Tag: Best Practices

Building the Business Case

Written by Cynthia Low on April 21, 2009. Posted in Articles.

What Is a Business Case?

Business cases are arguments for or against making a specific decision based on economic considerations. They are tools for decision-making. A business case describes the economic consequences of a business decision and makes a recommendation.

An Issue of Economics

Business cases are focused on financial issues. The term “case” refers to an argument. The term business implies that the considerations are economic rather than something like legal or moral. The arguments for or against a decision revolve around cash flow projections. These projections model (forecast) the financial results associated with a recommended action or investment.

In order to be convincing, the assumptions, rationale, and data used to make the cash flow projections (forecasts) must be fully explained and be believable by the target audience. Economic impact is measured using financial metrics. The metrics that are used differ between business cases. The core consideration is discounted cash flows which are used to determine payback period, net present value, and internal rate of return.

Building a Case

One can think of business cases as being similar to court cases. The objective is to present information so as to create a convincing and compelling case for the recommendation that follows. Like lawyers presenting a case in a courtroom, authors of business cases have tremendous flexibility in how information is presented. As with legal cases, business cases must tell a story that demonstrates clear logic, supported by facts, evidence, and sound reasoning.

Ingredients of a Business Case

Well-crafted business cases have a number of essential ingredients. Authors have flexibility in how these ingredients are presented, but must ensure that each broad category of information listed below is included. The more effectively each of these subject is addressed, the better the business case.

Title page
Forecasts
Methods
Executive summary
Conclusions
Assumptions
Introduction
Recommendations
Sensitivity analysis
Disclaimer
Reasoning
Risk analysis
Metrics used
Actions and next steps
Appendices

Title Page

The title must be descriptive. It should identify the nature of the analysis and the decision under consideration. Subtitles are meant to add clarity to the main title. They explain the context of the decision in terms of dates, data, or other considerations. The title page must include the authors, their qualifications and the distribution list. Be as specific as possible. Include titles and names of committees and chairpersons, or even members of the committee. Anyone picking up a business case should understand who the intended audience is.

A business case should never be anonymous. Receiving an anonymous business case would be like receiving an anonymous stock tip: there is no way to judge its validity. The credibility of a business case is completely dependent on the credibility of the author.

Dates

A lot of time-related information is included in a business case. Data goes stale. In order for the audience to understand the relevance of a business case, it must include:

The date of original completion (when analysis ended)
The latest revision date

Within the document, be sure to include reference dates on data used in the analysis. Sales patterns that are five years out of date may not be considered relevant to the reader, even though the author chose to include them.

Executive Summary

The executive summary is what most people read first and is the only thing that many people will read. The executive summary tells readers whether the information in the report is worth their time. It deserves careful crafting.

The executive summary gives the essence of a business case in a few terse sentences. It serves as a proposition (recommendation to act) that is supported, or justified, by the contents of the business case.

The executive summary is a summary of the report. It tells the reader the document’s purpose: what will be proposed, what information is presented, and what action is expected from the reader. And all this is, of course, from the perspective of the author. The executive summary should include both a verbal description and numerical information summarizing high level metrics (return on investment statistics) that support the recommendation. Although an executive summary appears first, you always write it last, after you know which recommendation the analysis supports.

Introduction

Business cases must begin by being put in context. It is necessary to explicitly describe what the case is about and why it is being undertaken.

The introduction must include a reference to the subject and purpose of the business case, as well as a brief background. After reading the introduction, the audience should understand the scope and objectives behind the decision under discussion. The subject or purpose of a business case must be presented in terms of business objectives, that is, with reference to business outcomes that follow from the decision being proposed.

Disclaimer

Disclaimers are a little bit like confessions. The longer you delay them, the less valuable they are. If a business case is being presented to an audience outside your company, then a disclaimer of some kind is a good idea. Use wording recommended by a lawyer. Include the disclaimer near the beginning of the business case, on its own page. Do not hide it.

Metrics Used

Explain early in the presentation which metrics will be used to judge results, and why. If, for example, the deciding organization’s hurdle rate for investment is an internal rate of return of 25 percent or a 3-year payback period, it is important to state this at the outset. Let the readers know why the analysis is focused toward these metrics.

Forecasts

The executive summary warns the reader of what to expect. The forecasts section outlines the principal data used to come to the recommendation given. This is where many readers start their reading; it is where the justification for a recommendation is revealed.

Cash Flow Analysis

The heart of a business case is the cash flow analysis. This analysis models the projected inflows and outflows of benefits, which are quantified in terms of dollar values.

Cash flow projections are created for each scenario under discussion. It is not necessary to include reams of data. Include a chart only for the most likely scenarios; include only the summary statistics for the remainder of your analysis.

When preparing a cash flow analysis, it is necessary to provide a reference point. The “business as usual” or “no decision” scenario is used as a base case. Cash flows in other scenarios are then compared to the base case.

Financial Metrics

Cash flow analyses lead to a series of net cash flows. These net cash flows are then used to determine a variety of metrics that relate to performance. It is through these measures that it is possible for readers to judge the merits of each scenario relative to standards established by the company, or to the results of other investment decisions being considered.

Non-Financial Results

Business cases are all about numbers. Any benefits that cannot be quantified in dollar terms are likely to be ignored or undervalued. It is best to assign a valuation to “soft benefits.” When that is not possible, these benefits must be included by way of descriptions. The descriptions should be in the context of tangible, business-related impacts that can be reasonably expected to occur. Non-financial benefits should be discussed at length in a section labeled as such and should be referred to in the executive summary and conclusions so as not to be overlooked.

Conclusions and Recommendations

A conclusions section is included when you are reporting on findings, but no specific follow-up action is required. Recommendations are presented when the reader is being asked to agree to or approve some form of action.

After reading the conclusions, the reader should understand your interpretation of the data and the significance of the results. After reading the recommendations, the reader should understand the plan of action proposed, why it is proposed, the benefits, and the specific actions required of the reader.

Make the recommendations as clear and concise as possible. You are asking the reader to do something; make sure there is no ambiguity about what the request involves.

In complex reports, it may be appropriate to have separate sections for conclusions and recommendations.

Reasoning

The reasoning section immediately follows the recommendations and provides justifications for the recommendations. This is the section that explains the logic behind your recommendations or conclusions. It details the separation between facts and reasonable assumptions. It might also be referred to as “rationale” or “key findings.”

The reasoning section is the persuasive part of a report. It explains in simple terms why the author is right. There should be three to five key points. More than five key points is too many, and fewer than three suggests a degree of uncertainty on your part. Each point needs to be a narrowly focused aspect of your rationale, and it should comprise a sentence or two.

Organize your points in descending order, with the most significant first. Do not smother your message in numbers. Simple graphics (charts and tables) are helpful, but complexity is not. Summarize everything and put the data and complex information in appendices that the reader can refer to if desired. All material appended to a report should be referred to, at least once, within the document. If information has not been referred to, it is not needed to support the body of the report and can be eliminated.

Actions and Next Steps

In the action section, steps are outlined that will be followed if the plan or recommendation in the report is approved. The reader has been asked to agree to some activity, and this section explains exactly what the immediate response will be. Action sections are typically written in point form, in order of sequence. Each activity, or step to be taken, is described in terms of timing, people, and method.

Data and Approach

Readers must know how data was developed. If data has been extracted from another source, this must be explained. When data has been generated by assumptions, explain how and why. Be especially clear in describing the methods used to assign values to soft benefits. Let the reader know your reasoning.

Additional Information

Sometimes you just need to include more information or explanations than can be included in the body of the report. The “additional information” section is the place to include this extra information. The beauty of the additional information section is that it allows the author to include less detail in earlier sections of a report. If a recommendation does not make sense, and the reasoning section does not adequately

explain it, then the additional information section will. It is all part of the pyramid of information – the most important and briefest at the top with more and more detail as you move toward the bottom of the pyramid.

Scope

The boundaries of analysis should be clearly stated. If the analysis considers data from only one operation, or one segment of a complex organization, this needs to be explained. There are always limits to the data included in an analysis. Explain what the boundaries are. What information was included, what was not, and why?

Assumptions

With business cases, numbers (metrics) tell the story. How the numbers were derived is critical to the credibility and persuasiveness of the case presented. In the assumptions and approach section, readers are given an unambiguous explanation of the background of the numbers. When making predictions on such things as sales patterns and expense streams, it is best to follow accepted practice. If other business cases have been approved by the same decision-makers, then use the same type of assumption when making your cash flow projections. Simplifications are almost always necessary. Make them logical and their implications apparent.

Soft Benefits

Business cases are all about numbers. However, in many situations the benefits of a decision are not limited to easily-measured financial gains. In the case of soft benefits, it is necessary to assign values to the soft benefits and include a detailed explanation of the methods and reasoning employed.

Valuation of intangibles is difficult at the best of times. Before including intangible valuations in a business case, get agreement with the readers. Find out from the audience what they consider to be an acceptable method for assigning values. Doing this first can save a lot of time.

Sensitivity Analysis

Business case scenarios are financial stories. They are like a movie that has a number of different endings. The business case creates a financial model that tells a story (illustrated by a cash flow forecast). Scenarios are different endings (outcomes). Each scenario represents a particular set of assumptions and provides a prediction of the impact of those assumptions. The tendency of authors is to include too many scenarios. Readers are much less familiar with the subject matter than the author and cannot digest more than three or four variations. Choose the most illustrative.

A common mistake made in business cases is to omit the “business as usual” scenario.

This is the baseline case that serves as a reference for doing nothing. It is an important part of putting the implications of various decisions into perspective.

Risk Analysis

Risk analysis is all about “what if.” Projections are used to predict the financial implications of various decisions based on assumptions of what the outcomes will be. What if those assumptions are not correct? What is the worst case scenario? What is the best-case scenario? How likely are the projections to be correct?

Within a business case, only a few separate scenarios can be discussed. However, in deciding which to present the author will have studied dozens of scenarios as part of the process of sensitivity analysis. In sensitivity analysis, variables are adjusted up and down to simulate the effect of changes in assumptions for such things as sales and costs of goods sold. The effect of adjusting one variable at a time is related to financial

results. Through these simulations, the analyst is able to determine what the major factors are in relation to the financial results. For instance, the cost of capital goods might increase by 100 percent from predicted and have only a one-percent effect on the rate of return. However, a five-percent increase in labor costs might have a 20-percent effect on the rate of return. Clearly, labor costs are a major factor, while capital goods are not. All the major factors deserve special attention. The discussion of risk centers on an analysis of how robust the predictions are for those major factors that have the greatest potential to affect overall success.

Risk Discussion

Every proposal carries risk. A business document is not complete without a discussion of uncertainties. The obvious risks do not need to be addressed, such as the loss of the whole investment, should the entire plan fail. Instead, include only a limited number of significant risks. Include those that may have a significant impact, have a high degree of probability, or are unusual and may not be immediately obvious to the reader. When describing the risks, it is important to explain how the risk has been quantified (given a sense of magnitude) and what measures are possible to eliminate the risk.

Significant risks should be discussed in terms of their impact on the project. What is the worst-case scenario if the risk comes to fruition? What is the worst that might happen?

The worst-case scenario is the downside. It is considered unlikely that these events will occur, but not inconceivable. They are presumed to have less than a 10 percent chance of occurring. The best case scenario is the upside. This is the best that can be hoped for. It is presumed to have a 10 percent chance of occurring: unlikely, but possible. The most likely event is the reference point that the author uses in general discussion. It is the best forecast that the author can offer about what will occur. The most likely scenario is presumed to have a 50 percent probability of occurring.

Appendices

Supporting data and analyses that have led to the recommendation or conclusion are made available through appendices. Do not include materials just to make a report look more significant. Only information that has been referred to within the main report should be included in the appendices. Each type of datum should be separated and labeled within the appendices. Think of sections in the appendices as chapters of background information. Arrange them in a comprehensive order that relates to the body of the report.

Presentation Style

Reports are written in terse business style. Reports should use short sentences, small words, and tiny paragraphs. Many authors get bogged down writing reports because they try to link sections and paragraphs with descriptive prose. Do not bother. It is perfectly acceptable to use point form anywhere and everywhere. Business reports are not poems.

Another common mistake made by authors of reports is to write one featureless paragraph after another. No one likes to read page after page of black text. Mix it up.

Every page should have at least three headings. Use bulleted lists instead of paragraphs to make the material more visually interesting. Be consistent with heading styles. Make sure that the same pattern is maintained throughout the document.

Writing Style

Be realistic, but sound optimistic. An upbeat report is much more pleasant to read than a deadpan treatise. Use the active voice. It reads better. (A passive voice version of the previous paragraph is: An active voice is the preferred style. Many people prefer to read it). Try to be gender-neutral. Do not assume that the audience is male, female, or indifferent to issues of sexual nuance.

As a matter of practicality, be sure to number pages and to include the title and author’s name on every page by way of headers or footers. If the report is dropped, or taken apart by the reader, make sure it can easily be put back together.

What Goes Wrong?

There are two ways that business cases can go wrong. One is for them not to be funded.

The other is for a case to be funded when it should not have been. Both are bad news.

The key to quality is practice. Companies with a long history of preparing and appraising investment proposals have a far better track record than novice investors.

Experience provides standards of accepted practices. It is not that these practices necessarily represent the ideal approach to preparing business cases, but rather that they allow separate cases to be judged against each other. Standards allow an organization to gain experience. Without standards, each business case is an experiment in creative writing. With standards, business cases can

be compared side by side. A problem that caused the failure of one investment can then be used to highlight potential problems in another proposed investment.

Experience teaches investors to be wary of certain kinds of assumptions. Standards in the analysis of business cases allow the implications of those assumptions to be highlighted.

Conclusion

To be effective, business cases must meet the decision-making needs of the audience for which they are intended. There are common ingredients in all business cases; however, the weight and emphasis of the various components depends on the target audience and their particular preferences.

If you do not know what the target audience wants or needs to make a decision, then ask them. Guessing can waste a lot of time. State your arguments in the context of metrics and considerations that the audience considers important. The core of all business cases is net cash flows and the statistics related to them.

Emphasize Economics.

You may feel that network dependability is a critical consideration but the audience may be concerned only about market share. If you cannot explain your concerns in relationship to what the decision-makers consider important (such as how network dependability affects market share), your business case will not be approved.

Remember that a business case is an argument based on economics. Plan what argument you are going to make and then support it with data.

Write in a Pyramid

Business writing does not follow the rules of literary writing. Do not save anything for the end. Write in a pyramid with the most important information (concisely presented) first. After that comes all the supporting details in descending order and increasing volume.

A well-written business case makes the best use of the reader’s time by providing targeted information and by making that information easy to find. Good luck!

Brian Egan is the President and owner of a giftware manufacturing company. The Book Box Company Inc is the world’s largest manufacturer of hollow-book gift products.

Brian has graduate degrees in Oceanography (MSc) and Finance (MBA) as well as PMP certification. In addition to professional development training, Brian provides project management services to companies wanting to improve their performance by incorporating the best of management science methodologies into their operations.

Brian lives with his wife and four children in rural British Columbia. Global Knowledge is the worldwide leader in IT and business training. More than 700 courses span foundational and specialized training and certifications. For more information, visit www.globalknowledge.com

Glossary

Disclaimer: An explanation about the limitations to information contained in a document; a warning that a business case involves an unpredictable forecast of future outcomes

Financial metrics: Performance measure used to determine the costs and benefits of an investment option

Non-financial results: Also known as soft benefits; benefits gained from an investment that cannot be put into strictly financial terms, such as employee satisfaction

Assumptions: Simplifications used to help predict future outcomes of a business investment; include such statements as “labor rates will remain effectively unchanged throughout the forecast period”

Risk analysis: A review of what might prevent the predicted outcome for an investment from coming true

Combining Productivity with Creativity

Written by John Dean on March 31, 2009. Posted in Articles.

If I may state the obvious, high productivity is good; low productivity is bad. That applies both to individuals and to projects. A number of factors affect individual productivity. Internal factors such as a person’s basic sense of self worth and the amount of discipline they bring to the workplace directly affect their output. Workplace environment and their supervisor’s management style can directly affect personal productivity.

The perfect business analyst would appear at work, immediately put their head down, and come up for air eight hours later, having generated prodigious amounts of high quality output. The reality is that most people only spend a fraction of their work day actually doing productive work. It is hard to maintain the needed focus, and people find many creative, and often unconscious, ways to avoid it. There are techniques that individuals can apply to significantly reduce this wasted time. The business of bringing systems into existence is by its very nature creative. But most of the time, IT professionals tend to behave like plodders. We all get creative inspirations, but few of us recognize or act on them. Those who do so regularly are seen as creative geniuses.

A manager’s personal style has a direct impact on the productivity of their staff. While I think a supportive style works better that an aggressive one, there are plenty of the latter types around. Unfortunately, we are programmed to respond to fear and intimidation, so it can work. But when an aggressive manager’s behavior turns outright abusive, disaster will result. I once had to rescue a contract where the program manager had driven off every single first and second level manager and senior analyst on the contract within six months of taking control.

The ability of a project manager to effectively utilize the capabilities of the staff assigned to them can have a huge impact on the quantity, quality and timeliness of the work products of the project team as a whole. In some respects this is just Management 101. The key to real success is a combination of deep knowledge of what team members can do, combined with a great deal of flexibility in making and adjusting work assignments, including a willingness to jump outside of normal schedule when roadblocks are encountered. In addition, better results can be achieved if people are used in multiple roles.

My personal favorite is to use the same business analyst(s) who have elicited requirements to do system testing. Who else is better qualified to know whether a system has met its objectives? Quite a few immigrants come to America every year to work in the IT industry. These individuals tend to be hard workers, and can be very productive, but linguistic and cultural differences can be barriers to achieving that productivity. A supportive manager who is sensitive to these differences can work with these individuals to overcome these differences and realize their full potential.

John L. Dean is a seasoned IT professional with many years experience, including systems engineering, systems analysis, requirements analysis, systems architecture and design, programming, quality assurance, testing, IV&V, and system acquisition, equally split between technical and management. He has worked both the contractor and government sides of the fence, has been an employee of large (IBM, CSC, Booz-Allen, MITRE, ACS) as well as very small companies, and is currently an independent consultant. He has a Masters degree in Operations Research from Clemson University. You can reach him at [email protected].

Making Better Business Decisions

Written by Richard Lannon on March 24, 2009. Posted in Articles.

Decision-making errors exist within all levels of organizations. Some common examples include:

focusing on the symptoms instead of on the problem;
having no clear picture of the desired outcome;
becoming fixated on only one option;
making decisions that do not align with the overall goals of the organization;
missing opportunities to set decision criteria; and
failing to evaluate enacted decisions.

It is important to recognize and accept (without blame or shame) that mistakes occur. Then it is time to move on—to apply a process that will enable successful decision making.

Here are eight common steps that can be taken to aid in making better business decisions.

Define the Problem: Get clarity on the actual business problem by examining the symptoms and gathering input from all stakeholders. State the problem clearly in business terms. Avoid technical jargon.

Know the Strategic Agenda: Find out what is on the strategic agenda of the organization. Ensure that the business problem outlined aligns with the direction of the organization.

Identify the Desired Outcome: Know exactly what you want to see happen. Know your goals and objectives before you consider the route to get there. Consider aligning with the strategic, tactical and operational levels of the organization.

Establish the Solution Domain: Consider ideas that might work within the Solution Domain, that is, within the goals, objectives, rules and constraints of the organization. The Solution Domain establishes the context for which alternative solutions can be considered.

Determine Alternative Solutions: Brainstorm ideas. Have an open session where all ideas are tossed into the ring—no judgment. Refrain from implementation thinking. Focus on solution alternatives. Choose a minimum of three possible solutions for one business problem.

Establish the Evaluation Criteria: Become clear on what is important by creating a list of criteria. Define each of these criteria. Establish the decision-making approach. Ensure that the approach fits within the context of the organization.

Go for It: Choose one solution. Enact it. Allow time for it to work.

Evaluate. Investigate to decide if the solution has been successful. If a satisfactory result has not been achieved, revisit and rethink the solution. Make adjustments as necessary.

Decision making is a challenge, especially in complex organizational environments. A clearly-defined, consistently-applied approach—one that spans all organizational lines—is the key to making better business decisions.

Richard A. Lannon partners with business and technology organizations to help clarify their goals and objectives and train their leadership and professionals on how to achieve them. He provides the blueprint for you and your organization to be SET (structured, engaged and trained). Richard Lannon can be reached at [email protected]; 403-476-8853 or visit www.braveworld.ca 3/09

Top Ten Tips for Tackling the CBAP Exam

Written by Cynthia Low on March 17, 2009. Posted in Articles.

It’s no surprise that the certification of business analysts is more sought after today than ever before. Worldwide the demand for qualified practitioners, and the ability for them to quickly demonstrate their capabilities in requirements management and development, continues to grow.

Growing almost as quickly is the number of people taking the Certified Business Analysis ProfessionalTM (CBAP®) exam. The 150-question exam is based on the International Institute of Business Analysts’ (IIBA®) Business Analysis Body of Knowledge® (BABOK®). This constantly evolving business analyst’s handbook reflects the most current, generally accepted business practices, and is one of the best references in preparing for the challenging multiple-choice exam.

So what does this mean to you? For those looking to take their careers forward, or to give themselves an advantage over the competition in the job market, the CBAP certification can mean an advanced career path, documented professional expertise and a positive impact on your organization. The exam is as challenging as the certification is valuable, but the time you take to prepare, from collecting and submitting your extensive application materials, is well worthwhile.

As with any standardized testing, there are literally hundreds of sources for information, tips and strategies. From that mountain of information, here are 10 widely recognized best practices for applying for, preparing for and taking the CBAP exam.

Take your time, part 1. Even applying to sit for the exam will take a significant amount of time. Most experts and CBAPs agree that you should give yourself at least eight hours total to complete the application. Yes, you read that right. Eight total hours. (When you read #2 below, you’ll understand why.)

Read each question and section carefully. Answer to the best of your ability and take the time to really focus on the application.

To further minimize omissions and errors – or the odds of having your application rejected – always use the IIBA-supplied templates, available with the application at http://www.theiiba.org/ under “get certified.”
Know the requirements and fees. To successfully apply for the exam, you must demonstrate your professional experience, specifically in indentifying business needs and determining the best solutions for business problems. The completed application must meet the following five requirements:
1. Work Experience: 7,500 hours of verifiable, hands-on business analysis work over the 10 years preceding your exam application.
2. Knowledge Areas: Demonstrable experience and expertise in at least four of the six knowledge areas: Enterprise Analysis, Requirements Planning and Management, Requirements Elicitation, Requirements Analysis and Documentation, Requirements Communication, Solution Assessment and Validation, and Business Analysis Fundamentals.
3. Education: High school or equivalent
4. Professional Development: 21 hours of verifiable coursework in the past four years, directly related to business analysis.
5. References: Two references from a career manager, client (internal or external) or CBAP are required. These references must indicate that you are a suitable candidate for the CBAP® certification.
  
  Next, consider applying for IIBA membership before applying for the exam. As you will see below, the fee schedule for the exam varies, depending on whether or not you are an IIBA member, with savings of $125 for members (exactly the amount of the application fee). Consider the idea that you will probably join IIBA after gaining your certification- so why not essentially apply for “free?”
  
  Fees:

IIBA® membership fee:	$95 USD	Paid annually.
Application Fee	$125 USD	This fee pays for the processing and administration of your application. It is non-refundable.
Exam Fee – for IIBA®Members	$325 USD	The fee pays for the initial exam sitting and will NOT be reimbursed if you do not pass the exam.
Exam Fee – for non-IIBA® Members	$450 USD	The fee pays for the initial exam sitting and will NOT be reimbursed if you do not pass the exam.

Please note: You can submit both the application and the exam fees with your application. If your application is declined, you will be reimbursed the exam fee.

Know your study style. Once you’ve applied, you can then expect to devote a substantial amount of your time and attention to preparation. Experts estimate total “ideal” study time at anywhere from six weeks to six months.

Before jumping in, have a clear understanding of how you learn and retain information. This point can’t be stressed enough. Quite simply, what many people forget, especially if they haven’t taken an examination in some time, is that not every study method works for every person.

For example, you may be a visual learner, or perhaps you remember spoken words more readily. Do you do better taking classes and interacting with others or working through study guides on your own? Tailoring your preparation to your style will save you hours – if not days – of frustration and increase your confidence on exam day.
Know your resources. With the vast number of available study methods and resources, narrow your choices by creating a list of study resources and be very selective, keeping in mind your personal style (#3 above). CBAP study guides featuring practice examinations are available, as well as business analysis courses to help you prepare for the exam, maintain your certification, and build upon your existing skills.

Regardless of the preparation regimen you ultimately choose, it’s wise to contact your local IIBA chapter. Many chapters offer study groups, or you can leverage the knowledge of peers who have already achieved their CBAP® certification.
Get a flash of brilliance. Even in this age of palm-sized computers and high-speed mobile Internet, one popular preparation method is decidedly “low-tech.” Many CBAPs laud flash cards as study tools for exam terms and definitions of each knowledge area – so much so that the study technique is actually featured in many preparation courses. Even if you’ve chosen not to take a formal course, consider making some flash cards for yourself. They’re an easy, efficient way to study anywhere.
Demonstrate intimate knowledge. Memorizing terms and knowing the BABOK is just one part of passing the CBAP exam. Since the exam uses situational scenarios throughout, understanding of language, usage and context for all six knowledge areas is also very important. Success depends on your ability to align your business analysis experience with the exam questions.
Know your activities. Next, memorize the tasks and activities within each knowledge area. If you aren’t already, become familiar with the input and output of each activity across all knowledge areas. Knowing what you’re supposed to get out of a solution will increase your confidence as you work your way through the examination.
You can get a feel for activities by creating your own small models for each knowledge area or by using the models included in many of the available classes or guides.
Know your modeling. Usage, process, flow, data and behavior models are all areas tested on the exam. Since the exam focuses on practical, situation-based questions, it’s very important to devote significant time to practicing modeling and more importantly, becoming familiar with when to apply each.
Practice, Practice, Practice. All the studying in the world is for naught if you’re surprised when you sit down for the actual exam. Whatever your preparation method, be sure to develop a plan for practicing with CBAP-format questions or full-blown practice examinations. Set aside three hours, find a quiet spot, and work your way through. After a few practice exams, and knowing exactly what to expect, the real one won’t seem so intimidating.
Take your time, part 2. The night before the exam, don’t try to cram or re-read the BABOK. Just get a good night’s rest – it is a three-hour-long, taxing test, and being focused and alert is the best favor you can do for yourself.

On the day of the exam, dress comfortably and bring paper and pencil to work out your answers. Most testing facilities provide these, but it never hurts to be prepared.

If you’ve memorized items, you are allowed to write on the exam booklet, so get them written down before you begin – it will give you one less thing to think about.

Finally, put everything you’ve learned to use and pace yourself. You’re not scored on how quickly you complete the exam and rushing leads to costly mistakes. If you do not pass the exam, you must wait three months before you are allowed to re-take it.

Scoring the exam takes up to 30 days and results will include knowledge area breakdowns for those who have not passed.

Without proper preparation, the CBAP examination can be intimidating. However, if you solidify your skills and knowledge and take advantage of your experience as a Business Analysis professional, you’ll have your certification sooner than you think.

Good luck.

Glenn R. Brûlé, Executive Director, Client Solutions, ESI International, is author of CBAP Exam: Practice Test and Study Guide, First Edition. He has more than 18 years experience in many facets of business, including project management, business analysis, software design and facilitation. At ESI International, he is responsible for supporting a global team of business consultants working with Fortune 1000 organizations. These engagements focus on understanding, diagnosing and providing workable business solutions to complex problems across various industries. Glenn is a Member of the Board of Directors and Vice President of Chapters of the International Institute of Business Analysis (IIBA). For more information, visit http://www.esi-intl.com/.

Seven Tips for Managing Your Online Reputation

Written by Cynthia Low on February 10, 2009. Posted in Articles.

In a competitive job market, a polished professional reputation can make or break someone’s chances of landing a coveted position. And since the word google became a verb, that reputation includes information that can be found online. This is particularly true for IT professionals who are evaluated on their technical savvy.

As a growing number of employers search the Internet for information about job seekers, it’s become more important for applicants to actively monitor and maintain their professional reputations online. The current economic environment has made hiring managers increasingly cautious, and any information that raises a red flag can quickly take candidates out of consideration for a job.

Following are seven practical tips to help you manage your digital imprint

Take stock. Discover what information about you — if any — already is online by performing a search using popular search engines. If you discover an item that you wouldn’t want hiring managers to see, ask the person who posted the information or website administrator to remove it. Similarly, untag any inappropriate photos of yourself.
Activate privacy settings. If you belong to social networking sites or have a personal blog, adjust your privacy settings so you control who has access.
Exercise discretion. When interacting online, be selective about which venues you participate in and who you allow into your personal and professional networks. If you regularly contribute to blogs or forums, give thought as to how your statements may be interpreted by those outside your community. Consider using a pseudonym if you wouldn’t want a potential employer to see your posts. You can use BlogPulse or Technorati to track online conversations about you or your sites.
Network wisely. When using professional networking sites such as LinkedIn to look for job opportunities, behave graciously with everyone you encounter and follow posted protocols. Thank anyone who assists you, and be sure to return the favor when possible.
Stack the deck. Business information websites such as ZoomInfo allow users to post information about themselves, so consider including details about your professional involvement and qualifications on these types of forums.
Share your insights. Posting useful advice and commentary on industry forums and authoring online articles in your area of expertise can add to your credibility.
Monitor the conversation. Set alerts using Google or other tracking services under your name so you receive an e-mail notification every time something new is said about you online.

Professionals should always post prudently — not just when they’re looking for work. The business world is more transparent than ever, which means people need to be aware that what they say and do online can have both positive and negative consequences.

Dave Wilmer is Executive Director of Robert Half Technology, a leading provider of information technology professionals. Robert Half Technology offers online job search services at www.rht.com. For additional tips on conducting an online job search, download a free copy of Search Smarts: Best Practices for Conducting an Online Job Search at http://www.rhi.com/onlinejobsearch.