Faculty Training Institute
The Value-Minded Business Analyst How professional Business Analysts
Generate Measurable Business Value
Steve Erlank MD Faculty Training Institute
President: SA Chapter of the IIBA®
@steveerlank @facultytraining #bbcconf2013
November 2013 Mandalay Bay Resort
Las Vegas
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Key learnings ! Understand what ‘business value’ really means using
simple ‘value targets’ techniques deliver immediate, measurable business value
! Explore and use the BA tools and techniques that are value-oriented and the approaches that are designed to unlock business value
! Understand how to make the value proposition: to show demonstrable and measurable business value
The Value-Minded Business Analyst Slide 2
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Core value concepts ! ‘Value’ to a stakeholder is that
! which helps a stakeholder achieve a goal ! Which generates more of what the stakeholder desires or needs
! Value is not necessarily monetary ! Different stakeholders perceive value differently
! What is ‘value’ to one stakeholder is not necessarily of value to another
! ‘Value’ can be conflicted ! Short term value vs long term value ! Cost reduction vs employment creation
! ‘Value’ is not always rational
The Value-Minded Business Analyst Slide 3
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Business Value Perspective ! Business Value should be described using
the vocabulary of business ! Cost reduction ! Ability to do something more quickly or easily ! Increased revenue ! Better customer service
! Business Goals and Project Objectives should be geared towards achieving Business Value
! Precision is very important ! “Reduce the holding costs of finished inventory by R25m p.a.” ! “Reduce average turnaround time for claims processing to 2
days”
The Value-Minded Business Analyst Slide 4
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When values differ… ! Different stakeholders
= different values = different goals = problems for a project
! HUGE gaps can emerge between SOLUTION-focused stakeholders and PROBLEM-oriented stakeholders
! The biggest problems will come from those stakeholders you ignored or haven’t discovered yet
The Value-Minded Business Analyst Slide 5
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Hierarchy of Business Needs
I want .
I need .
We want .
We need .
The business requires
What a user wants is not necessarily good for the business
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A wider Value Framework needed ! Who derives the value?
! Stakeholder analysis
! What is the value? ! Identifying Value Targets
! Why is this actually a value? ! Aligning value systems of different stakeholders
! How will it be realised? ! Value/benefit realisation, Metrics
! When will value be seen ! Time frame for value delivery, ROTI
! Where will value be felt ! Where in the enterprise will value be seen, Impact Analysis?
The Value-Minded Business Analyst Slide 7
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VALUE GENERATION
The Role of the BA
The Value-Minded Business Analyst Slide 8
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The role of the Business Analyst
“A business analyst works as a liaison among stakeholders in order to elicit, analyze, communicate and validate requirements for changes to business processes, policies and information systems.
(BABOK v2 2008)
Business value is primarily covered under Enterprise Analysis in the BABOK
The business analyst understands business problems and opportunities in the context of the requirements and recommends solutions that enable the organization to achieve its goals.”
The Value-Minded Business Analyst Slide 9
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Enterprise Analysis Knowledge Area ! “Enterprise Analysis describes the business analysis
activities that take place for organizations to: ! identify business problems to be solved and opportunities to
pursue to meet business needs and achieve strategic goals, ! determine the most feasible business solution option, ! define the solution scope and develop the business case for the
proposed new project to implement the business solution, ! continue to assess, refine and validate the business need and
solution during the project, ! evaluate the business benefits brought about by the deployed
solution.” (BABOK V2)
The Value-Minded Business Analyst Slide 10
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Does BA work automatically deliver value? ! What value do the following deliver?
! Producing a functional specification? ! Documenting a high level change request? ! Conducting an interview with a user? ! Producing a process model? ! Documenting a user story? ! Implementing a computer system?
! Just blindly carrying out the tasks of a BA does not necessarily add value ! But it is doing your job………………..
The Value-Minded Business Analyst Slide 11
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The Good Doctor and the Bad Doctor
DON’T STAY SOLUTION/TASK_FOCUSED. BECOME PROBLEM/GOAL-ORIENTED
The Value-Minded Business Analyst Slide 12
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Professional Business Analysts add value by making
the RIGHT CHOICES in WHAT they do and HOW
they do it
The Value-Minded Business Analyst Slide 13
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BA Scope of Value ! On the project (short term)
! Save time, waste and effort
! In the nature of the solution (medium) ! Solutions that meet expectations
and objectives (Value targets)
! In the organisation (long term) ! Contribute to Knowledge Base,
Enterprise Architecture, Organisational Learning
! In the Industry (Strategic) ! Contribute to Profession, Research
COMPETENCE
KNOWLEDGE
APPROACH
The Value-Minded Business Analyst Slide 14
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Value Approach No. 1 Conduct a full and proper Stakeholder Analysis
! Who, really, are the key stakeholders? ! What are their real goals, needs and desires? ! Are their goals aligned? ! If they achieve their Goals, will this add business value?
The Value-Minded Business Analyst Slide 15
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Value Approach No. 2 Clarify Objectives and Goals
! If they get what they ask for, will they really be happy? ! What is the value that will be delivered? ! Can we measure this value when we have delivered? ! Prioritise objectives in terms of value
The Value-Minded Business Analyst Slide 16
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Value Approach No. 3 Look for value in what you do and the way you do it
! Question and understand the purpose and of what you are doing, every time?
! Don’t reinvent the wheel! ! Always seek ways to make things reusable
The Value-Minded Business Analyst Slide 17
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Value Approach No. 4 Be Problem- and goal-oriented, not Solution-focused
! Proactive business-problem solving rather than reactive documentation or template filling
! Conduct a proper Problem Analysis ! Quantify the extent of problems if possible ! Prioritise the problems
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Value Approach No. 5 Insightful Requirements Elicitation is critical
! Ask questions that identify motive, intent, reasons ! Understand what they hope to achieve, not what they say they
want ! Identify what they have considered (and then offer options) ! Observation is as good as an interview ! Do you have the eye? Are you a good doctor?
The Value-Minded Business Analyst Slide 19
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Slide 20 The Value-Minded Business Analyst
BABOK contains many techniques
that are designed to add value……
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Fundamental Skills Need ! Probing and interviewing ! Facilitation ! Business Knowledge ! Systems Thinking ! Conflict resolution ! Problem-solving orientation
A lot of value is to be found in the quality of the questions that you ask
Tell me more about your requirements…
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BUSINESS VALUE TARGETS
Specifying Business Solutions that add Business Value
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Obvious targets that deliver business value
COSTS
ERRORS RISKS
CAPACITY INEFFICIENCY
TIME
COMPLAINTS
PROBLEMS
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THINKING IN TERMS OF BUSINESS VALUE
Slide 24 The Value-Minded Business Analyst
Business Problems
Costs/ Revenue
Efficiencies
Business Risk
Errors and mistakes
Information and decision making Capability
and capacity
“What are we trying to achieve”, not “what do you want to do”!
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The BA’s Value check:
COSTS
ERRORS RISKS
CAPACITY INEFFICIENCY
TIME
COMPLAINTS
PROBLEMS
Do your requirements documents and proposed solution aim at
BUSINESS VALUE TARGETS
The Value-Minded Business Analyst Slide 25
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The importance of quantification ! If you can’t quantify it, you can’t measure it. ! If you can’t measure it, you can’t improve it? ! So what can you quantify and measure?
! Reduced turnaround time? ! Reduction in an operating cost (e.g. rental)? ! Reduction in inventory?
! What about…? ! Increased ‘performance’? ! Improved ‘Employee morale’? ! Better ‘decision making’? ! Better ‘control over assets’? ! Improved ‘Customer service’?
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Turning Requirements into value ! Value sought: A more efficient claims process ! Define ‘more efficient’
! Quicker ‘average turnaround time’ ! Fewer people involved in the process ! Reduction in rework costs
! Quantify ! Average time from claim to resolution <2 days ! Maximum 2 claims clerks ! Reduction in disputes and appeals by 50%
! Turn into Money?
Requirement: A more efficient claims
process
Metric: Reduced turnaround time
Metric: Fewer people
Quantified Value: 1 day saved
1 staff position
The Value-Minded Business Analyst Slide 27
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So, how do I become a value-minded Business Analyst?
• Grow your business domain knowledge • Master the BA techniques that drive out value • Think about solutions in terms of the value targets they hit, not what they do • Change your approach (be a good doctor!) • Start measuring your value contribution
The Value-Minded Business Analyst Slide 28
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Is your Balance Sheet positive?
In the work that I did, and the way that I did it, what value did I add? Improved the efficiency of a business process (1 step removed)…..
2 man hours saved a week: R50000 p.a……
Created a reusable template that is now being used by others ….
Time saving: R20000. Risk reduction (specification errors) R100000??......
Ran a meeting of stakeholders to resolve conflicting objectives (instead of using email)…..…
Time saving: R3500. Reduction in project conflict : R?? Reduction in user resistance R???? Leading to shorter project times…..
Documented process model which was used to agree on new changes
Saved trainer 10 hours = R5000. Contribution to Business Architecture: R?? Reduced user queries on project by 50%......
Attended cocktail party with users after hours and identified 2 project problems and 1 new requirement (chatting informally…)
Requirements-related rework saved: 2 weeks of project time (R100000). Unblocked stalled sub-project: R???
Summarised business case into 1 page decision document and obtained user signoff immediately….
Saving sponsor time 8 Hours R3200, reduced project delays by one week (R25000),
The Value-Minded Business Analyst Slide 29
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Is your Balance Sheet negative?
In the work that I did, and the way that I did it, what did I do that did NOT add value?
Produced use cases which no-body read Wasted 5 hours: R2500
Got into argument with technical team to find person to blame for delays……
Increase in tension, problem not solved, increased lack of cooperation R50000
Omitted to follow up with stakeholder who did not attend initial meeting (and missed his requirements)
Project rework 2 weeks – R75000
Spent 2 days trying to organise next stakeholder meeting by email
Wasted hours R5000
Spent 3 days reformatting specification from MsWord old version:
Wasted hours R9000
The Value-Minded Business Analyst Slide 30
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Learn to see Value where others don’t
The Value-Minded Business Analyst Slide 31
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In summary ! Business analysts add value in what they do and how
they do it ! Leave a value legacy in what you do
! BA’s need to understand and identify requirements in business value terms ! Find the vocabulary and perspective
! Aim for the Value targets ! PROBLEMS, COSTS, EFFICIENCIES, RISKS, ERRORS,
INFORMATION DEFICIENCIES and CAPACITY ISSUES
Slide 32 The Value-Minded Business Analyst
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Steve Erlank Treasurer– IIBA® South Africa
CEO – Faculty Training Institute
[email protected] @steveerlank @facultyTraining
Thank you
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