1. © International Institute of Business Analysis © International Institute of Business Analysis™ Welcome to the IIBA ® Webinar Two options to connect: Option 1: Use your computer’s speakers or headset (VOIP).  This is the default setting.  A headset is recommended. Option 2: Select "Use Telephone" after joining the webinar and call the country number closest to you:  Enter the phone number  Enter the access code + pound (#) Access Code - 684-622-073  Enter the Audio PIN + pound (#) Shown after joining the Webinar Australia: +61 (0) 2 8014 7529 Austria: +43 (0) 7 2088 0452 Belgium: +32 (0) 38 08 0292 Denmark: +45 69 91 84 59 Finland: +358 (0) 341 08 9275 France: +33 (0) 182 880 275 Germany: +49 (0) 895 4998 6517 Ireland: +353 (0) 15 262 855 Italy: +39 0916193314 Netherlands: +31 (0) 202 629 698 New Zealand: +0800451500 Norway: +47 85 22 68 45 Spain: +34 925670951 Sweden: +46 (0) 770 791 805 Switzerland: +41 (0) 415 0008 65 United Kingdom: +44 (0) 161 660 8220 United States: +1 516 453 0014 Access Code: 684-622-073 You will be able to listen to the webinar using either option, but will be muted. Comments and questions will be accepted through the question box. This webinar will be archived in 4 business days and posted to the Webinars page.

2. © International Institute of Business Analysis 2 Vision and Mission 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. Vision The world's leading association for Business Analysis professionals Mission

3. © 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

4. © International Institute of Business Analysis The Strategic Business Analyst Using Strategy to Guide Project Decisions

5. © International Institute of Business Analysis 5 Introduction  Kent J McDonald  Program Manager  BA background  Experience in many industries  Author, Stand Back and Deliver

6. © 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

7. © International Institute of Business Analysis 7  Description:  Introduce the Purpose Alignment Model.  Desired Outcomes:  Make organizational strategy accessible  Use strategy to guide decisions  Improve business value models Introduction: The Strategic BA

8. © 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

9. © 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.

10. © International Institute of Business Analysis 10 Whither Strategy?  Strategy has different meanings to different People  Michael Porter’s definition:  Strategy = Sustainable Competitive Advantage

11. © International Institute of Business Analysis 11 The BA’s Role The Fundamentals Business Analysis Planning Requirements Management and Communication Enterprise Analysis Elicitation Requirements Analysis Solution Assessment And Validation

12. © 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...

13. © 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?

14. © 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.

15. © International Institute of Business Analysis 15 The Purpose Alignment Model

16. © International Institute of Business Analysis 16 In Practice DO WE TAKE THIS ON? INNOVATE, CREATE MINIMIZE / ELIMINATE ACHIEVE AND MAINTAIN PARITY, MIMIC, SIMPLIFY

17. © International Institute of Business Analysis Applicable at all Levels  Corporate Strategy  Product Strategy

18. © International Institute of Business Analysis18 A View of Strategy - Apple ATT NEW PRODUCT DESIGN USER EXPERIENCE CONTENT DISTRIBUTION MS OFFICE INTEL HARDWARE OTHER SOFTWARE PERIPHERALS

19. © 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

20. © International Institute of Business Analysis 20 Using Purpose Is data entry sequence here? or here? or even?

21. © 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?

22. © International Institute of Business Analysis 22 Graphically - Before PROJECT TRACKING DOCUMENT MGMT DOCUMENT EDIT DOCUMENT LIBRARY SEARCH EDGAR INTEGRATION NOT MUCH HERE - NIH NOT MUCH HERE EITHER OF COURSE OUR IDEAS ARE IMPORTANT

23. © International Institute of Business Analysis 23 Graphically - After PORTALDOCUMENT EDIT PROJECT TRACKING DOCUMENT MGMT DOCUMENT LIBRARY SEARCH EDGAR INTEGRATION

24. © International Institute of Business Analysis24 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.

25. © 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.

26. © 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?

27. © 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

28. © 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:

29. © 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.

30. © 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?

31. © 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.

32. © International Institute of Business Analysis 32 Fine, How Do I Start? Present the model Define the decision criteria Distill to simple questions Make better decisions Example Questions: Will this lower lifetime cost? Will this lock up long contracts?

33. © International Institute of Business Analysis Driving to Better Decisions

34. © 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.

35. © International Institute of Business Analysis 35 One Last Example - Payroll LG BP CP One Payroll PAM: Payroll = Parity (15 minutes) Net result, one system, one set of rules, standard codes and process.

36. © 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.

37. © International Institute of Business Analysis 37 © International Institute of Business Analysis 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

38. © 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

39. © 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.orgwww.theiiba.org