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Professionalizing Business Professionalizing Business Analysis Analysis
Breaking the Cycle of Challenged Breaking the Cycle of Challenged ProjectsProjects
IIBA Greater Boston Chapter MeetingIIBA Greater Boston Chapter MeetingJanuary 2008January 2008
2
1. The Problem with Projects
2. Enter the IIBA• Exponential growth• The BA Body Of Knowledge• Certified BA Professional
3. Enter the Business Analyst• The BA Role: Past and Future• Managing Projects for Value
4. Emerge the BA CoE• Benefits• Implementation Considerations
5. Summary: Breaking the Cycle of Challenged Projects
AgendaAgenda
3
The Problem with ProjectsThe Problem with Projects
Too large
Too complex
Take too long
Almost always involve a significant IT component
Constant pressure to deliver – Faster– Better– Cheaper
Riddled with risk– Unproven technology– Outsourced, global teams– Enterprise-wide implementations
4
The Past – a Dismal RecordThe Past – a Dismal Record
Over Time or Budget: 53%
Failed: 18%
Succeeded:29%
71%
I.T. Projects in the United States, 2004 Survey *
* Source: The Standish Group, 2004 Third Quarter Research Report
5
The Present – Still TroublingThe Present – Still Troubling
Succeeded:35%
Failed: 19%
Over Time or Budget: 46%
65%
I.T. Projects in the United States, 2006 Survey *
* Source: The Standish Group, 2006 Chaos Report
Nearly ⅔ of all projects fail or run into trouble.
6
25%-40% of all spending on projects is wasted as a result of rework (Carnegie Mellon)
50% are rolled back out of production (Gartner)
40% of problems are found by end users (Gartner)
$80-145 billion per year is spent on failed and cancelled projects
Source: surveys by the The Standish Group International
The Cost of Failure
7
What Have We Learned About Project Failure?
Projects are too big and too complex
– Big projects fail more often Projects are not iterative
– Traditional PM has higher failure rates– Adaptive PM methods are emerging
Requirements are ambiguous
– 60%-80% of project failures attributed directly to requirements
Business involvement inadequate
Business alignment questionable
Business value not the focus
8
21st Century Projects
“I think the 21st century will be the century of complexity.”
Professor Stephen W. Hawking, PhD
Virtually all organizations of any size are investing in large-scale transformation of one kind or another
Contemporary projects are about adding value to the organization through:
– Breakthrough ideas– Optimizing business processes– Using information technology (IT) as a competitive advantage
9
Why so Much Complexity?
Initiatives are often spawned by:
– Mergers or acquisitions– New strategies– Global competition– Emergence of new technologies– The need to drive waste out of the business
Most changes accompanied by:
– Organizational restructuring– New partnerships– Cultural transformation– Downsizing or right-sizing– Enabling IT systems
Others implement new lines of business and new ways of doing business (e.g., e-business)
10
The Nature of Project Complexity
Complexity Dimensions
Project Profile for Business Transformation Projects
Independent Moderately Complex Highly Complex
Project Size< 3 months
< $250K
3 – 6 months
$250K – $750K
> 6 months
> $750K
Team Size 3 – 4 team members 5 – 10 team members > 10 team members
Team Composition
Team staffed internally; experienced leadership
Team staffed with some experienced internal and some external resources
Complex, interdependent team structure, e.g., contractor teams, virtual teams, culturally diverse teams, outsourced teams. Team have not worked together in the past.
Competing Demands
Schedule, budget and scope are flexible
Schedule, budget, scope can undergo minor variations, but deadlines are firm
Urgent need; Aggressive schedule; Deadline is fixed and cannot be changed; schedule, budget, scope, and quality have no flexibility
Problem / Solution Clarity
Easily understood problem and solution; solution is readily achievable using existing technologies; IT complexity low
Either the problem is difficult to understand, the solution is unclear or difficult to achieve, or the technology is new to the organization; moderate IT complexity
Both problem and solution are difficult to define or understand, the solution is difficult to achieve and likely to be using unproven, interdependent, complex technologies; IT highly complex
*Source: The Standish Group International
11
Project Complexity, continuedProject Complexity, continued
Complexity Dimensions
Project Profile for Business Transformation Projects
Independent Moderately Complex Highly Complex
Stability of Requirements
Requirements understood, straightforward, stable
Requirements understood, but are expected to change
Requirements are poorly understood, interrelated and largely undefined
Strategic Importance
Political Implications
Multiple Stakeholders
No political implications
Some direct mission impact, minor political implications, 2-3 stakeholder groups
Affects the core mission and has major political implications; is visible at highest levels of the organization, there are multiple stakeholder groups with conflicting expectations and interrelationships
Level of ChangeImpacts a single business unit; scope minimized
Impacts 2-3 business units, moderately large scope
Aggressive scope. Large-scale organizational change that has impacts across the enterprise; spans functional groups or agencies; shifts or transforms the organization
12
The New Project LeadersThe New Project Leadersare Strategy Executorsare Strategy Executors
In the past, PMs were primarily implementers of solutions
– Narrow orientation focused on technical implementations– Skills narrow focused on budget, schedule, specs
Role undergoing major transformation due to new business realities
– Effective project management tantamount to effective business management
– Skills broadened, encompassing all aspects of business management Business Analyst role professionalizing
Project leadership teams emerging
13
How Well Do We Execute Strategy?How Well Do We Execute Strategy?
Studies indicate that less than 10% of strategies successfully formulated are effectively executed
– 85% of executives spend less than one hour per month on strategy
– 95% of the workforce don’t understand their organization’s strategy
– 60% of organizations do not link strategies to the budget– 70% of organizations do not link strategies to incentives
Source: David Norton, Project Balanced Scorecards – a Tool for Alignment, Teamwork and Results.
ProjectWorld & The World Congress for Business Analysts Conference Proceedings, November 2005
14
How Does It Work?How Does It Work?
Strategic Goals
BusinessCase
BusinessCase
ProjectPerformance
ProjectPerformance
15
Enter The IIBA (www.theiiba.org)
16
Critical IIBA Information
Vision
– To be the world’s leading organization for business analysis professionals
Mission
– To develop standards for the practice of business analysis and for the certification of its practitioners
History
– Inaugural meeting October 2003– First Annual General Meeting, March 2004– Draft of version 1.4 of the BOK, October 2005, 1.6, July 2006– Version 2.0 available to the membership by February 2008
2003 2007
17
IIBA Body of KnowledgeIIBA Body of Knowledge
Requirements Planning & Management
RequirementsElicitation
SolutionAssessment
&Validation
RequirementsAnalysis &
Documentation
RequirementsCommunications
EnterpriseAnalysis
Fundamentals
Knowledge Areas
NOT a methodology and does not prescribe or favor a methodology
NOT a “how to do” manual; focuses on the “what” and offers generally accepted techniques for consideration
18
How Far We Have Come…
Worldwide Membership – 6500
Chapters – 80
Countries – 60
CBAPs – 200
BA World and World Congress of Business Analysis
20072003
19
Enter the Professional Business AnalystEnter the Professional Business Analyst
Those organizations that are first to acquire and master Business Analysis competencies, and elevate them to a leadership role, will
– React to and pre-empt changes in the marketplace– Align projects to business strategies– Flow value through the enterprise to the customer– Achieve competitive advantage
20
Typical Business AnalystTypical Business Analyst
40 years old
Well educated
Paid $78K per year
Hails from IT
More than 5 years experience performing BA functions
– 36% > 10 years
Analysis skills acquired on the job
Disturbingly, they report
– Most of their projects do not deliver all requirementsSource: The New Business Analyst: A Strategic Role in the Enterprise,
November 2006 Evans Data Corporation Research Study
21
Ambiguity in the BA RoleAmbiguity in the BA 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
Conclusion: there is a need for Business Analyst competency and career path definition
22
Business Analyst Career PathBusiness Analyst Career Path
Level Proficiency Responsibilities Competencies
Strategic Ability to perform strategic tasks with minimal direction
Strategic PlanningEnterprise AnalysisMentoring
Business & IT StrategyProgram and Portfolio Mgt.Systems Engineering, BPR, Six SigmaEnterprise ArchitectureBusiness Case Development
Senior Ability to perform complex tasks with minimal coaching
Elicit, Analyze, Specify, Validate, Manage Requirements
Business & IT DomainsProject & Program Mgt.Systems Engineering, BPR, Six SigmaRequirements Engineering
Intermediate Ability to perform simple-to-moderately complex tasks with minimal assistance
Elicit, Analyze, Specify, Validate, Manage Requirements
Business &/or IT DomainProject ManagementBPR, Six SigmaWorkshop FacilitationRequirements Modeling
Associate Ability to perform simple tasks with assistance
ScribeSimple modelsHelp Desk support
PM/BA PrinciplesBPR, Six Sigma PrinciplesBusiness Writing
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Associate Business Analyst
Business Analyst Senior Business Analyst
Business Consultant
Typical Deliverables
• Trouble ticket resolution
• Defect tracking • Requirements for
maintenance and enhancement
Requirements:• Planning • Elicitation• Analysis• Documentation• V&V
• Business Case• Client
Presentations• Client Proposals• Client Coaching• Mentoring
• Feasibility Studies
• New business opportunity analysis
• Business Case• Portfolio
analysis
Typical Scope of Responsibility
• Production Support
• Small maintenance projects
1-3 low-risk projects within a business unit
1 significant, high-risk project / program across the enterprise
• Strategic planning
• Pre-project business analysis
• Portfolio management
Minimum Experience
1 year 3 years 7 years 10 years
Certification Masters Certificate in BA
CBAP CertificationPMP Certification
Internal Certification
Professional Affiliation
PMI & IIBA member PMI & IIBA member PMI & IIBA member IIBA chapter committee
PMI & IIBA member IIBA PMI chapter officer
Alternative Business Analyst Career PathAlternative Business Analyst Career Path
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Technical Analytical Business Leadership
• Systems engineering concepts and principles
• Fundamentals of business analysis
• Business process improvement and reengineering
• Fundamentals of project management
• Complex modeling techniques
• Ability to conceptualize and think creatively
• Strategic and business planning
• Capacity to articulate vision
• Communication of technical concepts to non-technical audiences
• Techniques to plan, document, analyze, trace and manage requirements
• Communication of business concepts to technical audiences
• Organizational change management; management of power and politics
• Testing, verification, and validation
• Requirements risk assessment and management
• Business outcome thinking
• Problem solving, negotiation, and decision-making
• Technical writing • Administrative, analytical, and reporting skills
• Business writing • Team management, leadership, mentoring, and facilitation
• Rapid prototyping • Cost / benefit analysis • Business case development
• Authenticity, ethics, and integrity
• Technical domain knowledge
• Time management and personal organization
• Business domain knowledge
• Customer relationship management
Staffing Surveys Reveal Increasing Demand for Senior Staffing Surveys Reveal Increasing Demand for Senior BAs Who are Multi-SkilledBAs Who are Multi-Skilled
25
Business Analyst Organizational PlacementBusiness Analyst Organizational Placement
Level Organizational Placement
Strategic Part of an enterprise-wide PMO or center of excellence with a strategic focusWorking on pre-project analysis, serving as BA for strategic initiatives, and managing projects for value
Senior • In IT (67%)• The business may not take ownership of problems
• In BU (10.8%) • Difficult for BAs to feel like a “community of practice” and hard
to manage BA standards and improvements
Intermediate Usually placed in IT
Junior Usually placed in IT
26
BA Role - The PastBA Role - The Past
Elicitation AnalysisElicitation Specification Validation andDocumentation
Requirements PhaseRequirements Phase
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BA Role – The Future BA Role – The Future A Critical Role Throughout the Project Life CycleA Critical Role Throughout the Project Life Cycle
EnterpriseAnalysis
Strategic Planning Requirements Design
Construction Test DeliverOperations
andMaintenance
Deactivate
Study Period Implementation Period
Implementation Period (continued) Operations Period
28
Business Analyst Role - Business Analyst Role - Study PeriodStudy Period
The executive team cannot affect the transition to a strategy-focused organization alone
Information, process, tools and facilitation are provided by the Business Analyst to enable the organization to shift focus and activities to be strategy driven
Conduct analysis to inform the portfolio planning team
1. Create and maintain the business architecture
2. Conduct feasibility studies to determine optimal solution
3. Prepare the business case
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1. Planning Business Analysis activities
2. Requirements elicitation
3. Requirements analysis
4. Requirements specification
5. Requirements validation & verification
6. Requirements allocation and tracing
7. Requirements change management
8. Organizational change management
Business Analyst Role - Business Analyst Role - Implementation PeriodImplementation Period
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Business Analyst Role – Business Analyst Role – Managing the Business ValueManaging the Business Value
1. During the project life cycle
– Once projects are funded, they must be managed throughout the project life cycle to ensure that the business case remains valid and continued investment in the project is still warranted
2. After solution delivery
– Once the project delivers the new business solution, the Business Analyst ensures organizational measurements are in place:
– Actual benefits that are achieved vs. – Benefits promised in the business case
3. For solution enhancements
31
Business Solution ValueBusiness Solution Value
Cost to Develop, Operate and Retire the Solution
Business Value
Deployment
Value = Benefits – Costs to Develop, Operate and Retire
Project Costs
32
Where do Exceptional Business Analysts Come From?
As with any leadership role, competency comes from:
– Acquiring education and training– Seeking mentoring and coaching– Leveraging organizational support– Setting up communities of practice– Jumping in headfirst to learn the discipline
33
Emerge the BACoE
Those organizations that are first to acquire and master Business Analysis competencies, and elevate them to a leadership role, will:
– React to and pre-empt changes in the marketplace– Align projects to business strategies– Flow value through the enterprise to the customer– Achieve a competitive advantage
34
Benefits of CoEs
Deliver strategic projects more effectively– Accuracy of cost estimates improved 25%– Accuracy of schedule estimates improved 31%– Project stakeholder satisfaction improved 9%
Boosts productivity by ensuring priority projects get the most attention– Complete more projects on time and within budget with fewer
resources– Allocate majority of resources to highest priority projects– Saved more than $3 million by reducing the number of small
projects from 233 to 13– Deliver a return in three to six months
Source: Santosus, Megan. “Office Discipline: Why You Need a Project Management Office.” CIO Magazine, Jul. 1, 2003.
35
Increase in Value Over TimeIncrease in Value Over Time
The Longer You Have Them,The Better They Work
Source: “PMOs: The Longer You Have Them, The Better They Work,” CIO Magazine, Jul. 1, 2003. <http://www.cio.com/archive/070103/office_sidebar_2.html> (30 November 2004). CIO/PMI survey
36
CoE Implementation Considerations
1. Scope of disciplines: PM, BA, SE, IT, QA
2. Organizational alignment and positioning
3. Organizational maturity
4. Implementation approach
5. Focus on value
37
CoE Functions
CoE Functions
Professional Development
Services
Standards
- Practices and methodologies- Tools- Performance metrics- Knowledge management- Performance reporting- Continuous improvements
- Skill assessments- Education and training- Mentoring and OTJ training- Team building- Career Path: position descriptions, grades, competencies and skill requirements
- Competitive analysis- Business architecture- Feasibility studies- Business case- Project investment decision packageStaff augmentation:- BAs/PMs- Requirements analysts- V&V specialists- Workshop facilitators
Full Cycle Governance
- Business program analysis- Strategic project resources- Portfolio management process support and facilitation- Benefits management
38
CoE Maturity Model
Phase I
Project Centric
Phase 2
DepartmentFocus
Phase 3
Strategic Asset
Limited Influence Strategic Influence
39
BA CoE Implementation
Visioning & Concept Definition
Organizational and Individual Assessments
Implementation Planning Form BACoE Teams
Vision and missionExecutive sponsorGuidance (steering) teamBusiness casePolitical management strategyApproval to staff BACoE planning team
Organizational readiness assessmentMaturity assessmentIndividual business analysts knowledge and skill assessment
Kick-off WorkshopCharter:- Strategic alignment- Scope- Authority- Services- Organization- Budget
Standard Practices, Tools, MetricsEducation & TrainingConsulting Services
Implementation Steps
40
Demonstrate Value
CoEs must deliver value to survive
– Value is not templates, tools, methodology, processes, training; these are means to driving value
– 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 CoEs wrap their mission and existence around the services they provide instead of their impact on the business
Executives buy value
Source: http://www.chiefprojectofficer.com/article/146
41
Start Small – Transition to Complex Projects
• < 3 Mos. < $250K • 3-4 Team Members• One Business Unit• Clear Problem/Solution
Small Low Risk
Independent Project
MediumModerate Risk
• 3-6 Mos. $250K-$750K• 4-10 Team Members• Schedule Flexibility• Some Problem/Solution Ambiguity• Clear Requirements• > 1 Business Unit
ModeratelyComplex Project
• > 6 Mos. > $750K• > 10 Team Members• Firm Deadlines • Complex Team Structure• Unclear Problem/Solution• Undefined Requirements• Unproven Technology• Large-scale Organizational Change
LargeSignificant Risk
Highly Complex Project
Program
• Group of Related Projects of Varying Complexity
More Complex
Project Complexity ModelProject Complexity Model
42
OrganizationalFocus
Focus on BA MaturityFocus on BA MaturityCompassBACompassBATMTM Maturity Model Maturity Model
Project Centric
Ad Hoc
Strategic/Enterprise Focus
Continuous Improvement
InitialInitial1
IntegratedIntegrated3
StrategicStrategic4
OptimizedOptimized5
•Informal, inconsistent processes
•Unstable environment
•Most projects do not deliver all requirements
DocumentedDocumented2
Requirements:•Planning•Elicitation•Analysis•Specification•Prioritization•Validation•Change Mgmt.
Requirements:•Communication•Traceability•Risk Mgmt
Solution quality:•Allocation•Assessment•Verification & validation•Deployment strategy•Org. deployment readiness
Defined, integrated BA:•Standards & tools•Training program
•BA Center of Excellence•Business architecture•Feasibility studies•Business cases•Portfolio mgmt.•Resource mgmt.•Benefits mgmt.•Quantitative BA process mgmt.•Requirement defect tracking
Organizational BA practices: •Continuous BA process & tool improvement•Maturity assmt.•Requirement defect prevention
Individual BA practices:•Knowledge & skill assmt.•Professional development plans
43
Expect Challenges
PMs and BAs applaud their increased control
– But loathe the accountability Managers delight in the visibility into project progress
– But scoff at the added level of communication needed to get things done
Executives like the deliberate assignment of responsibilities
– But balk at the investment necessary to support a central resource
Source: Dr. Donn Di Nunno CCP, CDP, IT ‘Owes’ Much to PMOs.2005 Engineering, Management & Integration, Inc
44
Core project leadership team
Collaboration vs. control
Iterative, adaptive solution development
BA maturity
Interdisciplinary CoE
Complexity management
Project Benefits/value management
Breaking the Cycle of Challenged ProjectsBreaking the Cycle of Challenged Projects
45
An elevated role for the Business Analyst
A great team: core team leadership
– Business analyst– Project manager– Business visionary– System architect/lead developer
Each taking the lead depending on the project needs
Determined to break the cycle of challenged projects
Combining Disciplines Leads to Success
46
Traditional Project TeamTraditional Project Team
Business Team &
End-users
IT Architecture
TeamTest Team
Project Manager
Business Sponsor
BusinessAnalyst
Team Leads
Test Manager
Architect
BusinessVisionary
DevelopmentTeam
47
Core Project Leadership TeamCore Project Leadership Team
Business Team &
End-users
IT Architecture
Team
Test Team Project
Manager
Business Sponsor
BusinessAnalyst
Team Leads
Test Manager
Architect
BusinessVisionary
DevelopmentTeam
SMEs
48
Structure Projects to Reduce Risk and Complexity
Ingredients:Ingredients: Minimized scope, communications, software standards
Mix with:Mix with: Full-time core team - business analyst, project manager, business visionary, lead architect/developer, coached by an involved project sponsor
Bake:Bake: • No longer than six months
• No more than six people
• No more than $750,000
Follow the Recipe For Project Success
Source: The Standish Group International
49
For Further Information:
Kathleen B. (Kitty) Hass, PMPKathleen B. (Kitty) Hass, PMP
Project Management and Business AnalysisProject Management and Business Analysis
Practice LeaderPractice Leader
[email protected]@managementconcepts.com
Q and AQ and A
50
IT App Dev – CMMI / Agile / Iterations
IT Operations – ITSM/ITIL/COBIT
Time
Bre
ad
th
R
equi
rem
ents
Des
ign
Con
stru
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n
Test
Dep
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Ope
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Mai
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Mon
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Inci
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and
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Con
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Cos
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Cap
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Ava
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Ser
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BA/PM – BABOK / PMBOKBA/PM – BABOK / PMBOK
Combining Disciplines Leads to Success
51
IIBA DefinitionsIIBA Definitions
Business Analysis
– The set of tasks, knowledge, and techniques required to identify business needs and determine solutions to business problems
Business Analyst
– Identify the business needs and help determine solutions to business problems
– Responsible for requirements development and requirements management