las vegas business analyst - building business · pdf filelas vegas . k key learnings ! ......

Faculty Training Institute

The Value-Minded Business Analyst How professional Business Analysts

Generate Measurable Business Value

Steve Erlank MD Faculty Training Institute

President: SA Chapter of the IIBA®

@steveerlank @facultytraining #bbcconf2013

November 2013 Mandalay Bay Resort

Las Vegas

Key learnings !  Understand what ‘business value’ really means using

simple ‘value targets’ techniques deliver immediate, measurable business value

!  Explore and use the BA tools and techniques that are value-oriented and the approaches that are designed to unlock business value

!  Understand how to make the value proposition: to show demonstrable and measurable business value

The Value-Minded Business Analyst Slide 2

Core value concepts !  ‘Value’ to a stakeholder is that

!  which helps a stakeholder achieve a goal !  Which generates more of what the stakeholder desires or needs

!  Value is not necessarily monetary !  Different stakeholders perceive value differently

!  What is ‘value’ to one stakeholder is not necessarily of value to another

!  ‘Value’ can be conflicted !  Short term value vs long term value !  Cost reduction vs employment creation

!  ‘Value’ is not always rational

Business Value Perspective !  Business Value should be described using

the vocabulary of business !  Cost reduction !  Ability to do something more quickly or easily !  Increased revenue !  Better customer service

!  Business Goals and Project Objectives should be geared towards achieving Business Value

!  Precision is very important !  “Reduce the holding costs of finished inventory by R25m p.a.” !  “Reduce average turnaround time for claims processing to 2

days”

When values differ… !  Different stakeholders

= different values = different goals = problems for a project

!  HUGE gaps can emerge between SOLUTION-focused stakeholders and PROBLEM-oriented stakeholders

!  The biggest problems will come from those stakeholders you ignored or haven’t discovered yet

Hierarchy of Business Needs

I want .

I need .

We want .

We need .

The business requires

What a user wants is not necessarily good for the business

A wider Value Framework needed !  Who derives the value?

!  Stakeholder analysis

!  What is the value? !  Identifying Value Targets

!  Why is this actually a value? !  Aligning value systems of different stakeholders

!  How will it be realised? !  Value/benefit realisation, Metrics

!  When will value be seen !  Time frame for value delivery, ROTI

!  Where will value be felt !  Where in the enterprise will value be seen, Impact Analysis?

VALUE GENERATION

The Role of the BA

The role of the Business Analyst

“A business analyst works as a liaison among stakeholders in order to elicit, analyze, communicate and validate requirements for changes to business processes, policies and information systems.

(BABOK v2 2008)

Business value is primarily covered under Enterprise Analysis in the BABOK

The business analyst understands business problems and opportunities in the context of the requirements and recommends solutions that enable the organization to achieve its goals.”

Enterprise Analysis Knowledge Area !  “Enterprise Analysis describes the business analysis

activities that take place for organizations to: !  identify business problems to be solved and opportunities to

pursue to meet business needs and achieve strategic goals, !  determine the most feasible business solution option, !  define the solution scope and develop the business case for the

proposed new project to implement the business solution, !  continue to assess, refine and validate the business need and

solution during the project, !  evaluate the business benefits brought about by the deployed

solution.” (BABOK V2)

Does BA work automatically deliver value? !  What value do the following deliver?

!  Producing a functional specification? !  Documenting a high level change request? !  Conducting an interview with a user? !  Producing a process model? !  Documenting a user story? !  Implementing a computer system?

!  Just blindly carrying out the tasks of a BA does not necessarily add value !  But it is doing your job………………..

The Good Doctor and the Bad Doctor

DON’T STAY SOLUTION/TASK_FOCUSED. BECOME PROBLEM/GOAL-ORIENTED

Professional Business Analysts add value by making

the RIGHT CHOICES in WHAT they do and HOW

they do it

BA Scope of Value !  On the project (short term)

!  Save time, waste and effort

!  In the nature of the solution (medium) !  Solutions that meet expectations

and objectives (Value targets)

!  In the organisation (long term) !  Contribute to Knowledge Base,

Enterprise Architecture, Organisational Learning

!  In the Industry (Strategic) !  Contribute to Profession, Research

COMPETENCE

KNOWLEDGE

APPROACH

Value Approach No. 1 Conduct a full and proper Stakeholder Analysis

!  Who, really, are the key stakeholders? !  What are their real goals, needs and desires? !  Are their goals aligned? !  If they achieve their Goals, will this add business value?

Value Approach No. 2 Clarify Objectives and Goals

!  If they get what they ask for, will they really be happy? !  What is the value that will be delivered? !  Can we measure this value when we have delivered? !  Prioritise objectives in terms of value

Value Approach No. 3 Look for value in what you do and the way you do it

!  Question and understand the purpose and of what you are doing, every time?

!  Don’t reinvent the wheel! !  Always seek ways to make things reusable

Value Approach No. 4 Be Problem- and goal-oriented, not Solution-focused

!  Proactive business-problem solving rather than reactive documentation or template filling

!  Conduct a proper Problem Analysis !  Quantify the extent of problems if possible !  Prioritise the problems

Value Approach No. 5 Insightful Requirements Elicitation is critical

!  Ask questions that identify motive, intent, reasons !  Understand what they hope to achieve, not what they say they

want !  Identify what they have considered (and then offer options) !  Observation is as good as an interview !  Do you have the eye? Are you a good doctor?

The Value-Minded Business Analyst

BABOK contains many techniques

that are designed to add value……

Fundamental Skills Need !  Probing and interviewing !  Facilitation !  Business Knowledge !  Systems Thinking !  Conflict resolution !  Problem-solving orientation

A lot of value is to be found in the quality of the questions that you ask

Tell me more about your requirements…

BUSINESS VALUE TARGETS

Specifying Business Solutions that add Business Value

Obvious targets that deliver business value

ERRORS RISKS

CAPACITY INEFFICIENCY

COMPLAINTS

PROBLEMS

THINKING IN TERMS OF BUSINESS VALUE

Business Problems

Costs/ Revenue

Efficiencies

Business Risk

Errors and mistakes

Information and decision making Capability

and capacity

“What are we trying to achieve”, not “what do you want to do”!

The BA’s Value check:

ERRORS RISKS

CAPACITY INEFFICIENCY

COMPLAINTS

PROBLEMS

Do your requirements documents and proposed solution aim at

BUSINESS VALUE TARGETS

The importance of quantification !  If you can’t quantify it, you can’t measure it. !  If you can’t measure it, you can’t improve it? !  So what can you quantify and measure?

!  Reduced turnaround time? !  Reduction in an operating cost (e.g. rental)? !  Reduction in inventory?

!  What about…? !  Increased ‘performance’? !  Improved ‘Employee morale’? !  Better ‘decision making’? !  Better ‘control over assets’? !  Improved ‘Customer service’?

Turning Requirements into value !  Value sought: A more efficient claims process !  Define ‘more efficient’

!  Quicker ‘average turnaround time’ !  Fewer people involved in the process !  Reduction in rework costs

!  Quantify !  Average time from claim to resolution <2 days !  Maximum 2 claims clerks !  Reduction in disputes and appeals by 50%

!  Turn into Money?

Requirement: A more efficient claims

process

Metric: Reduced turnaround time

Metric: Fewer people

Quantified Value: 1 day saved

1 staff position

So, how do I become a value-minded Business Analyst?

• Grow your business domain knowledge • Master the BA techniques that drive out value • Think about solutions in terms of the value targets they hit, not what they do • Change your approach (be a good doctor!) • Start measuring your value contribution

Is your Balance Sheet positive?

In the work that I did, and the way that I did it, what value did I add? Improved the efficiency of a business process (1 step removed)…..

2 man hours saved a week: R50000 p.a……

Created a reusable template that is now being used by others ….

Time saving: R20000. Risk reduction (specification errors) R100000??......

Ran a meeting of stakeholders to resolve conflicting objectives (instead of using email)…..…

Time saving: R3500. Reduction in project conflict : R?? Reduction in user resistance R???? Leading to shorter project times…..

Documented process model which was used to agree on new changes

Saved trainer 10 hours = R5000. Contribution to Business Architecture: R?? Reduced user queries on project by 50%......

Attended cocktail party with users after hours and identified 2 project problems and 1 new requirement (chatting informally…)

Requirements-related rework saved: 2 weeks of project time (R100000). Unblocked stalled sub-project: R???

Summarised business case into 1 page decision document and obtained user signoff immediately….

Saving sponsor time 8 Hours R3200, reduced project delays by one week (R25000),

Is your Balance Sheet negative?

In the work that I did, and the way that I did it, what did I do that did NOT add value?

Produced use cases which no-body read Wasted 5 hours: R2500

Got into argument with technical team to find person to blame for delays……

Increase in tension, problem not solved, increased lack of cooperation R50000

Omitted to follow up with stakeholder who did not attend initial meeting (and missed his requirements)

Project rework 2 weeks – R75000

Spent 2 days trying to organise next stakeholder meeting by email

Wasted hours R5000

Spent 3 days reformatting specification from MsWord old version:

Wasted hours R9000

Learn to see Value where others don’t

In summary !  Business analysts add value in what they do and how

they do it !  Leave a value legacy in what you do

!  BA’s need to understand and identify requirements in business value terms !  Find the vocabulary and perspective

!  Aim for the Value targets !  PROBLEMS, COSTS, EFFICIENCIES, RISKS, ERRORS,

INFORMATION DEFICIENCIES and CAPACITY ISSUES

Steve Erlank Treasurer– IIBA® South Africa

CEO – Faculty Training Institute

steve@fti.co.za @steveerlank @facultyTraining

Thank you

las vegas business analyst - building business · pdf filelas vegas . k key learnings ! ......

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