Business Analysis: Choosing the Right Project

Why is business analysis crucial before starting any project?

Without data, you're just another person with an opinion. — W. Edwards Deming

What Is It:

Business analysis is the process of identifying, analyzing, and documenting the needs, opportunities, and risks before initiating any project. It provides clarity on the project's scope, aligns stakeholders, and ensures that the project aligns with the organization’s goals. Without thorough business analysis, projects will have risk of falling short of expectations, running over budget, or failing to deliver value.

Why It Matters:

Business analysis is essential to ensure the success of any project and to help organizations focus on the right initiatives.

1. Projects with clear requirements are 2.5 times more likely to succeed (International Institute of Business Analysis, IIBA).
2. Poor upfront analysis causes 37% of projects to fail due to unclear requirements (Project Management Institute, PMI).
3. Evaluating opportunities beforehand ensures the organization invests resources into the right projects, avoiding wasted time and budget (PMI).

Business analysis improves decision-making and lays a strong foundation for project success.

Business analysis involves a systematic approach to identify improvements and evaluate opportunities for the project.

Here’s how the process works:

1. Define the Scope: Business Analysts collaborate with stakeholders to define the project’s objectives and scope, ensuring all parties are aligned.
2. Identify Areas for Improvement: Analysts assess existing processes, systems, or products to pinpoint inefficiencies, bottlenecks, or gaps that need attention.
3. Evaluate Opportunities: Potential opportunities are analyzed and prioritized to ensure the project brings maximum value. This step helps focus on the "right project".
4. Document Requirements: All requirements, both functional and non-functional, are documented in detail to ensure clarity.
5. Risk and Constraints Analysis: Potential risks and constraints are identified early, allowing the team to mitigate them before they become critical issues.

The Global Standards:

1. IIBA: The International Institute of Business Analysis publishes the BABOK Guide, a globally recognized standard for business analysis practices.
2. PMI: The Project Management Institute offers the PMI-PBA certification, focusing on the role of business analysis in driving project success.
3. ISO/IEC 19510: Provides international guidelines for business process modeling, closely aligned with business analysis best practices.

As a business, the following actions will lead to identifying and evaluating opportunities for any new project.

1. Define Project Scope: Ensure the project’s goals and scope are clearly defined and aligned with the organization’s strategic objectives.
2. Identify Key Areas for Improvement: Evaluate current processes, systems, or products to find inefficiencies or gaps.
3. Evaluate Opportunities: Conduct thorough opportunity assessments to prioritize the initiatives that bring the highest value.
4. Engage Stakeholders: Ensure all stakeholders are involved from the beginning to provide input and maintain alignment.
5. Document Requirements: Clearly document all functional and non-functional requirements to avoid miscommunication and ensure project clarity.

The Bottom Line:

Thorough business analysis ensures organizations focus on the right projects, identify areas for improvement, and mitigate risks, leading to successful project outcomes.

The Question:

Is your organization using business analysis effectively to ensure you're choosing the right projects and maximizing value?

What to Do Next:

Want to ensure your next project is set up for success?

Connect with me for expert business analysis and opportunity evaluation, ensuring you focus on the projects that deliver the most value.

The Job Interview Question:

Can you walk us through a time when unclear project requirements led to challenges? How did you overcome them as a business analyst?

This question is common in business analyst and project management interviews, testing both problem-solving abilities and communication skills. Interviewers want to see how you handle ambiguity and misalignment.

What’s your answer?

Please share your answer in the comments.

The Parting Thought:

My boss told me to start every project with a business analysis, so I analyzed my paycheck first.

Sometimes we start analyzing the wrong things!

The Upcoming Events:

Upcoming events from leading organizations in business analysis and project management:

• PMI India National Conference 2024?(Mumbai, India) - December 7-8, 2024
• IIBA - Business Analysis Capability 2025?(Phoenix, AZ) - June 9-12, 2025
• BCS Business Analysis Conference Europe 2024?(London, UK) - November 18-20, 2024

Copyrights, Acknowledgement & References:

• IIBA? (Canada): BABOK? Guide is a registered trademark of IIBA.
• PMI? (USA): PMI-PBA? is a registered trademark of PMI.
• ISO? (Switzerland): ISO/IEC 19510 is a registered trademark of ISO.

Following #arience

Arience Limited (UK)