3
THE ROLE OF THE BUSINESS ANALYST
3.1 OVERVIEW
Business analysis has been performed for decades, and despite its long-term existence, the role of the business analyst is still considered fairly new. While the number of business analysts employed is on the increase as the role continues to mature and evolve, the role of the business analyst is often misunderstood and underutilized within organizations. There are several contributing factors to this misunderstanding, including:
This section explores the business analyst role by examining the position of the business analyst within the organizational structure, discussing the business analyst's sphere of influence in this structure, and discussing important skills that the business analyst may want to develop to be successful. This section intentionally focuses on the role rather than the profession of business analysis to make comparisons between the project manager role, the business analyst role, and other positions within the organization. Although this section uses a specific role title, the information presented here is important to anyone performing business analysis, whether they are performing business analysis with a project manager/business analyst (PM/BA) hybrid title, a business or technical title, or as part of an agile team.
This section is not intended to cover the entire spectrum of information that is currently available to explain the role; rather, it is intended to present an overview and provide a common understanding of the generally accepted key skills required of anyone performing business analysis.
3.2 DEFINITION OF A BUSINESS ANALYST
Those who perform business analysis are commonly called business analysts, but there are business analysis professionals with other job titles who also perform business analysis activities. Some business analysis professionals are specialized and therefore have a title that reflects that area of their competency: strategic business analyst, data analyst, process analyst, or systems analyst are a few examples of these roles. How an organization uses business analysis resources; where these resources functionally report; and the type of industry, type of project, and type of project life cycle being used are some of the factors that influence how organizations title those who have the responsibility for business analysis.
There are also many roles where business analysis is performed as a part of the role but is not necessarily the only responsibility. Enterprise and business architects; portfolio, program, project managers; and operational analysts are a few examples. The business analysis processes, tools, and techniques presented in this guide and standard are relevant to these individuals, too. Because there are many titles and variations of business analysis roles in use, this guide and standard use the phrase business analysis professional over business analyst. When the term business analyst is used, it is done for the sake of brevity and should always be considered a reference to anyone performing business analysis regardless of the title a person holds or the percentage of job function spent on the work. The objective of this guide and standard is to establish an understanding about business analysis and not job titles.
3.2.1 EVOLUTION OF THE ROLE
The evolution of the business analyst role is one of the reasons for the variety of job titles that exists today. Before business analysis was recognized as its own discipline, requirements-related activities were performed by various other roles, such as project managers, software developers, and product quality control analysts (which some organizations refer to as quality assurance analysts).
Developers did not always have the interest or communication and business skills required to work effectively with business stakeholders, and project managers often felt conflicted when they had to forego important needs of the business for the sake of the schedule and cost parameters of the project. Roles such as programmer analyst and systems analyst evolved out of the need and desire to have a dedicated resource focus on the requirements-related work and convert the business requirements into solution requirements for the technical team while ensuring that the procedures and rules that supported those requirements were well understood. While this was an improvement for project teams, these resources tended to come from IT, brought heavy technical experience, and sometimes fell short in meeting the expectations of the business.
Analyst positions on the business side began to appear for the purpose of improving the shortcomings of the technical analyst role. These positions worked well because analysts from the business side understood the day-to-day issues the business faced, understood the context where problems or opportunities existed, and were great advocates for championing the need for change. Frequently, technical expertise was lacking to understand what was possible and feasible and analytical skills were not sufficient when it came to asking probing questions or assessing results from a critical thinking perspective. Today, it is common to find business analysis resources in various areas of the business in addition to IT.
3.2.1.1 CONTINUED EVOLUTION OF THE ROLE
The role of the business analyst has continued to evolve. Trends, such as the rise of the global marketplace, geographically dispersed project teams, advances in technology, and other factors, have continued to influence the evolution of the role. Five developments in business analysis are worth highlighting, as each has been a contributing factor to broadening the role and creating variations in role title:
These subsequent trends resulted in organizations shifting their thoughts on where to place these analytical resources within the organization and how to name and define the role. For example:
Although the business analyst role has deep roots within IT, business analysis activities continue to be performed by many roles in non-IT environments. As mentioned in Section 1.1.3, business analysis can be performed when creating or enhancing a product, solving a problem, or seeking to understand customer needs. Many industries and types of projects benefit from business analysis, including construction, health care, and manufacturing. Those who perform business analysis across industries may be called by various other titles that are not included in this guide.
3.2.1.2 WHERE BUSINESS ANALYSTS COME FROM
Because the role of the business analyst has evolved as a result of these trends, it is quite common to find that the person performing business analysis did not start off with a vision to become a business analyst. Many business analysts evolved from other roles, for example, developers, product quality control analysts (referred to quality assurance analysts in some organizations), or subject matter experts from the business. The business analyst is able to bring a wide variety of skills and expertise to the position. Project teams can benefit from this wide variety of skill sets, but variation in skill sets often results in variations in how the role is performed (see Section 3.2.1.3).
Today, no matter whether the role is filled from the business or technical side, the important point is that those who perform business analysis should possess the requisite skills to facilitate collaboration from both the business and IT areas and understand stakeholder needs from all sides.
3.2.1.3 VARIATIONS CAN IMPACT QUALITY
When business analysts lack sufficient skills or the business analysis skills, experience, or competencies they hold vary widely within an organization, business analysis work is not performed consistently across programs and projects. This results in disparate applications of the role, which can lead to teams underperforming or overperforming business analysis. As with any process, reducing variance allows for more consistency in the way activities are performed and allows for repeatability, thereby providing greater effectiveness in execution.
The variation described here should not be confused with tailoring. Tailoring is the need to adjust which business analysis activities are best performed for projects of varying characteristics. For example, tailoring is performed to ensure that business analysis is correctly sized for projects of differing levels of complexity or those having different project life cycles—for example, predictive, adaptive, etc. For more information on tailoring, refer to Section 1.3.4.
The variations referred to in this section are concerned with the inconsistent application of business analysis across projects with similar characteristics. These variations can exist simply because the role is complex and the required skills needed are advanced. Business analysis skills take time to develop. Business analysts who possess different skill sets may gravitate to the business analysis activities in which they are skilled, disregarding activities where they feel ill-equipped. Variations may exist simply because business analysts are unaware of what the organization or project team expects of them or are unaware of the possible value their role can provide. For example, a business analyst who originated from the business side may feel comfortable defining the business need and writing business cases; however, when asked to interact with vendors to assess possible solution approaches, the business analyst may feel inadequate to facilitate the vendor review sessions and incapable of asking probing questions to examine the vendor offerings. In this scenario, business analysis activities are underperformed and a host of undesirable outcomes may result.
3.2.1.4 HOW TO ADDRESS BUSINESS ANALYST VARIANCE
When inconsistent execution of business analysis is a root cause for poor project performance or occurs in an area that places a priority on the consistency of business analysis practices, organizations should explore the inconsistencies to identify why variances in business analysis are present. Possibly, the business analyst position has evolved, creating a moving target to which current business analysts may aspire. Perhaps the discipline lacks a standard process within the organization, or business analysts are being recruited from many areas of the organization but lack formal training. Whatever the reasons are, efforts should be taken to understand the causes.
Organizations may also want to understand the competency level of business analysts both as a whole and at an individual level. In this case, the organization should define the business analyst skills it requires and compare that list to the skills of the existing business analysis resources employed within the organization. A skills analysis such as this is used to identify deficiencies so that measures and plans can address any skill gaps. These gaps can be addressed by augmenting staff with highly trained and certified practitioners such as PMI Professional in Business Analysis (PMI-PBA)® certification holders, by implementing training programs, by establishing a mentorship program, or many other options.
Organizations may also consider self-reflection on past project work to assess where business analysis has worked well and where it hasn't, and then leverage this information to make process and people decisions on future projects. By understanding the types of business analysis skills that a project team is looking for and keeping an accurate inventory of the skills present across business analyst resources, the organization is better able to assign the right mix of business analyst skill sets to future projects.
To minimize variances in the execution of the business analyst role, organizations should consider what structures are lacking. Examples of how organizations add structure into the role of the business analyst include:
3.3 THE BUSINESS ANALYST'S SPHERE OF INFLUENCE
3.3.1 OVERVIEW
Business analysts may lead, but they do not oversee project resources; this is the work of the project manager. A lead business analyst may oversee the work of less experienced business analysts on the team, or a manager of business analysis may be responsible for managing a pool of business analyst resources from an assignment or allocation perspective. At the project level, it is the project manager who is responsible for resource allocation, scheduling, and work progress, including that of business analysts.
Business analysts do manage stakeholder engagement, which is often considered an area of overlap with project managers. Looking more closely, business analysts have different objectives from project managers; therefore, each role manages engagement with stakeholders for different purposes. The business analyst's objective is to ensure that stakeholders remain engaged throughout the entire business analysis process so that the information required to build the solution is attained through ongoing discovery and collaboration and the solution design ultimately meets the needs of the business. The business analyst needs to be aware of stakeholder expectations, availability, and individual interests and the impact each has on the ability to successfully elicit the product requirements. When the dynamics are a cause for one stakeholder group to overpower or shut down another, or when a particular stakeholder becomes disinterested in the solution and begins to withdraw in requirements workshops, it is the business analyst's responsibility to take charge and resolve these situations. Because stakeholder relationships are managed across the project by the project manager, the best tactic is for the business analyst and project manager to work together when stakeholder situations arise regarding the solution. More information about the business analyst's role in managing stakeholder relationships can be found in Section 5.
A business analyst works with stakeholders to elicit and analyze business analysis information and evolve and develop the product requirements and other information necessary to achieve a common understanding of the product features across the product team. This makes relationship building and management a very important aspect of the business analyst role. Business analysts maintain a range of relationships that influence the business analysis work. Figure 3-1 highlights some of the stakeholder relationships that business analysts need to manage within their sphere of influence.
3.3.2 THE PRODUCT
The business analyst has accountability for leading stakeholders through a comprehensive process to ensure the successful delivery of the optimal solution. The process begins with a needs assessment and concludes with solution evaluation; all activities are product focused. A product can be tangible or intangible—for example, an organizational structure, a process, or a service.
Almost all of the confusion that occurs on programs and projects between the roles and responsibilities of the project manager and business analyst can be cleared up by understanding that the objectives for each role are different. Project managers are responsible for the successful delivery of the project, while business analysts are responsible for the successful delivery of the product. A product focus requires an understanding of strategy to align proposed solutions and enable the achievement of organizational and business objectives. The product focus is, therefore, much broader than the project focus. The focus on product versus project is a fundamental difference between the roles of the project manager and business analyst. To learn more about the project versus product perspective, refer to Section 1.2.1.
The skills presented in this section and the processes described within Sections 4 through 9 help business analysts successfully deliver solutions to the organizations that hire and employ them.
3.3.3 THE ORGANIZATION
The position of the business analyst within the organization can be very different depending on how the organization leverages the skills of the business analyst. When positioned properly, the business analyst can be a trusted advisor to the business and a liaison to any technical resources. A business analyst can be considered a critical resource on assigned programs and projects and can be considered a leader within the organization. Business analysts require direct access to key stakeholders, so leaders such as the sponsor or project manager can help ensure access by removing any roadblocks that preclude the business analyst from obtaining clear communications with the stakeholders.
As depicted in Figure 3-1, business analysts form a lot of relationships; therefore, relationship building is a critical skill. Business analysts are in an interesting position within the organization, as they have responsibility for leading and influencing stakeholders without possessing the supervisory authority, title, or rank to do so. This can be one of the hardest aspects of the business analyst role, especially when the business analyst lacks the underlying soft skills to make this happen. Business analysts can strengthen their leadership abilities by building trust and demonstrating honesty, integrity, and transparency with those they interact with.
3.3.3.1 BUSINESS ANALYST RELATIONSHIPS
While the major relationships a business analyst develops and manages are vast, the number of relationships that need to be managed increases as the size and complexity of the project or program increases. The following are some of the typical relationships created and managed by business analysts, along with a description of the value that each relationship provides to the organization and the business analyst:
When business analysts report into a single functional area, establishing relationships with peer business analysts may be easier than in organizations where business analysts are distributed. Some organizations may establish a business analysis community of practice or a center of excellence to enable collaboration among business analysts. Whether formal structures are in place to enable these relationships or not, business analysts can seek to build a network of business analysts across their organization to learn and share best practices. Senior business analysts and business analyst managers support the profession by increasing the business analysis competency levels and capabilities of business analysis within the organization.
3.3.4 BUSINESS ANALYSIS AND INDUSTRY KNOWLEDGE
Business analysts have an interest in monitoring and staying well informed of changes occurring within the industries where they perform business analysis. Business analysts leverage industry information to understand how trends may impact solutions currently implemented in the organization, processes currently in place, or existing projects, including their associated requirements and proposed solutions.
These trends include but are not limited to:
3.3.5 PROFESSIONAL DEVELOPMENT
In addition to maintaining relationships with peer business analysts on the job, many business analysts seek to build a network of business analyst relationships outside of work. These external relationships provide the opportunity to obtain and transfer knowledge, find solutions to some of the challenges the business analyst may be facing, obtain insights on emerging trends in the profession, and collaborate with other like-minded professionals.
Because the profession of business analysis is vast, it is difficult for business analysts to get to a point where they feel they have mastered the discipline. Professional development is ongoing in the business analysis profession, and continuing to acquire knowledge is very important. Business analysts also learn by sharing, teaching, coaching, and mentoring other business analysts who are in need of learning. Through technology, there are numerous online communities where business analysts can share templates, white papers, webinars, and other training materials to support one another's professional development needs. Obtaining professional certification can also contribute to one's professional development.
3.3.6 EDUCATING ACROSS DISCIPLINES
In addition to mentoring peer business analysts, there is often a need to educate personnel across the organization on elicitation and modeling techniques or on specific tools the business analyst may be using to collaborate with stakeholders.
Business analysts may need to demonstrate the value of business analysis, increase the acceptance of business analysis within the organization, or advance the efficacy of the business analysis center of excellence. They may serve as internal ambassadors to educate others about the value that business analysis provides to organizational and project success.
3.4 BUSINESS ANALYST COMPETENCIES
3.4.1 OVERVIEW
Proficient business analysts possess a variety of skills that enable them to operate successfully at a senior level. Sections 3.4.2 through 3.4.7 present a summary of the knowledge, skills, and personal qualities a business analyst may consider developing to perform effectively in the role. These competencies are further elaborated in Appendix X3. The skill list provided is not intended to be exhaustive, but instead highlights those skills that are most heavily used. The list of skills can serve as a checklist for business analysts to gauge and measure their personal competencies and to highlight areas where future professional development efforts may be targeted.
3.4.2 ANALYTICAL SKILLS
Analytical skills are utilized by the business analyst to process information of various types and at various levels of detail, break the information down, look at it from different viewpoints, draw conclusions, distinguish the relevant from the irrelevant, and apply information to formulate decisions or solve problems. The analytical skills category is composed of creative thinking, conceptual and detailed thinking, decision making, design thinking, numeracy, problem solving, research skills, resourcefulness, and systems thinking.
3.4.3 EXPERT JUDGMENT
Expert judgment relates to the skills and knowledge obtained from acquiring expertise in an application area, Knowledge Area, discipline, industry, etc., as appropriate for the activity being performed. It includes the skills and knowledge acquired through the collective acquisition of business and project experience. Expert judgment is an important component of a business analyst's decision-making process because previous experiences often have parallels to challenges that a business analyst might be facing. Expert judgment includes the skills to apply acquired knowledge and enterprise environmental factors and organizational process assets to perform work effectively. Expert judgment includes enterprise/organizational knowledge, business acumen, industry knowledge, life cycle knowledge, political and cultural awareness, product knowledge, and standards.
3.4.4 COMMUNICATION SKILLS
Communication skills are utilized to provide, receive, or elicit information from various sources. Due to the number of relationships and interactions that business analysts are required to manage and the amount of information that needs to be exchanged, these skills are some of the most critical ones for the business analyst to master. The communication skills category includes active listening, communication tailoring, facilitation, nonverbal and verbal communication, visual communication skills, professional writing, and relationship building.
3.4.5 PERSONAL SKILLS
Personal skills are skills and quality attributes that identify the personal attributes of an individual. Stakeholders, project team members, and peers use the skills and quality attributes in this category to critique how effective a business analyst is on a personal level. When a business analyst is viewed as being strong in any or all of these skills and attributes, he or she is able to build credibility. The personal skills category is composed of adaptability, ethics, learning, multitasking, objectivity, self-awareness, time management, and work ethic.
3.4.6 LEADERSHIP SKILLS
Leadership involves focusing the efforts of a group of people toward a common goal and enabling them to work as a team. Business analysts leverage these skills to lead disparate groups of stakeholders through various forms of elicitation, to sort through stakeholder differences, to help the business reach decisions on requirements and priorities, and ultimately to gain buy-in to transition a solution into the business environment. The leadership category is comprised of change agent skills, negotiation skills, personal development skills, and skills to enable the business analyst to become a trusted advisor.
3.4.7 TOOL KNOWLEDGE
Tool knowledge is composed of various categories of tools that, if mastered, enable the practitioner to work more effectively. Business analysts use various software and hardware products to help them interact with stakeholders and get work done. The tool knowledge category is comprised of communication and collaboration tools, desktop tools, reporting and analysis tools, requirements management tools, and modeling tools.
For more information regarding the individual knowledge, skills, and personal qualities comprising each skill category in Sections 3.4.2 through 3.4.7, refer to Appendix X3.
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