The BA Guide’s

Business Analysis Process

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The BA Guide’s

Strategy Analysis Process

The BA Guide’s

Business Analysis Process

The BA Guide’s

Business Analysis Process

The BA Guide’s

Business Analysis Process

The BA Guide’s

Strategy Analysis Process

Strategy Analysis Example
Strategy Analysis Example

Current
 At home
 $200
 2:00 pm
Strategy Analysis Example

 At stadium
 Have at least $170 (food, beverages, souvenirs)

 Arrive by the start of the game (3:15pm)

 In a capacity to watch the game

Strategy Analysis Example

 Not enough money

 Get there late
 Injured or exhausted
Strategy Analysis Example

Current Future
 At home  At stadium
 $200  $170
 2:00 pm  3:15 pm
Strategy Analysis Example

Potential Options:
▪ Uber
▪ Taxi
▪ Bus
▪ Bicycle
▪ Walk
▪ Don’t go to the game
Strategy Analysis Example
Strategy Analysis Example

• The problem
• Potential solutions
• Recommended solution
What is a Project?
 Temporary endeavor
 Creates or improves upon a product or service
 Constrained by
 Schedule
 Budget
 Resources
 Scope

Risk

Constraint

Stakeholder
 Scope

Risk

Constraint

Stakeholder
 Scope

Risk

Constraint

Stakeholder
 Scope

Risk

Constraint

Stakeholder
 Scope

Risk

Constraint

Stakeholder
What is a Project Team?
 Temporary team
 Cross-functional and versatile
 Could be part-time or full-time basis
 Share responsibility for the outcome
Project Sponsor

Project Manager

Business Analyst
Project Sponsor

Project Manager

Business Analyst
Project Sponsor

Project Manager

Business Analyst
Project Sponsor

Project Manager

Business Analyst
The BA Guide’s

Strategy Analysis Process

Analyze Current State
Goal:
Understand the reasons why an enterprise
needs to make a change and what would
be affected by the change, both directly
and indirectly.
Elements within Analyze Current State:
 Review business needs
 Perform organizational assessment
 Understand capabilities
 Assess policies and processes
 Analyze technology and infrastructure
 Understand business architecture
 Identify external influencers

TIP: Stay within scope of the business need

Review Business Needs
Perform Organizational Assessment

 Culture  Structure
• Beliefs • Formal relationships
• Values • Reports to
• Norms
Understand Capabilities
 Collective skills, abilities, and expertise

Hiring Practices Training Compensation

Understand Capabilities
 Collective skills, abilities, and expertise
• Talent • Leadership
• Speed • Customer
Connectivity
• Brand Identity
• Strategic
• Accountability
• Innovation
• Collaboration
• Efficiency
• Learning
Assess Policies and Processes
Policies
 Dictate routine operations
 Provide guidance to staff on behavior and actions
 Ensure decisions are made correctly

❖ Look over policy handbooks

❖ Read through checklists
Document Analysis
 Document Analysis

Prepare
Review and Analyze
Record Discoveries
 Document Analysis

Prepare
Review and Analyze
Record Discoveries
 Document Analysis

Prepare
Review and Analyze
Record Discoveries
 Document Analysis

Prepare
Review and Analyze
Record Discoveries
 Document Analysis

Benefits
 Document Analysis

Cautions
Assess Policies and Processes
Processes
 Dictate the flow of business
 Provide step-by-step guides to staff
 Ensures some level of consistency

❖ Review process documentation

❖ Create flowcharts as necessary
Assess Policies and Processes
Process Flowchart
Assess Policies and Processes
Process Flowchart
Assess Policies and Processes
Process Flowchart
Assess Policies and Processes
Process Flowchart
Assess Policies and Processes
Process Flowchart
Assess Policies and Processes
Process Flowchart
Assess Policies and Processes
Process Flowchart
Assess Policies and Processes
Process Flowchart
Analyze Technology and Infrastructure
 Review utilized software
• Execute processes
• Makes decisions
• Interacts and enables communication

 Analyze technology hardware and

logistics
Understand Business Architecture
How everything fits together

 Organizational Strategy
 Departments
 Objectives
Identify External Influencers
 Industry structure
 Competitors
 Customers
 Suppliers
 Regulatory bodies
 Technology
Elements within Analyze Current State:
 Review business needs
 Perform organizational assessment
 Understand capabilities
 Assess policies and processes
 Analyze technology and infrastructure
 Understand business architecture
 Identify external influencers

TIP: Stay within scope of the business need

Define Future State
Define Future State:
Gather sufficient information to make the best
possible choices among potential options.
Define Future State:
 Validate success is well outlined
 Is feasible and achievable
 Ensure scope is well defined
 Key stakeholders agree on vision
Define Future State:
 Validate success is well outlined
 Is feasible and achievable
 Ensure scope is well defined
 Key stakeholders agree on vision

TIP: You are not creating a description of the

outcome to be used for implementation
Define Future State:
Describe new, removed, and modified components

Huge changes: Smaller changes:

 Company merger  Process adjustment
 Acquisition  Acquire resources
 New market  Restructure organization
 New product  Create or update system
or software
 Additional training
Elements within Define Future State:
 Set business goals and objectives
 Define solution scope
 Identify constraints
 Define changes to the organization
 Identify assumptions
 Validate potential value
Set Business Goals and Objectives
First review project deliverables and value

Goals are…
 Long term
 Ongoing

 Qualitative
Set Business Goals and Objectives

S pecific – observable outcome

M easurable – track and measure the outcome
Achievable – feasible, can be done
R elevant – aligns with the organization’s mission
T ime-bounded – time frame is consistent with the need
Set Business Goals and Objectives
 Increase customer satisfaction

 Increase customer satisfaction among teenagers (ages

13-19)

 Increase number of teenage (ages 13-19) customers

who rate us very satisfied by 25%

 Increase number of teenage (ages 13-19) customers

who rate us very satisfied by 25% within 20 weeks
Set Business Goals and Objectives
Who else is involved?
 Project Sponsor
 Project Manager
 Other key stakeholders
▪ Executives
▪ Management
Define Solution Scope
 Defines new capabilities the project will deliver

 Why?
 Changes solution options that can be considered
 Reduces chance of scope creep
 Keeps focus in right areas (reducing timeline)
 Creates a shared vision (increasing stakeholder satisfaction)
Define Solution Scope

Project Scope
vs

Solution Scope
Define Solution Scope
 Written scope statement(s)

 Focus on three areas of impact:

▪ Process
▪ People
▪ Technology

TIP: Also list out of scope items to avoid confusion

Define Solution Scope
 Solution Scope – Process

▪ We currently use manual procedures to validate

someone has active insurance through our company.
The goal is to have that process automated and to
only send validated insurance claims to live claim
representatives. The non-validated claims would be
recorded and reviewed by support representatives
based on a batched queue.
Define Solution Scope
 Solution Scope – People

▪ Support representatives will need to be trained on the

new process and the software that supports it.
Define Solution Scope
 Solution Scope – Technology

▪ We will need to implement technology to automate

the insurance validation.
▪ We will need to enhance our current software to
support the new support representative user group.
Define Solution Scope
 Out of scope items

▪ Process changes for claims representatives (they will

now only receive qualified insurance claims)
▪ Software changes for claims representatives
Define Solution Scope
 Verifying Solution Scope
❑ Are the identified business needs addressed?
❑ Are all solution scope items aligned with the problem
statement?
❑ Are items clearly defined as in or out of scope?
❑ Is there enough detail for stakeholders to understand
and validate the scope?
❑ Are the scope statements clear and concise?
Identify Constraints
 Aspects of the current state
 Aspects of the planned state
 Mandatory elements of the design
▪ Budget restrictions ▪ Resource limitations
▪ Schedule restrictions ▪ Skill restrictions
▪ Technology ▪ Regulations
▪ Infrastructure ▪ Certain stakeholders
cannot be affected
▪ Policies by the solution
Define Changes to the Organization
 Organizational structure and culture
 Capabilities
 Policies and Processes
 Technology and infrastructure
 Internal assets
Define Changes to the Organization
 Organizational structure and culture
 Reporting lines
 Relationships to facilitate teamwork
 Elements of the culture
Define Changes to the Organization
 Capabilities
 Newly needed capabilities
 Adjustment to current capabilities
Define Changes to the Organization
 Policies and processes
 New, adjusted, or removal of policies
 New processes
 Adjustment to current processes
Define Changes to the Organization
 Technology and infrastructure
 Development languages
 Hardware and software platforms
 Application software
 Resource utilization
 Data size and timing
 Updated architectural standards
Define Changes to the Organization
 Internal assets
 Resources to make the change
 Resources to support the future state
 Necessary training and skill development
Identify Assumptions
 Take something for granted without guarantee
 Quality Assurance testers will be able to assist in
testing
 Users will only need a two hour training session to learn
the software

 Steps to combat:
 Validate the assumption
 Determine action if assumption ends up being false
Validate Potential Value
 Review project proposal
 Make note of any changes or updates

TIP: Don’t just assume the project still has value.

It is better to catch it now than later.
Real World
 No set order of operation
 Combined phases
Assess Risks
Assess Risks

Undesirable consequences of internal and

external forces on the enterprise during the
transition to, or once in, the future state.
Assess Risks
 Project Manager usually facilitates
 Risks are added and updated throughout

TIP: Don’t skip risk assessment

Assess Risks
1. Identify risks
2. Determine probability and impact
3. Prioritize risks
4. Determine risk tolerance
5. Identify actions
Identify Risks
What:
 Come up with potential risks (current, future, change)
 Make a risk list (register)
Identify Risks: Examples
 Lack of executive support
 Conflict between stakeholders
 Extremely low budget
 Disengaged stakeholders
 Lack of resources
 Resource turnover
 No Subject Matter Expert
 Disagreement between goals/scope
Identify Risks
What:
 Come up with potential risks (current, future, change)
 Make a risk list (register)
How:
 Individual identification
 Brainstorming session
Brainstorming
 Brainstorming

Prepare
Conduct Session
Wrap-up
 Brainstorming

 Topic area
Prepare  Time and location

Conduct Session  Roles

Wrap-up
 Brainstorming

 Topic area
Prepare  Time and location

Conduct Session  Roles

Wrap-up
▪ Facilitator
▪ Scribe
▪ Timekeeper
 Brainstorming

Prepare  Set expectations

Conduct Session  Set time limit
Wrap-up  Brainstorm
 Visibly record ideas
 Brainstorming

Prepare
Conduct Session  Evaluate ideas
Wrap-up  Condense list
 Rate ideas
 Brainstorming

Benefits
 Brainstorming

Cautions
Determine Probability and Impact
What:
 Probability (Very High, High, Medium, Low, Very Low)
 Impact (Very High, High, Medium, Low, Very Low)
Determine Probability and Impact
What:
 Probability (Very High, High, Medium, Low, Very Low)
 Impact (Very High, High, Medium, Low, Very Low)
Determine Probability and Impact
What:
 Probability (Very High, High, Medium, Low, Very Low)
 Impact (Very High, High, Medium, Low, Very Low)

How:
 Individual
 Workshop
Workshop
 Workshop

Prepare
Conduct
Wrap-up
 Workshop

 Purpose
Prepare  Participants
Conduct  Roles
 Agenda
Wrap-up
 Outputs
 Schedule
 Send details
 Workshop

 Purpose
Prepare  Participants ▪ Sponsor

Conduct  Roles ▪ Facilitator

 Agenda ▪ Scribe
Wrap-up
 Outputs ▪ Timekeeper

 Schedule
 Send details
 Workshop

 Purpose
Prepare  Participants
Conduct  Roles
 Agenda
Wrap-up
 Outputs
 Schedule
 Send details
 Workshop

Prepare  Set expectations

Conduct  Direct conversation
Wrap-up  Validate note taking
 Workshop

Prepare
Conduct  Finalize discussion
Wrap-up  Set action items
 Distribute notes
 Workshop

Benefits
 Workshop

Cautions
Prioritize Risks
 Rank by probability and impact
 Higher risks go towards the top
Determine Risk Tolerance
 Risk-adverse
▪ Unwillingness to accept much uncertainty
▪ Avoids risk or invests to reduce risk
 Neutral
▪ Accepts some level of risk
 Risk-seeking
▪ Willing to accept risk
▪ High risk, high reward
Risk-adverse Risk neutral

Risk-seeking
Identify Actions
 Move forward regardless of risk
 Adjust to reduce probability
 Adjust to reduce impact
 Increase benefits to outweigh risk
Determine Change Strategy
Determine Change Strategy
Define and assess possible approaches to the
change and to recommend an approach.
Determine Change Strategy
 Context of the change
 Change strategy options
 Recommended change and justification
 Investment and resources needed
 Value change will provide
 Key stakeholders
 Transition states
Determine Change Strategy
 Business Case
 Statement of Work (SOW)
Elements within Determine Change Strategy
 Review solution scope
 Perform gap analysis
 Define change strategy
 Determine transition states and releases
Review Solution Scope
Perform Gap Analysis
Steps to Perform:
1. Detail future state
2. Define current state
3. Determine gap
Perform Gap Analysis
Future State:
 Changes to the organization
 Solution scope
 Business goal and objectives

Current State:
 Where are we at right now?

TIP: Mold formats between current and future

states so they are comparable
Perform Gap Analysis
Gap:
 What is the difference between our current state
and the desired future state?
 What is attributing to or causing the gap?
 Prioritize gaps by importance (as necessary)

TIP: Can conduct gap analysis as you identify and

define the current and future states
Gap Analysis Template
Define Change Strategy

High-level plan with key activities and events

that will be used to transform the organization
from the current state to the future state.
Define Change Strategy

High-level plan with key activities and events

that will be used to transform the organization
from the current state to the future state.

TIP: Don’t need to encompass all

changes in one ‘project’
Define Change Strategy
 Identify viable options
 Analyze options
 Make recommendation
 Define change method
Identify Viable Options
 What solutions should be considered?
Identify Viable Options
Solo analysis:
 Self reflect
 Initial solution research

Brainstorm sessions:
 First half - Come up with potential list of
options
 Second half - Pair down to the top options
Analyze Options
 Feasibility
 Solution scope
 Can meet business goals
 Cost-benefit analysis
Analyze Options
 Feasibility analysis

▪ Constraints ▪ Technology
▪ Assumptions ▪ Supportability
▪ Product risks ▪ Schedule
▪ Dependencies ▪ Organization
▪ Culture readiness
Analyze Options
 Validate option within solution scope
Analyze Options
 Validate option would have the opportunity
to meet business goals
Analyze Options
 Cost-benefit Analysis
 Cost of change (solution & transition)
 Total cost of ownership (solution, transition, & support)
Analyze Options
 Cost-benefit Analysis

▪ Equipment ▪ Contracts
▪ Software ▪ Data conversion
▪ Facilities ▪ Training
▪ Staff ▪ Communication
▪ Penalties ▪ Managing project
Analyze Options
 Cost-benefit Analysis
Analyze Options
Solo analysis:
 Deeper dive into solution
 Initial feasibility analysis

Workshop sessions:
 Fully discuss each option
 Eliminate any non-contenders
 Document details of all others
Make Recommendation
What is the best option to meet the business need?

Techniques:
 Interviews
 Workshops

Tools:
 Cost-benefit Analysis
 Scoring Matrix / Ranking Matrix
Make Recommendation
Scoring Matrix / Ranking Matrix
 Differentiate between like options
 Compare critical success factors
Make Recommendation
Scoring Matrix / Ranking Matrix
Make Recommendation
Scoring Matrix / Ranking Matrix
Define Transition States and Releases
 Choose methodology
 Tentative project timeline
 Transition and release plan
Choose methodology
 Business needs
 Budget
 Skills
 Documentation
 Reusability
 Visibility
 Schedule
Choose methodology
 Waterfall
 Iterative
 Agile
Choose methodology
 Waterfall
▪ Linear
▪ One phase at a time
▪ No going back
Choose methodology
 Iterative
▪ Multiple iterations
▪ Identify new requirements at
each iteration
▪ Mini-waterfalls
Choose methodology
 Agile
▪ Multiple iterations
▪ Incremental changes
▪ Discovery at each iteration
▪ Conversation over documentation
Tentative Project Timeline
 Determine project milestones
 Identify high-level resources
 Estimate high-level length to complete work
 Complexity
 Resource needs/availability

TIP: Always pad your schedule for unknown

and forgotten items
Transition and Release Plan
Single or multiple releases? (phases, iterations)
 Delivery deadlines
 Resource constraints
 Budget considerations
 Business impact
 Training needs
 Organizational policies
Determine Change Strategy
Elements within Determine Change Strategy
 Review solution scope
 Perform gap analysis
 Define change strategy
 Determine transition states and releases
Create a Business Case
Create a Business Case
Provides reasoning and financial justification for
investing in a project.
Create a Business Case

Adaptive

vs

Predictive
Business Case: Adaptive
Typical Sections:
 Scope Goals
 Time Goals
 Cost Goals
 Approach/Assumption/Outcomes
Business Case: Predictive
Typical Sections:
 Introduction/Background
 Business Objective
 Current Situation and Problem Statement
 Critical Assumptions and Constraints
 Analysis of Options and Recommendations
 Preliminary Project Requirements
 Budget Estimate
 Schedule Estimate
 Potential Risks
 Exhibits
Create a Business Case
Verifying the Business Case
❑ Validate problem statement justifies a call to action
❑ Ensure all valid solutions are given (including do
nothing)
❑ Double check cost-benefit estimates and
calculations
❑ Objectively dissect your recommendation
❑ Correct spelling or grammatical mistakes
❑ Review with another person
Create a Business Case
Presenting the Business Case
 Remind yourself they likely haven’t seen it before
 Clearly define the problem and business need to
act
 Give your recommendation
 Explain the return on investment (ROI)
 Touch on each identified risk and any mitigation
strategies
 Restate the problem, benefits, and ROI