CEB Applications Leadership Council. Building an Effective Business Analyst Community

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1 CEB Applications Leadership Council Building an Effective Business Analyst Community

2 CEB Applications Leadership Council Content Publishing Solutions General Manager Warren Thune Executive Director Shvetank Shah Managing Directors Jaime Capella David Kingston Practice Manager Mark Tonsetic Project Manager John Hillery Consultant Andrea Moreland Senior Analyst Pallavi Goel Senior Directors Miles Gibson Kristin Sherwood Alex Stille Directors Christiane Groth Tim Macintyre Candice Kenney Weck Associate Directors Karolina Laskowska Alicia Mullery Quantitative Analysis Group Emily Byers Harsh Gupta Petya Kehayova Marina Murray Rumki Saha Print Designer Supriya Mer Dhasmana Contributing Designers Kunal Anand Samira Haksar Editor Nidhi Vikram Choudhury CONFIDENTIALITY AND INTELLECTUAL PROPERTY These materials have been prepared by The Corporate Executive Board Company and its affiliates (CEB) for the exclusive and individual use of our member companies. These materials contain valuable confidential and proprietary information belonging to CEB, and they may not be shared with any third party (including independent contractors and consultants) without the prior approval of CEB. CEB retains any and all intellectual property rights in these materials and requires retention of the copyright mark on all pages reproduced. LEGAL CAVEAT CEB is not able to guarantee the accuracy of the information or analysis contained in these materials. Furthermore, CEB is not engaged in rendering legal, accounting, or any other professional services. CEB specifically disclaims liability for any damages, claims, or losses that may arise from a) any errors or omissions in these materials, whether caused by CEB or its sources, or b) reliance upon any recommendation made by CEB. AEC SYN

3 TABLE OF CONTENTS Executive Summary iv Taking the BA Effectiveness Diagnostic vi Additional CEB Support for BA Community Development vii OVERVIEW: THE CASE FOR A BUSINESS ANALYST COMMUNITY 1 1. DEFINING THE BA ROLE 7 2. HIRING BAs BUILDING A COMMUNITY CULTURE RESOURCING AND TEAM MANAGEMENT 33 APPENDIX 43 AEC SYN

4 EXECUTIVE SUMMARY Business analysts (BAs) in nearly 60% of organizations report they lack a collaborative community to support them in their critical role and enable success. Fewer than one-third have formal opportunities or channels to share best practices or participate in training, leaving them in silos and struggling to grow the competencies required for new world projects such as mobile or analytics. Last year, a confluence of business and IT changes pushed the BA role into the spotlight. We advised numerous organizations on this shift, helped clarify the role, and defined what drives BA effectiveness. For many BA leaders, the next step is to invest in creating a stronger BA culture and community. Why does it matter? Our dataset of BAs reveals that a collaborative environment fosters BA effectiveness more than support for individual performance such as rewards or incentives. This finding reinforces a broader theme we re seeing: high-performance results from network performance the ability to inflect the performance of others. The BA Effectiveness Diagnostic CEB developed the BA Effectiveness Diagnostic on nine core competencies that distinguish a BA role. By surveying over 700 BAs from large enterprises, we identified the factors that drive high performance. We have identified four ways to improve the culture and instill a sense of community across BAs. 1. Clearly define the role on nine competencies. The lack of a common understanding of the role impedes the development of a BA community. The average BA in our dataset has five years of experience, but 20% have one year or less. Although organizations have established BA roles, BAs are often distributed across business and IT. Not surprisingly, newer BAs consistently misunderstand their role. We have identified nine core competencies that present the basis for a development plan to truly differentiate BA effectiveness. 2. Establish hiring criteria for BAs that reflect the skills and competencies critical to success in the BA role. Applications groups struggle to understand who is a good fit for the BA role, particularly when the role involves a broader range of responsibilities and candidates apply from a variety of backgrounds. Organizations need to redefine their hiring criteria based on the skills, qualities, and experience that truly matter in determining future success as a BA. 3. Build a community culture that enables BAs to learn from managers and one another. BAs who work in a team-oriented and collaborative work environment are 76% more effective than BAs who don t. But few Application organizations capture synergies across BA groups and promote a culture of collaboration and peer-to-peer learning. Allowing BAs to build and personalize virtual networks, and providing opportunities for professional development across the talent lifecycle, can help establish a strong culture of collaboration. 4. Manage and develop BAs who can respond efficiently and effectively to diverse portfolio needs. Few, if any, individuals can meet all the demands of business sponsors on all the new project types moving into the portfolio. Many BAs are already playing specialized roles, but few organizations are focused on developing such opportunities. Identify specializations to narrow BAs development focus and efficiently scale work to the changing portfolio. iv

5 WHAT DEFINES AN EFFECTIVE BA COMMUNITY? An effective BA community is an active network that provides opportunities and support to grow BA competencies. Effective BA communities create the following: A common understanding of the role and responsibilities p. 7 Clear criteria for identifying individuals fit for the BA role p. 11 Development of BAs through knowledge sharing, training, and coaching p. 21 Career development opportunities p. 33 v

6 Additional resources are available through your organization s membership with the CEB Applications Leadership Council to further support BA community development initiatives. ADDITIONAL CEB SUPPORT FOR BA COMMUNITY DEVELOPMENT Implementation Resources Tools and Templates Benchmarks Training Optimizing the Role of the Business Analyst Business Analyst s Handbook Business Analyst Effectiveness Diagnostic Business Analyst Learning Series Business Analyst Skills and Training Business Analyst Competency Model vii

7 Overview: The Case for a Business Analyst Community Building an Effective Business Analyst Community 1

8 BAs are distributed across both IT and business units and don t feel that they are a part of a single community. Within IT, BAs may be distributed across Applications and PMO organizations. BAs ARE OFTEN DISTRIBUTED AND LACK A STRONG COMMUNITY CULTURE Prevalence of BA Role Percentage of Organizations 39% BAs in IT and Business Units 24% Do Not Employ BAs 37% BAs Only in IT n = 185. Source: CEB, Applications Budget Outlook, Does your organization have a strong community or BA culture? Percentage of Respondents 43% Yes 57% No Community Culture n = 49 BAs. Source: CEB, BA Learning Series, OVERVIEW DEFINING THE BA ROLE HIRING BAs ESTABLISHING THE BA COMMUNITY RESOURCING AND TEAM MANAGEMENT Building an Effective Business Analyst Community 2

9 Although organizations provide centralized resources with tools and templates for some BA activities, a majority lack broader collaboration opportunities. FEW OPPORTUNITIES TO COLLABORATE Does your organization provide centralized resources for BAs? Percentage of Respondents 59% Yes 41% No n = 49 BAs. Source: CEB, BA Learning Series, Missing Collaboration Opportunities Percentage of Respondents 14% Yes 27% Yes 33% Yes 37% Yes We have rotational programs to learn different business areas and technology domains. We have centralized training opportunities. We actively share information through collaboration tools and social media. We actively share information and practices through in-person meetings. n = 39 BAs, multiple responses allowed. Source: CEB, BA Learning Series Polling Results, OVERVIEW DEFINING THE BA ROLE HIRING BAs ESTABLISHING THE BA COMMUNITY RESOURCING AND TEAM MANAGEMENT Building an Effective Business Analyst Community 3

10 BAs at organizations with a strong collaborationfocused culture perform significantly better. THE BEST BAs THRIVE IN A COLLABORATIVE ENVIRONMENT BAs who have a very teamoriented and collaborative work environment are 76% more effective than BAs who don t. BA Effectiveness by the Type of Work Environment Median BA Effectiveness Index 60.0 = 76% Not at All Team-Oriented or Collaborative Work Environment Very Team-Oriented and Collaborative Work Environment n = 408 BAs. Source: CEB, BA Effectiveness Diagnostic, OVERVIEW DEFINING THE BA ROLE HIRING BAs ESTABLISHING THE BA COMMUNITY RESOURCING AND TEAM MANAGEMENT Building an Effective Business Analyst Community 4

11 Progressive organizations establish a collaborative culture among BAs by providing opportunities for professional development across the talent lifecycle. ESTABLISHING A BA COMMUNITY Process Steps 1. Defining the BA Role Key Success Factors Reassess the skills and competencies that truly differentiate the BA role. Identify and embed core competency areas that are critical to BA s success. 2. Hiring BAs Ensure BAs understand what is expected and what is in scope for their responsibilities. Create screening criteria that reflect the skills and competencies critical to success in the BA role. 3. Building a Community Culture Establish compelling career paths for BAs. Promote a culture of collaboration and peer-to-peer learning. Pair training and coaching approaches. 4. Resourcing and Team Management Promote behaviors in managers that support the development of effective BAs. Support specialization to narrow BA development focus and efficiently scale work across a changing portfolio. OVERVIEW DEFINING THE BA ROLE HIRING BAs ESTABLISHING THE BA COMMUNITY RESOURCING AND TEAM MANAGEMENT Building an Effective Business Analyst Community 5

12 Thank You for Your Interest in CEB Research! If you re a member, please log into your account to access the full study. If you would like access to this full study, please contact CEB to learn more. Member Login Contact CEB 2014 CEB. All rights reserved. CIO SYN