ba.rmcls.com Visit us at:

The Six-Step Process for Evaluating Stakeholder Requests

An Article fromRMC Learning Solutions

www.rmcls.com

ba.rmcls.com

Business Analysis: The Best Way to Start a Project

2Visit us at:

Copyright © 2017 RMC Publications, Inc. All rights reserved. Except as permitted under the United States Copyright Act of 1976, no part of this publication may be reproduced or distributed in any form or by any means, or stored in a database retrieval system,

without prior written permission of the publisher.

10953 Bren Road East, Minnetonka, Minnesota 55343, USA

Main +1 952.846.4484

Fax +1 952.846.4844

E-mail info@rmcls.com

Business Analysis: The Best Way to Start a Project

ba.rmcls.com 3Visit us at:

Table of Contents

Meet the Author . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4

How Do Projects Get Started? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .5

Step 1: Receive the Request for Work . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .6

Step 2: Analyze the Request . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8

Step 3: Agree on a Solution Approach and Develop a Business Case . . . . . . . 11

Step 4: Prioritize Against Other Potential Projects . . . . . . . . . . . . . . . . . . . . . . . . 12

Step 5: Get Approval and Funding . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12

Step 6: Assign a Project Manager and Start Planning. . . . . . . . . . . . . . . . . . . . . .13

Conclusion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .13

About RMC Learning Solutions™ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .14

ba.rmcls.com

Business Analysis: The Best Way to Start a Project

4Visit us at:

Meet The Author Barbara A. Carkenord, CBAP®, PMI-PBA®, PMP®, PMI-ACP®

Practice Director and Trainer—Business Analysis

Barbara A. Carkenord, Director of Business Analysis at RMC

Learning Solutions has over 25 years’ experience in business

analysis, and is one of the original founders of the Business

Analysis training industry. Barbara possesses an MBA from

the University of Michigan. In 2010 Barbara was named

Small Business Woman of the Year by the Georgia Women in

Technology.

Industry certifications include:

• IIBA’s Certified Business Analysis Professional (CBAP®)

• PMI’s Professional in Business Analysis (PMI-PBA®)

• PMI’s Project Management Professional (PMP®)

• PMI’s Agile Certified Practitioner (PMI-ACP®)

Publications include:

• PMI-PBA® Exam Prep, Premier Edition, 2016

• Seven Steps to Mastering Business Analysis, 2008

• Contributor to IIBA’s A Guide to the Business Analysis Body

of Knowledge V2 (BABOK® Guide), 2009

• Contributor to IIBA’s Managing Business Analysis, 2011

• CBAP®/CCBA® Exam Prep, 2012

• Expert reviewer of IIBA’s A Guide to the Business Analysis

Body of Knowledge® (BABOK® Guide) version 3

Barbara A. Carkenord, CBAP®, PMI-PBA®, PMP®, PMI-ACP®

Connect with Barb twitter.com/bcarkenord

linkedin.com/in/bcarkenord

Business Analysis: The Best Way to Start a Project

ba.rmcls.com 5Visit us at:

How do projects get started?

How do projects get started in your organization? If you’re

thinking, “well, it depends,” you are not alone. Few organizations

have a well-defined, consistent way of deciding when work

becomes a project. However, a strong business analysis practice

can save an organization significant time and money by weeding

out low-value projects and prioritizing valuable ones based on

business need and realistic, expected benefits.

To get a great start on a project, have a business analyst look at it before you start.

The six-step process shown below provides a structure for evaluating stakeholder requests. Following a

consistent process assures stakeholders that every request will be considered equally. As titles and job

responsibilities vary in organizations, any professional with strong business analysis skills can manage this pre-

project work. People involved in this evaluation are typically portfolio managers, program managers, project

managers, business managers, or business analysts.

How should a project

get started?

1. Receive request for

work

2. Analyzerequest

3. Solution vision or scope (with business case)

4. Prioritize against other

requests

5. Get funding and sponsor

approval

6. Assign project manager

ba.rmcls.com

Business Analysis: The Best Way to Start a Project

6Visit us at:

Step 1: Receive the Request for Work

All work starts with a request. Think of this as a potential project. Someone inside or outside the organization

asks for something to be changed, added, or removed from the organization’s processes or systems.

Requests may be submitted formally through organizational processes or informally via phone call or email.

There are generally three types of requests:

A problem.

The requester or problem owner may have called a help desk or filled out a problem ticket. Maybe a

business executive wants their department to run more efficiently and save money. Problems are often

solved by changing existing systems or processes or by developing a new product. For example, to

increase productivity, a business owner requests that a data entry screen replace a paper form.

An opportunity.

People often imagine ways an organization can improve or increase revenue. An opportunity could

help a company move toward its goals more quickly. An opportunity may be a new product idea or

process improvement. For example, a sales person offers a customized product to a customer who is

willing to pay a higher price for the added value.

A constraint.

Constraints may be imposed on an organization by management’s internal policy or by an outside

agency. For example, a regulatory agency notifies an organization about a new regulation and its

required compliance date.

A request is the trigger that sets work in motion. Requesters are the first known stakeholders.

Business Analysis: The Best Way to Start a Project

ba.rmcls.com 7Visit us at:

Step 1: Receive the Request for Work (continued)

Ideally, your organization has a single place where all requests are submitted for analysis and prioritization.

Analyzing each request as it is received could be referred to as triage. In an emergency room, personnel

immediately assess each patient to determine the extent and immediacy of their issue. Patients are prioritized

based on this assessment. Likewise, in an organization, a designated analyst should review requests and make

preliminary assessments of magnitude, urgency, and priority.

Triage

Problem OpportunityConstraint

(e.g., new or updated policy or regulation)

Requests(the business need)

Internal (e.g., decrease costs, improve employee productivity)

External (e.g., new product, new distribution channel)

ba.rmcls.com

Business Analysis: The Best Way to Start a Project

8Visit us at:

Step 2: Analyze the Request

Not every request will bring the same business value to the organization. Some requests are better than

others, and some requests may not be good at all. The organization needs to analyze the value of each

request and prioritize accordingly.

Creating a data entry screen to replace a paper form will save time for employees and customers entering

information. We can easily measure the benefit of this change. If employees fill out 10,000 electronic forms

per month and each one saves about five minutes compared to a paper form, we can save 50,000 minutes

(833 hours) per month. This is roughly half of one full-time employee’s time saved.

Some requests are not as easy to quantify. Estimating business value also requires estimating costs,

including design, construction, implementation, and maintenance of the solution. When a customer asks for

a customized product, it may require design time, interrupt other work, and cost more than the customer is

willing to pay. However, keeping an existing customer happy may be more important than the time needed to

customize one product. Intangible benefits like this should be included in the assessment. Weighing the pros

and cons of a request requires cost/benefit analysis and an understanding of business value.

What Is Business Value?Each requestor believes their request will bring value to the organization. Business analysts know how to

assess and measure business value and can help articulate that value to others. The term “value” goes beyond

the worth or price of something. It can also be influenced by intangible values or missed opportunity costs

(costs and benefits of not doing an activity).

Example Business Values

Long-term stability of the organization Customer loyalty and satisfactionInnovationQuality products Money and shareholder valueBrand awarenessIndustry leadership Security BeautyImpact on the environment Justice and fairness

Business Analysis: The Best Way to Start a Project

ba.rmcls.com 9Visit us at:

Step 2: Analyze the Request (continued)

Every project request should be evaluated for its estimated business value and prioritized accordingly. Even

individual requirements are prioritized based on their potential business value. Traditionally, project success

is evaluated on variances from the planned budget, time constraints, and requested product quality. But a

project can be well run, come in on time and within budget, and still not provide value to the organization

or solve the identified problem. Project success should be measured by the actual business value created

compared to the expected value. Select high-value projects by spending time up front determining the

expected business benefits and the costs.

Would the Idea Provide Organizational Business Value?Project objectives should articulate the expected business value to the organization. However, defining

project objectives is challenging because stakeholders often have conflicting values. Business analysts often

facilitate conversations about these value discrepancies to help the group come to a consensus based on the

organization’s overriding vision and strategic goals.

Some requests benefit an individual department or division while shifting work to another group. For

example, when a company asks their franchisees to enter their orders onto a web site, the company has

shifted the data entry work to their franchisee. They haven’t improved the overall process, just shifted the

work to a different group. This type of request does not bring overall organizational value and should be

rejected or refined.

Some requests may help a specific business area but don’t align with the organization’s strategy and goals.

Imagine asking for a change to a software package which will be replaced within six months. Making a change

to an obsolete system does not align with organizational plans. These requests should also be rejected.

When stakeholders have a conflict over requirements or expected benefits, the analyst should elicit each

perspective to resolve the conflict. Maybe one stakeholder wants to simplify a process (value: decreased

cost), while another stakeholder wants to add a new product to the catalog (value: increased revenue). These

are both positive ideas for the organization but would result in very different projects. Help stakeholders

reach agreement by facilitating discussions about the organization’s goals, the estimated cost and net

business value of each idea.

ba.rmcls.com

Business Analysis: The Best Way to Start a Project

10Visit us at:

Step 2: Analyze the Request (continued)

The Three Buckets: MUST DOS, REJECTIONS, and LOOKS PROMISINGInitially, every request can be added to one of three buckets: MUST DOS, REJECTIONS, or LOOKS PROMISING.

Understanding the reason for each request is critical, as business analysis work differs based on the type of

request. For example, if a request will resolve a serious problem impacting the organization’s ability to do

business, it immediately becomes a MUST DO. However, if the request will cost more to implement than it

will save in expected benefits, it should be REJECTED. If a problem is less immediate, the request is placed in

the LOOKS PROMISING bucket to be further analyzed and prioritized. If a request highlights an opportunity,

the analysis work could include estimating potential benefits, performing competitive analysis, or generating

alternative solution ideas. Some requests are constraints, such as a new government regulation, and have few

solution alternatives. In this case, business analysis work focuses on bringing the organization into compliance

with the new constraint while minimizing negative impacts.

MUST DOs (e.g., regulations, critical problems)

REJECTIONS(not enough

potential business

value)

LOOKSPROMISING

(needs further analysis)

StakeholderRequests

Business Analysis: The Best Way to Start a Project

ba.rmcls.com 11Visit us at:

Step 3: Agree on a Solution Approach and Develop a Business Case

When initial analysis confirms the request is worth pursuing (in

the MUST DOS or LOOKS PROMISING buckets), the team needs

to discuss solution alternatives and assess the estimated costs

of each. Most requests can be addressed in a few different ways,

and an excellent business analyst never gets locked into one

solution before considering other options. For example, to replace

a paper form with a data entry screen, the form could be built

into an existing website, mobile app, or voice recording system.

Teams often use brainstorming techniques to generate creative,

innovative ideas for solutions then analyze each possible idea.

Regardless of method, all feasible options should be considered

before one is chosen.

“Highlighting the value of each request helps the organization better compare and prioritize projects.”

Once the requester, business analyst, and other key stakeholders agree on a solution approach or product

vision, the business analyst helps estimate the business value that will be achieved if this solution is built. They

also work with technical designers and architects to estimate the costs involved in designing and building the

solution along with expected maintenance costs. These benefits and costs are then compared in a business

case or cost/benefit analysis to determine if the request should move forward. The business case includes the

estimated net business value of the request with objective, measurable criteria. Highlighting the value of each

request helps the organization better compare and prioritize projects. Keep in mind, however, that financial

considerations are only one component of project selection.

If a request is rejected, it is useful to document the reasons. Similar requests may be submitted in the future,

so having a history of past decisions will help expedite future triage. Keep in mind that business conditions

are constantly changing. A request that didn’t make sense last year may be more viable this year, so it is

important to verify the assumptions and the expected outcomes of each request.

ba.rmcls.com

Business Analysis: The Best Way to Start a Project

12Visit us at:

Step 4: Prioritize Against Other Potential Projects

Once a request has a business case, it can be prioritized against existing requests. This backlog of requests

should be reviewed on a regular basis, and the highest priorities should be promoted to projects.

Organizations that don’t follow this six-step process often struggle with prioritization. Sometimes

the requester with the highest position in the organization gets their requests prioritized. Sometimes

organizations respond first to the requests that are smallest or easiest to complete and never get to the

bigger, more complicated initiatives. Other organizations try to work on every request and wind up with

overworked employees and few completed projects. Prioritization is difficult, but it is much easier if each

request has a business case and a strategic plan for comparison.

When the value is financial, there are many formulas that can be used to evaluate and compare options.

Return on investment (ROI) calculations estimate how much the organization will receive if they fund

the potential project. Payback period is the length of time it will take for the organization to recover the

investment in the project. Other financial measures, such as the internal rate of return (IRR) and net present

value (NPV), may be used. However, value can’t always be calculated in financial terms. In some cases, the

best choice might be a project with a longer payback period but other intangible advantages (like keeping a

good customer happy).

Step 5: Get Approval and Funding

Just because a request is likely to add business value doesn’t mean the organization has the time or resources

to complete it immediately. Once a request has been analyzed and prioritized, someone in the organization

must provide funding. The project sponsor, as the key stakeholder, is the person or group (such as the

steering committee) who provides the funding for the project. The sponsor may be the original requester, the

requester’s manager, or an executive. If particular skills are needed for this project, the sponsor could move

employees off lesser-value projects or look for outside resources to fill the gaps. If the project was requested

by an outside customer, the price is established, and a proposal is presented to them.

Business Analysis: The Best Way to Start a Project

ba.rmcls.com 13Visit us at:

Step 6: Assign a Project Manager and Start Planning

Only after completion of the previous five steps does a request become a real project. At this point, the

organization assigns a project manager who begins planning the project. When these six steps are complete,

the project manager has great information with which to plan. If a project manager struggles during project

planning, it may be an indication that this pre-project analysis was not done.

Conclusion

People suggest hundreds of ideas to improve their organizations. Every organization needs an objective,

consistent evaluation system for considering these ideas. Each idea must be evaluated on its potential

business value, alignment with corporate strategy, and the availability of resources. When all ideas are

evaluated in the same manner, the best ideas will be pursued, project plans will be more accurate, and every

project will move the organization towards its strategic goals.

How does this process compare to your organization’s process for evaluating stakeholder requests? Business

analysis work is not just about requirements, use your business analysis professionals to help everyone in the

organization understand business value and assess the importance of their requests before your organization

starts a project.

ba.rmcls.com

Business Analysis: The Best Way to Start a Project

14Visit us at:

About RMC Learning Solutions™

RMC Learning Solutions develops and trains project managers,

business analysts and agile practitioners by helping them learn

the skills necessary to succeed in their careers. We deliver a wide

range of training in multiple learning formats across the globe.

Founded in 1991 by Rita Mulcahy, the company continues to

develop and provide innovative, real-world tools and instruction,

delivered by professionals with extensive experience and a

working knowledge of industry best practices.

Main 952.846.4484 • Fax 952.846.4844 • E-mail info@rmcls.com

10953 Bren Road East • Minnetonka, Minnesota 55343 USA

For more information visit www.rmcls.com/professionaldevelopment

IIBA®, the IIBA® logo, BABOK® Guide and Business Analysis Body of Knowledge® are registered trademarks owned

by International Institute of Business Analysis™ CBAP® and CCBA® are registered certification marks owned by

International Institute of Business Analysis.

Project Management Professional (PMP)®, Certified Associate in Project Management (CAPM)®, PMI Professional

in Business Analysis (PMI-PBA)® and PMI Agile Certified Practitioner (PMI-ACP)® are registered trademarks of the

Project Management Institute, Inc.

If you are considering business analysis training for your team, contact RMC at 952.846.4484 or email us at info@rmcls.com to learn more about our training options.

SUBSCRIBE TOCONVERGING 360

JOIN OURNEWSLETTER