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BASIS Quality Forum Presents
“Poor Business Analysis
-The Culprit of IT project
Failure” Karim Majumder
Rezaul
(Business A...
Agenda
• Introduction by M Manjur Mahmud –
Convener BASIS Quality Forum
• The Problem Statement
• Statistics on Project su...
The Problem

Most IT Projects Deliver Little or No Business Value
• Too many failed or challenged projects.
• Significant ...
Project Success Rates

Source: Standish Chaos Report, 2009
Project Success Rates

Category

Description

Original
1994

Waterfall
2011

Agile
2011

Successful
Project

Completed on ...
It Gets Worse!!!

The following projects would have been considered successful if
they had delivered all planned scope on-...
Waste: 45% of Functionality is never used

Source: Standish Group Report at XP Conference 2002 by Jim Johnson
Where are the Benefits?

• “78% of Information Systems projects failed to realize even 50%
of the originally identified be...
The Culprit

Most Projects Deliver Little or No Business Value
Poor business analysis is at the root of most project failu...
Top 3 Reasons for Challenged Projects
1. Lack of User Input
2. Incomplete Requirements
3. Changing Requirements
All of the...
The Cost of Poor Business Analysis
1. Companies with poor business analysis capability will have three times as many proje...
The Remedy

Deserves true practice of
Effective Business Analysis

12
Effective Business Analysis Must Address Solution
Planning, Solution Delivery and Benefits Realization
Solution Planning
•...
Business Analysis is Much More than Requirements
Requirements

•Requirements Elicitation
•Requirements Development
•Requir...
Business Analyst Role:
More About the Business than IT
•
•
•
•
•
•
•
•
•
•

Business outcome oriented
Business process imp...
A Balanced Scorecard View of Business Value

Financial

Stakeholder

Delivering a positive ROI for
stakeholders by increas...
7 Business Analysis Techniques To Deliver More
Value
Change Project Success Focus to Delivering Value

• The ultimate success of a project involves much more than
successfully...
Why is a Business Case Needed?
• A well-defined business case is an essential first step
for delivering more value to the ...
Requirements: Three Perspectives
• Business Perspective – What business needs must be satisfied,
and what metrics identify...
5 Types of Requirements
• According to IIBA’s BABOK, there are
five types of requirements.
• The vast majority of requirem...
Good Requirements are Needed to Achieve Value
Requirement Type

Goal

Business Requirements

Maximize business value

Stak...
The Case for Good Requirements
Quality and Cost Savings

As much as a 200:1 cost savings
results from finding errors in th...
How can better Collaboration between
the Solution Team and Stakeholders Help?
• Lack of user input is the #1 cause of proj...
Joint Responsibility for Requirements
Makes a Big Difference

Who owns Primary
Responsibility for Requirements

Budget
% o...
Engage your Stakeholders!!!
• Learn background and purpose of project
• Document and express needs
• Document business rul...
What is Solution Scope?
Project Scope

Solution Scope

Project Scope includes the
work needed to create a
product or deliv...
Why is Solution Scope important?
• Solution scope consists of high-level Features of the proposed solution.
• Features sho...
Two Types of Value for the User
Value is helping the user get a job done faster, more
conveniently, and less expensively t...
Identify and Understand Your Users
• Identify all your various types of users
• Prepare a persona for each user type
• The...
What are the Key Reasons Expected Business
Benefits are not Achieved?
• The business problem was poorly defined giving ris...
Value Index

Business Benefits Received
----------------------------------Solution Cost
Benefits Realization Management
• Benefits realization starts with defining a realistic
business case.
• Benefits do not j...
Benefits Realization Management
Benefits Realization Management
1. Validate and Re-Validate the Business Case
2. Create Benefit Realization Accountability...
Poll
To what extent does your organization perform
benefits realization management ?
• Done for every project
• Never
• Oc...
Portfolio Management
Portfolio Management is a corporate, strategic level process for
coordinating successful delivery acr...
Portfolio Management is More Than Just Projects
Project
Portfolio

Stakeholder
Portfolio

Process
Portfolio

IT Service
Po...
Portfolio Management
Managing for Value

Evaluate

Value
Alignment
Fit
Innovation

Are the benefits worth the effort and r...
Business Value Lifecycle
Portfolio Management
“Doing the Right Projects”

•
•
•
•
•

Solution Scoping
Business Case
Priori...
The Culprit is traced by the Team
So resist it for Project Success
Next Generation Business Analysis:
IIBA’s Business Analysis Framework
Version 3 is coming
There are big changes coming in ...
Q&A
Upcoming SlideShare
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Poor business analysis The Culprit of IT project Failure

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BASIS Quality Forum Presents
“Poor Business Analysis -The Culprit of IT project Failure”


The Problem Statement
Statistics on Project success rate
Finding the reason : the Culprit
The solutions
The stakeholders role
Ecosystem of a successful Project

Published in: Technology, Business
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Poor business analysis The Culprit of IT project Failure

  1. 1. BASIS Quality Forum Presents “Poor Business Analysis -The Culprit of IT project Failure” Karim Majumder Rezaul (Business Analysis Professional)
  2. 2. Agenda • Introduction by M Manjur Mahmud – Convener BASIS Quality Forum • The Problem Statement • Statistics on Project success rate • Finding the reason : the Culprit • The solutions • The stakeholders role • Ecosystem of a successful Project • Q&A
  3. 3. The Problem Most IT Projects Deliver Little or No Business Value • Too many failed or challenged projects. • Significant functionality is developed but never used. • Projects seldom deliver benefits identified in the business case.
  4. 4. Project Success Rates Source: Standish Chaos Report, 2009
  5. 5. Project Success Rates Category Description Original 1994 Waterfall 2011 Agile 2011 Successful Project Completed on time and budget, with all features and functions as specified. 16% 14% 42% Challenged Project Completed, but were over budget, late, or lacking some originallyspecified features and functions. 53% 57% 49% Project Impaired/Fail ed Abandoned or cancelled at some point and thus became a total loss. 31% 29% 9% Source: Standish Group Chaos Reports
  6. 6. It Gets Worse!!! The following projects would have been considered successful if they had delivered all planned scope on-time and on budget using the CHAOS criteria, but … • Solution was ultimately not used and withdrawn because of lack of user adoption • Solution did not deliver on business case • Solution did not deliver expected business benefits • Solution had poor usability, poor performance, or high error rates requiring rework
  7. 7. Waste: 45% of Functionality is never used Source: Standish Group Report at XP Conference 2002 by Jim Johnson
  8. 8. Where are the Benefits? • “78% of Information Systems projects failed to realize even 50% of the originally identified benefits.” Source: Management Today • “Only 40% of CFOs find that their IT investments are producing the returns they expected. ” Source: Gartner, How to Optimize IT Investment Decisions • “30-40% of systems to support business change deliver no benefit whatsoever.” Source: OGC, Successful Delivery Toolkit
  9. 9. The Culprit Most Projects Deliver Little or No Business Value Poor business analysis is at the root of most project failures. o Poor requirements o Poor communications between business and development teams. o Business cases are mostly used to secure funding and are not used to manage project outcomes. o Low business analysis maturity levels for most organizations
  10. 10. Top 3 Reasons for Challenged Projects 1. Lack of User Input 2. Incomplete Requirements 3. Changing Requirements All of these are symptoms of Poor Business Analysis Source: Standish Chaos Report, 2011
  11. 11. The Cost of Poor Business Analysis 1. Companies with poor business analysis capability will have three times as many project failures as successes. 2. 68% of companies are more likely to have a marginal project or outright failure than a success due to the way they approach business analysis. In fact, 50% of this group’s projects were “runaways” which had any 2 of the following: • Taking over 180% of target time to deliver. • Consuming in excess of 160% of estimated budget. • Delivering under 70% of the target required functionality. 1. Companies pay a premium of as much as 60% on time and budget when they use poor requirements practices on their projects. 2. Over 41% of the IT development budget for software, staff, and external professional services will be consumed by poor requirements at the average company using average analysts versus the optimal organization. 3. The vast majority of projects surveyed did not utilize sufficient business analysis skills to consistently bring projects in on time and budget. The level of competency required is higher than that employed within projects for 70% of the companies surveyed. Source: Business Analysis Benchmark, IAG Consulting
  12. 12. The Remedy Deserves true practice of Effective Business Analysis 12
  13. 13. Effective Business Analysis Must Address Solution Planning, Solution Delivery and Benefits Realization Solution Planning •Develop business case •Define solution scope •Identify stakeholder needs •Develop requirements Solution Delivery •Monitor project delivery •Assess and validate solution •Define transition requirements •Engage stakeholders Benefits Realization •Measure performance based on KPIs •Assess performance •Optimize as needed
  14. 14. Business Analysis is Much More than Requirements Requirements •Requirements Elicitation •Requirements Development •Requirements Management Enterprise Analysis •Problem Analysis •Business Case Organization and Process Change •Business Process Modeling •Business Process Improvement •Stakeholder Analysis and Communications •Organizational Readiness •Organizational Change Management Manage Delivery of Value •Solution Assessment and Validation •Business Benefits Realization •Enterprise Portfolio Management
  15. 15. Business Analyst Role: More About the Business than IT • • • • • • • • • • Business outcome oriented Business process improvement skills Organizational change skills Broad (not deep) IT technical knowledge Customer management skills Ability to conceptualize and think creatively Can articulate a vision Interpersonal skills, ethics, and integrity Negotiation and conflict management skills Analytical and communication skills
  16. 16. A Balanced Scorecard View of Business Value Financial Stakeholder Delivering a positive ROI for stakeholders by increasing revenues, decreasing costs. Satisfying the needs of internal and external stakeholders. Internal Business Process Learning and Growth Improving performance by reducing cycle time, eliminating waste, avoiding defects, increasing efficiency, and spending less time on non-value added activities. Helping users adopt the solution resulting in increased skills, high employee satisfaction, and bringing innovation to new and existing products.
  17. 17. 7 Business Analysis Techniques To Deliver More Value
  18. 18. Change Project Success Focus to Delivering Value • The ultimate success of a project involves much more than successfully delivering the solution on time, on budget, and with all planned scope. • The main criteria for success is whether the business benefits as proposed during the initial business case were achieved.
  19. 19. Why is a Business Case Needed? • A well-defined business case is an essential first step for delivering more value to the business. • The successful business case allows the decision maker to confidently choose a course of action. In the end, it answers the question: “Should we undertake this initiative?” • The Business Case should not be used just for funding. It should be updated and used in the benefits realization management process.
  20. 20. Requirements: Three Perspectives • Business Perspective – What business needs must be satisfied, and what metrics identify that the project is successful? • Customer/User Perspective – What problems needs to be solved how will users interact with the solution? • Technical Perspective – What technology changes are required to ensure that the project’s objectives will be accomplished? Not adequately addressing all three of these perspectives will result in a suboptimal solution.
  21. 21. 5 Types of Requirements • According to IIBA’s BABOK, there are five types of requirements. • The vast majority of requirements management tool only addresses solution requirements. • Business stakeholder and transition requirements cannot be not ignored to achieve maximum value. • If your current requirements tool does not support all 5 types of requirements, find a different tool! Business Requirements Stakeholder Requirements Solution Requirements Functional Nonfunctional Transition Requirements
  22. 22. Good Requirements are Needed to Achieve Value Requirement Type Goal Business Requirements Maximize business value Stakeholder Requirements Achieve user adoption and minimize post-implementation productivity drop Solution Requirements Shorten delivery cycle and eliminate waste through less rework and prioritization Transition Requirements Minimize post-implementation productivity drop
  23. 23. The Case for Good Requirements Quality and Cost Savings As much as a 200:1 cost savings results from finding errors in the requirements stage versus finding errors in the maintenance stage of the software lifecycle. 56% of all bugs can be traced to errors made during the requirements stage
  24. 24. How can better Collaboration between the Solution Team and Stakeholders Help? • Lack of user input is the #1 cause of project failures. • Joint ownership of requirements results in lower costs and higher quality solutions. • Organization change goes more smoothly when users and other stakeholders are involved through the entire lifecycle. • Effective business analysis is the key for better collaboration between stakeholders and developers.
  25. 25. Joint Responsibility for Requirements Makes a Big Difference Who owns Primary Responsibility for Requirements Budget % of Target Time % of Target IT 162.9 172 91.4 172.9 Business 196.5 245.3 110.1 201.3 Jointly Owned 143.4 159.3 103.7 163.4 Source IAG Business Analysis Benchmark, 2008 Functionality % of Target Stakeholder Time % of Target
  26. 26. Engage your Stakeholders!!! • Learn background and purpose of project • Document and express needs • Document business rules • Gather relevant background materials • Review and validate requirements • Participate in requirement prioritization • Review design documents • Participate in software and prototype demonstrations • Participate in retrospectives and capturing lessons learned • Provide additional information for unclear requirements • Build test scenarios and test cases for user acceptance testing • Perform user acceptance tests • Approve changes to requirement specifications • Define transition requirements • Help prepare the organization for change
  27. 27. What is Solution Scope? Project Scope Solution Scope Project Scope includes the work needed to create a product or deliver a service or result. Project Scope defines the work required to create and deploy the product. The project scope statement is prepared by the project manager. The Solution Scope describes the characteristics, features, or functions of the product or service to be built. Solution scope is all about the solution to be implemented: how will it look, how will it function, and other characteristics, etc. A business analyst prepares the product or solution scope.
  28. 28. Why is Solution Scope important? • Solution scope consists of high-level Features of the proposed solution. • Features should be prioritized based on business value. • Features are used to capture stakeholder needs and organize requirements. • Using features significantly reduces solution scope creep. • Using features is highly-beneficial for both Agile and Waterfall development, as well as implementation of Commercial Packages. • Managing Features = Managing Business Value Carefully defined solution scope is key to prevent scope creep, deliver value, and serve as a basis for gathering user needs and developing requirement specifications.
  29. 29. Two Types of Value for the User Value is helping the user get a job done faster, more conveniently, and less expensively than before. Pain Relievers Gain Creators
  30. 30. Identify and Understand Your Users • Identify all your various types of users • Prepare a persona for each user type • The personas should contain:  Responsibilities  Systems and Services Used  Profile  Expectations • Review the persona with real users to ensure that it adequately represents their view.
  31. 31. What are the Key Reasons Expected Business Benefits are not Achieved? • The business problem was poorly defined giving rise to a flawed business case. • The business case was poorly developed and established an incorrect or unrealistic expectation. • Requirements for the solution were inaccurate, incomplete, or were poorly defined. • Delivery of the solution was poorly executed. • The technical solution was fundamentally flawed. • The delivered solution was not effectively adopted by the business. • The business changed significantly between inception and project completion.
  32. 32. Value Index Business Benefits Received ----------------------------------Solution Cost
  33. 33. Benefits Realization Management • Benefits realization starts with defining a realistic business case. • Benefits do not just happen. • Benefits realization has its own lifecycle. • Benefits rarely happen according to plan. • Benefits realization is a continuous process of envisioning results, implementing, checking intermediate results, and dynamically adjusting the path leading from investments to business results. • Benefits realization is a process that can and must be managed, just like any other business process.
  34. 34. Benefits Realization Management
  35. 35. Benefits Realization Management 1. Validate and Re-Validate the Business Case 2. Create Benefit Realization Accountability 3. Create a Benefit Realization Management Plan 4. Measure and Evaluate Benefits Realization at Key Points 5. Identify Problems and Document Solutions 6. Continually Optimize Processes, Organization, and Technology to Achieve Benefits 7. Create a Benefits Dashboard
  36. 36. Poll To what extent does your organization perform benefits realization management ? • Done for every project • Never • Occasionally for high profile projects
  37. 37. Portfolio Management Portfolio Management is a corporate, strategic level process for coordinating successful delivery across an organization's entire set of programs and projects. •To obtain the highest return from your available resources given an acceptable level of risk. •To ensure balance – in terms of investment types and organizational strategies. •To ensure funding allocations reflect business priorities. •To reallocate funds when performance deteriorates and/or priorities change. •To manage dependencies, constraints and minimize double counting of benefits. •To manage Portfolio-level risk and uncertainty. •To provide transparent reporting on performance from strategic intent to benefits realization.
  38. 38. Portfolio Management is More Than Just Projects Project Portfolio Stakeholder Portfolio Process Portfolio IT Service Portfolio Strategy People Process Technology PPM Org. Change BPM ITSM • Project Portfolio Management (PPM) is often not understood or embraced and is often managed quite haphazardly. • PPM is often has different tools and processes and organizations to manage projects, processes, applications, and IT services. • Enterprise portfolio management involves addressing strategy, people, process, and technology.
  39. 39. Portfolio Management Managing for Value Evaluate Value Alignment Fit Innovation Are the benefits worth the effort and risk? •Value •Alignment •Fit •Innovation Do the projects contribute to the strategic goals of the company? Optimize Do we have the resources and skills to complete the project? Are we willing to invest something new and will we gain a competitive advantage? •Re-Scope •Re-Classify •Re-Assign (resources) •Re-Design (merge) •Remove (cancel) •Reschedule Monitor •KPIs •Solution Delivery •Benefits Realization •Stakeholder Satisfaction
  40. 40. Business Value Lifecycle Portfolio Management “Doing the Right Projects” • • • • • Solution Scoping Business Case Prioritization Approval Closing projects that are no longer important Portfolio Governance Project Delivery “Doing Projects Right” • • • • • Requirements Design Build Test Deploy Project Management Business Analysis Enterprise Portfolio Management Benefits Realization “Harvesting the Benefits” • Measure • Evaluate • Optimize
  41. 41. The Culprit is traced by the Team So resist it for Project Success
  42. 42. Next Generation Business Analysis: IIBA’s Business Analysis Framework Version 3 is coming There are big changes coming in the role of business analysis. The focus will be much more on understanding stakeholders and their needs, analyzing change, and delivering value. Understanding how to use these components and the relationships between them results in understanding your stakeholders, what they value, and how to better deliver that value.
  43. 43. Q&A

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