CHAPTER 3
Establishing a Home for Your BA Practice
One of a BA practice manager/lead’s key responsibilities is to examine the organization to determine the best fit for placement of the BA practice based on cultural, environmental, and maturation considerations. Perhaps a less formal structure is appropriate initially to build the foundation and credibility needed to implement a full-service, value-based BA center of excellence. Leverage your organization’s structures and power bases to launch your BA practice, constantly demonstrating the value of business analysis.
A center of excellence is a team of people that is established to promote collaboration and the application of best practices. Centers of excellence are emerging as a vital strategic asset to serve as the primary vehicle for managing complex change initiatives. Within an organization, a center of excellence may refer to a small group of people, a department, or a shared facility. It may also be known as a competency center or a capability center. In technology companies, the formation of a center of excellence is often associated with new software tools, technologies, or associated business concepts such as service-oriented architecture or business intelligence.
THE BUSINESS ANALYSIS CENTER OF EXCELLENCE
The business analysis center of excellence (BACOE) is an emerging business practice—a new type of center that serves as the single point of accountability for everything that is business analysis. The BACOE defines the business architecture, rules, processes, data and knowledge, skills and competencies, and tools the organization uses to carry out business analysis activities throughout the project life cycle, from strategic planning to project initiation to solution delivery and benefits realization.
As the discipline of business analysis becomes professionalized, it is no surprise that BACOEs are emerging all around us. Staffed with knowledgeable business and technology experts, these centers are fulfilling a vital need in organizations today—providing a business-focused home for current business analysis practices, technologies, and emerging trends. The BACOE serves as an internal consultancy and information broker to both project teams and executive management. In addition, the BACOE is responsible for the improvement, and sometimes transformation, of business analysis practices. To that end, the BACOE continually evaluates the maturity of business analysis and implements improvements to overall business analysis capability. It is the BACOE that reports on the business benefits of project deliverables and of the BA practice itself.
It is a challenge, however, to establish a center of excellence that is accepted and supported by the organization. Considerable effort and due diligence are needed to make sure the new center is successful.
For a BACOE to be viewed as adding value, one of the critical functions it must perform is benefits management, a continuous process of identifying new opportunities, envisioning results, implementing, checking intermediate results, and dynamically adjusting the path leading from investments to business results. The role of the high-value BACOE is multidimensional, including: (1) providing thought leadership for all initiatives to confirm that the organization’s investments are innovative solutions, (2) conducting feasibility studies and preparing business cases for proposed new projects, (3) participating in all strategic initiatives by providing expert business analysis resources, and (4) conducting benefits management to ensure that strategic change initiatives provide the expected value. The BACOE is staffed with credible business/technology experts who act as central points of contact to facilitate collaboration among the lines of business and the IT groups.
IMPLEMENTING THE BACOE
Once you have completed the readiness phase, your attention should turn to establishing a BACOE that is customized to fit your organization.
INTEGRATION
Although the BACOE is by definition business-focused, it is of paramount importance for successful centers to operate in an environment where business operations and IT are aligned and in sync. In addition, the disciplines of project management, solution design and development, and business analysis must be integrated. Therefore, to achieve a balanced perspective, it is important to involve business operations, IT, PMO representatives and project managers, and representatives from the portfolio governance group in the design of the BACOE. Indeed, your organization may already have one or more centers of excellence. If that is the case, consider combining them into one centralized center focused on program and project excellence. The goal is for a cross-functional team of experts (business visionary, technology expert, project manager, and business analyst) to address the full-solution life cycle from business case development to continuous improvement and support of the solution for all major projects.
BUSINESS DRIVERS
Understanding the business drivers behind establishing the BACOE is of principal importance. The motive for establishing the center must be unambiguous, since it will serve as the foundation for establishing the purpose, objectives, scope, and functions of the center. The idea to set up a BACOE might have originated in IT, because of the number of strategic, mission-critical IT projects impacting the whole organization, or in a particular business area that is experiencing a significant level of change. Whatever the genesis, strive to place the center so that it serves the entire enterprise, not just IT or a particular business area.
ORGANIZATIONAL PLACEMENT
One of the biggest challenges for the BACOE is to bridge the gap between business and IT. To do so, the BACOE must deliver multidimensional services to the many diverse groups. Regardless of whether there is one center of excellence or several more narrowly focused models, the BACOE organization should be centralized. Centralization fosters consistency and coordination, minimizing duplication of effort, confusion, and political maneuvers for control. It also enables organizations to configure and develop their IT systems by business process rather than by business unit, leading to more efficient and more streamlined systems operations. Whether large or small, best-in-class BACOEs evaluate the impact of proposed changes on all areas of the business and allocate resources and support services according to business priorities and business value.
Positioning is equated with authority in organizational structures; the higher the placement, the more autonomy, authority, and responsibility will likely be granted to the center. Therefore, position the center at the highest level possible in the organization.
ONE SIZE DOES NOT FIT ALL
To find the “perfect fit” for your BA practice center, take these elements into consideration, tying your vision, mission, and purpose to them:
• Maturity of the organization’s processes and capabilities. The current state of the organization must be taken into consideration, including the effectiveness of strategic planning and project portfolio management practices, business performance management processes and strategies, business and technology architectures, development and support processes, and the strength of the business focus across the enterprise. Clearly, organizations with more mature practices achieve higher levels of value from their COEs.
• Size of the organization and level of change. Organizations can effectively absorb a limited amount of concurrent change, while maintaining productivity levels, at any given time. Therefore, a gradual approach to implementing the BA center is recommended. One option is to adopt a three-phased approach, moving across the BACOE maturity continuum from a project-focused structure to a strategic organizational model.
• Size of your BA team. How many BAs are enough? How many are too many? This depends on how many critical change initiatives are ongoing at any point in time. As software and other product development tools become more sophisticated, more BAs are needed to ensure a focus on business value. It is advisable to err on the small side; too big can be viewed as too costly.
• Competitive pressure of the industry. The higher the pressure to innovate products, services, and business capabilities and practices, the greater the need for the center.
BACOE MODELS
Several models of BACOEs are in use today (see Table 3-1). Each structure has a unique composition, goals, and outcomes. The type of center that is most appropriate depends on your organization’s culture and politics. The center will be most effective when it has sufficient authority and influence. COEs run the gamut from purely advisory to enforcers of BA standard methods and tools. Often, the center plays an advisory role for some departments and a decision-making and enforcer role for others. If your organization already has centers of excellence in place, the BACOE concept will likely be more readily accepted. If not, you will need to tread lightly at first until you gain support and trust.
TABLE 3-1. BA Center of Excellence Models
As you begin to examine models for centers of excellence, you will find lots of variety. Most mid-to-large size organizations have multiple communities of practice. They may focus on different disciplines (e.g., project management, architecture, cloud computing) and may carry different names (e.g., IT process group, PMO). When you are considering the right fit for your organization, be certain to plug into the existing communities, especially if they are viewed as a positive force, so that processes will run smoothly end to end. This will help you gain instant credibility and acceptance as well.
The following “Views from the Ground” describe options that organizations have adopted for their BACOE.
A View from on the Ground
ANALYST COMMUNITY VS. CENTER OF EXCELLENCE
Kate Gwynne
Associate Director, Business Analysis
Advertising Industry
Here is one company’s view of the differences between an informal community of practice and a formal center of excellence.
| Analyst Community | Center of Excellence |
| Reporting structure: BAs dispersed among business/domain areas; report to managers who may/may not understand BA role |
Reporting structure: Centralized BAs in PMO or other shared service department; report to practice lead(s) |
| Success relies on: BAs who are passionate about skills improvement and best practices; managers and executives who support BA practice within each domain; strong practice lead with ability to persuade, coach, mentor, and train |
Success relies on: Executive support across organization; strong leadership with ability to manage, coach, and train BAs |
| Project staffing: BAs work on domain-specific projects, often regardless of expertise |
Project staffing: BAs are assigned based on availability and expertise needed for project type |
| Role descriptions: May differ across the organization based on the actual job duties; more subject matter experts (SME) on business domains |
Role descriptions: Consistent across organization;more in line with industry standards for skills and competencies |
| Career Path: Junior > Mid-level > Senior BAs;seniority and domain knowledge often override breadth and depth of analytical expertise |
Career path: Junior > Mid-level > Senior > Strategic / Enterprise BAs; breadth and depth of analytical expertise overrides domain knowledge |
A View from on the Ground
BUSINESS ANALYSIS COMMUNITY OF PRACTICE DEFINED
Sandra Sears
IT Process and Practice Development
Insurance Industry
The BA community of practice (BACoP) is a group of professionals working collaboratively to build the business analysis discipline. The mission of the BACoP is to evolve as the recognized source for enterprise business analysis collaboration, innovation, and knowledge sharing and to mature the BA practice in alignment with system development life cycle processes and industry standards.
A View from on the Ground
BUSINESS ANALYSIS COMMUNITY OF PRACTICE
Sandra Sears
IT Process and Practice Development
Insurance Industry
Here is a view of one company’s multiple communities of practice with feedback links for integration.
One of the key differentiators of these CoPs is that they have decision-making power. They vet all suggestions for process improvements within their discipline, prioritize them, and recommend them for action to the CoC, which assigns responsibility for design and implementation of the change. Design and implementation of the recommendation may be performed by the community itself or it may be handled by the IT process and practice development group.
A View from on the Ground
PMO-BA COMPETENCE CENTER
Michele Maritato
Project Manager, Business Analyst Consultant
In this organization several issues related to projects originated from the lack of competencies in business analysis and the lack of a consistent requirements management approach. The company decided to introduce the new role of “business analyst” and needed help developing and placing this role properly within the enterprise organization structure. Furthermore, the company wanted to develop a consistent requirements management approach across projects.
This company had an internal PMO that was managing and controlling all projects centrally; it made sense to create the new “business analysis competence center” within the PMO. In this way, BA competencies were centralized and the business analysts were placed at the same organizational level as project managers. The competence center was responsible for developing a consistent requirements management methodology across all projects.
THE FORMAL BACOE MODEL
If a formal BACOE is the best fit for your organization, we recommend a three-phased approach to implementation of a value-based BA practice center. In this approach, the center moves across the BACOE maturity continuum from a project-focused structure with limited influence to a strategic organizational model, and finally to a focus on innovation and the competitive positioning of the organization (see Figure 3-1).
FIGURE 3-1. BACOE Maturity Continuum
A truly comprehensive BACOE is broadly scoped and strategically placed to include the services, functions, tools, and metrics needed to ensure that the organization invests in the most valuable projects. The BACOE then delivers the expected business benefits from project outcomes in terms of value to the customer and wealth to the organization. A full-service BACOE typically performs the functions described in Figure 3-2.
FIGURE 3-2. BACOE Scope
A fully functioning BACOE is capable of providing services across the spectrum of business analysis practices. The BACOE mission and objectives are met through training, consulting, and mentoring BAs and project team members; by providing BA resources to the project teams; by facilitating the portfolio management process; and by serving as the custodian of BA best practices.
WHERE TO START?
Based on the history of best practices for setting up centers of excellence, implementation involves four steps (see Figure 3-3):
1. Visioning and concept definition
2. Assessing the organizational knowledge, skills, maturity, and mastery of business analysis practices, and expectations of the BACOE
3. Establishing BACOE implementation plans
4. Finalizing plans and creating action teams to develop and implement the infrastructure to launch the center.
FIGURE 3-3. BA Centers of Excellence Implementation Approach
VISIONING
It is important to create a vision for the new center. This vision will be closely aligned with (or the same as) your vision for the BA practice that is included in the business case. Create a preliminary vision and mission/purpose statement for the center, developing the concept in enough detail to prepare a business case for establishing the center. Vet the proposal with key stakeholders and secure approval to conduct the assessment of business analysis practices and plan for the implementation of the center. The business case will likely be an update to or the same as the case prepared for the BA practice. Keep the business case alive, updating it as decisions are made and more is learned.
During meetings with key stakeholders, secure buy-in and support for the concept. Large-scale organizational change of this nature typically involves restructurings, cultural transformation, new technologies, and new partnerships.
ORGANIZATIONAL ASSESSMENT
The purpose of the organizational assessment is to determine organizational expectations for the BACOE and to gauge the cultural readiness for the center. Form a small assessment team to identify key challenges, gaps, and issues that should be addressed immediately. The ideal assessment approach is to conduct a formal organizational maturity assessment (discussed in detail in Chapter 5). However, a less formal assessment may suffice at this point. In addition, assess the current state of the following areas:
• BA acceptance by PMs, developers, architects, customers, managers, and other key stakeholders
• BA measures of success and incentives
• BA training and development programs
• BA formal or informal HR structures such as roles, career path, and pay scale (as compared to industry salary surveys).
This information will help you build your implementation and change management plans.
IMPLEMENTATION PLANNING
Develop a BACOE business plan and charter that describes the center in detail. Planning considerations include the elements listed in Table 3-2. It is helpful to draft the plan and charter, and then conduct a BACOE kickoff workshop where they are viewed, refined, and approved.
| Agenda Items | Kick-off Workshop Agenda Items |
| Strategic Alignment, Vision, and Mission |
Present the case for the BACOE, referencing the business case for more detailed information about cost versus benefits of the center. |
| Assessment Results |
Include or reference the results of the assessments that were conducted:
|
| Scope | Describe the scope of responsibilities of the BACOE, including:
|
| Authority | Centers of excellence can be purely advisory or they can have the authority to own and direct business processes. The organizational placement should be commensurate with the center’s authority and role. When describing the authority of the COE, include the governance structure (who or what group the COE will report to for guidance and approval of activities). |
| Services | A center of excellence is almost always a resource center, developing and maintaining information on best practices and lessons learned, and often assigns business analysts to projects. Document the proposed role:
|
| Organization | Describe the BACOE team structure, management, and operations, including:
|
| Budget and Staffing Levels | At a high level, describe the proposed budget, including facilities, tools and technology, professional development, consulting services, and staffing ramp-up plans. |
| Implementation Approach |
Document formation of initial working groups to begin to build the foundational elements of the center. In addition, describe the organizational placement of the center and its initial focus (i.e., project-centric, enterprise focus, or strategic focus). |
Organizational expectations of the BACOETABLE 3-2. BACOE Implementation Workshop Agenda
LAUNCHING THE BACOE
After the workshop session, finalize the BACOE charter and business plan, and launch the center. Form working groups to develop business analysis practice standards; provide for education, training, mentoring and consulting support; and secure the needed facilities, tools, and supplies.
A View from on the Ground
CHALLENGE: SUSTAINING THE TRANSFORMATION
Sandra Sears
IT Process and Practice Development
Insurance Industry
We adopted many strategies to ensure the changes were institutionalized and did not slowly erode. We established communities of practice and a community of communities, and made continuous improvement part of business as usual. We knew we needed a measurement and metrics program. We started simply, at first just letting data from metrics and feedback drive new, improved metrics. In addition, we discovered that we needed to learn and institutionalize the process before learning to use a new tool. Our management tool, PPM Central, was deployed more than a year after adoption of the processes.
PUTTING IT ALL TOGETHER
WHAT DOES THIS MEAN FOR THE BUSINESS ANALYST?
Today’s BAs are performing their duties in a myriad of organizational environments. Determine where your organization is on the continuum and get involved in moving your BA practice to the next level by establishing or advancing a BACOE.
WHAT DOES THIS MEAN FOR THE BA MANAGER/PRACTICE LEAD?
The BA practice manager/lead should examine the organization to determine the best fit for the BACOE. Perhaps a less formal center of excellence is appropriate initially to build the foundation and credibility needed to implement a full-service, value-based BACOE. Leverage existing structures and power bases to launch your BACOE, constantly demonstrating the value of a mature BA practice.
Establishing centers of excellence is difficult because it destabilizes the sense of balance and power within the organization. Ambiguities arise when stakeholders are adjusting to the new model. These may manifest as resistance to change and can pose risks to a successful implementation. Therefore, coordinate and communicate about how the center will affect roles and responsibilities. Do not underestimate the challenges you will encounter from cultural resistance. Pay close attention to—and apply—organizational change management principles.
In Chapter 4 we present the case for a BA practice lead to build a capable BA workforce based on the complexity of current and future project assignments.