Effective Project Management: The Third Dimension

We all know that the key to project management making a positive impact on our business lies in the adherence to two basic principles: Doing the right project (portfolio management) and doing the project right (project management).

Yet often major corporates comply with both of these tenets and still deliver a white elephant. Consider this diagram below, which represents the (hypothetical) Black Bank's Portfolio Management Structure.

In the figure above the Black Bank seems to be doing everything right. Not withstanding the mechanisms by which these processes are implemented (standard software infrastructure etc), we would expect every project to add measurable value to the business.

The truth is: Maybe, maybe not. Let's assume that the appropriate project management infrastructure is in place, and examine a typical Strategic Alignment (PfMgt 3).

Corporate Goal: By 2011 the Black Bank will be the most successful retail banker in Australia.

Business Plan: Align operational expenditure with industry benchmarks.

Program: Streamline operational systems.

Projects: Business Process Review, Migration of data from four legacy systems to one new bespoke system.

Operations: Impact on operations will be in the form of a new core system and associated processes, to be integrated into the Standard Operating Environment.

A project of this scale and criticality to core operations requires more than a "maybe". We need more than the right project managed the right way, we need the right solution. This is where the often neglected third dimension of effective project management is often overlooked, and that is effective and efficient Business Analysis. The Business Analyst will identify the business needs and document the requirements of the solution (in this case, a new software system). That is: What must the solution do, and what proprieties must it have? Often treated as a project in and of itself, the documentation of solution requirements is absolutely critical in the project's production of an accepted product which meets the business needs.

Business Analysis is currently where project management was in Australia 12-15 years ago. We all know of it, we know we need it, but it is often unclear exactly what a Business Analyst (BA) does or what value they bring to the business.

Fortunately, just as the AIPM has played a key role in the promotion and progression of project management in Australia over the last 30 years, there are similar bodies emerging in the Business Analysis profession.

The International Institute of Business Analysis (IIBA) is currently finalising Version 2.0 of the Business Analysis Body of Knowledge (BABoK). The BABoK is structured into six core knowledge areas, as represented below:

© Copyright 2006 International Institute of Business Analysis

Enterprise Analysis:	Enterprise Analysis describes the Business Analysis activities that take place for organisations to: Identify business opportunities. Build their Business Architecture framework. Determine the optimum project investment path for the enterprise.
Requirements Planning and Management:	Requirements Planning and Management defines the resources and tasks associated with the planning and management of requirements gathering activities.
Requirements Elicitation:	Eliciting requirements that are complete, clear, correct and consistent.
Requirements Analysis and Documentation:	Requirements analysis and documentation describes how stakeholder needs are analysed, structured and specified for use in the design and implementation of a solution.
Requirements Communication:	Requirements Communication is the collection of activities and considerations for expressing the output of the requirements analysis and documentation.
Solution Assessment and Validation:	Addresses business analysis tasks necessary to ensure that the solution meets the stakeholder objectives, is thoroughly tested, and is implemented smoothly.

The IIBA also offers international recognition for business analysts through the Certified Business Analysis Professional (CBAP) program. The ongoing professional development of business analysts is encouraged through the IIBA Endorsed Education Provider program.

Australia has not been left behind in the international development of Business Analysis. The Australian Business Analysis Association (ABAA) is also growing rapidly within Australia, and has a competency based recognition program: The Qualified Business Analysis Professional (QBAP).

The key benefit of adopting a consistent and robust framework in business analysis is the enablement of genuine benefits realisation through a solution which actually meets the business need.

Business Analysis is experiencing an exciting time of unprecedented growth both in Australia and internationally. Project Managers can only benefit from partnering with our professional cousins in delivering the right project, the right way, with the right solution.

Helpful Links

http://australia.theiiba.org/
http://www.abaa.org.au/
http://www.pmpartners.com.au/

Jim Hughes is the Business Analysis Practice Lead for PMPartners. PMPartners is a wholly Australian owned company which specialises in project management and business analysis capability development, and is an IIBA Endorsed Education Provider.