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© International Institute of Business
Analysis™
© International Institute of Business Analysis
2
Vision and Mission
Vision
Mission
The world's leading association for
Business Analysis professionals
Develop and maintain standards for
the practice of business analysis and
for the certification of its practitioners
IIBA® is an international not-for-profit
professional association for business
analysis professionals.
© International Institute of Business Analysis
3
®
IIBA

Goals
Strategic Goals

 Create and develop
awareness and recognition
of the value and
contribution of the role of
the Business Analysis
Professional
 Define the Business
Analysis Body of
Knowledge® (BABOK®)
 Publicly recognize qualified
practitioners through an
internationally
acknowledged certification
program
 Provide a forum for
knowledge sharing
Operational Goals
 Ensure the long term
viability of the organization
 Enable sustainable growth
to support the
establishment of the IIBA®
as a worldwide organization
 Ensure financial viability to
support the implementation
and sustainment of the
IIBA® operational and
strategic priorities
 Consistently demonstrate
value of the organization to
IIBA ® constituents
© International Institute of Business Analysis
The Strategic Business Analyst
Using
Strategy to
Guide
Project
Decisions
© International Institute of Business Analysis
5
Introduction

Kent J McDonald
 Program Manager
 BA background
 Experience in many industries
 Author, Stand Back and Deliver
© International Institute of Business Analysis
6
Introduction

Todd Little
 Sr. Development Manager
Landmark Graphics
 Petroleum Engineer, Developer,
Product Manager, Program
Manager, etc.
 Author, Stand Back and Deliver
© International Institute of Business Analysis
7
Introduction: The Strategic BA

Description:
 Introduce the Purpose Alignment
Model.

Desired Outcomes:
 Make organizational strategy
accessible
 Use strategy to guide decisions
 Improve business value models
© International Institute of Business Analysis
8
Introduction: Agenda
 Welcome and Introduction
 About the IIBA®
 The BA’s Role
 The Purpose Alignment Model
 Implementing the PAM
 Some Examples
© International Institute of Business Analysis
9
All I Want From Life



Everyone makes
decisions that are
aligned with strategy.
Everyone makes
decisions that properly
use resources.
We use these
decisions to win in the
marketplace.
© International Institute of Business Analysis
10
Whither Strategy?
Strategy has different meanings
to different People


Michael Porter’s definition:
 Strategy = Sustainable Competitive
Advantage
© International Institute of Business Analysis
11
The BA’s Role
Business Analysis Planning
Enterprise
Analysis
Elicitation
Solution
Requirements Assessment
Analysis
And
Validation
Requirements Management and Communication
The Fundamentals
© International Institute of Business Analysis
12
How Can This Be Strategic?





Most companies cannot articulate their
strategy.
Therefore, how can a BA use strategy to
improve decision making?
How best to utilize resources is subjective.
Sadly, BA’s are toast.
But wait . . .
© International Institute of Business Analysis
13
What if There Were...
A simple to understand,
Easily communicated,
Immediately implementable,
Way to articulate and use
strategy to improve decision
making?




© International Institute of Business Analysis
14
There Just Might Be...
The Purpose Alignment Model (PAM).
This model views business processes,
business rules, and, therefore,
requirements in two dimensions:


 The extent to which they differentiate us
in the marketplace.
 The extent to which they are mission
critical.
© International Institute of Business Analysis
15
The Purpose Alignment Model
© International Institute of Business Analysis
16
In Practice
DO WE TAKE
THIS ON?
MINIMIZE /
ELIMINATE
INNOVATE,
CREATE
ACHIEVE AND
MAINTAIN
PARITY,
MIMIC,
SIMPLIFY
© International Institute of Business Analysis
Applicable at all Levels
Corporate
Strategy

Product
Strategy

© International Institute of Business Analysis
18
A View of Strategy - Apple
NEW PRODUCT
DESIGN
USER EXPERIENCE
CONTENT
DISTRIBUTION
ATT
PERIPHERALS
MS OFFICE
INTEL HARDWARE
OTHER
SOFTWARE
© International Institute of Business Analysis
19
A Product Example
ERP project to replace legacy system.
Legacy sequence of data entry:
Name, Telephone, Address
ERP sequence of data entry:
Name, Address, Telephone
Business requirement was to
customize ERP sequence to match
legacy sequence




© International Institute of Business Analysis
20
Using Purpose
Is data
entry
sequence
here?
or here?
or even?
© International Institute of Business Analysis
21
Project Example (Real Life)
ANYTHING
HERE?
WHAT GOES
HERE?
ANYTHING
HERE?
MOST ARE
USUALLY
HERE
Where do the planned features
reside on the PAM?
© International Institute of Business Analysis
22
Graphically - Before
NOT MUCH
HERE - NIH
PROJECT TRACKING
DOCUMENT MGMT
DOCUMENT EDIT
DOCUMENT LIBRARY
SEARCH
EDGAR INTEGRATION
OF COURSE OUR
IDEAS ARE
IMPORTANT
© International Institute of Business Analysis
NOT MUCH
HERE
EITHER
23
Graphically - After
PORTAL
DOCUMENT EDIT
PROJECT TRACKING
DOCUMENT MGMT
DOCUMENT LIBRARY
SEARCH
EDGAR INTEGRATION
© International Institute of Business Analysis
24
Project Example (Real Life)
ANYTHING
HERE?
WHAT GOES
HERE?
ANYTHING
HERE?
MOST ARE
USUALLY
HERE
Result: Better product in half the
time and 40% cost reduction.
© International Institute of Business Analysis
25
The Key to Using Purpose
What simple decision filters can we
use to identify what is “Differentiating”?
These decision filters should link to
strategy (in fact, are a good way to
define and articulate strategy).
These decision filters are powerful
tools in the hands of a BA.



© International Institute of Business Analysis
26
Linking BA Role and Purpose

Analyze the enterprise
articulate strategy

Elicit meaningful requirements
self-filtering

Analyze requirements
differentiating / parity?
© International Institute of Business Analysis
27
Linking BA Role and Purpose

Assess and validate solutions
What makes us best at differentiating?
How can we simplify and streamline parity?
Manage and communicate
requirements

Simple question – differentiating or parity?

Analyze business plans
Gaps provide project roadmaps
© International Institute of Business Analysis
28
Example: Custom Pricing Engine
Current business rules require
multi-dimensional pricing.
Imagine 6 dimensional

To get to price, find
the right
combination:
© International Institute of Business Analysis
29
Pricing Engine



Business rules: pricing as “Differentiating”.
Decision filters identified products (not
pricing) as differentiating.
Pricing is “Parity”.
 Uniqueness is wasted.
 How to simplify and streamline?

Solution:
 Standard product pricing with standard discounts
based on past year’s dollar volume and promotions.
 No customization.
© International Institute of Business Analysis
30
Example – Split Payments



eCommerce and catalog order
management system supported split
payments?
Split what? Pay with a combination of
credit cards (as many as you want).
Required a significant customization. Are
split payments differentiating or parity?
© International Institute of Business Analysis
31
Split Payments


Differentiating includes product
selection and customer
service.
Not so fast, if differentiating,
Let’s advertise!
Treat exceptions like
exceptions.
Inelegantly handled with
standard functionality.

© International Institute of Business Analysis
32
Fine, How Do I Start?
Make better decisions
Distill to simple questions
Define the decision criteria
Present the model
Example Questions:
Will this lower lifetime cost?
Will this lock up long contracts?
© International Institute of Business Analysis
Driving to Better Decisions
© International Institute of Business Analysis
34
Lessons Learned
Emphasize (all the time) the mission
critical nature of parity.
Purpose is not priority.
What is both differentiating and parity
changes over time.
The more distributed the decision
filters the better the results.
Purpose shifts the burden to behavior
change.





© International Institute of Business Analysis
35
One Last Example - Payroll
BP
LG
One Payroll
CP
PAM: Payroll = Parity (15 minutes)
Net result, one system, one set of rules,
standard codes and process.
© International Institute of Business Analysis
36
Did I Get What I Want?

Everyone makes decisions that are aligned
with strategy
 the decision filters.

Everyone makes decisions that properly
use resources
 designing around purpose improves resource use.

We use these decisions to win in the
marketplace
 by making the differentiating truly differentiating.
© International Institute of Business Analysis
37
www.theiiba.org | blog.theiiba.org | info@theiiba.org
Todd Little


www.toddlittleweb.com
tlittle@lgc.com
Kent McDonald
www.knowledgebridgepartners.com
kent@kentmcdonald.com
© International Institute of Business Analysis
38
IIBA Community Network
The Community Network allows BA Professionals to easily share
their ideas and experiences with others around the world.
Features include:





Personal Member Pages
Groups
Event Calendar
Forums
Library
Visit the Community Network today!
http://community.theiiba.org
Discuss this webinar
http://bit.ly/IIBAOct09
© International Institute of Business Analysis
Next Webinar

An Introduction to Process Modeling
 When: Tues. Nov. 24 at 8pm ET
 Who: Kevin Brennan, VP of P.D., IIBA
 Discussion points:
 How to develop a model
 How to identify and incorporate sub processes into your
model
 How to model decisions or alternate paths through a
process flow.

Register now at www.theiiba.org
© International Institute of Business Analysis