Key role of business analysis in project success

The Key Role of Business Analysis in Project Success and Achieving Business Value Alan McSweeney

Objectives
To define the importance of effective business analysis in ensuring project success and delivery of business value

IT Challenge to Deliver Business Value
IT is viewed as a provider and enabler of business value
IT faces pressure to deliver value
Additional revenue
Reduced or avoided costs
Greater productivity
Reduced risk
Respond quickly to changing business environment and business needs
IT needs to structure itself to deliver business value
Managing the IT Budget Managing the IT Capability Managing IT for Business Value Managing IT Like a Business Provides Alignment Between Business and IT Provides Metrics to Close the Loop on Value

Familiar View of Project and Project Portfolio Management
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
Project Portfolio Management Programme and Project Management Prioritising Projects Managing Projects Successfully Project Approvals Project Requests Demand Management Supply Management Strategic Alignment Project Management Methodology Organisation Enablers People Management and Education

Aligning the Solutions Being Delivered to Business Needs 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

Business Analysis and Design Builds Bridge From Business to Solution
Business analysis is a key driver of business value
Solution delivery start with business analysis
Problem Requirement Current State Business Analysis and Solution Design Solution Desired Future State Business Analysis: Elicit Requirements Analyse Communicate Validate Solution Design: Translate Requirements into Solution

Weaknesses in Business Analysis Capabilities and Competencies at the Root of Many Project Failures Business Needs Not Met Opportunities Lost Investment Wasted Inadequate Business Case, Undefined Problem/Need Business Benefits Not Measured Poor Analysis Practices Business Requirements Not Captured Poor Requirements Poor Strategic Alignment Poor Focus on Business Needs Inadequate Resource Allocation and Prioritisation Inadequate Business Involvement Poor Solution Design Inadequately Explored Solution Options Solution Design Not Aligned to Business Needs Large Project, Complex, Difficult Changes and Processes Large Project Team and Multiple Stakeholders Size/Capacity/Complexity Uncertainly/ Ambiguity Unproven Technology Dynamic, Changing Environment

Analysis-Related Causes of Failures Business Needs Not Met Opportunities Lost Investment Wasted Inadequate Business Case, Undefined Problem/Need Business Benefits Not Measured Poor Analysis Practices Business Requirements Not Captured Poor Requirements Poor Strategic Alignment Poor Focus on Business Needs Inadequate Resource Allocation and Prioritisation Inadequate Business Involvement Poor Solution Design Inadequately Explored Solution Options Solution Design Not Aligned to Business Needs Large Project, Complex, Difficult Changes and Processes Large Project Team and Multiple Stakeholders Size/Capacity/Complexity Uncertainly/ Ambiguity Unproven Technology Dynamic, Changing Environment

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

Business Analysis Role Key Skills and Abilities Business Analysis Role Skills and Abilities Business Analysis Role-Specific Performance Competencies Personal Underlying Competencies and Characteristics Techniques and Tools Experience and Skills

What Makes a Good Business Analyst and Business Analysis Function? Business Analysis Role Skills and Abilities Business Analysis Role-Specific Performance Competencies Personal Underlying Competencies and Characteristics Techniques and Tools Experience and Skills Business Analysis Planning and Monitoring Requirements and Information Elicitation Requirements Analysis Requirements Management and Communication Enterprise Analysis Solution Assessment and Validation

Business Analysis Key Skills Business Analysis Role Skills and Abilities Business Analysis Role-Specific Performance Competencies Personal Underlying Competencies and Characteristics Techniques and Tools Experience and Skills Analytical Thinking and Problem Solving Organisation and Trust Business, Industry and Organisation Knowledge Communication Skills Facilitation, Negotiation, Leadership, Influencing and Teamwork Analysis Tools

Business Analysis Key Skills Business Analysis Role Skills and Abilities Business Analysis Role-Specific Performance Competencies Personal Underlying Competencies and Characteristics Techniques and Tools Experience and Skills Data and Process Modelling Interviewing Functional and Non-functional Requirements Analysis Requirements Workshops Vendor and Software Assessment Metrics and Key Performance Indicators Prototyping Acceptance and Evaluation Criteria Definition

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

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

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

Maximising Solution Value Throughout Lifecycle Good Analysis and Design Poor or Inadequate Analysis and Design Good Solution Delivery Poor Solution Delivery Good Solution Delivery Poor Solution Delivery Good Analysis and Design Followed by Poor Solution Delivery is Better Than Poor or Inadequate Analysis and Design Followed by Good Solution Delivery Achievement of Business Value

Maximising Solution Value Throughout Lifecycle Solution Design Solution Development Solution Transition Solution Operation Achievement of Business Value Improved Business Analysis Improved Solution Design Improved Management of Transition Improved Delivery of Business Needs

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

Solution Life Cycle Cost Composition
Hardware
Software
Development and Implementation
Management
Installation
Transition and Cutover
Conversion
BASIC SYSTEM COST
Training
Documentation
Support Facilities
Parallel Running
Warranty
TOTAL SYSTEM COST
External Support and Maintenance
Subscription
PROCUREMENT COST
Planning, Research, Analysis and Design
Ongoing Test Facilities
SYSTEM ACQUISITION COST
Operations
Internal Support
Disposal
LIFE CYCLE COST

Solution Life Cycle Costs
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
System Acquisition Cost COST YEARS Operating and Support Cost Total Cost of Ownership

IT Investment Management and Project and Solution Lifecycle Business Analysis Solution Operation Solution Architecture and Design Project Portfolio Management Structured Capture and Management of Requirements and Cost Benefit Analysis of Solution Costs Design/Selection of Cost Effective Solutions to Meet Requirements Including Evaluation of All Options Prioritisation of Projects and Investment Decisions Cost Effective Delivery of Projects and Management of Costs Programme and Project Management Cost Effective Operation of Delivered Solution and Effective Retirement/ Replacement/ Upgrade Decisions Key Phase in Solution Delivery to Drive Business Value

Ensuring Strategic Project Alignment to Projects Programmes and projects cascade from business vision to ultimate operation and service delivery Programmes and projects need to be aligned to the overarching business vision and goal Business Analysis identifies the business needs and document the requirements of the solution Business Analysis we ensures that the right solution is designed Business Vision and Goal Strategy Business Plan Programmes for Strategic Objectives Projects Operation of Solution

Hierarchy of Requirements – from Enterprise to Project/Initiative Solutions delivered by programmes and projects cascade from business vision to ultimate operation and service delivery Solutions delivered by programmes and projects need to be aligned to the overarching business vision and goal Requirements Hierarchy – from Business to Specific Initiatives Delivery and Operation Business Vision and Goal Strategy Business Plan Programmes for Strategic Objectives Systems and Solutions Operation of Solution

From Strategy to Business Value to Business Benefits Defines Business Benefits Delivered and Contribute to the Delivery of Business Value Business Vision and Goal Strategy Business Plan Programmes for Strategic Objectives Systems and Solutions Operation of Solution Calculates Calculates Calculates Defines Business Value Gains to the Organisation - Accumulated Net Business Benefits Defines Organisational Targets

From Strategy to Business Value to Business Benefits Defines Business Benefits Delivered and Contribute to the Delivery of Business Value Agree and Define Need and Value to be Delivered Strategy Business Plan Programmes for Strategic Objectives Systems and Solutions Calculates Calculates Calculates Defines Business Value Gains to the Organisation - Accumulated Net Business Benefits Defines Organisational Targets Ensure Needs are Met and Value Generated

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

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

Business Analysis Approach to Business Requirements Collection and Management During Solution Delivery Lifecycle
Requirements Management
Capture – Ensure that the new requirements or change requests are captured
Assess – Evaluate whether the changes will be actioned and approve or reject
Change – Undertake the changes
Requirements Definition
Gather – Collecting requirements
Analyse – Analysing, categorising and specifying requirements
Review – Review and agree exactly what the requirements are
Gather Analyse Review Assess Capture Change

Relative Cost of Fixing Errors During Project Lifecycle
Errors/gaps/omissions become significantly more expensive to fix at later stages of project lifecycle

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

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

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

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Alan McSweeney
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Key role of business analysis in project success

by Abid Khan

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