Business Analysis Techniques (K Level 4/5) Flashcards
Use Quantitative Techniques When:
Measurable Data is Required
Testing Hypotheses
Use Qualitative Techniques When:
In-Depth Understanding: allow a deeper, contextual understanding of a business situation.
Complex and Unstructured Data: If your data is complex, unstructured, or difficult to quantify, qualitative methods, such as interviews, focus groups, or content analysis, may be more appropriate.
Subjective Perspectives: If you want to capture subjective perspectives, opinions, and individual experiences,
Why would an as in business process model alone not be a sufficiently document the business system
an ‘As-is’ business process model may be a supplementary technique but
would not provide sufficient information to document the entire
business situation
Interview uses
- Fact finding (business situation and actors role in it)
- Understand perspective
- Stakeholder engagement
- Business overview
- Elicit requirements
Interview process
Successful interview has 3 main stages
- Prep & planning - who? why? what info do I know? where?
- Interview - closed/open/leading questions & build rapport
- Follow up - document & circulate output
Interview advantages and disadvantages
Advantages:
- Builds relationships
- Understand perspectives
- Confidential
- Yield important information
Disadvantages:
- Time consuming (both parties)
- info elicited is based on opinion (quantitative confirmation may be required)
- only one view point
What is an interview
A structured discussion between the analyst and a stakeholder to elicit facts and information about the business situation and their role in it.
What is a workshop
A forum where a selected group of SH participate in a facilitated discussion to achieve an agreed objective
Workshop - uses
- Agree direction/scope of project
- Discuss conflicting perspectives
- Elicit & agree requirements
- Examine possible solutions
Roles in a workshop
Participants
Scribe
Facilitator
Techniques to support workshops
Icebreaker
Round robin
Brainstorming techniques
Workshop process
- Planning & prep: objectives/attendees/venue etc
- Conduct: focus on objectives/ensure participation/summarise key points
3.Follow up: Document & circulate output/invite feedback
Workshop advantages and disadvantages
Advantages:
- Fast
- Stakeholders involved and feel ownership
- Simple method of resolving issues
- More creative solutions produced
Disadvantages:
- Group dynamics need to be carefully managed
- Hidden agendas
- Hard to organise
- Authority limitations
What is observation
Watch actors carry out their work
3 Types of Observation
Formal Observation
- Watching specified tasks
- Staff are prepared
- May see only what they want you to see (potential disadvantage)
Informal Observation
- No staff preparation
- May not see all required tasks being performed
-Shadowing
- Following a user for period of time
- May include protocol analysis (talk me through whilst doing it)
Good for uncovering tacit knowledge
Observation Advantages/Disadvantages
Advantages:
1. We can get a good understanding of the processes, problems, politics etc
2. Helps devise workable, acceptable solutions
3. Helps with follow up questions
Disadvantages:
1. Can feel like ‘Big Brother’ – unsettles the observed
2. Your presence may impact the process
What is scenario analysis?
Telling the story of the task, including:
1. All steps from business trigger to outcome
2. Pre-conditions
Must be true for the scenario to begin
3. Post-conditions
Must be true following conclusion
4. Alternative paths
5. Exception situations
(deeper dive to process mapping)
Scenario Analysis Advantages/Disadvantages
Advantages
- Aids visualisation and discussion of real life situations
- Can be used to build test scenarios
Disadvantages
- Can become complex, especially where many alternative paths
- Time consuming
Document analysis
Reviewing and analysing source documentation such as forms, screen layouts and reports to uncover info about the organisation/process/system
What is a powerful supplementary technique
Document analysis
Document Analysis Advantages/Disadvantages
Advantages
1. Can yield good information on Organisation/Process/System
Disadvantages
1. Don’t get differing viewpoints
2. Dry & Tedious
What to consider when identifying an appropriate technique?
Agile/Linear (detail vs outlines)
Time
Documentation styles
Stakeholder availability
Business preference
Ability to repeat & revisit
Quantitative technique
Surveys/questionnaire
Surveys/questionnaire - uses
Gather information when other techniques e.g. workshops as the population is too large or disperse
Cultural reasons - a membership organisation where consultation is expected
Gain validation from a large group of people
Quantitative data is needed
Surveys/questionnaire - advantages and disadvantages
Advantages:
- easy to get results from large geographically disperse group
- can be anon
- quantitative figures (used in biz case)
- uncover hidden problem/req
Disadvantages:
- low response rate
- ineffective unless carefully designed and analysed
- not suitable where lots of detail required
Existing business situation documentation techniques
- Mind maps
- Rich Picture
- Customer Journey Map
Mindmaps
Visually summarises & structured information gathered into a recognisable and manageable set of connections
Business system/problem at the centre
Main topic/issue on 1st level e.g. Equipment
More detail on 2nd level e.g. No paper in printer
Also useful for RCA
Rich pictures
- Pictorially capture a holistic view of a business situation/problem and facilitates discussion
- no rules (includes actors/systems/views/ideas/concerns)
What should a BA consider when using rich picture technique?
May not be immediately accessible to stakeholders
Customer journey mapping
Explores the experience of the customer when engaging with an organisations processes
Models: touch points, shows points of delight/satisfaction & unhappiness
Why is customer journey maps a valuable documentation tool
- Visualisation of CX: documents the entire CX, illustrating key touchpoints & interactions
- Understand customer perspective (& pain points)
Why is customer journey mapping useful in process improvement?
Process improvement can place too much emphasis on internal efficiencies at the expense of the customer.
The external customer view should be considered (happy=purchase again, bad=won’t purchase & damage rep)
Elements of customer journey map
Persona
Goal
Touch points E.g. Make order / wait for delivery
Customer activities E.g. Select delivery / Pay
Customer perception of experience E.g. Website not easy to use / Delivery information confusing
Emotional state
Potential opportunities for improvement (Req in practice) E.g. clear statement of delivery options
Customer journey mapping - steps
- Determine what to map (good to focus on interactions that affect most customers most of the time)
- Identify touch points
- Map touch points
- Identify ‘moments of truth’ (interaction where lasting impression - pos or neg - can be imprinted on the customer)
Technique to identify stakeholders
Stakeholder Wheel
How to use stakeholder wheel
- Identification technique
- review stakeholder groups to identify who has an interest in the business area under investigation
Benefits of identifying stakeholders early
Understand different views & manage differences
Categories on Stakeholder Wheel
Manager
Owner
Employees
Regulators
Competitors
Customers
Partners
Suppliers
Internal stakeholders - Stakeholder wheel
Manager
Owner
Employees
External stakeholders - Stakeholder wheel
Regulators
Competitors
Customers
Partners
Suppliers
What is a stakeholder
Anyone that is interested or affected by the change
Partner - Stakeholder wheel
Work in partnership to deliver complementary or supplementary products
E.g. Reseller / outsourcing company
Suppliers - stakeholder wheel
Providers of goods and services
Regulators - stakeholder wheel
Set & enforce regulations that the organisation must comply with
Employees - stakeholder wheel
Conduct work for internal/external customer
Manager - stakeholder wheel
Senior/middle managers - responsible for the results wanted by owners
Owners - stakeholder wheel
Commercial businesses - shareholders / executives
Non-profit - Trustees
Public sector - Government ministers
Competitors - stakeholder wheel
Operate in the same market & compete for the same customers
Customers - stakeholder wheel
Recipients / beneficiaries of the organisations product / services
Stakeholder categories
Project
Business
External
Project stakeholders
Project manager
Developer
BA
Business stakeholders
Project sponsor
Business Managers
End users
SMEs
External Stakeholders
Supplier
Customer
Regulator
How can stakeholder wheel & 3 main stakeholder categories be used together?
To ensure all stakeholders are identified. The stakeholder wheel may only capture ‘employees’ such as those directly impacted by the proposed change & we may overlook project/business stakeholders
Key responsibilities: Sponsor
- Agree PID/ToR
- Ensure funds available
- Set project objectives (align with organisational goals)
- Rule on conflicting req
- Accept deliverables
- Deliver biz benefits and confirm they have been realised
- Act as a champion/advocate
Key responsibilities: Business managers
- General responsibility: running the organisation & delivering results required by owner
Project responsibilities:
- Play a part in elicitation so BA can define requirements
- Definition of NFR’s (data specialists)
- Provide resources / support
Key responsibilities: end users
Individuals who carry out work and use the new system
- Describe current processes and highlight difficulties
- Participate in UAT
Key responsibilities: SME’s
Individuals with specialised best practice industry knowledge
- Provide insight into industry best practice
- ‘super user’
- Help other roles have a deeper understanding of req
Technique to analyse and prioritise stakeholders
Power - interest grid
Why is power-interest grid useful
- Helps to identify SH management/communication strategies
- Ensure SH are supported through the change process and helps manage the emotional impact
When should stakeholder analysis take place?
Project onset but reviewed regularly as stakeholder can move
E.g. promotion
E.g. ‘Watch’ SH has a higher interest
6 categories in power-interest grid
Low P Low I: Ignore
Low P Some/High I: Keep Informed
Some P Low/Some/High I: Keep on side
High P Low I: Watch
High P Some I: Keep satisfied
High P High I: Constant active management
Stakeholder communication/management: Ignore
- Ignore for day to day issues
- SH can change position so an occasional update is wise e.g. newsletter
Stakeholder communication/management: Keep informed
- Difficult to manage - these SH are directly affected but feel powerless to shape direction
- Likely to be stakeholders required to operate the new process/systems
- Frequent & focusses progress communication (effort to ‘sell’ the benefits and comfort their fears)
- Important to provide with sufficient information to detract from rumour where images fear is worse than reality
When can the power of stakeholders within ‘keep informed’ (high interest, low power) change
Individually they have little power to influence but this can change if they influence as a group
Stakeholder communication/management: Keep on side
- Middle/senior managers & regulators
- Interest tends to fluctuate based on project direction/decisions
- Be aware and keep a watchful eye on their interests and opinions
- Issue frequent information updates
Stakeholder communication/management: Watch
- Keep in view but little direct involvement
- These SH can easily exert their power disruptively
- Keep in loop with regular updates (e.g. access to weekly reports) and organise occasionally feedback sessions
Stakeholder communication/management: Keep satisfied
- These stakeholders need to feel satisfied the project is moving in the right direction, if this is the case they’re unlikely to make unhelpful interventions - sometimes may want to encourage them to intervene and use their influence
- Careful management so intervention supportive
- Occasional meetings, periodic project updates (progress and flag issues)
Stakeholder communication/management: Constant active management
- Keep informed at each project stage and take views into account
- Instrumental to achieving project outcomes
- These SH should have no surprises and all recommendations should be discussed and agreed before presenting to other SH
- Regular face to face meetings/ tailored reports to suit their specific concerns/ seek input and feedback
Tool to record & assess stakeholder roles and responsibilities
RACI matrix
Responsible - RACI
responsible for creating/developing the deliverable/performing the task.
Accountable - RACI
who is answerable for the quality of the deliverable/task (should approve)
Consulted - RACI
provides information relevant to the deliverable/task.
Informed - RACI
are informed about a deliverable/task, though they may not have contributed directly to them.
What is a RACI?
- Stakeholder management tool
- Record/assess SH roles & responsibilities
- Main deliverable down the side and SH on the top
What should you do once RACI completed?
Review completeness
E.g. too many tasks for one SH
E.g. each task has one responsible SH
Why is RACI useful?
- Provides a framework for tasks/deliverable/roles analysis
- RACI + P/I Grid = rich understanding of SH & their contribution/management
- Ensures all SH clear about roles and responsibilites
Technique to analyse stakeholder perspective
CATWOE
Techniques to Analyse/Manage Stakeholders
Power/Interest Grid
CATWOE
RACI Chart
How can CATWOE & P&I Grid be used together?
The power/interest grid indicates how much views and perspectives should be taken into account
What can happen if we fail to understand stakeholder views?
Problems later on the the project - different requirements priorities or contradictory requirements
Why is CATWOE useful?
Assists in the analysis of SH view & perspectives about a business situation
Uncovers conflicting perspectives that need to be managed (SH are often not aware of this)
Link between business perspectives and BAM
Transformation element of a stakeholders perspective becomes the ‘doing’ element of BAM
Uses of CATWOE?
- Elicit information from SH on their view on a business situation
- Analyse sources of potential conflict
- If conflict identified, BA should facilitate discussions to identity differences early on in the project (maybe via conceptual BAMs to negotiate an agreed world view and BAM)
CATWOE Elements
Customer: beneficiary/recipient of the business system output
Actor: roles that perform transformation (core biz processes)
Transformation: core biz processes that transform inputs to output to fulfil worldview
Worldview: belief statement - why the org exists
Owner: individual/group who has the authority to change biz system or close down
Environment: rules/constraints that originate from the external environment (PESTLE)
Examples of when CATWOE can be used
- To understand a stakeholder’s view of a business system - gain insights/ illuminate potential issues.
- To analyse sources of potential or actual conflict between stakeholders.
- To consider the priorities assigned by stakeholders to ideas, issues, options and requirements.
-To provide a basis for developing a conceptual activity model that may be used to highlight areas of concern and explore differences among stakeholder perspectives. This model may also be used to define a consensus view of a desired business system that can be compared with
Why is identifying conflict useful?
- Stakeholders can realise they’re in disagreement & can facilitate discussions / negotiaions to create a consensus BAM. If they cannot, referred to the O (CATWOE)
- Conflicting perspectives gives rise to different views on problems/desired outcomes/priorities
Why is CATWOE useful early on?
CATWOE helps identify potential areas of disagreement/conflict at an early stage & provides a basis for the analyst to describe differences/similarity of view with stakeholders.
- Crucial to identify and address at an early stage so any differences can be addressed
Failure to establish differences in perspectives early in the project leads to…
Conflict emerging later - becomes expensive to remedy
What element to start with - CATWOE
- Worldview
- Transformation
- Customer
- Actor
- Owner
- Environment
What technique builds on CATWOE
Business activity modelling (BAM) builds on the ‘Transformation’ in CATWOE to look at the conceptual activities needed to fulfil the worldview
What is a BAM
Business activity modelling
- Conceptual view of activities required to fulfil SH worldview/perspective
BAM & Gap Analysis
Conceptual view compared with current situation representations to identity improvement areas
BAM vs Process model
BAM - What the organization is doing
Process model - How
BAM activity types
- Doing
- Enabling
- Controlling
- Planning
- Monitoring
BAM activity types: Doing
Primary tasks of the biz system - activities that form core processes
E.g. ‘Sell groceries’ ‘deliver training courses’
BAM activity types: Enabling
Obtain and replenish resources needed to perform primary tasks (doing activities)
E.g. ‘Procure/advertise groceries’ ‘create training courses’
BAM activity types: Controlling
Indicate the needs for actions to correct where performance targets have not been met
BAM activity types: Planning
Indicate areas that need to decided (include performance targets)
E.g. ‘decide product range’ ‘determine product range’
BAM activity types: Monitoring
Monitor performance & determine whether performance targets (set out buy planning) have been achieved
E.g. ‘Monitor product sales’ ‘Monitor customer satisfaction’
3 reasons to develop a BAM
- Analyse the activities a stakeholder’s perspective would require. This helps to clarify the differences between perspectives.
- To gain further understanding of the stakeholders’ perspectives and have a basis for negotiating a consensus BAM (all SH agree)
- To provide a conceptual view of an agreed future state that may be used as a basis for a gap analysis when compared to a representation of a current state.
Arrow in BAM
Dependency between activities
Example of BAM Activities & dependencies
Planning: define product range
Enabling: procure clothing
Doing: sell fashionable clothes online (T in CATWOE)
Monitor: monitor product sales
Control: take control action
What is a consensus BAM
A conceptual view of what the business system should look like and should be doing that all stakeholders agree with
- model of what business activities should look
- Does not represent ‘as is’ or ‘to be’
Why does a consensus BAM not represent ‘as is’ or ‘to be’ views
BAM is a conceptual model and is concerned with creating a shared understanding between SH
What not how
The as is vs to be is more concerned with the business processes
BAM as an improvement tool
Consensus BAM = Conceptual agrred view of what the business system should look like and should be doing
Compre with the actual situation to identity opportunities for improvement
High level gap analysis process
- Investigate & model existing system. Techniques: mind maps/rich picture/as is business process models
- Analyse perspectives, concerns & objectives to develop representation of the desired situation. Techniques: BAM/To be process model
- Identify differences and actions required to move from existing to target situation
- Consider possible actions to address gaps (many actions e.g. skills gap identified - training? mentoring? recruitment?
Gap Analysis - ‘investigate and model the existing situation’
- Mind maps/rich picture highlight issues (ensure all elements of POPIT covered)
- As is process models - represent the process view
Gap Analysis - ‘Develop representation of desired solution’
- BAM used to provide a conceptual holistic view of business system ‘what’ activities
- to be process models - focus on ‘how’ the work is carried out (does not cover planning/enabling activities)
- supplemented by org charts/org diagrams etc
Gap analysis - ‘Compare & contrast two views’
- Identify actions required to move from existing situation to target
Questions include: do the desired activities/processes/task exist? are there problems with current activities, processes or tasks?
Gap analysis - BAM approach
Each activity classed as:
Existing and satisfactory.
Existing but not satisfactory.
Not existing.
A detailed gap analysis considers what
BAM ‘what’ activity is need and process models ‘how the work is undertaken’
Gap analysis - Process model approach
Differences between:
- ‘as is’ and ‘to be’
What tool structures gap analysis
POPIT
POPIT in gap analysis
Processes: ‘as is’ ‘to be’
Technology: IT requirements of each task
People: once processes analysed, new actor roles can be defined & job descriptions/competency requirements developed
Organisation: revised processes may require structural changes e.g. merging swim lanes involves merging roles or departments
Information: info required for the target state is currently not captured, recorded or communicated
Result of gap analysis
List of change actions needed to bridge the gap between current and desired business system (‘what’ requirements)
List of actions form basis of option identification
What type of thinking can hep with option creation
Divergent
Formulating options: HL Process
- Identify possible options (to address gaps)
- Short list
- Evaluate
- Produce business case
Short list options
Some options rejected immediately - to expensive/does not align to culture/ not feasible (B/T/F)
3/4 options ideal (all of which address the issue & meet budget and time constraints
‘do nothing’ also considered
Divergent & Convergent thinking
Both design thinking techniques
Divergent: thought process that helps generate novel ideas using imagination
Convergent: makes choices, aims to find the ‘right’ answer to the question based on logic
What is a business event?
Business event triggers/initiate a process
They’re occurrences to which an organisation must respond
Types of business events
Internal
External
Time-based
External business event
Events that occurs outside the organisation/business system (typically from customers/suppliers)
E.g. Customer submits complaint / places order
Internal business event
Events that occurs within the organisation/business system (typically from senior member of staff)
E.g. staff recruitment requested / report requested
Time based business event
Regular occurrences that happen at pre-defined times
E.g. Financial reporting cycle (legal reg) / payroll cycle (internal)
Why analyse business events?
Allow analysis of the business system - clarify the work carried out within a particular area & uncover tacit knowledge
How to conduct business event analysis?
(Identify internal/external stakeholders)
- Identify event types for business system (by identifying SH first can ask ‘what events do they require the business system to handle)
- Analyse each event - what is the desired outcome? who is responsible? timescales?
- Model processes (optional)
. Double Diamond model
