The Key Role of Business Analysis in Project Success and Achieving Business Value Alan McSweeney
Key role of business analysis in project success
Jan 12, 2015
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The Key Role of Business Analysis in Project Success and Achieving Business Value
Alan McSweeney
April 10, 2023 2
Objectives
• To define the importance of effective business analysis in ensuring project success and delivery of business value
April 10, 2023 3
IT Challenge to Deliver Business Value
• IT is viewed as a provider and enabler of business value
• IT faces pressure to deliver value− Additional revenue− Reduced or avoided costs− Greater productivity− Reduced risk− Respond quickly to changing
business environment and business needs
• IT needs to structure itself to deliver business value
Managing the IT Budget
Managing the IT Capability
Managing IT for Business
Value
Managing IT Like a Business
Provides Alignment Between Business and IT
Provides Metrics to Close the Loop on Value
April 10, 2023 4
Familiar View of Project and Project Portfolio Management
Project Portfolio Management
Programme and Project
Management
Prioritising Projects
Managing Projects Successfully
Project Approvals
Project Requests
Demand Management
Supply Management
Strategic Alignment
Project Management Methodology
Organisation Enablers
People Management and Education
• Contains the implicit assumption that the solutions being delivered by the projects are designed properly, are implementable and operable and meet business requirements
• Is this correct? Is this the complete picture?• More is need than just the right project managed the right way
− The solution being delivered by the project must meet business needs
April 10, 2023 5
Aligning the Solutions Being Delivered to Business Needs and Delivery of Business Value
• Need more than project management− Not the complete picture− Cannot treat project management in isolation
• Need to ensure that the solution being managed meets business requirements
• Need to ensure business requirements are captured• Need to ensure that solutions are designed to deliver business
requirements and comply with organisation’s enterprise architecture
• Fundamentally the project exists to manage the delivery of the solution that has been designed to meet agreed business requirements that assist with delivery of the business plan to achieve business value
April 10, 2023 6
Business Analysis and Design Builds Bridge From Business to Solution
ProblemRequirement
Current State
Business Analysis and Solution
Design
Solution
Desired Future State
Business Analysis:
Elicit Requirements Analyse
Communicate Validate
Solution Design:
Translate Requirements into
Solution
• Business analysis is a key driver of business value• Solution delivery start with business analysis
April 10, 2023 7
Weaknesses in Business Analysis Capabilities and Competencies at the Root of Many Project Failures
Business Needs Not Met
Opportunities Lost
Investment Wasted
Inadequate Business Case, Undefined Problem/Need
Business Benefits Not Measured
Poor Analysis Practices
Business Requirements Not Captured
Poor Requirements
Poor Strategic Alignment
Poor Focus on Business Needs
Inadequate Resource Allocation and Prioritisation
Inadequate Business Involvement
Poor Solution Design
Inadequately Explored Solution Options
Solution Design Not Aligned to Business Needs
Large Project, Complex, Difficult Changes and
Processes
Large Project Team and Multiple Stakeholders
Size/Capacity/
Complexity
Uncertainly/Ambiguity
Unproven Technology
Dynamic, Changing Environment
April 10, 2023 8
Analysis-Related Causes of Failures
Business Needs Not Met
Opportunities Lost
Investment Wasted
Inadequate Business Case, Undefined Problem/Need
Business Benefits Not Measured
Poor Analysis Practices
Business Requirements Not Captured
Poor Requirements
Poor Strategic Alignment
Poor Focus on Business Needs
Inadequate Resource Allocation and Prioritisation
Inadequate Business Involvement
Poor Solution Design
Inadequately Explored Solution Options
Solution Design Not Aligned to Business Needs
Large Project, Complex, Difficult Changes and
Processes
Large Project Team and Multiple Stakeholders
Size/Capacity/
Complexity
Uncertainly/Ambiguity
Unproven Technology
Dynamic, Changing Environment
April 10, 2023 9
Consistent Approach to Business Analysis
• Adopt a consistent and robust framework in business analysis − Enables effective benefits realisation through a solution which meets the
business need• Key elements− Establish enterprise standards, procedures and governance− Standardise on infrastructure, analysis methods and operational procedures− Develop competence and skills
• Key benefits− Implement solutions that meet business needs− Increase the ability of the business to adapt quickly to changes− Reduce risk, complexity, redundancy and support complexity− Align business and IT− Enable re-use and faster time-to-market− Present one face to the business (customer) − Increase business value
April 10, 2023 10
Business Analysis Role Key Skills and Abilities
Business Analysis Role Skills and
Abilities
Business Analysis Role-Specific Performance
Competencies
Personal Underlying Competencies and
Characteristics
Techniques and Tools Experience
and Skills
April 10, 2023 11
What Makes a Good Business Analyst and Business Analysis Function?
Business Analysis Role Skills and Abilities
Business Analysis Role-Specific Performance
Competencies
Personal Underlying Competencies and
Characteristics
Techniques and Tools Experience and Skills
Business Analysis Planning and Monitoring
Requirements and Information Elicitation
Requirements AnalysisRequirements
Management and Communication
Enterprise Analysis Solution Assessment and Validation
April 10, 2023 12
Business Analysis Key Skills
Business Analysis Role Skills and Abilities
Business Analysis Role-Specific Performance
Competencies
Personal Underlying Competencies and
Characteristics
Techniques and Tools Experience and Skills
Analytical Thinking and Problem Solving Organisation and Trust
Business, Industry and Organisation Knowledge Communication Skills
Facilitation, Negotiation, Leadership, Influencing and
TeamworkAnalysis Tools
April 10, 2023 13
Business Analysis Key SkillsBusiness Analysis Role Skills
and Abilities
Business Analysis Role-Specific Performance
Competencies
Personal Underlying Competencies and
Characteristics
Techniques and Tools Experience and Skills
Data and Process Modelling Interviewing
Functional and Non-functional Requirements
AnalysisRequirements Workshops
Vendor and Software Assessment
Metrics and Key Performance Indicators
Prototyping Acceptance and Evaluation Criteria Definition
April 10, 2023 14
Business Analysis Challenges
• Lack of advance planning for projects and initiatives• Lack of formal training for business analysts• Inconsistent approach to business analysis• Outsourcing and relying on external contractors to
perform major roles in system development • Impatience with the analysis/design/planning process • Gap between what business analysts are assigned to do
and what they should be assigned to do
April 10, 2023 15
What is a Project Failure?
• Over schedule• Over budget• Project cancelled• Solution ultimately not used and withdrawn• Does not deliver on business case• Does not deliver on business benefits• Does not deliver business value• Poor system usability and/or high error rates requiring
rework
April 10, 2023 16
Business Analysis Contribution to Project Failure
• Root cause analysis of many project failures− Poor focus on business needs that means the project is not what
the business needs and will therefore use− Poor requirements capture and definition− Poor strategic alignment that means the business case is not well
constructed− Poor solution design that means the solution does not deliver on
the specified requirements
• Business analysis failures are at the root of these failures• Well-executed business analysis fully integrated into the
project management process ensures projects deliver on the expected benefits
April 10, 2023 17
Maximising Solution Value Throughout Lifecycle
Good Analysis and Design
Poor or Inadequate Analysis and
Design
Good Solution Delivery
Poor Solution Delivery
Good Solution Delivery
Poor Solution Delivery
Good Analysis and Design Followed by
Poor Solution Delivery is Better
Than Poor or Inadequate
Analysis and Design Followed by Good Solution Delivery
Achievement of Business
Value
April 10, 2023 18
Maximising Solution Value Throughout Lifecycle
Solution Design
Solution Development
Solution Transition
Solution Operation
Achievement of Business
Value
Improved Business Analysis
Improved Solution Design
Improved Management of Transition
Improved Delivery of Business Needs
April 10, 2023 19
Maximising Solution Value Throughout Lifecycle
• Good solution and project definition delivers superior business value
• Poor solution and project definition results in lower business value, even if it is followed by good project management
• Good project management does not make a bad solution good
April 10, 2023 20
Solution Life Cycle Cost Composition
•Hardware•Software•Development and Implementation•Management•Installation•Transition and Cutover•Conversion
BASIC SYSTEM COST •Training•Documentation•Support Facilities•Parallel Running•Warranty
TOTAL SYSTEM COST •External Support and Maintenance•Subscription
PROCUREMENT COST•Planning, Research, Analysis and Design•Ongoing Test Facilities
SYSTEM ACQUISITION COST •Operations
•Internal Support•Disposal
LIFE CYCLE COST
April 10, 2023 21
Solution Life Cycle Costs
• Depending on the life of the solution being implemented, the operating costs can be 1-3 times the cost of acquisition
• Getting the solution design right at the start delivers very significant increased benefits throughout the solution’s life
System Acquisition Cost
COST
YEARS
Operating and Support Cost
Total Cost of Ownership
April 10, 2023 22
IT Investment Management and Project and Solution Lifecycle
Business Analysis
Solution Operation
Solution Architecture and
Design
Project Portfolio Management
Structured Capture and Management of Requirements and
Cost Benefit Analysis of Solution Costs
Design/Selection of Cost Effective
Solutions to Meet Requirements
Including Evaluation of All
Options
Prioritisation of Projects and Investment Decisions
Cost Effective Delivery of
Projects and Management of
Costs
Programme and Project
Management
Cost Effective Operation of
Delivered Solution and Effective Retirement/
Replacement/ Upgrade Decisions
Key Phase in Solution Delivery to
Drive Business
Value
April 10, 2023 23
Ensuring Strategic Project Alignment to Projects
Business Vision and Goal
Strategy
Business Plan
Programmes for Strategic Objectives
Projects
Operation of Solution
Programmes and projects cascade from business vision to ultimate operation and service
delivery
Programmes and projects need to be aligned to the
overarching business vision and goal
Business Analysis identifies the business needs and
document the requirements of the solution
Business Analysis we ensures that the right solution is designed
April 10, 2023 24
Hierarchy of Requirements – from Enterprise to Project/Initiative
Business Vision and Goal
Strategy
Business Plan
Programmes for Strategic Objectives
Systems and Solutions
Operation of Solution
Solutions delivered by programmes and projects
cascade from business vision to ultimate operation and
service delivery
Solutions delivered by programmes and projects need to be aligned to the
overarching business vision and goal
Requirements Hierarchy – from Business to Specific Initiatives
Delivery and Operation
April 10, 2023 25
From Strategy to Business Value to Business Benefits
Business Vision and Goal
Strategy
Business Plan
Programmes for Strategic Objectives
Systems and Solutions
Operation of Solution
Calculates
Calculates
Calculates
Defines Business Value Gains to the Organisation - Accumulated Net Business Benefits
Defines Organisational Targets
Defines Business Benefits Delivered and Contribute to the Delivery of Business Value
April 10, 2023 26
From Strategy to Business Value to Business Benefits
Strategy
Business Plan
Programmes for Strategic Objectives
Systems and Solutions
Calculates
Calculates
Calculates
Defines Business Value Gains to the Organisation - Accumulated Net Business Benefits
Defines Organisational Targets
Ensure Needs are Met and
Value Generated
Defines Business Benefits Delivered and Contribute to the Delivery of Business Value
Agree and Define Need and
Value to be Delivered
April 10, 2023 27
Complete Picture of Project Selection and Delivery
• Need to consider all aspects of project selection and delivery:−What the business wants (requirements)−What the business gets (solution that delivers on requirements)−Delivered according to business priority (project portfolio
management)− Implemented properly (project management)
• Cannot take an individual view without risking problems• Need to emphasise the importance of the solution whole
lifecycle and the interdependence of the roles
April 10, 2023 28
Business Analysis Through the Solution Lifecycle
• Need to do more than capture requirements initially• Requirements management needs to take place
throughout the delivery lifecycle to confirm business needs and being met and business value will result
• Requirements changes must be managed throughout the solution lifecycle
April 10, 2023 29
Business Analysis Approach to Business Requirements Collection and Management During Solution Delivery Lifecycle
Requirements Management
• Capture – Ensure that the new requirements or change requests are captured
• Assess – Evaluate whether the changes will be actioned and approve or reject
• Change – Undertake the changes
Requirements Definition
• Gather – Collecting requirements
• Analyse – Analysing, categorising and specifying requirements
• Review – Review and agree exactly what the requirements are
Gather Analyse Review
Assess
Capture
Change
April 10, 2023 30
Relative Cost of Fixing Errors During Project Lifecycle
• Errors/gaps/omissions become significantly more expensive to fix at later stages of project lifecycle
1
10
100
1000
Require
ments
Design
Developmen
t/ Im
plemen
tation
Syste
m Testing
User T
esting
Deployment
(Log
arit
hmic
Sca
le)
Low Cost Estimate High Cost Estimate
April 10, 2023 31
Business Analysis is a Key IT Competency
• Business analysis function manages the entire solution requirements lifecycle from understanding the business need to ensuring that the delivered solution meets business needs and adds business value
• Projects all too frequently experience difficulties not from lack of technical expertise but from an a failure to gather, understand, analyse and manage business requirements, and convert them into realistic achievable solution specifications
• Projects are all too frequently initiated and solution design and implementation started before there is a clear understanding of the business need
• High tolerance and acceptance of inadequate and ever-changing requirements leading to requirements and scope creep
April 10, 2023 32
Business Analysis is a Key IT Competency
• Business analysis focuses on adding value to the business− Business analysis provides−Detailed project objectives− Business needs analysis−Well defined and structured requirements− Requirements trade-off analysis and requirements feasibility and
risk analysis; and cost-benefit analysis• Without business analysis poor requirements definition
happens, resulting in a disconnect between what the business needs and what solution is delivered
• Effective business analysis is a combination of technical, analytical, business and leadership skills
April 10, 2023 33
Business Analysis Skills
• Identify and understand the business problem and the impact of the proposed solution on operations of the organisation
• Document project scope, objectives, added value and benefit expectations
• Translate business needs and objectives into system requirements• Design and develop high quality business solutions• Liaise with customers/stakeholders/users during installation and
testing of new systems and services• Evaluate business needs and contribute to strategic planning of
information systems and technology directions• Assist in determining the strategic direction of the organisation
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