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Eight Things Your
Business Analysts
Need to Know
A Practical Approach to Recognizing
and Improving Competencies
An ESI International
White Paper
© ESI International, Inc. 2006. All rights reserved.
2Eight Things Your Business Analysts Need to Know
Table of Contents
Abstract ............................................................................................................................................3
Introduction....................................................................................................................................4
Why Are Projects Failing?...........................................................................................................4
The Role of the Business Analyst.............................................................................................5
Defining Competencies..............................................................................................................6
Setting Concrete Competencies..............................................................................................7
Competency #1: Eliciting Requirements .................................................................................9
Competency #2: Creating the Business Requirements Document.....................................10
Competency #3: Structured Analysis.....................................................................................11
Competency #4: Object-Oriented Analysis...........................................................................12
Competency #5: Testing..........................................................................................................13
Competency #6: End-User Support.......................................................................................14
Competency #7: IT Fluency.....................................................................................................15
Competency #8: Business Process Re-Engineering..............................................................16
Developing the Eight Competencies to Improve Your Organization......................17
The ESI Solution...........................................................................................................................19
References .................................................................................................................................... 20
© ESI International, Inc. 2006. All rights reserved.
3Eight Things Your Business Analysts Need to Know
Abstract
Each year, organizations across the globe face astronomical project failure rates,
often wasting millions of dollars per failed project. This paper examines the
roots of project failure and centers in on the elusive, often undefined role of the
business analyst. In response to research showing that many organizations have
not set concrete requirements and job descriptions for their business analysts,
this paper provides eight essential competencies necessary for success in this
job function. It explores the essential skills, knowledge and abilities inherent
to each competency and during each stage of a business analyst’s career. The
paper concludes with practical tips for using these competencies as guidelines
for improving the efficiency of business analysts within your organization.
© ESI International, Inc. 2006. All rights reserved.
4Eight Things Your Business Analysts Need to Know
Introduction
A Standish CHAOS Chronicles report states that only 28% of software projects were
expected to finish on time and on budget. Only 52% of completed projects met their
proposed functionality. Based on a study of more than 13,000 U.S. projects, the
Standish Group reported that successful projects made up “just over a third or 34
percent of all projects….” Estimates of the lost value for these projects in 2002 was
$38 billion, with another $17 billion in cost overruns, for a total project waste of $55
billion against $255 billion total in project spending.
Unfortunately, poor project performance has become a way of life. Failure
statistics like those above have ceased to even shock us. Most organizations
have come to accept project failure—along with a loss of money, time and
functionality—as a given. With constantly improving technology, exponential
resources and a concrete project management methodology, how does this
continue to happen? It’s time for our questioning to go beyond, “Are projects
failing?” Now it’s time to ask why.
Why Are Projects Failing?
The data in Figure 1 was collected in an online poll of 2,000 business
professionals. It asked the question, “What are the key challenges in translating
user needs into systems specifications for mission critical projects?”
“Most organizations have
come to accept project
failure—along with a
loss of money, time and
functionality—as a given.”
Figure 1: Key Challenges in Translating User Needs into Systems Specifications
Source: ESI International survey of 2,000 business professionals, 2005.
Other
1%
Lack of
qualified resources
3%
Communication
problems
14%
Inadequate
risk management
17%
Poor scope
control
15%
Poor requirements
definition
50%
© ESI International, Inc. 2006. All rights reserved.
5Eight Things Your Business Analysts Need to Know
If a project fails, it’s often assumed to be the project manager’s fault. More
and more, however, research is showing that this is not the case. In the
survey mentioned on page 4, an overwhelming 50% of respondents cited
poor requirements definition as their biggest challenge, thus raising a new
question. When projects fail, most organizations are quick to blame the project
manager. But what about the business analysts? What role do they play? More
importantly, what role should they play?
The Role of the Business Analyst
In many organizations, the competencies necessary for a successful business
analyst simply haven’t been differentiated from those of a subject matter expert
(SME) or a project manager. And yet each of these three positions have very
distinct responsibilities during the project life cycle. It’s no wonder so many
projects are failing. How can a business analyst—or anyone in any job—be
expected to perform at a top level when his or her required competencies have
not been clearly defined?
The answer is simple: They can’t. Yet organizations worldwide are operating
without defined competencies for their business analysts. For many
organizations, in fact, even the title of the person performing “business analysis
duties” can vary widely. According to a recent poll, there are several titles used
for those performing the “business analyst” role, as illustrated in Figure 2.
Figure 2: Alternative“Business Analyst”Titles
Source: ESI International survey of 2,000 business professionals, 2005.
N/A
2%
Other
5%
Systems/Solutions
Architect
11%
Systems
Engineer/Designer
5%
Project
Manager
28%
Business Analyst
49%
© ESI International, Inc. 2006. All rights reserved.
6Eight Things Your Business Analysts Need to Know
We know what business analysts do—essentially. At the most basic level, a
business analyst acts as a translator or liaison between the customer or user and
the IT person or group attempting to meet this user’s needs. But what about the
specifics? According to the International Institute of Business Analysis, business
analysts are “responsible for identifying the business needs of their clients and
stakeholders, to determine solutions to business problems.” As a translator, he
or she “elicits, analyzes, validates and documents business, organizational and/
or operational requirements” (www.iiba.com).
Additionally, what processes are business analysts using to elicit, analyze,
validate and document these requirements? Most organizations do not have set
processes in place. And if they do, one needs to ask, “What competencies does a
business analyst need to accomplish these tasks successfully?”
Defining Competencies
There are generally two distinct types of competencies. Both categories should
describe employees’ behaviors—descriptions of how they might be expected
to perform given a particular task at hand. First, there are those competencies
that address organizational success. Such competencies are common across
many jobs and demonstrate the key behaviors required for success regardless
of position within the organization. For example, leadership, communication
skills, vision, innovation and collaboration might be considered organizational
competencies. All employees, regardless of function or role, must be
accomplished in these areas in order to contribute to the success of the overall
organization.
Second, there are those competencies that address success for a certain job.
Functional competencies refer to an individual’s ability to perform a given
set of activities based on their particular job. These functional competencies
are specific and necessary to an individual’s success. For instance, functional
competencies for a network administrator might include the ability to install a
new server or troubleshoot network performance issues. These competencies
are required for successful performance.
“Functional competencies refer
to an individual’s ability to
perform a given set of activities
based on their particular job.”
© ESI International, Inc. 2006. All rights reserved.
7Eight Things Your Business Analysts Need to Know
Setting Concrete Competencies
To combat this substantial issue of the undefined business analysis role, eight
essential competencies have been determined. Additionally, to aid in the
organizational implementation of these competencies, this paper introduces
the “Business Analyst Competency Model” as illustrated in Figure 3. This
model, which breaks down each competency as conceptual, logical, physical
or contextual, takes into consideration all tasks and activities performed by a
business analyst. The model takes a fairly traditional approach, basing divisions
on research conducted in countless organizations. The competency model is
a practical and straightforward aid to apply solid guidelines for the business
analysts in your organization—at all levels. The model is, fundamentally, a
description of a competent business analyst.
By definition, a competency is made up of three components: knowledge,
skill and ability. Knowledge considers “what is being measured?” Skill looks at
“how is it done?” Ability, lastly, examines “to what degree can it be done?” Each
of the competencies outlined in this paper is broken down into these three
components.
ITFluency
CreatingtheBRD
Testing
End-UserSupport
Object-Oriented Analysis
StructuredAnalysis
Eliciting Requirements
Business Process Re-Engineering
PHY
S
IC
AL LO
G
I
C
A
L
CONTE
X
TUAL CONC
E
P
TUAL
Figure 3: Business Analyst Competency Model
© ESI International, Inc. 2006. All rights reserved.
8Eight Things Your Business Analysts Need to Know
Clearly there are different responsibilities during each stage of a business
analyst’s career. For each of the eight competencies, this paper designates
the specific tasks a competent business analyst should perform at the senior,
intermediate and junior levels.
For the purpose of this paper, we have defined typical levels of ability as follows:
Additionally, it is important to take into consideration the level of ability to
which each business analyst performs. Very often it is assumed that all business
analysts—junior, intermediate or senior—should be performing at 100 percent
accuracy. Very rarely is this the case. To combat this misconception, we have
included an “ability” column for each competency. This simply sets a guideline
for those in each role to strive for in terms of accuracy.
Table 1: Business Analyst Levels and Proficiency
Typical Level
Senior
Intermediate
Junior
Degrees of Proficiency
Can do complex versions of task(s)
at hand with minimal coaching
Can do simple versions of task(s)
at hand with some coaching
Can perform tasks with help
© ESI International, Inc. 2006. All rights reserved.
9Eight Things Your Business Analysts Need to Know
Competency #1: Eliciting Requirements
On the most basic level, we know that a big part of a business analyst’s job is
to gather and document user requirements. Requirements can be conditions,
functionality, products or services for internal or external use. They are needed
by a user or client to solve a business problem or achieve a business activity,
and they are tied to the needs of business, rather than the constraints imposed
by technology. This means that the business analyst’s job has more to do
with identifying the desired results than the actions or resources required
to reach these results—that’s someone else’s job. The purpose of gathering
requirements is to provide an understanding of the problem or opportunity
before trying to propose the solution.
The techniques necessary to capture requirements are often referred to as
elicitation. Depending on the level of competency an individual demonstrates,
the types of techniques should be considered carefully when applying them
to any given situation. Table 2 illustrates the ideal knowledge, skill and ability
levels of business analysts for this particular competency.
Table 2: Competency Breakdown for Eliciting Requirements
Knowledge
What is being measured?
Anticipates, quantifies and
resolves problems and
issues with requirements
Senior
Skill
How is it being done?
� Identification of source
of requirements
� Risk management
� Development of
priority matrix
Ability
To what degree can it be done?
Within 5-10% accuracy
Intermediate
Junior
Employs facilitation
techniques in discussing
requirements with clients and
users
Uses specific group and
collaborative methods for
collecting requirements
Assists in requirements
gathering using a variety of
basic techniques
� Brainstorming
� JAD sessions
� RAD sessions
� Nominal group technique
� Structured walkthrough
� Interviews
� Surveys
� Historical data
Within 10-25% accuracy
Within 25-50% accuracy
“Requirements can be
conditions, functionality,
products or services for
internal or external use.”
© ESI International, Inc. 2006. All rights reserved.
10Eight Things Your Business Analysts Need to Know
Competency #2: Creating the Business
Requirements Document
A business requirements document (BRD) is an exhaustive written study of all
facets of regulatory, business, user, functional or non-functional requirements
and provides insight into both the as-is and to-be states of the business area.
It is a detailed profile of primary and secondary user communities. It comes
directly from the requirements the business analyst has already gathered. It
only makes sense, then, that the BRD should be written by the business analyst.
After the document is completed, the business analyst and the client or user
meet for a formal review and for approval of the BRD. The document is then
shared with the rest of the development team, including the project manager.
In creating the BRD, it is very likely that a senior business analyst would be
largely responsible for defining not only the various sources for requirements,
but also the placement and relevancy of these requirements. For example,
senior business analysts may identify such items as the project charter and
vision, business case, requirements work plan, vendor request documents and,
potentially, business contract documents. They may also work with the project
manager to define the project and product scope. Any requested changes
to any area of the BRD—before or after work has begun—must be carefully
reviewed by the senior business analyst. An intermediate business analyst,
however, might work with the client or user, discussing changes necessary
to gain approval. When it comes to the BRD, the junior business analyst is
expected to assist the intermediate and senior business analysts with the
organization and the actual documentation.
Table 3: Competency Breakdown for Creating the Business Requirements Document
Knowledge
What is being measured?
Publishes, distributes and
ensures sign-off of the
business requirements
document
Performs impact analysis on
requested changes to
requirements
Senior
Skill
How is it being done?
� Risk management
� Development of priority
matrix
� Formal reviews with
client acceptor
Ability
To what degree can it be done?
Within 5-10% accuracy
Intermediate
Junior
Controls changes to the
requirements baseline
Analyzes, classifies and
documents requirements
� Documentation and
analysis through a
formalized change
request
� Using the BRD outline to
manage the requirements
according to their source
Within 10-25% accuracy
Within 25-50% accuracy
© ESI International, Inc. 2006. All rights reserved.
11Eight Things Your Business Analysts Need to Know
Competency #3: Structured Analysis
Structured analysis refers to the art of modeling. In business analysis, modeling
is used to support and enhance text-based requirements, help identify and
validate requirements, document and communicate requirements and, finally,
organize information into coherent ideas. The most common types of business
analysis models include business models, process models, data models and
workflow models.
When it comes to the modeling competency, junior business analysts should
be able to easily identify a variety of modeling techniques. They should also
be able to create simple models based on information given to them by their
intermediate or senior counterparts. For example, a junior business analyst
might be expected to create such diagrams as organizational charts or business
interaction models. An intermediate business analyst may begin to develop
such models as entity relationship diagrams, functional decomposition
diagrams and the ever popular use case models.
The senior business analyst takes the models from the junior and intermediate
business analysts and examines the as-is state in order to create the ideal to-be
state. When looking at models created by the intermediate business analyst,
the senior team member is looking to find problems and opportunities that will
change the process or the deliverable.
Table 4: Competency Breakdown for Structured Analysis
Knowledge
What is being measured?
Analyzes and determines
problem/opportunity/
solution resolution
Senior
Skill
How is it being done?
� Identification of "as-is"
state vs. "to-be" state
using a variety of
applicable tools and
techniques depending
on the project and its
complexity
Ability
To what degree can it be done?
Within 5-10% accuracy
Intermediate
Junior
Communicates with
clients using data and
process models to clarify
and validate requirements
Identifies and clarifies
requirements using basic
conceptual and logical
process/data modeling
techniques
� Use-case diagramming
� ERD diagramming
� Functional
decomposition
� Data flow
� Business process
� Data flow
� Workflow
� Object oriented
Within 10-25% accuracy
Within 25-50% accuracy
“The most common types
of business analysis models
include business models,
process models, data models
and workflow models.”
© ESI International, Inc. 2006. All rights reserved.
12Eight Things Your Business Analysts Need to Know
Competency #4: Object-Oriented Analysis
Within a business context, an object model is an abstract representation
of the process and data requirements of a system, based on decomposing
the system into units called objects. Each object encompasses the data and
operational characteristics of one business item. Object-oriented analysis is
particularly important to business analysts as a business planning tool to depict
the hierarchy of business functions, processes and sub-processes within an
organization.
Generally speaking, individuals embarking on the quest to master object-
oriented analysis should be competent in structured analysis. Object-oriented
analysis requires a clear understanding of both the process and data modeling
techniques, including functional decomposition.
It’s likely that junior business analysts may get involved in the functional
decomposition of the as-is state of a project, including, perhaps, forming a
simple model of this state. From this model, an intermediate business analyst
may consider developing activity diagrams to further clarify requirements.
With diagrams in hand, a senior business analyst is likely to begin designing
the to-be state during one-on-one interviews, group interviews and the
documentation process. Essentially, each of these processes involved in object-
oriented modeling ensures that the requirements are properly communicated
to the developers and administrators.
Table 5: Competency Breakdown for Object-Oriented Analysis
Knowledge
What is being measured?
Communicates with the
technical team using object-
oriented analysis models and
communicates with clients
using simplified object-
oriented analysis models to
clarify requirements
Senior
Skill
How is it being done?
� Facilitation of one-on-
one interviews
� Facilitation of group
interviews to help
develop a consensus
about the requirements
� Documentation to
communicate with the
developers
Ability
To what degree can it be done?
Within 5-10% accuracy
Intermediate
Junior
Uses basic object-oriented
analysis modeling
techniques to identify
requirements
Uses object-oriented
analysis tools at an
introductory level
� Activity diagrams
� Use case diagrams
� Decision tables and
trees
� Functional decomposition
diagrams
� Development of entity
relationship diagrams
(static diagrams)
� Simple use case diagrams
Within 10-25% accuracy
Within 25-50% accuracy
“Object-oriented analysis
requires a clear understanding
of both the process and data
modeling techniques, including
functional decomposition.”
© ESI International, Inc. 2006. All rights reserved.
13Eight Things Your Business Analysts Need to Know
Competency #5: Testing
When it comes to testing in business analysis, the first thing to understand is
that the term applies to several different levels of work. First, business analysts
are looking to test the products to validate whether the requirements have
been met. They develop test scripts, test plans and test scenarios based on the
as-is state as well as the to-be models. Testing requirements should be done
in iterative stages to ensure that, by following the requirements, the desired
deliverables will be met.
The second level of testing is more familiar. This is testing the functionality of
the physical product—testing lines of code and user testing of graphical appeal,
speed and functionality. Black box testing and glassbox testing fall into this
category. As with the first type of testing, this testing also makes sure we reach
the desired state, but it is based on user acceptance.
In a testing situation, junior business analysts may not always be heavily
involved. Their role is often to assist. The intermediate business analyst might
take on the role of designing test cases and reviewing some or all of the results
from these scenarios. The senior business analyst acts as an overseer in the
testing phase. His or her job is to see the project to fruition and manage quality.
Table 6: Competency Breakdown for Testing
Knowledge
What is being measured?
Monitors user acceptance
testing and responses to
problems
Senior
Skill
How is it being done?
� Using test plans to
ensure that all business
requirements and their
integrity are maintained
through to user
acceptance testing
Ability
To what degree can it be done?
Within 5-10% accuracy
Intermediate
Junior
Designs user acceptance
test plans and test cases
Demonstrates knowledge
of test strategies, plans and
execution
� Using ERD diagrams
and use case diagrams
to develop test plans
� Setting up a
requirements coverage
matrix
Within 10-25% accuracy
Within 25-50% accuracy
Black Box Testing:
Black box is, essentially, the
“checks and balances” of
testing. In this process, the
structure of the item being
tested is not visible. Testing
is done on the requirements
or objectives determined by
the business need. Black box
testing shows us what the
deliverables are supposed to
accomplish and to what extent
they canbe accomplished.
For example, if we were
creating a Travel and Expense
Management Tool, black box
testing might look at the
amount of time required to a)
fill in a report, b) have a report
approved or rejected, and c) be
reimbursed. Black box testing
in this scenario would not look
at the intricacies of the actual
system—only the results.
See the side bar on page 14
to read about the opposite
of black box testing—glass
box testing.
© ESI International, Inc. 2006. All rights reserved.
14Eight Things Your Business Analysts Need to Know
Competency #6: End-User Support
It’s a common misconception among project teams that the project ends
when the deliverable is completed. Not so. Business analysts, specifically,
should be aware that end-user support after the product is delivered is almost
as important. It should be stated, too, that the role of the business analyst
is not to act on behalf of the training team, but to complement the training
team’s efforts with their knowledge of the business requirements. Much of
the documentation created in the process of identifying the deliverables
is invaluable to the development of training needs and end user support,
including user manuals and reference materials.
Ideally, a junior business analyst may work with end-users in the post-
deployment phase to clarify any high-level questions that need to be
addressed. An intermediate business analyst would work closely with training
managers and facilitators to define requirements to deliver the training
supporting the business needs. A senior business analyst would assess and
evaluate all feedback from his or her team members, those individuals involved
in the deployment of the product and any pilot or “test” groups to ensure
that the requirements necessary to correct any issues are addressed in future
releases, iterations or versions of the product.
Glass Box Testing:
The opposite of black box
testing is glass box testing.
This type of testing allows
the business analyst to see
“under the hood” of the
product or deliverable. In
an IT-related project, such
as software development,
glass box testing would allow
for a view and assessment
of the design, code and
architecture of information.
For example, in using the
same Travel and Expense
Management Tool discussed
on page 13, glass box testing
would examine such details as:
Does the tool integrate
with our payroll system?
Does it integrate well with
our credit card vendors?
Has the tool taken into
consideration the currency
exchange aspect?
Is the downloading and
uploading of
information
automated?
Is the execution
seamless and
performed in a
timely fashion?
Does the code
in place ensure
that these tasks
are completed?
•
•
•
•
•
•
Table 7: Competency Breakdown for End-User Support
Knowledge
What is being measured?
Collects and analyzes
feedback from end-users to
create requirements for next
release of solution
Senior
Skill
How is it being done?
� Analysis of help desk
requests
� Reviews via surveys,
interviews and audits
Ability
To what degree can it be done?
Within 5-10% accuracy
Intermediate
Junior
Develops end-user
training content for use in
instructor-lead and
technology-based training
Provides day-to-day
support of end users
� Working with training
managers and
documented
requirements
� Help desk support
Within 10-25% accuracy
Within 25-50% accuracy
© ESI International, Inc. 2006. All rights reserved.
15Eight Things Your Business Analysts Need to Know
Competency #7: IT Fluency
How much knowledge is enough for a business analyst? With regards to IT
knowledge, this has been a long-standing debate. In reality, the answer is as
varied as it would be for any other professional. The amount of necessary IT
knowledge is truly based on the project. The IT background for a competent
business analyst depends entirely on the environment and possibly the industry
vertical he or she works within. It’s important to remember that IT fluency is just
one of eight competencies that a successful business analyst must have. Also,
just because an individual is fluent in a given technology does not automatically
qualify him or her as a business analyst. This is a mistake many organizations
are guilty of making. In theory, a great business analyst should have the
wherewithal to understand which resources would be appropriate to help
define and validate both requirements and specifications within a given project
and product scope.
In examining the different stages of a business analyst, a person at the junior
level would need to have a clear understanding of the IT products and tools
necessary for the business to function. An intermediate business analyst may
understand interconnectivity and relationships between the tools, and perhaps,
system architecture and information architecture. A senior business analyst
will demonstrate his or her IT fluency across an industry vertical. He or she may
also have a very clear understanding of how different IT products are related,
interface with and connect to each other, as well as the positive or negative
impact they may have in a given situation.
Table 8: Competency Breakdown for IT Fluency
Knowledge
What is being measured?
Understands the societal
impact of information and
information technology
Senior
Skill
How is it being done?
� Evaluating and assessing
the impact of one
solution and product on
the rest of the
organization
Ability
To what degree can it be done?
Within 5-10% accuracy
Intermediate
Junior
Displays to peers,
technology staff and
clients a basic
understanding of IT
concepts
Demonstrates basic
understanding of
technology and
applications within own
enterprise
� Working with
developers and
administrators to
develop as-is and to-be
states of products from
a code and systems
perspective, including
anything from security
layers to integration
with other systems
� Structured walkthroughs
at an end-user level —
specifically, familiarity
with the products
interface, and possibly
some administrative
aspects of the product
Within 10-25% accuracy
Within 25-50% accuracy
“Just because an individual is
fluent in a given technology
does not automatically
qualify him or her as a
business analyst.”
© ESI International, Inc. 2006. All rights reserved.
16Eight Things Your Business Analysts Need to Know
Competency #8: Business Process Re-Engineering
Considered the “big-picture thinking” of business analysis, business process
re-engineering (BPR) is a rapidly growing part of business analysis. In fact,
lately many companies have been grouping business analysts around this
specialty and developing teams of process analysts. This is the phase in which
business analysts seek out both problems and opportunities. BPR uses a variety
of modeling techniques in order to look at the bigger picture, but still think
tactically.
BPR is a competency in which all levels of business analysts must be highly
skilled. The junior business analyst’s responsibility is often to identify, using
various modeling techniques, possible areas of improvement. The intermediate
business analyst might have the job of walking the client or user through
each step of the process, examining individual tasks that could potentially be
improved. The senior business analyst begins to actually make suggestions for
improvements.
Table 9: Competency Breakdown for Business Process Re-Engineering
Knowledge
What is being measured?
Recommends improvements
to business processes
Senior
Skill
How is it being done?
� Ensuring business goals
are met by considering
all tangible and
intangible costs
Ability
To what degree can it be done?
Within 5-10% accuracy
Intermediate
Junior
Participates in workflow
analysis and other
business process analysis
to identify and clarify
requirements
Identifies which business
modeling tools are
appropriate given the task
at hand
� Conducting structured
walkthroughs with
client using workflow
diagrams
� Use-case modeling
techniques
� Workflow modeling
� Business process
modeling
Within 10-25% accuracy
Within 25-50% accuracy
“BPR is a competency in which
all levels of business analysts
must be highly skilled.”
© ESI International, Inc. 2006. All rights reserved.
17Eight Things Your Business Analysts Need to Know
Developing the Eight Competencies
to Improve Your Organization
In the beginning of this paper (Figure 1), we discussed the key challenges
organizations face in translating user needs into systems specifications. Any of
these challenges can ultimately lead to project failure. After outlining the eight
critical business analysis competencies, however, we can begin to see how
these challenges can be combated. As your business analysts become more and
more capable in well-defined roles, they are better armed to overcome such
recurring challenges.
For instance, poor requirements (50%) were cited as the biggest challenge to
organizations. As business analysts at the junior, intermediate and senior levels
begin to understand their role in the elicitation process, the work performed is
inevitably more centered and accurate. Inadequate risk management (17%) was
cited as the second most-common challenge. Several competencies—creating
the BRD, object-oriented analysis and structured analysis—will help business
analysts perform more effective risk management. IT fluency and business-
process re-engineering can help improved project scope control, which was
cited by 15% of respondents as a key challenge. The challenges associated with
communication problems (14%) and the lack of qualified resources (3%) will
also lessen once the business analysts in your organization are better versed in
the standards and best practices of their specific job functions. Ultimately, all
of these challenges become, simply, daily tasks that your business analysts are
prepared to handle as experts in their field.
Though comprehensive, the competency model alone is not enough to
improve business analysis practices within your organization. Implementing
these competencies as organizational guidelines is essential. Once this is
accomplished, organizations must then develop the competencies in their
individual business analysts.
More ways to add to
your business analysis
repertoire:
In addition to the eight
competencies discussed in
this paper, certain ways of
thinking are crucial to the job:
Strategic (Vision)—A good
business analyst should be
able to clearly demonstrate
the idea of vision.
Systems (Sustainable
Innovation)—A good
business analyst should
constantly be thinking
innovatively: How are we
going to do it better? How
can we be more creative
with this solution?
Self (Communication)—
Business analysts can’t
get far without excellent
communication skills.
Social (Collaboration)—
The center of the business
analyst’s job is really the
idea of collaboration.
As such, they must have
the ability to help two
groups work together to
accomplish a common goal.
•
•
•
•
© ESI International, Inc. 2006. All rights reserved.
18Eight Things Your Business Analysts Need to Know
The first step in ensuring that your organization’s business analysts have the
knowledge, skills and abilities necessary for success is to develop job functions
and detailed descriptions based on this competency model. After these
have been determined and approved, it’s essential that organizations “take
inventory,” so to speak, of the competencies their business analysts already
possess. There are specific assessments to test these competencies. Such tools
will establish the knowledge level of individuals in each competency area and
of the team as a whole. If knowledge isn’t baselined, improvement will be
virtually impossible to track. The competency model is an ideal reference point
for such an assessment.
After you have established the business analysis knowledge and ability
levels within your organization, you must implement training to improve any
competencies that may be lacking.
The competency model can also serve as a validation tool for such training.
It can be used to ensure that the performance improvement program is
comprehensive, and that no behaviors or competencies are missed.
However, until business analysis competencies are dramatically improved
within organizations, we will continue to see the same problems we’ve grown
so accustomed to seeing. Keeping in mind the eight competencies, as well as all
of the people, processes, tools and technology available to your organization,
will put you on the path to better business analysis and, ultimately, more
successful projects.
Next steps:
Develop and document
job functions
Assess/baseline knowledge
Provide the training
your business analysts
need in order to develop
the competencies
outlined in this paper
1)
2)
3)
© ESI International, Inc. 2006. All rights reserved.
19Eight Things Your Business Analysts Need to Know
The ESI Solution
ESI International can help you improve the capabilities of your business
analysts. We understand the unique needs of organizations like yours working
to define the business analyst role. We have developed a skills-based Business
Analysis curriculum that provides comprehensive, actionable training in each
of the competencies described in this paper. Our academic partner, The George
Washington University, has endorsed this curriculum by awarding a Professional
Certificate in Business Analysis, and ESI has taken the additional step of
conferring the prestigious Certified Business Analyst (CBA) credential to those
who complete the program. Additionally, ESI offers BAAppraise®, a powerful
online tool for measuring individual and team knowledge of business analysis
and establishing a baseline for improvement before training.
ESI, the leading provider of business analysis, project management and
contract management training, has helped some of the world’s most successful
companies build talent and drive results. ESI has served Fortune Global 500
companies and nearly every major U.S. government agency. Since 1981, more
than 800,000 professionals from 100 countries have benefited from ESI’s
performance improvement programs.
Glenn R. Brûlé, an expert in the business analysis industry, was instrumental in
the production of this paper.
For more information about how ESI can
help your organization, call (877) 766-3337
or visit our Web site at www.esi-intl.com.
© ESI International, Inc. 2006. All rights reserved.
20Eight Things Your Business Analysts Need to Know
References
“Latest Standish Group CHAOS Report Shows Project Success Rates Have
Improved By 50%.” Press Release. The Standish Group: 25 March 2003.
“Managing Risk Using Business Analysis: Implementing Best Practices to Reduce
Project Risk.” Participant survey during online presentation.
ESI International: 22 March 2005
<http://www.esi-intl.com/public/news/20050322WebinarMangingRisk.
asp>.
“Guide to the IIBA Body of Knowledge: An Outline—Release 1.0, Version 1.”
www.iiba.com. 2005. International Institute of Business Analysis.
10 November 2005
<http://www.iiba.com/pdf/bok/BOKRelease1.0Version1.0.pdf>.

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Ba competencies white-paper-2-06[1]

  • 1. www.esi-intl.com (877)766-3337 Eight Things Your Business Analysts Need to Know A Practical Approach to Recognizing and Improving Competencies An ESI International White Paper
  • 2. © ESI International, Inc. 2006. All rights reserved. 2Eight Things Your Business Analysts Need to Know Table of Contents Abstract ............................................................................................................................................3 Introduction....................................................................................................................................4 Why Are Projects Failing?...........................................................................................................4 The Role of the Business Analyst.............................................................................................5 Defining Competencies..............................................................................................................6 Setting Concrete Competencies..............................................................................................7 Competency #1: Eliciting Requirements .................................................................................9 Competency #2: Creating the Business Requirements Document.....................................10 Competency #3: Structured Analysis.....................................................................................11 Competency #4: Object-Oriented Analysis...........................................................................12 Competency #5: Testing..........................................................................................................13 Competency #6: End-User Support.......................................................................................14 Competency #7: IT Fluency.....................................................................................................15 Competency #8: Business Process Re-Engineering..............................................................16 Developing the Eight Competencies to Improve Your Organization......................17 The ESI Solution...........................................................................................................................19 References .................................................................................................................................... 20
  • 3. © ESI International, Inc. 2006. All rights reserved. 3Eight Things Your Business Analysts Need to Know Abstract Each year, organizations across the globe face astronomical project failure rates, often wasting millions of dollars per failed project. This paper examines the roots of project failure and centers in on the elusive, often undefined role of the business analyst. In response to research showing that many organizations have not set concrete requirements and job descriptions for their business analysts, this paper provides eight essential competencies necessary for success in this job function. It explores the essential skills, knowledge and abilities inherent to each competency and during each stage of a business analyst’s career. The paper concludes with practical tips for using these competencies as guidelines for improving the efficiency of business analysts within your organization.
  • 4. © ESI International, Inc. 2006. All rights reserved. 4Eight Things Your Business Analysts Need to Know Introduction A Standish CHAOS Chronicles report states that only 28% of software projects were expected to finish on time and on budget. Only 52% of completed projects met their proposed functionality. Based on a study of more than 13,000 U.S. projects, the Standish Group reported that successful projects made up “just over a third or 34 percent of all projects….” Estimates of the lost value for these projects in 2002 was $38 billion, with another $17 billion in cost overruns, for a total project waste of $55 billion against $255 billion total in project spending. Unfortunately, poor project performance has become a way of life. Failure statistics like those above have ceased to even shock us. Most organizations have come to accept project failure—along with a loss of money, time and functionality—as a given. With constantly improving technology, exponential resources and a concrete project management methodology, how does this continue to happen? It’s time for our questioning to go beyond, “Are projects failing?” Now it’s time to ask why. Why Are Projects Failing? The data in Figure 1 was collected in an online poll of 2,000 business professionals. It asked the question, “What are the key challenges in translating user needs into systems specifications for mission critical projects?” “Most organizations have come to accept project failure—along with a loss of money, time and functionality—as a given.” Figure 1: Key Challenges in Translating User Needs into Systems Specifications Source: ESI International survey of 2,000 business professionals, 2005. Other 1% Lack of qualified resources 3% Communication problems 14% Inadequate risk management 17% Poor scope control 15% Poor requirements definition 50%
  • 5. © ESI International, Inc. 2006. All rights reserved. 5Eight Things Your Business Analysts Need to Know If a project fails, it’s often assumed to be the project manager’s fault. More and more, however, research is showing that this is not the case. In the survey mentioned on page 4, an overwhelming 50% of respondents cited poor requirements definition as their biggest challenge, thus raising a new question. When projects fail, most organizations are quick to blame the project manager. But what about the business analysts? What role do they play? More importantly, what role should they play? The Role of the Business Analyst In many organizations, the competencies necessary for a successful business analyst simply haven’t been differentiated from those of a subject matter expert (SME) or a project manager. And yet each of these three positions have very distinct responsibilities during the project life cycle. It’s no wonder so many projects are failing. How can a business analyst—or anyone in any job—be expected to perform at a top level when his or her required competencies have not been clearly defined? The answer is simple: They can’t. Yet organizations worldwide are operating without defined competencies for their business analysts. For many organizations, in fact, even the title of the person performing “business analysis duties” can vary widely. According to a recent poll, there are several titles used for those performing the “business analyst” role, as illustrated in Figure 2. Figure 2: Alternative“Business Analyst”Titles Source: ESI International survey of 2,000 business professionals, 2005. N/A 2% Other 5% Systems/Solutions Architect 11% Systems Engineer/Designer 5% Project Manager 28% Business Analyst 49%
  • 6. © ESI International, Inc. 2006. All rights reserved. 6Eight Things Your Business Analysts Need to Know We know what business analysts do—essentially. At the most basic level, a business analyst acts as a translator or liaison between the customer or user and the IT person or group attempting to meet this user’s needs. But what about the specifics? According to the International Institute of Business Analysis, business analysts are “responsible for identifying the business needs of their clients and stakeholders, to determine solutions to business problems.” As a translator, he or she “elicits, analyzes, validates and documents business, organizational and/ or operational requirements” (www.iiba.com). Additionally, what processes are business analysts using to elicit, analyze, validate and document these requirements? Most organizations do not have set processes in place. And if they do, one needs to ask, “What competencies does a business analyst need to accomplish these tasks successfully?” Defining Competencies There are generally two distinct types of competencies. Both categories should describe employees’ behaviors—descriptions of how they might be expected to perform given a particular task at hand. First, there are those competencies that address organizational success. Such competencies are common across many jobs and demonstrate the key behaviors required for success regardless of position within the organization. For example, leadership, communication skills, vision, innovation and collaboration might be considered organizational competencies. All employees, regardless of function or role, must be accomplished in these areas in order to contribute to the success of the overall organization. Second, there are those competencies that address success for a certain job. Functional competencies refer to an individual’s ability to perform a given set of activities based on their particular job. These functional competencies are specific and necessary to an individual’s success. For instance, functional competencies for a network administrator might include the ability to install a new server or troubleshoot network performance issues. These competencies are required for successful performance. “Functional competencies refer to an individual’s ability to perform a given set of activities based on their particular job.”
  • 7. © ESI International, Inc. 2006. All rights reserved. 7Eight Things Your Business Analysts Need to Know Setting Concrete Competencies To combat this substantial issue of the undefined business analysis role, eight essential competencies have been determined. Additionally, to aid in the organizational implementation of these competencies, this paper introduces the “Business Analyst Competency Model” as illustrated in Figure 3. This model, which breaks down each competency as conceptual, logical, physical or contextual, takes into consideration all tasks and activities performed by a business analyst. The model takes a fairly traditional approach, basing divisions on research conducted in countless organizations. The competency model is a practical and straightforward aid to apply solid guidelines for the business analysts in your organization—at all levels. The model is, fundamentally, a description of a competent business analyst. By definition, a competency is made up of three components: knowledge, skill and ability. Knowledge considers “what is being measured?” Skill looks at “how is it done?” Ability, lastly, examines “to what degree can it be done?” Each of the competencies outlined in this paper is broken down into these three components. ITFluency CreatingtheBRD Testing End-UserSupport Object-Oriented Analysis StructuredAnalysis Eliciting Requirements Business Process Re-Engineering PHY S IC AL LO G I C A L CONTE X TUAL CONC E P TUAL Figure 3: Business Analyst Competency Model
  • 8. © ESI International, Inc. 2006. All rights reserved. 8Eight Things Your Business Analysts Need to Know Clearly there are different responsibilities during each stage of a business analyst’s career. For each of the eight competencies, this paper designates the specific tasks a competent business analyst should perform at the senior, intermediate and junior levels. For the purpose of this paper, we have defined typical levels of ability as follows: Additionally, it is important to take into consideration the level of ability to which each business analyst performs. Very often it is assumed that all business analysts—junior, intermediate or senior—should be performing at 100 percent accuracy. Very rarely is this the case. To combat this misconception, we have included an “ability” column for each competency. This simply sets a guideline for those in each role to strive for in terms of accuracy. Table 1: Business Analyst Levels and Proficiency Typical Level Senior Intermediate Junior Degrees of Proficiency Can do complex versions of task(s) at hand with minimal coaching Can do simple versions of task(s) at hand with some coaching Can perform tasks with help
  • 9. © ESI International, Inc. 2006. All rights reserved. 9Eight Things Your Business Analysts Need to Know Competency #1: Eliciting Requirements On the most basic level, we know that a big part of a business analyst’s job is to gather and document user requirements. Requirements can be conditions, functionality, products or services for internal or external use. They are needed by a user or client to solve a business problem or achieve a business activity, and they are tied to the needs of business, rather than the constraints imposed by technology. This means that the business analyst’s job has more to do with identifying the desired results than the actions or resources required to reach these results—that’s someone else’s job. The purpose of gathering requirements is to provide an understanding of the problem or opportunity before trying to propose the solution. The techniques necessary to capture requirements are often referred to as elicitation. Depending on the level of competency an individual demonstrates, the types of techniques should be considered carefully when applying them to any given situation. Table 2 illustrates the ideal knowledge, skill and ability levels of business analysts for this particular competency. Table 2: Competency Breakdown for Eliciting Requirements Knowledge What is being measured? Anticipates, quantifies and resolves problems and issues with requirements Senior Skill How is it being done? � Identification of source of requirements � Risk management � Development of priority matrix Ability To what degree can it be done? Within 5-10% accuracy Intermediate Junior Employs facilitation techniques in discussing requirements with clients and users Uses specific group and collaborative methods for collecting requirements Assists in requirements gathering using a variety of basic techniques � Brainstorming � JAD sessions � RAD sessions � Nominal group technique � Structured walkthrough � Interviews � Surveys � Historical data Within 10-25% accuracy Within 25-50% accuracy “Requirements can be conditions, functionality, products or services for internal or external use.”
  • 10. © ESI International, Inc. 2006. All rights reserved. 10Eight Things Your Business Analysts Need to Know Competency #2: Creating the Business Requirements Document A business requirements document (BRD) is an exhaustive written study of all facets of regulatory, business, user, functional or non-functional requirements and provides insight into both the as-is and to-be states of the business area. It is a detailed profile of primary and secondary user communities. It comes directly from the requirements the business analyst has already gathered. It only makes sense, then, that the BRD should be written by the business analyst. After the document is completed, the business analyst and the client or user meet for a formal review and for approval of the BRD. The document is then shared with the rest of the development team, including the project manager. In creating the BRD, it is very likely that a senior business analyst would be largely responsible for defining not only the various sources for requirements, but also the placement and relevancy of these requirements. For example, senior business analysts may identify such items as the project charter and vision, business case, requirements work plan, vendor request documents and, potentially, business contract documents. They may also work with the project manager to define the project and product scope. Any requested changes to any area of the BRD—before or after work has begun—must be carefully reviewed by the senior business analyst. An intermediate business analyst, however, might work with the client or user, discussing changes necessary to gain approval. When it comes to the BRD, the junior business analyst is expected to assist the intermediate and senior business analysts with the organization and the actual documentation. Table 3: Competency Breakdown for Creating the Business Requirements Document Knowledge What is being measured? Publishes, distributes and ensures sign-off of the business requirements document Performs impact analysis on requested changes to requirements Senior Skill How is it being done? � Risk management � Development of priority matrix � Formal reviews with client acceptor Ability To what degree can it be done? Within 5-10% accuracy Intermediate Junior Controls changes to the requirements baseline Analyzes, classifies and documents requirements � Documentation and analysis through a formalized change request � Using the BRD outline to manage the requirements according to their source Within 10-25% accuracy Within 25-50% accuracy
  • 11. © ESI International, Inc. 2006. All rights reserved. 11Eight Things Your Business Analysts Need to Know Competency #3: Structured Analysis Structured analysis refers to the art of modeling. In business analysis, modeling is used to support and enhance text-based requirements, help identify and validate requirements, document and communicate requirements and, finally, organize information into coherent ideas. The most common types of business analysis models include business models, process models, data models and workflow models. When it comes to the modeling competency, junior business analysts should be able to easily identify a variety of modeling techniques. They should also be able to create simple models based on information given to them by their intermediate or senior counterparts. For example, a junior business analyst might be expected to create such diagrams as organizational charts or business interaction models. An intermediate business analyst may begin to develop such models as entity relationship diagrams, functional decomposition diagrams and the ever popular use case models. The senior business analyst takes the models from the junior and intermediate business analysts and examines the as-is state in order to create the ideal to-be state. When looking at models created by the intermediate business analyst, the senior team member is looking to find problems and opportunities that will change the process or the deliverable. Table 4: Competency Breakdown for Structured Analysis Knowledge What is being measured? Analyzes and determines problem/opportunity/ solution resolution Senior Skill How is it being done? � Identification of "as-is" state vs. "to-be" state using a variety of applicable tools and techniques depending on the project and its complexity Ability To what degree can it be done? Within 5-10% accuracy Intermediate Junior Communicates with clients using data and process models to clarify and validate requirements Identifies and clarifies requirements using basic conceptual and logical process/data modeling techniques � Use-case diagramming � ERD diagramming � Functional decomposition � Data flow � Business process � Data flow � Workflow � Object oriented Within 10-25% accuracy Within 25-50% accuracy “The most common types of business analysis models include business models, process models, data models and workflow models.”
  • 12. © ESI International, Inc. 2006. All rights reserved. 12Eight Things Your Business Analysts Need to Know Competency #4: Object-Oriented Analysis Within a business context, an object model is an abstract representation of the process and data requirements of a system, based on decomposing the system into units called objects. Each object encompasses the data and operational characteristics of one business item. Object-oriented analysis is particularly important to business analysts as a business planning tool to depict the hierarchy of business functions, processes and sub-processes within an organization. Generally speaking, individuals embarking on the quest to master object- oriented analysis should be competent in structured analysis. Object-oriented analysis requires a clear understanding of both the process and data modeling techniques, including functional decomposition. It’s likely that junior business analysts may get involved in the functional decomposition of the as-is state of a project, including, perhaps, forming a simple model of this state. From this model, an intermediate business analyst may consider developing activity diagrams to further clarify requirements. With diagrams in hand, a senior business analyst is likely to begin designing the to-be state during one-on-one interviews, group interviews and the documentation process. Essentially, each of these processes involved in object- oriented modeling ensures that the requirements are properly communicated to the developers and administrators. Table 5: Competency Breakdown for Object-Oriented Analysis Knowledge What is being measured? Communicates with the technical team using object- oriented analysis models and communicates with clients using simplified object- oriented analysis models to clarify requirements Senior Skill How is it being done? � Facilitation of one-on- one interviews � Facilitation of group interviews to help develop a consensus about the requirements � Documentation to communicate with the developers Ability To what degree can it be done? Within 5-10% accuracy Intermediate Junior Uses basic object-oriented analysis modeling techniques to identify requirements Uses object-oriented analysis tools at an introductory level � Activity diagrams � Use case diagrams � Decision tables and trees � Functional decomposition diagrams � Development of entity relationship diagrams (static diagrams) � Simple use case diagrams Within 10-25% accuracy Within 25-50% accuracy “Object-oriented analysis requires a clear understanding of both the process and data modeling techniques, including functional decomposition.”
  • 13. © ESI International, Inc. 2006. All rights reserved. 13Eight Things Your Business Analysts Need to Know Competency #5: Testing When it comes to testing in business analysis, the first thing to understand is that the term applies to several different levels of work. First, business analysts are looking to test the products to validate whether the requirements have been met. They develop test scripts, test plans and test scenarios based on the as-is state as well as the to-be models. Testing requirements should be done in iterative stages to ensure that, by following the requirements, the desired deliverables will be met. The second level of testing is more familiar. This is testing the functionality of the physical product—testing lines of code and user testing of graphical appeal, speed and functionality. Black box testing and glassbox testing fall into this category. As with the first type of testing, this testing also makes sure we reach the desired state, but it is based on user acceptance. In a testing situation, junior business analysts may not always be heavily involved. Their role is often to assist. The intermediate business analyst might take on the role of designing test cases and reviewing some or all of the results from these scenarios. The senior business analyst acts as an overseer in the testing phase. His or her job is to see the project to fruition and manage quality. Table 6: Competency Breakdown for Testing Knowledge What is being measured? Monitors user acceptance testing and responses to problems Senior Skill How is it being done? � Using test plans to ensure that all business requirements and their integrity are maintained through to user acceptance testing Ability To what degree can it be done? Within 5-10% accuracy Intermediate Junior Designs user acceptance test plans and test cases Demonstrates knowledge of test strategies, plans and execution � Using ERD diagrams and use case diagrams to develop test plans � Setting up a requirements coverage matrix Within 10-25% accuracy Within 25-50% accuracy Black Box Testing: Black box is, essentially, the “checks and balances” of testing. In this process, the structure of the item being tested is not visible. Testing is done on the requirements or objectives determined by the business need. Black box testing shows us what the deliverables are supposed to accomplish and to what extent they canbe accomplished. For example, if we were creating a Travel and Expense Management Tool, black box testing might look at the amount of time required to a) fill in a report, b) have a report approved or rejected, and c) be reimbursed. Black box testing in this scenario would not look at the intricacies of the actual system—only the results. See the side bar on page 14 to read about the opposite of black box testing—glass box testing.
  • 14. © ESI International, Inc. 2006. All rights reserved. 14Eight Things Your Business Analysts Need to Know Competency #6: End-User Support It’s a common misconception among project teams that the project ends when the deliverable is completed. Not so. Business analysts, specifically, should be aware that end-user support after the product is delivered is almost as important. It should be stated, too, that the role of the business analyst is not to act on behalf of the training team, but to complement the training team’s efforts with their knowledge of the business requirements. Much of the documentation created in the process of identifying the deliverables is invaluable to the development of training needs and end user support, including user manuals and reference materials. Ideally, a junior business analyst may work with end-users in the post- deployment phase to clarify any high-level questions that need to be addressed. An intermediate business analyst would work closely with training managers and facilitators to define requirements to deliver the training supporting the business needs. A senior business analyst would assess and evaluate all feedback from his or her team members, those individuals involved in the deployment of the product and any pilot or “test” groups to ensure that the requirements necessary to correct any issues are addressed in future releases, iterations or versions of the product. Glass Box Testing: The opposite of black box testing is glass box testing. This type of testing allows the business analyst to see “under the hood” of the product or deliverable. In an IT-related project, such as software development, glass box testing would allow for a view and assessment of the design, code and architecture of information. For example, in using the same Travel and Expense Management Tool discussed on page 13, glass box testing would examine such details as: Does the tool integrate with our payroll system? Does it integrate well with our credit card vendors? Has the tool taken into consideration the currency exchange aspect? Is the downloading and uploading of information automated? Is the execution seamless and performed in a timely fashion? Does the code in place ensure that these tasks are completed? • • • • • • Table 7: Competency Breakdown for End-User Support Knowledge What is being measured? Collects and analyzes feedback from end-users to create requirements for next release of solution Senior Skill How is it being done? � Analysis of help desk requests � Reviews via surveys, interviews and audits Ability To what degree can it be done? Within 5-10% accuracy Intermediate Junior Develops end-user training content for use in instructor-lead and technology-based training Provides day-to-day support of end users � Working with training managers and documented requirements � Help desk support Within 10-25% accuracy Within 25-50% accuracy
  • 15. © ESI International, Inc. 2006. All rights reserved. 15Eight Things Your Business Analysts Need to Know Competency #7: IT Fluency How much knowledge is enough for a business analyst? With regards to IT knowledge, this has been a long-standing debate. In reality, the answer is as varied as it would be for any other professional. The amount of necessary IT knowledge is truly based on the project. The IT background for a competent business analyst depends entirely on the environment and possibly the industry vertical he or she works within. It’s important to remember that IT fluency is just one of eight competencies that a successful business analyst must have. Also, just because an individual is fluent in a given technology does not automatically qualify him or her as a business analyst. This is a mistake many organizations are guilty of making. In theory, a great business analyst should have the wherewithal to understand which resources would be appropriate to help define and validate both requirements and specifications within a given project and product scope. In examining the different stages of a business analyst, a person at the junior level would need to have a clear understanding of the IT products and tools necessary for the business to function. An intermediate business analyst may understand interconnectivity and relationships between the tools, and perhaps, system architecture and information architecture. A senior business analyst will demonstrate his or her IT fluency across an industry vertical. He or she may also have a very clear understanding of how different IT products are related, interface with and connect to each other, as well as the positive or negative impact they may have in a given situation. Table 8: Competency Breakdown for IT Fluency Knowledge What is being measured? Understands the societal impact of information and information technology Senior Skill How is it being done? � Evaluating and assessing the impact of one solution and product on the rest of the organization Ability To what degree can it be done? Within 5-10% accuracy Intermediate Junior Displays to peers, technology staff and clients a basic understanding of IT concepts Demonstrates basic understanding of technology and applications within own enterprise � Working with developers and administrators to develop as-is and to-be states of products from a code and systems perspective, including anything from security layers to integration with other systems � Structured walkthroughs at an end-user level — specifically, familiarity with the products interface, and possibly some administrative aspects of the product Within 10-25% accuracy Within 25-50% accuracy “Just because an individual is fluent in a given technology does not automatically qualify him or her as a business analyst.”
  • 16. © ESI International, Inc. 2006. All rights reserved. 16Eight Things Your Business Analysts Need to Know Competency #8: Business Process Re-Engineering Considered the “big-picture thinking” of business analysis, business process re-engineering (BPR) is a rapidly growing part of business analysis. In fact, lately many companies have been grouping business analysts around this specialty and developing teams of process analysts. This is the phase in which business analysts seek out both problems and opportunities. BPR uses a variety of modeling techniques in order to look at the bigger picture, but still think tactically. BPR is a competency in which all levels of business analysts must be highly skilled. The junior business analyst’s responsibility is often to identify, using various modeling techniques, possible areas of improvement. The intermediate business analyst might have the job of walking the client or user through each step of the process, examining individual tasks that could potentially be improved. The senior business analyst begins to actually make suggestions for improvements. Table 9: Competency Breakdown for Business Process Re-Engineering Knowledge What is being measured? Recommends improvements to business processes Senior Skill How is it being done? � Ensuring business goals are met by considering all tangible and intangible costs Ability To what degree can it be done? Within 5-10% accuracy Intermediate Junior Participates in workflow analysis and other business process analysis to identify and clarify requirements Identifies which business modeling tools are appropriate given the task at hand � Conducting structured walkthroughs with client using workflow diagrams � Use-case modeling techniques � Workflow modeling � Business process modeling Within 10-25% accuracy Within 25-50% accuracy “BPR is a competency in which all levels of business analysts must be highly skilled.”
  • 17. © ESI International, Inc. 2006. All rights reserved. 17Eight Things Your Business Analysts Need to Know Developing the Eight Competencies to Improve Your Organization In the beginning of this paper (Figure 1), we discussed the key challenges organizations face in translating user needs into systems specifications. Any of these challenges can ultimately lead to project failure. After outlining the eight critical business analysis competencies, however, we can begin to see how these challenges can be combated. As your business analysts become more and more capable in well-defined roles, they are better armed to overcome such recurring challenges. For instance, poor requirements (50%) were cited as the biggest challenge to organizations. As business analysts at the junior, intermediate and senior levels begin to understand their role in the elicitation process, the work performed is inevitably more centered and accurate. Inadequate risk management (17%) was cited as the second most-common challenge. Several competencies—creating the BRD, object-oriented analysis and structured analysis—will help business analysts perform more effective risk management. IT fluency and business- process re-engineering can help improved project scope control, which was cited by 15% of respondents as a key challenge. The challenges associated with communication problems (14%) and the lack of qualified resources (3%) will also lessen once the business analysts in your organization are better versed in the standards and best practices of their specific job functions. Ultimately, all of these challenges become, simply, daily tasks that your business analysts are prepared to handle as experts in their field. Though comprehensive, the competency model alone is not enough to improve business analysis practices within your organization. Implementing these competencies as organizational guidelines is essential. Once this is accomplished, organizations must then develop the competencies in their individual business analysts. More ways to add to your business analysis repertoire: In addition to the eight competencies discussed in this paper, certain ways of thinking are crucial to the job: Strategic (Vision)—A good business analyst should be able to clearly demonstrate the idea of vision. Systems (Sustainable Innovation)—A good business analyst should constantly be thinking innovatively: How are we going to do it better? How can we be more creative with this solution? Self (Communication)— Business analysts can’t get far without excellent communication skills. Social (Collaboration)— The center of the business analyst’s job is really the idea of collaboration. As such, they must have the ability to help two groups work together to accomplish a common goal. • • • •
  • 18. © ESI International, Inc. 2006. All rights reserved. 18Eight Things Your Business Analysts Need to Know The first step in ensuring that your organization’s business analysts have the knowledge, skills and abilities necessary for success is to develop job functions and detailed descriptions based on this competency model. After these have been determined and approved, it’s essential that organizations “take inventory,” so to speak, of the competencies their business analysts already possess. There are specific assessments to test these competencies. Such tools will establish the knowledge level of individuals in each competency area and of the team as a whole. If knowledge isn’t baselined, improvement will be virtually impossible to track. The competency model is an ideal reference point for such an assessment. After you have established the business analysis knowledge and ability levels within your organization, you must implement training to improve any competencies that may be lacking. The competency model can also serve as a validation tool for such training. It can be used to ensure that the performance improvement program is comprehensive, and that no behaviors or competencies are missed. However, until business analysis competencies are dramatically improved within organizations, we will continue to see the same problems we’ve grown so accustomed to seeing. Keeping in mind the eight competencies, as well as all of the people, processes, tools and technology available to your organization, will put you on the path to better business analysis and, ultimately, more successful projects. Next steps: Develop and document job functions Assess/baseline knowledge Provide the training your business analysts need in order to develop the competencies outlined in this paper 1) 2) 3)
  • 19. © ESI International, Inc. 2006. All rights reserved. 19Eight Things Your Business Analysts Need to Know The ESI Solution ESI International can help you improve the capabilities of your business analysts. We understand the unique needs of organizations like yours working to define the business analyst role. We have developed a skills-based Business Analysis curriculum that provides comprehensive, actionable training in each of the competencies described in this paper. Our academic partner, The George Washington University, has endorsed this curriculum by awarding a Professional Certificate in Business Analysis, and ESI has taken the additional step of conferring the prestigious Certified Business Analyst (CBA) credential to those who complete the program. Additionally, ESI offers BAAppraise®, a powerful online tool for measuring individual and team knowledge of business analysis and establishing a baseline for improvement before training. ESI, the leading provider of business analysis, project management and contract management training, has helped some of the world’s most successful companies build talent and drive results. ESI has served Fortune Global 500 companies and nearly every major U.S. government agency. Since 1981, more than 800,000 professionals from 100 countries have benefited from ESI’s performance improvement programs. Glenn R. Brûlé, an expert in the business analysis industry, was instrumental in the production of this paper. For more information about how ESI can help your organization, call (877) 766-3337 or visit our Web site at www.esi-intl.com.
  • 20. © ESI International, Inc. 2006. All rights reserved. 20Eight Things Your Business Analysts Need to Know References “Latest Standish Group CHAOS Report Shows Project Success Rates Have Improved By 50%.” Press Release. The Standish Group: 25 March 2003. “Managing Risk Using Business Analysis: Implementing Best Practices to Reduce Project Risk.” Participant survey during online presentation. ESI International: 22 March 2005 <http://www.esi-intl.com/public/news/20050322WebinarMangingRisk. asp>. “Guide to the IIBA Body of Knowledge: An Outline—Release 1.0, Version 1.” www.iiba.com. 2005. International Institute of Business Analysis. 10 November 2005 <http://www.iiba.com/pdf/bok/BOKRelease1.0Version1.0.pdf>.