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Professionalizing Professionalizing Business Analysis Business Analysis Breaking the Cycle of Challenged Breaking the Cycle of Challenged Projects Projects IIBA Greater Boston Chapter Meeting IIBA Greater Boston Chapter Meeting January 2008 January 2008

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Page 1: Professionalizing Business Analysis

Professionalizing Business Professionalizing Business Analysis Analysis

Breaking the Cycle of Challenged Breaking the Cycle of Challenged ProjectsProjects

IIBA Greater Boston Chapter MeetingIIBA Greater Boston Chapter MeetingJanuary 2008January 2008

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1. The Problem with Projects

2. Enter the IIBA• Exponential growth• The BA Body Of Knowledge• Certified BA Professional

3. Enter the Business Analyst• The BA Role: Past and Future• Managing Projects for Value

4. Emerge the BA CoE• Benefits• Implementation Considerations

5. Summary: Breaking the Cycle of Challenged Projects

AgendaAgenda

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The Problem with ProjectsThe Problem with Projects

Too large

Too complex

Take too long

Almost always involve a significant IT component

Constant pressure to deliver – Faster– Better– Cheaper

Riddled with risk– Unproven technology– Outsourced, global teams– Enterprise-wide implementations

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The Past – a Dismal RecordThe Past – a Dismal Record

Over Time or Budget: 53%

Failed: 18%

Succeeded:29%

71%

I.T. Projects in the United States, 2004 Survey *

* Source: The Standish Group, 2004 Third Quarter Research Report

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The Present – Still TroublingThe Present – Still Troubling

Succeeded:35%

Failed: 19%

Over Time or Budget: 46%

65%

I.T. Projects in the United States, 2006 Survey *

* Source: The Standish Group, 2006 Chaos Report

Nearly ⅔ of all projects fail or run into trouble.

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25%-40% of all spending on projects is wasted as a result of rework (Carnegie Mellon)

50% are rolled back out of production (Gartner)

40% of problems are found by end users (Gartner)

$80-145 billion per year is spent on failed and cancelled projects

Source: surveys by the The Standish Group International

The Cost of Failure

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What Have We Learned About Project Failure?

Projects are too big and too complex

– Big projects fail more often Projects are not iterative

– Traditional PM has higher failure rates– Adaptive PM methods are emerging

Requirements are ambiguous

– 60%-80% of project failures attributed directly to requirements

Business involvement inadequate

Business alignment questionable

Business value not the focus

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21st Century Projects

“I think the 21st century will be the century of complexity.”

Professor Stephen W. Hawking, PhD

Virtually all organizations of any size are investing in large-scale transformation of one kind or another

Contemporary projects are about adding value to the organization through:

– Breakthrough ideas– Optimizing business processes– Using information technology (IT) as a competitive advantage

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Why so Much Complexity?

Initiatives are often spawned by:

– Mergers or acquisitions– New strategies– Global competition– Emergence of new technologies– The need to drive waste out of the business

Most changes accompanied by:

– Organizational restructuring– New partnerships– Cultural transformation– Downsizing or right-sizing– Enabling IT systems

Others implement new lines of business and new ways of doing business (e.g., e-business)

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The Nature of Project Complexity

Complexity Dimensions

Project Profile for Business Transformation Projects

Independent Moderately Complex Highly Complex

Project Size< 3 months

< $250K

3 – 6 months

$250K – $750K

> 6 months

> $750K

Team Size 3 – 4 team members 5 – 10 team members > 10 team members

Team Composition

Team staffed internally; experienced leadership

Team staffed with some experienced internal and some external resources

Complex, interdependent team structure, e.g., contractor teams, virtual teams, culturally diverse teams, outsourced teams. Team have not worked together in the past.

Competing Demands

Schedule, budget and scope are flexible

Schedule, budget, scope can undergo minor variations, but deadlines are firm

Urgent need; Aggressive schedule; Deadline is fixed and cannot be changed; schedule, budget, scope, and quality have no flexibility

Problem / Solution Clarity

Easily understood problem and solution; solution is readily achievable using existing technologies; IT complexity low

Either the problem is difficult to understand, the solution is unclear or difficult to achieve, or the technology is new to the organization; moderate IT complexity

Both problem and solution are difficult to define or understand, the solution is difficult to achieve and likely to be using unproven, interdependent, complex technologies; IT highly complex

*Source: The Standish Group International

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Project Complexity, continuedProject Complexity, continued

Complexity Dimensions

Project Profile for Business Transformation Projects

Independent Moderately Complex Highly Complex

Stability of Requirements

Requirements understood, straightforward, stable

Requirements understood, but are expected to change

Requirements are poorly understood, interrelated and largely undefined

Strategic Importance

Political Implications

Multiple Stakeholders

No political implications

Some direct mission impact, minor political implications, 2-3 stakeholder groups

Affects the core mission and has major political implications; is visible at highest levels of the organization, there are multiple stakeholder groups with conflicting expectations and interrelationships

Level of ChangeImpacts a single business unit; scope minimized

Impacts 2-3 business units, moderately large scope

Aggressive scope. Large-scale organizational change that has impacts across the enterprise; spans functional groups or agencies; shifts or transforms the organization

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The New Project LeadersThe New Project Leadersare Strategy Executorsare Strategy Executors

In the past, PMs were primarily implementers of solutions

– Narrow orientation focused on technical implementations– Skills narrow focused on budget, schedule, specs

Role undergoing major transformation due to new business realities

– Effective project management tantamount to effective business management

– Skills broadened, encompassing all aspects of business management Business Analyst role professionalizing

Project leadership teams emerging

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How Well Do We Execute Strategy?How Well Do We Execute Strategy?

Studies indicate that less than 10% of strategies successfully formulated are effectively executed

– 85% of executives spend less than one hour per month on strategy

– 95% of the workforce don’t understand their organization’s strategy

– 60% of organizations do not link strategies to the budget– 70% of organizations do not link strategies to incentives

Source: David Norton, Project Balanced Scorecards – a Tool for Alignment, Teamwork and Results.

ProjectWorld & The World Congress for Business Analysts Conference Proceedings, November 2005

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How Does It Work?How Does It Work?

Strategic Goals

BusinessCase

BusinessCase

ProjectPerformance

ProjectPerformance

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Enter The IIBA (www.theiiba.org)

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Critical IIBA Information

Vision

– To be the world’s leading organization for business analysis professionals

Mission

– To develop standards for the practice of business analysis and for the certification of its practitioners

History

– Inaugural meeting October 2003– First Annual General Meeting, March 2004– Draft of version 1.4 of the BOK, October 2005, 1.6, July 2006– Version 2.0 available to the membership by February 2008

2003 2007

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IIBA Body of KnowledgeIIBA Body of Knowledge

Requirements Planning & Management

RequirementsElicitation

SolutionAssessment

&Validation

RequirementsAnalysis &

Documentation

RequirementsCommunications

EnterpriseAnalysis

Fundamentals

Knowledge Areas

NOT a methodology and does not prescribe or favor a methodology

NOT a “how to do” manual; focuses on the “what” and offers generally accepted techniques for consideration

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How Far We Have Come…

Worldwide Membership – 6500

Chapters – 80

Countries – 60

CBAPs – 200

BA World and World Congress of Business Analysis

20072003

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Enter the Professional Business AnalystEnter the Professional Business Analyst

Those organizations that are first to acquire and master Business Analysis competencies, and elevate them to a leadership role, will

– React to and pre-empt changes in the marketplace– Align projects to business strategies– Flow value through the enterprise to the customer– Achieve competitive advantage

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Typical Business AnalystTypical Business Analyst

40 years old

Well educated

Paid $78K per year

Hails from IT

More than 5 years experience performing BA functions

– 36% > 10 years

Analysis skills acquired on the job

Disturbingly, they report

– Most of their projects do not deliver all requirementsSource: The New Business Analyst: A Strategic Role in the Enterprise,

November 2006 Evans Data Corporation Research Study

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Ambiguity in the BA RoleAmbiguity in the BA Role

Business Analysis 29.3%

Project Management 18.7%

Developer, Engineer, Development Lead

15.4%

Subject Matter Expert, Domain Expert 13.5%

Tester, Test Lead 10.1%

Other 13.0%

Source: The New Business Analyst: A Strategic Role in the Enterprise,

November 2006 Evans Data Corporation Research Study

Conclusion: there is a need for Business Analyst competency and career path definition

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Business Analyst Career PathBusiness Analyst Career Path

Level Proficiency Responsibilities Competencies

Strategic Ability to perform strategic tasks with minimal direction

Strategic PlanningEnterprise AnalysisMentoring

Business & IT StrategyProgram and Portfolio Mgt.Systems Engineering, BPR, Six SigmaEnterprise ArchitectureBusiness Case Development

Senior Ability to perform complex tasks with minimal coaching

Elicit, Analyze, Specify, Validate, Manage Requirements

Business & IT DomainsProject & Program Mgt.Systems Engineering, BPR, Six SigmaRequirements Engineering

Intermediate Ability to perform simple-to-moderately complex tasks with minimal assistance

Elicit, Analyze, Specify, Validate, Manage Requirements

Business &/or IT DomainProject ManagementBPR, Six SigmaWorkshop FacilitationRequirements Modeling

Associate Ability to perform simple tasks with assistance

ScribeSimple modelsHelp Desk support

PM/BA PrinciplesBPR, Six Sigma PrinciplesBusiness Writing

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Associate Business Analyst

Business Analyst Senior Business Analyst

Business Consultant

Typical Deliverables

• Trouble ticket resolution

• Defect tracking • Requirements for

maintenance and enhancement

Requirements:• Planning • Elicitation• Analysis• Documentation• V&V

• Business Case• Client

Presentations• Client Proposals• Client Coaching• Mentoring

• Feasibility Studies

• New business opportunity analysis

• Business Case• Portfolio

analysis

Typical Scope of Responsibility

• Production Support

• Small maintenance projects

1-3 low-risk projects within a business unit

1 significant, high-risk project / program across the enterprise

• Strategic planning

• Pre-project business analysis

• Portfolio management

Minimum Experience

1 year 3 years 7 years 10 years

Certification Masters Certificate in BA

CBAP CertificationPMP Certification

Internal Certification

Professional Affiliation

PMI & IIBA member PMI & IIBA member PMI & IIBA member IIBA chapter committee

PMI & IIBA member IIBA PMI chapter officer

Alternative Business Analyst Career PathAlternative Business Analyst Career Path

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Technical Analytical Business Leadership

• Systems engineering concepts and principles

• Fundamentals of business analysis

• Business process improvement and reengineering

• Fundamentals of project management

• Complex modeling techniques

• Ability to conceptualize and think creatively

• Strategic and business planning

• Capacity to articulate vision

• Communication of technical concepts to non-technical audiences

• Techniques to plan, document, analyze, trace and manage requirements

• Communication of business concepts to technical audiences

• Organizational change management; management of power and politics

• Testing, verification, and validation

• Requirements risk assessment and management

• Business outcome thinking

• Problem solving, negotiation, and decision-making

• Technical writing • Administrative, analytical, and reporting skills

• Business writing • Team management, leadership, mentoring, and facilitation

• Rapid prototyping • Cost / benefit analysis • Business case development

• Authenticity, ethics, and integrity

• Technical domain knowledge

• Time management and personal organization

• Business domain knowledge

• Customer relationship management

Staffing Surveys Reveal Increasing Demand for Senior Staffing Surveys Reveal Increasing Demand for Senior BAs Who are Multi-SkilledBAs Who are Multi-Skilled

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Business Analyst Organizational PlacementBusiness Analyst Organizational Placement

Level Organizational Placement

Strategic Part of an enterprise-wide PMO or center of excellence with a strategic focusWorking on pre-project analysis, serving as BA for strategic initiatives, and managing projects for value

Senior • In IT (67%)• The business may not take ownership of problems

• In BU (10.8%) • Difficult for BAs to feel like a “community of practice” and hard

to manage BA standards and improvements

Intermediate Usually placed in IT

Junior Usually placed in IT

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BA Role - The PastBA Role - The Past

Elicitation AnalysisElicitation Specification Validation andDocumentation

Requirements PhaseRequirements Phase

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BA Role – The Future BA Role – The Future A Critical Role Throughout the Project Life CycleA Critical Role Throughout the Project Life Cycle

EnterpriseAnalysis

Strategic Planning Requirements Design

Construction Test DeliverOperations

andMaintenance

Deactivate

Study Period Implementation Period

Implementation Period (continued) Operations Period

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Business Analyst Role - Business Analyst Role - Study PeriodStudy Period

The executive team cannot affect the transition to a strategy-focused organization alone

Information, process, tools and facilitation are provided by the Business Analyst to enable the organization to shift focus and activities to be strategy driven

Conduct analysis to inform the portfolio planning team

1. Create and maintain the business architecture

2. Conduct feasibility studies to determine optimal solution

3. Prepare the business case

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1. Planning Business Analysis activities

2. Requirements elicitation

3. Requirements analysis

4. Requirements specification

5. Requirements validation & verification

6. Requirements allocation and tracing

7. Requirements change management

8. Organizational change management

Business Analyst Role - Business Analyst Role - Implementation PeriodImplementation Period

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Business Analyst Role – Business Analyst Role – Managing the Business ValueManaging the Business Value

1. During the project life cycle

– Once projects are funded, they must be managed throughout the project life cycle to ensure that the business case remains valid and continued investment in the project is still warranted

2. After solution delivery

– Once the project delivers the new business solution, the Business Analyst ensures organizational measurements are in place:

– Actual benefits that are achieved vs. – Benefits promised in the business case

3. For solution enhancements

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Business Solution ValueBusiness Solution Value

Cost to Develop, Operate and Retire the Solution

Business Value

Deployment

Value = Benefits – Costs to Develop, Operate and Retire

Project Costs

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Where do Exceptional Business Analysts Come From?

As with any leadership role, competency comes from:

– Acquiring education and training– Seeking mentoring and coaching– Leveraging organizational support– Setting up communities of practice– Jumping in headfirst to learn the discipline

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Emerge the BACoE

Those organizations that are first to acquire and master Business Analysis competencies, and elevate them to a leadership role, will:

– React to and pre-empt changes in the marketplace– Align projects to business strategies– Flow value through the enterprise to the customer– Achieve a competitive advantage

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Benefits of CoEs

Deliver strategic projects more effectively– Accuracy of cost estimates improved 25%– Accuracy of schedule estimates improved 31%– Project stakeholder satisfaction improved 9%

Boosts productivity by ensuring priority projects get the most attention– Complete more projects on time and within budget with fewer

resources– Allocate majority of resources to highest priority projects– Saved more than $3 million by reducing the number of small

projects from 233 to 13– Deliver a return in three to six months

Source: Santosus, Megan. “Office Discipline: Why You Need a Project Management Office.” CIO Magazine, Jul. 1, 2003.

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Increase in Value Over TimeIncrease in Value Over Time

The Longer You Have Them,The Better They Work

Source: “PMOs: The Longer You Have Them, The Better They Work,” CIO Magazine, Jul. 1, 2003. <http://www.cio.com/archive/070103/office_sidebar_2.html> (30 November 2004). CIO/PMI survey

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CoE Implementation Considerations

1. Scope of disciplines: PM, BA, SE, IT, QA

2. Organizational alignment and positioning

3. Organizational maturity

4. Implementation approach

5. Focus on value

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CoE Functions

CoE Functions

Professional Development

Services

Standards

- Practices and methodologies- Tools- Performance metrics- Knowledge management- Performance reporting- Continuous improvements

- Skill assessments- Education and training- Mentoring and OTJ training- Team building- Career Path: position descriptions, grades, competencies and skill requirements

- Competitive analysis- Business architecture- Feasibility studies- Business case- Project investment decision packageStaff augmentation:- BAs/PMs- Requirements analysts- V&V specialists- Workshop facilitators

Full Cycle Governance

- Business program analysis- Strategic project resources- Portfolio management process support and facilitation- Benefits management

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CoE Maturity Model

Phase I

Project Centric

Phase 2

DepartmentFocus

Phase 3

Strategic Asset

Limited Influence Strategic Influence

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BA CoE Implementation

Visioning & Concept Definition

Organizational and Individual Assessments

Implementation Planning Form BACoE Teams

Vision and missionExecutive sponsorGuidance (steering) teamBusiness casePolitical management strategyApproval to staff BACoE planning team

Organizational readiness assessmentMaturity assessmentIndividual business analysts knowledge and skill assessment

Kick-off WorkshopCharter:- Strategic alignment- Scope- Authority- Services- Organization- Budget

Standard Practices, Tools, MetricsEducation & TrainingConsulting Services

Implementation Steps

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Demonstrate Value

CoEs must deliver value to survive

– Value is not templates, tools, methodology, processes, training; these are means to driving value

– Value is gaining efficiencies, achieving cost savings, increasing customer satisfaction, reducing time-to-market, increasing revenue and profit, reducing deficits, or increasing competitive advantage

Too many CoEs wrap their mission and existence around the services they provide instead of their impact on the business

Executives buy value

Source: http://www.chiefprojectofficer.com/article/146

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Start Small – Transition to Complex Projects

• < 3 Mos. < $250K • 3-4 Team Members• One Business Unit• Clear Problem/Solution

Small Low Risk

Independent Project

MediumModerate Risk

• 3-6 Mos. $250K-$750K• 4-10 Team Members• Schedule Flexibility• Some Problem/Solution Ambiguity• Clear Requirements• > 1 Business Unit

ModeratelyComplex Project

• > 6 Mos. > $750K• > 10 Team Members• Firm Deadlines • Complex Team Structure• Unclear Problem/Solution• Undefined Requirements• Unproven Technology• Large-scale Organizational Change

LargeSignificant Risk

Highly Complex Project

Program

• Group of Related Projects of Varying Complexity

More Complex

Project Complexity ModelProject Complexity Model

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OrganizationalFocus

Focus on BA MaturityFocus on BA MaturityCompassBACompassBATMTM Maturity Model Maturity Model

Project Centric

Ad Hoc

Strategic/Enterprise Focus

Continuous Improvement

InitialInitial1

IntegratedIntegrated3

StrategicStrategic4

OptimizedOptimized5

•Informal, inconsistent processes

•Unstable environment

•Most projects do not deliver all requirements

DocumentedDocumented2

Requirements:•Planning•Elicitation•Analysis•Specification•Prioritization•Validation•Change Mgmt.

Requirements:•Communication•Traceability•Risk Mgmt

Solution quality:•Allocation•Assessment•Verification & validation•Deployment strategy•Org. deployment readiness

Defined, integrated BA:•Standards & tools•Training program

•BA Center of Excellence•Business architecture•Feasibility studies•Business cases•Portfolio mgmt.•Resource mgmt.•Benefits mgmt.•Quantitative BA process mgmt.•Requirement defect tracking

Organizational BA practices: •Continuous BA process & tool improvement•Maturity assmt.•Requirement defect prevention

Individual BA practices:•Knowledge & skill assmt.•Professional development plans

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Expect Challenges

PMs and BAs applaud their increased control

– But loathe the accountability Managers delight in the visibility into project progress

– But scoff at the added level of communication needed to get things done

Executives like the deliberate assignment of responsibilities

– But balk at the investment necessary to support a central resource

Source: Dr. Donn Di Nunno CCP, CDP, IT ‘Owes’ Much to PMOs.2005 Engineering, Management & Integration, Inc

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Core project leadership team

Collaboration vs. control

Iterative, adaptive solution development

BA maturity

Interdisciplinary CoE

Complexity management

Project Benefits/value management

Breaking the Cycle of Challenged ProjectsBreaking the Cycle of Challenged Projects

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An elevated role for the Business Analyst

A great team: core team leadership

– Business analyst– Project manager– Business visionary– System architect/lead developer

Each taking the lead depending on the project needs

Determined to break the cycle of challenged projects

Combining Disciplines Leads to Success

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Traditional Project TeamTraditional Project Team

Business Team &

End-users

IT Architecture

TeamTest Team

Project Manager

Business Sponsor

BusinessAnalyst

Team Leads

Test Manager

Architect

BusinessVisionary

DevelopmentTeam

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Core Project Leadership TeamCore Project Leadership Team

Business Team &

End-users

IT Architecture

Team

Test Team Project

Manager

Business Sponsor

BusinessAnalyst

Team Leads

Test Manager

Architect

BusinessVisionary

DevelopmentTeam

SMEs

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Structure Projects to Reduce Risk and Complexity

Ingredients:Ingredients: Minimized scope, communications, software standards

Mix with:Mix with: Full-time core team - business analyst, project manager, business visionary, lead architect/developer, coached by an involved project sponsor

Bake:Bake: • No longer than six months

• No more than six people

• No more than $750,000

Follow the Recipe For Project Success

Source: The Standish Group International

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For Further Information:

Kathleen B. (Kitty) Hass, PMPKathleen B. (Kitty) Hass, PMP

Project Management and Business AnalysisProject Management and Business Analysis

Practice LeaderPractice Leader

[email protected]@managementconcepts.com

Q and AQ and A

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IT App Dev – CMMI / Agile / Iterations

IT Operations – ITSM/ITIL/COBIT

Time

Bre

ad

th

R

equi

rem

ents

Des

ign

Con

stru

ctio

n

Test

Dep

loym

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Ope

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ns a

nd

Mai

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ance

Mon

itorin

g

Inci

dent

and

Pro

blem

Cha

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And

Rel

ease

Ser

vice

Lev

el

Con

figur

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Cos

t

Cap

acity

Ava

ilabi

lity

Ser

vice

Con

t.

BA/PM – BABOK / PMBOKBA/PM – BABOK / PMBOK

Combining Disciplines Leads to Success

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IIBA DefinitionsIIBA Definitions

Business Analysis

– The set of tasks, knowledge, and techniques required to identify business needs and determine solutions to business problems

Business Analyst

– Identify the business needs and help determine solutions to business problems

– Responsible for requirements development and requirements management