Module 3 - Mature Business Analysis Practices v.2

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Leadership in Business Analysis

Module 3: Business Analysis Maturity

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Reading and Resources

Hass, Kathleen – From Analyst to Leader– Chapters 8, Establishing a BACOE.

Slides for this module are adapted from additional material, frameworks and white papers provided by Kathleen Hass

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Transition from Today’s BA…. IT Oriented Analysts:

– Improve operations through changes to technology

– Mostly generalists as opposed to

Information BAsProcess BAsRules Bas

Business Oriented Analysts– Improve operations

through changes to policy and process

– Mostly functionally focused:

FinanceHRManufacturing

Source: Carey Schawber and Rob Karel, The New BA, Forrester Research

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…to Tomorrow’s BA Business Architects

– Make the enterprise visible

– Keep the business and IT architecture in synch

– Make visible:Current State (as-is)Future State (to-be)Gap in capabilities

needed to achieve the future vision

The future BA– Convert business

opportunities into new business solutions

– Translate strategy into process and technology changes

– Cross-functional and cross-domain experts

Source: Carey Schawber and Rob Karel, The New BA, Forrester Research

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Today’s Agenda

Business Analysis Maturity Model BA Practice Maturity BA Workforce Competency Business Analysis Center of Excellence

(BACOE)

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Framework to Grow a Mature BA Practice

Source: Kathleen Hass

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1. Business Analysis Maturity Model

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Ambiguity in the Business Analysis Role

Business Analysis 29.3%Project Management 18.7%Developer, Engineer, Development Lead 15.4%

Subject Matter Expert, Domain Expert 13.5%

Tester, Test Lead 10.1%Other 13.0%

Source: The New Business Analyst: A Strategic Role in the Enterprise, November 2006 Evans Data Corporation Research Study

There is a need for Business Analyst competency and career There is a need for Business Analyst competency and career path definition path definition

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Real Problem Lack of understanding of the role of the Business

Analyst No Career path Issues regarding standards Too many nice to haves Design orientation of analysis

Low levels of maturity in the Business Analysis FunctionLow levels of maturity in the Business Analysis Function

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Business Analysis Maturity Model

Business Analysis maturity models systematically increase the level of maturity of the Business Analysis function within the organization

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Sample Maturity Model

Source: Journey to Business Analysis Maturity, by Angie Perris

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Another View

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Assess Present Situation

Monitor Progress

Journey to Business Analysis Maturity

Determine Maturity Goals

Standards Implementation

Plan

Establish Governance

Measures

Skills Development

Plan

Execute Plans

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ITImprovement

ProcessImprovement

BusinessImprovement

Scope

Maturity

The development of Business Analysis

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Key Techniques

ITImprovement

ProcessImprovement

BusinessImprovement

StrategyAnalysis

SystemsThinking

Value chainAnalysis

Process Modelling

RequirementsEngineering

SystemsModelling

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2. BA Practice Maturity

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To Meet Strategic Business Needs Strategic business flexibility Enterprise initiatives Service-oriented Architecture

(SOA) Business enablement Dynamic Business Applications

that are Designed for people Built for change

Driving BA Practice Maturity


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Current State– >50% of organizations do not

have basic pieces in place to be successful at business and software requirements

– 70% of organizations do not have the fundamental BA competencies for business requirements elicitation to consistently bring in projects on time and on budget

Future State– Companies can achieve

success rates in excess of 80% on a consistent basis with a focus on the combined aspects of business requirements:

– People– Process– Enabling tools

Source: IAG Business Analysis Benchmark, 2008

BA Practice Maturity

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Solid Foundation

Supportive Environment Competency Business

Focus

Standards & Tools BACOE Capable BA

WorkforceEnterprise Analysis

Metrics & Measurements BA Governance

BA Role Definition & Career Path

Leading to VP BA

Customer Relationships

Continuous Improvement

Periodic Maturity Assessments

Mentoring Program

Business Benefit

Management

KnowledgeManagement

Mature Practices Robust Training Programs

Competitive / Feasibility

Studies

The Daunting Road Ahead


2020

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Companies that have made pervasive change to their BA people and processesBA people and processes: – Over 70% have successful projects– 54% are on time, on budget and on function– Spend about 50% less for their applications

Source: BA Benchmark Study, 2008 based on 110 Companies, projects >$250K, Involving significant change to process and technology

The Pay-off for Doing Competent Business Analysis

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0.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

4.0

0 1 2 3 4

Project Complexity

Project Type

BA Practice and Workforce Maturity

Project Complexity by Project Type

BA Practice Maturity

BA Workforce Maturity

Average Complexity by Project Type

N = 50 Assignment, BA Practice and Workforce Correlation: r = .587 p < .01

Projects of higher complexity require more mature BA practices and skills.

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Goal Activities 1. BA Practice Organizational Model

Finalize the model to ensure Business Analysis has the right “fit” with other business management practices

2. BA Center of Excellence Model

Finalize BACOE model (authority, functions, measures of success, integration with the PMO) to assign accountability and responsibility for the BA Practice

3. BA Workforce Competency Evaluation

Evaluate BAs to identify skill gaps and baseline BA workforce competency; this will also inform the BA role/career path and professional development

4. BA Role, Title, and Career Path

Finalize BA job descriptions, titles, career progression ensuring alignment with industry to professionalize the BA role in your organization

5. BA Professional Development Program

Launch BA development program including training, mentoring, and organizational support to bring the BA workforce competency to the level needed to be successful on 2010 projects

6. BA Standard Methods and Tools

Develop, pilot, implement BA standards to close the gap in level 2 practices; accompany implementation with training and mentoring

7. Change Management Program

Execute a formal change management campaign to manage the changes and to ensure BA Practices are embraced by all project stakeholders

8. Business/Technology Forums

Conduct forums to help build consensus on the professional BA role and support for BA activities

BA Practice Maturity – Action Plan


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Project Success vs. Maturity

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3. BA Workforce Competency

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…the “average” business analyst team will fail to get successful results in over 60% over 60% of projects where a

significant change to the existing approach to doing business is needed.


Simply put, a project manager increases their chance of getting an “unqualified success” by by

over 400% over 400% by using elite analysts with specific competencies at the start of requirements

discovery.”

Superior Skills Needed

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Every Successful Business Analyst has an Edge

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What is needed to build Mature BA Capabilities?

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Chart the Course: Enterprise Analysis

Business architectureOpportunity analysisProblem analysisSolution feasibility analysisBusiness case developmentSolution assessment and validation

Stay the Course: Requirements Management

PlanningElicitation DefinitionAnalysisSpecificationValidationChange managementCommunication

The Finish Line and Beyond: Organizational Change

Organizational readiness Organizational change managementBusiness artifacts: business policies, procedures, rules, training, retooling, restructuringBenefits measurement and management

Goal: Mature BA Capabilities


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New Business Strategy Forged

Enterprise FocusOperations/SupportFocus Project Focus Competitive Focus

Business Operations Enhanced

Business Objectives Met

PROJECTSLow complexity projects that continually enhance

business process, product, and/or

technology

OUTCOMESValue of operational business process &

systems is continually enhanced

TYPE OF LEADERGeneralists,

Business/System Specialists, Product

ManagersEntry Level Through

Consultant

PROJECTSModerately complex

new development projects that improve

business process, product, and/or

technology

OUTCOMESBusiness requirements are managed to ensure

new solutions meet business objectives

TYPE OF LEADERBusiness Domain

Experts, IT System Experts

Entry Level Through Consultant

PROJECTS Highly complex programs

and portfolios that improve multiple

business processes and/or technologies

OUTCOMESThe enterprise is investing

in the most valuable initiatives and is realizing

the business benefits forecasted in the Business

Case

TYPE OF LEADEREnterprise Change Experts, Business

Architects Mid Level Through

Consultant

PROJECTSInnovation projects that

improve competitive advantage and translate

strategy into breakthrough process and technology

OUTCOMESNew strategy formulated.

Business/Technology optimized. Continued or

better competitive position.

TYPE OF LEADERBusiness/Technology Analysts, Innovation,

Cultural Change, Cross-Domain, Strategy ExpertsEnterprise Level Through

Consultant

Business Strategy Executed

Continuous Advancement of Competence, Credibility, and Influence

BA Workforce Competency ModelBA Workforce Competency Model


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Current project capabilities based on competency levelCurrent project complexity

Complexity of current work assignments appears to

exceed current capabilities

BACWM - Project Complexity vs. Competency


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40%

20%

20%

20%

Years of BA Experience

Less than 3 years

3-5 years

5-8 years

Greater than 8 years

4%

62%10%

24%

Acquisition of BA Skills

Self-Educated

On-the-Job

Formal Education

Other

25%

15%60%

BA Certification

CBAP

Other Industry Certification

No Certification

BA Workforce Demographics


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0 1 2 3 4 5 6 7 8

1

2

3

4

5

6

Paarticipant Count

# of Projects

# of Concurrent Projects

28%

41%

31%

Project Types

Low to Moderately Complex, Enhancement or Improvement

Moderately Complex, New Development

Highly Complex, High-Risk Program or Portfolio


0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15

0

1-2

3-4

5-6

7-8

>8

Count

# of Work Requests

# of Core Work Requests


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4. BACOE

Planting the Seeds to Grow a Mature BA Practice

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Emerging BACoE CoE are emerging as a vital strategic asset to serve as the

primary vehicle for managing complex change initiatives, a business support function just as critical as accounting, marketing, finance and HR

“A center of excellence,” as defined by Jonathan Geiger, “is a team of people that is established to promote collaboration and the application of best practices.”

The concept of centers of excellence (CoE) is quickly maturing in twenty-first century organizations because of the need to collaboratively determine solutions to complex business issues

Source: Chapter 8 of ‘From Analyst to Leader’, K. Hass

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Emerging BACoE


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Emerging BACoE


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The idea of a center of excellence center of excellence for business requirements (which is jointly owned by the business and IT) is gaining momentum particularly for larger companies with a need to deal with complex projects.

In the absence of this structure it is harder to manage the requisite In the absence of this structure it is harder to manage the requisite competency base of the corporation, and optimize the use of elite competency base of the corporation, and optimize the use of elite analysts across the enterpriseanalysts across the enterprise

Only when both structure and high levels of competency are brought together are superior resource efficiency and superior success rates achieved


Benefits - Superior Success Rates

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Other Benefits

Decreased risk on our projects Increase value for our given projects Improved quality of deliverables Improved time to deliver goods and services Provides a centralized point of expertise Integrates process and practices

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The mission– Clear, compelling mission: to deliver business

value– Delivered often, the right message to the right

people The right people

– Respected, influential– Viewed as leaders

The strategic alignment– Support the right project mix linked to

strategy/mission– Facilitate the senior team to manage the

project portfolio The value

– Link improved performance to executive goals

Value+ Alignment

+ Communication = Success

Goal: Build a BACOE to last

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BACoE Functions


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Organizational Integration for CoEs


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Technology Used as a Competitive Advantage

BusinessAlignment

BA Awareness

BAFramework

Business / Technology Optimization

1

2

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BA Value Acknowledged

Business Requirements Managed

•BA Practices Informal•BA Community of Practice Exists•Increasing awareness of the value of BA

Centralized Management of:Customer InvolvementProject MetricsProject Change Mgt.BABOK® Standards:• BA Planning/Monitoring• Elicitation• Requirements

Mgt./Communication• Requirements AnalysisBA Framework TrainingBA Career Track•IT Oriented Analysts•Business Oriented Analysts

Centralized Management of:

Customer SatisfactionBusiness Architecture Organizational Change Mgt.Benefits ManagementBABOK® Standards:•Enterprise Analysis•Solution Assessment & ValidationBusiness Case Dev., Portfolio Mgt., BPM, BDM, Resources, ContractorsBusiness Alignment TrainingBA Career Path to VP of BAs •Business Architects•Enterprise Analysts

Centralized Management of:Customer Relationship Mgt.Opportunities converted into Innovative Business SolutionsStrategy translated into Breakthrough Process & TechnologyCultural Change Mgt.Strategy Development Stds:•Visioning &Strategic Planning•Innovation & R&DCOE: Management of Innovation and R&DInnovation TrainingBA Career Path Leading to Strategic BAs•Business/Technology Analysts

Business Needs Met / Strategy Executed

Continuous Improvement of BA Capabilities

BA Maturity ModelBA Maturity Model

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BACoE Maturity Model


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Project Centric BACoEs are almost always project-centric in their early

formative phase. The goals of the BACoE at this stage are to build the

confidence of and become an indispensable resource to the project teams.

During this early phase, the BACoE is building trusting relationships with business analysts, project managers, functional mangers, and project teams.

In addition to developing business analysis practice standards, the BACoE is providing services to the project teams, and training and mentoring to develop business analysts and high-performing project teams.


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Enterprise Focused As the BACoE begins to win confidence across the

organization, it is likely that it will evolve into an enterprise-wide resource serving the entire company.

At this point, the BACoE begins to facilitate the implementation of an effective portfolio management system.

The BACoE is building the foundation to serve as a strategic business asset providing management with decision support information


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Strategic Focused During the third stage of development, the BACoE is

considered a strategic asset serving the executive team. At this point, it is well understood that business analysis has a

positive effect on profitability and that organizations achieve strategic goals through well prioritized and executed projects.

Emphasis at this stage is placed on achieving professionalism in business analysis through the BACoE. Strategic activities for the BACoE include:– Conducting research and providing the executive team with

accurate competitive information– Identifying and recommending viable new business opportunities– Preparing the project investment decision package to facilitate

project selection and prioritization– Managing expected business benefits during project execution and

measuring actual business benefits after the new solution is deployed


5050Adapted from: Business Analysis Center of Excellence, The Cornerstone of Business Transformation by Kathleen Hass, with Richard Avery, Terry Longo, Alice Zavala, © 2007 Management Concepts, Inc.

BACOE Implementation Model

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BACOE Implementation Model (another view)


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Compass BA Organizational Model developed by Management Concepts


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Program Department Enterprise

Phase 1 Phase 2 Phase 3

Functional Project-DrivenOrganization Organization

COELaunch

StrategicCOE

Time

Increases Responsibility

Gains Credibility, Acquires Expertise, Builds Trust, Expands Influence

Typical BACOE Evolution

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Value is not templates, tools, methodology, processes, training Value is gaining efficiencies, achieving cost savings, increasing

customer satisfaction, reducing time-to-market, increasing revenue and profit, reducing deficits, or increasing competitive advantage

Too many centers wrap their mission and existence around the services they provide instead of their impact on the business

Executives buy value– Project benefits– Time to market improvements – Project time and cost savings– Project portfolio value

Must Demonstrate Value

Source: http://www.chiefprojectofficer.com/article/146

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Lessons Learned about COEs Prevalent since the mid 1990s

– Yet most have been in existence for two years or less– Only 50% are seen as relevant and adding value – Most have trouble finding the right “fit”

Closure and restructuring happens frequently– Short time to demonstrate value before being closed or

restructured – Implementation takes six months to two years – Many closed or restructured before full implementation

Source: Hobbs, PMI PMO Research Report , 2007

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– Not seen as a strategic asset– Did not define and demonstrate value– Not perceived as impacting project

execution and delivery– Seen as a threat – too authoritative– Positioned too low in the organization– Did not have buy-in from senior

management– Seen as a cost– Trying to control every project

Source: Gerald I. Kendall and Steven C. Rollins, Advanced Project Portfolio Management and the PMO J. Ross Publishing, 2003.

Why so Many CoEs Fail

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Group Discussion – Setting up a BACOE

You have been recently appointed as the Chief Business Analyst reporting to the CEO of the company. This is a brand new role that was created to manage the challenges in the current environment and to bridge the gap of the emerging Business Analyst. The organization has finally started seeing the strategic importance of the BA role and appreciating the need for a CBA.

Your CEO has asked you to present a 90 day plan to the Board of Directors. What is your strategic plan of action? Please work in your groups to prepare the 90 day plan and present to the class i.e. Board of Directors! Ensure your plan is detailed with strategic and tactical action items and it has a level of detail that meets the need of Board of Directors.

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Appendix

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This Business Analyst’s

requirements elicitation skills

are slightly lower than required for

the types of project they are

working on.

Opportunities for improvement are

found in 2 critical areas: Preparing for Elicitation and Documenting

Elicitation Results

BACWM – Individual BA reportBACWM – Individual BA report


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Professional Development Plan: Improving BA Competencies


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For both areas, the Senior BA group has the

highest competency level.

For both areas, the competency

level of the Enterprise BA group is lower

than required for the types of

project they are working on.

The shaded gray areas indicate the required competency level for each BA Group based on the model.

Overall BA Workforce ReportOverall BA Workforce Report


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Salary Survey Report – IT BA

Module 3 - Mature Business Analysis Practices v.2

Documents

ba workforce competency

ba practice maturity

business analysis maturity

bacoe implementation model

ba practice

business analysis

business requirements

ba role