the The Solu:on Scope describes work needed to create a the characteris:cs, features, product or deliver a service or func:ons of the product or or result. Project Scope service to be built. Solu:on denes the work required to scope is all about the solu:on create and deploy the to be implemented: how will product. The project scope it look, how will it func:on, statement is prepared by the and other characteris:cs, etc. project manager. A business analyst prepares the product or solu:on scope. Copyright 2012 Enfocus Solu:ons Inc. All Rights Reserved. 30 Why is SoluJon Scope important? Solu:on scope consists of high-level Features of the proposed solu:on. Features should be priori:zed based on business value. Features are used to capture stakeholder needs and organize requirements. Using features signicantly reduces solu:on scope creep. Using features is highly-benecial for both Agile and Waterfall development, as well as implementa:on of Commercial Packages. Managing Features = Managing Business Value Carefully dened solu:on scope is key to prevent scope creep, deliver value, and serve as a basis for gathering user needs and developing requirement specica:ons. Copyright 2012 Enfocus Solu:ons Inc. All Rights Reserved. 31 16 17. 9/18/12 Two Types of Value for the User Value is helping the user get a job done faster, more conveniently, and less expensively than before. Pain Relievers Gain Creators Copyright 2012 Enfocus Solu:ons Inc. All Rights Reserved. 32 IdenJfy and Understand Your Users Iden:fy all your various types of users Prepare a persona for each user type The personas should contain: Responsibili:es Systems and Services Used Prole Expecta:ons Review the persona with real users to ensure that it adequately represents their view. Copyright 2012 Enfocus Solu:ons Inc. All Rights Reserved. 33 17 18. 9/18/12 Understand Users AcJviJes 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 ofen 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 AcJvity Scenarios Describe how users perform their daily work InteracJon Scenarios Describe how users interact with the system Business Analysts read the scenarios to determine how the solu:on will add value to the users job. Pain Relievers Gain Creators Business Analysts develop func:onal requirements to address the needs outlined in the scenarios and validate the requirements with users and developers. Copyright 2012 Enfocus Solu:ons Inc. All Rights Reserved. 34 What are the Key Reasons Expected Business Benets are not Achieved? The business problem was poorly dened giving rise to a awed business case. The business case was poorly developed and established an incorrect or unrealis:c expecta:on. Requirements for the solu:on were inaccurate, incomplete, or were poorly dened. Delivery of the solu:on was poorly executed. The technical solu:on was fundamentally awed. The delivered solu:on was not eec:vely adopted by the business. The business changed signicantly between incep:on and project comple:on. Copyright 2012 Enfocus Solu:ons Inc. All Rights Reserved. 35 18 19. 9/18/12 Value Index Business Benets Received ----------------------------------- SoluJon Cost Copyright 2012 Enfocus Solu:ons Inc. All Rights Reserved. 36 Benets RealizaJon Management Benets realiza:on starts with dening a realis:c business case. Benets do not just happen. Benets realiza:on has its own lifecycle. Benets rarely happen according to plan. Benets realiza:on is a con:nuous process of envisioning results, implemen:ng, checking intermediate results, and dynamically adjus:ng the path leading from investments to business results. Benets realiza:on is a process that can and must be managed, just like any other business process. Copyright 2012 Enfocus Solu:ons Inc. All Rights Reserved. 37 19 20. 9/18/12 Benets RealizaJon Management Copyright 2012 Enfocus Solu:ons Inc. All Rights Reserved. 38 Benets RealizaJon Management 1. Validate and Re-Validate the Business Case 2. Create Benet Realiza:on Accountability 3. Create a Benet Realiza:on Management Plan 4. Measure and Evaluate Benets Realiza:on at Key Points 5. Iden:fy Problems and Document Solu:ons 6. Con:nually Op:mize Processes, Organiza:on, and Technology to Achieve Benets 7. Create a Benets Dashboard Copyright 2012 Enfocus Solu:ons Inc. All Rights Reserved. 39 20 21. 9/18/12 Poll To what extent does your organiza:on perform benets realiza:on management ? Done for every project Never Occasionally for high prole projects Copyright 2012 Enfocus Solu:ons Inc. All Rights Reserved. 40 Poroolio Management PorUolio Management is a corporate, strategic level process for coordina+ng successful delivery across an organiza+ons en+re 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 organiza:onal strategies. To ensure funding alloca:ons reect business priori:es. To reallocate funds when performance deteriorates and/or priori:es change. To manage dependencies, constraints and minimize double coun:ng of benets. To manage Pormolio-level risk and uncertainty. To provide transparent repor:ng on performance from strategic intent to benets realiza:on. Copyright 2012 Enfocus Solu:ons Inc. All Rights Reserved. 41 21 22. 9/18/12 Poroolio Management is More Than Just Projects Project Stakeholder Process IT Service Pormolio Pormolio Pormolio Pormolio Strategy People Process Technology PPM Org. Change BPM ITSM Project Pormolio Management (PPM) is ofen not understood or embraced and is ofen managed quite haphazardly. PPM is ofen has dierent tools and processes and organiza:ons to manage projects, processes, applica:ons, and IT services. Enterprise pormolio management involves addressing strategy, people, process, and technology. Copyright 2012 Enfocus Solu:ons Inc. All Rights Reserved. 42 Poroolio Management Managing for Value Evaluate Value Value Are the benets worth the eort and risk? Alignment Fit Innova:on Do the projects contribute to the strategic OpJmize Alignment goals of the company? Re-Scope Re-Classify Re-Assign (resources) Do we have the resources and skills to Re-Design (merge) Fit complete the project? Remove (cancel) Reschedule Monitor Are we willing to invest something new and KPIs InnovaJon will we gain a compe::ve advantage? Solu:on Delivery Benets Realiza:on Stakeholder Sa:sfac:on Copyright 2012 Enfocus Solu:ons Inc. All Rights Reserved. 43 22 23. 9/18/12 Gartners View of Poroolio Management Enterprise Poroolio Management Oces are beginning to emerge. The key driver is the need to merge technology and business projects under the same organiza:on. Organiza:ons must consider moving beyond tradi:onal IT pormolio management to align with mission cri:cal business objec:ves. Since 2008, there has been a high rate of PMO startup ac:vity with an implementa:on failure rate of more than 50%. By 2014, more than 30% of organiza:ons will experience a proliferaJon of sopware tools installed to support Project and Pormolio Management processes and projects. Dont start a PMO unless it focuses on demonstrable results and business value vs. process and administra9ve burden. Source: Gartner Group Project Manager 2014 Eec:ve pormolio management requires managing strategy, people, processes, and technology and focuses on delivering business value, not crea:ng an addi:onal process or administra:ve burden. Copyright 2012 Enfocus Solu:ons Inc. All Rights Reserved. 44 Key Takeaways for Poroolio Management PMOs will emerge to EPMOs merging IT and business pormolio silos including: IT Service Pormolio Management Tradi:onal PMOs BA Centers of Excellence Pormolio management will focus more on delivering value and less on standardiza:on of processes and administra:on By 2014, companies will invest 30% less :me and money in tradi:onal IT project management than in 2011. (Source: Gartner Group) Business analysis skills will play a major role in realizing the poten:al benets of an EPMO. Copyright 2012 Enfocus Solu:ons Inc. All Rights Reserved. 45 23 24. 9/18/12 Business Value Lifecycle Poroolio Management Project Delivery Benets RealizaJon Doing the Right Projects Doing Projects Right Harves+ng the Benets Solu:on Scoping Requirements Measure Business Case Design Evaluate Priori:za:on Build Op:mize Approval Test Closing projects Deploy that are no longer important Pormolio Governance Project Management Business Analysis Enterprise Pormolio Management Copyright 2012 Enfocus Solu:ons Inc. All Rights Reserved. 46 The Enfocus Requirement Suite is a Comprehensive Business Analysis SoluJon Successful projects require a proven business analysis solu:on, not just a simple requirements management tool. Dening the Problem Preparing the Business Case Op:mizing the Business Process Addressing Organiza:onal Change Scoping the Solu:on Elici:ng Needs Developing the Solu:on Requirements Managing the Requirements Planning the Transi:on Assessing the Solu:on Realizing the Benets Managing the Enterprise Pormolio Copyright 2012 Enfocus Solu:ons Inc. All Rights Reserved. 47 24 25. 9/18/12 Enfocus Requirements Suite Product Components Provided as a hosted Sopware as a Service (SaaS) Oering Sopware Comprehensive Tool CollaboraJon Requirement management Collabora:on and tool to deliver business value communica:on for and innova:on. customer sa:sfac:on. Content Methods and Techniques Training and Knowledge Best prac:ce requirement Business analyst training and management methods prac:ce aids for excellent and techniques. requirements. Copyright 2012 Enfocus Solu:ons Inc. All Rights Reserved. 48 Support for Iith Industry SBest PracJces Compliance wndustry tandards The Enfocus Requirements Suite provides full support for every task in IIBAs BABOK. In addi:on, the following other best prac:ces are addressed in the tool: CMMI ITIL Service Strategy and Design BPM CBOK TOGAF PMBOK APQC PCF Copyright 2012 Enfocus Solu:ons Inc. All Rights Reserved. 49 25 26. 9/18/12 Enfocus Requirement Suite Facilita:ng Collabora:on between Teams and Stakeholders Solu:on Teams Stakeholders Shared Repository Copyright 2012 Enfocus Solu:ons Inc. All Rights Reserved. 50 Enfocus Requirement Suite Requirements Excellence Framework The Requirements Excellence Framework is a complete business analysis methodology that addresses both business analysis and stakeholder tasks. Using Requirements Excellence Framework helps deliver maximum value to the business. Copyright 2012 Enfocus Solu:ons Inc. All Rights Reserved. 51 26 27. 9/18/12 Requirements Development Enter Requirements Using Paperns Copyright 2012 Enfocus Solu:ons Inc. All Rights Reserved. 52 Example Requirements Requirement Coach Comprehensive business analysis training by industry expert, Karl Wiegers APQC Benchmarking Thousands of example requirements KPIs for numerous industries and processes Numerous checklists and templates Hundreds of example personas and scenarios Copyright 2012 Enfocus Solu:ons Inc. All Rights Reserved. 53 27 28. 9/18/12 Next Steps: Visit www.enfocussolu:ons.com for more informa:on about our company and our product. Contact our sales department for more informa:on or to schedule a demo. Sign up for a free Trial. Select Enfocus Solu:ons as your tool vendor and partner. Start Maximizing Business Value through Beper Business Analysis. Copyright 2012 Enfocus Solu:ons Inc. All Rights Reserved. 54 Q & A Copyright 2012 Enfocus Solu:ons Inc. All Rights Reserved. 55 28