9781780175690 Business Analysis Techniques

Business analysts have always had a wealth of techniques at their disposal but how the toolkit has grown! If you are looking to shine as a business analyst you will be well aware of the importance of becoming the master of our rich BA toolkit, know what technique to use for each occasion and how to use it to good effect. This upgrade on a ‘must have’ BA classic extends the toolkit by another 24 techniques! I encourage all BAs to use this book to build their confidence in their own professionalism and be regarded as masters of their BA toolkit.

Ian Richards, Director, Business Analysis, Capita

I found this new edition to be crammed full of tried, tested and trusted business analysis techniques. Yet again giving the BA more tools for analysis success. Each technique is described in full, with scenarios to bring them to life, along with developed examples. The narrative does not shy away from giving you technique limitations or when to blend techniques together to achieve a better analysis outcome. It’s the BA book I return to again and again.

Sarah Bullen, Head of Business Analysis, BBC, Technology and Digital Products Group, UK

The latest version brings even more techniques to bear, extending to areas of user experience, process improvement and testing; helpfully mapped against key project phases. This book is a must-have resource for all BAs at any stage of their career.

Jamie Clouting, Lead Consultant, BAE Systems Applied Intelligence

Beware, this will very quickly become the most thumbed and tabbed book in your collection. For me it’s a must-have companion, especially for brushing up on a technique you’ve not used in a while or to signpost community members seeking advice to a specific page. Also fond of the addition of aligning techniques to the BA Service Framework, which makes it even easier to find new approaches.

Jamie Toyne, Head of Business Analysis, Ministry of Justice - Digital and Technology

A treasure trove of techniques for every business analyst. Essential reading for anyone entering the profession and an excellent refresher for seasoned BAs. All the techniques are laid out in-synch with most project delivery models making it easy to navigate your way through. Each technique is described with some great thoughts on how to use it. Brilliant to see all the available techniques laid out in one place.

Tazeem Wafa, Principal Business Analyst, Bank of England

This is THE body of knowledge about business analysis techniques. Comprehensive and comprehensible. The presentation of techniques is encyclopaedic, however the authors explain not only what the technique is and how it works, but why, and in what circumstances, you would use it. The use of examples helps enormously to understand how to apply the techniques. For any business analyst looking to expand his/her skill set – and I recommend all business analysts should do so – this is the book.

James Robertson, co-author of ‘Mastering the Requirements Process’

Good chefs have their own variations of classic recipes, but a set of standard recipes is the firm basis for any chef. This book offers such a standard. Sometimes a technique is carried out ‘how we always do it’ but having a clear and complete set of the original definitions helps to keep to the right track. If ever in doubt, you can always begin with, or go back to, the techniques as described here!

Danny Kalkhoven, Le Blanc Advies

Many business analysts still make the mistake of trying to do their job using only a couple of the most basic techniques. Today’s business problems demand that you have far more in your toolkit. This business analysis classic is something every business analyst should have ready to hand when trying to solve a new problem or looking for existing ways to tackle old, intractable ones, and every edition becomes more invaluable.

Kevin Brennan, Chief Business Architect, Aligned Outcomes, and former EVP at IIBA, led development of BABOK Guide versions 2 and 3

Each new edition of Business Analysis Techniques introduces more ideas and tools than the last. But that doesn’t mean it’s carrying any extra weight. On the contrary, it’s pure unadulterated goodness – just the essentials that you need to know about each technique, whether it’s a very well-known standard or something more obscure. The most comprehensive and useful reference work on the ‘mental furniture’ that a BA needs – I recommend it.

Nick de Voil, Director, De Voil Consulting

A must have in your bookshelf, if you are looking to improve your skills in business analysis. 123 tools that can be used on their own or in combination makes it the perfect reference book for hands-on consultants.

Peter Gerstbach, Founder and Managing Director, Gerstbach Business Analyse GmbH

This is the most comprehensive collection of business analyst techniques I’ve come across. The authors have clearly gone to a lot of trouble to balance detail with brevity, and they found just the right balance. The descriptions provide clear direction in the why and how of all the common business analysis techniques and many more. This is a must have resource in the library of every professional business analyst.

Carl Sudholz, Digital Transformation Consultant and Senior Business Analyst, AGContext® Digital Transformations

If you need to put together a business analysis toolkit to use in your forthcoming transformation initiative – as an individual BA, or as a BA team – then Business Analysis Techniques is the perfect source to start with. It is THE book to help you widen your perspectives, boost your curiosity and empathy.

Milena Mileva, Managing Consultant, PMBA

Business analysis practitioners need to learn and utilize the various techniques to create value for the business. This book provides a detailed explanation of various techniques that a business analyst can apply to the initiatives to add value to the stakeholders. The techniques are categorically defined and easy to understand. Keep learning!

Deepak Gupta, Principal Consultant, Wipro Technologies, India

Simple, practical and accessible. Each of the tools are articulated and linked in a way that is quick and easy to understand without the need to wade through pages of theory. The concise examples bring to life when and how to use each of the analysis techniques. Whether you are starting out on your business change career, or you are a seasoned professional, this new volume is an essential reference tool for anyone looking to bring discipline and structure to their analysis.

Christian Hunter, Business Analysis Services Director, Infinity Associates

BUSINESS ANALYSIS TECHNIQUES

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BUSINESS ANALYSIS TECHNIQUES123 essential tools for success Third editionJames Cadle, Debra Paul, Jonathan Hunsley, Adrian Reed, David Beckham and Paul Turner

© BCS Learning and Development Ltd 2021

The right of James Cadle, Debra Paul, Jonathan Hunsley, Adrian Reed, David Beckham and Paul Turner to be identified as authors of this work has been asserted by them in accordance with sections 77 and 78 of the Copyright, Designs and Patents Act 1988.

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Published by BCS Learning and Development Ltd, a wholly owned subsidiary of BCS, The Chartered Institute for IT, 3 Newbridge Square, Swindon, SN1 1BY, UK.www.bcs.org

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Disclaimer:The views expressed in this book are of the authors and do not necessarily reflect the views of the Institute or BCS Learning and Development Ltd except where explicitly stated as such. Although every care has been taken by the authors and BCS Learning and Development Ltd in the preparation of the publication, no warranty is given by the authors or BCS Learning and Development Ltd as publisher as to the accuracy or complete-ness of the information contained within it and neither the authors nor BCS Learning and Development Ltd shall be responsible or liable for any loss or damage whatsoever arising by virtue of such information or any instructions or advice contained within this publication or by any of the aforementioned.

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Publisher’s acknowledgements Reviewers: Katie WalshPublisher: Ian BorthwickCommissioning editor: Rebecca YouéProduction manager: Florence LeroyProject manager: Sunrise Setting LtdCopy-editor: The Business Blend LtdProofreader: Barbara EastmanIndexer: Matthew GaleCover design: Alex WrightCover image: istock/agencybyTypeset by Lapiz Digital Services, Chennai, India.

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http://www.bcs.org

CONTENTS

Figures and tables ix Authors xv Foreword xvii Acknowledgements xix Abbreviations xx Useful websites xxii Preface xxiii

1. STRATEGIC CONTEXT 1 Introduction 1 External environment analysis 3 Internal environment analysis 8 Strategy analysis 17 Performance measurement 30

2. SITUATION INVESTIGATION 34 Introduction 34 The holistic context 36 Qualitative investigation 46 Quantitative investigation 66 Documenting the situation 76

3. FEASIBILITY ASSESSMENT AND BUSINESS CASE DEVELOPMENT 88 Introduction 88 Ideation 89 Option evaluation 100 Governance 121

4. BUSINESS PROCESS IMPROVEMENT 129 Introduction 129 Process investigation 131 Enterprise analysis 137 Event-response analysis 147 Actor-task analysis 159 Process analysis 166 Customer experience analysis 172

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CONTENTS

5. REQUIREMENTS DEFINITION 181 Introduction 181 Requirements elicitation 183 Requirements analysis 200 Requirements documentation and modelling 211 Requirements planning and management 242 Requirements validation 249

6. BUSINESS ACCEPTANCE TESTING 253 Introduction 253 Test condition analysis 254 Test design 269

7. BUSINESS CHANGE DEPLOYMENT 279 Introduction 279 Business readiness assessment 280 People readiness assessment 299 Post-change review 310

8. STAKEHOLDER ENGAGEMENT 318 Introduction 318 Identifying stakeholders 319 Analysing stakeholders 322 Understanding stakeholder perspectives 333 Communicating and negotiating with stakeholders 342

Bibliography 351 Index 355

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LIST OF FIGURES AND TABLES

Figure 1.1 Ansoff’s matrix 9Figure 1.2 The growth share matrix 11Figure 1.3 Resource audit 12Figure 1.4 Simplified VMOST diagram 15Figure 1.5 The business model canvas 18Figure 1.6 Example business model canvas 19Figure 1.7 Johnson and Scholes’s cultural web 21Figure 1.8 Business capability model showing strata and level 1–3

capabilities 25Figure 1.9 Example partial information concepts model 28Figure 1.10 SWOT analysis 29Figure 1.11 Balanced scorecard 31Figure 2.1 Leavitt’s diamond 36Figure 2.2 POPIT model 40Figure 2.3 Cynefin contexts 43Figure 2.4 Background research process 47Figure 2.5 The main stages of interviewing 54Figure 2.6 Structure of an interview 55Figure 2.7 Repertory grid using a 7-point scale 61Figure 2.8 Repertory grid of issues relating to document storage 62Figure 2.9 Template for analysis of storytelling outputs 65Figure 2.10 Revised template for analysis of storytelling outputs 66Figure 2.11 Activity sampling sheet (completed) 68Figure 2.12 Sampling analysis summary sheet 69Figure 2.13 Special purpose record for complaints handling 71Figure 2.14 Detailed weekly timesheet 71Figure 2.15 The sections of a survey 73Figure 2.16 Likert scale applied to survey questions 75Figure 2.17 Fishbone diagram (using the ‘6 Ps’) 77Figure 2.18 Example mind map 79Figure 2.19 Example rich picture 81Figure 2.20 Example RAG assessment images 84Figure 2.21 Social network analysis 85Figure 3.1 Stages in the production of a business case 88Figure 3.2 Options identification 94Figure 3.3 Shortlisting options 95Figure 3.4 Incremental options 96Figure 3.5 Elements of feasibility 97Figure 3.6 Types of cost and benefit 101

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Figure 3.7 Force-field analysis 110Figure 3.8 Scored force-field analysis 111Figure 3.9 The risk management process 118Figure 3.10 Example benefits dependency network 121Figure 3.11 Process for benefits planning and management 123Figure 3.12 Bar chart showing changes and benefits against a timeline 123Figure 4.1 Systemic analysis approach 129Figure 4.2 Storyboard for a holiday 136Figure 4.3 Organisation diagram showing external environment 137Figure 4.4 Completed organisation diagram 138Figure 4.5 SIPOC for a retail organisation 139Figure 4.6 Partial value chain of primary activities 142Figure 4.7 Value chain for an examination body 143Figure 4.8 Value stream for a passenger collecting baggage at an airport 144Figure 4.9 Types of value proposition 146Figure 4.10 Activity diagram notation 148Figure 4.11 Example activity diagram 149Figure 4.12 Partial activity diagram showing multiple outcomes from a decision 150Figure 4.13 Context diagram 152Figure 4.14 Business process notation set 155Figure 4.15 Business process model with detailed steps 157Figure 4.16 Business process model showing rationalised steps 158Figure 4.17 Activity diagram showing steps in the review complaint task 164Figure 4.18 Engagement points between a customer and a supplier 172Figure 4.19 Customer journey map for new boots purchase 173Figure 4.20 Example empathy map 175Figure 4.21 Example value network diagram 179Figure 4.22 Extended value network diagram 179Figure 5.1 Document specification form 184Figure 5.2 Process for developing a scenario 190Figure 5.3 Scenario for a customer booking an online seminar 191Figure 5.4 Wireframe layout 194Figure 5.5 Process for staging a workshop 195Figure 5.6 User classification document 210Figure 5.7 An example class 212Figure 5.8 Association between classes 213Figure 5.9 Association class 214Figure 5.10 Additional class linked to an association class 215Figure 5.11 Reflexive association 215Figure 5.12 Generalisation structure 216Figure 5.13 Class diagram 216Figure 5.14 Context diagram 218Figure 5.15 Partial CRUD matrix 219Figure 5.16 Example entities 221Figure 5.17 One-to-many relationship between entities 221Figure 5.18 Optional relationship between entities 221Figure 5.19 Many-to-many relationship between entities 222Figure 5.20 Resolved many-to-many relationship 222

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Figure 5.21 Additional relationship with link entity 223Figure 5.22 Recursive relationship 223Figure 5.23 Many-to-many recursive relationship 223Figure 5.24 Exclusive relationship 224Figure 5.25 Separated exclusive relationship 224Figure 5.26 Named relationships 224Figure 5.27 Super-type and sub-types structure 225Figure 5.28 Example entity relationship diagram 226Figure 5.29 Partial library ERD 227Figure 5.30 Example requirements catalogue entry 234Figure 5.31 Use case diagram showing key elements 235Figure 5.32 Use case diagram with additional notation 236Figure 5.33 Use case description for ‘Assign resources’ use case 239Figure 5.34 Product features hierarchy 240Figure 5.35 Outer and inner timeboxes 245Figure 5.36 Structure for a typical timebox 247Figure 6.1 Decision table structure 259Figure 6.2 Decision tree for rail fares example 265Figure 6.3 ‘Product’ class 266Figure 6.4 State machine diagram for ‘Order’ class 267Figure 6.5 UML state machine diagram extract for ‘Invoice’ class 268Figure 6.6 Black box testing process 272Figure 6.7 Boundary value analysis process 273Figure 6.8 Extract from Figure 6.4 showing guard condition to be tested 273Figure 7.1 Example Kanban board 288Figure 7.2 Example use of Kanban in an Agile project 289Figure 7.3 The eight stages in John Kotter’s change process 290Figure 7.4 Kurt Lewin’s stages of organisational change 293Figure 7.5 McKinsey 7S 295Figure 7.6 The conscious competence model 300Figure 7.7 Alternative representations of the conscious competence model 300Figure 7.8 Single and double loop learning 303Figure 7.9 Johari window 305Figure 7.10 Kolb learning cycle 307Figure 7.11 SARAH curve of emotional responses to change 309Figure 7.12 Benefits management process 312Figure 7.13 Feedback grid 314Figure 8.1 Stakeholder wheel 320Figure 8.2 3 × 3 power/interest grid 325Figure 8.3 Example RACI matrix 329Figure 8.4 Example BAM 341Figure 8.5 Five conflict positions 349

Table 1.1 PESTLE description 4Table 1.2 Porter’s five forces 7Table 1.3 Factors to consider when applying Porter’s five forces analysis 8Table 1.4 Ansoff’s matrix 9

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Table 1.5 Growth share matrix quadrants 11Table 1.6 Resource audit 13Table 1.7 Example of a resource audit 14Table 1.8 Example of a VMOST analysis 16Table 1.9 Factors to consider when applying VMOST analysis 17Table 1.10 Components of the business model canvas 18Table 1.11 Example cultural web analysis 21Table 1.12 Noun and verb phrases 27Table 1.13 Example textural description of information concepts 27Table 1.14 SWOT analysis 29Table 1.15 Balanced scorecard 31Table 2.1 Leavitt’s diamond elements 37Table 2.2 Example application of Leavitt’s diamond 39Table 2.3 POPIT elements 40Table 2.4 POPIT model and example situation investigation questions 42Table 2.5 Cynefin contexts description 44Table 2.6 Application of Cynefin by BAs 45Table 2.7 Considerations during background research 47Table 2.8 Areas to consider during ethnographic research 49Table 2.9 Challenges with conducting ethnographic research 50Table 2.10 Focus group questions and areas for exploration 53Table 2.11 Question types 56Table 2.12 The four repertory grid steps 61Table 2.13 Success factors related to surveys 73Table 2.14 Survey question types 75Table 2.15 Roles within social network analysis 85Table 2.16 Approaches for obtaining social network analysis information 86Table 2.17 Example uses of social network analysis output 87Table 3.1 The four discovery techniques 91Table 3.2 Applying the discovery techniques 92Table 3.3 Business issues to be considered in a business case 97Table 3.4 Technical issues to be considered in a business case 98Table 3.5 Financial issues to be considered in a business case 99Table 3.6 Tangible costs – one-off or initial 102Table 3.7 Tangible costs – ongoing 104Table 3.8 Intangible costs 104Table 3.9 Tangible benefits 104Table 3.10 Intangible benefits 106Table 3.11 Benefit categories 108Table 3.12 Approaches to converting measurable benefits into quantifiable benefits 109Table 3.13 Issues to be addressed in an impact analysis 112Table 3.14 Payback or break-even analysis 114Table 3.15 Discounted cash flow/net present value calculation 116Table 3.16 Scales for risk assessment 119Table 3.17 Possible risk actions 120Table 3.18 Elements of a benefits plan 124Table 3.19 Contents of a business case 126Table 4.1 Stages in a protocol analysis 132Table 4.2 Stages of a shadowing exercise 133

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Table 4.3 Issues to be considered in shadowing 134Table 4.4 Primary activities in Porter’s value chain 140Table 4.5 Primary activities in a manufacturing value chain 140Table 4.6 Primary activities in a service value chain 141Table 4.7 Support activities in Porter’s value chain 141Table 4.8 Business events 151Table 4.9 Examples of business events 153Table 4.10 Example hierarchical numbering system 157Table 4.11 Contents of a task definition 162Table 4.12 Example task description 165Table 4.13 TIMWOODS – the eight wastes of Lean 171Table 4.14 Stages in the creation of customer journey maps 174Table 5.1 Information recorded about the data on a ‘document’ 185Table 5.2 Categories of prototype 187Table 5.3 Advantages of prototyping 188Table 5.4 Disadvantages of prototyping 189Table 5.5 Steps in developing a scenario 190Table 5.6 Workshop roles 195Table 5.7 Workshop planning aspects 196Table 5.8 Elements for a successful workshop 197Table 5.9 Workshop ice-breaking techniques 198Table 5.10 Workshop creative thinking techniques 198Table 5.11 Workshop issues 199Table 5.12 MoSCoW categories 202Table 5.13 Product with high number of threshold attributes 205Table 5.14 Product with high number of excitement attributes 205Table 5.15 Requirements sub-categories 208Table 5.16 Types of responses encountered during negotiations 209Table 5.17 Three compartments of a class 213Table 5.18 Supporting information for an entity relationship model 226Table 5.19 Contents of a business requirements document 231Table 5.20 Contents of a requirements catalogue entry 232Table 5.21 Key elements of a use case diagram 236Table 5.22 Additional use case elements 237Table 5.23 Entries in a use case description 238Table 5.24 Requirements estimation techniques 243Table 5.25 Key timeboxing principles 247Table 5.26 Characteristics of good requirements 250Table 6.1 Example requirements and acceptance criteria 256Table 6.2 The five PLUME categories 258Table 6.3 Decision table elements 259Table 6.4 Condition stub in a rail fare decision table 260Table 6.5 Decision table condition entries with possible combinations 261Table 6.6 Decision table with three conditions and possible combinations 261Table 6.7 Action stub in a decision table 261Table 6.8 Decision table with two conditions 262Table 6.9 Decision table with three conditions 262Table 6.10 Decision table with rationalised conditions 263Table 6.11 Decision table with exclusive conditions 264

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Table 6.12 Extended-entry decision table 264Table 6.13 A/B testing process 271Table 6.14 Example conditions for items purchased and discounts awarded 274Table 6.15 Example business rule partitions 276Table 6.16 Partition and boundary test values 276Table 6.17 Example set of tests for login function to meal delivery website 277Table 6.18 Example test script for login function 278Table 7.1 Change deployment strategies 281Table 7.2 Advantages and disadvantages of change deployment strategies 282Table 7.3 CPPOLDAT dimensions 284Table 7.4 Five core properties of Kanban 287Table 7.5 Three stages of Lewin’s change model 294Table 7.6 Dimensions of the McKinsey 7S framework 296Table 7.7 Example of using the outcome frame 298Table 7.8 Stages of the conscious competence model 301Table 7.9 Honey and Mumford’s four learning styles 304Table 7.10 Johari window quadrant descriptions 306Table 7.11 Stages of the Kolb learning cycle 307Table 7.12 Stages of the SARAH curve 309Table 7.13 Benefits plan elements and possible benefits realisation issues 311Table 7.14 Feedback grid quadrant explanations 314Table 7.15 Considerations when arranging a project review meeting 316Table 8.1 Descriptions of stakeholder wheel groups 320Table 8.2 2 × 2 power/interest grid category descriptions 324Table 8.3 3 × 3 power/interest grid category descriptions 325Table 8.4 Power/interest grid stakeholder management strategies 327Table 8.5 Descriptions of RACI elements 328Table 8.6 Stakeholder management plan contents 331Table 8.7 Stakeholder management plan extract 333Table 8.8 Definition of the CATWOE elements 334Table 8.9 Example CATWOE 336Table 8.10 Descriptions of types of BAM activities 339Table 8.11 Written communication and the 4As 345Table 8.12 Principled negotiation step descriptions 345Table 8.13 Aspects relating to people during negotiations 347Table 8.14 Description of the Thomas–Kilmann conflict positions 349

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AUTHORS

James Cadle has spent his career in the management services field. He has been a systems analyst, business analyst, consultant and project manager and, more recently, he has developed and presented training courses in his chosen fields. He is the co-author of five books: Project Management for Information Systems; Business Analysis; Business Analysis Techniques; The Human Touch and Developing Information Systems. He is a former examiner for the BCS International Diploma in Business Analysis. James is a Chartered Fellow of BCS (FBCS CITP), a full Member of the Association for Project Management (MAPM) and a Fellow of the Royal Society of Arts (FRSA).

Debra Paul is the managing director of Assist Knowledge Development Ltd, a training and consultancy company specialising in business analysis. Debra jointly edited and authored the publication, Business Analysis, and is also the co-author of Delivering Business Analysis, Agile and Business Analysis, Business Analysis Techniques and The Human Touch. Debra created the Business Analysis Service Framework as part of her doctoral research. Debra is a Chartered Fellow of BCS and is a visiting lecturer at Henley Business School, Reading University. Debra is a founder member of the BA Manager Forum and was the chief architect of the BCS Advanced Diploma in Business Analysis.

Jonathan Hunsley has a strong track record in business analysis, business change consultancy and capability development. He has worked in the financial services and management consultancy sectors and now combines business analysis training and consultancy assignments in his role as a director of Assist Knowledge Development Ltd. He is a BCS oral examiner, a Chartered Member of BCS and holds the Advanced International Diploma in Business Analysis. He also developed the BCS Professional Certification in Advanced Requirements Engineering. Jonathan was a contributor to the publication Business Analysis (4th edition).

Adrian Reed is a true advocate of the analysis profession. In his day job, he acts as principal consultant and director at Blackmetric Business Solutions, where he provides business analysis consultancy and training solutions to a range of clients in varying industries. He is a past president of the UK chapter of the IIBA® and he speaks internationally on topics relating to business analysis and business change. Adrian wrote the 2016 book Be a Great Problem Solver… Now and the 2018 book Business Analyst. You can read Adrian’s blog at https://adrianreed.co.uk and follow him on Twitter at https://twitter.com/UKAdrianReed.

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AUTHORS

David Beckham has spent his career working in financial services, initially at Norwich Union then subsequently with Aviva. His career began in policy administration then moved into IT and he has been a business analyst in different guises since 1995. A founding member of the Business Analysis Practice, he later had two terms as the practice lead. He worked on numerous large change programmes and was heavily involved in building the capability of business analysis within the organisation over the last decade. He has regularly presented at the European BA Conference and has had several articles published on business analysis topics. Despite being diagnosed with Parkinson’s disease in 2010, at the age of 43, David continues to be a passionate advocate of the profession and the benefits it gives to organisations everywhere. Since 2015 David has spoken regularly on the positive power of change, both on a professional and a personal basis. David left Aviva in 2019 after 33 years to start his own consultancy.

Paul Turner FBCS is a director of Business & IS Skills Ltd. He has worked in the areas of business analysis, solution development and IS consulting for over 35 years. He was the BCS Chief Examiner for Solution Development for several years and was a co-author of the BCS publication Business Analysis Techniques (1st and 2nd editions). Paul is a BCS oral examiner for the International Diploma in Business Analysis and is a member of the BCS Advisory Panel. He was a member of the founding group for the BA Conference Europe and has delivered keynote presentations and workshop sessions at conferences across Europe.

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FOREWORD

Without a toolkit, a business analyst is just another person with an opinion.

The extensive toolkit that has been carefully curated within this book shows the breadth of situations which require a logical approach, analytical thinking and a commitment to communication. The techniques provide the means for business analysts to analyse situations and communicate their findings effectively and efficiently.

Many of the techniques presented stem from the works of prominent researchers and thought leaders, including Michael Porter and Peter Checkland, which provides a sound evidence base for their use. More importantly though, these techniques have been applied by thousands of business analysts and other change professionals across all sectors and industries. These practitioners have road-tested the techniques in a vast range of situations with a wide variety of stakeholders.

Applying the appropriate technique, with the appropriate audience at the appropriate time is, of course, the challenge facing business analysis practitioners. Selecting the right approach is influenced by our breadth of knowledge and depth of experience. The authors have shared their knowledge and experience in way which is easy to follow, and guides practitioners to successfully select and apply the techniques.

Diagrams and pictorial elements of techniques provide a key element of the toolkit. Business analysts must produce outputs which promote engagement and debate, which encourage contribution and simplify complex concepts. The visual techniques included in this book provide a range methods to facilitate positive and inclusive discussion and enable holistic thinking.

The book is now structured around the business outcome that is required from the analysis effort, from understanding the strategic context to defining requirements; from assessing feasibility, to deploying change. By identifying which service we are offering, from the BA Service Framework (BASF), we can identify which techniques will be most useful.

The third edition adds new techniques, which reinforces the evolutionary nature of business analysis. It is the responsibility of all analysts to commit to continuous professional development, go beyond our comfort zones and try new methods to support investigation and analysis within our organisations. Contained within these chapters is the knowledge needed carry out methodical and structured business analysis, tailored to the environment. Through the application of these techniques we will gain the experience and confidence to transform this knowledge into valuable skills.

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FOREWORD

Above all else, this book reminds us that business analysis is not a single activity (e.g. workshops) with a narrow range of outputs (e.g. user stories). We must consider people, processes and data, and to do this we need a wide range of techniques at our fingertips.

Christina LovelockBusiness Analysis Leader, Co-Author of

Delivering Business Analysis: The BA Service Handbook

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ACKNOWLEDGEMENTS

This edition of Business Analysis Techniques includes chapter contributions by Jonathan Hunsley, Adrian Reed and David Beckham. It has been a privilege to collaborate with them and to gain from their extensive knowledge and experience.

We also wish to thank our colleagues at AssistKD for their support during the writing and production process. In particular, we wish to thank Peter Thompson for his technical knowledge and expertise regarding UML techniques, Neil Shorter for his ever-present technical and security support, and Alan Paul for providing the extensive proof-reading service that has been so valuable on so many occasions.

Finally, this book could not have been produced without the professional publishing capability provided by Ian Borthwick and Becky Youé from BCS. It has been a pleasure working with them when developing this edition and, undoubtedly, the book has benefited from their expert support.

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LIST OF ABBREVIATIONS

4As aim, audience, arrangement, appearance7Ss shared values, strategy, structure, systems, style, staff, skillsARM availability, reliability and maintainabilityATM automated teller machineBA business analystBAM business activity modelBASF BA Service FrameworkBATNA best alternative to a negotiated agreementBCA benefit–cost analysis (see also CBA)BCG Boston Consulting GroupBPMN business process model and notationBSC balanced scorecardCATWOE customer, actor, transformation, world view, owner, environmentCBA cost–benefit analysis (see also BCA)CPPOLDAT customer, product, process, organisation, location, data,

application, technologyCIA control, influence, acceptCMS contact management systemCRUD create, read, update, deleteCSF critical success factorDCF discounted cash flowDSDM Dynamic System Development Method ERD entity relationship diagramEU European UnionFTE full-time equivalentGDPR General Data Protection RegulationHR human resourcesINVEST independent, negotiable, valuable, estimatable, small, testableIRR internal rate of returnIT information technologyKPI key performance indicator

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LIST OF ABBREVIATIONS

LDM logical data modelling/modelMoSCoW must have, should have, could have, want to have but won’t this

timeMOST mission, objectives, strategy, tacticsNLP neuro-linguistic programmingNPV net present valuePCT personal construct theoryPEST political, economic, socio-cultural, technologicalPESTEL political, economic, socio-cultural, technological, environmental

(or ecological), legalPESTLE political, economic, socio-cultural, technological, legal,

environmentalPID project initiation documentPINGVEST prioritisation, independent, negotiable, goals, valuable,

estimatable, small, testablePLUME productivity, learnability, user satisfaction, memorability, error

ratesPOPIT people, organisation, processes, information, technologyRACI responsible, accountable, consulted, informedRAG red, amber, greenRASCI responsible, accountable, supportive, consulted, informedROI return on investmentSARAH shock, anger, rejection, acceptance, hopeSCAMPER substitute, combine, adapt, modify (or magnify or minify), put to

another use, eliminate, reverseSIPOC supplier, inputs, process, outputs, customerSMART specific, measurable, achievable, relevant and time-basedSSADM Structured Systems Analysis and Design MethodSTEEPLE socio-cultural, technological, environmental (or ecological),

economic, political, legal, ethicalSTROBE STRuctured Observation of the Business EnvironmentSUAVE stable, unique, abstracted, value driven, executiveSWOT strengths, weaknesses, opportunities, threatsTIMWOODS transport, inventory, motion, waiting, over-production, over-

processing, defects, skillsTOWS threats, opportunities, weaknesses and strengthsUML Unified Modeling LanguageVMOST vision, mission, objectives, strategy, tacticsVOCATE viewpoint, owner, customer, actor, transformation, environmentWIP work in progressWSJF weighted shortest job first

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USEFUL WEBSITES

https://agilebusiness.org/page/whatisdsdm

https://assistkd.com

http://www.bamanagerforum.org/

https://www.bcs.org

https://iiba.org

https://sfia-online.org/en

xxii

PREFACE

This is the third edition of this book. The first, published in 2010, described 72 techniques; the second, published in 2014, described 99 techniques; this edition extends to 123 techniques. This growth reflects both the developments in business analysis over the last seven years and the ability of business analysts to apply and adapt techniques from other disciplines where they appear relevant and useful.

Professional business analysts have at their disposal a range of techniques from which they can select those most appropriate to their current task. Some techniques are used regularly, others less frequently – but often when a particular technique is needed nothing else will be as effective.

This edition is structured differently from its predecessors. Business Analysis, fourth edition (BCS, 2020) introduced the Business Analysis Service Framework (BASF) and it seemed sensible to align the structure of this book with this framework. Most of the techniques could be used to carry out several BASF services, so have been allocated where we felt was most relevant. Given that the skill of the business analyst lies in selecting and applying techniques as appropriate, we anticipate that this will be in line with current practice and should raise opportunities rather than challenges.

Each section of the book covers a BASF service, divided into logical groupings of techniques. The structure that has proved successful in earlier editions of this book has been applied for each technique: an overview description followed by a discussion of how the technique might be used.

Although the coverage has been extended to 123 techniques, there are many more used within business analysis that could have been covered; we are constantly advised of new – or newly popular – techniques. Given that the importance of the services offered by business analysts is increasingly recognised, and those services continue to flourish and grow, who knows how many business analysis techniques might be available in the future?

The expansion in the volume of techniques, and the need to revisit those that have been in the book since its inception, has prompted us to extend the writing team. We are delighted to welcome contributing authors Jonathan Hunsley, Adrian Reed and David Beckham. Apart from working on the additional techniques presented in this edition, they have also brought new perspectives and current experiences that have enhanced and refreshed the technique descriptions. Our long-term collaborator, Paul Turner, having contributed significantly to the earlier editions, provided an experienced critical eye while contributing the occasional pearl of wisdom for this edition.

xxiii

PREFACE

Context is key for business analysis; there is no ‘one size fits all’ technique or method. Our aim in writing this book is to provide a compendium of techniques that business analysts can discover (or rediscover) when the situation demands. We hope this book enables professional business analysts to develop their toolkit so that they can apply and adapt techniques as the situation requires.

James CadleDebra PaulAugust 2021

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1 STRATEGIC CONTEXT

INTRODUCTION

The development of business analysis as a professional discipline has extended the role and responsibilities of the business analyst (BA). Increasingly, BAs are engaged early in the business change lifecycle. They collaborate with a range of different stakeholders and other roles to investigate ideas and problems, formulate options and produce business cases setting out their conclusions and recommendations. As a result, in project-driven change environments, this initial analysis work will often precede the initiation of a formal project and the assignment of a project manager.

The early engagement of BAs places a critical responsibility upon them: the need to ensure that all business changes are in line with the vision, mission, objectives and strategy of the organisation. This business context is the key foundation for understanding and evaluating all ideas, proposals, issues and problems put forward. While few BAs are directly involved in analysing and developing organisational strategy, it is vital that they know about the strategy of their organisation so that they can conduct their work with a view to supporting its implementation and the achievement of the business objectives. Therefore, it could be argued that BAs have responsibility for the following areas:

y Identifying the tactical options that will address a given situation and will support the delivery of the business strategy.

y Defining the tactics that will enable the organisation to achieve its strategy.

y Supporting the implementation and operation of those tactics.

y Redefining the tactics after implementation to take account of business changes and to ensure continuing alignment with business objectives.

y Maintaining an awareness of the external business environment.

y Working with other stakeholders such as product managers and product owners to develop the medium- and long-term strategy for a product or service and aligning this with the broader organisational strategy.

Given the increasing emphasis on early-engagement business analysis, and the need for this work to align with the business strategy and objectives, an understanding of strategic analysis techniques is essential across all of the business analysis services in the BA Service Framework (BASF).

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This chapter describes a range of techniques for carrying out strategic analysis and definition, plus techniques to monitor ongoing performance. The following four areas are covered:

y strategy analysis, including external environment and internal capability;

y strategy definition;

y strategy implementation;

y performance measurement.

External environment analysis (Techniques 1–2)

Organisations must assess and address changes that have arisen, or can be predicted to arise, within their operating business environment. Such changes occur constantly, and any organisation that fails to identify and respond to them runs the risk of encountering business problems or even the failure of the entire enterprise. Senior management should carry out regular monitoring of the business environment in order to identify any influences that may require action.

The techniques covered in this section are:

y PESTLE analysis;

y Porter’s five forces analysis.

Internal environment analysis (Techniques 3–6)

These techniques are used to analyse the internal capability of an organisation to gain insights into its areas of strength and its inherent weaknesses, and to identify possible strategic approaches available to the organisation.


y Ansoff’s matrix;

y growth share matrix;

y resource audit;

y VMOST analysis.

Strategy analysis (Techniques 7–11)

During strategy definition, the results of the external and internal environmental analyses are summarised and consolidated in order to examine the situation facing the organisation and identify possible courses of action. When defining the business strategy, the factors outside the management’s control are examined within the context of the organisation and its resources.


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STRATEGIC CONTEXT

y business model canvas;

y cultural web;

y business capability model;

y information concepts model;

y SWOT analysis.

Performance measurement (Techniques 12–14)

All organisations need to monitor performance. This section explains three techniques used to identify performance measures and carry out the performance evaluation.


y balanced scorecard;

y critical success factors;

y key performance indicators.

EXTERNAL ENVIRONMENT ANALYSIS

Technique 1: PESTLE analysis

Variants/aliasesVariants: PEST (political, economic, socio-cultural, technological); STEEPLE (socio-cultural, technological, environmental (or ecological), economic, political, legal, ethical).

Alias: PESTEL (political, economic, socio-cultural, technological, environmental (or ecological), legal).

Description of the techniquePESTLE analysis provides a framework for investigating and analysing the external environment for an organisation. The framework identifies six key areas that should be considered when attempting to identify the sources of change. These six areas are shown in Table 1.1.

Using PESTLE analysisThe PESTLE analysis technique is usually used in a meeting or workshop where a variety of ideas and opinions can be sought. Representatives from a range of functions should be present so that they can provide specialist information. For example, legal representatives would be able to provide information about changes to relevant laws and regulations. It is a good idea for departmental representatives to research any aspects that may impact the organisation prior to carrying out a PESTLE analysis. This could involve obtaining reports from research providers such as Dun & Bradstreet or Gartner.

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Table 1.1 PESTLE description

Category Description

Political Examples of political factors could be a potential change of government, with the corresponding changes to policies and priorities, or the introduction of a new government initiative. These may be limited to the home country within which the organisation operates, but this tends to be rare these days since many changes have an effect in several countries. The development of bodies such as the European Union (EU) and the growth of global trade and multinational organisations have changed the scope of political activity. This has increased the possibility of political issues arising that may impact upon the organisation and how it operates.

Economic Economic factors may also be limited to the home country, but as global trade continues to grow, economic difficulties in one nation tend to have a broad, often worldwide, impact. Examples of economic factors could be the level of growth within an economy, or market confidence in the economies within which the organisation operates. The economic impact of the United Kingdom (UK) leaving the EU, and its impact on domestic UK businesses, is a recent example.

Socio-cultural

Socio-cultural factors are those arising from customers or potential customers. These changes can often be subtle, and they can be difficult to predict or identify until there is a major impact. For example, the preference for flexible and home-working is a social trend that has increased in recent years.

Technological This area covers factors arising from the development of technology. There are two types of technological change: there can be general developments in information technology (IT), and there can be developments in technology specific to an industry or market such as enhancements to manufacturing technology.

IT developments can instigate extensive business impacts, often across industries or business domains and on a range of organisations. It is often the case that there is a failure to recognise the potential use of the technology – at least until a competitor emerges with a new or enhanced offering. For example, increased functionality of mobile technology or extended bandwidth for internet transactions can present opportunities to many organisations. However, the identification of such technological advances is critical if an organisation is to recognise the potential they offer.

Legal It is vital to consider factors arising from changes to the law, with many industries facing increasing regulatory and legislative obligations. Legal compliance has become such an important issue that many business analysis assignments have been carried out for the purpose of ensuring compliance with particular laws or regulations. Some legal issues may originate from the national government but others, such as

(Continued)

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STRATEGIC CONTEXT

Table 1.1 (Continued)


international laws or global accounting regulations, may operate across a broader spectrum. One key issue when considering the legal element of the PESTLE analysis is to recognise laws that have an impact upon the organisation even though they originate from countries other than that in which the organisation is based. This situation may occur where an organisation is operating within the originating country or working with other organisations based in that country or free trade area. Recent examples include data protection legislation such as the EU’s General Data Protection Regulation (GDPR), which applies to organisations inside and outside the EU.

Environmental Factors arising from concerns about the natural or ecological environment (in other words the ‘green’ or sustainability issues), including increasing concerns about climate change and carbon emissions.

The PESTLE technique is straightforward to use. Typically, each element is considered in turn and any potential issues for that area documented. Once all of the elements have been considered, the factors listed are evaluated in order to identify those most likely to affect the organisation. This results in a list of key external influences that could cause it to take action – either to gain from an opportunity that appears to be present or to ensure that any threats are avoided.

Two criteria need to be applied when using the PESTLE technique to identify relevant factors for the organisation: first, the factors are external to the organisation and should be outside its sphere of control; second, there must be a possibility that the factors may impact upon the organisation.

A common error when using PESTLE is to identify a potential course of action for the organisation rather than highlight an external factor that is likely to have an impact upon it. These external factors are shown as opportunities and threats in a SWOT analysis (Technique 11), so when using PESTLE the focus should be on identifying external factors and not on deciding what to do about them. That analysis comes later. For example, in a retail enterprise the following might be identified:

y Environmental factors concerning the use of plastic wrapping on fresh food items threaten to damage the market perception of the company, and thus constitute a threat to the business. This would be included in a SWOT analysis.

y Having ‘plastic free aisles’ where fresh foods are available unwrapped is a possible response to the threat. This is neither an opportunity nor a threat and would not be included in a SWOT analysis.

There is a critical difference between an external factor that may affect the organisation and the possible courses of action that may be taken in response to the factor. Moving

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from a threat to a quick solution is not effective strategic analysis and could lead to simplistic, ineffective solutions.

The objective when using PESTLE is to identify factors that could affect the organisation. Therefore, it is of little benefit to spend time considering whether a government initiative should be filed under ‘political’ or if ‘legal’ would be preferable. The technique is invaluable in identifying factors to be considered and to be dealt with by taking action. The categorisation of these factors has little, if any, value.

Although the technique is usually seen as one where the external environment is considered, PESTLE may also be used to analyse influences operating within an organisation. This situation arises where issues or ideas concerning a particular function or department are under examination. An analysis of the external factors that may impact upon that department can help in a number of ways, from clarifying reasons for change to identifying options. For example, if a PESTLE analysis is carried out for the human resources (HR) department, there may be factors within the wider organisation that fit the two criteria – they are outside the department’s control and are likely to impact upon its work. There may have been poor company results resulting in a recommendation to senior management from the finance department that recruitment and training should cease for a six-month period. This decision will affect the work, but is outside the control of the HR department. Therefore, it is an external factor to the department but an internal factor to the business as a whole.

Technique 2: Porter’s five forces analysis

Variants/aliasesNone.

Description of the techniquePorter’s five forces analysis is also used to consider the external business environment, but it has a different focus from that of PESTLE. This technique examines competition within the business domain or industry within which an organisation operates and identifies the business pressures that it may face. The analysis, derived from using the five forces framework, is usually applied to a suite of products or services delivered by an enterprise.

Michael Porter divided the potential sources of competitive pressures within an industry into five categories. These categories and the factors to consider in each case are described in Table 1.2.

The answers to these questions help to identify the factors within the industry or business domain that have the potential to impact upon the organisation, either positively or negatively.

Using Porter’s five forces analysisThe first step in using this technique is to decide which industry or business domain the organisation operates within; this is a key decision when using the technique as the results may vary considerably depending on the industry at the heart of the analysis. For example, the industry in which a company selling expensive handbags operates may be considered from two points of view:

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STRATEGIC CONTEXT

Table 1.2 Porter’s five forces

Category Factors to consider

Industry competitors

What is the level of competition for the products or services in this industry? Is the organisation in a good competitive position or is it a minor player? Are there several competitors that hold the power in the industry?

Potential entrants

Are there barriers to entry, such as the need for large amounts of money or expertise? Is it possible to start up an organisation offering these products or services without much financial support? What is the likelihood of new entrants coming into the industry?

Substitutes What is the range of substitutes available? What is the position of the organisation when compared to the suppliers of these substitutes?

Buyers How much choice do buyers have? Can they switch suppliers easily? Do they have the power in the relationship or are they locked into the supplier?

Suppliers How many suppliers are available? Is this a competitive situation where the organisation has a choice of suppliers? Do the suppliers have the power in the relationship because they operate in an area of limited supply?

y The company could be considered to operate in the business of designing, marketing and selling handbags. In this case, the competitors are the other handbag companies, and the substitute products would include other products used to carry personal items – such as rucksacks and even plastic carrier bags. The industry is limited to products of a particular nature: bags.

y The company could be considered to operate in the business of providing luxury giftware. In this case the competitors still include the other handbag companies, but they also include companies selling other luxury goods such as perfume and jewellery. The list of substitutes could extend to glassware or even donations to charity. Examined this way, the industry is much larger, the potential market greater and the range of pressures that may impact upon the company more extensive.

Once the industry has been decided upon, the five categories are examined to identify the pressures that exist between the organisation and each of them. Table 1.3 gives some examples of these.

The answers to these questions help to identify the factors that have the potential to impact upon the organisation either positively or negatively. In this example, there may be pressures, or threats, from competitors and new entrants, whereas the relationships with the buyers and the suppliers are in the company’s favour – these present opportunities.

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Table 1.3 Factors to consider when applying Porter’s five forces analysis

Category Example

Industry competitors

This is an examination of the other companies operating within the industry and the level of competition between them. Does our handbag company hold a powerful position or is it a minor player that is vulnerable to competitive moves?

Potential entrants

Could organisations operating in other, similar industries move into this area? For example, could an existing fashion company decide to develop a range of designer handbags? How great are the barriers to entry into this industry, and do they deter potential entrants?

Substitutes What business pressures may arise from possible substitute products such as rucksacks?

Buyers This could be an interesting area to explore for the handbag industry, as some high-quality manufacturers restrict the sales outlets for their products and minimise the opportunities for buyers to shop around and compare prices. If this is a particularly desirable brand, the power of the buyer could be extremely limited.

Suppliers Again, this could be an interesting aspect because luxury brands tend to be exclusive and hold a lot of power over their suppliers.

Five forces analysis requires knowledge about the industry and the different organisations or individuals that participate in its work. Areas such as substitute products can be difficult to analyse, and possible substitutes can be missed. At one time some industries had high barriers to entry because of the financial requirements, so new entrants were considered unlikely. However, the rise of businesses with access to significant funds, such as the major supermarkets, has meant that high financial requirements may not deter new entrants. Other industries with traditional high barriers to entry have seen these reduce with the increase of online technologies and platforms. A boutique clothing retailer would once have needed a bricks-and-mortar shop and would need to invest heavily in advertising; now they might not even need a website (let alone a physical shop) if they sell their clothes on an auction site or other platform.

INTERNAL ENVIRONMENT ANALYSIS

It is helpful to use a combination of techniques when analysing an organisation’s internal capability, since relying on a single technique would provide only limited information. Using a combination of the VMOST and resource audit techniques that are described in this section, with possibly the growth share matrix also, helps to provide a detailed picture of the areas where there is strong capability and those where there are weaknesses.

These techniques help the BA to identify areas that are strengths the organisation can harness, and those that are weaknesses that could undermine it. These strengths and weaknesses can later be combined with the opportunities and threats already described to build a SWOT analysis (Technique 11) for the organisation. Ansoff’s matrix (Technique 3) can help to determine possible strategic responses to strengths and weaknesses.

8

STRATEGIC CONTEXT

Technique 3: Ansoff’s matrix

Variants/aliasesAliases: Ansoff’s Box; Ansoff Product and market growth matrix.

Description of the techniqueAnsoff’s matrix provides a set of strategic alternatives that may be considered by organisations when defining their business strategy. The box shown in Figure 1.1 maps new and existing markets against new and existing products, creating a 2 × 2 matrix.

Figure 1.1 Ansoff’s matrix (Source: Ansoff 1987)

ProductsExisting New

Existing

New

Markets

Marketpenetration

Marketdevelopment

Productdevelopment

Diversification

Four quadrants are created, as described in Table 1.4.

Table 1.4 Ansoff’s matrix

Quadrant Description

Market penetration

This situation is where existing markets are targeted for greater penetration by existing products. In this approach, organisations decide to continue with their existing products and markets but to adopt tactics such as additional promotion, increased sales efforts or revised pricing approaches in order to generate increased market share.

Market development

In this situation the organisation adopts a strategy of exploring other markets for its products. This may mean targeting new markets in other countries or applying the products to different markets within the existing geographical areas of operation.

Product development

This strategy involves developing new products or services, and targeting existing markets. Another approach to it would be to add further, related features to existing products and services.

Diversification The most radical strategic alternative is to develop new products or services and target new markets. This is a risky strategy to adopt since it does not use existing expertise or leverage the current customer base.

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Using Ansoff’s matrixOnce a SWOT analysis (Technique 11) has been completed it is vital that actions are identified to address the issues raised in the SWOT analysis and determine an effective way forward. These actions may involve revisiting the organisation’s strategy, and Ansoff’s matrix provides a set of options that support this work. For example, if a weakness has been identified in the performance of the organisation’s product range, two possible options from Ansoff’s matrix may be considered: to adopt a market penetration strategy by initiating extensive promotional and sales activity, or to adopt a product development strategy by initiating the enhancement of the product portfolio.

Ansoff’s matrix provides a means of identifying and evaluating the strategic options open to the organisation in the light of the information presented in the SWOT analysis. Together these techniques are extremely powerful in ensuring that any strategic analysis is carried out in a formal, informed manner. The assessment of the advantages and disadvantages of the four options presented in Ansoff’s matrix provides a systematic approach to strategy definition. The BA can be confident that the business strategy that emerges from this work is based upon firm foundations.

The strategy derived from the options provides information that will help the senior management to develop a new VMOST analysis (Technique 6) for the organisation. While the ‘mission’ may still pertain, the business ‘objectives’ may need to be revised, the ‘strategy’ description will need to be changed and the ‘tactics’ that will enable the organisation to meet the objectives and deliver the strategy will need to be redefined.

Technique 4: Growth share matrix

Variants/aliasesAliases: Boston Consulting Group matrix; BCG matrix; Boston Box.

Description of the techniqueThe growth share matrix was developed by the Boston Consulting Group (BCG) to aid portfolio management. The matrix is a 2 × 2 matrix with four quadrants, as shown in Figure 1.2. The axes represent low to high market growth and high to low relative market share. The quadrants represent the areas shown in Table 1.5.

Using the growth share matrixThe growth share matrix is used to assess an organisation’s products and services according to their relative market shares (share relative to the third ranked player) and their market growth prospects. The portfolio of products and services is examined, and each of them is placed within the most appropriate quadrant. This helps to identify strengths and weaknesses within the portfolio. For example:

y When a product has been identified as a ‘dog’ it may be time to remove it from the portfolio. Even a limited amount of investment in a ‘dog’ may be a waste of finance that could generate greater benefits if spent elsewhere. Alternatively, it may be worth considering whether there is any action that could improve the situation – perhaps enhancing the product or selling it in a different market in order to generate a higher volume of sales or greater profitability. Both courses of action would require investment, so the prospects for improvement would need to be assessed carefully.

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STRATEGIC CONTEXT

Figure 1.2 The growth share matrix

Low

High

Relative market share

Low

High

Cash cow Dog

Star Question mark

Market growth

Table 1.5 Growth share matrix quadrants

Quadrant Area

Star These are high-growth business units, products or services with a high percentage of market share. Over time, the market growth will slow down for these products and, if they maintain their relative market share, they will become ‘cash cows’.

Cash cow These are low-growth business units, products or services that have a relatively high market share. They are mature, successful products that can be sustained without large investment. They generate the income required to develop the new products (or revise the problematic products) that will hopefully become ‘stars’ in the portfolio.

Question mark

These are business units, products or services with low market share but operating in high-growth markets. They have potential but may require substantial investment in order to develop their market share, typically at the expense of more powerful competitors. Management has to decide which ‘question marks’ to invest in, and which ones will be allowed to fail.

Dog These are the business units, products or services that have low relative share and are in unattractive, low-growth markets. Dogs may generate enough cash to break even, but they do not have good prospects for growth, and so are rarely, if ever, worth investing in.

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y Where a product has been identified as a ‘question mark’, action to rectify the situation needs to be considered; with careful development it may be possible to move the product into a ‘star’ position. For example, it may be possible to change the approach to marketing the product in order to enhance the market’s perception of it and thus increase sales.

As well as individual products and services, the growth share matrix may be used on market-facing business units where those business units address specific needs in the market and where the products or services that the business units offer are broadly similar. For example, an insurance company might use the growth share matrix to consider its entire offering of direct-to-consumer motor insurance products rather than considering each specific type of policy separately.

One of the issues with the growth share matrix is the level of granularity of the product assessment. There may be some products that do not fit neatly into a particular quadrant but are on the cusp between two. A pragmatic approach should be adopted in these situations, and other factors should be considered. For example, if a product is assessed as having medium market share and low growth this might not be because of an inherent problem with the product. It could instead be a question of timing and market conditions. The action that would improve the situation might just be to manage the product carefully until the market conditions change.

Technique 5: Resource audit

Variants/aliasesAlias: resource analysis.

Description of the techniqueThe resource audit is used to analyse key areas of internal capability in order to identify the resources that enable business operations and business change, and those that may undermine or prevent such efforts. Figure 1.3 shows the areas analysed as part of the resource audit, and the five areas of resource to examine within a resource audit are described in Table 1.6.

Figure 1.3 Resource audit (Source: ©Assist Knowledge Development)

Financial

Reputation Know-how

Human

Physical

The Organisation

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STRATEGIC CONTEXT

Table 1.6 Resource audit


Financial The financial resources available, which may be the organisation’s financial assets but could include the possibility of loans and credit. The organisation’s financial stability, and whether it has access to funds for investment and development, should be considered.

Physical The land, buildings and equipment available for use by the organisation, whether owned or leased.

Human The people employed by the organisation, whether on a permanent or a temporary basis.

Reputation The marketplace perception of the organisation and the amount of goodwill or, alternatively, antipathy generated by this reputation.

Know-how The information held within the organisation, and the way it is stored and used to support the organisation’s work.

Using the resource auditThe resource audit is used to identify areas of strength and weakness within an organisation. Whether or not the organisation has access to resources that enable it to develop and grow should be investigated for each of the following areas:

y Does the organisation have access to financial resources that enable the development of new products or services or is it in financial difficulty, lacking the ability to invest in new products or services?

y Does the organisation have access to land and buildings that provide a basis for the development of new products or services, or is there a poor, underfunded infrastructure?

y Are the people working within the organisation motivated to deliver excellent products and services, or are they demotivated or complacent?

y Does the organisation have a reputation that supports the development of the market for its products and services, or is the brand devalued in a way that could hinder these efforts?

y Is the information held within the organisation used to inform decisions and operations? Is this information used to build a knowledge base that supports the organisation, or is information used poorly, and accessed with difficulty?

Table 1.7 provides a resource audit example for a consultancy company.

The resource audit provides well-defined areas to investigate and can result in a clear assessment of an organisation’s resources. However, each area of investigation may require significant time and effort to conduct thoroughly.

This technique may be used to examine internal resources at many different levels, ranging from an entire organisation to a localised team. The technique can be equally

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Table 1.7 Example of a resource audit

Category Resources

Financial Good financial control and stability. Ratios: profit on sales 30%; liquidity £1.5 current assets to £1 current liabilities; gearing ratio 90%.

Physical Land: no land owned; buildings: no buildings owned – offices leased in Oxford and Bath; equipment: each employee has a company laptop and a personal mobile; supporting equipment: two printers and two projectors are available for use when necessary.

Human Staff of 25, including 18 consultants; two joint managing directors; all staff very motivated and committed to the company; all consultants highly qualified and skilled.

Reputation Good reputation in local area and has won local awards; not known outside customer base and areas of operation.

Know-how Company makes extensive use of ad hoc information systems, but these are not well integrated.

valuable when considering issues and problems right across an organisation or looking at those that exist within a particular department or function. Either way, a resource audit highlights where there are strengths that enable the introduction of business improvement and where there are weaknesses that could undermine the new working practices.

Technique 6: VMOST analysis

Variants/aliasesVariant: MOST (mission, objectives, strategy, tactics).

Description of the techniqueVMOST analysis is used to analyse what an organisation has set out to achieve (the vision, mission and objectives) and how it aims to achieve this (the strategy and tactics). Furthermore, the vision and mission often hint at why the organisation exists in the first place. An organisation’s VMOST provides a statement of its intent and is usually created following an appropriate set of strategic analysis activities. It is also useful during strategic analysis since it can demonstrate strength within the organisation or expose inherent weaknesses.

VMOST stands for:

y Vision: A long-term aspirational future state set out for the organisation.

y Mission: A broad description of what the organisation will do in order to achieve the vision.

y Objectives: A set of goals that are aligned to the mission and vision that can be used to measure the organisation’s progress towards its vision. Objectives should adhere to the SMART criteria (specific, measurable, achievable, relevant and time-based).

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STRATEGIC CONTEXT

y Strategy: A set of long-term strategic themes that provide direction on how the organisation will achieve its objectives, mission and vision.

y Tactics: The detailed, short-term plans, projects and actions that will deliver the strategy. Tactics should be articulated at a sufficient level of detail to be executable. It is not necessary to execute every tactic at once; it is normal to go through a process of prioritisation.

There should be clear alignment between the different VMOST elements. Each tactic should contribute to one or more strategies; each strategy should be directly linked to one or more objectives; all objectives should be aligned with the mission; achieving the mission should have a clear link to achieving the vision. This is summarised in the diagram shown in Figure 1.4.

Figure 1.4 Simplified VMOST diagram (Source: © Blackmetric Business Solutions Ltd, used with permission)

V / M

Objectives

Strategicthem

e

Strategicthem

e

Strategicthem

e

T T T T T T

T T T T T T

High level(broad vision)

WHAT theorganisation willdo and WHY

HOW successwill bemeasured

HOW successwill be achieved

HOW the day-to-day work willbe undertakento achievesuccess

Detailed level(executable

tactics)

Using VMOST analysisAn example partial VMOST analysis for a social enterprise that focuses on providing internet access to excluded groups is shown in Table 1.8.

The VMOST technique can be used to identify strengths and weaknesses of an organisation. Some potential areas for consideration are shown in Table 1.9.

If the answer to any of these questions is ‘no’, then there is a potential weakness in the organisation. For example, the senior management may have defined the VMOST, but

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Table 1.8 Example of a VMOST analysis

VMOST element Description

Vision A society where internet access is available to all.

Mission To enable residents of all backgrounds to learn about and access the internet, irrespective of their ability to pay.

Objectives Open one new community internet hub by the end of the financial year.

Operate a twice-weekly training schedule at each community hub.

Obtain £100,000 of additional funding so that the service can continue to operate.

Strategy Recruit and retain volunteers who are passionate about the cause.

Build ongoing relationships with sponsors who can provide funding and equipment.

Collaborate with other local not-for-profits so that the cost of premises can be shared.

Build partnerships with local colleges who may provide tutors.

Tactics Create a volunteer referral scheme.

Communicate regularly with sponsors through newsletters, one-to-one phone calls and virtual events.

Send regular press releases to the local paper to attract new sponsors.

Form a fortnightly forum with leaders from other non-profits to learn lessons and identify collaboration opportunities.

Approach colleges at the beginning of each academic year to build and maintain relationships.

the staff might not agree with the direction and objectives, and as a result might not be motivated to deliver them.

If the answer to any of these questions is ‘yes’, there are potential strengths in the organisation. For example, the clear definition and planning as encapsulated in the VMOST can help to motivate the staff to work towards an agreed set of objectives.

VMOST analysis can be a tricky technique to use when assessing internal capability. Merely defining and displaying a coherent VMOST does not necessarily result in staff commitment and motivation. The real strength is gained when the VMOST provides a clear focus and direction for the organisation. Where there is no clarity or agreement, the VMOST may mask some fundamental weaknesses.

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STRATEGIC CONTEXT

Table 1.9 Factors to consider when applying VMOST analysis

Area Considerations

Definition Is there a defined VMOST for the organisation? Is it complete and consistent, with no elements missing or out of alignment with each other?

Context Is the VMOST sensible and achievable given the internal resources and external constraints? Techniques such as PESTLE (Technique 1) and the resource audit (Technique 5) may be referred to in order to determine this.

Clarity Does the VMOST set out a clear direction and plan that will enable the organisation’s development and provide a focus for the work carried out?

Coherence Are the elements of the VMOST coherent? Will achieving the tactics contribute towards achieving the strategy? Will achieving the strategy contribute towards the objectives, mission and vision?

Communication Are staff members of the organisation aware of the VMOST, and is it available to guide the work they do?

Commitment Do the staff members work to deliver the VMOST? Do they agree with the content of the VMOST and are they supportive of its intent?

STRATEGY ANALYSIS

Technique 7: Business model canvas


Description of the techniqueThe business model canvas is a technique for documenting an organisation’s existing or desired business model. Gassmann et al. (2020) provide a useful definition of the term business model:

A business model defines which customers are addressed, what is made available for purchase, how products and services are created and how profits are generated.

While this definition sets out what a business model is, it can be challenging to actually visualise or articulate an organisation’s business model. The business model canvas is a tool that does this; it helps to foster a shared understanding of what products and services customers value and how those products and services are delivered. It breaks an organisation’s business model down into nine key components, as shown in Table 1.10.

These nine components are arranged as shown in Figure 1.5.

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Table 1.10 Components of the business model canvas (Source: adapted from Osterwalder and Pigneur 2010)

Component Definition

Customer segments

The key recipients and beneficiaries of the services that the organisation provides.

Value proposition ‘A clear statement of the value that an organisation offers customers through the delivery of a product or service’ (Paul and Cadle 2020).

Channels The ways in which the value proposition reaches a customer segment; for example, online, in person, by phone, by post.

Customer relationships

The nature of the relationships that the organisation fosters and maintains with its customers.

Revenue streams The ways in which the organisation will make money.

Key resources The physical, financial, human, know-how or reputational resources that are required to efficiently operate the business model.

Key activities The activities that utilise the key resources which enable the value proposition to be delivered to the customer segments via the chosen channels.

Key partners Describes where external organisations are providing necessary resources.

Cost structure The key areas where costs are incurred in operating the business model.

Figure 1.5 The business model canvas (Source: adapted from Strategyzer AG (n.d.). This work is licensed under the Creative Commons Attribution-Share Alike 3.0 Unported Licence (CC BY-SA 3.0; http://creativecommons.org/licenses/by-sa/3.0/))

Key partners

Key activities

Valueproposition

Customerrelationships

Customersegments

Cost structure Revenue streams

ChannelsKey resources

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STRATEGIC CONTEXT

Using the business model canvasEach portion of the canvas is populated so that the canvas provides an end-to-end overview of the organisation’s business model. A worked example based on the business model of a fictional 24-hour gym is shown in Figure 1.6, which illustrates that the gym offers low-cost flexible memberships, but accepts that by doing so its membership base will churn, meaning it needs to constantly advertise to attract new members.

Figure 1.6 Example business model canvas (Source: template from Strategyzer AG (n.d.). This work is licensed under the Creative Commons Attribution-Share Alike 3.0 Unported License (CC BY-SA 3.0; http://creativecommons.org/licenses/by-sa/3.0/))

Key partners

Local universitywho promotes

gym to students

Maintain/clean gym

Maintainweb portal Low cost, 24/7

access to exerciseequipment

No-hassle gymmembership thatcan be stopped at

any time

Free access givento personal

trainers who signup their clients

Add-ons such asuse of machine to

calculate bodymass index (BMI)

Advertise

Onlineportal

Selfservice

Standard

Automated

Online(web/

mobile)

Phone (byexception)

Realestate

Gymequipment

andmaintenance

Sales,marketing and

customersupport

Technicalinfrastructure

Operationalstaffing

Recurringmembership fees

Sales of advertisingspace/billboards

in the gym

Add-on fees foradditional services

In personat the gym

(byexception)

Consumers whowant to stay

healthy throughexercise

Consumers withspecific health

goals (for example,losing weight)

Personal trainers(who get free

access)

Firms wanting toadvertise topeople who

exercise

Premises instrategiclocations

Quality gymequipment

Online salesand service

team

Gymmaintenance

teams

Sign up andmanage

membership

Personal trainers(get free access

if they bringclients)

Suppliers ofsmoothies and

health food

Key activities

Key resources

Cost structure Revenue streams

Channels

Value proposition Customerrelationships

Customersegments

There is a logical flow around the canvas. The customer segments engage with a value proposition via one or many channels; this builds a customer relationship and generates a revenue stream. However, in order for the business model to operate, certain key activities need to take place, with the support of key resources and key partners. All of this contributes to the cost structure.

It is good practice to work collaboratively with a range of stakeholders to co-create the business model canvas. This will help to uncover any different business perspectives that may exist, and will also provide the opportunity for the resolution of any conflict. Where different perspectives emerge, techniques such as CATWOE (Technique 119) or principled negotiation and BATNA (Technique 122) may be used.

The business model canvas has several uses. One is to articulate an existing business model, which can be used to communicate to others how the organisation makes its

19


money. However, it is more likely to be used to examine different types of business model innovations. The canvas can also be used as a prototype for the discussion of potential changes to an organisation’s business model, or to determine the knock-on impact of a change in one area.

Technique 8: Cultural web


Description of the techniqueThe role of the BA is such that consideration needs to be given to the less tangible cultural characteristics that differentiate organisations from each other. These characteristics are often overlooked, but the success of any proposed business change is often dependent on understanding these differences and adapting the business analysis approach to them. Guidance in this area focuses on techniques related to the study of organisational and corporate culture. While sometimes these two areas are seen as interchangeable, organisational culture is in fact wider in scope than corporate culture and focuses on the social glue that binds the organisation together; it is sometimes described as a company’s ‘DNA’. Corporate culture, which may be ‘imported’ (perhaps by bringing in external specialists with their own inherent culture), is more holistic, usually historically determined and difficult to change. Corporate culture may be subdivided into two main areas: subjective aspects, based on understanding heroes, myths and rituals, are often unique to a specific organisation; objective aspects, based on elements such as office decor, location and amenities, are rarely company specific.

A study of the various cultural aspects, both corporate and organisational, leads to an understanding of the identity of the organisation, and helps when deciding what needs to go and what needs to stay for the organisation to achieve its strategic goals. There are many empirical studies on this topic, and they offer excellent guidance to support their use in practice.

Johnson et al. (2013) defined the ‘cultural web’, which provides a useful summary of characteristics for BAs to use when considering the cultural aspects of the organisation they are working with. The ideas demonstrated by the cultural web are particularly useful when aligning an organisation’s culture with its strategy in order to provide support in the planning of business change. The cultural web shown in Figure 1.7 identifies seven interrelated elements that together constitute an organisation’s culture.

The elements of the cultural web are described in Table 1.11, using examples based on an airline.

This example uses the cultural web to identify and analyse some aspects of an airline. It reveals a set of values and beliefs that affect the ways of working. While this particular culture creates many advantages for the organisation, it is possible that bringing a new company into the group would cause major culture clashes, and that any such integration would need to focus carefully on resolving these in order to ensure success. Additionally, external factors uncovered in PESTLE (Technique 1) may threaten the ongoing viability of certain norms and practices. For example, the increased expectation of home-working following the COVID-19 pandemic of the early 2020s may have a

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STRATEGIC CONTEXT

Figure 1.7 Johnson and Scholes’s cultural web (Source: Johnson et al. 2013)

Stories

Symbols

Powerstructures

Organisationalstructures

Controlsystems

Rituals androutines

Theparadigm

Table 1.11 Example cultural web analysis

Element Example

The paradigm At the heart of the culture of any organisation are some assumptions about why it exists and what it is for. Ideally this paradigm would be reflected in its vision and mission statement.

In the case of the example airline, the mission is:to be recognised as the highest quality airline

Stories These are past events and personalities that are talked about both inside and outside the organisation.

Stories relate to instances where the airline provided additional gifts to passengers with children.

Rituals and routines

These are the daily actions of individuals that are seen as acceptable behaviour within the organisation and are valued by management.

The airline has spacious offices with a pleasant working environment, an impression that is felt by staff and visitors to the organisation. The airline holds staff competitions and awards free flights as prizes.

(Continued)

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Table 1.11 (Continued)

Element Example

Symbols These are visual representations of the organisation, including in areas such as logos, the office fixtures and fittings and the organisational dress code.

The airline operates an informal dress code for office-based staff and a uniform for cabin staff.

Organisational structures

These reflect the ways the organisation is managed and controlled, and the informal lines of power and influence.

The airline’s structure is based around small, focused teams that work on particular services and products. This creates a sense of a series of small companies operating within a large company.

Control systems

These are the ways in which the organisation is controlled, including governance, financial systems and performance rewards.

Data relating to key performance areas, such as customer satisfaction and flight punctuality, are collected and publicised across the company.

Power structures

This reflects where the power lies regarding decisions, operations and strategic direction.

The airline’s staff members are encouraged to be empowered and innovative, but key decision-making powers are vested in a small group of senior executives.

direct impact on the power structure of organisations that previously relied on strict ‘command and control’ and direct observation of staff by middle managers. This may lead to a necessary change emerging in its culture, but it will likely be a change that some middle managers will resist.

Using the cultural webExamining the individual cultural web elements and their interrelationships helps the BA to explore the cultural gap between where the organisation is now (by studying the culture as it is) and where it needs to be (by considering it as they would like it to be), and to support any proposed changes to processes and systems. The holistic nature of the BA’s role is enhanced by the application of the ideas gained from the cultural web and similar concepts. By taking time to understand these various elements the BA can avoid a situation in which aspects of the existing culture are likely to restrict progress, which, if not addressed, would potentially lead to such impacts as low morale, absenteeism and high employee turnover.

Even a relatively limited (in scope) business analysis project is likely to be impacted by and have an impact on at least some of the seven elements of the cultural web. For example, if a BA recommends changes to the organisational structures (by merging swim-lanes to improve processes), effective negotiation of the power structures will

22

STRATEGIC CONTEXT

be needed in order to ensure ideas are accepted. Also, the changes to the business processes may well affect the control systems.

Technique 9: Business capability model

Variants/aliasesAlias: capability model.

Description of the techniqueA business capability model provides a representation, at a high level of abstraction, of the capabilities possessed by an organisation. These capabilities enable the organisation to deliver products and services, each of which offers value to customers. A capability is defined as ‘a particular ability of the business to achieve an outcome that creates a value for a customer’ (Ulrich and McWhorter 2010).

In effect, a capability is a container for the business processes, people and technology that enables the co-creation of value for the organisation and its customers.

A business capability model shows what the organisation is able to do, not how, who or where this is done. It provides a static view and does not show movement of work, materials or data. In principle, there should be only one business capability model for an organisation (or business domain under study) with each capability rationalised into a unique definition. The model covers the entire scope of the organisation. Where an organisation works with external suppliers and partners to deliver its products or services, the business capability model represents the capabilities that are available across the entire ecosystem.

Organisations that define and maintain a model of their business capabilities are able to leverage the information contained within the model. As a result, they are able to respond to changes in the business environment effectively and rapidly, in contrast to those that do not take this approach. In addition, they are able to assess more accurately the impact and difficulty level of any proposed changes earlier and before too many resources have been expended.

Guidelines when producing a business capability model include:

y Capabilities must always be defined in business terms.

y Capabilities must be at a higher level of abstraction than the actual end-to-end business processes that support them.

y Capabilities should always be named using a noun/noun structure (for example, ‘complaint management’ rather than ‘manage complaint’).

y Capabilities are stable, whereas value streams (Technique 50) demonstrate movement.

y Capabilities must be unique across the entire capability model.

y Capabilities are enabled via value streams.

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A business capability model should be represented as a hierarchical taxonomy, typically showing the following levels of decomposition:

y Strata (level 0): The three strata used to classify the capabilities are:

� Strategic or direction setting capabilities. These capabilities enable the strategic analysis and design for the organisation.

� Core or customer-facing capabilities. These capabilities enable the delivery of the organisation’s products or services.

� Support capabilities. These capabilities provide support to the core capabilities and enable the operation of the organisation.

In addition to the three strata, capabilities are decomposed to the following levels:

y Foundation (level 1): These are overview logical containers for grouping levels 2 and 3 capabilities. Foundation capabilities usually represent a high level of abstraction and are usually represented in two categories:

� Operational capabilities: those that are available within the physical boundary of the business itself.

� Environmental capabilities: the capabilities that are outside the physical boundary of the business but are available through engaging with other organisations and individuals within the business ecosystem.

y Capability groups (level 2): Capability groups are sets of related capabilities. Each capability group must contain at least two capabilities. This is the level where service levels and constraints can be identified and defined. Capability groups are analysed and decomposed to uncover business capabilities or, possibly, nested capability groups.

y Business capabilities (level 3/4): The business capabilities are the lowest level elements within a business capability model and are mapped to value streams, processes and business units. This is often the level where gaps are identified that need to be bridged in order for the organisation to function or offer a product or service. Business capabilities can be identified within a capability group or can be standalone.

Using a business capability modelA business capability model is developed using the following approach:

y Foundation level capabilities are identified within each of the three main strata.

y The foundation level capabilities are expanded as the lower-level capability groups they contain are identified.

y The re-usable standalone business capabilities within the capability groups emerge and are added to the model.

Figure 1.8 shows an example of a partial business capability model for an organisation that offers food delivery services. The diagram includes examples of capabilities shown within the three strata and at each level of decomposition. The decomposition of the capability group ‘HR management’ incorporates a capability group ‘Performance management’. This is an example of a nested capability group.

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STRATEGIC CONTEXT

Figure 1.8 Business capability model showing strata and level 1–3 capabilities (Source: ©Assist Knowledge Development)

Strategic

Core/Customer-

facing

Support

Budget forecasting

Budget determination

Budgeting

Budgetary control

Capital management

Public relationscontrol

Service definition Service delivery

Suppliermanagement

Financial control

Infrastructuremanagement

HR management

Staff recruitment

Performance review

Performancemanagement

Training delivery

Customer service

Account management

Reservation control

Complaint resolution

Business planning

Policy management

Strategy definition

Figure 1.8 shows that the level 1 capability ‘HR management’ may be decomposed into the level 2 capability group ‘performance management’, and the business capability ‘staff recruitment’. The capability group ‘performance management’ is further decomposed into the level 3 capabilities ‘performance review’ and ‘training delivery’.

Irrespective of the level of definition for capabilities, the acronym SUAVE helps to ensure that they are described well and consistently:

y Stable: The capability should represent the essence of the business, which does not change significantly over time.

y Unique: The capability should be distinctive and not duplicated across the organisation. Each capability must occur once in the model; this encourages a standard implementation of the capability across the organisation.

y Abstracted: The capability should not be concerned with the detailed process, people and technology required to conduct the work.

y Value driven: The capability should be focused on delivery of service to the end customer.

y Executive: The capability should be of interest to the organisation’s management.

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The definition and grouping of capabilities offer a basis for effective communication with business stakeholders when discussing their needs or considering proposed change initiatives. It also enables the BA to identify opportunities for capability leverage and re-use, and minimises duplication of effort across the organisation. Each subsequent decomposition of a capability provides a more granular view of what a business is able to do. This helps the BA to appreciate where there are gaps and to identify which changes may not be feasible.

The business capability model provides a blueprint for a common understanding of the organisation. Where linked to other blueprints – for example, the information concepts model (Technique 10) or value streams (Technique 50) – it can provide a rich source of organisational knowledge. When applied effectively, it can be a key enabler of both strategic and tactical decision making.

Technique 10: Information concepts model

Variants/aliasesAlias: concept model.

Description of the techniqueIt is common to find a wide range of terminology and jargon being used within an organisation. There may be cases where different stakeholders use the same term to mean different things entirely. An information concepts model seeks to address this ambiguity by identifying and documenting the key concepts that are of relevance to the organisation, as well as the relationships between them. This enables clarity and precision in communication and is also an effective way for the BA to become acquainted with the terminology of the domain.

There are several conventions used to document an information concepts model. A typical model includes:

y A diagram that provides a visual representation of the concepts and their relationships.

y Textual definitions that specify the preferred term for each concept, along with an explanation of the concept and a list of any synonyms that are used within the business.

It should be noted that an information concepts model is technologically agnostic and does not directly represent data entities or classes stored on a database. It models concepts that are important to the business whether or not there is any intention to store data about them in an information system.

Using an information concepts modelInformation about the domain and business situation will be gained through a range of elicitation and investigation techniques. Interviews and workshops may be used to elicit information and construct the model collaboratively. Legislation, regulation, policies, intranets, forms, industry papers and other documents often provide useful hints that can be elaborated on through further interactions with stakeholders.

When reading a business document or listening to a stakeholder, it is particularly helpful to identify nouns/noun phrases and verbs/verb phrases. Table 1.12 provides some examples from an insurance company.

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STRATEGIC CONTEXT

Table 1.12 Noun and verb phrases

Type Relates to Example

noun concept policy, policyholder, claim

verb relationship covers, claims under, reports

Information concepts will typically be elaborated on with a textural definition, along with any synonyms, as set out in Table 1.13. This helps to disambiguate terms that have different meanings to different stakeholders. For example, in an insurance company:

y Sales team members use the term ‘customer’ to mean someone who is enquiring about a policy.

y Other business actors only consider an individual to be a ‘customer’ if they have actually bought a policy.

Table 1.13 Example textural description of information concepts

Information concept (agreed term)

Definition Business synonyms (other terms used in the business)

Prospect An individual who enquires about purchasing an insurance policy via an external insurance agent

Customer

Policyholder An individual who holds, or has previously held, an insurance policy

Customer

Knowing that ‘customer’ has multiple meanings will prompt the BA to seek clarification when the term is used. Having an agreed set of terms and definitions makes formal written communication (such as writing a requirements document or user stories) much easier as each term is defined once and can be centrally maintained.

The textural description alone is rarely sufficient as it cannot easily display the relationships between concepts. It is also difficult to spot missing concepts, and it may be tricky to identify duplicate or overlapping concepts. For this reason, a diagram is often used. An example partial information concepts model for a fictional insurance company is shown in Figure 1.9.

Figure 1.9 illustrates various concepts shown as rectangles, relationships shown as lines and relationship descriptions added as text. The concepts relate to the noun/noun phrases mentioned earlier, and the relationships to the verb/verb phrases. In this example the diagram shows that a policyholder holds a policy, the policy provides cover against perils. If the policyholder experiences an incident, they can report it and

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Figure 1.9 Example partial information concepts model (Source: ©Assist Knowledge Development)

Advises

Holds

Provides

Covers against

Logged against

ArrangesAgent

Policyholder Policy

Cover

PerilClaimIncident

Reports

If coveredbecomes Made against

if it is valid it will result in a claim being logged. The diagram also shows that an agent provides advice and sells the policy.

Information concepts models can also drive useful conversations about scope. For example, ‘prospect’ is not shown on the diagram. Further enquiries may determine that this is because prospects liaise via insurance agents/brokers so are considered outside the situation being examined. The modeller may then choose to omit them from the diagram for the sake of brevity while retaining the textural description shown in Table 1.13.

Additionally, an information concepts model can uncover information about business rules. Figure 1.9 shows that an ‘incident’ that occurs in the real world may become a ‘claim’. There would likely be a detailed set of rules behind this (one example might be: a claim is only valid if the date of the incident is after the inception and before the date of expiry of the policy). These rules are best expressed elsewhere rather than adding them to the diagram. This diagram does not show whether a specific concept can be associated with multiple instances of another. For example, it does not show if a policyholder can have more than policy, or whether a policy can have more than one

28

STRATEGIC CONTEXT

policyholder. Instead, distinctions such as this would be found on a data model such as a class model (Technique 72).

Technique 11: SWOT analysis

Variants/aliasesVariant: TOWS analysis (threats, opportunities, weaknesses and strengths).

Description of the techniqueSWOT analysis is used to consolidate the results from the external and internal business environment analysis. A SWOT analysis represents the areas shown in Figure 1.10 and described in Table 1.14.

Figure 1.10 SWOT analysis

Strengths- will aid the

development of theorganisation

Weaknesses- will undermine thedevelopment of the

organisation

Opportunities- available to begrasped by the

organisation

Threats- presenting

potential problemsfor the organisation

Table 1.14 SWOT analysis

Area Description

Strengths The internal positive capabilities of the organisation; for example, financial resources, motivated staff or good market reputation.

Weaknesses The internal negative aspects of the organisation that are likely to diminish the chances of success; for example, out-of-date equipment and systems, unskilled staff or poor management information.

Opportunities The external factors that present opportunities for success; for example, social changes that increase demand for the organisation’s services, or the development of technology to provide new service delivery channels.

Threats The external factors that have the potential to harm the organisation; for example, a technological development that could enable new competitors to enter the market, or economic difficulties leading to a reduction in market demand.

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Using SWOT analysisSWOT is used to summarise and consolidate the key issues identified when analysing an organisation and its business environment. It follows the use of techniques such as PESTLE (external, Technique 1) and the resource audit (internal, Technique 5).

Once the SWOT has been developed it is then used as a means of evaluating the organisation’s business situation and identifying potential strategies for the future. A standard approach is:

y Identify the new business improvements made possible by the opportunities defined in the SWOT.

y Identify the business issues that may arise from the threats defined in the SWOT.

y Consider the actions required to grasp the opportunities and address the threats.

y Identify the areas of strength that will enable the organisation to carry out these actions.

y Identify the areas of weakness that could undermine any action taken.

y Develop and evaluate strategic options for delivering success based on the previous steps.

SWOT analysis is often employed in workshops, where techniques such as brainstorming are used to identify the elements in each of the four areas. However, this approach is not rigorous and can be too informal to produce a comprehensive SWOT – there is the risk of missing significant factors, such as a looming threat or a major area of organisational weakness. A better approach is to use formal techniques such as those mentioned in this section to derive the SWOT, which helps to ensure that all relevant areas are considered and the key issues identified. Once the SWOT has been produced, the key issues must be distinguished since there may be a large set of entries, some of which are unlikely to yield more than minor changes. It is the key SWOT issues that should be examined in detail. These should form the basis for the strategy definition.

The implementation of business change is widely regarded as an extremely difficult activity, and success is often limited. Techniques such as the McKinsey 7S (Technique 102) and the POPIT model (Technique 16) provide a firm basis for identifying the aspects to be considered when implementing business change. These techniques may be used separately or in conjunction with each other. They are used to support two aspects of strategy implementation: identifying the areas that need to change and the range of actions to be taken within these areas; cross-checking all of the changes to ensure consistency, completeness and alignment.

PERFORMANCE MEASUREMENT

Technique 12: Balanced scorecard

Variants/aliasesVariant: organisations may employ variants of the balanced scorecard that reflect aspects relevant to the organisation; for example, a financial services provider might monitor the risk perspective in addition to the standard balanced scorecard dimensions.

Alias: balanced business scorecard.

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STRATEGIC CONTEXT

Description of the techniqueThe balanced scorecard (BSC) was developed by Robert S. Kaplan and David P. Norton as a means of defining a framework of performance measures that would support the achievement of the vision for an organisation, and the execution of its business strategy (Kaplan and Norton 1996). Historically, many organisations and external stakeholders, such as shareholders, have focused on their financial performance. However, financial measures have typically related to past performance, and the decline of financially stable organisations can be attributed to a lack of attention to areas of performance that will generate success in the future. The BSC identifies four aspects of performance to consider, as shown in Figure 1.11 and described in Table 1.15.

Figure 1.11 Balanced scorecard (Source: adapted from Kaplan and Norton 1996)

Financial

Customer

Learning andgrowth

Internalbusinessprocess

Vision andstrategy

Table 1.15 Balanced scorecard (Source: adapted from Kaplan and Norton 1996)

Aspect Description

Financial This aspect considers the financial performance of the organisation; for example, the profit generated by sales, the returns generated by the assets invested in the organisation and its liquidity.

Customer This aspect considers the customer perspective regarding the organisation; for example, the level of customer satisfaction and the reputation the organisation has in the marketplace are considered.

Internal business process

This aspect considers the internal processes and procedures that are used to operate the organisation; for example, are the processes focused on reducing costs, to the detriment of customer service? Is the technology used well to support the organisation in delivering its products and services?

Learning and growth (also known as innovation)

This aspect considers the future development of the organisation; for example, the development of new products and services, the level of creative activity in the organisation and the extent to which this is encouraged.

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Using the balanced scorecardThe approach to identifying CSFs and KPIs (Techniques 13 and 14) is usually used in conjunction with the BSC. The mission and objectives of the organisation – from VMOST (Technique 6) – are used as the context in which to define the BSC areas. For example, if the mission is to deliver good value, high quality and up-to-date services to customers, then the four BSC areas could measure performance as follows:

y financial – level of supplier costs;

y customer – prices charged in comparison with competitor prices;

y internal business processes – quality checking processes;

y innovation – introduction of new products.

The BSC helps to ensure that organisations do not focus solely on financial results but consider both their current performance and the factors that will enable continued success. The BSC is used to ensure that a complete view of the organisation’s performance is measured and monitored. It is vital that all four areas are considered, not just one or two; omitting any of the areas is to risk undermining the performance of the organisation and to increase the chance of business problems arising in the future.

Techniques 13 and 14: Critical success factors and key performance indicators


Description of the techniquesCritical success factors (CSFs) and key performance indicators (KPIs) are used to determine measures of organisational performance. CSFs are identified first, since they are the areas of performance that the organisation considers vital to its success. They are typically broad-brush statements such as ‘customer service’ or ‘low costs’. Two types of CSF should be considered:

y Industry-wide CSFs: The areas of effective performance that are necessary for any organisation operating within a particular business domain or market sector. For example, all restaurant chains will need to consider ‘hygiene’ as a CSF – no restaurant that disregards hygiene is likely to operate for very long. These CSFs do not differentiate between organisations, but they allow them to continue operating.

y Organisation-specific CSFs: The areas of performance that enable an organisation to outperform its competition. These are the areas that it focuses upon as key differentiators. For example, a fast-food chain might claim low cost of operation and a consistent customer service as two of the company’s CSFs. This is in contrast to a luxury restaurant that offers bespoke (but high cost) dining to its clients.

KPIs are related to the CSFs and define the specific areas to be monitored in order to determine whether the required level of performance has been achieved. If an organisation has defined ‘excellent customer service’ as a CSF, the KPIs could include the volume of complaints received over a defined time period, and the percentage of customers rating the organisation ‘very good’ or ‘excellent’ in a customer perception

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STRATEGIC CONTEXT

survey. To ensure they are measurable, KPIs should adhere to the SMART criteria: specific, measurable, achievable, relevant and time-based. It is usual practice to assign a performance target against each KPI.

Since KPIs are related to CSFs, they need to be defined for both the industry-wide and the organisation-specific areas.

Using the CSF/KPI techniquesOnce an organisation has defined its VMOST (Technique 6), the performance measures that will provide a detailed means of monitoring progress need to be determined. The CSFs are identified first, and the KPIs and associated performance targets are defined in support of the CSFs.

The VMOST for the organisation should help to identify how it is positioned within the market; this should be underpinned by a set of organisational beliefs and priorities. The beliefs are those that the senior management feels are essential to its successful operation. CATWOE (Technique 119) is helpful when considering the core beliefs of the senior management team. This information helps in identification of the CSFs, which then leads on to defining the KPIs and the corresponding targets. This three-part approach is described in the following example.

If an organisation is positioned as a high-quality provider of services, the CSFs might include ‘excellent customer service’ and ‘high-quality services’. Several KPIs may be defined to monitor the areas of operation that relate to achieving these CSFs. For example, the KPIs would need to monitor aspects such as the percentage of customer complaints and the percentage of repeat purchases. For each of these KPIs, a target and a timeframe would need to be set. Two examples of these are: when asked during the quarterly customer satisfaction survey, fewer than 2 per cent of customers complain about the service received; within 12 months of their initial purchase, more than 60 per cent of customers purchase further services.

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34

INDEX

4As (aim, audience, arrangement, appearance) 319, 342–5

5Ws and an H 195, 316

7S (shared values, strategy, structure, systems, style, staff, skills) framework 30, 279, 295–7

A/B testing 254, 269–71

acceptance criteria 228, 233, 234, 241, 253, 254–9

activity diagrams 130, 132, 147–50, 154, 160, 163, 164, 240, 266, 277

activity sampling 66–70

actor-task analysis 129, 130–1, 159–65

business rules analysis 159–61

task analysis 161–5

Agile approach

acceptance criteria 255, 258

Cynefin 45

environment 228, 229

INVEST 228

Kanban board 288

options identification and shortlisting 96

personas 176

planning poker 243

prioritisation 202, 203

product backlog 229

prototyping 186, 187

requirements planning and management 183

requirements validation 249

retrospective 247

show and tell 252

user stories 240

workshops 194

analysing stakeholders 318–19, 322–33

control, influence, accept 322–3

power/interest grid 323–8

RACI matrix 328–30

stakeholder management plan 330–3

anchor the change 293

Ansoff’s matrix 2, 8, 9–10

associations between classes 212, 216, 217, 265

assumption reversal 90

audiences 344

avoided costs 105

background research 35, 46–8

balanced scorecard 3, 30–2

BAM (business activity modelling) 166, 298, 338–41

barriers to entry 7, 8

BASF (Business Analysis Service Framework) 1, 88, 129, 181, 253, 279, 318

BATNA (Best Alternative to a Negotiated Settlement) 19, 348

BCG (Boston Consulting Group) matrix 10

benefit–cost analysis (BCA) 100

benefits categorisation 88, 89, 107–9

benefits dependency network 88, 89, 121–2, 123, 124, 310, 311, 313

benefits map 121

benefits planning and management 88, 89, 122–5, 280, 312

benefits realisation 122, 124, 280, 310–12

benefits review 123, 124, 280, 310, 311, 312–13

black box testing 271–2

Boone, Mary 43

Boston Box 10

boundary value analysis 254, 272–4, 275, 276

brainstorming 30, 90, 91, 92, 93, 198, 308

break-even analysis 114–15

business activity modelling (BAM) 166, 298, 338–41

activity types 339

business capability model 3, 23–6, 46, 144, 166

business case 1, 46, 88, 101, 102, 103

4As technique 342, 345

benefits 107, 122, 123, 124, 310, 312, 313

business issues 97–8

cost–benefit analysis 101, 102, 103, 104, 107

development 45, 48, 78, 79, 88, 89, 100, 125–8

ethnographic study 51

financial issues 99–100

impact analysis 113

investment appraisal 113

observation 59

requirements document 231

risk analysis 117, 118, 119

sampling 66, 70

stages 88

technical issues 98–9

timeboxing 246

business change 1, 88, 100, 111, 288, 291, 293, 311, 318, 324, 326

anchoring 293

benefits 121, 122, 123, 292

capability modelling 144

34

35

Cynefin 45

deployment 125, 279, 280, 281, 282, 283, 297, 303, 308, 312, 313, 315

embedding 293, 295, 311

feedback grid 313, 314

implementation 30, 41, 281, 294, 328

interviewing 58

Leavitt’s diamond 36, 38

opposition to 292

POPIT model 41

business environment 1, 2, 130

capability model 23

organisation diagram 137

Porter’s five forces analysis 6

prioritisation 201

product backlog 228

STROBE (STRuctured Observation of the Business Environment) 58

SWOT analysis 29, 30

business event analysis 130, 143, 150–4, 162

business model canvas 3, 17–20

example 19

nine components 18

business pressures 6, 8

business process 80, 161, 170, 208, 253, 274, 281

analysis 161

architecture 285

change 39

engineering 169

hierarchy 138, 156–7

improvement 139, 156, 160, 169

internal 31

map 154

modelling 130, 143, 147, 148, 152, 154–9, 166, 167, 168, 198, 277, 298, 339, 340

notation 155, 159

performance measures 158–9

redesign patterns 169

reengineering 169

rules analysis 160

simplification 169–70

task analysis 161, 162, 163

triggers 152, 154

Business Process Change 137

business readiness assessment 279, 280–99

change deployment strategies 280–4

CPPOLDAT 284–7

Kanban board 287–9

Kotter’s change process 289–93

Kurt Lewin’s change model 293–5

McKinsey 7S 295–7

outcome frame 297–9

business rules analysis 131, 159–61, 162

business use case 235

buyers 7, 8, 336, 337

Buzan, Tony 78, 80

capability ‘fit’ 97, 98

cash cow 11

CATWOE (customer, actor, transformation, world view, owner, environment) 19, 33, 63, 294, 303, 319, 323, 331, 333–8, 340, 343, 347

definition of elements 334

example 336

cause-and-effect diagrams 76

change deployment strategies 280–4

Checkland, Peter 80, 334, 337

class modelling 182, 185, 211–17, 226, 265

closed questions 56, 60, 75

communicating and negotiating with stakeholders 319, 342–50

4As 342–5

principled negotiation 345–8

Thomas–Kilmann conflict styles 348–50

competition 6, 7, 8, 32, 138

complexity 45, 124, 133, 159, 206, 220, 228, 229, 263

concept maps 78

conflict 19, 45, 50, 248, 318

BATNA (Best Alternative to a Negotiated Settlement) 19, 348

CATWOE 334, 336, 337

managing 197

outcome frame 298

positions 349

principled negotiation 345, 346, 347, 348

prioritisation 201

prototyping 187

requirements analysis 208

Thomas–Kilmann conflict styles 197, 209, 319, 348–50

value proposition analysis 147

workshops 199, 200

conformant requirements 250

conscious competence model 299–302

consistency 30, 39, 147, 206, 219, 230, 250, 297

constraints analysis 159

context diagram 152, 182, 198, 217–18, 231

contexts 39, 43, 48, 73, 183, 194, 287, 296, 335

contextual inquiry 48

control, influence, accept 319, 322–3

control systems 22, 23

cost–benefit analysis (CBA) 88, 89, 100–7, 112

CPPOLDAT (customer, product, process, organisation, location, data, application, technology) 279, 284–7

assessment 286–7

dimensions 284–6

creative thinking 88, 89–91, 198, 347

Cross, Rob 84, 85

CRUD (create, read, update, delete) matrix 182, 185, 217, 218–20, 250, 268

uses 219–20

CSF (critical success factor) 3, 32–3, 83

cultural 84, 166, 208

contexts 48, 87

‘fit’ 97, 98

themes 63

web 3, 20–3, 63

customer experience analysis 129, 131, 172–80

customer journey map 172–5

empathy map 175–6

personas 176–8

value network analysis 178–80

customer journey map 131, 172–5, 277

Cynefin 34, 43–5, 53

application of 45

contexts 43, 44

daily stand up 183, 242

Daniel, Elizabeth 107, 108, 109

35

36

DCF (discounted cash flow) method 79, 114, 115, 116, 117, 124, 127

deadlines 73, 97, 123, 127, 163, 203, 246, 298

decision tables 240, 253, 259–64, 265, 272, 275

elements 259

examples 260–4

structure 259

decision trees 240, 253, 264–5, 272, 275

Delphi 183, 242, 243

DeMarco, Tom 217

diagrams

activity 130, 132, 147–50, 154, 160, 163, 164, 240, 266, 277

business use case 154, 185, 190, 198, 218, 231, 233, 234–8, 240, 258, 272, 308

context 152, 182, 198, 217–18, 231

cross-functional 154

entity relationship 161, 218, 220, 226, 231

fishbone 35, 76–8, 303, 338

mind maps 35, 57, 78–80, 166, 198, 338

organisation 130, 137–9, 145, 154, 166, 322

rich pictures 35, 64, 80–2, 166, 198, 287, 338

state machine 267, 268

state transition 265

swimlane 154, 287

system use case 234

value network 178, 179, 180

value stream 143, 144, 145

VMOST 15

discovery 88, 89, 91–3

techniques 90, 91, 92, 198, 217, 308, 347

document analysis 182, 183–5

documentation 46, 62, 87, 156, 187, 230, 244, 263, 272, 301, 311, 321

requirements 45, 182–3, 211, 231, 250, 254, 255, 258, 299

documenting the situation 35, 76–87

fishbone diagrams 76–8

mind maps 78–80

RAG assessment 82–4

rich picture 80–2

social network analysis 84–7

‘do nothing’ option 70, 93, 94, 95, 96, 127

double loop learning 279, 302–3

DSDM (Dynamic System Development Method) 186

economic factors 4

eight wastes of Lean 171–2, 287

empathy map 131, 175–6

enterprise analysis 129, 130, 137–47

organisation diagram 137–9

value chain analysis 139–43

value proposition analysis 145–7

value stream analysis 143–5

environmental factors 5

environmental issues

CATWOE 334, 336

ethnographic study 49

fishbone diagrams 77

PESTLE analysis 5

equivalence partitioning 254, 275–6

ERM (entity relationship modelling) 183, 185, 214, 218, 220–7

ethnographic study 48–51

event-response analysis 129, 130, 147–59

activity diagrams 147–50

business event analysis 150–4

business process modelling 154–9

external environment analysis 2, 3–8

PESTLE analysis 3–6

Porter’s five forces analysis 6–8

external events 139, 151, 153

external influences 5

external stakeholders 31, 41, 144, 151, 314, 315, 321

feasibility 48, 321

analysis 89, 95, 96

assessment 88, 110

elements 96

good requirements 251

feedback grid 280, 313–15

financial benefits 113, 114, 116

financial issues 96, 99

financial resources 13, 29, 117

fishbone diagrams 35, 76–8, 303, 338

Fisher, Roger 345, 348

five forces analysis 2, 6–8

focus groups 51–3, 63, 72, 305, 313

force-field analysis 88, 89, 95, 109–11, 293, 294

four-view model 40

functional requirements 41, 187, 207, 208, 228, 232, 233, 234, 255, 257

gap analysis 129, 166–8

business activity modelling 338, 341

CATWOE 337

POPIT 41

process analysis 131

GDPR (General Data Protection Regulation) 5

generalisation 215, 216

general requirements 207, 208, 232

governance 22, 88, 89, 121–8, 316

benefits dependency network 88, 89, 121–2, 123, 124, 310, 311, 313

benefits planning and management 88, 89, 122–5, 280, 312

business case development 48, 88, 89, 100, 125–8

greenfield site 198

growth share matrix 8, 10–12

cash cow 11

‘dog’ 10, 11

issues 12

Harmon, Paul 137

heat map 82

Heisenberg principle 59

herringbone diagrams 76

holistic context 34, 36–45

Cynefin 42–5

Leavitt’s diamond 36–9

POPIT model 40–2

Honey and Mumford’s learning styles 279, 302, 304–5, 308

ice-breaking techniques 198

ideation 88–9, 89–100

creative thinking 89–91

36

37

discovery 91–3

options identification and shortlisting 93–100

identifying stakeholders 318, 319–22

requirements catalogue 233

stakeholder wheel 319–22

impact analysis 88, 89, 111–13, 127

incremental options 95, 96

influence/interest grid 323

information concepts model 3, 26–9

intangible benefits 101, 106, 107, 116, 117

intangible costs 78, 100, 104

intangible exchanges 178, 180

intangible vs. tangible 101, 107

internal capability 2, 8, 12, 16

internal environment analysis 2, 8–17

Ansoff’s matrix 8, 9–10

growth share matrix 8, 10–12

resource audit 8, 12–14

VMOST analysis 8, 10, 14–17

internal events 151, 153

internal stakeholders 144, 151, 320

interviewing 54–8

INVEST 183, 227–8

investigative techniques 34

documenting results 76–87

holistic context 36–45

qualitative 34–5, 46–66, 70

quantitative 34, 35, 66–76

investment appraisal 88, 89, 113–17, 124, 127

IRR (internal rate of return) 114, 116

Ishikawa diagrams 76

Ishikawa, Kaoru 76

Johari window 280, 305–6

quadrant descriptions 306

Kanban board 279, 287–9

Agile approach 288

example 288

five core properties 287

Kano model 202, 205, 206

Kaplan, Robert S 31

Kelly, George 60

key partners 18, 19, 40, 42

know-how 12, 13, 14, 18

Kolb learning cycle 280, 304, 307–8


anchor the change 293

eight stages 290

KPI (key performance indicator) 3, 32–3, 83

Kurt Lewin’s change model 293–5

three stages 294

unfreezing 294

LDM (logical data modelling/models) 220

leading questions 56

learning and growth 31

Leavitt’s diamond 34, 36–9, 53

elements 37–8

legal issues

business rules analysis 159

feasibility analysis 97

PESTLE analysis 4–5, 137

social network analysis 87

Likert scale 74, 75

limited choice questions 56, 74, 75, 76

linking questions 56

logical activity model 338

management style 37, 38, 40, 42, 112, 297

McKinsey 7S 30, 279, 295–7

framework dimensions 296

measurable benefits 109

mind maps 57, 78–80, 166, 198

monitoring activities 338, 339, 340

MoSCoW prioritisation 201–6, 209, 233, 241, 246

MOST (mission, objectives, strategy, tactics) analysis 14

necessity checking 249

negotiation 22, 242, 323, 341

BATNA (Best Alternative to a Negotiated Settlement) 19

Harvard Negotiation Project 345

outcome frame 298

principled 19, 197, 319, 345–8

requirements 182, 207–11

Thomas–Kilmann conflict conflict styles 348, 350

new entrants 7, 8

non-functional requirements 41, 187, 207, 208, 228, 232, 233, 257

Norton, David P 31

NPV (net present value) 79, 114, 115, 116

object class modelling 211

observation 58–60

open questions 55, 56, 75, 209

opportunities 4, 5, 7, 8, 26, 29, 30, 34, 35, 65, 66, 126, 171, 287

option evaluation 88, 89, 100–21

benefits categorisation 88, 89, 107–9

cost–benefit analysis 100–7

force-field analysis 109–11

impact analysis 111–13

investment appraisal 113–17

risk analysis 117–21

options identification and shortlisting 93–100

organisational change

change deployment 281

Kurt Lewin’s model 293–5

stakeholder wheel 322

organisational ‘fit’ 98

organisational structures 22, 293

organisation diagram 130, 137–9, 145, 154, 166, 322

organisation model 137

outcome frame 279, 297–9

example 298–9

NLP (neuro-linguistic programming) 297

owners 138, 145, 146, 147

benefits 124, 125, 311

CATWOE 336

product 1, 34

of risk 118, 125

stakeholder wheel 320

payback analysis 114–15

PCT (personal construct theory) 60

people change


Kolb’s learning cycle 307–8


37

38

outcome frame 397–9

SARAH curve 308–10

people readiness assessment 279–80, 299–310


double loop learning 302–3

Honey and Mumford’s learning styles 304–5

Johari window 305–6

Kolb learning cycle 307–8

SARAH curve 308–10

performance measurement 3, 30–3

balanced scorecard 30–2

CSF (critical success factor) 32–3

KPI (key performance indicator) 32–3

personas 176–8

PESTLE analysis 2, 3–6, 17, 20, 30, 95, 137, 138, 336

planning poker 183, 242, 243

PLUME (productivity, learnability, user satisfaction, memorability, error rates) 258

political factors 4

POPIT model 30, 34, 40–2, 53, 77, 166, 168, 281, 290

Porter, Michael

five forces analysis 2, 6–8

value chain analysis 139, 140, 141

portfolio management 10

post-change review 279, 280, 310–17

benefits realisation 122, 124, 280, 310–12

benefits review 123, 124, 280, 310, 311, 312–13

feedback grid 313–15

project review 315–17

power/interest grid 84, 87, 319, 323–8

category descriptions 324, 325, 326

stakeholder management strategies 327–8

power structure 22

presentation

4As 342, 343, 344, 345

A/B testing 269

aim of 342

appearance 342, 343, 344, 345

business case 128

impact analysis 111

improved 106

RAG assessment 83

software 84, 135

style 210

presentation of business case

‘4As’ technique 342–5

formula 128

mind map 79

storyboards 135

principled negotiation 19, 197, 209, 319, 345–8

prioritisation 15, 182, 192, 200–6, 229, 230, 241, 245

MoSCoW prioritisation 201, 202, 203, 204, 205, 206, 209, 233, 241, 246

requirements 209

probing questions 56, 346

process analysis 129, 131, 161, 166–72

gap analysis 166–8

process redesign patterns 169–72

process investigation 129, 130, 131–6

protocol analysis 131–2

shadowing 133–4

storyboards 135–6

process maps 143, 154, 178

process modelling see business process modelling

process redesign patterns 131, 169–72

product backlog 183, 228–30, 241, 242, 243, 249, 287

product features hierarchy 240

products

acceptance criteria 255

activity diagram 148, 149

Ansoff’s matrix 9

balanced scorecard 31, 32

business activity modelling 339

business model canvas 17

capability model 23, 24

CATWOE 335, 336

CPPOLDAT 285, 286

five forces analysis 6

growth share matrix 10, 11, 12

organisation diagram 137, 139

repertory grid 61, 62

resource audit 13

software 273, 274, 294, 296

stakeholder wheel 320, 321, 322

state machines 265, 266, 267

substitute 7, 8

timeboxing 245, 246

traceability matrix 244

value chain analysis 139, 140

value proposition analysis 145, 146

project review 120, 279, 280, 315–17

protocol analysis 58, 59, 130, 131–2

prototyping 45, 135, 182, 186–9, 229, 308

Prusak, Laurence 85, 86

qualitative investigation 34–5, 46–66, 70

background research 46–8

ethnographic study 48–51

focus groups 51–3

interviewing 54–8

observation 58–60

repertory grid 60–3

storytelling 63–6

quantifiable benefits 109

quantitative investigation 34, 35, 66–76

sampling 66–70

special purpose records 70–2

surveys 72–6

questionnaires 72, 74, 243, 305

questions, main types of 55, 56, 60, 75, 209, 346

RACI (responsible, accountable, consulted, informed) matrix 319, 328–30, 332

RAG assessment 35, 82–4

RASCI (responsible, accountable, supportive, consulted, informed) 328, 329, 330

record sampling 66

recruitment 6, 25, 37, 104, 112, 137, 293, 335, 340

reflexive association 215

regulation 26, 65, 66, 98

repertory grid 35, 60–3

examples 61, 62

four steps 61

38

39

PCT (personal construct theory) 60

products 61, 62

reputation 12, 13, 14, 18, 29, 31, 146, 172, 173, 176, 282

requirements analysis 45, 182, 200–11, 275

MoSCoW prioritisation 203, 246

prioritisation 200–6

product backlog 228–30

requirements categorisation 206–7

requirements negotiation 207–9

user analysis 209–11

requirements catalogue 230–4

requirements categorisation 206–7

requirements definition 181

requirements development 245

requirements documentation and modelling 182–3, 211–41

class modelling 211–17

context diagram 217–18

CRUD matrix 218–20

entity relationship modelling 220–7

INVEST 227–8

product backlog 228–30

requirements catalogue 230–4

use case modelling 234–40

user stories 240–1

requirements elicitation 181, 182, 183–200

document analysis 183–5

prototyping 186–9

scenario analysis 189–92

wireframes 192–4

workshops 194–200

requirements estimation 183, 242–3, 245

requirements negotiation 182, 207–9

requirements planning and management 182, 183, 229, 231, 242–9

daily stand up 242

requirements estimation 242–3

requirements traceability matrix 244–5

retrospective 247–9

timeboxing 245–7

requirements review 249

requirements specification 120, 231

requirements traceability matrix 244–5

requirements validation 182, 183, 249–52

good requirements 250–1

show and tell 251–2

requirements walkthroughs 249

resource audit 2, 8, 12–14, 17, 30

retrospective 183, 247–9

rich picture 35, 64, 80–2, 166, 198, 287, 338

risk analysis 45, 89, 112, 117–21

business case development 88, 127

risk assessment 99, 104, 117–21, 127

risk identification 117, 118

risk response 119

rituals 20, 21

roles

business analyst 20, 22, 45, 65, 181, 185, 208, 252

CATWOE 334, 335

context diagrams 217, 218

social network 85–6

stakeholder 319, 326, 328, 329, 331, 332, 333

user 209, 215, 217, 235, 236, 237, 238

workshops 194, 195

root definition 333, 337, 338

rules analysis 131, 159–61, 162

sampling 35, 59, 66–70, 103, 109, 133, 170

activity 66, 68

analysis 69

SARAH (shock, anger, rejection, acceptance, hope) curve 280, 301, 308–10

stages 309

SCAMPER 90

scenario analysis 45, 135, 154, 182, 189–92, 229, 258, 275, 277

Scrum 183, 186, 203, 242, 252

semantic networks 78

‘sensemaking’ 43

shadowing 58, 59, 130, 132, 133–4

issues 134

stages 133

shortlisting of options

Cynefin 45

force-field analysis 109, 110

PESTLE analysis 6

SWOT analysis 30

show and tell 183, 251–2

Snowden, David 43

social network analysis 35, 84–7

socio-cultural factors 4

sociometry 84

Soft Systems Methodology 80, 319, 333, 337

special purpose records 67, 70–2

SSADM (Structured Systems Analysis and Design Method) 217

staff costs 102, 103, 105, 117

stakeholder

analysis 318, 318, 326, 330, 331, 334

identification 318, 320, 322

management plan 319, 330–3

map 330

wheel 151, 318, 319–22

stakeholder perspectives 319, 333–41

business activity modelling 338–41

CATWOE 333–8

star 11, 12

state machines 220, 253, 265–9, 273, 275

STEEPLE (socio-cultural, technological, environmental (or ecological), economic, political, legal, ethical) 3

storyboards 130, 135–6, 186, 187

storytelling 35, 63–6

strategic ‘fit’ 97

strategy analysis 2–3, 17–30, 297

business capability model 23–6

business model canvas 17–20

cultural web 20–3

information concepts model 26–9

SWOT analysis 5, 8, 29–30

strategy definition 2, 10, 25, 30

strategy implementation 2, 30

strengths 8, 10, 14, 15, 16, 29, 306

STROBE (Structured Observation of the Business Environment) 58, 59

39

40

SUAVE (stable, Unique, Abstracted, Value drive, Executive) 25

substitute products 7, 8, 90

surveys 35, 60, 69, 72–6, 83, 86, 107, 313, 316

Likert scale 75

question types 75

sections 73, 74

success factors 73

swimlanes 98, 154, 155, 157, 158, 160, 168, 287

SWOT (strengths, weaknesses, opportunities, threats) analysis 3, 5, 8, 10, 29–30, 95

symbols 21, 22, 80, 82, 147, 155, 217, 340

system event analysis 150

systemic analysis approach 129

tangible benefits 101, 104, 107

tangible costs 101, 102, 104

tangible vs. intangible 101, 107

task analysis 131, 148, 157, 161–5

technical requirements 207, 208, 232

technological factors 4

technology 23, 52, 76, 94, 102, 169, 177, 196, 301

balanced scorecard 31

CPPOLDAT 286, 287

gap analysis 168

interviewing 54

Leavitt’s diamond 36, 37, 38, 39

organisation diagram 138

PESTLE analysis 4

POPIT 40, 41, 42, 77

Porter’s value chain 141

possibilities and limitations 171

SWOT analysis 29

user analysis 210

test cases/test scripts 254, 269, 276–8

test condition analysis 253, 254–69

acceptance criteria 254–9

decision table 259–64

decision tree 253, 264–5

state machines 265–9

test design 253, 254, 269–78

A/B testing 269–71

black box testing 271–2

boundary value analysis 272–4

equivalence partitioning 275–6

test cases/test scripts 276–8

theory of learning styles, Honey and Mumford 304–5

Thomas–Kilmann conflict styles 197, 209, 319, 348–50

threats 5, 6, 7, 8, 29, 30

time-based events 151, 153

timeboxing 183, 245–7

MoSCoW prioritisation 204, 246

principles 247

prioritisation 246

timesheets 70, 71, 235, 236

TIMWOODS – the eight wastes of Lean 171–2, 287

TOWS (threats, opportunities, weaknesses and strengths) analysis 29

traceability 156, 251

matrix 183, 244–5

of requirements 207, 244, 245

transformation

business activity modelling 338, 340

CATWOE 333, 334, 335, 336, 337

conscious competence model 302

deployment strategies 281

transformational change 254, 283

UML (Unified Modeling Language) 149, 154, 155, 156, 159, 211, 215, 220, 266, 268

use case 189, 208, 217, 218, 219, 220, 237, 244, 268, 288, 329

descriptions 148, 192, 207, 231, 235, 237, 238, 239, 240, 244, 258

diagrams 154, 198, 231, 233, 235, 236, 237, 238, 258, 272, 308

modelling 168, 183, 207, 234–40

user analysis 182, 209–11, 229

user classification document 210

user stories 27, 183, 228, 229, 240–1, 255, 288, 329, 330

value

chain analysis 130, 139–43

network analysis 113, 131, 178–80

proposition analysis 130, 145–7

stream analysis 143–5

streams 23, 24, 26, 135, 143, 144, 145, 285

value-add analysis 169, 170

VMOST (vision, mission, objectives, strategy, tactics) analysis 2, 8, 10, 14–17, 32, 33, 94, 160, 283

VOCATE (viewpoint, owner, customer, actor, transformation, and environment) 333

Ward, John 107, 108, 109

Weltanschauung (world view) 334, 335

wireframes 192–4

working practices 14, 112, 281, 282, 283, 285, 293–6, 303, 309, 311, 312, 327

work measurement 66

workshops 26, 30, 49, 51, 58, 194–200

business process model 156

context diagrams 217

creative thinking techniques 198

discovery and 91

feedback grid 315

fishbone diagrams 77

ice-breaking techniques 198

issues 60, 67, 199, 200

learning and 305, 308

mind maps 78, 80

planning 195, 196

requirements and 181, 182, 208, 209

risk analysis and 118, 120

roles 195

successful 197

techniques 198

venue 195, 196, 200

WSJF (weighted shortest job first) 202, 203, 206, 241

40

9781780175690 Business Analysis Techniques

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