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Key Role of BA in Project Success
 

Key Role of BA in Project Success

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    Key Role of BA in Project Success Key Role of BA in Project Success Presentation Transcript

    • The Key Role of BusinessAnalysis in Project Successand Achieving BusinessValueAlan McSweeney
    • Objectives• To define the importance of effective business analysis in ensuring project success and delivery of business value June 25, 2010 2
    • IT Challenge to Deliver Business Value Provides Alignment• IT is viewed as a provider and Between Business and IT enabler of business value Managing IT for• IT faces pressure to deliver Managing IT Like Business a Business value Value − Additional revenue − Reduced or avoided costs − Greater productivity − Reduced risk − Respond quickly to changing business environment and Managing the IT Managing the IT business needs Budget Capability• IT needs to structure itself to deliver business value Provides Metrics to Close the Loop on Value June 25, 2010 3
    • Familiar View of Project and Project PortfolioManagement Project Demand Management Management Methodology Project Approvals Programme and People Strategic Project Portfolio Project Management Alignment Management Management and Education Project Requests Supply Organisation Management Prioritising Managing Projects Enablers Projects Successfully• Contains the implicit assumption that the solutions being delivered by the projects are designed properly, are implementable and operable and meet business requirements• Is this correct? Is this the complete picture?• More is need than just the right project managed the right way − The solution being delivered by the project must meet business needs June 25, 2010 4
    • Aligning the Solutions Being Delivered to BusinessNeeds and Delivery of Business Value• Need more than project management − Not the complete picture − Cannot treat project management in isolation• Need to ensure that the solution being managed meets business requirements• Need to ensure business requirements are captured• Need to ensure that solutions are designed to deliver business requirements and comply with organisation’s enterprise architecture• Fundamentally the project exists to manage the delivery of the solution that has been designed to meet agreed business requirements that assist with delivery of the business plan to achieve business value June 25, 2010 5
    • Business Analysis and Design Builds Bridge FromBusiness to Solution Problem Requirement Business Analysis: Elicit Requirements Current State Analyse Communicate Business Validate Analysis and Solution Design Solution Design: Translate Requirements into Solution Solution Desired Future State• Business analysis is a key driver of business value• Solution delivery start with business analysis June 25, 2010 6
    • Weaknesses in Business Analysis Capabilities and Competencies at the Root of Many Project Failures Poor Size/Capacity/ Poor Strategic Requirements Complexity Alignment Poor Analysis Large Project, Inadequate Business Practices Complex, Difficult Case, Undefined Changes and Processes Problem/NeedBusiness Requirements Large Project Team and Business Benefits Business Needs Not Captured Multiple Stakeholders Not Measured Not Met Opportunities Lost Investment Inadequate Resource Unproven Technology Inadequately Explored Wasted Allocation and Solution Options PrioritisationInadequate Business Dynamic, Changing Solution Design Not Involvement Environment Aligned to Business Needs Poor Focus on Uncertainly/ Poor Solution Business Needs Ambiguity Design June 25, 2010 7
    • Analysis-Related Causes of Failures Poor Size/Capacity/ Poor Strategic Requirements Complexity Alignment Poor Analysis Large Project, Inadequate Business Practices Complex, Difficult Case, Undefined Changes and Processes Problem/NeedBusiness Requirements Large Project Team and Business Benefits Business Needs Not Captured Multiple Stakeholders Not Measured Not Met Opportunities Lost Investment Inadequate Resource Unproven Technology Inadequately Explored Wasted Allocation and Solution Options PrioritisationInadequate Business Dynamic, Changing Solution Design Not Involvement Environment Aligned to Business Needs Poor Focus on Uncertainly/ Poor Solution Business Needs Ambiguity Design June 25, 2010 8
    • Consistent Approach to Business Analysis• Adopt a consistent and robust framework in business analysis − Enables effective benefits realisation through a solution which meets the business need• Key elements − Establish enterprise standards, procedures and governance − Standardise on infrastructure, analysis methods and operational procedures − Develop competence and skills• Key benefits − Implement solutions that meet business needs − Increase the ability of the business to adapt quickly to changes − Reduce risk, complexity, redundancy and support complexity − Align business and IT − Enable re-use and faster time-to-market − Present one face to the business (customer) − Increase business value June 25, 2010 9
    • Business Analysis Role Key Skills and Abilities Business Analysis Role Skills and Abilities Business Analysis Personal Underlying Techniques and Role-Specific Competencies and Tools Experience Performance Characteristics and Skills Competencies June 25, 2010 10
    • What Makes a Good Business Analyst and Business Analysis Function? Business Analysis Role Skills and Abilities Business Analysis Role- Personal Underlying Techniques and Tools Specific Performance Competencies and Experience and Skills Competencies Characteristics Business Analysis Requirements and Planning and Information Elicitation Monitoring RequirementsRequirements Analysis Management and Communication Solution Assessment Enterprise Analysis and Validation June 25, 2010 11
    • Business Analysis Key Skills Business Analysis Role Skills and AbilitiesBusiness Analysis Role- Personal Underlying Techniques and Tools Specific Performance Competencies and Experience and Skills Competencies Characteristics Analytical Thinking and Organisation and Trust Problem Solving Business, Industry and Communication Skills Organisation Knowledge Facilitation, Negotiation, Leadership, Influencing and Analysis Tools Teamwork June 25, 2010 12
    • Business Analysis Key Skills Business Analysis Role Skills and AbilitiesBusiness Analysis Role- Personal Underlying Techniques and Tools Specific Performance Competencies and Experience and Skills Competencies Characteristics Data and Process Modelling Interviewing Functional and Non- functional Requirements Requirements Workshops Analysis Vendor and Software Metrics and Key Assessment Performance Indicators Acceptance and Evaluation Prototyping Criteria Definition June 25, 2010 13
    • Business Analysis Challenges• Lack of advance planning for projects and initiatives• Lack of formal training for business analysts• Inconsistent approach to business analysis• Outsourcing and relying on external contractors to perform major roles in system development• Impatience with the analysis/design/planning process• Gap between what business analysts are assigned to do and what they should be assigned to do June 25, 2010 14
    • What is a Project Failure?• Over schedule• Over budget• Project cancelled• Solution ultimately not used and withdrawn• Does not deliver on business case• Does not deliver on business benefits• Does not deliver business value• Poor system usability and/or high error rates requiring rework June 25, 2010 15
    • Business Analysis Contribution to Project Failure• Root cause analysis of many project failures − Poor focus on business needs that means the project is not what the business needs and will therefore use − Poor requirements capture and definition − Poor strategic alignment that means the business case is not well constructed − Poor solution design that means the solution does not deliver on the specified requirements• Business analysis failures are at the root of these failures• Well-executed business analysis fully integrated into the project management process ensures projects deliver on the expected benefits June 25, 2010 16
    • Maximising Solution Value Throughout Lifecycle Good Solution Delivery Good Analysis and Poor Solution Design Followed by Delivery Poor Solution Delivery is BetterGood Analysis Than Poor or and Design Achievement Inadequate of Business Good Solution Analysis and Design Value Delivery Followed by Good Solution Delivery Poor orInadequate Poor SolutionAnalysis and Delivery Design June 25, 2010 17
    • Maximising Solution Value Throughout Lifecycle Solution Solution Solution Solution Design Development Transition Operation Improved Delivery of Business Needs Improved Management of TransitionAchievement of Business Improved Value Solution Design Improved Business Analysis June 25, 2010 18
    • Maximising Solution Value Throughout Lifecycle• Good solution and project definition delivers superior business value• Poor solution and project definition results in lower business value, even if it is followed by good project management• Good project management does not make a bad solution good June 25, 2010 19
    • Solution Life Cycle Cost Composition LIFE CYCLE COST SYSTEM ACQUISITION COST •Operations PROCUREMENT COST •Internal Support •Planning, Research, •Disposal TOTAL SYSTEM COST •External Support and Analysis and Design Maintenance •Ongoing Test BASIC SYSTEM COST •Training •Subscription Facilities •Documentation •Hardware •Support Facilities •Software •Parallel Running •Development and •Warranty Implementation •Management •Installation •Transition and Cutover •Conversion June 25, 2010 20
    • Solution Life Cycle Costs Total Cost of Ownership System Acquisition Cost Operating and Support Cost COST YEARS• Depending on the life of the solution being implemented, the operating costs can be 1-3 times the cost of acquisition• Getting the solution design right at the start delivers very significant increased benefits throughout the solution’s life June 25, 2010 21
    • IT Investment Management and Project andSolution Lifecycle Structured Capture and Management of Cost Effective Requirements and Operation of Business Analysis Cost Benefit Analysis Delivered Solution of Solution Costs and Effective Solution Retirement/ Operation Replacement/ Upgrade Decisions Key Phase in Solution Delivery to Design/Selection of Cost Effective Drive Solution Solutions to Meet Business Architecture and Requirements Including Cost Effective Design Delivery of Programme and Value Evaluation of All Projects and Options ProjectManagement of Management Costs Project Portfolio Prioritisation of Management Projects and Investment Decisions June 25, 2010 22
    • Ensuring Strategic Project Alignment to Projects Programmes and projectsBusiness Vision and cascade from business vision to Goal ultimate operation and service delivery Strategy Business Analysis identifies the business needs and Business Plan document the requirements of the solution Programmes and projects need Programmes for to be aligned to the Strategic Objectives overarching business vision and goal Projects Business Analysis we ensures that the right solution is designed Operation of Solution June 25, 2010 23
    • Hierarchy of Requirements – from Enterprise toProject/Initiative Solutions delivered by Business Vision and Re programmes and projects qu Goal ire cascade from business vision me nts to ultimate operation and Hie service delivery Strategy rar ch y –f rom Bu Business Plan s in ess to De Sp liv eci ery Programmes for fic an Ini dO Strategic Objectives tia tiv pe es Solutions delivered by ratprogrammes and projects ion Systems andneed to be aligned to the Solutions overarching business vision and goal Operation of Solution June 25, 2010 24
    • From Strategy to Business Value to Business BenefitsBusiness Vision and Goal Strategy Defines Organisational Targets Defines Business Value Gains to Business Plan the Organisation - Accumulated Net Business Benefits Calculates Defines Business Benefits Programmes for Delivered and Contribute Strategic Objectives to the Delivery of Business Value Calculates Systems and Solutions Calculates Operation of Solution June 25, 2010 25
    • From Strategy to Business Value to Business Benefits Ag ree Va and lue D to efin be e N Strategy Defines Organisational De ee liv d a Targets ere nd d Defines Business Value Gains to Business Plan the Organisation - Accumulated Net Business Benefits Calculates Defines Business Benefits En Programmes for Delivered and Contribute sur Strategic Objectives to the Delivery of eN Va ee Business Value lue ds Ge are Systems and ne Me Calculates rat t a Solutions ed nd Calculates June 25, 2010 26
    • Complete Picture of Project Selection and Delivery• Need to consider all aspects of project selection and delivery: − What the business wants (requirements) − What the business gets (solution that delivers on requirements) − Delivered according to business priority (project portfolio management) − Implemented properly (project management)• Cannot take an individual view without risking problems• Need to emphasise the importance of the solution whole lifecycle and the interdependence of the roles June 25, 2010 27
    • Business Analysis Through the Solution Lifecycle• Need to do more than capture requirements initially• Requirements management needs to take place throughout the delivery lifecycle to confirm business needs and being met and business value will result• Requirements changes must be managed throughout the solution lifecycle June 25, 2010 28
    • Business Analysis Approach to Business RequirementsCollection and Management During Solution DeliveryLifecycle e tur Cap As s e Gather Analyse Review ss Cha nge Requirements Definition Requirements Management • Gather – Collecting requirements • Capture – Ensure that the new requirements or change requests are • Analyse – Analysing, categorising and captured specifying requirements • Assess – Evaluate whether the changes • Review – Review and agree exactly will be actioned and approve or reject what the requirements are • Change – Undertake the changes June 25, 2010 29
    • Relative Cost of Fixing Errors During Project Lifecycle 1000• Errors/gaps/omissions become significantly (Logarithmic Scale) 100 more expensive to fix at later stages of project lifecycle 10 1 t n n g g ts en tio sig tin in en st m es ta De m Te oy en rT ire pl em em e qu De Us st Re pl Sy Im t/ en pm lo ve De Low Cost Estimate High Cost Estimate June 25, 2010 30
    • Business Analysis is a Key IT Competency• Business analysis function manages the entire solution requirements lifecycle from understanding the business need to ensuring that the delivered solution meets business needs and adds business value• Projects all too frequently experience difficulties not from lack of technical expertise but from an a failure to gather, understand, analyse and manage business requirements, and convert them into realistic achievable solution specifications• Projects are all too frequently initiated and solution design and implementation started before there is a clear understanding of the business need• High tolerance and acceptance of inadequate and ever-changing requirements leading to requirements and scope creep June 25, 2010 31
    • Business Analysis is a Key IT Competency• Business analysis focuses on adding value to the business − Business analysis provides − Detailed project objectives − Business needs analysis − Well defined and structured requirements − Requirements trade-off analysis and requirements feasibility and risk analysis; and cost-benefit analysis• Without business analysis poor requirements definition happens, resulting in a disconnect between what the business needs and what solution is delivered• Effective business analysis is a combination of technical, analytical, business and leadership skills June 25, 2010 32
    • Business Analysis Skills• Identify and understand the business problem and the impact of the proposed solution on operations of the organisation• Document project scope, objectives, added value and benefit expectations• Translate business needs and objectives into system requirements• Design and develop high quality business solutions• Liaise with customers/stakeholders/users during installation and testing of new systems and services• Evaluate business needs and contribute to strategic planning of information systems and technology directions• Assist in determining the strategic direction of the organisation June 25, 2010 33
    • More Information Alan McSweeney alan@alanmcsweeney.com June 25, 2010 34