the value of business analysis: bacoe and ba maturity model and implementation

The Value of Business Analysis in the

organizations: BACOE and Maturity

ModelIIBA Italy Chapter President

Enterprise Hotel, Corso Sempione, 91-93, Milano

© International Institute of Business Analysis

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Why Business Analyst Professionals?

“Employment of management analysts is projected to grow 19% from 2012 to 2022, faster than the average for all occupations”

• Demand for the services of these workers will grow as organizations continue to seek ways to improve efficiency and control costs . (IIBA®)

“Many enlightened CIOs are placing their bets on implementation of a world class Business Analysis Practice ”

• to finally predict, produce, deliver, and measure expected business benefits .” (Gartner Group, Northwestern University, and Diamond Cluster International survey )


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Why Business Analysis?

Why does a CIO care about Business Analysis ? (Insight from the Gartner Group, Northwestern University, and Diamond Cluster International survey of 130 senior IT executives)

• 51% Percentage of CIOs with no process to evaluate IT investment against business strategy

• 68% Percentage of CIOs who don’t compare actual IT project benefits to original targets

• 74% Percentage of CIOs who don’t track financial metrics after making an investment

• 80% Percentage of CIOs who say lack of financial skills makes quantifying IT benefits difficult

This revealing study, together with the fact that only 37% of IT projects are successful, costing the economy billions of dollars, make for a very challenging situation for CIOs – FOCUS should be on Business Value and not on Technology.


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Why Business Analysis &

BA Professionals?

More and more organizations are recognizing the value of the Business Analyst in the success of their projects.

• 60% to 80% of failed software projects are traced to poor requirements . (CIO Magazine)

• Only 10% to 30% of companies successfully implement their strategic plans . (Wharton School, University of Pennsylvania)

• Data indicate that 60% to 80% of the cost of software development is in rework . (Carnegie Mellon Software Engineering Institute)

The Business Analyst, working on the business value , helps organizations avoid such costly issues .


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Business Analysts and Project Managers

The BA collaborates with the PM to conduct trade-off analysis and make the tough project decisions.

• “It has been estimated that the probability of project success increases 400% with an exceptional BA on the projec t.” (BA Benchmark Study, AG Consulting 2008)

“Dynamic Duo – Project Managers & Business Analysts allows to achieve the business value, reducing efforts, costs, increasing quality and stakeholders satisfaction.” (PM& BA IIBA® – PMI®-NIC – February 2014 & Michele Maritato, Prassede Colombo Seminaries – 2008 - today – The Dynamic Duo® - PMProgetti®)


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Business Analysts - Implementation SME

- Business Managers

Assuming that the Business Analysts liaison with the Business Managers , they will be invaluable in leading technologists in allocating requirements to maximize the business value.

• “An experienced BA assigned throughout the project will ensure organizations develop an innovative solution, and predict, produce, deliver, and measure expected business benefits .”


(Ante, During, Post, Project of The Dynamic Duo® Approach - PMProgetti®)

Innovation, Value and Portfolio Focus


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Organizations need mechanism to drastically change their core business and project performance focus from exclusively time/scope/budget to innovation and value .

To do so Business Analysts will ensure the project portfolio’s are contributing to the competitive position in the marketplace for the company. To do so Organizations need new capabilities .

Business Analysis changes the operations and projects focus from Technology, Products to the Business Value . It’s about the business value brought about new R&D, IT, Marketing, .. Solutions, not about the Technology.

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Decision Velocity

There is a need to improve the organization’s decision velocity .

• Determining the most valuable candidate projects, requires some degree of analysis and planning. These analysis and planning activities occur within the enterprise analysis phase of the business solution life cycle , culminating in a decision to invest in the new initiative, defer investment, or reject the proposed initiative altogether.

It means that organizations need the capabilities – Enterprise Analysis -for building brilliant Business Cases focused on the real business needs and the right solutions and for evaluating the needed changes (Ante, During, Post Projects Model of The The Dynamic Duo® Approach - PMProgetti®)


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BA Capabilities and Results

Higher BA maturity levels are directly correlated to more effective business alignment of operations and projects , higher qualitybusiness solutions, increased customer satisfaction , increased creativity and innovation , and an increase in the business benefitsthat result from implementation of new business solutions.


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Opportunities for Organizations & BA

• Enterprise Business Analyst• Business Process Analyst• Big Data / Decision Analyst

• Define Strategy• Align to Strategy• Inform Strategy

ENTERPRISE

FUNCTION

• Enterprise Business Analyst• Business Process Analyst• Business Analyst• Decision Support Analyst• Agile Analyst• Systems / Functional Analyst

• Define Change• Deliver Change• Support Change

PRJ/OPS• Support

Project/Operations

• Business Analyst• Service Analyst


Source: BAWI2013 The future of the Business Analyst: from Competencies to Value for the organization - Michele Maritato, IIBA®

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BACOE

Organizations face many challenges in filling their business analysis positions

• finding the right people• getting them on the right projects/tasks• ensuring that they do the work as effectively as possible• and that it adds value to the organization

Business Analysis Center of Excellence (BACOE) is the emerging best practice in order to assess BA capabilities, identify the GAP and identify the right model for the organization.


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What is a BACOE?

It’s a new type of Center which serves as the single point of contact for business analysis practices

The type of Center that is most appropriate for your organization depends heavily on the culture, power and politics that exist within your organization

• Mission - Understanding the business drivers behind establishing the BACOE• Sizing of the organization and the level of change - gradual approach• Functions involved and BA team• The competitive pressure of the industry - the higher the pressure to innovate both

products, services, and business processes and practices, the greater the need for the COE)


One Size Does Not Fit ALL

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BACOE Models

There are several models of BACOEs that are in existence today. Each structure has unique composition, goals and outcomes.

• In that role, the BACOE defines the business rules, processes, knowledge, skills and competencies, and tools used by the organization to perform business analysis activities throughout the solutio n and project life cycle , from strategic planning to project initiation to solution delivery and benefits realization on field.

Business Analysis Center of Excellence (BACOE) is the emerging best practice in order to assess BA capabilities, identify the GAP and address them in order to move the organizations towards innovation and competition


Common BACOE Structures


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BACOE Models

BA Community of Practice (Senior BA)

- Club

Informal BACOE (BA Team Lead) –

Senior BAsFormal BACOE

(BA Practice Director/VP) - All

BasProject/Program

Management COE (PMO Director/VP) -

BAs; PMs, QA/Tester

One Size Does Not Fit ALL

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BA Practice and BACOE Program

To implement and institutionalize an enterprise-wide BA Practice , the business value that is promised from a mature BA Practice needs to be fully understood across the organization , and BA benefits need to be continually demonstrated through measurement and communication programs

• Leadership and sponsorship of the effort should emanate from the top of the organization, and flow down to all levels

Gradual Change Program Approach supported by BA tools as BACOE Maturity Model, BA Competence Model


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BACOE Maturity Model (1)

Level 1BA Awareness

Level 2BA Framework

Level 3 Business Alignment

Level 4 Business/ Technology Innovation

Project Focus Enterprise Focus Competitive Focus

� The BA Practice and the BACOE Maturity is moving from a project-focused structure with limited influence to an enterprise level, and finally to a focus on innovation and the competitive positioning of the organization


BACOE Maturity Model (2)

BA Awareness

BAFramework

Project Focus

Business Alignment

Enterprise Focus

Business/Technology Innovation

Competitive Focus


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1

2

34

BA ValueAcknowledged

Business Requirements Managed

Business Needs/Strategy Executed

Technology used as a Competitive Advantage

4

Continuous Improvement of BA Practices

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BACOE Program Approach

Readiness

• Business Case (Maturity model selection; Assessment, and Gap Analysis, Select Solution Approach (What BACOE), Solution Scope

• Executive Sponsorship (Engagement)• Steering Committee (Engagement and Approval)

Implementation

• BACOE Model ( Organization, role and responsibilities, Functions – BACOE Models)• Capable Team (BA Competencies development - BA Workforce Capability Model)• BA Practice Standard (Methods, Techniques - BA Practice Maturity Model)• BA Tools

Sustainability

• Maturity and Capability Assessments and Continuous Improvements• Next Phases – Assessment – Business Case – New Cycle• Measurement and Communication Programs

“Is your organization ready?”

“How do you institutionalize and continue to improv e BA practices?”

“How do you build the BA Practice?”

(BACOE Implementation - Framework- The Dynamic Duo® - PMProgetti®)

Project Focus Enterprise Focus Innovation Focus

R

I

S

• IT PMO

• BACOE

• Requirement

Management

• Portfolio

Management –

Enterprise Analysis

• BA Practices

• BA Training, CBAP,

CCBA

• BA Roles

Case 1 – From Informal to Formal (Energy)

Level 1BA Awareness

Level 2BA Framework

Level 3 Business Alignment

Level 4 Business/ Technology Innovation

Project Focus Enterprise Focus Innovation Focus

TrainingBA for

Business&

IT

2013•Follow up•Framework•BA Community

2014

BACOEBA roles

ExtentionBusiness

2015

Position

(BACOE Implementation - Framework- The Dynamic Duo® - PMProgetti ®)

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CASE 2 – EPMBA-COE - IT PMO versus

High Performance (Tourism)

Portfolio Management – Enterprise Analysis� Demand Management, Business CaseResource Allocation, Reporting

Enterprise PM and BA Capabilities� Project Management and

Business Analysis Processes� Project Managers and Business Analyst Professionals� Tools

Change Management� Organization (Macro and micro)(Enterprise, Innovation, Competitive Focus

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PMO Competency Continuum”- G. M. Hill

PM&BA Capabilities for Business Value

PM&BA Capabilities for

Level 4-5 requires PM, BA Practices Competencies and Tools those more mature and focused on adaptive change and innovation.

Scenario 3 IT PMO Manager (*)

PMO Analyst

Enterprise PM

Enterprise BA

IT Finance & Budget Analyst

PMBA-COE

Model2014

Standard PMOEnterprise Focus

Business Alignment

2015 • Advanced/COE

2016

(*) BAs(*) PMs


(BACOE Implementation - Framework- The Dynamic Duo ® - PMProgetti ®)

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CASE 3 - Formal BACoE (Banking)

• Centralize Business

Analysis – Competence

Center for BA

• 150 Business Analysts

• Project Team composition

Always required

- PM

- Architect

- BA

• Business Line Banking

Knowledge


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CASE 4 - PMO – BA Competence Center

(Telecom)

First PBM (Project

Business Manager)

High Potential Resources

Certification PMP ®

Resources not yet certified

CB

AP

®ce

rtifi

catio

n

The evolutionary roadmap expresses the evolution of the Project Manager in Telecom Italia with a view to acquire the entire lifecycle responsibility

(E2E) project

Standard PMO Advanced PMO

PMP®

1

2

3

4

5

2 3 4 5

DEBOLI TECNICAMENTE

DEBOLISSIMI

“NEL RUOLO”

ECCELLENTI

INSICURI, PREVALENTEMENTE

CON VOGLIA DI MIGLIORARE

CAMPIONI

COMPETENTI,

MOLTO POCO

CAPACI E MOLTO DEMOTIVATI

COMPETENTI, POCO CAPACI E DEMOTIVATI

COMPETENTI, MOTIVATI E POCO CAPACI

COMPETENTI CAPACI E DEMOTIVATI

1

2

3

4

5

2 3 4 5

DEBOLI TECNICAMENTE

DEBOLISSIMI

“NEL RUOLO”

ECCELLENTI



CAMPIONI

COMPETENTI,

MOLTO POCO





DEBOLI TECNICAMENTE

DEBOLISSIMI

“NEL RUOLO”

ECCELLENTI



CAMPIONI

COMPETENTI,

MOLTO POCO





Assessment by third party

Level 3 ?Level 4 ?Business/TechnologyInnovation

R

I

S

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Stay in touch with us!Prassede Colombo, PMP®

IIBA® Italy Chapter PresidentPartner PMProgetti

[email protected]@italy.iiba.org+39 380 3181546

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