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The value of Business Analysis: BACOE and BA Maturity Model and Implementation

The value of BA for the Business Value.
Business Analysis Capabilities for Business Transformation.
Business Analysis Center Of Eccellence is a key factor in order to accelerate the organization transformation.
BACOE Models and BA Maturity Model
PM&BA The Dynamic Duo

The value of Business Analysis: BACOE and BA Maturity Model and Implementation

  1. 1. The Value of Business Analysis in the organizations: BACOE and Maturity Model IIBA Italy Chapter President Enterprise Hotel, Corso Sempione, 91-93, Milano © International Institute of Business Analysis
  2. 2. 2 Why Business Analyst Professionals? “Employment of management analysts is projected to grow 19% from 2012 to 2022, faster than the average for all occupations” • Demand for the services of these workers will grow as organizations continue to seek ways to improve efficiency and control costs. (IIBA®) “Many enlightened CIOs are placing their bets on implementation of a world class Business Analysis Practice” • to finally predict, produce, deliver, and measure expected business benefits.” (Gartner Group, Northwestern University, and Diamond Cluster International survey ) © International Institute of Business Analysis
  3. 3. 3 Why Business Analysis? Why does a CIO care about Business Analysis? (Insight from the Gartner Group, Northwestern University, and Diamond Cluster International survey of 130 senior IT executives) • 51% Percentage of CIOs with no process to evaluate IT investment against business strategy • 68% Percentage of CIOs who don’t compare actual IT project benefits to original targets • 74% Percentage of CIOs who don’t track financial metrics after making an investment • 80% Percentage of CIOs who say lack of financial skills makes quantifying IT benefits difficult This revealing study, together with the fact that only 37% of IT projects are successful, costing the economy billions of dollars, make for a very challenging situation for CIOs – FOCUS should be on Business Value and not on Technology. © International Institute of Business Analysis
  4. 4. 4 Why Business Analysis & BA Professionals? More and more organizations are recognizing the value of the Business Analyst in the success of their projects. • 60% to 80% of failed software projects are traced to poor requirements. (CIO Magazine) • Only 10% to 30% of companies successfully implement their strategic plans. (Wharton School, University of Pennsylvania) • Data indicate that 60% to 80% of the cost of software development is in rework. (Carnegie Mellon Software Engineering Institute) The Business Analyst, working on the business value, helps organizations avoid such costly issues. © International Institute of Business Analysis
  5. 5. 5 Business Analysts and Project Managers The BA collaborates with the PM to conduct trade-off analysis and make the tough project decisions. • “It has been estimated that the probability of project success increases 400% with an exceptional BA on the project.” (BA Benchmark Study, AG Consulting 2008) “Dynamic Duo – Project Managers & Business Analysts allows to achieve the business value, reducing efforts, costs, increasing quality and stakeholders satisfaction.” (PM& BA IIBA® – PMI®-NIC – February 2014 & Michele Maritato, Prassede Colombo Seminaries – 2008 - today – The Dynamic Duo® - PMProgetti®) © International Institute of Business Analysis
  6. 6. 6 Business Analysts - Implementation SME - Business Managers Assuming that the Business Analysts liaison with the Business Managers, they will be invaluable in leading technologists in allocating requirements to maximize the business value. • “An experienced BA assigned throughout the project will ensure organizations develop an innovative solution, and predict, produce, deliver, and measure expected business benefits.” © International Institute of Business Analysis (Ante, During, Post, Project of The Dynamic Duo® Approach - PMProgetti®)
  7. 7. Innovation, Value and Portfolio Focus © International Institute of Business Analysis 7 Organizations need mechanism to drastically change their core business and project performance focus from exclusively time/scope/budget to innovation and value. To do so Business Analysts will ensure the project portfolio’s are contributing to the competitive position in the marketplace for the company. To do so Organizations need new capabilities. Business Analysis changes the operations and projects focus from Technology, Products to the Business Value. It’s about the business value brought about new R&D, IT, Marketing, .. Solutions, not about the Technology.
  8. 8. 8 Decision Velocity There is a need to improve the organization’s decision velocity. • Determining the most valuable candidate projects, requires some degree of analysis and planning. These analysis and planning activities occur within the enterprise analysis phase of the business solution life cycle, culminating in a decision to invest in the new initiative, defer investment, or reject the proposed initiative altogether. It means that organizations need the capabilities – Enterprise Analysis - for building brilliant Business Cases focused on the real business needs and the right solutions and for evaluating the needed changes (Ante, During, Post Projects Model of The The Dynamic Duo® Approach - PMProgetti®) © International Institute of Business Analysis
  9. 9. 9 BA Capabilities and Results Higher BA maturity levels are directly correlated to more effective business alignment of operations and projects, higher quality business solutions, increased customer satisfaction, increased creativity and innovation, and an increase in the business benefits that result from implementation of new business solutions. © International Institute of Business Analysis
  10. 10. 10 Opportunities for Organizations & BA • Enterprise Business Analyst • Business Process Analyst • Big Data / Decision Analyst • Define Strategy • Align to Strategy • Inform Strategy ENTERPRISE FUNCTION • Enterprise Business Analyst • Business Process Analyst • Business Analyst • Decision Support Analyst • Agile Analyst • Systems / Functional Analyst • Define Change • Deliver Change • Support Change PRJ/OPS • Support Project/Operations • Business Analyst • Service Analyst © International Institute of Business Analysis Source: BAWI2013 The future of the Business Analyst: from Competencies to Value for the organization - Michele Maritato, IIBA®
  11. 11. 11 BACOE Organizations face many challenges in filling their business analysis positions • finding the right people • getting them on the right projects/tasks • ensuring that they do the work as effectively as possible • and that it adds value to the organization Business Analysis Center of Excellence (BACOE) is the emerging best practice in order to assess BA capabilities, identify the GAP and identify the right model for the organization. © International Institute of Business Analysis
  12. 12. 12 What is a BACOE? It’s a new type of Center which serves as the single point of contact for business analysis practices The type of Center that is most appropriate for your organization depends heavily on the culture, power and politics that exist within your organization • Mission - Understanding the business drivers behind establishing the BACOE • Sizing of the organization and the level of change - gradual approach • Functions involved and BA team • The competitive pressure of the industry - the higher the pressure to innovate both products, services, and business processes and practices, the greater the need for the COE) © International Institute of Business Analysis One Size Does Not Fit ALL
  13. 13. 13 BACOE Models There are several models of BACOEs that are in existence today. Each structure has unique composition, goals and outcomes. • In that role, the BACOE defines the business rules, processes, knowledge, skills and competencies, and tools used by the organization to perform business analysis activities throughout the solution and project life cycle, from strategic planning to project initiation to solution delivery and benefits realization on field. Business Analysis Center of Excellence (BACOE) is the emerging best practice in order to assess BA capabilities, identify the GAP and address them in order to move the organizations towards innovation and competition © International Institute of Business Analysis
  14. 14. Common BACOE Structures © International Institute of Business Analysis 14 BACOE Models BA Community of Practice (Senior BA) - Club Informal BACOE (BA Team Lead) – Senior BAs Formal BACOE (BA Practice Director/VP) - All Bas Project/Program Management COE (PMO Director/VP) - BAs; PMs, QA/Tester One Size Does Not Fit ALL
  15. 15. 15 BA Practice and BACOE Program To implement and institutionalize an enterprise-wide BA Practice, the business value that is promised from a mature BA Practice needs to be fully understood across the organization, and BA benefits need to be continually demonstrated through measurement and communication programs • Leadership and sponsorship of the effort should emanate from the top of the organization, and flow down to all levels Gradual Change Program Approach supported by BA tools as BACOE Maturity Model, BA Competence Model © International Institute of Business Analysis
  16. 16. 16 BACOE Maturity Model (1) Level 1 BA Awareness Level 2 BA Framework Level 3 Business Alignment Level 4 Business/ Technology Innovation Project Focus Enterprise Focus Competitive Focus The BA Practice and the BACOE Maturity is moving from a project-focused structure with limited influence to an enterprise level, and finally to a focus on innovation and the competitive positioning of the organization © International Institute of Business Analysis
  17. 17. BACOE Maturity Model (2) BA Awareness BA Framework Project Focus Business Alignment Enterprise Focus Business/ Technology Innovation Competitive Focus © International Institute of Business Analysis 17 1 2 3 4 BA Value Acknowledged Business Requirements Managed Business Needs/Strategy Executed Technology used as a Competitive Advantage 4 Continuous Improvement of BA Practices
  18. 18. 18 BACOE Program Approach Readiness • Business Case (Maturity model selection; Assessment, and Gap Analysis, Select Solution Approach (What BACOE), Solution Scope • Executive Sponsorship (Engagement) • Steering Committee (Engagement and Approval) Implementation • BACOE Model (Organization, role and responsibilities, Functions – BACOE Models) • Capable Team (BA Competencies development - BA Workforce Capability Model) • BA Practice Standard (Methods, Techniques - BA Practice Maturity Model) • BA Tools Sustainability • Maturity and Capability Assessments and Continuous Improvements • Next Phases – Assessment – Business Case – New Cycle • Measurement and Communication Programs “Is your organization ready?” “How do you institutionalize and continue to improve BA practices?” “How do you build the BA Practice?” (BACOE Implementation - Framework- The Dynamic Duo® - PMProgetti®) Project Focus Enterprise Focus Innovation Focus R I S
  19. 19. • IT PMO • BACOE • Requirement Management • Portfolio Management – Enterprise Analysis • BA Practices • BA Training, CBAP, CCBA • BA Roles Case 1 – From Informal to Formal (Energy) Level 1 BA Awareness Level 2 BA Framework Level 3 Business Alignment Level 4 Business/ Technology Innovation Project Focus Enterprise Focus Innovation Focus Training BA for Business & IT 2013 •Follow up •Framework •BA Community 2014 BACOE BA roles Extention Business 2015 Position (BACOE Implementation - Framework- The Dynamic Duo® - PMProgetti®) 19 © International Institute of Business Analysis
  20. 20. CASE 2 – EPMBA-COE - IT PMO versus High Performance (Tourism) Portfolio Management – Enterprise Analysis Demand Management, Business Case Resource Allocation, Reporting Enterprise PM and BA Capabilities Project Management and Business Analysis Processes Project Managers and Business Analyst Professionals Tools Change Management Organization (Macro and micro) (Enterprise, Innovation, Competitive Focus 20 PMO Competency Continuum”- G. M. Hill PM&BA Capabilities for Business Value PM&BA Capabilities for Level 4-5 requires PM, BA Practices Competencies and Tools those more mature and focused on adaptive change and innovation. Scenario 3 IT PMO Manager (*) PMO Analyst Enterprise PM Enterprise BA IT Finance & Budget Analyst PMBA- COE Model 2014 Standard PMO Enterprise Focus Business Alignment 2015 • Advanced/ COE 2016 (*) BAs (*) PMs © International Institute of Business Analysis (BACOE Implementation - Framework- The Dynamic Duo ® - PMProgetti ®)
  21. 21. 21 CASE 3 - Formal BACoE (Banking) • Centralize Business Analysis – Competence Center for BA • 150 Business Analysts • Project Team composition Always required - PM - Architect - BA • Business Line Banking Knowledge © International Institute of Business Analysis
  22. 22. 22 CASE 4 - PMO – BA Competence Center (Telecom) First PBM (Project Business Manager) High Potential Resources Certification PMP® Resources not yet certified CBAP®certification The evolutionary roadmap expresses the evolution of the Project Manager in Telecom Italia with a view to acquire the entire lifecycle responsibility (E2E) project Standard PMO Advanced PMO PMP® 1 2 3 4 5 2 3 4 5 DEBOLI TECNICAMENTE DEBOLISSIMI “NEL RUOLO” ECCELLENTI INSICURI, PREVALENTEMENTE CON VOGLIA DI MIGLIORARE CAMPIONI COMPETENTI, MOLTO POCO CAPACI E MOLTO DEMOTIVATI COMPETENTI, POCO CAPACI E DEMOTIVATI COMPETENTI, MOTIVATI E POCO CAPACI COMPETENTI CAPACI E DEMOTIVATI 1 2 3 4 5 2 3 4 5 DEBOLI TECNICAMENTE DEBOLISSIMI “NEL RUOLO” ECCELLENTI INSICURI, PREVALENTEMENTE CON VOGLIA DI MIGLIORARE CAMPIONI COMPETENTI, MOLTO POCO CAPACI E MOLTO DEMOTIVATI COMPETENTI, POCO CAPACI E DEMOTIVATI COMPETENTI, MOTIVATI E POCO CAPACI COMPETENTI CAPACI E DEMOTIVATI DEBOLI TECNICAMENTE DEBOLISSIMI “NEL RUOLO” ECCELLENTI INSICURI, PREVALENTEMENTE CON VOGLIA DI MIGLIORARE CAMPIONI COMPETENTI, MOLTO POCO CAPACI E MOLTO DEMOTIVATI COMPETENTI, POCO CAPACI E DEMOTIVATI COMPETENTI, MOTIVATI E POCO CAPACI COMPETENTI CAPACI E DEMOTIVATI Assessment by third party Level 3 ? Level 4 ? Business/ Technology Innovation R I S
  23. 23. http://goo.gl/q5sYt www.slideshare.net/IIBA-IT https://twitter.com/iiba_italy http://www.facebook.com/ItalyIIBA Stay in touch with us! Prassede Colombo, PMP® IIBA® Italy Chapter President Partner PMProgetti President@italy.iiba.org info@italy.iiba.org +39 380 3181546 23

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