Tuesday, 10 January 2012 10:52

7 Trends in Business Analysis and Project Management to Watch for in 2012

Written by  Elizabeth and Richard Larson
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The close of one year tends to make one reflect on what has occurred in the past year related to and ponder the future. Here we ponder some trends in the Project Management and Business Analysis fields for 2012. Here are our top seven predictions for business analysts (BAs) and project managers (PMs) in 2012.

  1. Divergence of the PM and BA Role. In 2009 we predicted that as the economy tightened, organizations would decrease their project budgets and combine the role of PM and BA. For 2012 we believe that organizations will see the need for both roles, particularly on strategic projects, and move away from a combined role. There are several factors for this trend:
    1. Business analysis is maturing as a profession. As the IIBA has gained traction, more organizations have become aware of the BA role and its importance. From 2010 to 2011 the number of IIBA members increased about 50%.
    2. Organizations have found that even with successful project management, many projects fail because of dissatisfaction with the end product. Having business analysts helps ensure that the product is a solution that works and is one the organization needs.
    3. PMI has recognized the importance of the business analyst role. In 2010 they undertook a study to determine areas of overlap, handoffs, and how the two roles could collaborate.
  1. Combined Agile methods. We predict that Agile methods will continue to change and merge as organizations take advantage of the benefits of Agile. In our 2009 Trends blog we stated that “Integrating Agile methods into project management and business analysis is a trend that will continue in 2009. Currently, the industry has a wide, varied, and inconsistent use of Agile techniques. This trend is likely to continue.”

    In the two years since we wrote that article, Agile methods have continued to evolve. Although organizations have widely adopted Scrum as the predominant Agile method, they still struggle with its implementation. We think that organizations will continue to adopt Agile methods, but that these methods will continue to evolve. Combined techniques, such as Scrum-ban (which combines Scrum with the Lean technique Kanban) or Scrumerfall (a combination of Scrum and Waterfall) will be adopted for different kinds of projects.

  1. PM and BA on Agile projects. We predict that the role of the BA and PM on Agile projects will solidify. When Agile started to be adopted, some organizations thought that the roles of PM and BA were obsolete. However, more and more organizations have recognized that the need for both roles, even if the titles are new. The Scrum Master role is best filled by someone with the expertise to coordinate the initiating, planning, executing, monitoring, & controlling, and closing each iteration and release. In other words, the work typically done by a PM. The designations of Certified Scrum Master (CSM) from the Scrum Alliance and Agile Certified Professional (ACP) from PMI have solidified this role.

    The role of the BA on an Agile project has not solidified. BAs are used in a variety of ways or not at all on Agile projects. There have been heated discussions on LinkedIn discussion groups and at conferences about this role. While many organizations use BAs in the product owner role, the fundamental issue of the product owner having to make business decisions makes this problematic. Going against most of the current thinking, we predict that organizations will realize in the next few years that business analysis is essential to Agile projects. Agile projects still have requirements, and there is a need to go from high-level user stories to the detail needed to develop the needed functionality. Organizations will realize that this in-depth analysis cannot be completed during an iteration, that it has to happen just prior to development. This is called grooming the product backlog and is the perfect role for the business analyst.

  1. The BA as management consultant. We predict that in 2012 BAs will actually function as described in the BABOK® Guide, version 2.0. That is, more BAs will “recommend solutions that help the organization achieve its goals.” They will do that in a variety of ways:
    1. Business cases. More organizations will recognize that the BA is in the best position to develop business cases. Although often performed by PMs, this function happens prior to the initiation of a project and is input to project initiation (PMBOK® Guide – Fourth Edition). The PMBOK recognizes that the performing organization (business owner) is accountable for the business case, but it is the BA who is in the best position of developing it.
    2. Ability to Influence without Authority. We are seeing more organizations tell us that they want their BAs to move away from taking customer orders and start using their expertise to recommend solutions. This need correlates to the enthusiasm we have seen around the need to influence without authority.
    3. In her keynote at the BBC conference in Ft. Lauderdale last year, Kathleen Barrett, CEO of IIBA mentioned that one of the key competencies of the enterprise BA is management consulting.
  1. BAs as change agents.We think that BAs will be more involved in change management. At the BBC conference in Ft. Lauderdale last year Kathleen Barret announced a new tag line for IIBA—that business analysis was about changing how organizations change. In other words, BAs will be more involved in change management. Changes might include changes in business processes, job descriptions, reporting structures, software, and more. Here are some of the ways we see this happening:
    1. Enterprise analysis. Before projects are initiated, BAs determine the business need across the enterprise and recommend solutions, which need to include the ways in which organizations will need to change when these solutions are implemented.
    2. Project work. While the identified at the enterprise level are by necessity high-level, the changes resulting from each project will be specific in nature. We predict that BAs will develop better tools for assessing whether or not the organization is ready for the change. We think that they will act as management consultants once the project has been defined to ease the pain associated with implementing the changes associated as with implementing the solution.
    3. Post-project follow-up. We believe that BAs will be called on to monitor the post-implementation changes and continue to consult with the organization on the best way to make the solution work, even when there is some organizational resistance to it.
  1. The virtual environment.Now that it is here, the virtual environment will continue to flourish, even if the economy improves. There are a variety of reasons why organizations will continue to rely on the virtual environment for completing projects, for training, and for webinars to replace live conferences.
    1. Travel budgets. Spurred by a sluggish world economy, many organizations have reduced travel budgets for team meetings, training, and international conferences, relying instead on the virtual environment. Although colocation of teams is ideal and preferred, it is not always possible. More teams communicate and collaborate virtually, more virtual training will occur, and more webinars will take the place of live conferences.
    2. Globalization has made travel impractical. Although face-to-face time, particularly during project initiation, is helpful in building trust, respect, and relationships, it is not possible to be together for all project meetings and/or requirements elicitation interviews and workshops when the team is located across the county or world.
    3. Collaboration tools have made the virtual environment not only possible, but practical. Net meetings, as well as more robust training and webinar tools have supported virtual teams, so that real work can be accomplished. In addition, teams have learned how to build relationships and trust in the virtual environment. Building relationships and trust in a virtual environment is easier and quicker once people accept and feel comfortable with the virtual tools available.
  1.  “The economy, stupid,” a past political slogan said. During a slumping economy, organizations look of ways to maximize efficiencies. Focus turns to business processes and how to improve and manage them. During more prosperous times, interest in business process management tends to wane. We predict that business process management, with an emphasis on eliminating waste in organizations, will continue throughout 2012, even as the economy (hopefully) shows signs of improvement. We also predict that there will be no dominant tools for managing processes and recommend that project professionals doing business process work focus on core concepts and skills and be flexible when it comes to using BPM tools.

Don't forget to leave your comments below.


Elizabeth Larson and Richard Larson are Co-Principals of Watermark Learning, a project management and business analysis training company. They have over 30 years of industry experience each, and have helped thousands of PM and BA practitioners develop new skills.

They have published numerous articles and papers and have co-written two books together on Requirements Management and CBAP Preparation. Both Rich and Elizabeth are CBAP and PMP certified through IIBA and PMI, and are contributors to the BABOK® Guide, Version 2.0 and the PMBOK® Guide – 4th edition. 

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Comments  

 
0 # Dave L. 2012-01-10 03:40
I have worked in small organizations and saw the pitfalls of the combo PM/BA role. It took a few years of convincing and took our biggest client to put their foot down, too, but the split did finally happen. The problem with combining is that, in order to play one of the roles effectively, the individual needs to subvert the other role. So when a key milestone for the BA role is coming up and at risk, the individual needs to focus on that and cannot look at the project holistically. My team got beaten up over that frequently which is why I kept up the pursuit of the separation of the 2 roles. Additionally, the 2 roles require different (though somewhat overlapping) skill-sets and to suggest that a BA can manage a project or vice-versa seriously downplays the importance and challenges of each role - not to say that there aren't those that are fully capable of doing both. Anyhow, I hope you are correct and that the trend of separating the two continues.
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0 # Doug Scott 2012-01-10 06:55
The Larson's knolwedge of business processes and, specifically, BP Management (BPM) is disappointing. BPM was reinvented (from its beginnings as BPR(engineering )) and has grown over the last 6 years. In good times it is used to create or enhance product and service offerings. In bad times it is used to improve efficiencies. The reinvention has mainly been around standards such as BPMN (modeling notation) an OMG standard that most of the 20+ BPMS(ystems) vendors are adopting or have adopted including IBM's Lombardi. BPM has become a major force in productivity improvement and serving customers better through process. The BA has become the evangelist and interface between the business and IT in the use of BPM methods and principals. I do not suggest any tool, but do suggest that BPMN (or a subset - see Bruce Silver's book on the subset to use with end users) be used for modeling processes.
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0 # Richard Larson 2012-01-10 12:13
@Doug, with all due respect, we have worked in process modeling, process improvement, and process management for decades & we’ve seen significant trends in that time. We have seen that business interest in and investment in processes and process management swings with the economy and other factors. We stand by that observation and history backs us up. When we say “tools,” we mean software and not BPMN. We’re well aware of standards like BPMN, and think that BAs and PMs need to know only a portion of the standard to be effective at business analysis and project managemnt. We disagree that BAs are evangelists about BPM. We would say that systems analysts and BPM specialists like you might find in the ABPMP are the main proponents of BPM. If anything, BPM is in part a subset of business analysis and we think that BAs and PMs should be aware of BPM methods and stay flexible when it comes to software tools. we give the same advice when it comes to requirements management and project management tools. They come and go, and the core concepts and skills are what sustains a project professional.
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0 # Julian Sammy 2012-01-10 13:08
Perhaps your article has me in a metaphorical state of mind, but 'grooming the product backlog' had me thinking my dogs - loyal beasts, who respond well to care, love, discipline -- and treats. Also, "scrumerfall" may force me to create a list of 'best words of the year'. What a great portmanteau! (I'd prefer 'Kan-rum' to 'Scrum-ban', but I'm sure that's just me.) When you talk about BAs as management consultants and change agents, I feel pretty good. Combined with personal authority (influence without positional power), you're describing an assertive, practical, courageous professional with the vision of the organization at heart. I know a lot of people who fit this profile -- they tend to end up in positions of authority. I wonder if there is any formula that can guide the 'how' part of this, though. In my experience, most organizations hire for leadership -- they don't look for it in the people they actually have already. In coming years, I suspect that we'll start to see a shift in the language used to describe the role, running in parallel with the other changes you describe.* Phrases like "before projects are initiated..." (5a) presume that projects are the right solution to an organizational need, in much the same way "pre-marital sex" presumes that everyone will marry.** While projects are the norm, they are not the only way to control organizational change. For example, portfolio management isn't project management writ large; it includes a different set of tasks (and many of them are BA tasks). I agree wholeheartedly with most of the ideas and sentiment in this piece -- I'm just identifying a bias that is built into the language we use when we talk about change. Thanks for sharing your insight. --j _ __ * *Disclaimer: I'm an Enterprise Business Analyst for IIBA, as well as an independent BA contractor and blogger. This post contains my opinion and ideas, not those of any of my employers - past, present, or future. ** This example is intentionally inflammatory, to make the point that presumed or common solutions to existing needs are not always the most effective or useful solutions to those needs. Every BA knows this, right up until it's MY opinion! Common practice is common for good reasons, but common isn't the same as 'right' or 'best' or 'only'.
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0 # Elizabeth Larson 2012-01-11 11:57
@Dave, thank you for sharing your experiences and kudos for pushing to separate the roles in your organization. We have heard from many individuals in a variety of organizations that it’s very difficult to do both roles well. While having one person wear both hats on smaller efforts might (and probably should) continue, I do believe issues like the ones you raise will drive a separation on projects of any significant size. Again, thanks!
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0 # Elizabeth Larson 2012-01-11 12:26
@Julian, great comments—thanks ! Ah, yes, I should have explained the Scrum terms I threw out there. Thanks for that gentle, humorous reminder! You ask about an Influence Formula. You may be aware that we have written articles and given presentations on what we have actually called the Influence Formula. Rich and I are currently writing a book of same name that will provide practical tips and tricks for how to do this. Liked your analogy about projects and pre-marital sex. Fair enough. It’s just hard for us to discard our PM hats entirely. Again, thanks for writing your comment and for your insights!
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0 # Colin 2012-01-15 09:49
Elizabeth and Richard: I have read several articles that reference the BABOK when stating that: ‘BAs will recommend solutions that help the organization achieve its goals’. Perhap s, as contributors, you could clarify exactly what this statement means. Does it mean the technical application / solution that will meet the requirements – for example: ‘the Saleforce.com Lead module will be used to capture and maintain information about prospective customers’? Al ternatively does it mean a generic solution – for example, ‘the solution will allow the CSR to enter the name, role, email address, telephone number of callers that make enquiries’? In my experience, it is the Solution Architect that defines the technical solution. As they (should) have the technical knowledge to recommend specific application(s) that are compatible with both the organisation’s current applications and the technology road map
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0 # Elizabeth Larson 2012-01-15 10:38
@Colin, Great question! The “solution” is a business solution, which could be comprised of many pieces including a technical component. Solutions meet the business need (help organizations solve business problems or sieze opportunities). We might recommend solutions within the project domain or at the enterprise level. For example, to help a retail organization that is losing market share remain competitive, a recommended business solution might be expansion to new markets. This solution might include new business processes, new or enhanced software, a change in the organizational structure, new policies and business rules, etc. A related question we often get has to do with the difference between solution (BABOK®Guide) and product (PMBOK® Guide). Within the business domain, the solution and related solution scope encompases everything required to meet the business need. Within the project domain, “solution” and “product” are pretty much equivalent.
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0 # Colin 2012-01-16 10:47
@Elizabeth - that makes sense, thankyou for the clarification.
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0 # Vicki James 2012-01-31 08:01
I have become concerned with an apparent convergence of the PM and BA roles. I do see PMI recognizing the need for BA tasks, but the trend I have noticed is a push for the PM to take this on. Three specific examples include: 1) PMBOK 4th Edition, Section 5.2 - Writing the Requirements - The voice of this task is that it is the PMs responsibility. Initially I assumed they intended the PM has responsibility to ensure the task is completed. The Quality Assurance section speaks to overseeing the processes of QA staff, the Requirements section infers it is a PM task. 2) I attended a recent panel presentation on the future of project management. The message sent was that the trend is focus on greater business value over cost, schedule, and scope. Of the three panelists’ presentations, only one included the role of a BA. However, his discussion focused on the PM determining the business value. 3) A recent blog on PMIs Voices of Project Management blog - http://blogs.pmi.org/blog/voices_on_project_management/2012/01/building-blocks-of-project-wor.html. The writer points to elicitation and communication of project requirements as a PM task. I appreciate Dave L's comments. I am both a PMP and CBAP. I have been in projects where I was the PM, the BA, and both. There are many dangers in wearing both hats. I would add that you lose a great deal of team analysis and input to potential solutions when there is not a division of duties and one person has responsibility for both the project and the solution requirements. The solution lies in a collaboration with understanding of each the PM and BA roles in achieving desired project outcomes and the skill sets involved in achieving those outcomes. The PM and BA need each other to effectively manage a project that brings business value in the organization. I would be interested in PMIs finding with the 2010 study. Even more interesting will be to see changes that result from the findings. Vick i James project-p ro.us @VickiPPS
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0 # Elizabeth Larson 2012-01-31 11:03
@Vicki, I understand your concern. Here’s what I know about PMI and the role of the BA. As an aside, Richard and I were the lead authors on the PMBOK 4th section Collect Requirements. The PMBOK® Guide does not state who is responsible for the process (does the work), but who is accountable (ensures it gets done). That is, the PM needs to ensure requirements are collected. Who does the task is not stated or even implied. In the above article I reference the PM/BA collaboration effort sponsored by both PMI and IIBA. I was honored to be one of the 6 committee members. (+ PM and two sponsors). Three of us represented IIBA and three PMI. One of our conclusions validated the concept that PMs need to ensure that the process of collecting requirements occurs. To conclude that it is a PM “task,” however, is a misinterpretati on. For more on this topic, you can listen to the webinar I did for IIBA last March. http://vimeo.com/21000420. It was recorded and you should be able to listen to it (I just did). You might be interested in the article written for the IIBA Connection. You can click on the link below to take you to the Feb 2011 newsletter and read the article on the PM BA collaboration (Partnering for Success: an IIBA/PMI Joint Collaboration) page. 6 (http://www.iiba.org/imis15/IIBA/News___Events/Newsletters/IIBA_Website/News___Events/Newsletters.aspx?hkey=bfc495a2-8702-4087-954a-d3e0fc8758ef. Finally, we have articles and blogs on this and other topics: www.watermarklearning.com/resources. I hope this helps.And I couldn't agree more--let's hope that we're right about this trend.
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0 # Manav 2012-02-02 00:59
Being an MBA fresher I am struggling to get a BA job. I have learnt that organizations are bullish on cost cutting and optimization though no one is interested in talent development. The post '7 Trends in Business Analysis and Project Management to Watch for in 2012' is very well drafted and I hope to get a BA job soon. :)
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0 # Vicki James 2012-02-14 14:52
Thank you Elizabeth. I'm sorry your response caught up with me so late. Based on what you say here, it appears I have ran into issues because the PMBOK is ambiguous and there have been misinterpretati ons as a result. This is in part due to the tendency to combine PM and BA roles. In some cases this makes sense, but should still be seen as a separate competency. In terestingly, I spoke at a PMI chapter meeting on a different subject (sponsorship) last night. The speaker that preceded me discussed BA tasks as a PM role in finding searching for solutions. It was all great stuff, but again, confusion in roles and responsibilitie s. I just had the thought as typing - the CBAP application is clear on what is business analysis vs. project management by task. I will have to consider how to leverage this in future discussions. I look forward to reading your referenced material.
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0 # yoonho kim 2012-02-26 23:43
My role is originally BA but happend to be a PM at the same time. Since being a PM is my first experience also and I am not matured BA (2years of experience), it's a huge burden to carry out both roles. Specially, the project is about to start its elaboration phase and I have to keep up my PM role and business requirement at the same time. That really breaks my concentration on doing BR. Hope it works out well for me :) yoonho kim from Seoul, KOREA
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0 # Elizabeth Larson 2012-02-27 12:32
@yoonho & others, Thanks so much for writing your experiences! all I can say is I hope your organization realizes the risks of trying to combine the roles of PM and BA! I too hope it works out well for you!
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0 # Donna Luehrman 2012-03-01 06:31
Your take is really interesting. I like and maybe it's just because it's my prejudice that the BA and PM role be separate. They are two very different disciplines that must work together well but it's difficult at best to fulfill both roles. Particularly on a mid to large project. BA and Testing should be separate as well. I have read elsewhere that the 2012 trend is to combine the BA and PM role which made me shudder. I had hoped we were getting past that paradigm. So it's interesting that you have a different view on the situation. Thank you both for your contributions to the BA field and discipline!
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