v3 A G U I D E T O T H E B U S I N E S S A N A LY S I S B O DY O F K N O W L ED GE ® BABOK ® v3 A GUIDE TO THE BUSINESS ANALYSIS BODY OF KNOWLEDGE® International Institute of Business Analysis, Toronto, Ontario, Canada. ©2005, 2006, 2008, 2009, 2015 International Institute of Business Analysis. All rights reserved. Version 1.0 and 1.4 published 2005. Version 1.6 Draft published 2006. Version 1.6 Final published 2008. Version 2.0 published 2009. Version 3.0 published 2015. ISBN-13: 97978-1-927584-03-3 This document is provided to the business analysis community for educational purposes. IIBA® does not warrant that it is suitable for any other purpose and makes no expressed or implied warranty of any kind and assumes no responsibility for errors or omissions. No liability is assumed for incidental or consequential damages in connection with or arising out of the use of the information contained herein. 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Table of Contents Chapter 1: Introduction 1.1 1.2 1.3 1.4 Purpose of the BABOK® Guide 1 What is Business Analysis? 2 Who is a Business Analyst? 2 Structure of the BABOK® Guide 3 Chapter 2: Business Analysis Key Concepts 2.1 2.2 2.3 2.4 2.5 The Business Analysis Core Concept Model™ 12 Key Terms 14 Requirements Classification Schema 16 Stakeholders 16 Requirements and Designs 19 Chapter 3: Business Analysis Planning and Monitoring 3.1 3.2 3.3 3.4 3.5 Plan Business Analysis Approach 24 Plan Stakeholder Engagement 31 Plan Business Analysis Governance 37 Plan Business Analysis Information Management 42 Identify Business Analysis Performance Improvements 47 i Table of Contents Chapter 4: Elicitation and Collaboration 4.1 4.2 4.3 4.4 4.5 Prepare for Elicitation 56 Conduct Elicitation 61 Confirm Elicitation Results 65 Communicate Business Analysis Information 67 Manage Stakeholder Collaboration 71 Chapter 5: Requirements Life Cycle Management 5.1 5.2 5.3 5.4 5.5 Trace Requirements 79 Maintain Requirements 83 Prioritize Requirements 86 Assess Requirements Changes 91 Approve Requirements 95 Chapter 6: Strategy Analysis 6.1 6.2 6.3 6.4 Analyze Current State 103 Define Future State 110 Assess Risks 120 Define Change Strategy 124 Chapter 7: Requirements Analysis and Design Definition 7.1 7.2 7.3 7.4 7.5 7.6 Specify and Model Requirements 136 Verify Requirements 141 Validate Requirements 144 Define Requirements Architecture 148 Define Design Options 152 Analyze Potential Value and Recommend Solution 157 Chapter 8: Solution Evaluation 8.1 8.2 8.3 8.4 8.5 Measure Solution Performance 166 Analyze Performance Measures 170 Assess Solution Limitations 173 Assess Enterprise Limitations 177 Recommend Actions to Increase Solution Value 182 Chapter 9: Underlying Competencies 9.1 Analytical Thinking and Problem Solving 188 ii Table of Contents 9.2 9.3 9.4 9.5 9.6 Behavioural Characteristics 194 Business Knowledge 199 Communication Skills 203 Interaction Skills 207 Tools and Technology 211 Chapter 10: Techniques 10.1 10.2 10.3 10.4 10.5 10.6 10.7 10.8 10.9 10.10 10.11 10.12 10.13 10.14 10.15 10.16 10.17 10.18 10.19 10.20 10.21 10.22 10.23 10.24 10.25 10.26 10.27 10.28 10.29 10.30 10.31 10.32 Acceptance and Evaluation Criteria 217 Backlog Management 220 Balanced Scorecard 223 Benchmarking and Market Analysis 226 Brainstorming 227 Business Capability Analysis 230 Business Cases 234 Business Model Canvas 236 Business Rules Analysis 240 Collaborative Games 243 Concept Modelling 245 Data Dictionary 247 Data Flow Diagrams 250 Data Mining 253 Data Modelling 256 Decision Analysis 261 Decision Modelling 265 Document Analysis 269 Estimation 271 Financial Analysis 274 Focus Groups 279 Functional Decomposition 283 Glossary 286 Interface Analysis 287 Interviews 290 Item Tracking 294 Lessons Learned 296 Metrics and Key Performance Indicators (KPIs) 297 Mind Mapping 299 Non-Functional Requirements Analysis 302 Observation 305 Organizational Modelling 308 iii Table of Contents 10.33 10.34 10.35 10.36 10.37 10.38 10.39 10.40 10.41 10.42 10.43 10.44 10.45 10.46 10.47 10.48 10.49 10.50 Prioritization 311 Process Analysis 314 Process Modelling 318 Prototyping 323 Reviews 326 Risk Analysis and Management 329 Roles and Permissions Matrix 333 Root Cause Analysis 335 Scope Modelling 338 Sequence Diagrams 341 Stakeholder List, Map, or Personas 344 State Modelling 348 Survey or Questionnaire 350 SWOT Analysis 353 Use Cases and Scenarios 356 User Stories 359 Vendor Assessment 361 Workshops 363 Chapter 11: Perspectives 11.1 11.2 11.3 11.4 11.5 The Agile Perspective 368 The Business Intelligence Perspective 381 The Information Technology Perspective 394 The Business Architecture Perspective 408 The Business Process Management Perspective 424 Appendix A: Glossary 441 Appendix B: Techniques to Task Mapping 457 Appendix C: Contributors 473 Appendix D: Summary of Changes from BABOK® Guide v 2.0 483 iv Preface IIBA® was founded in Toronto, Canada in October of 2003 to support the business analysis community by: • creating and developing awareness and recognition of the value and contribution of the business analyst, • defining the Business Analysis Body of Knowledge® (BABOK®), • providing a forum for knowledge sharing and contribution to the business analysis profession, and • publicly recognizing and certifying qualified practitioners through an internationally acknowledged certification program. The Body of Knowledge Committee was formed in October of 2004 to define and draft a global standard for the practice of business analysis. In January of 2005, IIBA released version 1.0 of A Guide to the Business Analysis Body of Knowledge® (BABOK® Guide) for feedback and comment. That version included an outline of the proposed content and some key definitions. Version 1.4 was released in October of 2005, with draft content in some knowledge areas. Version 1.6, which included detailed information regarding most of the knowledge areas, was published in draft form in June of 2006 and updated to incorporate errata in October of 2008. The Body of Knowledge Committee developed version 2.0 of A Guide to the Business Analysis Body of Knowledge® (BABOK® Guide) with the guidance of expert writing teams, and feedback garnered from expert, practitioner, and public reviews. Version 2.0 introduced such concepts as the Requirements Classification Schema and the Input/Output models. Version 2.0 was published in 2009 and became the globally recognized standard for the practice of business analysis. Following the publication of version 2.0, IIBA sought out a number of recognized experts in business analysis and related fields and solicited their feedback on the content of that edition. The Body of Knowledge Committee used these comments to plan the vision and scope of this revision. The Body of Knowledge Committee worked with teams of expert writers to revise and update the content. The revised draft of A Guide to the Business Analysis Body of Knowledge® (BABOK® Guide) was reviewed by teams of both expert and practitioner reviewers. The Body of Knowledge Committee used the feedback provided to further enhance and refine the text and then made the content available to the business analysis community for review in 2014. The thousands of items of feedback from this public review were used to further revise the text to form A Guide to the Business Analysis Body of Knowledge® (BABOK® Guide) version 3.0. The goal of this revision was to: • incorporate new concepts and practices in use since the last revision, • address the broadening and evolving scope of the profession, • incorporate lessons learned from practitioners who have worked with the current version, • improve the readability and usability of the guide, • improve the consistency and quality of text and illustrations, and • improve consistency with other generally accepted standards relating to the practice of business analysis. v The major changes in this release include: • the inclusion of the Business Analysis Core Concept Model™ (BACCM™), • the expanded scope of the role of business analysis in creating better business outcomes, • the inclusion of Perspectives which describe specialized ways in which business analysis professionals provide unique value to the enterprise, • new and expanded Underlying Competencies to better reflect the diverse skill sets of the business analyst, and • new techniques that have emerged in the practice of business analysis. This publication supersedes A Guide to the Business Analysis Body of Knowledge® (BABOK® Guide) version 2.0. The BABOK® Guide contains a description of generally accepted practices in the field of business analysis. The content included in this release has been verified through reviews by practitioners, surveys of the business analysis community, and consultations with recognized experts in the field. The data available to IIBA demonstrates that the tasks and techniques described in this publication are in use by a majority of business analysis practitioners. As a result, we can have confidence that the tasks and techniques described in the BABOK® Guide should be applicable in most contexts where business analysis is performed, most of the time. The BABOK® Guide should not be construed to mandate that the practices described in this publication should be followed under all circumstances. Any set of practices must be tailored to the specific conditions under which business analysis is being performed. In addition, practices which are not generally accepted by the business analysis community at the time of publication may be equally effective, or more effective, than the practices described in the BABOK® Guide. As such practices become generally accepted, and as data is collected to verify their effectiveness, they will be incorporated into future editions of this publication. IIBA encourages all practitioners of business analysis to be open to new approaches and new ideas, and wishes to encourage innovation in the practice of business analysis. IIBA would like to extend its thanks and the thanks of the business analysis community to all those who volunteered their time and effort to the development of this revision, as well as those who provided informal feedback to us in other ways. vi 1 Introduction A Guide to the Business Analysis Body of Knowledge® (BABOK® Guide) is the globally recognized standard for the practice of business analysis. The BABOK® Guide describes business analysis knowledge areas, tasks, underlying competencies, techniques and perspectives on how to approach business analysis. 1.1 Purpose of the BABOK® Guide The primary purpose of the BABOK® Guide is to define the profession of business analysis and provide a set of commonly accepted practices. It helps practitioners discuss and define the skills necessary to effectively perform business analysis work. The BABOK® Guide also helps people who work with and employ business analysts to understand the skills and knowledge they should expect from a skilled practitioner. Business analysis is a broad profession in which business analysts might perform work for many different types of initiatives across an enterprise. Practitioners may employ different competencies, knowledge, skills, terminology, and attitudes that they use when performing business analysis tasks. The BABOK® Guide is a common framework for all perspectives, describing business analysis tasks that are performed to properly analyze a change or evaluate the necessity for a change. Tasks may vary in form, order, or importance for individual business analysts or for various initiatives. The six knowledge areas of the BABOK® Guide (Business Analysis Planning and Monitoring, Elicitation and Collaboration, Requirements Life Cycle Management, Strategy Analysis, Requirements Analysis and Design Definition (RADD), and 1 What is Business Analysis? Introduction Solution Evaluation) describe the practice of business analysis as it is applied within the boundaries of a project or throughout enterprise evolution and continuous improvement. The following image shows how three of the knowledge areas support the delivery of business value before, during, and after the life cycle of a project. Figure 1.1.1: Business Analysis Beyond Projects Project Pre-Project Project Post-Project Rationale Delivery Benefits Strategy Analysis RADD Solution Evaluation 1.2 What is Business Analysis? Business analysis is the practice of enabling change in an enterprise by defining needs and recommending solutions that deliver value to stakeholders. Business analysis enables an enterprise to articulate needs and the rationale for change, and to design and describe solutions that can deliver value. Business analysis is performed on a variety of initiatives within an enterprise. Initiatives may be strategic, tactical, or operational. Business analysis may be performed within the boundaries of a project or throughout enterprise evolution and continuous improvement. It can be used to understand the current state, to define the future state, and to determine the activities required to move from the current to the future state. Business analysis can be performed from a diverse array of perspectives. The BABOK® Guide describes several of these perspectives: agile, business intelligence, information technology, business architecture, and business process management. A perspective can be thought of as a lens through which the business analysis practitioner views their work activities based on the current context. One or many perspectives may apply to an initiative, and the perspectives outlined in the BABOK® Guide do not represent all the contexts for business analysis or the complete set of business analysis disciplines. 1.3 Who is a Business Analyst? A business analyst is any person who performs business analysis tasks described in the BABOK® Guide, no matter their job title or organizational role. Business analysts are responsible for discovering, synthesizing, and analyzing information 2 Structure of the BABOK® Guide Introduction from a variety of sources within an enterprise, including tools, processes, documentation, and stakeholders. The business analyst is responsible for eliciting the actual needs of stakeholders—which frequently involves investigating and clarifying their expressed desires—in order to determine underlying issues and causes. Business analysts play a role in aligning the designed and delivered solutions with the needs of stakeholders. The activities that business analysts perform include: • understanding enterprise problems and goals, • analyzing needs and solutions, • devising strategies, • driving change, and • facilitating stakeholder collaboration. Other common job titles for people who perform business analysis include: • business architect, • business systems analyst, • data analyst, • enterprise analyst, • management consultant, • process analyst, • product manager, • product owner, • requirements engineer, and • systems analyst. 1.4 Structure of the BABOK® Guide The core content of the BABOK® Guide is composed of business analysis tasks organized into knowledge areas. Knowledge areas are a collection of logically (but not sequentially) related tasks. These tasks describe specific activities that accomplish the purpose of their associated knowledge area. The Business Analysis Key Concepts, Underlying Competencies, Techniques, and Perspectives sections form the extended content in the BABOK® Guide that helps guide business analysts to better perform business analysis tasks. • Business Analysis Key Concepts: define the key terms needed to understand all other content, concepts, and ideas within the BABOK® Guide. • Underlying Competencies: provide a description of the behaviours, characteristics, knowledge, and personal qualities that support the effective practice of business analysis. 3 Structure of the BABOK® Guide Introduction • Techniques: provide a means to perform business analysis tasks. The techniques described in the BABOK® Guide are intended to cover the most common and widespread techniques practiced within the business analysis community. • Perspectives: describe various views of business analysis. Perspectives help business analysts working from various points of view to better perform business analysis tasks, given the context of the initiative. 1.4.1 Key Concepts The Business Analysis Key Concepts chapter provides a basic understanding of the central ideas necessary for understanding the BABOK® Guide. This chapter consists of: • Business Analysis Core Concept Model™ (BACCM™) • Key Terms • Requirements Classification Schema • Stakeholders • Requirements and Design 1.4.2 Knowledge Areas Knowledge areas represent areas of specific business analysis expertise that encompass several tasks. The six knowledge areas are: Each knowledge area includes a visual representation of its inputs and outputs. • Business Analysis Planning and Monitoring: describes the tasks that business analysts perform to organize and coordinate the efforts of business analysts and stakeholders. These tasks produce outputs that are used as key inputs and guidelines for the other tasks throughout the BABOK® Guide. • Elicitation and Collaboration: describes the tasks that business analysts perform to prepare for and conduct elicitation activities and confirm the results obtained. It also describes the communication with stakeholders once the business analysis information is assembled and the ongoing collaboration with them throughout the business analysis activities. • Requirements Life Cycle Management: describes the tasks that business analysts perform in order to manage and maintain requirements and design information from inception to retirement. These tasks describe establishing meaningful relationships between related requirements and designs, and assessing, analyzing and gaining consensus on proposed changes to requirements and designs. • Strategy Analysis: describes the business analysis work that must be performed to collaborate with stakeholders in order to identify a need of strategic or tactical importance (the business need), enable the enterprise to 4 Structure of the BABOK® Guide Introduction address that need, and align the resulting strategy for the change with higher- and lower-level strategies. • Requirements Analysis and Design Definition: describes the tasks that business analysts perform to structure and organize requirements discovered during elicitation activities, specify and model requirements and designs, validate and verify information, identify solution options that meet business needs, and estimate the potential value that could be realized for each solution option. This knowledge area covers the incremental and iterative activities ranging from the initial concept and exploration of the need through the transformation of those needs into a particular recommended solution. • Solution Evaluation: describes the tasks that business analysts perform to assess the performance of and value delivered by a solution in use by the enterprise, and to recommend removal of barriers or constraints that prevent the full realization of the value. The following diagram shows a general relationship between the knowledge areas. Figure 1.4.1: Relationships Between Knowledge Areas Business Analysis Planning and Monitoring Strategy Analysis Requirements Analysis and Design Definition Elicitation and Collaboration Requirements Life Cycle Management Solution Evaluation 1.4.3 Tasks A task is a discrete piece of work that may be performed formally or informally as part of business analysis. The BABOK® Guide defines a list of business analysis tasks. The definition of a given task is universally applicable to business analysis efforts, independent of the initiative type. A business analyst may perform other 5 Structure of the BABOK® Guide Introduction activities as assigned by their organization, but these additional activities are not considered to be part of the business analysis profession. Tasks are grouped into knowledge areas. Business analysts perform tasks from all knowledge areas sequentially, iteratively, or simultaneously. The BABOK® Guide does not prescribe a process or an order in which tasks are performed. Tasks may be performed in any order, as long as the necessary inputs to a task are present. A business analysis initiative may start with any task, although likely candidates are Analyze Current State (p. 103) or Measure Solution Performance (p. 166). Each task in the BABOK® Guide is presented in the following format: • Purpose • Description • Inputs • Elements • Guidelines/Tools • Techniques • Stakeholders • Outputs .1 Purpose The Purpose section provides a short description of the reason for a business analyst to perform the task, and the value created through performing the task. .2 Description The Description section explains in greater detail what the task is, why it is performed, and what it should accomplish. .3 Inputs The Inputs section lists the inputs for the task. Inputs are information consumed or transformed to produce an output, and represent the information necessary for a task to begin. They may be explicitly generated outside the scope of business analysis or generated by a business analysis task. Inputs that are generated outside of the business analysis efforts are identified with the qualifier '(external)' in the input list. There is no assumption that the presence of an input means that the associated deliverable is complete or in its final state. The input only needs to be sufficiently complete to allow successive work to begin. Any number of instances of an input may exist during the life cycle of an initiative. The Inputs section includes a visual representation of the inputs and outputs, the other tasks that use the outputs, as well as the guidelines and tools listed in the task. 6 Structure of the BABOK® Guide Introduction .4 Elements The Elements section describes the key concepts that are needed to understand how to perform the task. Elements are not mandatory as part of performing a task, and their usage might depend upon the business analysis approach. .5 Guidelines and Tools The Guidelines and Tools section lists resources that are required to transform the input into an output. A guideline provides instructions or descriptions on why or how to undertake a task. A tool is something used to undertake a task. Guidelines and tools can include outputs of other tasks. .6 Techniques The Techniques section lists the techniques that can be used to perform the business analysis task. .7 Stakeholders The Stakeholders section is composed of a generic list of stakeholders who are likely to participate in performing that task or who will be affected by it. The BABOK® Guide does not mandate that these roles be filled for any given initiative. .8 Outputs The Outputs section describes the results produced by performing the task. Outputs are created, transformed, or changed in state as a result of the successful completion of a task. An output may be a deliverable or be a part of a larger deliverable. The form of an output is dependent on the type of initiative underway, standards adopted by the organization, and best judgment of the business analyst as to an appropriate way to address the information needs of key stakeholders. As with inputs, an instance of a task may be completed without an output being in its final state. Tasks that use a specific output do not necessarily have to wait for its completion for work within the task to begin. 1.4.4 Underlying Competencies Underlying competencies reflect knowledge, skills, behaviours, characteristics, and personal qualities that help one successfully perform the role of the business analyst. These underlying competencies are not unique to the business analysis profession. However, successful execution of tasks and techniques is often dependent on proficiency in one or more underlying competencies. Underlying competencies have the following structure: • Purpose • Definition • Effectiveness Measures 7 Structure of the BABOK® Guide Introduction .1 Purpose The Purpose section describes why it is beneficial for business analysts to have this underlying competency. .2 Definition The Definition section describes the skills and expertise involved in the application of this competency. .3 Effectiveness Measures The Effectiveness Measures section describes how to determine whether a person is demonstrating skills in this underlying competency. 1.4.5 Techniques Techniques provide additional information on ways that a task may be performed. The list of techniques included in the BABOK® Guide is not exhaustive. There are multiple techniques that may be applied alternatively or in conjunction with other techniques to accomplish a task. Business analysts are encouraged to modify existing techniques or engineer new ones to best suit their situation and the goals of the tasks they perform. Techniques have the following structure: • Purpose • Description • Elements • Usage Considerations .1 Purpose The Purpose section describes what the technique is used for and the circumstances under which it is most likely to be applicable. .2 Description The Description section describes what the technique is and how it is used. .3 Elements The Elements section describes key concepts that are needed to understand how to use the technique. .4 Usage Considerations The Usage Considerations section describes the conditions under which the technique may be more or less effective. 8 Structure of the BABOK® Guide Introduction 1.4.6 Perspectives Perspectives are used within business analysis work to provide focus to tasks and techniques specific to the context of the initiative. Most initiatives are likely to engage one or more perspectives. The perspectives included in the BABOK® Guide are: • Agile • Business Intelligence • Information Technology • Business Architecture • Business Process Management These perspectives do not presume to represent all the possible perspectives from which business analysis is practiced. The perspectives discussed in the BABOK® Guide represent some of the more common views of business analysis at the time of writing. Perspectives are not mutually exclusive, in that a given initiative might employ more than one perspective. Perspectives have the following structure: • Change Scope • Business Analysis Scope • Methodologies, Approaches, and Techniques • Underlying Competencies • Impact on Knowledge Areas .1 Change Scope The Change Scope section describes what parts of the enterprise the change encompasses when viewed from this perspective and to what extent it impacts both the objectives and operations of the enterprise. The change scope also identifies the type of problems solved, the nature of the solutions being sought, and the approach to delivering these solutions and measuring their value. .2 Business Analysis Scope The Business Analysis Scope section describes the key stakeholders, including a profile of the likely types of sponsors, the target stakeholders, and the business analyst's role within an initiative. It also defines likely outcomes that would be expected from business analysis work in this perspective. .3 Methodologies, Approaches, and Techniques The composition of this section is unique to each perspective. In each case it describes the methodologies, approaches, or techniques that are common and specific to the application of business analysis in the perspective. Methodologies 9 Structure of the BABOK® Guide Introduction and approaches are specialized ways of undertaking the business analysis work. The techniques included in this section are techniques that are not included in the Techniques chapter of the BABOK® Guide but are especially relevant to the perspective. In the Business Architecture perspective, reference models are listed instead of methodologies or approaches. In the Business Process Management perspective, frameworks are listed instead of approaches. .4 Underlying Competencies The Underlying Competencies section describes the competencies that are most prevalent in the perspective. .5 Impact on Knowledge Areas The Impact on Knowledge Areas section describes how knowledge areas are applied or modified. It also explains how specific activities within a perspective are mapped to tasks in the BABOK® Guide. 10 2 Business Analysis Key Concepts The Business Analysis Key Concepts chapter includes information that provides a foundation for all other content, concepts, and ideas within the BABOK® Guide. It provides business analysts with a basic understanding of the central ideas necessary for understanding and employing the BABOK® Guide in their daily practice of business analysis. This chapter consists of: • Business Analysis Core Concept Model™ (BACCM™): defines a conceptual framework for the business analysis profession. • Key Terms: provides definitions of essential concepts, which are highlighted because of their importance to the BABOK® Guide. • Requirements Classification Schema: identifies levels or types of requirements that assist the business analyst and other stakeholders in categorizing requirements. • Stakeholders: defines roles, and characteristics of groups or individuals participating in or affected by the business analysis activities within a change. • Requirements and Designs: describes the distinction between—and the importance of—requirements and designs as they relate to business analysis. 11 The Business Analysis Core Concept Model™ 2.1 Business Analysis Key Concepts The Business Analysis Core Concept Model™ The Business Analysis Core Concept Model™ (BACCM™) is a conceptual framework for business analysis. It encompasses what business analysis is and what it means to those performing business analysis tasks regardless of perspective, industry, methodology, or level in the organization. It is composed of six terms that have a common meaning to all business analysts and helps them discuss both business analysis and its relationships with common terminology. Each of these terms is considered to be a core concept. The six core concepts in the BACCM are: Change, Need, Solution, Stakeholder, Value, and Context. Each core concept is an idea fundamental to the practice of business analysis, and all the concepts are equal and necessary. Each core concept is defined by the other five core concepts and cannot be fully understood until all the concepts are understood. No single concept holds greater importance or significance over any other concept. These concepts are instrumental to understanding the type of information elicited, analyzed, or managed in business analysis tasks. The BACCM can be used to: • describe the profession and domain of business analysis, • communicate about business analysis with a common terminology, • evaluate the relationships of key concepts in business analysis, • perform better business analysis by holistically evaluating the relationships among these six concepts, and • evaluate the impact of these concepts and relationships at any point during a work effort in order to establish both a foundation and a path forward. Table 2.1.1: The BACCM Core Concept Description Change The act of transformation in response to a need. Change works to improve the performance of an enterprise. These improvements are deliberate and controlled through business analysis activities. Need A problem or opportunity to be addressed. Needs can cause changes by motivating stakeholders to act. Changes can also cause needs by eroding or enhancing the value delivered by existing solutions. Solution A specific way of satisfying one or more needs in a context. A solution satisfies a need by resolving a problem faced by stakeholders or enabling stakeholders to take advantage of an opportunity. 12 Business Analysis Key Concepts The Business Analysis Core Concept Model™ Table 2.1.1: The BACCM (Continued) Core Concept Description Stakeholder A group or individual with a relationship to the change, the need, or the solution. Stakeholders are often defined in terms of interest in, impact on, and influence over the change. Stakeholders are grouped based on their relationship to the needs, changes, and solutions. Value The worth, importance, or usefulness of something to a stakeholder within a context. Value can be seen as potential or realized returns, gains, and improvements. It is also possible to have a decrease in value in the form of losses, risks, and costs. Value can be tangible or intangible. Tangible value is directly measurable. Tangible value often has a significant monetary component. Intangible value is measured indirectly. Intangible value often has a significant motivational component, such as a company's reputation or employee morale. In some cases, value can be assessed in absolute terms, but in many cases is assessed in relative terms: one solution option is more valuable than another from the perspective of a given set of stakeholders. Context The circumstances that influence, are influenced by, and provide understanding of the change. Changes occur within a context. The context is everything relevant to the change that is within the environment. Context may include attitudes, behaviours, beliefs, competitors, culture, demographics, goals, governments, infrastructure, languages, losses, processes, products, projects, sales, seasons, terminology, technology, weather, and any other element meeting the definition. The core concepts can be used by business analysts to consider the quality and completeness of the work being done. Within each knowledge area description there are examples of how the core concepts may be used and/or applied during the tasks within the knowledge area. While planning or performing a task or technique, business analysts can consider how each core concept is addressed by asking questions such as: • What are the kinds of changes we are doing? • What are the needs we are trying to satisfy? • What are the solutions we are creating or changing? 13 Key Terms Business Analysis Key Concepts • Who are the stakeholders involved? • What do stakeholders consider to be of value? • What are the contexts that we and the solution are in? If any of the core concepts experience a change, it should cause us to re-evaluate these core concepts and their relationships to value delivery. Figure 2.1.1: The BACCM Changes Needs Solutions Stakeholders Contexts Value 2.2 Key Terms Business Analysis For more information, see What is Business Analysis? (p. 2). The BABOK® Guide describes and defines business analysis as the practice of enabling change in an enterprise by defining needs and recommending solutions that deliver value to stakeholders. Business Analysis Information Business analysis information refers to the broad and diverse sets of information that business analysts analyze, transform, and report. It is information of any 14 Business Analysis Key Concepts Key Terms kind—at any level of detail—that is used as an input to, or is an output of, business analysis work. Examples of business analysis information include elicitation results, requirements, designs, solution options, solution scope, and change strategy. It is essential to expand the object of many business analysis activities from 'requirements' to 'information' to ensure that all inputs and outputs of business analysis are subject to the tasks and activities described in the BABOK® Guide. For example, when performing 'Plan Business Analysis Information Management' it includes all the examples listed above. If the BABOK® Guide described 'Plan Requirements Management', it would exclude important outputs like elicitation results, solution options, and change strategy. Design For more information, see Requirements and Designs (p. 19). A design is a usable representation of a solution. Design focuses on understanding how value might be realized by a solution if it is built. The nature of the representation may be a document (or set of documents) and can vary widely depending on the circumstances. Enterprise An enterprise is a system of one or more organizations and the solutions they use to pursue a shared set of common goals. These solutions (also referred to as organizational capabilities) can be processes, tools or information. For the purpose of business analysis, enterprise boundaries can be defined relative to the change and need not be constrained by the boundaries of a legal entity, organization, or organizational unit. An enterprise may include any number of business, government, or any other type of organization. Organization An autonomous group of people under the management of a single individual or board, that works towards common goals and objectives. Organizations often have a clearly defined boundary and operate on a continuous basis, as opposed to an initiative or project team, which may be disbanded once its objectives are achieved. Plan A plan is a proposal for doing or achieving something. Plans describe a set of events, the dependencies among the events, the expected sequence, the schedule, the results or outcomes, the materials and resources needed, and the stakeholders involved. Requirement For more information, see Requirements and Designs (p. 19). A requirement is a usable representation of a need. Requirements focus on understanding what kind of value could be delivered if a requirement is fulfilled. The nature of the representation may be a document (or set of documents), but can vary widely depending on the circumstances. 15 Requirements Classification Schema Business Analysis Key Concepts Risk Risk is the effect of uncertainty on the value of a change, a solution, or the enterprise. Business analysts collaborate with other stakeholders to identify, assess, and prioritize risks, and to deal with those risks by altering the likelihood of the conditions or events that lead to the uncertainty: mitigating the consequences, removing the source of the risk, avoiding the risk altogether by deciding not to start or continue with an activity that leads to the risk, sharing the risk with other parties, or accepting or even increasing the risk to deal with an opportunity. 2.3 Requirements Classification Schema For the purposes of the BABOK® Guide, the following classification schema describes requirements: • Business requirements: statements of goals, objectives, and outcomes that describe why a change has been initiated. They can apply to the whole of an enterprise, a business area, or a specific initiative. • Stakeholder requirements: describe the needs of stakeholders that must be met in order to achieve the business requirements. They may serve as a bridge between business and solution requirements. • Solution requirements: describe the capabilities and qualities of a solution that meets the stakeholder requirements. They provide the appropriate level of detail to allow for the development and implementation of the solution. Solution requirements can be divided into two sub-categories: • functional requirements: describe the capabilities that a solution must have in terms of the behaviour and information that the solution will manage, and For more information, see Non-Functional Requirements Analysis (p. 302). 2.4 • non-functional requirements or quality of service requirements: do not relate directly to the behaviour of functionality of the solution, but rather describe conditions under which a solution must remain effective or qualities that a solution must have. • Transition requirements: describe the capabilities that the solution must have and the conditions the solution must meet to facilitate transition from the current state to the future state, but which are not needed once the change is complete. They are differentiated from other requirements types because they are of a temporary nature. Transition requirements address topics such as data conversion, training, and business continuity. Stakeholders Each task includes a list of stakeholders who are likely to participate in the execution of that task or who will be affected by it. A stakeholder is an individual or group that a business analyst is likely to interact with directly or indirectly. The 16 Business Analysis Key Concepts Stakeholders BABOK® Guide does not mandate that these roles be filled for any given initiative. Any stakeholder can be a source of requirements, assumptions, or constraints. This list is not intended to be an exhaustive list of all possible stakeholder classifications. Some additional examples of people who fit into each of these generic roles are listed in the definitions below. In most cases there will be multiple stakeholder roles found within each category. Similarly, a single individual may fill more than one role. For the purpose of the BABOK® Guide, the generic list of stakeholders includes the following roles: 2.4.1 • business analyst, • operational support, • customer, • project manager, • domain subject matter expert, • regulator, • end user, • sponsor, • implementation subject matter expert, • supplier, and • tester. Business Analyst The business analyst is inherently a stakeholder in all business analysis activities. The BABOK® Guide presumes that the business analyst is responsible and accountable for the execution of these activities. In some cases the business analyst may also be responsible for performing activities that fall under another stakeholder role. 2.4.2 Customer A customer uses or may use products or services produced by the enterprise and may have contractual or moral rights that the enterprise is obliged to meet. 2.4.3 Domain Subject Matter Expert A domain subject matter expert is any individual with in-depth knowledge of a topic relevant to the business need or solution scope. This role is often filled by people who may be end users or people who have in-depth knowledge of the solution such as managers, process owners, legal staff, consultants, and others. 2.4.4 End User End users are stakeholders who directly interact with the solution. End users can include all participants in a business process, or who use the product or solution. 2.4.5 Implementation Subject Matter Expert An implementation subject matter expert is any stakeholder who has specialized knowledge regarding the implementation of one or more solution components. 17 Stakeholders Business Analysis Key Concepts While it is not possible to define a listing of implementation subject matter expert roles that are appropriate for all initiatives, some of the most common roles are: project librarian, change manager, configuration manager, solution architect, developer, database administrator, information architect, usability analyst, trainer, and organizational change consultant. 2.4.6 Operational Support Operational support is responsible for the day-to-day management and maintenance of a system or product. While it is not possible to define a listing of operational support roles that are appropriate for all initiatives, some of the most common roles are: operations analyst, product analyst, help desk, and release manager. 2.4.7 Project Manager Project managers are responsible for managing the work required to deliver a solution that meets a business need, and for ensuring that the project's objectives are met while balancing the project factors including scope, budget, schedule, resources, quality, and risk. While it is not possible to completely define a listing of project management roles that are appropriate for all initiatives, some of the most common roles are: project lead, technical lead, product manager, and team leader. 2.4.8 Regulator Regulators are responsible for the definition and enforcement of standards. Standards can be imposed on the solution by regulators through legislation, corporate governance standards, audit standards, or standards defined by organizational centers of competency. Alternate roles are government, regulatory bodies, and auditor. 2.4.9 Sponsor Sponsors are responsible for initiating the effort to define a business need and develop a solution that meets that need. They authorize the work to be performed, and control the budget and scope for the initiative. Alternate roles are executive and project sponsor. 2.4.10 Supplier A supplier is a stakeholder outside the boundary of a given organization or organizational unit. Suppliers provide products or services to the organization and may have contractual or moral rights and obligations that must be considered. Alternate roles are providers, vendors, and consultants. 18 Business Analysis Key Concepts 2.4.11 Requirements and Designs Tester Testers are responsible for determining how to verify that the solution meets the requirements defined by the business analyst, as well as conducting the verification process. Testers also seek to ensure that the solution meets applicable quality standards, and that the risk of defects or failures is understood and minimized. An alternate role is quality assurance analyst. 2.5 Requirements and Designs Eliciting, analyzing, validating, and managing requirements have consistently been recognized as key activities of business analysis. However, it is important to recognize that business analysts are also responsible for the definition of design, at some level, in an initiative. The level of responsibility for design varies based on the perspective within which a business analyst is working. Requirements are focused on the need; designs are focused on the solution. The distinction between requirements and designs is not always clear. The same techniques are used to elicit, model, and analyze both. A requirement leads to a design which in turn may drive the discovery and analysis of more requirements. The shift in focus is often subtle. The classification as a requirement or a design may become less significant as the business analyst's work progresses to a greater understanding of and eventual fulfillment of the need. The tasks in the BABOK® Guide such as Trace Requirements (p. 79) or Specify and Model Requirements (p. 136) may refer to requirements, but the intent is to include designs as well. Business analysis can be complex and recursive. A requirement (or set of requirements) may be used to define a design. That design may then be used to elicit additional requirements that are used to define more detailed designs. The business analyst may hand off requirements and designs to other stakeholders who may further elaborate on the designs. Whether it is the business analyst or some other role that completes the designs, the business analyst often reviews the final designs to ensure that they align with the requirements. The following table provides some basic examples of how information may be viewed as either a requirement or a design. Table 2.5.1: Requirements and Design Requirement Design View six months sales data across multiple organizational units in a single view. A sketch of a dashboard. Reduce amount of time required to pick and pack a customer order. Process model. Record and access a medical patient’s history. Screen mock-up showing specific data fields. 19 Requirements and Designs Business Analysis Key Concepts Table 2.5.1: Requirements and Design (Continued) Requirement Design Develop business strategy, goals, and objectives for a new business. Business Capability Model. Provide information in English and French. Prototype with text displayed in English and French. Stakeholders may present a need or a solution to an assumed need. A business analyst uses activities found in Elicitation and Collaboration (p. 53), Strategy Analysis (p. 99), Requirements Analysis and Design Definition (p. 133), and Solution Evaluation (p. 163) to transform that request into a requirement or design. Regardless of the focus of the stakeholder, the importance of the role of the business analyst lies in continuously asking the question ‘why?’. For example, “Why is either the requirement or design necessary to provide value to an enterprise and to facilitate the realization of an enterprise’s goals and objectives?” Figure 2.5.1: Requirements and Design Cycle es om c ut Why do I want it? De s n ig As se ss O Business Requirements Transition Requirements What are the conditions? Cycle continues until requirements are met. s gn De ig Stakeholder Requirements What are the needs? n Solution Requirements What do I want? 20 De si 3 Business Analysis Planning and Monitoring The Business Analysis Planning and Monitoring knowledge area tasks organize and coordinate the efforts of business analysts and stakeholders. These tasks produce outputs that are used as key guidelines for the other tasks throughout the BABOK® Guide. The Business Analysis Planning and Monitoring knowledge area includes the following tasks: • Plan Business Analysis Approach: describes the planning of business analysis work from creation or selection of a methodology to planning the individual activities, tasks, and deliverables. • Plan Stakeholder Engagement: describes understanding which stakeholders are relevant to the change, what business analysts need from them, what they need from business analysts, and the best way to collaborate. • Plan Business Analysis Governance: defines the components of business analysis that are used to support the governance function of the organization. It helps ensure that decisions are made properly and consistently, and follows a process that ensures decision makers have the information they need. Examples of this include requirements management, business analysis risk management, and allocation of business analysis resources. • Plan Business Analysis Information Management: defines how information developed by business analysts (including requirements and designs) is captured, stored, and integrated with other information for long-term use. 21 Business Analysis Planning and Monitoring • Identify Business Analysis Performance Improvements: describes managing and monitoring how business analysis work is performed to ensure that commitments are met and continuous learning and improvement opportunities are realized. The Core Concept Model in Business Analysis Planning and Monitoring The Business Analysis Core Concept Model™ (BACCM™) describes the relationships among the six core concepts. The following table describes the usage and application of each of the core concepts within the context of Business Analysis Planning and Monitoring. Table 3.0.1: The Core Concept Model in Business Analysis Planning and Monitoring Core Concept During Business Analysis Planning and Monitoring, business analysts... Change: the act of transformation in response to a need. are responsible for determining how changes to business analysis results will be requested and authorized. Need: a problem or opportunity to be addressed. choose a business analysis approach that provides adequate analysis for the change. Solution: a specific way of satisfying one or more needs in a context. evaluate if business analysis performance was a key contributor to the successful implementation of a solution. Stakeholder: a group or individual with a relationship to the change, the need, or the solution. perform a stakeholder analysis to ensure planning and monitoring activities reflect stakeholder needs and account for stakeholder characteristics. Value: the worth, importance, or usefulness of something to a stakeholder within a context. conduct performance analysis to ensure business analysis activities continue to produce sufficient value for the stakeholders. Context: the circumstances that influence, are influenced by, and provide understanding of the change. ensure a complete understanding of the context under analysis in order to develop an efficient business analysis approach. 22 Business Analysis Planning and Monitoring Figure 3.0.1: Business Analysis Planning and Monitoring Input/Output Diagram Input Performance Objectives (external) Needs Tasks 3.1 Plan Business Analysis Approach 3.2 Plan Stakeholder Engagement 3.4 Plan Business Analysis Information Management 3.3 Plan Business Analysis Governance 3.5 Identify Business Analysis Performance Improvements Output 3.1 Business Analysis Approach 3.2 Stakeholder Engagement Approach 3.4 Information Management Approach 3.3 Governance Approach 3.5 Business Analysis Performance Assessment 23 Plan Business Analysis Approach 3.1 3.1.1 Business Analysis Planning and Monitoring Plan Business Analysis Approach Purpose The purpose of Plan Business Analysis Approach is to define an appropriate method to conduct business analysis activities. 3.1.2 Description Business analysis approaches describe the overall method that will be followed when performing business analysis work on a given initiative, how and when tasks will be performed, and the deliverables that will be produced. The business analyst may also identify an initial set of techniques to use. This list may change as the initiative proceeds and the business analyst gains a deeper understanding of the change and its stakeholders. The business analysis approach may be defined by a methodology or by organizational standards. In some organizations, elements of the business analysis approach may be standardized and formalized into a repeatable business analysis process which can be leveraged for each effort. Even where a standard approach exists, it may be tailored to the needs of a specific initiative. Tailoring may be governed by standards that define which approaches are permitted, which elements of those processes may be tailored, and general guidelines for selecting a process. If organizational standards do not exist, the business analyst works with the appropriate stakeholders to determine how the work will be completed. For example, if the change is delivered via a project, the standards and approach may be developed during the project planning phase. The business analysis approach should: • align to the overall goals of the change, • coordinate the business analysis tasks with the activities and deliverables of the overall change, • include tasks to manage any risks that could reduce the quality of business analysis deliverables or impede task efficiency, and • leverage approaches and select techniques and tools that have historically worked well. 3.1.3 Inputs • Needs: the business analysis approach is shaped by the problem or opportunity faced by the organization. It is necessary to consider what is known about the need at the time of planning, while acknowledging that understanding evolves throughout business analysis activities. 24 Business Analysis Planning and Monitoring Plan Business Analysis Approach Figure 3.1.1: Plan Business Analysis Approach Input/Output Diagram Input Guidelines and Tools Business Analysis Performance Assessment Needs Business Policies 3.1 Plan Business Analysis Approach Expert Judgment Methodologies and Frameworks Output Stakeholder Engagement Approach 3.1 Business Analysis Approach Tasks Using This Output 3.2 Plan Stakeholder Engagement 3.3 Plan Business Analysis Governance 3.4 Plan Business Analysis Information Management 3.5 Identify Business Analysis Performance Improvements 4.1 Prepare for Elicitation 4.2 Conduct Elicitation 4.4 Communicate Business Analysis Information 4.5 Manage Stakeholder Collaboration 6.1 Analyze Current State 6.4 Define Change Strategy 25 6.3 Assess Risks Plan Business Analysis Approach 3.1.4 Business Analysis Planning and Monitoring Elements .1 Planning Approach There are various planning methods used across perspectives, industries, and enterprises. Many planning methods fit somewhere along a continuum between predictive and adaptive approaches. Predictive approaches focus on minimizing upfront uncertainty and ensuring that the solution is defined before implementation begins in order to maximize control and minimize risk. These approaches are often preferred in situations where requirements can effectively be defined ahead of implementation, the risk of an incorrect implementation is unacceptably high, or when engaging stakeholders presents significant challenges. Adaptive approaches focus on rapid delivery of business value in short iterations in return for acceptance of a higher degree of uncertainty regarding the overall delivery of the solution. These approaches tend to be preferred when taking an exploratory approach to finding the best solution or for incremental improvement of an existing solution. Different approaches may be used within the same initiative. Among other factors, the business analyst may consider the organization’s standards, tolerance for uncertainty, and previous experience with different approaches when planning for business analysis activities. Regardless of the approach, planning is an essential task to ensure value is delivered to an enterprise. Planning typically occurs more than once on a given initiative as plans are updated to address changing business conditions and newly raised issues. The business analysis approach should describe how plans will be altered if changes are required. .2 Formality and Level of Detail of Business Analysis Deliverables When defining the business analysis approach, consider the level of formality that is appropriate for approaching and planning the initiative. Predictive approaches typically call for formal documentation and representations. Business analysis information may be captured in a formal document or set of representations following standardized templates. Information is captured at various levels of detail. The specific content and format of business analysis information can vary depending on the organizational methodologies, processes, and templates in use. Adaptive approaches favour defining requirements and designs through team interaction and gathering feedback on a working solution. Mandatory requirements representations are often limited to a prioritized requirements list. Additional business analysis documentation may be created at the discretion of the team, and generally consists of models developed to enhance the team’s understanding of a specific problem. Formal documentation is often produced after the solution is implemented to facilitate knowledge transfer. 26 Business Analysis Planning and Monitoring Plan Business Analysis Approach Other considerations that may affect the approach include: • the change is complex and high risk, • the organization is in, or interacts with, heavily regulated industries, • contracts or agreements necessitate formality, • stakeholders are geographically distributed, • resources are outsourced, • staff turnover is high and/or team members may be inexperienced, • requirements must be formally signed off, and • business analysis information must be maintained long-term or handed over for use on future initiatives. Figure 3.1.2: Formality and Level of Detail of Business Analysis Deliverables Approach Predictive Adaptive Solution Definition Defined before implementation to maximize control and minimize risk. Defined in iterations to arrive at best solution or improve an existing solution. Level of Formality Formal—information is captured in standardized templates. Informal—information is gathered through team interaction and feedback. Activities Activities required to complete deliverables are identified first and then divided into tasks. Activities are divided into iterations with deliverables first and then the associated tasks are identified. Tasks are performed in specific phases. Tasks are performed iteratively. Timing .3 Business Analysis Activities A business analysis approach provides a description of the types of activities that the business analyst will perform. Frequently the organization’s adopted methodologies influence the activities that are selected. Integrating business analysis activities in the business analysis approach includes: • identifying the activities required to complete each deliverable and then breaking each activity into tasks, • dividing the work into iterations, identifying the deliverables for each iteration, and then identifying the associated activities and tasks, or 27 Plan Business Analysis Approach Business Analysis Planning and Monitoring • using a previous similar initiative as an outline and applying the detailed tasks and activities unique to the current initiative. .4 Timing of Business Analysis Work Business analysts determine when the business analysis tasks need to be performed and if the level of business analysis effort will need to vary over time. This type of planning includes determining whether the business analysis tasks performed within the other knowledge areas will be performed primarily in specific phases or iteratively over the course of the initiative. The timing of business analysis activities can also be affected by: • the availability of resources, • priority and/or urgency of the initiative, • other concurrent initiatives, or • constraints such as contract terms or regulatory deadlines. .5 Complexity and Risk The complexity and size of the change and the overall risk of the effort to the organization are considered when determining the business analysis approach. As complexity and risk increase or decrease, the nature and scope of business analysis work can be altered and reflected in the approach. The approach may also be altered based on the number of stakeholders or business analysis resources involved in the initiative. As the number of stakeholders increases, the approach may be adjusted to include additional process steps to better manage the business analysis work. Other factors that can impact complexity include: • size of the change, • number of business areas or systems affected, • geographic and cultural considerations, • technological complexities, and • any risks that could impede the business analysis effort. Factors that can impact the risk level of a business analysis effort include: • experience level of the business analyst, • extent of domain knowledge held by the business analyst, • level of experience stakeholders have in communicating their needs, • stakeholder attitudes about the change and business analysis in general, • amount of time allocated by stakeholders to the business analysis activities, • any pre-selected framework, methodology, tools, and/or techniques 28 Business Analysis Planning and Monitoring Plan Business Analysis Approach imposed by organizational policies and practices, and • cultural norms of the organization. .6 Acceptance The business analysis approach is reviewed and agreed upon by key stakeholders. In some organizations, the business analysis process may be more structured and require key stakeholders to sign off on the approach to ensure all business analysis activities have been identified, estimates are realistic, and the proposed roles and responsibilities are correct. Any issues raised by stakeholders when reviewing the approach are documented by the business analyst and resolutions are sought. Stakeholders also play a role in reviewing and accepting changes to the approach as alterations are made to accommodate changing conditions across the initiative. 3.1.5 Guidelines and Tools • Business Analysis Performance Assessment: provides results of previous assessments that should be reviewed and incorporated into all planning approaches. • Business Policies: define the limits within which decisions must be made. They may be described by regulations, contracts, agreements, deals, warranties, certifications, or other legal obligations. These policies can influence the business analysis approach. • Expert Judgment: used to determine the optimal business analysis approach. Expertise may be provided from a wide range of sources including stakeholders on the initiative, organizational Centres of Excellence, consultants, or associations and industry groups. Prior experiences of the business analyst and other stakeholders should be considered when selecting or modifying an approach. • Methodologies and Frameworks: shape the approach that will be used by providing methods, techniques, procedures, working concepts, and rules. They may need to be tailored to better meet the needs of the specific business challenge. • Stakeholder Engagement Approach: understanding the stakeholders and their concerns and interests may influence decisions made when determining the business analysis approach. 3.1.6 Techniques • Brainstorming: used to identify possible business analysis activities, techniques, risks and other relevant items to help build the business analysis approach. • Business Cases: used to understand whether elements of the problem or opportunity are especially time-sensitive, high-value, or whether there is any particular uncertainty around elements of the possible need or solution. 29 Plan Business Analysis Approach Business Analysis Planning and Monitoring • Document Analysis: used to review existing organizational assets that might assist in planning the approach. • Estimation: used to determine how long it may take to perform business analysis activities. • Financial Analysis: used to assess how different approaches (and the supported delivery options) affect the value delivered. • Functional Decomposition: used to break down complex business analysis processes or approaches into more feasible components. • Interviews: used to help build the plan with an individual or small group. • Item Tracking: used to track any issues raised during planning activities with stakeholders. Can also track risk related items raised during discussions when building the approach. • Lessons Learned: used to identify an enterprise’s previous experience (both successes and challenges) with planning business analysis approach. • Process Modelling: used to define and document the business analysis approach. • Reviews: used to validate the selected business analysis approach with stakeholders. • Risk Analysis and Management: used to assess risks in order to select the proper business analysis approach. • Scope Modelling: used to determine the boundaries of the solution as an input to planning and to estimating. • Survey or Questionnaire: used to identify possible business analysis activities, techniques, risks and other relevant items to help build the business analysis approach. • Workshops: used to help build the plan in a team setting. 3.1.7 Stakeholders • Domain Subject Matter Expert: can be a source of risk when their involvement is required and availability is lacking. The approach taken may depend on availability and level of their involvement with the initiative. • Project Manager: determines that the approach is realistic for the overall schedule and timelines. The business analysis approach must be compatible with other activities. • Regulator: may be needed to provide approval for aspects of the business analysis approach or decisions made in tailoring the process, especially in organizations where the business analysis process is audited. • Sponsor: can provide needs and objectives for the approach and ensures that organizational policies are followed. The selected approach may depend on availability and involvement with the initiative. 30 Business Analysis Planning and Monitoring 3.1.8 Plan Stakeholder Engagement Outputs • Business Analysis Approach: identifies the business analysis approach and activities that will be performed across an initiative including who will perform the activities, the timing and sequencing of the work, the deliverables that will be produced and the business analysis techniques that may be utilized. The remaining outputs of the Business Analysis Planning and Monitoring knowledge area may be integrated into an overall approach or be independent based upon methodology, organization, and perspective. 3.2 3.2.1 Plan Stakeholder Engagement Purpose The purpose of Plan Stakeholder Engagement is to plan an approach for establishing and maintaining effective working relationships with the stakeholders. 3.2.2 Description Plan Stakeholder Engagement involves conducting a thorough stakeholder analysis to identify all of the involved stakeholders and analyze their characteristics. The results of the analysis are then utilized to define the best collaboration and communication approaches for the initiative and to appropriately plan for stakeholder risks. When planning for stakeholder engagement, the degree of complexity can increase disproportionately as the number of stakeholders involved in the business analysis activities increases. This is important because new or different techniques for the management of stakeholders may be required when the engagement moves from collaborating with a few stakeholders into dozens, hundreds, or even thousands of people. 3.2.3 Inputs • Needs: understanding the business need and the parts of the enterprise that it affects helps in the identification of stakeholders. The need may evolve as stakeholder analysis is performed. • Business Analysis Approach: incorporating the overall business analysis approach into the stakeholder analysis, collaboration, and communication approaches is necessary to ensure consistency across the approaches. 31 Plan Stakeholder Engagement Business Analysis Planning and Monitoring Figure 3.2.1: Plan Stakeholder Engagement Input/Output Diagram Input 3.1 Business Analysis Approach Needs Guidelines and Tools Business Analysis Performance Assessment 3.2 Plan Stakeholder Engagement Change Strategy Output Current State Description 3.2 Stakeholder Engagement Approach Tasks Using This Output 3.2.4 3.1 Plan Business Analysis Approach 3.3 Plan Business Analysis Governance 3.4 Plan Business Analysis Information Management 4.1 Prepare for Elicitation 4.2 Conduct Elicitation 4.4 Communicate Business Analysis Information 4.5 Manage Stakeholder Collaboration 6.3 Assess Risks 6.4 Define Change Strategy Elements .1 Perform Stakeholder Analysis Stakeholder analysis involves identifying the stakeholders (who will be directly or indirectly impacted by the change) and their characteristics, as well as analyzing the information once collected. Stakeholder analysis is performed repeatedly as business analysis activities continue. A thorough and detailed stakeholder list ensures that stakeholders are not overlooked. Understanding who the stakeholders are, the impact of proposed changes on them, and the influence they may have on the change is vital to understanding what needs, wants, and expectations must be satisfied by a 32 Business Analysis Planning and Monitoring Plan Stakeholder Engagement solution. If stakeholders are not identified, the business analyst may miss uncovering critical needs. Stakeholder needs uncovered late will often require a revision to business analysis tasks that are either in progress or are completed. This can result in increased costs and decreased stakeholder satisfaction. How business analysts perform stakeholder analysis can vary between projects, methodologies, and organizations. A company’s organizational chart and business processes can serve as an initial source for identifying internal stakeholders. The sponsor may also identify stakeholders. Stakeholders outside the organization may be identified and can be uncovered by understanding any existing contracts that may be in place, anticipated vendors that may have a role based on existing relationships with the organization, as well as regulatory and governing bodies that may influence the work. Shareholders, customers, and suppliers are also considered when searching for external stakeholders. Roles Business analysts identify stakeholder roles in order to understand where and how the stakeholders will contribute to the initiative. It is important that the business analyst is aware of the various roles a stakeholder is responsible for within the organization. Attitudes Stakeholder attitudes can positively or negatively impact a change. Business analysts identify stakeholder attitudes in order to fully understand what may impact a stakeholder’s actions and behaviours. Knowing how a stakeholder perceives the initiative allows an opportunity for the business analyst to specifically plan their collaboration and engagement with that stakeholder. Business analysts analyze stakeholder attitudes about: • business goals, objectives of the initiative, and any proposed solutions, • business analysis in general, • the level of interest in the change, • the sponsor, • team members and other stakeholders, and • collaboration and a team-based approach. Stakeholders with positive attitudes may be strong champions and great contributors. Other stakeholders may not see value in the work, may misunderstand the value being provided, or may be concerned about the effect the change will have on them. Stakeholders who are expected to serve in key roles and participate heavily in business analysis activities, but who view a change negatively, may require collaboration approaches that increase their cooperation. Decision Making Authority Business analysts identify the authority level a stakeholder possesses over business analysis activities, deliverables, and changes to business analysis work. 33 Plan Stakeholder Engagement Business Analysis Planning and Monitoring Understanding authority levels upfront eliminates confusion during the business analysis effort and ensures the business analyst collaborates with the proper stakeholders when looking for a decision to be made or seeking approvals. Level of Power or Influence Understanding the nature of influence and the influence structures and channels within an organization can prove invaluable when seeking to build relationships and trust. Understanding the influence and attitude each stakeholder may have can help develop strategies for obtaining buy-in and collaboration. Business analysts evaluate how much influence is needed to implement a change compared to the amount of influence the key stakeholders can bring. If there is a mismatch between the influence required and the amount of influence the stakeholder has or is perceived to have, business analysts develop risk plans, responses and other strategies that might be needed to obtain the required level of support. .2 Define Stakeholder Collaboration Ensuring effective collaboration with stakeholders is essential for maintaining their engagement in business analysis activities. Collaboration can be a spontaneous event. However, much collaboration is deliberate and planned, with specific activities and outcomes determined ahead of time during planning activities. The business analyst may plan different collaboration approaches for internal and external stakeholders, and approaches may differ by business analysis activity. The objective is to select the approaches that work best to meet the needs of each stakeholder group and ensure their interest and involvement is maintained across the initiative. Some considerations when planning collaboration include: • timing and frequency of collaboration, • location, • available tools such as wikis and online communities, • delivery method such as in-person or virtual, and • preferences of the stakeholders. Planning considerations can be documented in the form of a stakeholder collaboration plan. As factors change, plans can be revisited, and adjustments and adaptations can be made to ensure ongoing engagement of stakeholders. .3 Stakeholder Communication Needs The business analyst evaluates: • what needs to be communicated, • what is the appropriate delivery method (written or verbal), • who the appropriate audience is, • when communication should occur, • frequency of communication, 34 Business Analysis Planning and Monitoring Plan Stakeholder Engagement • geographic location of stakeholders who will receive communications, • level of detail appropriate for the communication and stakeholder, and • level of formality of communications. Communication considerations can be documented in the form of a stakeholder communication plan. Business analysts build and review communication plans with stakeholders to ensure their communication requirements and expectations are met. 3.2.5 Guidelines and Tools • Business Analysis Performance Assessment: provides results of previous assessments that should be reviewed and incorporated. • Change Strategy: used for improved assessment of stakeholder impact and the development of more effective stakeholder engagement strategies. • Current State Description: provides the context within which the work needs to be completed. This information will lead to more effective stakeholder analysis and better understanding of the impact of the desired change. 3.2.6 Techniques • Brainstorming: used to produce the stakeholder list and identify stakeholder roles and responsibilities. • Business Rules Analysis: used to identify stakeholders who were the source of the business rules. • Document Analysis: used to review existing organizational assets that might assist in planning stakeholder engagement. • Interviews: used to interact with specific stakeholders to gain more information or knowledge about stakeholder groups. • Lessons Learned: used to identify an enterprise’s previous experience (both successes and challenges) with planning stakeholder engagement. • Mind Mapping: used to identify potential stakeholders and help understand the relationships between them. • Organizational Modelling: used to determine if the organizational units or people listed have any unique needs and interests that should be considered. Organizational models describe the roles and functions in the organization and the ways in which stakeholders interact which can help to identify stakeholders who will be affected by a change. • Process Modelling: used to categorize stakeholders by the systems that support their business processes. • Risk Analysis and Management: used to identify risks to the initiative resulting from stakeholder attitudes or the inability of key stakeholders to participate in the initiative. 35 Plan Stakeholder Engagement Business Analysis Planning and Monitoring • Scope Modelling: used to develop scope models to show stakeholders that fall outside the scope of the solution but still interact with it in some way. • Stakeholder List, Map, or Personas: used to depict the relationship of stakeholders to the solution and to one another. • Survey or Questionnaire: used to identify shared characteristics of a stakeholder group. • Workshops: used to interact with groups of stakeholders to gain more information about stakeholder groups. 3.2.7 Stakeholders • Customers: a source of external stakeholders. • Domain Subject Matter Expert: may help to identify stakeholders and may themselves be identified to fulfill one or more roles on the initiative. • End User: a source of internal stakeholders. • Project Manager: may be able to identify and recommend stakeholders. Responsibility for stakeholder identification and management may be shared with the business analyst. • Regulator: may require that specific stakeholder representatives or groups be involved in the business analysis activities. • Sponsor: may request that specific stakeholders be involved in the business analysis activities. • Supplier: a source of external stakeholders. 3.2.8 Outputs • Stakeholder Engagement Approach: contains a list of the stakeholders, their characteristics which were analyzed, and a listing of roles and responsibilities for the change. It also identifies the collaboration and communication approaches the business analyst will utilize during the initiative. 36 Business Analysis Planning and Monitoring 3.3 3.3.1 Plan Business Analysis Governance Plan Business Analysis Governance Purpose The purpose of Plan Business Analysis Governance is to define how decisions are made about requirements and designs, including reviews, change control, approvals, and prioritization. 3.3.2 Description Business analysts ensure that a governance process is in place and clarify any ambiguities within it. A governance process identifies the decision makers, process, and information required for decisions to be made. A governance process describes how approvals and prioritization decisions are made for requirements and designs. When planning the governance approach, business analysts identify: • how business analysis work will be approached and prioritized, • what the process for proposing a change to business analysis information is, • who has the authority and responsibility to propose changes and who should be involved in the change discussions, • who has responsibility for analyzing change requests, • who has the authority to approve changes, and • how changes will be documented and communicated. 3.3.3 Inputs • Business Analysis Approach: incorporating the overall business analysis approach into the governance approach is necessary to ensure consistency across the approaches. • Stakeholder Engagement Approach: identifying stakeholders and understanding their communication and collaboration needs is useful in determining their participation in the governance approach. The engagement approach may be updated based on the completion of the governance approach. 37 Plan Business Analysis Governance Business Analysis Planning and Monitoring Figure 3.3.1: Plan Business Analysis Governance Input/Output Diagram Input 3.1 Business Analysis Approach Guidelines and Tools Business Analysis Performance Assessment Business Policies 3.2 Stakeholder Engagement Approach 3.3 Plan Business Analysis Governance Current State Description Output Legal/Regulatory Information 3.3 Governance Approach Tasks Using This Output 3.3.4 3.4 Plan Business Analysis Information Management 5.3 Prioritize Requirements 5.4 Assess Requirements Changes 5.5 Approve Requirements Elements .1 Decision Making Decisions are made throughout the initiative. A stakeholder may serve in various roles in the decision-making process such as: • participant in decision-making discussions, • subject matter expert (SME) lending experience and knowledge to the decision-making process, • reviewer of information, and • approver of decisions. The decision-making process defines what happens when teams cannot reach consensus, by identifying escalation paths and key stakeholders who hold final decision-making authority. 38 Business Analysis Planning and Monitoring Plan Business Analysis Governance .2 Change Control Process When business analysts develop a change control process, they: • Determine the process for requesting changes: specify which requirements and designs the change control process covers and determine whether it applies to all changes or only to changes of a specific size, cost, or level of effort. This process details the steps for proposing a change, when changes can be proposed, who can propose changes and how change requests are communicated. • Determine the elements of the change request: identify the information to be included in a proposal to support decision making and implementation if it is approved. Possible components to consider on a change request are: • Cost and time estimates: for each area affected by the proposed change, the expected cost of change is estimated. • Benefits: an explanation of how the change aligns with the initiative and business objectives to show how the change adds value. Benefits considered include both financial benefits and tactical benefits such as implications to scope, time, cost, quality, and resources. • Risks: an analysis of risks to the initiative, the solution, or business objectives. • Priority: the level of importance of the change relative to other factors such as organizational objectives, regulatory compliance requirements, and stakeholder needs. • Course(s) of action: the course of action for the change includes an assessment of the components of the change request (cost, time, benefits, risks and priority). It is common to identify several alternative courses, including those recommended by the requester and by other stakeholders so decision makers can make a choice that will best serve the needs of the initiative. • Determine how changes will be prioritized: the priority of the proposed change is established relative to other competing interests within the current initiative. • Determine how changes will be documented: configuration management and traceability standards establish product baselines and version control practices that identify which baseline is affected by the change. • Determine how changes will be communicated: how proposed changes, changes under review, and approved, declined, or deferred changes will be communicated to stakeholders. • Determine who will perform the impact analysis: specify who is responsible for performing an analysis of the impacts the proposed change will have across the initiative. 39 Plan Business Analysis Governance Business Analysis Planning and Monitoring • Determine who will authorize changes: include a designation of who can approve changes and what business analysis information their authority covers. .3 Plan Prioritization Approach For more information, see Prioritize Requirements (p. 86). Timelines, expected value, dependencies, resource constraints, adopted methodologies, and other factors influence how requirements and designs are prioritized. When planning the prioritization process, business analysts determine the: • formality and rigour of the prioritization process, • participants who will be involved in prioritization, • process for deciding how prioritization will occur, including which prioritization techniques will be utilized, and • criteria to be used for prioritization. For example, requirements may be prioritized based on cost, risk, and value. The approach should also determine which stakeholders will have a role in prioritization. .4 Plan for Approvals An approval formalizes the agreement between all stakeholders that the content and presentation of the requirements and designs are accurate, adequate, and contain sufficient detail to allow for continued progress to be made. The timing and frequency of approvals are dependent on the size and complexity of the change and associated risks of foregoing or delaying an approval. The business analyst must determine the type of requirements and designs to be approved, the timing for the approvals, the process to follow to gain approval, and who will approve the requirements and designs. When planning the appropriate approval process, business analysts consider the organizational culture and the type of information being approved. For example, new systems or processes for highly regulated industries such as financial, pharmaceutical, or healthcare are likely to require frequent and rigorous review and approval of very detailed specifications. For other types of initiatives, a less intensive approval process may be more appropriate and result in a faster implementation. Planning for approvals also includes the schedule of events where approvals will occur and how they will be tracked. Stakeholder availability, attitude, and willingness to engage determine the efficiency of the approval process and may significantly affect delivery timelines. 3.3.5 Guidelines and Tools • Business Analysis Performance Assessment: provides results of previous assessments that should be reviewed and incorporated into all planning approaches. 40 Business Analysis Planning and Monitoring Plan Business Analysis Governance • Business Policies: define the limits within which decisions must be made. They may be described by regulations, contracts, agreements, warranties, certifications or other legal obligations. • Current State Description: provides the context within which the work needs to be completed. This information can help drive how to make better decisions. • Legal/Regulatory Information: describes legislative rules or regulations that must be followed, and can be used to help develop a framework that ensures sound business decision making. 3.3.6 Techniques • Brainstorming: used to generate an initial list of potential stakeholder names who may need approval roles in the defined governance process. • Document Analysis: used to evaluate existing governance processes or templates. • Interviews: used to identify possible decision-making, change control, approval, or prioritization approaches and participants with an individual or small group. • Item Tracking: used to track any issues that arise when planning a governance approach. • Lessons Learned: used to find if past initiatives have identified valuable experiences with governance that can be leveraged on current or future initiatives. • Organizational Modelling: used to understand roles/responsibilities within the organization in an effort to define a governance approach that involves the right stakeholders. • Process Modelling: used to document the process or method for governing business analysis. • Reviews: used to review the proposed governance plan with key stakeholders. • Survey or Questionnaire: used to identify possible decision-making, change control, approval, or prioritization approaches and participants. • Workshops: used to identify possible decision-making, change control, approval, or prioritization approaches and participants within a team setting. 3.3.7 Stakeholders • Domain Subject Matter Expert: may be a possible source of a requested change or may be identified as needing to be involved in change discussions. • Project Manager: works with the business analyst to ensure that overall project governance aligns with the business analysis governance approach. • Regulator: may impose rules or regulations that need to be considered when determining the business analysis governance plan. May also be a possible source of a requested change. 41 Plan Business Analysis Information Management Business Analysis Planning and Monitoring • Sponsor: can impose their own requirements for how business analysis information should be managed. Participates in change discussions and approves proposed changes. 3.3.8 Outputs • Governance Approach: identifies the stakeholders who will have the responsibility and authority to make decisions about business analysis work including who will be responsible for setting priorities and who will approve changes to business analysis information. It also defines the process that will be utilized to manage requirement and design changes across the initiative. 3.4 3.4.1 Plan Business Analysis Information Management Purpose The purpose of Plan Business Analysis Information Management is to develop an approach for how business analysis information will be stored and accessed. 3.4.2 Description Business analysis information is comprised of all the information business analysts elicit, create, compile, and disseminate in the course of performing business analysis. Models, scope statements, stakeholder concerns, elicitation results, requirements, designs, and solution options are just a few examples. This includes requirements and designs, from lightweight user stories to formal requirement documents to functioning prototypes. Information management entails identifying: • how information should be organized, • the level of detail at which information should be captured, • any relationships between the information, • how information may be used across multiple initiatives and throughout the enterprise, • how information should be accessed and stored, and • characteristics about the information that must be maintained. Information management helps ensure that business analysis information is organized in a functional and useful manner, is easily accessible to appropriate personnel, and is stored for the necessary length of time. 3.4.3 Inputs • Business Analysis Approach: incorporating the overall business analysis approach into the information management approach is necessary to ensure consistency across the approaches. 42 Business Analysis Planning and Monitoring Plan Business Analysis Information Management • Governance Approach: defines how business analysts manage changes to requirements and designs, how decisions and approvals for business analysis deliverables will be made, and how priorities will be set. • Stakeholder Engagement Approach: identifying stakeholders and understanding their communication and collaboration needs is useful in determining their specific information management needs. Figure 3.4.1: Plan Business Analysis Information Management Input/Output Diagram Input Guidelines and Tools Business Analysis Performance Assessment 3.1 Business Analysis Approach Business Policies 3.2 Stakeholder Engagement Approach 3.3 Governance Approach 3.4 Plan Business Analysis Information Management Information Management Tools Output Legal/Regulatory Information 3.4 Information Management Approach Tasks Using This Output 4.4 Communicate Business Analysis Information 5.1 Trace Requirements 5.2 Maintain Requirements 7.4 Define Requirements Architecture 3.4.4 Elements .1 Organization of Business Analysis Information Business analysts are responsible for organizing business analysis information in a manner that allows for efficient access and use. Information must be well structured to ensure it is not difficult to locate, conflicts with other information, or is needlessly duplicated. 43 Plan Business Analysis Information Management Business Analysis Planning and Monitoring The business analyst determines how best to structure and organize the business analysis information at the start of an initiative. This involves taking into consideration the type and amount of information to be collected, the stakeholder's access and usage needs, and the size and complexity of the change. Relationships among the types of information must be defined to assist in managing the effect of new or changed information in the future. .2 Level of Abstraction Level of abstraction describes the breadth and depth of the information being provided. Representations of information may range from highly conceptual or summarized to very detailed. In determining how much detail each stakeholder may require as the initiative evolves, consideration is given to the needs of the stakeholders, the complexity of what is being explained, and the importance of the change. Rather than present the same information to all stakeholders, business analysts should present information with appropriate breadth and level of detail based on each stakeholder's role. Business analysis information regarding a topic of significant importance or high level of risk is frequently represented in greater detail. .3 Plan Traceability Approach The traceability approach is based on: For more information, see Trace Requirements (p. 79). • the complexity of the domain, • the number of views of requirements that will be produced, • any requirement-related risks, organizational standards, applicable regulatory requirements, and • an understanding of the costs and benefits involved with tracing. Business analysts plan to ensure the approach is at a level of detail to add value without excessive overhead. .4 Plan for Requirements Reuse Reusing requirements can save an organization time, effort, and cost—provided the requirements are accessible and structured in a manner that supports their reuse. Requirements that are potential candidates for long-term use are those an organization must meet on an ongoing basis such as: • regulatory requirements, • contractual obligations, • quality standards, • service level agreements, • business rules, • business processes, or • requirements describing products the enterprise produces. 44 Business Analysis Planning and Monitoring Plan Business Analysis Information Management Requirements may also be reused when describing common features or services that are used across multiple systems, processes, or programs. To make requirements useful beyond the current change, business analysts plan ahead for requirements reuse by identifying how best to structure, store, and access requirements so they are usable and accessible for future business analysis efforts. In order for requirements to be reused they must be clearly named, defined, and stored in a repository that is available to other business analysts. .5 Storage and Access Business analysis information can be stored in many ways. Storage decisions depend on many factors such as who must access the information, how often they need to access it, and what conditions must be present for access. Organizational standards and tool availability also influence storage and access decisions. The business analysis approach defines how various tools will be used on the initiative and how the information will be captured and stored within those tools. Tools may shape the selection of business analysis techniques, notations to be used, and the way that information is organized. The repository may need to store information other than requirements and designs. It should be able to indicate the status of any stored information, and allow for modification of that information over time. .6 Requirements Attributes Requirements attributes provide information about requirements, and aid in the ongoing manage...
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