The Strategic Business Analyst: Aligning Projects with Organizational Goals

2

Motivation Projects are expected to address a business need and

help an organization attain its goals. Business Analysts are expected to ensure that a project

fits into the business context. Business Analysts must know how to carry out Enterprise

Analysis:– Conduct root cause analysis to determine business needs.– Identify goals and define objectives.– Identify capability gaps using Business Architectures.– Justify projects through feasibility analysis.– Establish the business case for a project.

3

BUSINESS ANALYSISBusiness analysis is “the discipline of identifying business needs and determining solutions to business problems. Solutions often include a systems development component, but may also consist of process improvement, organizational change or strategic planning and policy development. The person who carries out this task is called a business analyst or BA.”

4

BUSINESS ANALYST“A Business Analyst (BA) analyzes the organization and design of businesses, government departments, and non-profit organizations; BAs also assess business models and their integration with technology.”

5

Business Analysis Body of KnowledgeThe Business Analysis Body of Knowledge™ (BABOK® for short) is a guide to the different knowledge areas and associated activities and techniques that a practicing business analyst should master.

6

Enterprise Analysis Knowledge Area

Adapted from the BABOK® Guide, Version 2.0 Figure 1-2. Enterprise Analysis

7

Defining the Business Need In its strategic planning, the organization, with the help of the business analyst, must consider: What does the organization want or need? Has the customer focus changed? Does the organization need to change? Do business processes need to be revised?

8

What is the Desired Outcome? Improvements in revenue Slowing the degradation of an existing business line Improved customer or employee satisfaction Compliance with regulations Improved safety Efficiency or cost savings

9

Goals & Objectives Organizations have goals and projects have objectives

that support these goals. Objectives, to be effective, must be SMART.

10

Converting Goals into Objectives Goals – Broad terms Objectives – Clear and concise, actionable Objectives should be SMART

Specific, significant, stretching

Measurable, meaningful and motivational

Achievable, agreed upon, attainable, acceptable, action-oriented

Relevant, realistic, reasonable

Time based, tangible and track-able

11

Strategic Planning

$$$

Investment Portfolio

Mission/Vision

Strategic Goals

Objectives

Programs/Projects

12

Business Analyst Responsibilities The business analyst must ensure that the desired

outcomes resolve the problem or exploit an opportunity. The desired outcomes must be aligned with the

business goals and objectives. The business analyst must define metrics that

demonstrate achievement of the desired outcomes.

13

DEFINITION: STAKEHOLDERA stakeholder is any person, group, team, or internal or external organization that is affected by the initiative, has influence over it, or is involved in constructing, deploying, or managing the solution.

14

Analysis Dimensions

• Position within the organization

• Role and responsibilities on the project

• Needs, expectations, and requirements

• Success criteria that they will use to judge the outcome of the initiative

• Communication needs

• Influence on the project, solution, or initiative

• Attitude towards the initiative

• Impact of the initiative on their role and responsibilities

• Interest in the project, solution, or initiative

Stakeholders should be evaluated along a number of dimensions:

15

Evaluating Stakeholders Stakeholders should be continually assessed along four

dimensions using the AI3 Method: – Attitude toward the project or initiative– Influence over the project or initiative– Impact from the project or initiative– Interest in the project or initiative

16

Other Assessments: Acceptance & Risk Acceptance Criteria

– For each stakeholder, the business analyst must understand how he or she will judge the success or failure of the project and what the specific acceptance criteria are.

Risk Assessment– Any events or conditions that may endanger the success of the

project must be documented as risks. – Each risk must be evaluated by determining its likelihood of

occurrence, its estimated impact on the project, and the cost to mitigate or remove the risk.

17

Stakeholder Matrix

18

Root Cause Analysis TechniquesProblems may have multiple causes.Techniques to determine the root causes include: 5-Whys Technique Modified Root-Cause Analysis Fishbone DiagramsThese techniques are commonly applied in collaborative brainstorming sessions.

19

5-Whys Technique The 5-Whys Technique is a drill-down approach in which

the analyst seeks to uncover the causes underlying a problem.

20

5-Whys ExampleAt Springfield Airport the cost of security has increased by 20% in the past year.

1st Why: Why is it increasing?We are hiring more personnel.

2nd Why: Why are we hiring?Due to overwork.

3rd Why: Why are they overworked?There are a lot of security checks that require substantial manual work.

21

Fishbone Diagram

Figure 2–2. Fishbone Diagram - Springfield Airport

22

Problem StatementThe problem of Excessive wait times (In 58% of all customer service

calls, customers wait more than 6 minutes for service.)

Affects The loyalty of customers

The impact of which is

Customers are hanging up and calling other vendors

A successful solution would

Reduce wait times to under 2 minutes for 99% of all customer service calls

23

Three Steps to Gap Analysis1. Determine the current capabilities of the enterprise.2. Determine what new capabilities are required by the

enterprise to meet the business needs.3. Identify the gap between the two.

24

DEFINITION

“A description of an organization's business processes, IT software, and hardware, people, operations, and projects and the relationships between them.”

BABOK® Guide, Version 2.0

ENTERPRISE ARCHITECTURE

25

Initial Development Often, an enterprise architecture is created for one

project. If it is perceived to have value, it may become a

permanent organizational asset.

26

SWOT AnalysisStrengths, Weaknesses, Opportunities and Threats Helps frame possible solutionsProvides a subjective assessment of an organization’s current state

27

SWOT MatrixStrengths

(Internal Advantages)• What are our core competencies?

Weaknesses(Internal Disadvantages)

• What has caused us problems in the past?

• What areas are outside our core competencies?

Opportunities(External Advantages)

• What advantages do we have over our competition?

• What market needs can we fill?

Threats(External Disadvantages)

• What competition do we face?• What potential market downturns

are possible?• What challenges could we face

from legal or regulatory changes?

28

DEFINITION

“An evaluation of proposed alternatives to determine if they are technically possible within the constraints of the organization and whether they will deliver the desired benefits to the organization.”

BABOK® Guide, Version 2.0

FEASIBILITY STUDY

29

DEFINITION

“The set of capabilities a solution must deliver in order to meet the business need.”

BABOK® Guide, Version 2.0

SOLUTION SCOPE

30

Solution Scope Includes:The scope of analysis (the organizational unit or process for which requirements are being developed)Capabilities supported by solution components, such as business processes, organizational units, and software applicationsCapabilities to be supported by individual releases or iterationsEnabling capabilities

31

Video surveillance imagesNotification of suspicious events

Authorized person

Enrollment dataRequest for admittance

ID cardPermission to enter

Unauthorized person

Denial of permission

Security Officer

Request to replay or analyze video events

Security Administrator

New enrollment requests

Approval of new enrollments

Restricted Area

Access Control System

Scope Modeling-Context Diagram

Request for admittance

32

System Use Case Diagram - Springfield Airport

Restricted Area Access Control System

Authorized person

Security officer

Gain admittance torestricted area

Enroll in system

Trigger alarm

Unauthorized person

Security administrator

33

Types of Feasibility AnalysisTechnical feasibilityOperational feasibility (includes analysis of proposed schedule)Economic feasibility

34

DEFINITION

“The business case describes the justification for the project in terms of the value to be added to the business as a result of the deployed solution, as compared to the cost to develop and operate the solution.”

BABOK® Guide, Version 2.0

BUSINESS CASE

35

Components of the Business Case1. Executive Summary2. Business Need/Opportunity3. Project Description4. Benefits (how aligned with strategic goals)5. Costs (and resources needed)6. Assumptions and Constraints7. Risks8. Cost Benefit Analysis9. Solution Assessment (how impact will be measured)

36

DEFINITION

“An uncertain event or condition that, if it occurs, will affect the goals or objectives of a proposed solution.”

BABOK® Guide, Version 2.0

RISK

37

Risk Risk not the same as an issue If you know about a risk, you can:

– Take action to avoid or reduce likelihood– Soften its impact

38

Conducting a Risk AssessmentEvaluating each risk to determine likelihood that it will occur, and impact if it does occurApproaches: Experts Review past projects Group-consensus-reaching methods