2009 BA Benchmark Slideshow

Results HighlightsThe Business Analysis Benchmark – 2009Path To Success
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© IAG Consulting 2009

What is Requirements Maturity?
Requirements Management Maturityrepresents the overall capability of an organization to define and manage requirements.
The Maturity Modelis a visual representation of an organizations' level of maturity across multiple capability areas.
Levels of Maturity:
Level 1 – Performed (Ad-hoc)
Level 2 – Defined (Individual-centric)
Level 3 – Implemented (Consistent)
Level 4 – Institutionalized (Part of culture)
Level 5 – Continuously optimizing (Adaptive)

Most Organizations are Level 1 or 2
Almost 75% of organizations have not implemented consistent requirements discovery & management practices, let alone institutionalized these practices across the enterprise.

What Impact Does Requirements Maturity Have Within IT?
Going from
Here
to
Here
Average on time performance of technology projects increased by 161%.
Time overruns on projects reduced by 87%.
Average on budget performance for technology projects improved by just over 95%.
Budget overruns reduced by just under 75%.
Percentage of projects that deliver the functionality needed by the business rose by just over 75%.
Average functionality missed dropped by approximately 78%.

Maturing Requirements is Valuable
Every Measure of Effectiveness Improves as Maturity Improves
A
B
C
In % of all projects
C
D
D
B
A
N=437
Source: IAG Business Analysis Benchmark, 2009
Requirements Discovery & Management Maturity of Organization

Poor Requirements Effect Both Development and Maintenance Budgets
Average Cost of a $250,000 Project by Maturity Level
$356K
$343K
Difference between these two numbers is Requirements Maturity waste…
About $1 in $3 spent.
$309K
$274K
$261K
$257K
Maturity Level
N=437
Source: Business Analysis Benchmark, 2009

Poor Requirement Maturity Can Consume Over 50% of Development Budgets
Requirements maturity waste rises on all projects as project sizes get more diverse
From Business Analysis Benchmark - 2008 Study: A 60% premium is paid on ‘strategic projects’ by low maturity organizations

What Impact Does Requirements Maturity Have on Business Stakeholder Groups?
Going from
Here
to
Here
Project Success Rate:
49%
89%
to
81.6%
Projects that Hit BusinessObjectives of Development:
54%
83%
to
53.7%
Time Premium Paid to get to Equivalent Functionality on the AVERAGE project: 35%
Time Premium Paid to get to Equivalent Functionality on Strategic (larger) projects**: 56%
** From IAG Business Analysis Benchmark - 2008 Study

Myth-Busting
Some commonly held beliefs are simply not true…

CIOs Can’t Just Hire Good People and Expect the Problem of Poor Requirements to go Away
Lower skilled people in higher maturity companies OUTPERFORMHigher skilled people in lower maturity companies
N=437

There is no difference in methodology performance for any given level of maturity
(i.e., Requirements maturity is more important than development method selected)
Comparison of Project Success Rates: Maturity Level of Organization in Requirements Discovery & Management VERSUS Method of Development Utilized
Per Cent of Projects that are Successful
Requirements Discovery & Management Maturity
N=437

Making Improvement
Improvement starts with getting a baseline of requirements definition and management maturity in each of the six competency areas
Low maturity organizations spend a mere 25% of per analyst what their higher maturity counterparts spend on making improvement.
Organizations must create a plan for change that impacts all six competency areas

Maturing Requirements Gets Results
57% of those surveyed increased stakeholder satisfaction and improved on-time/on-budget performance by focusing on improving requirement maturity last year.
… and the majority of companies are focused on this area

2009 BA Benchmark Report
To obtain a copy of the report, visit:
www.iag.biz/benchmark

2009 BA Benchmark Slideshow

by IAG Consulting on Sep 21, 2009

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2009 BA Benchmark Slideshow — Presentation Transcript