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A Practitioner’s Guide to Business Analysis
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Based on Business Analysis for Practitioners – A Practice Guide
NEED ASSESSMENT
 Topic 1

CHAPTER 2
NEED ASSESSMENT
 Topic 1
Chapter 1 - Contents
NEED ASSESSMENT
2.1 Overview of this Section
2.2 Why Perform Need Assessment
2.3 Identify Problem or Opportunity
2.4 Assess Current State of the Organization
2.5 Recommend Action to Address Business Needs
2.6 Assemble the Business Case
 Topic 1.1

TOPIC 2.1
OVERVIEW OF THIS SECTION
 Overview Topic 1.1

NEED ASSESSMENT - OVERVIEW

Need Assessment consists of the business
analysis work that is conducted in order to
analyze a current business problem or
opportunity.
It is used to assess the current internal and
external environments and current capabilities
of the organization
in order to
determine the viable solution options that,
when pursued, would help the organization
meet the desired future state.
 Overview Topic 1.1

NEED ASSESSMENT - OVERVIEW

A comprehensive approach for assessing business
needs and identifying high-level solutions to address
them.
Provides ways to think about, learn about, discover,
and articulate business problems and opportunities.
Thinking through business problems and
opportunities with stakeholders is important for all
programs and projects.
The degree to which a needs assessment is formally
documented depends upon organizational and,
possible, regulatory constraints.
 Topic 2.2

TOPIC 2.2
WHY PERFORM
NEEDS ASSESSMENTS
 Why Perform Need Assessent? Topic 2.2

NEED ASSESSMENT – WHO?

In business analysis, need assessments are performed
to examine the business environment and address
either a current business problem or opportunity.
A need assessment may be
formally requested by a business stakeholder,
mandated by an internal methodology, or
recommended by a business analyst
prior to initiating a program or project.
 Why Perform Need Assessent? Topic 2.2

NEED ASSESSMENT – WHEN?

Need Assessment work is undertaken before program
or project work begins.
It is said to involve the pre-project activities.
During the course of project, should external factors
change (e.g., corporate merger, large percentage loss of
market share etc.),
which influences or impact the project in process,
the business analyst will need to revisit the
needs assessment and
decisions made previously
to ensure they are still valid
for the situation the business is addressing.
 Why Perform Need Assessent? Topic 2.2

NEED ASSESSMENT – FOR?

A Need Assessment involves the completion of a gap
analysis, used to analyze and compare the actual
performance of the organization against the expected
or desired performance.
Much of the analysis completed during the needs
assessment is then used for the development of a
business case.
It is the needs assessment and business case that build
the foundation for determining the project objectives
and serve as inputs to a project charter.
 Why Perform Need Assessent? Topic 2.2

NEED ASSESSMENT – IF BYPASSED

When a Need Assessment is bypassed, there is often
insufficient analysis to adequately understand the
business need.
The business analyst conducts a need assessment to
help the organization understand the business
problem or opportunity in greater details to ensure
that the right problem is being solved.
When a formal needs assessment is sidestepped, the
resulting solution often
fails to address the underlying business problem or
fails to solve the problem completely.
It is also possible to provide a solution that is not
needed or one that contains unnecessary features.
 Topic 2.3

TOPIC 2.3
IDENTIFY PROBLEM
OR OPPORTUNITY
 Identify Problem/Opportunity Topic 2.3

NEED ASSESSMENT – IF BYPASSED

Part of the work performed within Needs Assessment
is to identify the problem being solved or the
opportunity that needs to be addressed.
To avoid focusing on the solution too soon, emphasis is
placed on understanding the current environment and
analyzing the information uncovered.
The business analyst needs to ask
“what problem are we solving?”
or
“what problems do our customers have that this opportunity will
address?”
The business analyst begins to elicit information to
uncover the data necessary to fully identify the
problem or opportunity.
 Topic 2.3.1
Identify Problem/Opportunity

TOPIC 2.3.1
IDENTIFY STAKEHOLDERS
 Topic 2.3.1
Identify Stakeholders

STAKEHOLDER DEFINED
Conducted as part of Needs Assessment to assess
stakeholders are impacted by the area under analysis.
Stakeholder: An individual, group, or organization that
may affect, be affected by, or perceive itself to be
affected by a decision, activity, or outcome of a
program or project.
Possible methods are discussed later in Business
Analysis Planning.
 Topic 2.3.1
Identify Stakeholders

STAKEHOLDERS
During need analysis, it is helpful to identify:
Sponsor who is initiating and responsible for the project
Stakeholder who will benefit from an improved program or
project
Stakeholder who will articulate and support the financial or other
benefits of a solution
Stakeholder who will use the solution
Stakeholder whose role and/or activities performed may change
as a result of the solution
Stakeholder who may regulate or constrain part or all of a
potential solution
Stakeholder who will implement the solution
Stakeholder who will support the solution
 Topic 2.3.1
Identify Stakeholders

RACI MODEL
The affected stakeholders for a need assessment can be
categorized into one of the four (4) categories using a
responsibility assignment matrix (RAM) such as RACI
model:
R - RESPONSIBLE: Person performing the needs assessment
A - ACCOUNTABE: Person(s) who approves the need
assessment, including the business case, when warranted
C - CONSULT: Person or group to be consulted for input to
understand the current problem or opportunity
I - INFORM: Person pr group who will receive the results of
the needs assessment
 Topic 2.3.1
Identify Stakeholders

RACI MODEL

Collaboration Point
• Both PM and BA have an interest in stakeholder identification and RACI analysis.
• PM is concerned about analyzing roles across project.
• BA may perform analysis to a lower level of detail/specific area.
(e.g., need assessment or requirements elicitation.
• Each may lend support to each other and work together.
• Ensure there is no duplication of effort.
 Topic 2.3.2
Identify Problem/Opportunity

TOPIC 2.3.2
INVESTIGATE THE
PROBLEM OR OPPORTUNITY
 Topic 2.3.2
Investigate Problem/Opportunity

STARTING INVESTIGATIONS
The business analyst focuses on learning enough about
the problem or opportunity to adequately understand
the situation.
Avoid conducting a complete requirements analysis at
this stage.
‘Situation’ is used here as a neutral word to describe
the context about the problem or the opportunity
being investigated.
 Topic 2.3.2
Investigate Problem/Opportunity

INTERVIEWS & PROCESS MODELLING

The business analyst may conduct interviews with
stakeholders to investigate the situation and learn
about the current environment.
May also review any existing documentation about
current processes, methods, or systems that support
the business unit.
Process modelling is one technique used to document
current “as is” processes of the business.
BA may monitor or observe performing their work in
order to discover elements of the current “as-is”
process.
This technique is referred to as observation.
(Refer to Requirements Elicitation and Analysis)
 Topic 2.3.3
Identify Problem/Opportunity

TOPIC 2.3.3
GATHER RELEVANT DATA
TO EVALUATE
THE SITUATION
 Topic 2.3.4
Identify Problem/Opportunity

TOPIC 2.3.4
DRAFT THE
SITUATION STATEMENT
 Topic 2.3.4
Identify Problem/Opportunity

TOPIC 2.3.5
OBTAIN
STAKEHOLDER APPROVAL
FOR
THE SITUATION STATEMENT
 Topic 2.4

TOPIC 2.4
ASSESS CURRENT STATE
OF THE ORGANIZATION
 Topic 2.4.1
Assess Current State

TOPIC 2.4.1
ASSESS ORGANIZATIONAL
GOALS AND OBJECTIVES
 Topic 2.4.2
Assess Current State

TOPIC 2.4.2
SWOT ANALYSIS
 Topic 2.4.3
Assess Current State

TOPIC 2.4.3
RELEVANT CRITERIA
 Topic 2.4.4
Assess Current State

TOPIC 2.4.4
PERFORM
ROOT CAUSE ANALYSIS
ON THE SITUATION
 Topic 2.4.5
Assess Current State

TOPIC 2.4.5
DETERMINE
REQUIRED CAPABILITIES
NEEDED TO ADDRESS
THE SITUATION
 Topic 2.4.6
Assess Current State

TOPIC 2.4.6
ASSESS
CURRENT CAPABILITIES
OF THE ORGANIZATION
 Topic 2.4.7
Assess Current State

TOPIC 2.4.7
IDENTIFY GAPS IN
ORGANIZATIONAL
CAPABILITIES
 Topic 2.5

TOPIC 2.5
RECOMMEND ACTION
TO ADDRESS
BUSINESS NEEDS
 Topic 2.5.1
Recommended Action

TOPIC 2.5.1
INCLUDE A
HIGH LEVEL APPROACH
FOR ADDING
CAPABILITIES
 Topic 2.5.2
Recommended Action

TOPIC 2.5.2
PROVIDE ALTERNATIVE
OPTIONS FOR
SATISFYING THE
BUSINESS NEED
 Topic 2.5.3
Recommended Action

TOPIC 2.5.3
IDENTIFY CONSTRAINTS,
ASSUMPTIONS, AND RISKS
FOR EACH OPTION
 Topic 2.5.4
Recommended Action

TOPIC 2.5.4
ASSESS FEASIBILITY
AND
ORGANIZATIONAL IMPACTS
OF EACH OPTION
 Topic 2.5.5
Recommended Action

TOPIC 2.5.5
RECOMMEND
THE MOST VIABLE OPTION
 Topic 2.5.6
Recommended Action

TOPIC 2.5.6
CONDUCT
COST-BENEFIT ANALYSIS
FOR
RECOMMENDED OPTION
 Topic 2.6

TOPIC 2.6
ASSEMBLE THE
BUSINESS CASE
 Topic 2.6.1
Recommended Action

TOPIC 2.6.1
VALUE OF THE
BUSINESS CASE
NEXT
SECTION I
PMBOK GUIDE, 5th Ed