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A Guide to Agile Business Analysis: Doing it the Agile Way

The business environment is anything but stable, and tough times demand tough measures.

To leverage the uncertain business environment, forward-thinking businesses have adopted different frameworks to deliver value and stay ahead of the curve.

This article looks at the process of business value delivery using the Business Analysis framework, the agile mindset of value delivery, and marriage to birth Agile Business Analysis with the goal of increased value delivery and change responsiveness.

An Overview of Business Analysis

Business Analysis is everything but an evolving field. However, very recently, there has been an increasing awareness of the Business Analysis field.

Business Analysis’ application to organizations dates back to the 18th century, with the advent of the first programmable computers.

This invention led to the awareness of the value of technology in business and the need for a future infusion of IT in businesses.

With this new reality, however, there was a need for a mediator between business teams with their business requirements and the technical team of developers. Thus arose the need for Business Analysis.

While Business Analysis was initially believed to be only focused on software development, with the evolution of business operations, and the newly identified value, the focus of Business Analysis has expanded, and its practice standardized.

Business analysis has been defined by the Business Analysis Body of Knowledge (BABOK) as the practice of identifying business needs and providing solutions of value to stakeholders within context.

In this holistic definition of Business Analysis lies a central theme which is value delivery.

Overview of Business Analysis

Importance of Business Analysis for Business Growth

Business Analysis is a critical aspect of any organization as it helps to determine the viability of a new business idea, identify opportunities for improvement and growth, and provide a roadmap for success

It provides a structured framework for change introduction and management, identifying and defining solutions and/or projects (including software projects) that would maximize stakeholder value delivery.

Business Analysts work across all levels of an organization through the value creation chain and may be involved in everything.

This spans defining strategy, creating the enterprise architecture, taking a leadership role by defining the goals and requirements for programs and projects, supporting continuous improvement in its technology and processes, and deploying enterprise readiness initiatives to support required change.

For any business, the value of Business Analysis is in the realization of benefits, avoidance of cost, identification of new opportunities, understanding of required capabilities, and modeling the organization.

Through the effective use of Business Analysis, we can ensure an organization realizes these benefits, ultimately improving the way they do business and retaining market competitive advantage.

Traditional Approach to Business Analysis

Traditional Approach to Business Analysis

The traditional Business Analysis model is a systematic approach used to analyze and understand the functioning of a business, its processes, and its performance.

It’s based on a set of tasks across 6 basic knowledge areas:

  • Planning and monitoring
  • Elicitation and collaboration
  • Requirement Lifecycle Management
  • Strategy analysis
  • Requirement analysis and design definition
  • Solution evaluation across the pre-project, project, and post-project cycle.

This model typically includes the following steps:

  • Define the problem: The first step is to identify the problem or opportunity that needs to be addressed.
  • Gather data: Collect relevant data from internal and external sources (stakeholder elicitation) to understand the current state of the business, or elicit requirements for the change initiative.
  • Analyze data: Analyze the data collected to identify patterns, trends, and relationships; and to validate and verify elicitation results with industry trends and already existing information.
  • Develop solution alternatives: Develop a list of potential solutions to address the problem or opportunity. This involves an analysis of all strategies that would help transition the business to the proposed future state, including readiness assessments to accommodate change.
  • Evaluate alternatives: Evaluate each solution alternative to determine its feasibility and potential impact on the business.
  • Choose a solution: Choose the best solution based on the results of the evaluation.
  • Implement solution: Implement the chosen solution, including necessary changes to processes, systems, and resources.
  • Monitor and evaluate: This involves measuring solution performance in line with expected value delivery, assessing solution and enterprise limitations, and recommending actions to increase solution value.

This traditional business analysis model is still widely used today, but it’s important to note that it may be modified or expanded based on the specific needs of the business and the problem or opportunity being addressed.

Limitations of the Traditional Business Analysis Model

As elegant as the traditional Business Analysis model seems, it has some major limitations which include:

1. Simplistic View

Traditional Business Analysis models often take a simplified view of the business and its operations, and may not accurately reflect the complexity of the real-world environment.

2. Assumption-based

Many traditional models are based on assumptions that may not hold true in all situations, and as a result, they may provide inaccurate results.

3. Limited Scope

Traditional models may not take into account all relevant factors, and may only focus on a limited number of variables like financial performance or business position, which can lead to an incomplete understanding of the business.

4. Reliance on Historical Data

Many traditional models rely heavily on historical data, which may not be relevant or applicable to the current business environment or provide a good indication of future performance.

5. Lack of Integration

Traditional models may not be designed to integrate with each other, making it difficult to analyze a business from multiple perspectives and gain a comprehensive understanding of its strengths and weaknesses.

6. Time-consuming

Conducting a thorough analysis using traditional models can be time-consuming and resource-intensive, with cumbersome documentation of requirements.

7. Lack of Adaptability

Traditional models may not be flexible enough to accommodate new and evolving business models and conditions, and may not be effective in rapidly changing environments due to a rigid change control and governance approach.

The above limitations give rise to the need for an infusion of an agile flavor in the Business Analysis endeavor via a transition from traditional Business Analysis to Agile Business Analysis.

Agile Business Analysis

Agile Business Analysis: The Intervention

Agile is a term that has been frequently mentioned in the business world in recent years. Its popularity has been growing rapidly, and it has become an essential aspect of project management.

The Agile methodology was originally developed for software development, but its applications have spread across different fields and industries.

It has become an essential tool for business analysts as it helps to streamline the processes involved in business analysis, resulting in increased efficiency and effectiveness.

The Agile methodology is based on four key values. Individuals and interactions over processes and tools, working software over comprehensive documentation, customer collaboration over contract negotiation, and responding to change over following a plan.

These values are meant to emphasize the importance of people, collaboration, and adaptability in the project management process.

Agile Business Analysis Phases

Agile Business Analysis Phases

Agile is a process-driven methodology, and it involves several key stages. These stages include:

1. Requirements Gathering

The first stage in the Agile process is requirements gathering. The Business Analyst is responsible for working with the stakeholders to determine their needs and requirements.

This stage is critical as it sets the foundation for the rest of the project.

2. Planning and Prioritization

Once the requirements have been gathered, the Business Analyst is responsible for planning and prioritizing the project.

This involves breaking the project down into smaller, manageable parts, and determining which parts are the most important.

3. Development and Testing

The next stage in the Agile process is development and testing. The Business Analyst is responsible for working with the development team to ensure that the product is fit for the use intended.

The Benefits of Agile Business Analysis

The Benefits of Agile Business Analysis

Agile has numerous benefits for Business Analysts, and it can help to streamline Business Analysis processes in several ways. Some of the key benefits include:

1. Increased Flexibility

One of the primary benefits of Agile is increased flexibility.

In traditional project management methodologies, the Business Analyst is responsible for defining the requirements for a project.

Once those requirements are set, they can’t be changed, or are only changed at specific milestones causing delays and added costs.

However, with Agile the Business Analyst is encouraged to work closely with the development team and stakeholders and to be open to changes in requirements as the project progresses.

This level of collaboration and adaptability is essential in ensuring that the final product meets the needs of the stakeholders.

The Agile methodology encourages frequent re-evaluation and refinement of requirements as the project progresses.

This allows organizations to quickly respond to changing market conditions and customer needs, making it easier to deliver solutions that meet the needs of stakeholders.

2. Improved Collaboration and Communication

Agile also emphasizes the importance of communication, and it encourages frequent and direct communication between the business analyst, the development team, and the stakeholders.

This open line of communication ensures that everyone is on the same page, and it helps to reduce the risk of misunderstandings and miscommunication.

In traditional business analysis, requirements are often gathered in isolation, leading to a lack of understanding of the stakeholders’ perspectives and goals.

In the Agile approach, business analysts work closely and sometimes daily as in extreme programming with stakeholders to gather requirements, ensuring that everyone has a clear understanding of what’s needed and why.

This collaborative approach leads to more effective communication and helps to avoid misunderstandings and misalignments.

3. Faster Delivery

Agile is designed to allow for faster delivery of software, and this same principle can be applied to Business Analysis.

By breaking down the project into smaller, manageable parts, the Business Analyst can work more efficiently and effectively, delivering results faster.

Using Agile enables organizations to quickly validate and iterate on their ideas, reducing the time it takes to deliver a working solution.

This can be particularly beneficial for organizations looking to enter new markets or launch new products, as it allows them to get to market faster and respond to changes in market conditions more quickly.

4. Improved Quality

Agile also emphasizes the importance of delivering high-quality results, and it encourages the Business Analyst to work closely with the development team to ensure that the final product meets the needs of the stakeholders.

This focus on quality and continuous improvement helps to ensure that the final product is of the highest standard, and it helps to reduce the risk of defects and errors.

4. Improved Transparency and Accountability

The Agile framework also promotes transparency and accountability.

This is achieved through regular status reports and by making sure that all stakeholders have access to project information.

For example, Agile favors low-tech, high-touch tools, such as burn-up and burn-down charts in common areas to communicate project progress at a glance.

In the context of Business Analysis, this means that the Business Analyst is transparent about their work and makes sure that stakeholders have access to the requirements documentation.

5. Visibility of Project Progress

The Agile approach to Business Analysis also provides organizations with more visibility into the progress of the project.

In traditional Business Analysis, progress is often measured by milestones and deliverables, making it difficult to see the status of the project in real time.

In contrast, the Agile approach focuses on regular check-ins and continuous delivery, making it easier for organizations to see the progress of the project and make adjustments as needed.

This increased visibility helps organizations stay on track and avoid delays and miscommunications

Conclusion

In conclusion, Agile Business Analysis which is the practice of Business Analysis in an Agile context with an Agile mindset can bring significant benefits to organizations.

It promotes collaboration, continuous improvement, delivering value to the customer, teamwork, and transparency.

This approach allows for changes to requirements to be made quickly and effectively and ensures that the requirements are aligned with the overall project goals.

By embracing the Agile mindset and working closely with stakeholders, organizations can quickly validate and iterate on their ideas, delivering solutions that meet the needs of their customers and stakeholders.
As more organizations become agile-aware, the business analysis practice within the organization has to evolve to support the new world of work.

The application of Agile Business analysis focuses on maximizing business value. This constant focus on business value produces better and more timely business outcomes.

Agile methods and approaches have become prevalent in recent years. As a result, the practice of Business Analysis has to evolve to support the new ways of working.

Gift Ezeafulukwe (CBAP® PMI-ACP® )
Gift Ezeafulukwe (CBAP® PMI-ACP® )

Business Analyst and Agile delivery professional with a proven track record of facilitating change and process improvement through initiatives and projects of value to stakeholders.

Deeply passionate about identifying opportunities and crafting strategies, business priorities, and objectives to solve business needs, positively impact ROI, and provide future growth opportunities.

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