Leadership in Business Analysis
Module 3: Business Analysis Maturity
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
Transition from Todays BA.
IT Oriented Analysts:
Improve operations through changes to technology Mostly generalists as opposed to
Information BAs Process BAs Rules Bas
Business Oriented Analysts
Improve operations through changes to policy and process Mostly functionally focused:
Finance HR Manufacturing
3Source: Carey Schawber and Rob Karel, The New BA, Forrester Research
to Tomorrows 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
4Source: Carey Schawber and Rob Karel, The New BA, Forrester Research
Todays Agenda
Business Analysis Maturity Model BA Practice Maturity BA Workforce Competency Business Analysis Center of Excellence (BACOE)
Framework to Grow a Mature BA Practice
6 Source: Kathleen Hass
1. Business Analysis Maturity Model
Ambiguity in the Business Analysis Role
Business Analysis Project Management Developer, Engineer, Development Lead Subject Matter Expert, Domain Expert Tester, Test Lead Other 29.3% 18.7% 15.4% 13.5% 10.1% 13.0%
There is a need for Business Analyst competency and career path definition
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Source: The New Business Analyst: A Strategic Role in the Enterprise, November 2006 Evans Data Corporation Research Study
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 Function
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Business Analysis Maturity Model
Business Analysis maturity models systematically increase the level of maturity of the Business Analysis function within the organization
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Sample Maturity Model
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Source: Journey to Business Analysis Maturity, by Angie 11 Perris
Another View
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Assess Present Situation
Journey to Business Analysis Maturity
Determine Maturity Goals
Standards Implementation Plan
Establish Governance Measures
Skills Development Plan
Execute Plans
Monitor Progress
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The development of Business Analysis
Business Improvement
Scope
IT Improvement
Process Improvement
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Maturity
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Key Techniques
Business Improvement Strategy Analysis Systems Thinking Process Improvement Value chain Analysis Process Modelling IT Improvement Requirements Engineering Systems Modelling
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2. BA Practice Maturity
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Driving BA Practice Maturity
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 17 Source: Kathleen Hass
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BA Practice Maturity
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
18 Source: IAG Business Analysis Benchmark, 2008
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The Daunting Road Ahead
Solid Foundation
Standards & Tools
Supportive Environment
BACOE
Competency
Business Focus
Enterprise Analysis
Capable BA Workforce
Metrics & Measurements
BA Governance
BA Role Definition & Career Path Leading to VP BA
Customer Relationships
Continuous Improvement Knowledge Management
Periodic Maturity Assessments Mature Practices
Mentoring Program Business Benefit Management Robust Training Competitive / Programs Feasibility Studies 19
19 Source: Kathleen Hass
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The Pay-off for Doing Competent Business Analysis
Companies that have made pervasive change to their BA people and processes: 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 21 process and technology
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B P A racticeandW orkforceMaturity
0 .0 0 .0 0 .0 0 .0 P roject 0 .0 C plexity om 0 .0 0 .0 0 .0 0 .0 0 0 0 Project T ype 0 0
Projects of higher complexity require more mature BA practices and skills.
Project Complexity by Project Type BA Practice Maturity BA Workforce Maturity AverageComplexity by Project Type
22= 50 Assignment, BA Practice and Workforce Correlation: N
r = .587 p < .01
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BA Practice Maturity Action Plan
Goal Activities 1. BA Practice Organizational Finalize the model to ensure Business Analysis has the right fit with other Model 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 Evaluate BAs to identify skill gaps and baseline BA workforce competency; this Evaluation will also inform the BA role/career path and professional development 4. BA Role, Title, and Career Path 5. BA Professional Development Program 6. BA Standard Methods and Tools 7. Change Management Program 8. Business/Technology Forums Finalize BA job descriptions, titles, career progression ensuring alignment with industry to professionalize the BA role in your organization 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 Develop, pilot, implement BA standards to close the gap in level 2 practices; accompany implementation with training and mentoring Execute a formal change management campaign to manage the changes and to ensure BA Practices are embraced by all project stakeholders Conduct forums to help build consensus on the professional BA role and support for BA activities 24
24 Source: Kathleen Hass
Project Success vs. Maturity
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3. BA Workforce Competency
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Superior Skills Needed
the average business analyst team will fail to get successful results in over 60% of projects where a significant change to the existing approach to doing business is needed. Simply put, a project manager increases their chance of getting an unqualified success by over 400% by using elite analysts with specific competencies at the start of requirements discovery.
27 Source: IAG Business Analysis Benchmark, 2008
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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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Goal: Mature BA Capabilities
Chart the Course: Enterprise Analysis Stay the Course: Requirements Management
Planning Elicitation Definition Analysis Specification Validation Change management Communication
The Finish Line and Beyond: Organizational Change
Organizational readiness Organizational change management Business artifacts: business policies, procedures, rules, training, retooling, restructuring Benefits measurement and management
Business architecture Opportunity analysis Problem analysis Solution feasibility analysis Business case development Solution assessment and validation
30 Source: Kathleen Hass
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BA Workforce Competency Model
Business Operations Enhanced Operations/Support Focus
PROJECTS
Low complexity projects that continually enhance business process, product, and/or technology
Business Objectives Met Project Focus
PROJECTS
Moderately complex new development projects that improve business process, product, and/or technology
Business Strategy Executed Enterprise Focus
PROJECTS
Highly complex programs and portfolios that improve multiple business processes and/or technologies
New Business Strategy Forged Competitive Focus
PROJECTS
Innovation projects that improve competitive advantage and translate strategy into breakthrough process and technology
OUTCOMES
Value of operational business process & systems is continually enhanced
OUTCOMES
Business requirements are managed to ensure new solutions meet business objectives
OUTCOMES
The enterprise is investing in the most valuable initiatives and is realizing the business benefits forecasted in the Business Case
OUTCOMES
New strategy formulated. Business/Technology optimized. Continued or better competitive position.
TYPE OF LEADER
Generalists, Business/System Specialists, Product Managers Entry Level Through Consultant
TYPE OF LEADER
Business Domain Experts, IT System Experts Entry Level Through Consultant
TYPE OF LEADER
Enterprise Change Experts, Business Architects Mid Level Through Consultant
TYPE OF LEADER
Business/Technology Analysts, Innovation, Cultural Change, CrossDomain, Strategy Experts Enterprise Level Through Consultant
Continuous Advancement of Competence, Credibility, and Influence 31 Source: Kathleen Hass
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BACWM - Project Complexity vs. Competency
Current project capabilities based on competency level Current project complexity
Complexity of current work assignments appears to exceed current capabilities 32
32 Source: Kathleen Hass
BA Workforce Demographics
Acquisitionof BA S kills
0 % 0% 0 0% 0 0% 0 Self-Educated On-the-Job Formal Education Other
Y earsof BAExperience
0% 0
BAC ertification
0% 0 Less than 0 years 00 - years 00 - years 0% 0 Greater than 0 years
0% 0 0% 0 0% 0 CBAP Other Industry Certification No Certification
0% 0
33 Source: Kathleen Hass
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BA Workforce Demographics
34 Source: Kathleen Hass
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BA Workforce Demographics
#of Concurrent Projects
0 0 0 #of Projects 0 0 0 0 0 0 0 0 0 0 0 0
> 0 0 -0 0 -0 0 -0 0 -0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Count
ProjectT ypes
Low to Moderately Complex, Enhancement or Improvement Moderately Complex, New Development Highly Complex, HighRisk Programor Portfolio
0% 0
0% 0
0% 0
#of Core Work Requests
Paarticipant Count
#of Work Requests
35 Source: Kathleen Hass
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4. BACOE
Planting the Seeds to Grow a Mature BA Practice
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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
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Emerging BACoE
Source: Chapter 8 of From Analyst to Leader, K. Hass
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Emerging BACoE
Source: Chapter 8 of From Analyst to Leader, K. Hass
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Benefits - Superior Success Rates
The idea of a 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 competency base of the corporation, and optimize the use of elite analysts across the enterprise Only when both structure and high levels of competency are brought together are superior resource efficiency and superior success rates achieved
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Source: IAG Business Analysis Benchmark, 2008
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
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Goal: Build a BACOE to last
The mission
Clear, compelling mission: to deliver business value Delivered often, the right message to the right people
Value + Alignment + Communication = Success
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
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BACoE Functions
Source: Chapter 8 of From Analyst to Leader, K. Hass
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Organizational Integration for CoEs
Source: Chapter 8 of From Analyst to Leader, K. Hass
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BA Maturity Model
Technology Used as a Competitive Advantage Business Needs Met / Strategy Executed Business Requirements Managed BA Value Acknowledged 1 BA Awareness 2 BA Framework 3 Business Alignment 4 Business / Technology Optimization
BA Practices Informal BA Community of Practice Exists Increasing awareness of the value of BA
Centralized Management of:
Customer Involvement Project Metrics Project Change Mgt. BABOK Standards: BA Planning/Monitoring Elicitation Requirements Mgt./Communication Requirements Analysis BA Framework Training BA Career Track IT Oriented Analysts Business Oriented Analysts
Centralized Management of:
Customer Satisfaction Business Architecture Organizational Change Mgt. Benefits Management BABOK Standards: Enterprise Analysis Solution Assessment & Validation Business Case Dev., Portfolio Mgt., BPM, BDM, Resources, Contractors Business Alignment Training BA Career Path to VP of BAs Business Architects Enterprise Analysts
Centralized Management of:
Customer Relationship Mgt. Opportunities converted into Innovative Business Solutions Strategy translated into Breakthrough Process & Technology Cultural Change Mgt. Strategy Development Stds: Visioning &Strategic Planning Innovation & R&D COE: Management of Innovation and R&D Innovation Training BA Career Path Leading to Strategic BAs Business/Technology Analysts
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Continuous Improvement of BA Capabilities
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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 highperforming project teams.
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Source: Chapter 8 of From Analyst to Leader, K. Hass
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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
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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
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BACOE Implementation Model
Adapted 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.
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BACOE Implementation Model (another view)
Source: Chapter 8 of From Analyst to Leader, K. Hass
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Compass BA Organizational Model developed by Management Concepts
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Source: Chapter 8 of From Analyst to Leader, K. Hass
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Typical BACOE Evolution
Program Department Enterprise
COE Launch
Strategic COE
Phase 1
Phase 2
Phase 3 Project-Driven Organization
Functional Organization Time
Increases Responsibility
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Gains Credibility, Acquires Expertise, Builds Trust, Expands Influence
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Must Demonstrate Value
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
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Source: [Link]
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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
55 Source: Hobbs, PMI PMO Research Report , 2007
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Why so Many CoEs Fail
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 56 Management and the PMO J. Ross Publishing, 2003.
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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.
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Appendix
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BACWM Individual BA report
This Business Analysts 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
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Source: Kathleen Hass
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Professional Development Plan: Improving BA Competencies
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Source: Kathleen Hass
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Overall BA Workforce Report
For both areas, the competency level of the Enterprise BA group is lower than required for the types of project they are working on.
For both areas, the Senior BA group has the highest competency level.
The shaded gray areas indicate the required competency level for each BA Group based on the model.
61 Source: Kathleen Hass
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Salary Survey Report IT BA
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