The process of business analysis often starts with a needs assessment, which involves identifying a problem or an opportunity within an organization. This initial stage sets the foundation for the subsequent steps and ultimately leads to the development of a business case, which leads to the development of the project charter and the initiation of a project.
Refer to Project Management Business Document for more details on these documents.
Here’s how the process typically unfolds:
Identify Problem or Opportunity: The first step is to recognize a problem that needs to be addressed or an opportunity that could potentially benefit the organization. This identification can come from various sources, such as stakeholder feedback, market analysis, internal process reviews, or strategic planning activities. Business analysts work closely with stakeholders to understand the context, gather relevant information, and define the problem or opportunity statement.
Assess Current State: Once the problem or opportunity has been identified, business analysts conduct a thorough assessment of the current state. This involves analyzing existing processes, systems, data, and performance metrics to gain a comprehensive understanding of the organization’s current capabilities, constraints, and challenges. Techniques such as process mapping, data analysis, and stakeholder interviews are commonly employed during this stage.
Determine Future State: Based on the assessment of the current state and the identified problem or opportunity, business analysts collaborate with stakeholders to define the desired future state. This involves envisioning the processes, systems, or organizational capabilities that would address the problem or capitalize on the opportunity. Business analysts facilitate discussions, workshops, and brainstorming sessions to capture stakeholder requirements, expectations, and desired outcomes.
Determine Viable Options and Provide Recommendation: With a clear understanding of the current state and the desired future state, business analysts explore and evaluate various options or solutions to bridge the gap. This may involve researching industry best practices, benchmarking against competitors, or leveraging subject matter expertise. Business analysts analyze the feasibility, risks, costs, and benefits of each option and provide a recommendation for the most viable solution(s) that align with the organization’s goals and constraints.
Facilitate Product Roadmap Development: If the recommended solution involves the development or enhancement of a product or service, business analysts may collaborate with product managers or stakeholders to develop a product roadmap. This roadmap outlines the features, capabilities, and releases planned for the product, aligning with the identified requirements and organizational priorities.
Assemble Business Case: Once the viable options and recommendations have been identified, business analysts compile a comprehensive business case. The business case typically includes an executive summary, problem or opportunity statement, current state assessment, future state description, proposed solution(s), cost-benefit analysis, risk assessment, and implementation plan. The business case serves as a critical document for decision-makers to evaluate the proposed initiative and secure necessary approvals and resources.
Develop Project Charter: If the business case is approved, it serves as the foundation for the development of a project charter. The project charter formally authorizes the project and defines its scope, objectives, stakeholders, and high-level requirements. The project manager, often in collaboration with the business analyst, develops the project charter based on the information and recommendations provided in the business case.
The project charter marks the official initiation of the project and sets the stage for detailed project planning. At this point, the project manager takes the lead in executing the project, while the business analyst continues to play a crucial role in requirements management, stakeholder communication, and ensuring that the project deliverables align with the original business needs and objectives outlined in the business case.
Throughout this process, business analysts act as facilitators and translators, bridging the gap between the business and the solution delivery teams. They gather and analyze requirements, ensure stakeholder alignment, evaluate options, and provide recommendations that drive business value. The business case, which encapsulates the analysis and recommendations from the business analysis process, serves as the foundation for project initiation and execution, enabling organizations to tackle problems or seize opportunities effectively.