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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
33
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
44
…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
55
Today’s Agenda
Business Analysis Maturity Model BA Practice Maturity BA Workforce Competency Business Analysis Center of Excellence
(BACOE)
66
Framework to Grow a Mature BA Practice
Source: Kathleen Hass
77
1. Business Analysis Maturity Model
88
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
1010
Business Analysis Maturity Model
Business Analysis maturity models systematically increase the level of maturity of the Business Analysis function within the organization
1111
Sample Maturity Model
Source: Journey to Business Analysis Maturity, by Angie Perris
1212
Another View
1313
Assess Present Situation
Monitor Progress
Journey to Business Analysis Maturity
Determine Maturity Goals
Standards Implementation
Plan
Establish Governance
Measures
Skills Development
Plan
Execute Plans
1414
ITImprovement
ProcessImprovement
BusinessImprovement
Scope
Maturity
The development of Business Analysis
1515
Key Techniques
ITImprovement
ProcessImprovement
BusinessImprovement
StrategyAnalysis
SystemsThinking
Value chainAnalysis
Process Modelling
RequirementsEngineering
SystemsModelling
1616
2. BA Practice Maturity
1717
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
Source: Kathleen Hass
1818
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
1919
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
Source: Kathleen Hass
2020
2121
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.
2323
2424
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
Source: Kathleen Hass
2525
Project Success vs. Maturity
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3. BA Workforce Competency
2727
…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.
Source: IAG Business Analysis Benchmark, 2008
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
Source: Kathleen Hass
3131
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
Source: Kathleen Hass
3232
Current project capabilities based on competency levelCurrent project complexity
Complexity of current work assignments appears to
exceed current capabilities
BACWM - Project Complexity vs. Competency
Source: Kathleen Hass
3333
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
Source: Kathleen Hass
3434
BA Workforce Demographics
Source: Kathleen Hass
3535
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
BA Workforce Demographics
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
Source: Kathleen Hass
3636
4. BACOE
Planting the Seeds to Grow a Mature BA Practice
3737
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
3838
Emerging BACoE
Source: Chapter 8 of ‘From Analyst to Leader’, K. Hass
3939
Emerging BACoE
Source: Chapter 8 of ‘From Analyst to Leader’, K. Hass
4040
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
Source: IAG Business Analysis Benchmark, 2008
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
4242
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
4343
BACoE Functions
Source: Chapter 8 of ‘From Analyst to Leader’, K. Hass
4444
Organizational Integration for CoEs
Source: Chapter 8 of ‘From Analyst to Leader’, K. Hass
4545
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
4646
BACoE Maturity Model
Source: Chapter 8 of ‘From Analyst to Leader’, K. Hass
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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.
Source: Chapter 8 of ‘From Analyst to Leader’, K. Hass
4848
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
Source: Chapter 8 of ‘From Analyst to Leader’, K. Hass
4949
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
Source: Chapter 8 of ‘From Analyst to Leader’, K. Hass
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
5151
BACOE Implementation Model (another view)
Source: Chapter 8 of ‘From Analyst to Leader’, K. Hass
5252
Compass BA Organizational Model developed by Management Concepts
Source: Chapter 8 of ‘From Analyst to Leader’, K. Hass
5353
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
5454
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
5555
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
5656
– 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
5757
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.
5858
Appendix
5959
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
Source: Kathleen Hass
6060
Professional Development Plan: Improving BA Competencies
Source: Kathleen Hass
6161
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
Source: Kathleen Hass
6262
Salary Survey Report – IT BA