WHAT DO WE MEAN BY BUSINESS ANALYSIS?
In our experience, business analysis has many different meanings in different industries. Before interpreting its role, it is useful to clarify what we (in line with the PMI approach) mean by business analysis.
Our approach is that business analysis is an industry-independent activity, closely linked to projects as well as to organisational objectives. This role is most often performed by business analysts, but not infrequently it is performed by the project manager, or product owner in the case of agile projects. Business analysts are often referred to as a communication bridge between IT and business.
This is partly true, but we believe their role is much broader than that. First, business analysis is not only important for IT projects. Whether it is a product development project, a process development project, or a project aimed at implementing any kind of service, this activity has a significant added value. On the other hand, the role of BAs, in our opinion, goes beyond communication and the function of "interpreter".
With a well-designed business analysis role, not only are needs translated, but they are also shaped according to organisational and business objectives, for ongoing " care ". It is no coincidence that we do not use the term needs, requirements gathering. Unfortunately, in most cases, these are not clearly defined by the stakeholders, and their development requires considerable work.
In our understanding, business analysis means the identification and interpretation of organisational and business objectives, and along these lines, the definition and management of needs and later requirements related to projects, and the management of changes and conflicts related to these.
WHY DO YOU NEED A BUSINESS ANALYSIS?
According to international project management surveys, nearly 50% of failed projects fail because of inadequate needs management. In addition, project managers have experienced an average of 45% of uncontrolled scope changes or extensions. These figures illustrate the extent to which inadequate demand and requirements management can undermine effectiveness.
Another interesting finding is that in many cases projects are not successful because the objectives are not clear or known in the first place. In many cases, although the product requirements are defined, they are not aligned with the original, actual business objectives, so even with successful project management, the delivered solution will not be truly effective. With the right application of business analysis, these negative effects can be reduced and overcome.
HOW TO APPLY BUSINESS ANALYSIS?
To successfully apply business analysis you need:
- a collaborative, supportive organisational culture,
- staff with the right competencies,
- and a process and responsibilities that are known and accepted by all.
ORGANISATIONAL CULTURE
As in any other change situation, a collaborative organisational culture and leadership commitment are of paramount importance. Unfortunately, no one has the 'philosopher's stone', so the aim here is to get colleagues with a wealth of knowledge and experience in different areas to work together. This can be facilitated through training or workshop programmes, or through organisational culture development.
For business analysts, a certain level of expertise is essential, but in our experience it is not the most important thing.
SKILLS
A good business analyst has a well-structured mindset, good problem-solving and communication skills. He/she is able to lead a workshop, facilitate, ask good questions, and visualise problems and needs and make them understood by others. These skills can be developed, and if you want to obtain an internationally recognised qualification, PMI-PBA may be a good choice. When choosing a business analyst training course, it is useful to decide what you expect from such a programme. If you want to enhance your career prospects, we recommend the exam preparation programme, if you want to develop business analysts in your organisation, we can recommend a tailor-made solution for your organisational processes. Whatever the direction, it is also useful to develop skills and methodological knowledge!
Process
Business analysis, like many other areas, can only be truly successful if there is the right organisational process in place. In our experience, it adds real value when it is combined with organisational project management, project portfolio management and the processes that support them.
Most of the time, however, the problem is not this, but a lack of clarity about roles and responsibilities. The business analyst is a much "younger" role than the project manager, and many organisations are still learning how to use it. It is crucial to separate the project manager 'cap' from that of the business analyst.
Of course, the 2 roles can be performed by the same person, but it is important to clarify which role has which responsibilities and powers. This is also critical as these two roles need to work very closely together on projects. Without the right "chemistry" and separation of duties, it is much more difficult to make the project a success.
We have written several times that we believe the future belongs to experts who have both project management and business analysis experience and competencies. These individuals are projected to be extremely well paid and valued by the market and their role will continue to grow over the next 10 years.
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