04/11/2020 The Strategy Analysis Knowledge Area Transcript

The Strategy Analysis Knowledge Area

Before the solution to a business problem can be implemented, a business analyst must perform a strategy
analysis. Analyzing the business using the standards of practice in the Business Analysis Body of
Knowledge (BABOK), can aid in assessing the organization's current state, as well as its desired future state,
to determine what the change strategy will look like.

In this course, you'll explore documentation techniques, business and use cases, metrics, and acceptance and
evaluation criteria for effective business analytics work.

Table of Contents
1. The Strategy Analysis Knowledge Area
2. Overview of Strategy Analysis
3. Strategy Analysis Core Concepts
4. Considerations for Analyzing the Current State
5. Techniques for Analyzing the Current State
6. Considerations for Defining the Future State
7. Techniques for Defining the Future State
8. The Assess Risks Task
9. The Define Change Strategy Task

The Strategy Analysis Knowledge Area

[Course title: The Strategy Analysis Knowledge Area. The presenter is Marie Bankuti, Business Analysis
Consultant, Coach, & Trainer.] Before the solution to a business problem can be implemented, a business
analyst must perform strategy analysis. This involves assessing the organization's current state, as well as its
desired future state, to determine what the change strategy will look like. In addition, the business analyst
must assess the risks of making proposed changes and decide whether the benefits outweigh the costs. In this
course, you'll learn about tasks in the strategy analysis knowledge area.

Overview of Strategy Analysis

[Topic title: Overview of Strategy Analysis.] Strategy analysis is a key step in the implementation of a
business solution. [A diagram depicting the strategy analysis displays. It is captioned as Fig.1.4.1, BABOK®
Guide v3.] The purpose of the strategy analysis knowledge area is to define the current state and future state
that address the business need. Possible solutions are identified to address both strategic and tactical
initiatives. This knowledge area addresses needs for the enterprise, division, department, product, project, or
iteration. Strategy analysis contributes to the overall solution and describes the business analysis work that
must be performed to collaborate with stakeholders.

It impacts elicitation and collaboration in order to identify the need that contributes to requirements analysis
and design definition. The resulting solution in solution evaluation will align with the higher and lower level
strategies. It contributes to the business analysis plan by providing solution scope. [A diagram value
spectrum displays. It is captioned as Fig.6.0.1, BABOK® Guide v3.] The value spectrum illustrates how
business analysis activities begin with identifying the need and potential value by defining solution scope.
And then continue through requirements analysis and design definition to align requirements to the value
delivered.

Conducting a solution evaluation identifies if the resulting solution meets the business goals. Strategy
analysis activities define effective ways to achieve business objectives by providing the context for the
requirements and design tasks. You would engage in and facilitate strategic thinking to identify value and
transition states. The activities in strategy analysis identify needs at a strategic or enterprise wide level.

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Through initiatives or new product releases or at a tactical level to address performance needs. Strategic
analysis defines future and transition states, which is going from current state to future state. The nature of
the range of possible solutions can have varying predictability.

An easily defined future state contributes to a predictable outcome. When transition states are clearly defined
by the stakeholder, it's easier to predict the outcome. When the stakeholder knows what their goals and
objectives are, a strategy can be planned. If the outcome is unpredictable, you focus on mitigating risks and
testing assumptions and plans. This is often an iterative activity, where you will establish some assumptions,
assess risks, and work with stakeholders to define what the future needs are.

Strategy Analysis Core Concepts

[Topic title: Strategy Analysis Core Concepts. A diagram depicting the strategy analysis displays. It is
captioned as Fig.2.1.1, BABOK® Guide v3.] When identifying current state needs, business analysts will use
various techniques outlined in the business analysis plan. Needs include anything related to people,
processes, and technology that align with the business objectives. The business analyst will work with the
stakeholders to prioritize their needs and ensure everyone understands why the change is occurring. The
business analysis will determine the desired future state by identifying measures, key performance indicators,
and the desired outcome. [A diagram depicting the strategy analysis displays. It is captioned as Fig.2.1.1,
BABOK® Guide v3.]

Changes refer to the description of the future state with a list of high level requirements, process maps, and
measures. This document also includes assumptions, constraints, current state descriptions, desired state
descriptions, and dependencies. A change strategy can be communicated in a business case, product
roadmap, or plan. [A diagram depicting the strategy analysis displays. It is captioned as Fig.2.1.1, BABOK®
Guide v3.] A solution is the scope for the change strategy. The scope is based on the differences between the
current state and what's needed to reach the future state. At this point, the future state is described at a very
high level. It provides a clear definition of the outcomes that will satisfy the business needs and goals. And it
allows you to work with your stakeholders to ensure that you can reach consensus on what needs to be
achieved in order to be successful. The future state can be within any context. It can talk about business
processes, data and information, staff competencies, facilities, and lines of business. The solution scope
descriptions can include text and visual models to give a good, complete view of what needs to change. [A
diagram depicting the strategy analysis displays. It is captioned as Fig.2.1.1, BABOK® Guide v3.] Context
is particularly important to a change strategy.

The change occurs in the context of the existing environment, which includes stakeholders, technology,
processes and business rules. Other initiatives, internal and external politics, competitors, and industry
structure are just a few of the elements taken into consideration when addressing the change strategy. [A
diagram depicting the strategy analysis displays. It is captioned as Fig.2.1.1, BABOK® Guide v3.] The
business analysts will assess the potential value of a solution by conducting financial analysis to determine if
the solution is financially justified. This is communicated in a business case. Metrics will be used to
determine if the current state is delivering a value to the organization. Any gaps will inform the value for the
future state.

[A diagram depicting the strategy analysis displays. It is captioned as Fig.2.1.1, BABOK® Guide v3.] The
business analyst collaborates with stakeholders, such as vendors, to ensure there is an agreement on the
current state and the change needed to meet future state requirements. These stakeholders contribute to
understanding the current state and providing solutions and suggestions. You would develop a strategy that
will meet the stakeholders needs.

Considerations for Analyzing the Current State

[Topic title: Considerations for Analyzing the Current State.] When you undertake the analyze current state
task, the goal is to understand the context and existing capabilities of the domain under analysis, which is
needed to meet the business need. One of the inputs to this task is confirmed elicitation results, which are
validated by stakeholders after an elicitation activity. The inputs would also include business needs. The task
itself is to analyze the current state, to see if there is some value or issues with the current state. The task's
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output is a current state description and business requirements. Business needs are a key input when
analyzing the current state. Needs are derived from the problems faced by an organization or from
opportunities faced by the enterprise. Examples of needs include new opportunities, customer dissatisfaction,
and loss of revenue. New opportunities can take the form of competitive advantage with a new product or the
acquisition of another company. Customer dissatisfaction could result in lost market share and result in lost
revenue. Lost revenue can also occur because of process errors. Describing the problem or opportunity is the
starting point for all business analysis work.

It explains why the change is needed, and is the initial step in describing the scope of the initiative. Needs
drive analysis of the current state and help to identify areas for improvement that could include reduction of
errors and costs, or increases in productivity. The organization's structure and culture also play a role in
analysis. To analyze the structure, the business analyst assesses the reporting structure within the
organization. It will assist in influencing the change. Communication channels will also be identified and
provide input to the business analysis plan.

The business analyst determines the impact of the implementation on departments and stakeholders. Culture
is about the organization's values and beliefs. When analyzing the current state, the business analyst will
determine if cultural changes are needed, if stakeholders are satisfied with the current state, and understand
why the change is needed. Cultural assessment should be included in an organizational readiness assessment,
which may drive additional needs. Another factor in current state analysis is capabilities and processes. A
capability-centric view takes into consideration the knowledge an organization has. Core capabilities
describe the essential attributes of the organization that make it unique in the market.

Capabilities are organized as a hierarchy, with relationships to other capabilities. Gaps between capabilities
are easily identifiable through their relationships. When a new product is introduced, new capabilities may be
needed to close the gap. This approach is used for combining existing capabilities to find innovative
solutions. A process-centric view addresses improvements to current activities. This addresses organizations
end-to-end, with a view to deliver value to the customer. And is useful for identifying ways to improve
performance and reduce costs. Certain key organizational assets are assessed as part of analyzing the current
state. Reviewing the business architecture assists the business analyst in understanding how elements of the
current structure fit together and how changes will impact the architecture. Internal assets identify resources
used in the current state.

Your analysis can determine if they provide value. Technology and infrastructure are assessed on how
information systems support the current state, and are used to determine if changes are needed in order to
meet business needs. Current policies could limit certain actions. Policies provide guidance regarding
decision making, including levels and budget thresholds.

It ensures decisions are made appropriately, based on organizational governance. Policies are reviewed by
the business analyst to ensure procurement of resources fall within guidelines. One more factor in current
state analysis is external influences. These influences impact the current state. Which may present
constraints, dependencies, or drivers on the current state, such as trade, currency, value, and employment or
lack thereof. There are several external influences that impact the current state. One such influence is
macroeconomic factors.

A for-profit company may find an increase in exports because of the home country value of its currency,
requiring productivity changes. Another influence is the existing technology. Which may need to be
modified, rather than purchasing new technology. This is particularly true for not-for-profit organizations that
have to make the most of what they have due to limited budgets. The regulatory environment is a big driver
for change in both for-profit and not-for-profit organizations.

The current state may rely heavily on a supplier solution that is implemented with many integration points,
making change difficult. Customer service and pricing demands impact the current state. If a customer's
segment has dwindled, the organization may have to make tough decisions on how to increase market share,
or change product offerings to meet another market segment's needs. Competition in the current environment
and entry of new competitors need to be taken into consideration by the business analyst. A final influence is
industry structure. This dictates how value is delivered to the customer. For example, the cosmetic industry is

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driven by fashion trends, so value realization is very different than the value delivered by insurance
industries. The structure of the industry should be taken into consideration when renewing the current state.

Techniques for Analyzing the Current State

[Topic title: Techniques for Analyzing the Current State.] When undertaking a current state analysis, there are
several guidelines and tools that can be used for support. The business analysis approach takes into
consideration whether the method used is predictive or adaptive. This will drive the formality of current state
analysis. Another guideline is enterprise limitation. In an adaptive approach, only enough effort to describe
the current state in order to address changes, is required. Organizational strategies have goals and objectives
that will be used to guide the future state. Solution limitation provides insight into challenges of existing
solutions. Solution performance goals will help to determine gaps between how the current state meets those
goals and the desired state.

Solution performance measures provide insight into whether the current state is meeting expectations and
will identify gaps and performance. Stakeholder analysis identifies stakeholders who can provide
information about the current state and confirm the business analyst's analysis of it. There are also some key
techniques, which fall into five categories. Analysis, modeling, group, tools, and document reviews. Analysis
techniques include benchmarking, which compares the current state to like-organizations that are considered
best in class. Business capability maps provide insight into the value delivered by a particular set of
capabilities to the organization and the customer. And identifies performance gaps and risks related to the
performance of the capability. Other analysis techniques include financial analysis, process analysis, and
SWOT analysis.

Modeling techniques include process modeling, which describes the current activities that contribute to
business outcomes. Issues related to an activity, or group of activities, may contribute to customer
dissatisfaction or productivity problems. Process models illustrate where bottlenecks might be occurring or if
downstream process outputs are an issue. These models, along with observation, will help you to pin down
key areas for improvement. Other modeling techniques include model canvas, concept modeling,
organizational modeling, and scope modeling. Group techniques are focus groups, interviews, surveys and
questionnaires, and workshops. One key tool is observation, which will help you to confirm the current state.
Metrics and key performance indicators are used to compare the actual performance of an organization
against actual results. This technique helps you to narrow down the areas for improvement and provides
input for root cause analysis. Other tools include data mining, functional decomposition, item tracking,
metrics and KPIs, and risk analysis management.

The final technique area is document reviews. Document analysis will contribute to identifying current
policies, processes, and organizational structure. Other document reviews include business case, lessons
learned, and vendor assessment. As with any other task, stakeholders are key in the analyze the current state
task. And can be categorized as operational stakeholders or other stakeholders. Operational stakeholders
include domain subject matter experts, or SMEs, testers, operational support, project managers, and
sponsors. Domain SMEs provide information about the current state and will validate that the business
analyst has captured it correctly. The domain SME will also provide insight into what works, and identify
where there are issues. Testers will have in-depth knowledge of the information technology current state.
Operational support are at the frontline and will have input into the current issues and what is working well
now. Project managers use current state information when planning for the project. The sponsor may have
insight into the performance of the existing solution, such as how well it does or does not support
performance goals.

Other stakeholders include implementation SMEs, customers, end users, regulators, and suppliers.
Implementation SMEs provide information about the current environment, including issues. Customer
satisfaction surveys and customer service records can be used to find out how the solution is or is not
meeting customer needs. The end user will provide insight into how the current state works, beyond the
documentation provided. And the business analyst will confirm the current state with the end user, through
observation. Regulators provide insight into how the current state applies regulation and which regulation it
doesn't support at the time of the analysis. Suppliers may influence the current state.

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They will likely have their own roadmaps for changes and updates. The current state description includes the
capabilities and/or process maps of the organization, resources, and dependencies. It will describe the current
culture and external influences. Business requirements describe what is needed to make the change. They
will include a description of the problem and the current state, and what needs to be changed in order to meet
goals and objectives.

Considerations for Defining the Future State

[Topic title: Considerations for Defining the Future State.] To provide information that allows stakeholders
to agree on the scope, constraints, risks, and details of a change that will be affecting the enterprise, the
future state needs to be defined. The future state can also include requirements that define smaller changes.
The definition of the future state provides information for the implementation team, as well as the
stakeholders. The inputs to the defined future state task include the business requirements. These
requirements include information about assumptions, constraints, and risks. And can include business
processes, functions, organizational structures, locations, data, and information that will be used by the
enterprise. The description of the requirements, or the business requirements, includes visual models and
text. This helps to define the scope and boundaries. The task is to define the future state. The business
requirements will provide information about the problems and opportunities, and constraints that the future
state will address. The outputs include business objectives, a future state description, and the potential value
that the requirements bring to the business.

The goal of the defined future state task is to inform a statement of desired needs, which tend to be long-term
and ongoing. Qualitative descriptions describe what needs to be accomplished, for example, to reduce the
costs associated with processing a customer order. Objectives describe what needs to be accomplished to
meet the goal. They are granular and specific to the goal. They are also measurable. For example, saying the
cycle time to process an order will be reduced by 20%. The criteria needs to be SMART, specific,
measurable, achievable, relevant and time-bound. This means the outcome should be specific and
observable, measured using metrics and key performance indicators, also known as KPIs, feasible and
achievable, and aligned with the organizational vision and mission. And it should be clear when the results
will be realized. The scope of the solution defines which options can be considered, and includes important
factors for deciding on these options. The value of each option, the time frame to achieve the goals and
objectives, and the opportunity costs, which are costs associated with not pursuing a different business need,
need to be considered. Some of the options that might make up the solutions base include changes to the
organizational structure, capabilities, processes, and technology. Policies are a common source of constraint
on the future solution.

When changes to an existing policy are made, such as a policy allowing hosted solutions based on
information security restrictions, this may open up new opportunities for a solution. There are a variety of
constraints. For example, budget and timeline restrictions will limit future state options. Prioritization of
stakeholder needs help to mitigate issues in this area. Technology and infrastructure can also create a
constraint. This includes limitations such as integrating software as a solution to existing databases, which
may limit which solution is chosen for the future state. Another potential constraint is team competencies.
Limited resources are always a challenge when identifying the future state. The business analyst will have to
consider this when determining the future state, perhaps with automated solutions.

Finally, consider the constraint of specific stakeholder requirements. Management may determine that
specific stakeholders not be affected by a new state. This may cause the business analyst to determine if there
are alternative solutions and workarounds. Organizational structure and culture have a considerable impact
on the future state. There may be changes to reporting structures through the amalgamation of two
departments which removes redundant activities. The business architecture may support organizational goals
and objectives, and the desired future state integrated into the overall organizational structure through
business architecture. Solutions must support the desired future state of an organization. Especially in the
case of the new technology solution, which must integrate into the organization's technology infrastructure.

The business analyst will determine which current resources can be kept. And will also determine new
resources required to support the future state. Technology and infrastructure may pose constraints. Strategies
are based on assumptions or hypotheses. The business analyst must identify assumptions behind the belief

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and document them. If an assumption is later determined to be invalid through focus groups, then the
business can make the appropriate decision to address the gap. The business analyst must identify the
potential value of the solution. And it must be evaluated to support a change to the current state. The
potential value of a change is based on the potential value less costs. The business analyst should evaluate if
there are increases or decreases to potential value from new technologies, competition, and external
opportunities.

Techniques for Defining the Future State

[Topic title: Techniques for Defining the Future State.] An assortment of key guidelines and tools can be
useful when describing the future state. The current state description is used as a starting point. You can't get
where you want to go unless you know where you are. So this description provides the context for the
completion of work. Metrics and KPIs are used to determine whether the desired state results are achieved,
and which gaps exist and could be addressed through requirements. The organizational strategy outlines the
approach to achieve the desired future state. This could include a road map, method, or approach needed to
achieve the desired state. There are also an assortment of techniques for defining the future state.

Analysis techniques include benchmarking, which will provide information about best in class practices
related to the desired future state. Other analysis techniques are market analysis, business capability analysis,
financial analysis, process analysis and SWOT analysis. A key modeling technique is process modeling,
which will describe how work would be done in the future. It is used to define new capabilities needed by the
organization to be successful. Other modeling techniques include business model canvas, concept modeling,
organizational modeling, and scope modeling. Group techniques include workshops using process models.
Which are an effective way to get a group of stakeholders to describe the future state, keeping in mind the
goals and objectives of the organization. Other group techniques include focus groups, interviews, and
surveys and questionnaires. Using tools, a base line describes where the organization is based on metrics and
key performance indicators and provides information needed to determine what is reasonably possible in the
future state.

Other tools include acceptance and evaluation criteria, balance score card, functional decomposition, mind
mapping and prototyping. One document review technique is vendor assessments, which help to determine
the potential value provided by their solutions. Other document reviews include document analysis, business
case, and lessons learned. Defining the future state involves several operational stakeholders. Domain subject
matter experts have experienced the challenges with the current state and will have suggestions on how to
make improvements. Testers ensure the future state can be tested and help set an appropriate level of quality.
Like the domain subject matter expert, operational support stakeholders have experienced the challenges and
may have suggestions for the future state.

They're also consulted to ensure the future state can be supported. Project managers may have opinions on
how manageable the future state is. The sponsor will set expectations for the future state and approves
funding for the project. There are an assortment of other stakeholders as well, including implementation
subject matter experts, customers, end users, regulators and suppliers. Implementation subject matter experts
will provide realistic input about whether the described future state technology can be integrated and
supported. Customers can provide input about the usability of the future state through focus groups and
surveys. End users are key and tend to have less influence over the changes outlined by the future state.
However, they are the most impacted. These stakeholders can provide insight into how usable the new state
may be, and provide suggestions for improvement. Regulators ensure the future state will comply with
policies and rules. If a supplier is providing a solution, they will also help to define the future state.

The outputs of the defined future state activities include business objectives that provide direction on how to
achieve the desired future state. And the expected outcomes and measures. The future state description
includes the desired capabilities the organization has to adopt to reach the desired state. Policies may need to
be added or changed to influence the future state. Resources and infrastructure are described in enough detail
to outline the scope of the technology and other resources needed to realize the potential value of the change.
Dependencies and external influences are included in the description of the future state. What will be
described are the dependencies that must be in place to move forward and how external influences, such as
regulation, will impact the change. The potential value of the proposed future state is also included. The

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value description may be something like the solution will enable insurance claim adjusters to meet to define
cycle times. This example clearly frames the potential value.

The Assess Risks Task

[Topic title: The Assess Risks Task.] When considering change, the business analyst has to assess the risks of
making the change. The purpose of the assessed risk task is to identify negative consequences of
implementing the change and how to manage those risks. The inputs to the assess risks task include
influencers, both internal and external, elicitation results, business objectives, the potential value of the
solution, and prioritized requirements and designs. The task is to assess those risks using various techniques,
and the output is risk analysis results. There are some risks that are unknown or can't be known. The business
analyst will work with stakeholders to identify those risks that are known or in the current state. But also
brainstorm possible risks by asking what if questions. Constraints could be risks to the new state. For
example, constraints related to the technology could limit a solution that will realize value. Assumptions may
be restated as risks. One assumption may be that the end user will adopt the solution within a certain amount
of time. Dependencies may limit the realization of value, especially if value is related to the timing of the
solution.

Events may also negatively impact value, for example, if there's a weather influence like a flood or tornado.
There are three primary organizational attitudes towards risk. The first attitude is risk seeking. High tech
companies tend to be risk seeking. They always want to come up with the latest gadget in the market.
Another attitude is risk neutral. Companies with this attitude accept that there is a risk, as long as the
resulting issue doesn't impact revenue or costs. The final attitude is risk averse. Organizations such as banks
don't accept much risk unless there's a good mitigation plan. Risk averse organizations will avoid risk or
accept a lower value from the solution to mitigate the risk. The business analyst will come up with a course
of action. Possible recommendations include pursuing the change regardless of the risk when the benefits
outweigh the risks. This is the case when a new product is expected to exceed the value provided in the
market to customers. Another course of action could be pursuing change while investing in risk reduction.
This includes mitigation strategy. Another course of action is to identify ways to increase benefits versus
risks. Prototypes and usability testing will identify if the user interface is providing value and where it isn't.
Managing and optimizing opportunities is one way of managing risk. Alternately, the organization could
choose not to pursue the change at all. Several guidelines and tools will help during risk assessment. The
business analysis approach contains information on how you will analyze risk. Business policies define
limits within which decisions must be made.

These policies may govern how risk is managed. Change strategies are planned for transitioning from the
current state to the new state. Our risk assessment of potential issues must be conducted to reduce and
manage risk, especially during this crucial time. Risk analysis should be conducted on the current state
description to identify any risks that may affect the future state. The future state description will include a
risk assessment. Identified risks are used to conduct a thorough risk assessment that determines mitigation or
other risk approaches based on the organization's risk tolerance. The stakeholder engagement approach
contains information about risks associated with stakeholder collaboration. There are four categories of
techniques for assessing risks. Analysis, group, tools, and document reviews. Financial analysis is one type
of analysis technique, used to determine the cost of risk and the financial value of a solution.

Root cause analysis is used to determine the underlying reasons for the risk. Other analysis techniques
include decision analysis and risk analysis in management. Group techniques include brainstorming, used to
identify and categorize potential risks. The business case describes and rates the risk of each solution option.
Other group techniques include interviews, surveys and questionnaires, as well as workshops. Tools include
mind mapping. Document review techniques are related to the business case, lessons learned, and document
analysis. There are several operational stakeholders who provide input to the risk assessment task because of
their experience and knowledge of the area under analysis. Domain subject matter experts are critical
contributors to the risk assessment. Testers will assess risks associated with the verification and validation of
the solution. Operational support will identify risks to the support of the solution. Project manager assess
risks to the project and provide input to the business analysis risk assessment of the solution and to change
strategy.

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Sponsors need to understand the risks in order to make informed decisions. There are also some other
stakeholders involved in assessing risk. Implementation subject matter experts provide insight into the risks
associated with the design, development and release of the solution. Regulators identify risks associated with
legislation impacts to the solution. Suppliers should be subject to risk assessments. To identify risks such as
the length of time the vendor has been in business or the vendor's financial status in the market. The risk
assessment task has three key outputs. Risks associated with the future state, strategies for mitigating risks,
and strategies that can prevent risks, reduce risk impact, and reduce the likelihood of the risk.

The Define Change Strategy Task

[Topic title: The Define Change Strategy Task.] Defining a change strategy is important in order to define
optional solutions and propose alternative approaches to manage the change. The define change strategy task
has several inputs, including the stakeholder engagement approach, current state descriptions, future state
description, and risk analysis results. The task itself is to define the change strategy. The task's outputs
include the change strategy and solutions scope. Gap analysis compares current and future state capabilities.
It identifies potential transition issues which could include resistance to the process change. An enterprise
readiness assessment determines the organization's capacity for change, ability to maintain the change, and
readiness, such as training completion by end users. A solution is a response to a need. The solution will
cover descriptions of out of scope solution components.

The strategy is made up of a sequence of projects that will satisfy the organization's need. The business case
will list a series of options that must prove that the benefits outweigh the costs. When choosing a strategy,
the business analyst and team will first consider many options. There are several factors that need to be kept
in mind, including the organization's readiness for the transition. The cost and investment to enable the
change, alignment with business objectives. The timeframe to realize value, and the opportunity cost, which
describes the loss of a potential gain from another solution when one alternative is chosen. When reviewing
transition to the new state, operations may be disrupted during the transition.

Both the current state and future state solutions may need to be run at the same time. The business analyst
must plan releases and consider the budget deadlines. The business analyst would typically work with the
project manager to assess budget and deadline impacts, resource constraints on adopting the solution.
Training schedules, and the ability of the organization and end users to absorb changes. If a number of
changes are occurring at the same time, it may take longer to transition to the new state. There are guidelines
to help the business analyst define the change strategy. The business analysis approach includes information
about how the business analyst will describe the change strategy.

Design options represent ways the business needs may be satisfied. Each solution will come with its own
change challenges and will influence how the change strategy is impacted. Solution recommendations for the
future state and from subject matter experts will help determine the types of changes that will be experienced
by the organization. There are also some key techniques for defining change strategies, including analysis,
modeling, group, tools, and document review techniques.

One analysis technique is benchmarking. This uses information about best practices in the industry to help
guide decisions regarding the future state. SWOT analysis analyzes the strengths, weaknesses, opportunities
and threats of the organization, which are used to make decisions about which change is most appropriate.
Financial analysis determines the return on investment of the change. Other analysis techniques include
market analysis, business capability analysis, and decision analysis. The scope modeling technique will
provide the boundaries of the change strategy. Other modeling techniques include business model canvas,
organizational modeling, and process modeling. Group techniques include brainstorming, interviews and
focus groups. Tools like the balanced score card will be used to determine the metric for assessing the
effectiveness of the change strategy. Estimation is used to determine the timelines for the change strategy.
Adoptions rates will measure the uptake of the new solution by the end users. Other tools include functional
decomposition and mind mapping.

Document reviews include the business case, which documents the change strategy and addresses all options,
including those options that are not recommended. Several operational stakeholders contribute to change
strategy. Domain subject matter experts will provide valuable information about the impact of the change on

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04/11/2020 The Strategy Analysis Knowledge Area Transcript

their respective areas. Testers identify issues with the solution and ensure the solution operates and meets a
defined level of quality. To help in the transition to the new state, operational support will provide
information regarding operational risks related to their ability to support the solution. Project managers plan
and manage the work to complete the change.

Sponsors are a very important element in change, and will be the champions of the change, not only through
funding, but as spokespeople for the change. In addition to the operational stakeholders, there are also some
other stakeholders who contribute to the change strategy. Customers may be part of focus groups providing
input into the value the solution provides. Implementation subject matter experts have knowledge of the
impacts of the change strategy and will provide input such as requirements complexity.

Regulators or compliance experts will review the strategy to ensure it meets regulatory requirements.
Suppliers have experience in implementing the solution in other organizations and will likely be involved in
implementing the change. The define change strategy task has two key outputs. The change strategy is the
approach that will guide the change. The solution scope will include the people, process, and technology
impacted by the change. It will also cover what will be achieved through the change strategy.

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