PROJECT MANAGERS NEED BUSINESS ANALYSTS TO SUCCEED. WHY?
I was fortunate to have started as a Business Analyst before becoming a Project Manager. In many ways I think it’s an ideal career path to project management and, eventually, program or portfolio management. In this entry, I explain the reason for that.
Projects are everywhere. We work on them constantly even though we don’t realize it.
Typically, three types are found in anyone’s list of things-to-do. Tasks. Projects. And goals.
Tasks are straightforward activities. Clean the room. Replace the car battery. Walk the dog.
Projects consist of several tasks. Prepare the car for the long trip may consist of tasks like making an appointment with the mechanic, waiting for the mechanic to identify the parts that need to be replaced, tuned up, or repaired, and arranging an alternative means of transportation while the car is being prepared.
Goals are objectives, broadly speaking. Join the family reunion is a goal. Among its projects may be preparing the car for the long trip as well as scheduling time off from work. In this example goal, the explicit objective is to drive a safe and tuned car for the long trip. The idea is to reach the destination safely and minimize the possibility of developing car trouble during the trip.
It’s no different in business. A goal is established and projects emerge to accomplish the goal. Projects, therefore, are essential to the fulfillment of goals and, broadly speaking again, goals are established to either cut costs or increase revenue. All organizations have goals. Therefore, all organizations engage in projects. Projects, therefore, are everywhere. We work on them constantly even while we don't realize it.
ACCELERATION THROUGH TECHNOLOGY
Today, technology has sped up the pace of life. Consequently, competition is more intense. Imagine a company with a better-designed product. It must generate revenue from that product with a sense of urgency. Why? Because it’ll only be a matter of time before competitors introduce their own improved product. The very website that markets the product (technology) is also the window that alerts competitors. There are several ways for competitors to come up with an improved product. For example, it can engineer its own and do so with the same people who created the original. The competitor simply hires the company’s employees. Whether the competitor hires them directly or through a recruiter, technology in the form of email or the mobile phone enables it quickly and discreetly.
This holds true even for a company that possesses a strategic advantage—“strategic” in the sense that its advantage is major or more permanent. Take a company with a grocery store in a better location. Perhaps, it may even be the only grocery in a rural area. The combination of human intelligence augmented by technology—this time for example, in the form of targeted direct mail—can level the field.
MAKING BUSINESS PROCESSES MORE EFFECTIVE
Today, goals tend to revolve around making the organization more competitive. For example, if a hospital can forecast the peak times of its Emergency Department (more commonly known to the public as “ER,” for Emergency Room), then it can schedule its personnel more effectively. Why have four ER personnel during the Tuesday morning shift when it knows that more cases are more likely to arrive that evening? Is it possible to do this? After all, how can it predict the future? Sure, it can and with a high level of accuracy. The majority of hospitals have never applied the statistical principles of forecasting that airlines use. Even long-established methods of manufacturing (like quality control) can contribute to the forecasting.
More effective processes create cost savings, a better bottom line, and a competitive advantage. Most goals, therefore, revolve around improving these processes—re-engineering them to make them more efficient and, ultimately, more effective.
EFFICIENT & EFFECTIVE
What’s the difference between efficient and effective? The best definitions I’ve encountered are succinct: efficient means doing things right (the first time) but effective means doing the right things.
To continue, business processes are frequently a combination of workflows and IT processes. A workflow combines human action and practices. When a patient arrives at the ER, the patient’s information must be collected. Will the workflow consist of the admission clerk writing the information on a paper form or keying it into a computer?
Today, it’s mostly the latter. Data and information, therefore, are two critical components of business processes. Many projects, therefore, are IT-based.
DATA & INFORMATION
What’s the difference between data and information? This is the distinction I prefer: data becomes information when data is put in context. The numeral 2, for example, is data. However, if 1 is the code for male and 2 is the code for female, then the numeral 2, in that context, becomes information.
To continue, projects, especially ones that tinker with processes, must be carefully implemented. An important factor that improves the success rate of projects is careful preparation. In particular, the early phases of any project must be focused on understanding the requirements of the project. Requirements must be clarified in order to ensure that the objective of the project is satisfactorily met.
If the project created an accurate ER forecasting system but the project manager (and his sponsors) failed to ensure the availability of the right combination of medical staff, then the hospital may even be worse off than before. A similar situation may arise if the hospital did not adjust its resources to equip the ER with enough equipment to handle the forecast.
THE COLLABORATION OF THE PROJECT MANAGER AND BUSINESS ANALYST
Successfully implementing a project requires two persons. First is the Project Manager (PM). He focuses on leading the project to its successful completion. However, to ensure that the project’s objective delivers the intended benefit, another person is necessary. This is the Business Analyst (BA). The BA is concerned with managing the business requirements of the project. The business requirements refer to the business benefit of the objective (e.g., cost savings) and to the things necessary to achieve that objective. Poor business analysis leads to inadequate information that, in turn, generates incorrect requirements. Incorrect requirements lead to inaccurate estimates and any project that begins with an inaccurate baseline will likely fall short of its objective.
A project’s requirements span the range from understanding the business case to identifying the processes that will be affected to defining the exact outcome. The last may seem strange but it’s critical to know how the outcome will look like. Will the project objective be met when the forecasting system is in place? Or will it be considered met after the budget has been changed and approved?
Now, isn’t it obvious that a project’s requirements must be captured and fully understood before the project plan is finalized?
The BA has the responsibility of bridging the gap between the user community and the IT personnel. From the former, the BA uncovers their requirements. From the latter, the BA collaborates to design the solution.
In some ways, the BA is more essential to a project’s success than the IT experts. Technical skills can be outsourced but the BA and his skills need to be present in order to uncover the project’s requirements. With that in mind, doesn’t it appear that business analysis should not be treated as subordinate to technical expertise? Many IT experts do not possess the temperament or personality to gather, understand, and analyze business requirements from the user community. Fewer still are able to create realistic solutions that address these requirements since many solutions are a combination of technology and processes.
Many processes involve workflows and, as mentioned earlier, people are typically involved in workflows. Persuading people to change their habits is not an easy task. Changing work habits is especially difficult since workers naturally do not want to be blamed for undesirable results. So delicate and important is this that change, in today’s environment, has evolved into its own management discipline—called, appropriately enough, change management.
Many projects that fail share this condition. The project is initiated, planned, and implemented before the project team and project stakeholders understand the business requirements clearly. This is due, in large part, to our natural belief in technical wizardry and our impatience in old-fashioned techniques of surveys and brainstorming. Too often, the latter activities are rushed. Capable PMs that take over failing projects will realize the problem and force mid-course corrections. Unfortunately, even if the project eventually meets its objective, it will invariably have exceeded its original budget and schedule.
A BA makes valuable contributions in numerous ways. He has created sub-objectives from the primary objective based on a clear understanding of the business case for the project. He has gathered the requirements that the project must meet. He has analyzed these requirements with respect to risk, resources, and time. He has shared these with the PM and project team and assisted them with devise the solution.
This blogpost, I trust, should have made it clear why I think that Project Managers need Business Analysts to succeed.
Business Analysts have a professional organization of their own, like Project Managers. BAs have the International Institute of Business Analysis. PMs have the Project Management Institute.
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