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INFORMATION TECHNOLOGY PRACTICE

APPLICATIONS EXECUTIVE COUNCIL

Business Analysts Handbook


Templates for Key Business Analysis Activities

2012 The Corporate Executive Board Company. All Rights Reserved.

Information Technology Practice

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Applications Executive Council

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TABLE OF CONTENTS
Overview of the Business Analyst's Handbookiv
Business Analyst Competency Model: Needs Discoveryvi
Business Analyst Competency Model: Technology Managementvii
Business Analyst Competency Model: Relationship Management and Communicationviii
Section 1: Requirements Elicitation1
Section 2: Requirements Management and Analysis15
Section 3: Creating Compelling Business Cases33
Section 4: Providing Accurate Project Effort Estimates47
Section 5: Architecture Management77
Section 6: Designing for Usability93
Section 7: Communications and Change Leadership105
Section 8: Business Relationship Management125
Section 9: Design Team Relationship Management139

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iv

OVERVIEW OF THE BUSINESS ANALYSTS HANDBOOK


Five New Imperatives for Business Analysts

As a business analyst, you are uniquely positioned to more broadly see the
changes under way in solutions delivery and corporate IT. You are witnessing
greater externalization of IT services to the cloud. Business partners are taking
more responsibility for technology solutions themselves. There is increasing
pressure for efficiency in delivery.

4. Manage new solutions in the broader architectural context.


The environment is growing increasingly complex with more externalized
solutions delivery. Improve your ability to identify interdependent processes,
and manage change of your projects that reduce the need for costly latestage integration.

What does this mean for you? Weve distilled five new imperatives for the
business analyst role:

5. Enhance your vendor management competencies.


Organizations are growing their reliance on vendors for many kinds of
solutions, especially mobile solutions. Your effectiveness with vendors will
depend on your ability to drive the conversation on business need, not
technical specification.

1. Reshape your engagement approach to reflect business leaders


preferences for risk, benefit, and involvement.
Many business leaders now prefer to lead more in phases of IT projects.
Understand your business sponsors attitudes, and tailor your engagement
techniques appropriately.
2. Shift from requirements gathering to needs discovery and strategic
consultation.
Information-intensive projects are increasing in demand. On these projects
its often difficult to articulate needs, and in many cases needs may simply
be unknown. You must help to uncover needs by using investigative skills.
You need to actively question business sponsors on their articulation
ofstrategic objectives to create stronger business outcomes from projects.
3. Build your usability skills and advocate for the end user.
Usability is increasingly important, particularly for analytics, collaboration,
and mobile projects. Use insights drawn from end-user observation to
actively advocate for users needs in dialogue with the sponsors overarching
goals.

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OVERVIEW OF THE BUSINESS ANALYSTS HANDBOOK (CONTINUED)


How to Use This Handbook
This handbook is organized into nine sections that correspond to the nine areas of the Councils Business Analyst (BA) Competency
Model. Each section provides an overview of the available resources and templates, and guidance on when to apply each. We have also
included guidance on each resources applicability to the scope of a BAs responsibilities.

Hallmarks Shared Business: Applications Requirements Elicitation4


By including business stakeholders from the earliest stages of requirements
planning, Hallmark facilitates a shared sense of ownership and maximizes
the likelihood that requirements will meet customer needs. The requirements
elicitation process is broken into five distinct phases. Each phase defines a clear
delineation between tasks for the business team versus the IT team.
When to Use
To establish ownership and shared responsibility with business partners

Essential

Each of the nine


sections contains
an overview on
the templates
available.

The Handbook
provides guidance
on when to apply
the template or
resource.

Reference

Specialized

Each resource
includes an indicator
of its degree of
applicability to the
BA role.

Essential: Template or resource is applicable to core BA activities (e.g., requirements elicitation).


Reference: Template or resource may be outside BAs direct scope of responsibility but where a BA
is often an important contributor (e.g., portfolio requirements management).
Specialized: Template or resource is outside BAs normal scope of responsibility but directly
applicable in specialized role (e.g., services).
Project Methodology: Recognizing that the BAs role in agile projects often varies, we have included agile-related resources within
each of the nine sections, but each resource is labeled as applicable specifically to agile requirements or agile projects. Resources not
labeled as agile are applicable to a waterfall approach or not dependent on choice of delivery methodology.
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BUSINESS ANALYST Competency Model: Needs Discovery


Section 1: Requirements ElicitationAbility to identify a desired future state that addresses a business problem
Level 1: Foundational

Level 2: Practitioner

Level 3: Leader

Precisely and consistently captures business problems and


nonfunctional requirements

Can identify and document emerging business


requirements

Drives consensus for a desired future state that meets the


business problem and enterprise objectives

Prioritizes problems to surface the most critical needs

Can intelligently question business partner and knowledge


worker preferences to identify unique value drivers

Can uncover needs that business partners and end users


would not be able to articulate on their own

Section 2: Requirements Management and AnalysisAbility to manage requirements to the smallest set that will provide the biggest impact in advancing business objectives
Level 1: Foundational

Level 2: Practitioner

Level 3: Leader

Properly prioritizes competing business demands

Properly prioritizes business line and enterprise demands

Understands business process complexity

Can elicit high-level business requirements

Assesses the risks of various solution options to different


options

Accurately translates business requirements into


functionality

Influences business partner requirements in support


ofenterprise objectives

Manages requirements to meet performance expectations

Section 3: Creating Compelling Business CasesAbility to measure and communicate proposed project benefits
Level 1: Foundational

Can articulate the business impact of business problems

Understands the organizations economic and revenue


drivers

Level 2: Practitioner

Understands industry-specific trends that impact the


organization

Clearly articulates benefits in business language

Accurately measures the contribution of IT projects


tobusiness value

Level 3: Leader

Quickly adapts to changes in business strategy

Helps business partners communicate solution value to key


stakeholders

Section 4: Providing Accurate Project Effort EstimatesAbility to quantify project resource requirements
Level 1: Foundational

Effectively coordinates project delivery with the project


management office or equivalent

Level 2: Practitioner

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Can manage ambiguity and create accurate project effort


estimates
Accurately quantifies project-specific risks through the
development lifecycle

Level 3: Leader

Recognizes the implications of business strategy changes

Effectively engages project stakeholders in the estimation


process

vi

BUSINESS ANALYST Competency Model: Technology Management


Section 5: Architecture ManagementAbility to create solutions that advance architectural objectives
Level 1: Foundational

Understands technology standards and architecture


guidelines
Obtains key input from enterprise architecture groups
to ensure architecture compliance and exception
management

Level 2: Practitioner

Level 3: Leader

Identifies solution interdependencies

Stays abreast and creates awareness of technology


developments related to a business problem

Can identify commonalities and suggests a consistent


approach across projects in the absence of standards

Can guide solutions options and business partner decision


making to minimize the amount of project investment
divergence from target architecture

Can identify opportunities for creating reusable enterprise


services

Can guide and manages interactions with technology


vendors

Section 6: Designing for UsabilityAbility to design solutions for end-user adoption and productivity improvement
Level 1: Foundational

Level 2: Practitioner

Level 3: Leader

Incorporates usability and user interface techniques when


designing systems

Can engage with knowledge workers in their normal dayto-day environment

Can identify the requirements to ensure end-to-end service


performance from the end users perspective

Understands knowledge workers information needs as


they relate to a potential solution

Can effectively convey knowledge workers preferences to


business partners and design teams

Can gain business sponsor commitment for additional


resources required to ensure usability

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vii

BUSINESS ANALYST Competency Model: Relationship Management


and Communication
Section 7: Communications and Change LeadershipAbility to communicate effectively across multiple constituencies to support project and organizational change objectives
Level 1: Foundational

Level 2: Practitioner

Presents ideas in a concise, focused manner

Can guide team decision making

Can work as part of a larger team

Provides business partners with an accurate view


of challenges to end-user buy-in

Surfaces potential impacts of the solution on all


stakeholders

Level 3: Leader

Effectively engages key knowledge workers and business


sponsors in change management activities

Section 8: Business Relationship ManagementAbility to engage business sponsors and contribute to their targeted business outcomes
Level 1: Foundational

Level 2: Practitioner

Level 3: Leader

Sets realistic customer expectations for project delivery


(e.g, schedule, budget, outcome)

Adjusts customer expectations in accordance with


changes in scope

Can influence business partner decision making to


optimize requirements prioritization

Clearly articulates the role of technology in terms easily


understood by business constituencies

Can effectively navigate conflict between multiple business


partners

Builds long-term relationships between multiple business


partners to drive engagement in IT strategy

Proactively resolves customer satisfaction issues

Tailors business partner engagement to business sponsor


risk and value preferences

Section 9: Design Team Relationship ManagementAbility to engage developers to ensure productivity and solution quality
Level 1: Foundational

Can listen to and understand technological constraints

Clarifies the business rationale of a solution concept

Level 2: Practitioner

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Creates a vision of project success that drives team


engagement
Shares best practices and process and environmental
knowledge

Level 3: Leader

Educates developers on a projects business context

Effectively collaborates with geographically distributed


teams

viii

Section 1: Requirements
Elicitation

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Requirements
Elicitation

Requirements
Elicitation

REQUIREMENTS ELICITATION
Capture High-Level Requirements
Partner with business sponsors to effectively identify a desired future state
that addresses a business problem.
Hallmarks Shared Business: Applications Requirements Elicitation4
By including business stakeholders from the earliest stages of requirements
planning, Hallmark facilitates a shared sense of ownership and maximizes
the likelihood that requirements will meet customer needs. The requirements
elicitation process is broken into five distinct phases. Each phase defines a
clear delineation between tasks for the business team versus the IT team.
When to Use
To establish ownership and shared responsibility with business partners
for each stage of requirements elicitation
To validate high-level functional requirements for new systems
development/legacy systems

Essential

Reference

Specialized

Sabre Holdings Agnostic Needs Statement7


Sabre Holding assesses what should and should not be in a mobile application
by crafting use cases that capture needs, not just mobile-specific requirements.
To isolate the right needs and translate them into features, BAs should use a
questionnaire that challenges business sponsors and users to articulate why
their needs cannot be achieved without a mobile application.
When to Use
To uncover business sponsor and user needs for mobile
To craft use cases for mobile apps requirements
To validate whether a mobile application is the right solution
Essential

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Reference

Specialized

IBMs User-Initiated Requirements Specification8


To improve the requirements elicitation process, IBM boosts the usability
of user-provided information by supplying business users a standardized
elicitation template focused on the key attributes of the end product.
When to Use
To capture functional and nonfunctional requirements
To identify the most stable requirement

Essential

Reference

Specialized

Evaluate Requirements
Continually verify requirements individually and collectively against a
standard set of well-known criteria throughout the project lifecycle.
Capital Ones Creating High-Quality Requirements10
Capital One rigorously validates every functional requirement against a
checklist of eight necessary attributes that each must meet. To prevent scope
creep, all approved requirements must be associated with a documented
business need. After making sure that each individual requirement is of high
quality, the entire set of requirements is assessed as a whole against an
additional set of three attributes. These attributes relate to the thoroughness
of the set, the interrelationships between requirements, and the ease with
which the requirements set can be changed.
When to Use
To prevent scope creep of requirements
To define attributes of high-quality requirements

Essential

Reference

Specialized

REQUIREMENTS ELICITATION (continued)


Elicit Unarticulated Needs
Engage in direct observation of knowledge workers to uncover unarticulated
needs and transformational innovation opportunities.
LexisNexiss Uncovering Unarticulated Needs13
LexisNexis focuses on uncovering unarticulated needs directly from knowledge
workers. BAs engage directly with employees to understand pain points or
roadblocks in employees workflow.
When to Use
To assess employees unrecognized needs or identify barriers
in their workflow

Essential

Reference

Specialized

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Requirements
Elicitation

Requirements
Elicitation

Capture High-Level Requirements


Hallmarks Shared Business: Applications Requirements Elicitation
Requirements Elicitation Process

Feasibility

Goal

Business-Side
Tasks

Formulate the business


problem and identify all
stakeholders, including
end users.

ApplicationsSide Tasks

Map user base across


organizations.
Determine operational
and problem context
such as mission
scenarios.
Identify similar systems
in the organization.
Identify application
domain and
development experts.
Identify domain and
architectural models.
Assess cost constraints
imposed by the
sponsor.

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Solicitation

Analysis

Prioritization

Gather and classify


feature requests from
business partners through
joint-requirements
planning.

Perform an impact
analysis and risk
assessment to address
technical, schedule, and
cost concerns.

Prioritize all requirements


based on business
criticality of the features.

Obtain a wish list from


each party in the user
base.

Perform abstractions
to answer questions of
the form, Why do you
needX?

Determine criticality
of features.

Validation

Integrate requirements
and validate scope
in collaboration with
business partners.

Classify wish
lists according to
constraints (functional,
nonfunctional,
environmental,
design, etc.).
Determine interface
needs for information
that is shared between
business areas.

Estimate the impact of


requirements on cost
and schedule.
Perform risk assessment.
Examine cost of
potential solutions in
light of architectural
andstrategic fit.

Prioritize requirements
based on cost and
dependency.
Identify appropriate
architectural models
that work with current
technology roadmap.

Resolve as many open


issues as possible.
Verify that requirements
are in agreement with
originally stated goals.
Obtain authorization
to move to Application
Design.
Resolve conflicts
and keep consistency
in check.

Capture High-Level Requirements (CONTINUED)


Hallmarks Shared Business: Applications Requirements Elicitation (Continued)
High-Level Requirements Questionnaire for New Development
1. Determine Business Objectives

4. Determine Current Problems

1. What are your goals in developing this system?


2. Who are the key stakeholders and users? Do their goals differ? If so, how?
3. How do the system goals map to business goals?
4. What is the most important business goal of the system?
5. Will the system change the way you are doing things now?
6. Will the system help you be more efficient? How?
7. What are the system deliverables?
8. What will the new system accomplish that is not accomplished manually
orwith other systems?
9. What will the new system do?

1. What are the problems you face without the system today?
2. What problems should this system solve?
3. Do you have to do things manually that you would like to automate?
4. Do you have performance problems that need to change?
5. Do you have functional limitations that you would like to change?
6. Are you using packages that force you to constrain your business functionality
to the boundaries of the package?
7. Which reports do you currently use? What data on the report are important?
How do you use the information?
8. Are there specific bottlenecks to getting at information?
9. How do you analyze the information you currently receive? What type of data
are used? How do you currently get the data? How often do you get new data?
10. What type of ad hoc analysis do you typically perform? Who requests ad hoc
information? What do you do with the information?

2. Determine Future Needs


1. What business requirements will this system address?
2. What information do you need from this system that you dont have now?
3. Is any of this data currently captured in any other corporate system?
4. How would you like to see this information?
5. What functionality do you need from the system?
6. Are the data and/or functionality shared by other (many) business areas?
If so, which?
7. If the reports were dynamic, what would they do differently?
8. How much historical information is required?

5. Determine Criteria for Success


1. What is most important for success of the application?
2. What do we need to accomplish to make this project successful?
3. What do we need to change to make this project successful?
4. What buy-in do we need?
5. Are we lacking any critical elements such as budget, resource allocation,
or support?
6. What are training considerations for developers and users?

3. Determine System Users


1. Who will be using the system?
2. What are the titles and roles of the people who will use the system?
3. What are their levels of expertise?

6. Determine Assumptions and Open Issues


1. List assumptions.
2. List open issues, responsible parties, and resolution date.

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Requirements
Elicitation

Requirements
Elicitation

Capture High-Level Requirements (CONTINUED)


Hallmarks Shared Business: Applications Requirements Elicitation (Continued)
High-Level Requirements Questionnaire for Legacy Systems Development
1. Determine Business Objectives

2. Determine Future Needs

1. Why do you want to redo the system?


2. How will the new version of the system help you?
3. What are your objectives in having this system?
4. Who are the key stakeholders and users? Do their goals differ? If
so, how?
5. How does the system map to business goals?
6. What is the most important business goal of the system?
7. Will the system change the way you are doing things now?
8. Will the system help you be more efficient? How?
9. What are the system deliverables?
10. What will the converted system accomplish that the current
system cannot?
11. Will the output of the converted system be the same or different
than the current system?
12. Will the new system have an additional functionality? What?
13. Will the new system have better performance? To what extent?
14. Will the new system help you be more efficient? To what extent?
15. Will the screens look different? How?
16. What is most important (rank in order of importance)?
Application is easier to use.
Application has nicer front end.
Application has additional functionality (list).
Application is more efficient.
Application is redesigned to better reflect the business.

Same as for new system development

Many of the questions that apply to new


systems development also pertain to
projects involving legacy systems.

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3. Determine System Users


Same as for new system development
4. Determine Current Problems
Same as for new system development, plus:
1. What is the risk of not converting the system?
5. Determine Criteria for Success
Same as for new system development
6. Determine Assumptions and Open Issues
Same as for new system development
7. Determine Current Problems
1. Who are the most important players in terms of knowledge?
Politics?
2. Is there any existing system documentation? If so, where?
3. Who else should we talk to?

For projects that impact legacy systems,


Hallmark also considers important
questions relating to organizational
behavior and people issues.

Capture High-Level Requirements (continued)


Sabre Holdings Agnostic Needs Statement
Questionnaire for Business and End Users: Mobile Requirements

Business Sponsor Questionnaire

Use Case 3: End User

1. What are you trying to do?


We want to offer a solution to travelers that helps
them manage their travel throughout the trip.

1. Who are you as a potential user? What is your role?


A road trip traveler

2. Why cant you achieve this business objective


without mobile?
While travelers are in-trip, it is often difficult
tocommunicate with them.
3. What is the pain point?
Travelers typically think of trip management
applications during delays or when they are
looking for flight status. We want to expand our
engagement by making life easier for in-trip
travelers.
4. To what degree are you changing an existing
business process?
The travel lifecycle has always had a gap in the
in-trip phase. To move a product or service
into this phase requires a change as well as new
approaches and data.

Use Case 2: End User


1. Who are you as a potential user? What is your role?
A business traveler
Use Case 1: End User
1. Who are you as a potential user? What is your role?
A leisure traveler
2. What do you need to accomplish?
While in the middle of my trip, I need to know my
hotels amenities and what other events/activities
may be available.
3. Why do you need to do that?
I usually find these items in advance of the trip,
but if I fail to do that, I have difficulty finding the
information.
4. Why cant you accomplish this without mobile
devices? How have you tried to resolve this
need in the past?
While in-trip, access to a PC can be extremely
difficult. Calling for information has proven hit or
miss.

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Requirements
Elicitation

Requirements
Elicitation

Capture High-Level Requirements (CONTINUED)


IBMs User-Initiated Requirements Specification
Business Requirements Elicitation Worksheet

Key Question: What business


problem are you solving with each
requirement?
Requirement
Type

Example: I need to have updates


to customer data available in all
regional offices.

Functional
Requirements

Unique ID

Requirement
Statement
Description

Success
Conditions

Example: The system must be able


to process orders, but it may not
have to provide daily reports.

Stability
Level

BFR1

High (H)Unlikely to change

BFR2

Medium (M)May change based


on business conditions or other
business initiatives

BFR3

Low (L)Likely to change based


on business conditions or other
business initiatives

BFRn

BNFR1

Key Question: What would render


a feature or functionality useless
to you?

Nonfunctional
Requirements

Example: The data would be


useless to me if I cant get it in
fewer than 15 seconds.

BNFR2
BNFR3

BNFRn

Applications Team Filters to Improve Requirements Quality


Applications uses four standard IEEE criteria to improve accuracy
of requirements capture:
A. Unambiguous: The requirement statement has only one possible
interpretation.
B. No Design Impact: The requirement statement does not include
how the requirement should be implemented.
C. Necessary: The requirement statement addresses a business
objective or need.
D. Correct: The requirement statement accurately describes the
functionality to be delivered.

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Key Question: How likely is it that


this requirement will not change?

Key Question: How can you tell it


is working correctly?
Example: An e-mail reporting sales
updates is sent to the VP of supply
chain every day at 8:00 a.m.

Capture High-Level Requirements (CONTINUED)


IBMs User-Initiated Requirements Specification (Continued)
Business Requirements Specification, Illustrative

Business Requirements Specification


I. Business Scope and Objectives

Key questions to ask when reviewing business requirements:


1. What am I solving with this business requirement?
2. Is this business requirement feasible?
3. What scope and/or objectives is this business requirement addressing?
4. What is the acceptance criterion for this business requirement?
5. How do I measure the acceptance criteria?

This section defines the starting reference for a project. This section should help with
the following:
Provide a high-level understanding of what the enterprise is and aspires to
become. It is usually depicted by a brief description on how the organization
intends to achieve its goals and make the desired transition and by what means.
Document events that are the initial stimuli causing the clients business to act.
Describe and quantify the benefits, costs, schedules, and assumptions required
to justify the implementation (if needed).

Success criteria/acceptance criteria ensure agreed-to business requirements


(functional and nonfunctional) are clear and unambiguous. They are also the metrics
that measure success of the project. The objective of this section is to identify and
document success criteria and associated metrics for each business functional and
nonfunctional requirement.

II. As Is Business Process Flows

a. Business Functional Requirements

This section should help with the following:


Contain the graphic representation of the flow of work through a business
process model, narratives that describe the flow, and key process attributes.
Describe a high-level business use case model; this use case model uses
graphical symbols and text (business lexicon) to specify how users in specific
roles will use the system.
Depict the usage and interaction between resources (e.g., hardware, software,
and people).
III. Business Requirements
Business requirements differ from systems requirements. Business requirements can
be identified by the following characteristics:
They support a business scope and/or objective, usually reviewed by executives.
They have a business purpose/focus.
They state what needs to be accomplished using business language.
They are nontechnical.

Business
Functional
Requirement Id

Requirement

Stability Level
(H)High
(M)Medium
(L)Low

Success Criteria
and Associated
Metrics

BFR1
BFR2
b. Business Nonfunctional Requirements
Business
Functional
Requirement Id

Requirement

Stability Level
(H)High
(M)Medium
(L)Low

Success Criteria
and Associated
Metrics

BFR1
BFR2
IV. Assumptions, Issues, and Constraints

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Requirements
Elicitation

Requirements
Elicitation

10

Evaluate Requirements
Capital Ones Creating High-Quality Requirements
Individual Requirements Evaluation Criteria

The following attributes should be applied to each requirement


Term

Definition

Guidelines

1. Unambiguous

The requirement has only


one possible interpretation.

Avoid natural language, such as user-friendly, easy, simple,


rapid, efficient, several, state-of-the-art, improved, maximize,
and minimize.
Use a requirements document glossary to capture the
meaning of important terms.
Uncover ambiguity by formally inspecting the requirement,
writing test cases from requirements, and creating user
scenarios that show the probable behavior of a specific piece
of the product.

2. Correct

The requirement accurately


describes the functionality
to be delivered.

Use the source of the requirement as your reference


of correctness, such as the actual business or system
requirements specifications. If the system requirement
conflicts with the corresponding Business requirement,
one of them is incorrect.

Example
For up to eight results, the detailed display format shall be
used. For the remainder, the compressed display format shall
be used.
Ambiguity lies in the phrase for up to eight results. Does
it mean for up to and including eight or for up to and
excluding eight?

A business requirement that states the search function shall


display a maximum of 10 results per page could incorrectly
be recorded in the systems requirements as the search
engine must fetch a maximum of 10 matching records from
the database.

Include the affected areas subject matter expert (SME) when


determining the correctness of requirements.
3. Testable

4. Achievable

The requirement can


be verified through an
inspection or demonstration
to determine whether it can
be implemented properly
in the product.

State each requirement so it can be verified within the


scope of the project using tests or other verification
approaches. If a requirement is not verifiable, questioning its
implementation will be a matter of opinion.

The requirement must be


practical from the standpoint
of compatibility issues
with existing systems and
environments and constraints
of time and budget.

The requirement analyst and the business customer should


work through the elicitation process to agree on what can
and cannot be done technically and what can be done only
at excessive cost or with other trade-offs.

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Requirements that are inconsistent, infeasible, or ambiguous


are not verifiable. A requirement that merely states that the
product shall support certain functionality is not verifiable.

The program shall not enter an infinite loop is a nonverifiable and hence not testable requirement.

Evaluate Requirements (CONTINUED)


Capital Ones Creating High-Quality Requirements (Continued)
Individual Requirements Evaluation Criteria (Continued)

Term

Definition

Guidelines

Example

5. No Design
Impact

The requirement states what


is required but not how the
requirement should be met.

Check each requirement to ensure that it does not reflect a


design or implementation decision or describe an operation.
Such requirements are design-dependent.

DO: Design independent requirements.


The system shall enable all employees to update their
time sheets.

Nonfunctional requirements such as system constraints are


an exception.

DONT: Design dependent requirements.


The system shall be composed of three modules, each
reading from and writing to a Microsoft Access database.
The treatment of interface requirements is usually an
exception: The system interface shall adhere to the standard
corporate design.

6. Traceable

The requirement must be


traceable to and from its
source.

Link each requirement to its source. It could be a high-level


system requirement, use case, or a documented stakeholder
requirement.
Link each software requirement to the architecture elements,
design elements, and test cases that are constructed to
implement and verify the requirement.

7. Necessary

The requirement should


document a business need
and should be implemented
by design.

A necessary requirement is one that has been validated by an


owner recognized to have change control authority (such as
the requirements manager). It can be clearly identified with
abusiness case.

8. Documented

A requirement must be
documented for it to be
considered valid.

Verbal, undocumented requirements cannot be adequately


traced, tested, analyzed, or shared across the project team.
Hence, requirements must be documented to meet all the
conditions stated above.
The form of documentation should facilitate electronic
storage and transmission and should be published by the
project manager as early as possible in the project lifecycle.

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Requirements
Elicitation

11

Requirements
Elicitation

12

Evaluate Requirements (CONTINUED)


Capital Ones Creating High-Quality Requirements (Continued)
Collective Requirements Evaluation Criteria

The following attributes should be applied to all requirements collectively.


Term

Definition

Guidelines

Example

I. Complete

Requirements must account


for all business needs related
to the project.

Organize the requirements hierarchically to help reviewers


understand the pieces that make up the requirement. It will
then be easier for the reviewers to tell if something is missing.

The use case method works well for this purpose.


Graphical analysis models that show different views of the
requirements can also uncover incompleteness.

Focus on user tasks rather than on system functions during


requirement elicitation. This reduces the likelihood of
overlooking necessary requirements or including
unnecessary ones.

Any appearance of To Be Determined (TBD) in the


requirements document makes it incomplete. Use TBDs
as a standard flag to highlight gaps when it is known that
certain information is missing. Resolve all TBDs before you
develop the part of the product tied to the TBD requirement;
otherwise, it must be documented by the project manager in
the PMM Risk Management Plan.

Consistent requirements agree with other software


requirements or with higher-level system and business
requirements. Research and resolve disagreements among
requirements before development can proceed so it is
understood which of the requirements is correct.

The following requirements are not consistent with each


other:

II. Consistent

No two requirements must


be in conflict with each other.

Review all the related requirements before you modify one.


Inconsistencies can slip in undetected if only the specific
change is reviewed.
III. Modifiable

Requirements specifications
must be open to revision and
durable to change.

The search function shall return results in the order of their


relevance to the searched term.
The search function shall display the most recently created
documents first.

Uniquely label each requirement and express it separately


from other requirements so each can be referred to
unambiguously.

The user should lift the handset; the system shall respond
with dial tone; the user should then dial the seven-digit
phone number of the party the user is trying to reach.

Organize all requirements such that related requirements are


grouped together.

The user should lift the handset; the system shall respond
with dial tone; the user should then dial a 1 followed by the
10-digit phone number of the party the user is trying to
reach.

Create a table of contents, an index, and a cross-reference


listing.

The redundant steps in these two requirements increase


readability but decrease the modifiability. A single change
of step may impact multiple requirements due to the
redundancy of steps.

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Elicit Unarticulated Needs


LexisNexiss Uncovering Unarticulated Needs
The Customer Advocate Profile

1. Experience

Recent experience with the workflow performed by the knowledge worker


Was recently employed in the role or participated in the business process
performed by the role

2. Scientific Disposition

Intellectual curiosityExhibits a passion for learning

Observational skillsCan identify patterns in large data and information sets

Problem solvingIs driven to understand the core of an issue

3. Journalistic Aptitude

Interviewing skillsIs able to facilitate and guide discussions with others

Interpersonal skillsThrives in interactions with others

Recognized as a Challenger of the status quoIs able to intelligently question


knowledge worker preferences to identify unique value drivers associated with
the objectives of the role, in a nonaggressive yet an assertive, authoritative way

Customer Advocate Objectives

Engage with knowledge workers in their normal day-today environment.


Uncover and document existing pain points and needs
thatknowledge workers would not be able to articulate
ontheir own.

Good but Insufficient Indicators of Success


for a Customer Advocate

Experience in identifying and evaluating newtechnologies

Experience in gathering and defining business requirements

Survey and data analysis skills

User-experience skills

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Requirements
Elicitation

13

Requirements
Elicitation

14

Elicit Unarticulated Needs (CONTINUED)


LexisNexiss Uncovering Unarticulated Needs (Continued)
Interview Guide
Objectives
1. Collect background information on the knowledge worker.
2. Understand a day in the life of the knowledge worker.
3. Observe the knowledge worker in his or her natural work environment.
I. Background

II. Day in the Life

1. Job Position/Title

Describe a typical day for you. Walk me through what time your day normally starts,
typical activities, etc.

2. Business Unit
Name of business unit
Size of business unit
Structure of business unit
How are you personally evaluated?
Who supports you?
3. Tell me about your career/educational background and how you got to where
you are today.
Undergraduate
Graduate school/MBA
Career progression
4. What is your key area of expertise? What would you like to be your key area
ofexpertise?
5. What does your network of peers look like?
6. What extracurricular activities (both job-related and personal) have you
participated in?
7. What is your level of comfort with technology?
8. How do you keep up with new developments in your field?
9. How do you learn about new products or services to help you with your job?

1. What are your hours?


2. Who are the people you typically interact with and how do you interact with them?
3. What do you spend the most time on?
4. What would you like to be spending the most time on?
5. What is a good use of your time and what is not?
6. What would you assign to someone else if you could?
7. Where do you workin the office, at a client site, at home?
8. In your everyday work, what tools/resources do you rely on to make your work
easier?
What tools serve you well and you could not live without?
What tools are less successful?
Can you tell me about a work task that was made a lot easier using a tool that
you purchased?
How did that tool/resource make the job easier?
How do you customize/modify the tools that you use to help you in your work?
(Or can you usually use them off the shelf?)
Is there a product you wish you had that is not available?
9. What resources are available to you, free and paid for?

10. How is success typically measured in your job? How do you tie that success back
to the work you did?

10. What resources do you wish you could have?

11. What is the most important thing you can do well in your job in the eyes ofyour
company/boss/industry?

11. How do you see your job changing in the next five years? What tools/resources will
become more important?

12. When you look back at this job 5 or 10 years from now, how will you decide if you
were successful at it?
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IT Practice
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All Rights Reserved.AEC2241712SYN

Section 2: Requirements
Management and Analysis

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Requirements
Management
and Analysis

15

Requirements
Management
and Analysis

16

REQUIREMENTS MANAGEMENT AND ANALYSIS


Prioritize and Track Requirements
Accurately screen and compare requirements based on how well they satisfy
business objectives.
Sabre Holdings Feature Needs-Testing for Mobile Apps18
Sabre Holdings applies a rigorous screening to strip out features that fail
tosatisfy either the business or end-user needs.
When to Use
To screen mobile requirements for fit with business needs
Essential

Reference

Specialized

Discovers Sample Requirements Tracking Document19


Discovers requirements tracking document helps ensure that requirement changes
are reflected in design and test cases and validated by users.
When to Use
To gather requirements iteratively
To identify requirements from business partners, users, and software
requirements
To validate requirements during project review discussions

Essential

Reference

Specialized

Paccars Business ObjectivesDriven Functionality Prioritization20


Paccar uses a numeric scorecard that calculates importance of business
objectives and how each functional capability satisfies a business objective.
The impact score for each functional capability is based on its cumulative
impact on the set of business objectives. Historical data, time and motion
studies, and modeling are used to arrive at this quantification.
1

Pseudonym.

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When to Use
To connect business benefits and application functionality
To quantify functional capabilities
To find the best-fit implementation for application functionality

Essential

Reference

Specialized

BCBS-MAs Pairwise Feature Prioritization21


For functionally complex projects, BCBS-MA makes pairwise comparisons
among features to enable the business sponsor effectively prioritize requests
for functionality.
When to Use
To compare and rank order business preferences
To compare and prioritize features

Essential

Reference

Specialized

Fenton, Inc.s1 Functionality ROI Maximization22


Fenton, Inc. quantifies each features impact on a projects business value
components that enables benefit-driven trade-offs.
When to Use
To quantify the value of application functionality
To prioritize features and requirements based on business benefit
Essential

Reference

Specialized

REQUIREMENTS MANAGEMENT AND ANALYSIS (continued)


Manage Requirements Across Business Process Change

Improve Portfolio-Level Requirements Visibility

Customize requirements management methodologies based on projects


architectural impact and end users/customers involved.

Group projects together based on their shared impact on business


processes, and then gather the requirements holistically.

Swiss Res Methodology Decision Map23


Swiss Re aligns the level of effort for requirements management on any given
project with the level of business process change targeted by the project.

CIGNAs Portfolio-Level Requirements Management27


CIGNA takes a holistic view of requirements capture by bundling projects
based on project priority, business process impact, and business process
synergy. A centralized requirements group maps current business processes,
identifies requirements redundancies and gaps across projects, and makes
the appropriate adjustments to enable business process transformation to the
desired future state.

When to Use
To match requirements management effort to business need
To tailor requirements management methodology

Essential

Reference

Specialized

When to Use
To capture portfolio view of requirements
To bundle projects based on shared impact of business processes
To map current business processes, identify requirement redundancies,
andgaps across projects

Drake Corporations1 Voice of the Customer Tool26


Drake Corporation uses a Voice of the Customer planning worksheet to
understand user acceptance issues early and adapt requirements management
accordingly.
When to Use
To assess key stakeholder attitudes
To plan engagement with stakeholders
Essential

Reference

Essential

Reference

Specialized

Specialized

Pseudonym.

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Requirements
Management
and Analysis

17

Requirements
Management
and Analysis

18

Prioritize and Track Requirements


Sabre Holdings Feature Needs-Testing for Mobile Apps
Illustrative, Corporate Booking Apps
Candidate Features
Obtains Travel Agency
Contact Information
Updates Traveler Profile Information

Litmus Test
Can we clearly articulate how this feature
meets a business need?

Shops and Books for Corporate


Approved Hotel Rooms
Displays Corporate-Specific Messaging

Holds a Trip for Future Booking

Needs Test 1:
Business Need
Discard Features

Litmus Test
Can we clearly articulate how this feature
meets a high value user need?

Needs Test 2:
End-User
Workflow Need
Discard Features

Usability Criteria
Could use of this feature be severely
impacted by any of the following?
Noise/distractions
Poor lighting
Time pressure
Slow link control protocol connectivity
Complex visuals
Specific mobile device
(e.g., phone versus tablet)
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Updates Traveler
Profile Information

Displays Corporate-Specific
Messaging
Obtains Travel Agency
Contact Information

Usability
Criteria

Discard Features

Shops and Books for


Corporate Approved
Hotel Rooms

Holds a Trip for


Future Booking

Prioritize and Track Requirements (CONTINUED)


Discovers Sample Requirements Tracking Document
1

Document
requirements captured
prior to the war room.

UAT ensures that business partners have


validated the changes that were made
throughout the project and facilitates the
speedy formal sign-off at the end of the project.

Requirements Tracking Document


Project Name: Excelsior

Business Sponsor: Jim C

War Room Dates: ---------------

Project Manager: John G

Req. ID

Description

Requirement
Adjustment
Notes

Design
Test
Document Case ID

Changes
Implemented

RS0001

Users should be able to


select the item from the list
of products.

Select multiple
items from the
list.

DD0001

Design

TC0001

UAT
Done

Development
Test Cases

RS0002

RS0003

Make list of all products


available for the user to
select in alphabetical order.

Also group the


products by
their market.

DD0005

TC0003

Design

TC0004

Development

TC0005

Test Cases

--------------------------------

-----------------

-----------

---------

-----------------

RS0004 --------------------------------

-----------------

-----------

---------

-----------------

Use notes column to write down any changes


to requirements during the war room. Dont
waste time formally updating the requirements
document.

Traceability ensures
that changes are
implemented in all
affected areas.

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Requirements
Management
and Analysis

19

Requirements
Management
and Analysis

20

Prioritize and Track Requirements (CONTINUED)


Paccars Business ObjectivesDriven Functionality Prioritization
Prioritizing the Impact of Applications Functionality on Fulfilling Business Objectives, Illustrative

High-level requirements
are framed in terms of
business or process
improvement objectives.

Impact assessments and


business process knowledge
result in quantified business
benefits (e.g., 4% decrease in
order-to-ship cycle time).

Strong Impact = 9 Points


Medium Impact = 3 Points
Low Impact = 1 Point

Business Objectives
Reduce Costs

Business Priority Rank:


Low (L), Medium (M),
High (H)

Business Priority Rank

Functional
Capabilities

Increase Revenue

Increase
Engineering
Operations
Efficiency

Improve
Materials Cost

Increase
Engineering
Design Efficiency

Increase
Average
Price

Increase
Customer
Utilization

Decrease
Order-to-Ship
Cycle Time

Impact
Score

Change Order
Event Notification

6.6

Automate Material
Requirements Ordering

4.9

Add Search Capability

5.2

Functional capabilities that


potentially satisfy the high-level
business objectives can run into
as many as 100 for large projects.

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Assessment
of impact of
functionality on the
business objective

Impact scores are calculated based on the Business Priority


Rank and the impact of the functionality on each of the
business objectives; top third stay, bottom third are discarded,
and middle third are taken up for further consideration.

Prioritize and Track Requirements (CONTINUED)


BCBS-MAs Pairwise Feature Prioritization
Pairwise Comparison of Features
A. Change Address

1
A

Participants are asked to pick the


feature they consider more important
feature A (Change Address) or feature
B (Change Name); ties are not allowed.

B
A
A

B. Change Name
2
B

Similarly, pairwise comparisons are


made between each pair of features;
the preferred one in each pair is circled.

C
B

D
D
A
A

D
D
B
B

Functionality Ranking

No. of Times
Circled

Business Staff

4 D. Change Status
D
D
D

Feature

C. Reinstate

E
E

E. Transfer

A count of the number of times each feature


is circled across the rows and columns of
the entire matrix is used to rank the features.

Complexity Ranking
Applications Staff

Prioritized Feature List


Project
Sponsor

Business Project
Manager
Which feature is more important to you:

Change Address or Change Name?

Change Name or Reinstate?

Rank Value-Based
Prioritization

Business
Liaison

Cost-Based
Prioritization

Which feature is more


complex to create:

D Change Status

E Transfer

A Change Address

C Reinstate

Change Address or
Change Name?

B Change Name

D Change Status

Change Name or
Reinstate?

E Transfer

A Change Address

C Reinstate

B Change Name

Ranking the complexity of the features


gives the Applications team a handle
on costs, resources, and schedule.

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Requirements
Management
and Analysis

21

Requirements
Management
and Analysis

22

Prioritize and Track Requirements (CONTINUED)

Fenton, Inc.s Functionality ROI Maximization

Strong Impact = 9 Points

Computer Telephony Integration Project, Illustrative

Medium Impact = 5 Points


Low Impact = 1 Point

Vertical views
indicate potential
feature gaps and
redundancies.

High-Level
Requirements

Need for
Associates to Talk
with Previously
Inaccessible
Customer
Segments

Need to Provide
Associates with
Critical Customer
Relationship
Information

Business Value Components

Weight is assigned
based on order of
magnitude of the
value.

Efficiency Goals

Value
Weight

Effectiveness Goals

Increased
Use of Call
Automation

Timely
Handling
of Call

Efficient
Call Transfer
to Sales

Reduced
Calls to
Help Desk

Reduced
Call
Escalation

Increased
Customer
Retention

Intelligent
Call
Routing

$500 K

$275 K

$25 K

$100 K

$200 K

$1 M

$5 M

Scores can be
aggregated
to prioritize
requirements.

Feature Score
(Sum of Weight
x Impact)

System Features
System shall identify which customers
to be harvested.

67

System shall have the flexibility to


easily change harvesting instructions.

63

System shall have the ability to


reorder queues based on harvesting
instructions.

43

System shall only harvest the best


customer segments.

51

System shall display customer and call


information to associate.

71

System shall display key customer data


to associate.

83

System shall provide wrap-up for who


and why customer called.

23

Pseudonym.

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Manage Requirements Across Business Process Change


Swiss Res Methodology Decision Map
Customer Request Decision Tree
Yes

Small
(< $250 K)

Is this a
one-time
improvement?
No

Improving
Existing

What is the
size of the
change?

Significant
($250 K$2 M)

Changes a Leverage
Point Within the
Existing Paradigm

Order of
Magnitude
(> $ 2 M)

Improving
Existing

What are you


doing to the
process?
Replacing
Existing

Continuous Process
Improvement

Business Process
Improvement

What are you


doing to the
process?
Replacing
Existing

Information
Systems Planning

What is
the impact?
Changes the
Business Paradigm
Yes

Is there a high level of


risk associated with
the improvement?

No

Business Process
Improvement
Radical Process
Improvement
Radical Process
Improvement
Business Process
Improvement
Radical Process
Improvement

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Requirements
Management
and Analysis

23

Requirements
Management
and Analysis

24

Manage Requirements Across Business Process


Change (CONTINUED)
Swiss Res Methodology Decision Map (Continued)
Approach Descriptions
Information Systems Planning

Improving the automation of, or information support to, an existing


process
Restructuring information systems for technical efficiency, functional
flexibility, and maintainability

Moving automated support from one platform to another

Improving the integration among information systems

Continuous Process Improvement

Business Process Improvement

Measuring and analyzing the existing process to identify problems for


resolution and other improvement opportunities
Applying left-to-right thinking to evaluate how the parts of the process
contribute to the required outputs and performance
Identifying leverage points with the greatest opportunity for competitive
advantage and performance improvement
Developing a set of improvements that together amount to significant
improvement in such areas as cost, time, and quality.

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Installing a quality-oriented culture and set of procedures to encourage


and exploit improvement ideas from workers
Applying left-to-right thinking to evaluate how the parts of the process
contribute to the required outputs and performance
Achieving a series of improvements of smaller magnitude in such areas
ascost, time, and quality that, over the course of time and the scope of
the entire process, amount to significant improvement

Radical Process Improvement

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Monitoring the existing process through a rigorous measurement program


to identify problems for resolution

Replacing an existing process with a completely new or a substantially


redesigned one, generally accompanied and enabled by radical changes
inthe use of information technology and people
Applying right-to-left thinking, beginning with required outputs and
deriving the essential process
Actively challenging and rejecting old paradigms by lateral thinking
Achieving order-of-magnitude improvements in such performance
measures as cost, time, quality, and flexibility, either out of competitive
necessity or the desire to leap ahead of the competition
Business Process Reengineering addressing the extreme end of business
process redesign, where the level of scope, impact, and risk is the greatest

Manage Requirements Across Business Process


Change (CONTINUED)
Swiss Res Methodology Decision Map (Continued)
Requirements Process, Three Stages
Architectural Analysis
Architecture
Planning

Architecture
Design

Business Process Analysis and Design


Architecture
Review

Initiate
Analysis

Deliverables

Gather
Process
Requirements

Model
Process
Design

Review
Process
Design

Business Solution Analysis and Design


Approve
Process
Design

Deliverables

Application Landscape
Business Information Model
Context Diagram
Draft Application Context Diagram

Business Dynamics Models


Requirements Matrix
Business Value Chain
Ownership Assignments
Hierarchies
State Transition Diagrams

Initiate
Analysis

Typical Activities

Discuss project with local architecture


team, obtain any business grouplevel
reference artifacts.
Assess impact of any proposed changes
onexisting architectural environment.
Discuss appropriate timings and number
of governance reviews with Architecture
Governance and Standards team.
Review and familiarize with Business Case
and Project Definition Document.

Initiate business process analysis.


Gather business process requirements.
Model business process design.
Review business process design.
Sign off on business process design.

Model
Process
Design

Review
Process
Design

Approve
Process
Design

Deliverables

Typical Activities

Gather
Process
Requirements

Business Process Models


Logical Data Model
CRUD Matrix
SDL Compliance Statement
Application Context Diagram
Information Flow Diagram
Prototype Screen Flows and Designs
Test Documentation
Use Case Documents

Typical Activities

Initiate business solution analysis.


Gather business solution requirements.
Model business solution design.
Review business solution design.
Sign off on business solution design.

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Requirements
Management
and Analysis

25

Requirements
Management
and Analysis

26

Manage Requirements Across Business Process


Change (CONTINUED)

DRAKE

corporation

Drake Corporations Voice of the Customer Tool


Stakeholder Group Analysis

Challenge

Opportunities

Current Commitment
(SS, S, N, A, SA)

Needed Commitment
(SS, S, N, A, SA)

Probabilities
of Success (PoS)

Possible Strategies
to Improve PoS

Concern they are gaining


more work, not less

Believe the opportunity.

Supportive

Strongly Supportive

90%

Rewarded for
developing, not
replicating applications

Not as attractive as
new productivity
launch
Not tech savvy
Dont see tech service
as a partner

Not on their dashboards

Lab heads asked


for this.

Supportive

Strongly Supportive

70%

Its their vision.

This is a low-risk way to


reach growth targets
and premium source of
marketing campaign
ideas.

Neutral

This is a low-risk way to


reach growth targets.

Neutral

Supportive

40%

Supportive

60%

Pseudonym.

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Engage innovators
andearly adopters.
Leadership set
priorities for all of their
work, let some drop.
OUSet TS growth
objectives.
USEngage tech
directors.
Develop new
incentives.
Seek help from
marketer to develop.

Group metrics on
the acceleration
dashboard.
Promote the value
to the executive
conference.

Improve PORTFOLIO-LEVEL REQUIREMENTS VISIBILITY


CIGNAs Portfolio-Level Requirements Management
Group Project According to Shared Impact on Business

Business project priority ranking results in


a list of projects to be completed based on
initial capacity estimates.

The project portfolio is segmented into


groups of projects according to shared impact
on business processes.

Projects are regrouped into delivery


flights based on business need, which
processes they affect, and where in the
process chain their effect is prominent.

Business Priority

Business Process Implications

Business Process Synergy

What is the customers desired


priority and what is our current
delivery capacity?

How much process transformation


will be realized and which processes will
be affected?

What is the delivery impact on business


workflows across dependent business
processes?

1. ERP Finance Upgrade


2. Customer Information Database
3. HIPAA Rights Repository

Customer
Service

2. Customer Information Database


3. HIPAA Rights Repository
7. Benefits Management Portal

Flight
One

5. Receipt Management System


6. Bill Processing System
9. E-Billing Presentation

4. Claim Submission System


5. Receipt Management System
6. Bill Processing System

Claims
Processing

7. Benefits Management Portal

5. Receipt Management System


4. Claim Submission System
6. Bill Processing System

1. ERP Finance Upgrade


Flight
Two

8. Medicaid Reporting Repository


9. E-Billing Presentation

General
Accounting

3. HIPAA Rights Repository


8. Medicaid Reporting
Repository

1. ERP Finance Upgrade


8. Medicaid Reporting Repository
9. E-Billing Presentation

Flight
Three

7. Benefits Management Portal


2. Customer Information Database
4. Claim Submission System

For smaller, less-strategic projects,


CIGNA creates alternative paths to
expedite requirements gathering.
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Management
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Requirements
Management
and Analysis

28

Improve PORTFOLIO-LEVEL REQUIREMENTS VISIBILITY (CONTINUED)


CIGNAs Portfolio-Level Requirements Management (Continued)
Alternate Path for Requirements Delivery
Qualifying Criteria
Approved and funded enterprise projects that meet the following criteria will qualify for the alternate path for requirements development:
Goal is to improve process performance, operating efficiency, and/or cost of a current business process.
Minimal changes to current business process are anticipated.
The change has already been identified and defined by the business area.
Process impacts are limited to 1 to 2 domains, and target specific business functions in either or both of those domains.

Nonqualifying Criteria
Enterprise projects that would not qualify for the alternate path would meet the following criteria:
New technology is anticipated for solution (feeds, data exchanges, etc.).
New business process and/or major reengineered business process is anticipated.
New operations workforce/functions is anticipated to support solution.

PPR Staffing Assumptions


Functional BA resources within Project Process Requirements (PPR) will be assigned to these initiatives.
Functional BA resources will use current is process map as basis for identifying specific process-impacted areas to be worked and will define use cases to outline requirements
forthis portion of the process map.
Functional BA will be responsible for integrating the use cases created for these projects back into the process map, so these detailed changes are not lost amid the larger flight
plan work; process modeler (PM) will work with functional BAs to ensure accurate integration of changes.
Work effort for initiatives on alternate path may need to be revisited if during working these items, the changes are found to have a greater impact on the targeted business
process(es) than originally expected.
To support these projects, BA resources will work these initiatives directlywith expertise spanning appropriate domains.

Proposed Timeline
Timeline for initiatives being addressed in alternate path will run parallel to the PPR flight schedules; specific milestones for each initiative will be negotiated with the PM and domain
lead to confirm schedule for requirements delivery for smaller initiatives following the alternate path.
Use case deliverables will be the artifact to be delivered by PPR resources.
Requirements Traceability Matrix deliverable will be established also by the functional BA(s) working the project, as a means to capture initial project information that summarizes
the needs for the process modification as well as to establish traceable documentation for the change as it moves into design, development, and testing.
Business SME validation will be conducted by the functional BA (informal basis) to confirm detailed changes are accurate and meet the project objectives.

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Improve PORTFOLIO-LEVEL REQUIREMENTS VISIBILITY (CONTINUED)


CIGNAs Portfolio-Level Requirements Management (Continued)
Project Impact Assessment on Should Business Processes

The impact of a project on


a business process step
represents the magnitude
of process transformation.

High Impact

Medium Impact

Low Impact

Customer Service
Claim Correspondence
Accounting

Claim Adjudication

Payment

Check
Fund
Paper
Claim
Electronic ClaimClaim AdjudicationNon-Medical
Claim
Correspondence
Payment
Claims
Processing
Claim Pricing
Medical Claims
Generation
Transfers
Claims
Receipt Process Receipt Process
Check
Fund
Paper
Claim
Electronic ClaimClaim AdjudicationNon-Medical
Claim
Correspondence
Payment
Claim Pricing
Medical Claims
Generation
Transfers
Claims
Receipt Process Receipt Process
M
H
M
Check
Fund
Non-Medical
Paper Claim
Electronic Claim
Claim Pricing
Medical Claims
Generation
TransfersM
Claims
Receipt Process
Receipt Process
MH
H
MM
M

E-Presentation Portal
E-Presentation
Portal System
Flight
Projects
Receipt
Management
E-Presentation
Portal System
Receipt
Management
Customer
Information
Database

MH

M
M

Receipt
Management
System
Customer
Information
Database
Provider
Management
System

Customer
Information
Database
Provider
Management
System
Member
Web Site Redesign

HL

MH

HL

MH

ML

L M

H L

LL

ML L

MH

Provider
System
Member
Web
SiteRights
Redesign
HIPAAManagement
Member
Repository
Member
Website
Redesign
HIPAA
Member
RightsSystem
Repository
Medicaid
Reporting

HIPAA
Member
RightsSystem
Repository
Medicaid
Reporting

LL

LL

MH

Medicaid Reporting System

Similar or redundant system functionality is identified


to consolidate requirements gathering across projects
and expedite requirements elicitation.

MM
L

M
M

L
L

3
M

Multiple process
impacts in a row
indicate process
flow and information
dependencies.

M
4

CIGNA minimizes time spent on each


subsequent flight by building and actively
maintaining business process libraries.

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Management
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Requirements
Management
and Analysis

30

Improve PORTFOLIO-LEVEL REQUIREMENTS VISIBILITY (CONTINUED)


CIGNAs Portfolio-Level Requirements Management (Continued)
Requirements Clarification: Roles, Responsibilities, and Escalation Process

1 As Is Process Modeling
Owner
Process Modelers
15% of Requirements Group
Responsibility
Model as is business processes to
denote the flow of information and
cross-connections among process
segments at all levels.

2 Should Process/High-Level
Requirements
Owner
Senior Business Analysts
35% of Requirements Group

Key Deliverables

Responsibility

Business process maps, which highlight


interdependencies within and across
process areas

Capture business process dependencies


in terms of sequential activities to
uncover asis to should business
process variance.

B
If a requirement interdependency is the product
of a new process interdependency, senior
business analysts work with process modelers to
evaluate and resolve the new interdependency
together and update business process maps and
IS/SHOULD Summaries accordingly.

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Owner
Functional Business Analysts
50% of Requirements Group

Key Deliverables

Responsibility

IS/SHOULD Process Change


Summary, which outlines how process
functionalities interrelate

Elicit detailed requirements consistent


with as is and should business
process models.
Key Deliverables

A
If a new requirement interdependency is uncovered
during the detailed phase, functional business
analysts work with senior business analysts to
update IS/SHOULD Process Change Summaries.

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3 Detailed Requirements

Business use cases, which include


activity flows and new process
modifications

Improve PORTFOLIO-LEVEL REQUIREMENTS VISIBILITY (CONTINUED)


CIGNAs Portfolio-Level Requirements Management (Continued)
Project, Process, Requirements Team Responsibilities by Phase
Project Initiation/
Awareness Meeting

Review project documentation (e.g., project


proposal, project/product description) for
clarity, completeness, and potential domain/
function impact.
Work with Enterprise PM (EPM) to achieve
clarity and completeness of project scope if
needed.
Provide high-level time/cost estimates for
PPR activities to EPM.
Perform a high-level process decomposition
to identify the potential processes impacted
by the project and across projects.
Share outcome from the decomposition
for review with EPMs and subsequently
with matrix partners.
Identify and communicate domain lead to EPM.

Planning

Requirements

Plan and schedule high-level requirements


sessions by domain based on project
decomposition.
Engage business subject matter experts
(SMEs) to support and plan requirements
definition.
Work with EPM to define requirement
kickoff date based on PPR capacity.
Outline/document proposed requirement
gathering dates (high level, process
modeling, and detailed) for review by EPM
and subsequently by matrix partners based
on capacity, project, and process synergies.

High-Level Requirements

Assist with issue resolution, provide


clarification, and respond to questions.
Support scope change management process
and update documentation as needed

Testing

Provide input to any phasing of solutions.


Assist with issue resolution, provide
clarification, and respond to questions.
Update business requirements traceability
document with assistance from System
Analysis to ensure design traces back to
requirements.
Support design documents and walk
through to verify design meets business
requirements.
Support scope change management
process and update documentation as
needed.

Detail Requirements

Facilitate and document high-level requirements and process models focused on


specific processes within a domain (not project specific).
Create requirements traceability matrix based on high-level requirements including
process and project views.
Create Use Case Inventory by process/project and assign owners for completion.
Conduct high-level requirements sessions walkthrough with matrix partners
stressing manual touchpoints and new or eliminated processes based on high-level
requirements.
Identify and document issues; assign owners and facilitate requirement issue
resolution.
Based on completed high-level requirements, assess and update estimates as
needed.

Construction

Design

Provide test support for test scenario


identification and defect resolution.

Conduct end-to-end domain/project review.


Plan and schedule detailed use case sessions.
Create and maintain detailed process models and detailed business use cases.
Build/update process maps and use case library (ongoing).
Ensure appropriate representation in meetings to complete detailed
process models and business use cases (e.g., SME, SA).
Distribute materials and conduct walkthrough of detailed process models.
Distribute materials and conduct walkthrough of detailed business use cases.
Identify and document issues; assign owners and facilitate requirement issue resolution.
Update requirements traceability documents based on detailed requirement activities.
Provide information to project test leads as input to project test strategy.
Support scope change management process and update documentation as appropriate.

Implementation

Provide input for implementation planning.


Provide support for clarifying questions, etc.

Warranty

Provide support for clarifying questions, etc.

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Management
and Analysis

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Requirements
Management
and Analysis

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32

Section 3: Creating
Compelling Business Cases

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Creating Compelling
Business Cases

33

Creating Compelling
Business Cases

34

CREATING COMPELLING BUSINESS CASES


Articulate and Quantify Business Benefits
Measure and communicate proposed project benefits by linking components
of business value to requirements.
Fenton, Inc.s1 Functionality ROI Maximization35
Fenton Inc. itemizes the benefits in the business case, quantifying the value
ofapplication functionality and tracking project ROI trends at the portfolio level.
1. Trace benefits, not just requirements: Explicitly link components of
business value to application requirements and system features so that
they can be traced through the lifecycle.
2. Be an order shaper when it comes to benefits: Compel business
partners to articulate a projects benefits in terms of quantifiable
components that are directly tied to a particular aspect of their
workflow.
3. Prioritize features and requirements based on business benefit: Benefit
is the most meaningful metric for determining a projects value. Be
specific when it comes to quantifying those values.
4. Track ROI at the portfolio level: Only a portfolio view can detect trends
across categories and effectively communicate value delivery at the
enterprise level.
When to Use
To itemize benefits in a business case
To trace benefits through the project lifecycle
To prioritize requirements according to quantifiable benefits
To track project ROI trends at the portfolio level
Essential

Reference

Specialized

McDonalds Business Case Abstract44


BAs are called by the business relationship managers to help create business
case abstracts and prepare any related preproject work, such as helping with
cost estimation.
When to Use
To create business case abstracts

Essential

Pseudonym.

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Specialized

Omega Corporations1 Standard Business Case Criteria45


Omega Corporation revises business case review processes for IT projects to instill
business sponsor accountability and emphasize quantifiable, hard business
benefits. The process starts with a standard business case that captures total
five-year costs of ownership, including common hidden costs often overlooked
by business users during business case preparation. These proposals include
architecture compliance, sourcing considerations, and operating requirements,
such as infrastructure costs, maintenance, training, and support.
When to Use
To create a business case proposal capturing hidden requirements
Essential

Reference

Specialized

Citrixs Business Case Summary46


Citrix synthesizes key IT project dataincluding financial metrics, risk
indicators, and business justificationin a one-page format for easy steering
committee review.
When to Use
To create a high-level business summary emphasizing quantifiable
business benefits

Essential
1

Reference

Reference

Specialized

ARTICULATE AND QUANTIFY BUSINESS BENEFITS

Fenton, Inc.s Functionality ROI Maximization


1. Connect Application Functionality to the Drivers of Business Value

Business Value Cascade

Key Challenges

Business Value Realization Steps

Business Case

Business
Value
Mapping

Monolithic business case

Itemizing the
benefits in the
business case

Business Value
Components

2
Component 1

Component 2

Business value drivers are


not connected to specific
business activities.

High-Level
Requirements
Business Activity 1

Business Activity 2

Benefit-Driven
Feature
Prioritization

Quantifying the
value of application
functionality

Business Activity 3

3
System Capabilities
Application
Functionality
1

Application
Functionality
2

Application
Functionality
3

Application
Functionality
4

Business activities dont


tie to specific application
functionality.

Portfolio ROI
Dashboard

Tracking project
ROI trends at the
portfolio level

Pseudonym.

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Creating Compelling
Business Cases

35

Creating Compelling
Business Cases

36

ARTICULATE AND QUANTIFY BUSINESS BENEFITS (CONTINUED)

Fenton, Inc.s Functionality ROI Maximization (Continued)


2. Connect Business Value to Business Process
Expected Benefits from Business Case

Business Value Components

Computer Telephony Integration Project

Component Quantification Template

Efficiency Goals

$7.1 M
Cost
Reduction

Revenue
Increases

$1.1 M

Goal:

a. Increased use of call automation

$500 K

b. Timely handling of call

$275 K

c. Efficient transfer to sales

$25 K

d. Reduced calls to help desk

$100 K

e. Reduced call escalation

$200 K

Target:

74 seconds

Improvement:

11 seconds

Cost Savings:

$275 K

Calculation:

The 11-second improvement is the measurable value


Fenton, Inc. monitors to track benefits realization.

$5 M
Total = $6 M

Computer Telephony Integration Workflow

Illustrative

Efficient transfer
to sales = $25 K

No
Customer opts
for live person.

Customer is
greeted by
name.

One
and
done?

Yes

Increased customer
retention = $1 M

Sales referral
Help ticket
opened
Escalated call

a
1

Increased use of call


automation = $500 K

Pseudonym.

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Timely handling
of call = $275 K

Intelligent call
routing = $5 M

390 hours x $13.55 x


52 = $275 K

$1 M

b. Intelligent call routing

Start

85 seconds

Effectiveness Goals
a. Increased customer retention

Customer calls
automated
system.

Baseline:

Total = $1.1 M

$6 M

Timely handling of call

Reduced calls to
help desk = $100 K

Reduced call
escalation = $200 K

Call complete

End

ARTICULATE AND QUANTIFY BUSINESS BENEFITS (CONTINUED)

Fenton, Inc.s Functionality ROI Maximization (Continued)


2. Connect Business Value to Business Process (Continued)

Evaluators are asked to provide a brief written


assessment for each of the seven categories and a brief
explanation of the rationale behind their scoring decision.

Discretionary Project Assessment


Categories

Scoring Options

Scoring Guidelines

Quantifiable Business Objectives (QBOs)


Evaluate the projects objectives and needs,
based on its inherent ability to be understood
and documented in a clear, unambiguous, and
verifiable manner.

Objectives and needs are very clearly understood and are verifiable and attainable.

Lack of clarity exists with respect to the projects objectives and needs, or it is uncertain how the business objectives can be verified
or satisfied.

No ability to state project objectives and needs in unambiguous and/or verifiable terms; little certainty on how the project will deliver
real business value.

Evaluate the project for its anticipated impact on


the customer. Indicate whether the customer is
internal or external.

Project implementation is expected to be virtually transparent to the external customer AND the project will have little impact on
internal customers.

Project is expected to have marginal impact on the external customer AND/OR significant impact on the internal customer.

Definition: ImpactAffects the product or service


the customer receives and/or the manner in which
they receive it

Customer Impact

Project is expected to have significant impact on the external customer AND significant impact on the internal customer.

Business Process Reengineering (Cost Reduction)


Evaluate the project for opportunities to reduce
operating costs through the enhancement of
business process performance.

Proper use of technology requires very little workflow integration. Contextual and environmental factors do not weigh significantly
on the ability of the technology component to yield measurable business value.

Marginal opportunities to enhance process performance may exist, but significant gains in business value may not be certain. Also
the projects success likely will not depend on business process enhancements.

Six Sigma and related techniques, focusing on process efficiency and developing robustness against environmental noise, will most
certainly deliver significant business value. Project success may depend on it.

Clear and concise understanding of how the project benefits will result in a positive, quantified impact on the sponsors business
objectives. The benefit impact is supported by precise and verifiable cost and/or revenue data.

A case has been articulated for how the project can yield benefits that will positively impact the sponsors business objectives, but the
benefits are not quantified, and the proposal is not supported by precise and verifiable cost and/or revenue data.

Little or no case has been made for how the project will yield quantifiable benefits that will positively impact the sponsors business.

Project Objectives and Needs


Evaluate the project for an understanding of how
its benefits will translate to a quantified, positive
impact on the sponsoring entitys business
objectives.

Three most important criteria in determining whether intervention is required


1

Pseudonym.

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Creating Compelling
Business Cases

37

Creating Compelling
Business Cases

38

ARTICULATE AND QUANTIFY BUSINESS BENEFITS (CONTINUED)


Fenton, Inc.s Functionality ROI Maximization (Continued)
2. Connect Business Value to Business Process (Continued)
Discretionary Project Assessment
Categories

Scoring Options

Scoring Guidelines

Profit Potential (Revenue Growth)


Evaluate the projects or products impact on, or
capacity to generate, profitable revenue growth.

Project objectives are not likely to drive significant, profitable revenue generation. The use of Six Sigma resources is not warranted
based solely on profit potential.

Project objectives may drive significant, profitable revenue generation. The use of Six Sigma resources is likely warranted based
on profit potential.

Project objectives have a large potential to drive substantial, profitable revenue growth. The use of Six Sigma resources is most
certainly warranted based on profit potential.

The project has the full support of the sponsoring entities AND no conflicting needs exist among those entities
(or only one sponsoring entity is involved).

There is moderate support from the sponsoring entities AND/OR there are limited conflicts between the needs
of sponsoring entities.

There is limited support from the sponsoring entities AND there are potentially significant conflicts between the needs
of sponsoring entities.

Normal operations in the target environment will involve very little depth of human interaction with technology AND the number of
human users that directly interact with technology will be relatively insignificant.

Normal operation in the target environment may involve significant depth of human interaction with technology AND/OR the
number of human users that directly interact with technology may be significant.

Normal operation in the target environment will involve significant depth of human interaction with technology AND the number
of human users that directly interact with technology will most certainly be significant.

Sponsor Interdependency
Evaluate the project based on the level
of sponsorship interdependency.

Human Interaction with Technology


Evaluate the project based on the anticipated
degree of human interaction with technology
components in the use environment.

Total Score (Sum of Scores as a Percentage)


Summary
Provide an overall summary of the project and recommendations.

Pseudonym.

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Threshold
(4563)

Intervention Required

(3144)

Reevaluate

(730)

No Intervention Required

ARTICULATE AND QUANTIFY BUSINESS BENEFITS (CONTINUED)

Fenton, Inc.s Functionality ROI Maximization (Continued)


2. Connect Business Value to Business Process (Continued)
Efficiency and Effectiveness of Business Process Performance

Business Process

Process Output

Quantifiable Business Objectives (QBO)


Process Efficiency

Speed

A Measure of Net Business Value

QBO opportunity: Measure


and decrease operating costs.

QBO opportunity: Measure


and increase customer value.

Cost Reduction2

Revenue Attainment2

Consistent
Procedures

Waste Rework/
Elimination
Handoffs
of Work Steps

Defect-Reduction
Products/Services

Critical Attributes of Cost

Pseudonym.

Representative list.

Process Effectiveness

Customer-Valued
Products/Services

Critical Attributes of Quality

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Creating Compelling
Business Cases

39

Creating Compelling
Business Cases

ARTICULATE AND QUANTIFY BUSINESS BENEFITS (Continued)


Fenton, Inc.s Functionality ROI Maximization (Continued)
3. Quantify Each Features Impact on a Projects Business Value Components
Business Value Translation Template
Business Objective

Intelligent Call Routing

QBO Statement

Increase revenue by $X million/year by routing calls into the call center matching the individual customer need with an associate trained to handle that customers
relationship and $X million from customer retention annually. This strategy is expected to expand customer relationships, retain customer households, and increase
employee engagement.

Problem

Current call routing lacks the ability to match individual customers explicit and implicit needs to a specifically skilled associate trained to handle his or her relationship.

Affected Areas

1. Direct Banking Sales


2. Product Group
3. Service and Specialty Associates
4. External Customers
5. Self-Service Customers

Impact

1. Direct banking sales associates are not able to get more qualified referrals for expansion opportunities.
2. The product group is not able to position and sell its products efficiently within the call center.
3. Service and specialty associates are not presented with enough customer information to make a qualified expansion referral or attempt to save
the customer household.
4. External customers may not receive the most efficient customer service because associates are not trained to handle their specific financial needs.
5. Self-service customers who never opt-out of the IVR are not a population that associates have an opportunity to speak with to explore the needs
of those customers.

Solution

Need

Features

Increase revenue, customer retention, employee engagement, and customer satisfaction and improve the customer experience.
Utilize skill-based call routing and BSR together.
Enable associates to talk to customer base previously untouched (do not call and self-service only).
Need
Need
Need
Need

for associates to talk with customer segments previously not accessible to associates
for select customer groups to have their calls specially routed
to provide the associates with critical customer information pertaining to the customers interaction and relationship
to be able to effectively report on call routing and call harvesting

The system shall identify which customers shall be harvested.


The system shall provide the flexibility to easily change harvesting instructions.
The system shall provide a feedback loop to identify when a call was harvested.
The system shall provide the ability to reorder queues based on harvesting instructions.
The system shall only harvest select, best-of-the-best customer groups out of the IVR.
When the customer is harvested, the system shall route the customer to the correct associate based on the routing instructions.
The system must be able to read harvesting instructions efficiently so as not to impact the customers time to transfer to an associate.
The system shall provide whisper functionality to alert associate that the call is harvested.

Pseudonym.

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40
1

ARTICULATE AND QUANTIFY BUSINESS BENEFITS (Continued)

Fenton, Inc.s Functionality ROI Maximization (Continued)


4. Track ROI at the Portfolio Level
A Heat Map Representation Clarifies the Distribution of Portfolio ROI
Business Revenue
Customer ValueBase

The size of the bubble


depicts the project return.

Customer ValueCompetitive
Customer ValueDifferentiated

High

Cost-Efficiency/Compliance

Key Advantages
High-impact communication tool

Portfolio pattern recognition

ROI trend monitoring

Business Value

Low
Low

High
Project Cost

Pseudonym.

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Creating Compelling
Business Cases

41

Creating Compelling
Business Cases

42

ARTICULATE AND QUANTIFY BUSINESS BENEFITS (Continued)


Fenton, Inc.s Functionality ROI Maximization (Continued)
4. Track ROI at the Portfolio Level (Continued)
Business Value Categories
Business Value Category

Definition

QBO Requirements

Customer ValueDifferentiated

Establishes a unique capability for the external customer over ones peers/
competitors based on cost, quality, speed, and/or functionality

VOC illustrates industry gap to meet order of magnitude customer needs.

Ethnography to survey techniques

Predictive market analytics

VOC illustrates companys gap to competitors to meet customer needs.

Focus group to survey techniques

Responsive market analytics

Customer ValueCompetitive

Customer ValueBase

Provides where properties are defined as a enabling minimum capabilities for


the external customera commodity in nature

N/AMay be combined with other business outcomes

Business Revenue

Limited received value gain for the external customer but enabling revenue gain
to the company

Present historical, data-based customer behavior patterns to support proposed


change.

Existing or competitors customers


N/ASelf-explanatory

Consolidation/Acquisition

Acquisition or divestiture activities

Cost Reduction/Avoidance

Pure cost reduction or avoidance play with limited ongoing efficiency gains

Elimination or avoidance of one-time costs

Defensive/Renewal

Renewal of applications/technologies/business processes to maintain


capabilities with limited external customer value or internal efficiency gains

Demonstrate no linkage to customer value or operating efficiency, or cost


reduction/avoidance.

Baseline current state; demonstrate future state achievement to baseline

Must support X number of future capabilities

Measurable expectation of capability achievement

Demonstrate scalability, cost effectiveness, supportability, etc.

Enterprise Capability

Provides where there are optional features for the external customer and/or
failing to match the equivalent capability of peers/competitors will erode ones
competitive standing over time

Provides broad underlying capabilities supporting multiple LOBs, projects, or


future corporate/strategic initiatives

Operating Efficiency

Provides ongoing internal cost reductions or other supporting internal


operational factors (e.g., time to deliver, internal consolidations)

Demonstration of activities that will result in a reduction of ongoing costs (per unit
or total business process)

Regulatory/Compliance

As required by government, internal audits or other regulations with limited


external customer value or internal efficiency gains

Demonstrate ability to maintain current operating efficiency.

Demonstrate effectiveness of compliance solution.

Demonstrate potential financial impact to corporation.

Explain impact to internal or external customers.

Pseudonym.

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ARTICULATE AND QUANTIFY BUSINESS BENEFITS (Continued)

Fenton, Inc.s Functionality ROI Maximization (Continued)


4. Track ROI at the Portfolio Level (Continued)
Business Value Categories (Continued)
Business Benefit Scorecard

Business
Outcome

Project
Count

Percentage
of Projects

Total
Investments

Percentage
of Investment

Average
Cost per
Project

Cost
Relationship
to Average

QBO $

QBO %

Average
QBO per
Project

QBO $ per
Investments

Business
Revenue

11%

$8,052,504

11%

$1,610,501

85.5%

$25,341,001

7%

$5,068,200

$3.15

Customer
ValueBase

10

5%

$1,520,317

2%

$152,031

8.07%

$4,000,430

1%

$400,043

$2.63

Customer
Value
Competitive

13

12%

$10,314,678

14%

$793,436

42.1%

$86,531,408

23%

$6,656,262

$8.39

Customer
Value
Differentiated

7%

$32,533,255

45%

$6,506,651

345.4%

$168,121,704

45%

$33,624,341

$5.12

Cost-Efficiency/
Compliance

58

65%

$20,600,152

28%

$355,175

18.9%

$91,196,549

24%

$1,572,354

$4.43

Grand Total

91

100%

$73,020,906 100%

$375,191,092

100%

$47,321,200

$5.14

$1,883,559 100%

Pseudonym.

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Creating Compelling
Business Cases

43

Creating Compelling
Business Cases

ARTICULATE AND QUANTIFY BUSINESS BENEFITS (CONTINUED)


McDonalds Business Case Abstract
Illustrative Example
Real Estate and Construction Cost Project

Real Estate and Construction Cost Project

Objective

Benefits

Provide timely and accurate real estate and construction capital expenditure
information; this will enhance McDonalds ability to optimize investment
decisions, drive down costs, and speed the administration of the closeout of
construction projects.
Solution Summary
Improve investment decisions and strengthen McDonalds leverage with
suppliers during construction project negotiation by:

Providing timely and accurate reporting of real estate and construction


capital expenditure plans, actuals, and projections;
Driving supplier optimization and savings through comparison of project
component costs (i.e., asphalt, concrete, framing); this will strengthen cost
controls by enabling reporting on baseline commodity prices; and
Driving general contractor savings through comparisons of construction
costs and time to complete across multiple projects, phases, building
types, geography, and square footage.

Improve accounting administration efficiencies of existing restaurant


remodels and new site construction by:

Automating creation of capital expenditure reports;


Reducing financial reconciliation effort through improved system
integration;
Reducing project closeout time by improved system integration;
Enabling access to the new application by all key stakeholders, which
includes McDonalds remote workers;
Centralized controls of signing limits for change orders and invoices; and
Centralized system that includes all real estate and construction costs.

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Direct/Hard SavingsNone
Indirect/Soft Benefits
Construction supplier optimization and cost avoidance
General contractor optimization and cost avoidance
Improved accounting administration efficiencies
TIB Screens
Business AlignmentMODERATE
Be the most productive provider by achieving G&A and capital
expenditure targets
LeverageMODERATEUS/Corp. solution
Financial StrengthWEAKBenefits are indirect/soft

Risks

Software vendors able to meet McDonalds business requirements


without extensive custom programming

44

ARTICULATE AND QUANTIFY BUSINESS BENEFITS (CONTINUED)

Omega Corporations Standard Business Case Criteria


Standard IT Project Business Case
Financial Analysis

Architecture Review

Project Valuation

Payback period
NPV
IRR
ROI

Five-Year CostBenefit Analysis

Benefit Analysis
Software capitalization
R&D tax credit analysis
Detailed cash flow and P&L impact including:
Benefits (e.g., increased revenue, revenue
protection, expense reductions, cost avoidance)
Project costs
Capital (hardware, software, and other)
Expenses
Operating expenses
Support staff
Ongoing maintenance (hardware, software)
Training
Communications, etc.

Project category
Strategic development
Mandated initiatives
Discretionary enhancements
Consistency with IT architecture and data
standards
Opportunities to use existing functionality
Critical timing issues

Opportunity Analysis

Sourcing Review

Project vendor selection process


Opportunities to reuse existing contracts
Offshore development opportunities
Lease-versus-buy analysis

Operations Review

Project description, rationale, intended


functionality
Project steering committee members
Business risks to benefits realization
Technology performance risks
Alternatives considered
Quantifiable cost of not proceeding
Project dependencies on other initiatives
Staffing requirements
Legal, regulatory, compliance considerations
Training requirements
Retirement strategy
Project delivery plan, scheduled milestones

Impact on existing infrastructure, software,


andservice contracts
Ongoing maintenance requirements
Savings and costs associated with
decommissioning assets
Contingency and recovery costs
Security and privacy compliance
Expected service quality

Pseudonym.

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Creating Compelling
Business Cases

45

Creating Compelling
Business Cases

46

ARTICULATE AND QUANTIFY BUSINESS BENEFITS (CONTINUED)


Cirtrixs Business Case Summary
Enterprise Strategic Goals

The IT organization
compiles the
summary
from existing
business case
documentation.

Business Objectives

IT Objectives

Value and Visibility

Controls

Align IT with Business

High-Level Project Business Case

Multiple Products

Cost Reduction

Support Shared Admin and Ops

Business Intelligence Platform

Customer Leverage

Customer Impact

Be First and Best Citrix Customer

Sponsoring Organization:

Finance

Next-Generation Partnership

Employee Impact

Sponsor:
Submission Date:

George Deaver
8/4/xx

Sustainable Growth

Continuous Improvement

Competitive Excellence

Productivity Gains

IT Team:

Business Intellgence

People Development

Revenue Generating

Ops Excellence Through


Consistent Framework
Provide Best Customer
Experience

Risk Mitigation

Business Rationale
Need to actively manage enterprise data flow using standard data architecture

Establish pilot test platform with engineering group and apply lessons learned.

Duplicate data entry between business unit interfaces reduces data quality,
leading to inefficiencies and missed opportunities

Use internal resources for build and maintenance to build and retain tool competence.
Run in parallel with current platform for two weeks.

Actuals need to be tracked against forecasts to measure performance

Break delivery into phases with initial release not overlapping with break points in strategic
planning cycle.

Project Description

Milestones

This project will accomplish the following:

Project Start
Project Go-Live
Project Close

1. Compare existing software to competitors to determine if we wish to


continue with them or select another vendor.
2. Select vendor and complete contract negotiations.
3. Configure software.
4. Train users.
5. Deploy to production.

Sept.
Jan.
July

Expected Impact
Project Financials

Comments

Total Capital

$200,000 Data entry time reduced: 30 mins/week


= .5hrs * 50 * 40 = 1,000 hrs p.a.
Improved decision making:
median project cost $100,000 * 100 p.a.
* 2% improvement = $200 K
$100,000

Total Expense

$20,000

Total Costs

$120,000

IT Headcount (FTE)

0.50

Total Benefits

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Metric Description

Quantification

Use of enhanced functionality for data capture

100%

20% support costs

Percentage migration of data capture to new platform 75%

Will need 2 FTEs for 3 months

Feed of enhanced BI inputs into SAP

Project objectives
are linked to a
predefined list of
enterprise strategic,
business-focused,
and IT-centric goals.

Section 4: Providing
Accurate Project Effort
Estimates

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Providing Accurate
Project Effort
Estimates

47

Providing Accurate
Project Effort
Estimates

48

PROVIDING ACCURATE PROJECT EFFORT ESTIMATES


Estimate Resource Requirements

Manage Time and Budget on Agile Projects

Use a resource calculator to estimate resource needs based on elements


of project complexity.

Continually prioritize the product catalog and build contingency buffers into
the plan to set realistic expectations for total cost and duration.

Marriotts Staff Resource Estimation Calculator50


Marriott disaggregates projects into common tasks and uses a calculator
to determine resource needs. Categories are weighted based on relative
complexity to generate an overall score. Using the overall score, the calculator
categorizes projects as requiring low to high labor to complete. For each task,
labor categories directly convert to resource requirements in hours.

Raytheons Earned Value Metrics for Agile Projects53


Raytheon focuses scarce sponsor time and attention on critical risks and
opportunities. Raytheons earned value metrics for Agile projects help teams
to estimate cost and schedule despite the iterative and more ambiguous
direction of Agile projects.

When to Use
To estimate project requirements at each task
To determine resource needs
Essential

Reference

When to Use
To define requirements in a way that helps with project plan and estimate
To make story point estimates for all features
To inform business about potential risks and opportunities

Specialized

Essential

Reference

Estimate Costs and Risks for Agile Projects

Estimate Benefits for Agile Projects

Allocate project funds and establish project schedule based on an analysis


of best-, expected-, and worst-case cost scenarios.

Estimate the value of benefits using an options approach.

TransCanadas Risk-Based Estimation for Agile Projects51


BAs lead the project, breaking down high-level requirements into detailed user
stories, which delineates business rules and their corresponding validation
messages enabling developers to easily connect requirements to unit tests. To
establish a baseline project cost, the time and effort required to develop each
user story is estimated. Project funding is allocated based on the coverage of
cost scenarios: low-risk projects receive expected funding, high-risk projects
receive worst-case scenario funding. Overall, the Monte Carlo simulation allows
for more informed decisions about project funding.
When to Use
To translate high-level requirements into user stories for Agile projects
To help developers connect requirements to unit tests
Essential
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Reference

Specialized

Specialized

British Airways and Emergens Initial Value Estimate for Agile Projects58
British Airways estimates the value of major benefits streams and uses these
estimates to prioritize work by Agile teams. As the team releases the solution
on an iterative basis, actual value realization can be used to refine initial
estimates and reprioritize. Understanding that benefits value are not static,
British Airways uses an options approach to control delivery risks.
When to Use
To elicit goals and testable metrics of project realization from business sponsors
To Identify and prioritize benefits for release

Essential

Reference

Specialized

PROVIDING ACCURATE PROJECT EFFORT ESTIMATES (continued)


Estimate Testing Resources
Estimate testing effort by using the probability of discovering an error.
Hartfords Managing Time and Budget Trade-Offs in Testing63
Hartford uses a risk-based method for managing testing. Using the probability
of finding an error, Hartford makes early but accurate estimates of the amount
of testing resources that will be required.
When to Use
To rank test scenarios by level of complexity
To estimate amount of testing resources required
Essential

Reference

Specialized

Estimate Service Cost


Price services based on their consumption patterns.
SKFs Reusable Services for Large-Scale Integrations72
SKF fortifies services for enterprise-wide reuse by pricing service consumption
intensity, rather than individual service usage.
When to Use
To understand consumption patterns when formulating business
requirements
To understand data standards and definitions for services
To have informed conversations with solution architects and Applications
support staff when estimating services
Essential

Reference

Specialized

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Providing Accurate
Project Effort
Estimates

49

Providing Accurate
Project Effort
Estimates

50

Estimate Resource Requirements


Marriotts Staff Resource Estimation Calculator
Illustrative
Task Areas

Database Architecture
Capacity Planning/Performance Engineering
Web Engineering
Desktop Certification
User and Device Security
Web-Based Access Control Engineering

1. Application Technology
COTS
Custom
Other (New to Marriott)
Report/Batch Component
Weight 2

2
4
5
3
Score 8

2. Number of Tiers
One
Two
Three
Four
> Four
Weight 1

Deployment Services
Server Builds
Middleware (Application Integration Solutions)
ID Admin and User Provisioning
Security Architecture
WAN Engineering
LAN Engineering
Configuration Management
Infrastructure Application
Access Control Implementation
Functional Support

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One
Two
Three
Four
> Four
Weight 1

1
1
2
3
4
Score 1

Weight 4

Score 1

Weight 3

1
2
3
4
Score 8

Weight 4

High
Medium High
Medium
Medium Low
Low

WEB
Fat/Thick
Metaframe
Terminal Services
Weight 2

1
3
4
5
Score 2

Hours and Assessment Areas


Development
Estimate
Requirements
and Performance
36

Test
Script and
Load Test
72

Production
Troubleshoot
Performance
Issues
12

TAM Plugin
AMS Junction

Weight 2

2
3

Score 4

< 5
610
1120
> 20
Weight 5

2
3
4
5

Questions are designed to


determine the complexity
of the project and the
operational environment of
the end product to generate
reliable work estimates.

Score 15

11. Data Requirements


1
3
1
3
Score 3

6. Customization Level
High
Medium
Low

Labor Category

Score 12

10. Number of Business Functions

5. Applications Details
Upgrade to Existing App (Same Functionality)
Upgrade to Existing App (New Functionality)
Replacing Existing Application
New Application to Marriott

Weight 3

1
4
4
3

190210
148189
64147
2263
021

9. Extranet
1
1
2
3
4

4. Number of Interfaces
15
610
1115
> 15

7. User Base
HQ
International
Properties
Res Centers
8. Client Type

3. Number of Unique OS/Platforms

Thin Client Devices and Software

Total Complexity Score

Complexity Drivers: Capacity Planning/Performance Engineering

Project Oversight

Representative Data to Be Generated


Test Seed Data to Be Generated

Weight 5

5
5

Score 25

12. User Volumes (Total Named Users)


4
2
1
Score 8

< 100
100500
> 500
Weight 3
Total Complexity Score

1
2
3
Score 6
93

Categories and answer


choices are weighted for
relative complexity.
Total score is correlated with
estimates of up-front and
ongoing resource needs.

Estimate Costs and Risks for Agile Projects


TransCanadas Risk-Based Estimation for Agile Projects
Business Requirements
Requirements

Feature Breakdown

User Cases

Award a Non-Prearranged
Biddable Offer

1.5 Business Rules: Award a Non-Prearranged Biddable Offer


Name

Type

1.1

Assumptions

1.2

Definitions

Award
Quantity

Integer

Secure Winning Bid


Set Shipping Route

1.3

Process Flows

1.4

Screen Descriptions

1.5

Business Rules

1.6

Developer Comments

Award a Non-Prearranged
Biddable Offer

Developers write
business rule
validation logic

1. This field is editable if the corresponding


checkbox is True (i.e., checked).
2. The amount awarded to a bid cannot be
more than the max bid quantity for that bid.
System Message: Award quantity must not be
greater than max bid quantity.

based on the
defined validation
message

System Message

Validations

Checkbox

Boolean

Validation X

Bid Rate

Decimal

Validation Y

and then write


Pass/Fail unit tests.

Award quantity must not be


greater than max bid quantity.

Pass
Tests when business rules are followed
Fail
Tests that error handling works as
expected when the rules are broken

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Providing Accurate
Project Effort
Estimates

51

Providing Accurate
Project Effort
Estimates

52

Estimate Costs and Risks for Agile Projects (continued)


TransCanadas Risk-Based Estimation for Agile Projects (Continued)

Set Shipping Route


Secure Winning Bid
Estimated
Effort (Hours)
Award
a Non-Prearranged
Biddable Best
Offer
Estimated Effort (Hours)
Best
Schemes/Services
Estimated
Effort (Hours)
Best15.00
Schemes/Services
15.00
Integration Migration
Schemes/Services
15.0027.00
Integration Migration
27.00
Architect
Assistance
Integration
Migration
27.005.00
Architect Assistance
5.00
Define
Validation Rules
Architect
Assistance
5.005.00
Define Validation Rules
5.00
Backend
Define
Validation Rules
5.0077.50
Backend
77.50
UI
Backend
77.5049.50
UI
49.50
179.00
UI Total Development Time
49.50
Total Development Time
179.00
Fix
44.75
TotalBug
Development
Time
179.00
Bug Fix
44.75
Bug Code
Fix Review
44.7557.00
Code Review
57.00
Lead Assistance
CodeTech
Review
57.0060.90
Tech Lead Assistance
60.90
Story Time (Effort)
520.65
TechTotal
LeadUser
Assistance
60.90
Total User Story Time (Effort) 520.65
Total User Story Time (Effort) 520.65
Effort estimates include time
for rework and code review.

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Low-risk projects receive


expected funding (covering
50% of cost scenarios).

Range estimates allow for


best- and worst-case scenarios.

High-risk projects receive


worst-case funding (covering
90% of cost scenarios).

100%

Expected Worst
Expected Worst
27.00 Worst
52.00
Expected
27.00
52.00
109.00
27.0052.00 52.00
52.00
109.00
11.00 109.00
17.50
52.00
11.00
17.50
11.0010.00 17.5015.00
10.00
15.00
10.00141.00 15.00250.00
141.00
250.00
96.50 250.00
163.00
141.00
96.50
163.00
337.50 163.00
606.50
96.50
337.50
606.50
84.38 606.50
151.63
337.50
84.38
151.63
57.00 151.63
57.00
84.38
57.00
57.00
57.00113.75 57.00208.35
113.75
208.35
1,629.98
113.75930.13 208.35
930.13
1,629.98
930.13
1,629.98

Probability of Cost Scenario (Percentage)

The largest ranges are reserved


for the highly variable cost of
development time.

Monte Carlo Simulation Results

0%
Best

Worst
Project Cost in US Dollars

Manage Time and Budget on Agile Projects


Raytheons Earned Value Metrics for Agile Projects
A Comparison of Agile and Waterfall Lifecycles
Waterfall
Concept
Definition and
Business Case
Approval

Requirements
Definition

Detailed requirements
definition specifies
all of the technical
functionality that must
be built.

Development and
QA/Testing

Design

No iterations; build to the


specifications identified earlier.
Submit change requests if needed.
End-to-end functionality is
delivered late in the cycle.

Deployment

Quality and
value of
functionality is
typically verified
only on release.

Agile
Concept
Definition and
Business Case
Approval

High-Level
Requirements
Definition

Release Scope
Planning

Sprints
Detailed Requirements
Develop
Test
Integrate
Reprioritize

Deployment

1. Gather detailed requirements by defining technical specifics of the features to be built.


2. Force prioritization and keep the total number of points constant: If business partners add to scope, deprioritize a comparable functionality.
3. Prioritize capabilities according to user needs and value.
4. Rescope or cancel requirements if effort to build exceeds benefits: Revisit the backlog to ensure that the business case for building the rest of the
capabilities is still relevant and sound.
5. Front-load pieces of functionality that users can react to (e.g., interface, data displays, reports) to address the I know it when I see it nature of the
client-needs articulation. Allowing users to see early on what capabilities they are getting reduces rework costs since functionality has not yet been
integrated with many systems. Build buy-in and create evangelists.
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Providing Accurate
Project Effort
Estimates

53

Providing Accurate
Project Effort
Estimates

Manage Time and Budget on Agile Projects (continued)


Raytheons Earned Value Metrics for Agile Projects (Continued)
To-Dos for Creating Better Project Plan and Estimates

1. Establish Effort Zero Sprints as Contingency Buffers: Raytheon uses two-week sprints
for delivery of Agile projects. Effort zero sprints are planned every five to eight sprints
depending on the complexity of the project.
2. Rebaseline Velocity If Encountering Significant Cost or Schedule Variance for Three
Consecutive Sprints: Rebaseline velocity by adjusting the number of points expected to
be completed by team members per iteration if the project is consistently over or under
budget.
3. Treat Feature Completion as Binary (Y/N): Feature completion comprises of fully
functional, tested, and integrated functionality. Avoid feature 90% done syndrome to
set clear expectations with sponsors and users.
4. Get Customers to Participate in Test and Sign Off on Features: This will reduce
changes later in the lifecycle and increase buy-in.

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54

Manage Time and Budget on Agile Projects (continued)


Raytheons Earned Value Metrics for Agile Projects (Continued)

What the Business Sponsor Cares About

A. Will we deliver the requirements to fulfill the


business case?

B. Will we meet time-to-market requirements?

How Agile Delivers

1. Avoid building fallow functionality by incorporating frequent feedback loops


ensuring relevance of requirements that have not been built yet.
2. Avoid scope creep by forcing a prioritization of scope based on expected
value and available capacity.

3. Sequence high-value features to be delivered first and be able to cancel at


any time and be left with a working functionality.

4. Save on cost by not building functionality that is not useful and high value.
C. Are we going to stay within budget?

5. Save on rework cost since Agile is based on delivering discrete chunks of


tested and valuable functionality.
6. Build discrete components early to provide valid estimates for cost to complete.

D. Will we maximize value from the system?

7. Provide end users opportunities early in the project to influence the


implementation, thereby providing a more user-oriented solution and creating
evangelists when the product is released.

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Providing Accurate
Project Effort
Estimates

55

Providing Accurate
Project Effort
Estimates

56

Manage Time and Budget on Agile Projects (continued)


Raytheons Earned Value Metrics for Agile Projects (Continued)
Total Project Cost Estimation

Step 1: The User Stories


User stories are the smallest usable and testable pieces that can be completed in one iteration.
Business partners identify use cases for the project and write them in the following format:
As a <role>, I would like to <action>, so that <value>.
E.g.: As a buyer, I would like to save my shopping cart so that I can continue to shop later.
User story indicates the following:
1. Who wants the functionality?
2. What action does the user want to perform?
3. What business value does the user realize once the feature is implemented?

Step 2: Team Poker Estimation


1. Each team member is given a deck of cards with the
same set of Fibonacci numbers (1, 2, 3, 5, 8, 13, 21...).
2. A user story is presented to the team.
3. Each team member selects a card from his or her deck,
representing the number of story points he or she
thinks the feature will require (relative to past features).
4. Everyone reveals their chosen number at once, and
outliers discuss how they arrived at their estimates.

Step 3: Determine Worst-Case, Most Likely, and Best-Case Scenario


Ranges for the Estimates
1

2 3

User Story
Ideal: 3 Points
Expected: 5 Points
Worst: 8 Points

5. Teams can go through multiple rounds of poker for


each story until they achieve relative consensus.
Estimated Range

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13

21
Increasing
Complexity

Manage Time and Budget on Agile Projects (continued)


Raytheons Earned Value Metrics for Agile Projects
Feature Backlog Status After Completing One of Four Iterations, Illustrative

Estimate
(Story
Points)

Completed
(Story
Points)

Actual Cost
(Thousands
of Dollars)

Welcome Screen

10

10

15

AdvertSplash Screen

20

20

30

Login Screen

10

10

20

Personalized Google
Ads

20

Catalog Browser

20

Catalog Editor

10

Shopping Basket
Browser

Shopping Card Editor

25

Check-Out Process

20

Invoice Calculation

10

Credit Card Verification

10

PayPal Payment
Handling

20

Order Confirmation
E-Mail

20

Feature

Totals

200

Expected Percent Complete = 25%; Since


Only One of Four Iterations Completed
Planned Value = Expected Percent
Complete; Total Budget = 25% $175,000 =
$43,750
Actual Percent Complete = Total Number
of Story Points Completed Total Number
of Story Points Planned = 40 200 = 20%
Complete
Earned Value = Actual Percent Complete;
Total Budget = 20% of $175,000 = $35,000
Cost Performance Index (CPI) =
Earned Value Actual Cost = $35,000
$65,000 = 0.53

40

65

Conclusion: Estimate Cost at Completion


Is $175,000 0.53 = $330,188, and We Are
47% Over Budget.

Source: Sulaiman, Sulaiman, Tamara and Hubert Smits, Measuring Integrated Progress on Agile Software Development Projects, Methods & Tools, 20 August 2010, http://www.methodsandtools.com/archive/archive.php?id=61.
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Providing Accurate
Project Effort
Estimates

57

Providing Accurate
Project Effort
Estimates

Estimate Benefits for Agile Projects


British Airways and Emergens Initial Value Estimate for Agile Projects
1

2
Discover the
goals of the client
and customer
through interviews.

11

Choose between
competing
and conflicting
stakeholder goals
by ranking goals
against business
value drivers.

9
Explore the process,
define acceptance
criteria, and discover
missing user stories
with what if?
scenarios.

Define user stories


to implement the
steps in the process.

12
Come up with better
solutions by using
innovation techniques.

4
Define the business
value model and
the business value
drivers that will
drive the project.

Discover the
stakeholders and
their goals using a
context diagram.

Elaborate business
processes and the
domain model.

5
Discover the
highest-value
business process
and its supporting
processes.

10
Capture
nonfunctional
requirements with
acceptance criteria
and service levels.

Improve your
process with the
theory of constraints.1

13
Integrate
the customer and
the analyst in
the value stream.

Track progress
and value delivered
across the whole
value stream.

Based on Eliyahu Goldratts 1984 text, The Goal.

Source: Eliyahu, M. Goldratt, Jeff Cox, The Goal: A Process of Ongoing Improvement, (1984), North River Press, 2nd Rev edition (1992), ISBN 0-88427-061-0, 20th Anniversary edition (2004).

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58

Estimate Benefits for Agile Projects (CONTINUED)


British Airways and Emergens Initial Value Estimate for Agile Projects (Continued)
Project Breakdown into a Benefits Stream
Illustrative

Tracking Metrics

Project

Paid Seating Project, Business Case: 100%

Value Propositions
(Discrete
Measurable
Objectives Derived
from the Business
Case)

New Revenue
Stream-Seating
Sales

Improve Customer
Experience

Call Center
Efficiencies

Revenue Increase

Revenue Retention

Cost Reduction

Benefits Streams

Basic Online
and Change and
Upgrade Sales

Exit and Other Seat Sales

Principles

Revenue Increase

10%

Revenue Retained

5%

Cost Reduction

3%

Initial Estimate of
Contribution to Business Case

50%

Offline Sales

Basic Online
and Change and
Upgrade Sales

Goals

These benefits are the minimally marketable


feature set that can provide functionality to end
users and will move the business case metrics.

30%

20%

These are initial values only that will be revisited as


benefits tracking provides more information about
customer behavior.

Each project must have business benefits linkable to tracking metrics.

Each project has a small number (fewer than five) of associated value propositions, derivable from impacts on tracking metrics.

Each value proposition is realizable by a benefits stream, defined as a series of releasable feature sets capable of delivering the value proposition.

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Providing Accurate
Project Effort
Estimates

59

Providing Accurate
Project Effort
Estimates

Estimate Benefits for Agile Projects (continued)


British Airways and Emergens Initial Value Estimate for Agile Projects (Continued)
An Agile Option: XYZ Benefits Stream
Illustrative
1. Initial Value Estimate of Option

2. Cost to Hold

3. Exercising Cost

4. Expiry Date and Conditions

$300 K

$50 K

$100 K

15 March unless market competition


changes

Legend
1. Initial Value

Monetary value estimate is based on assessed contribution


to business benefit.

2. Cost to Hold (Options Buying Price)

Effort to define/document
Effort to determine acceptance tests
Effort to elaborate for the developers to estimate

3. Exercising Cost

Based on the effort estimate


Exercising cost may include switching costs that accrue when an option
is deferred. Switching costs result from the need for a team to ramp up
domain and project knowledge to pick up a deferred release.

4. Expiry Date and Conditions

The date by which the decision must be taken to deliver the release
by a desired date; the expiry date has embedded the lead time necessary
to build the solution for a target release date.

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Use the initial value estimate of an option to tentatively


prioritize it on a value proposition roadmap. Revise this value
after each release in a benefits stream.
Calculate the cost to hold to ensure that the initial value
estimate exceeds the cost of formulating the option.

Exercising costs will differ based on teams domain knowledge.


For example, if an option is deferred, it may have a higher
exercising cost when picked up by another team.

Use the expiry date and conditions to understand the timebox


for decision making and any changes that will impact that
expiry date.

60

Estimate Benefits for Agile Projects (continued)


British Airways and Emergens Initial Value Estimate for Agile Projects (Continued)
Continuous Reprioritization Across Releases
Illustrative

3
Initiate
Benefits
Tracking

Develop
and Deploy

4
Obtain Benefits
Realization
Information
from Previous
Releases

5
Reevaluate
Estimated
Benefits on
Future Options

Reprioritize
Benefits

Using benefits realization information, this step


validates and revises the previous estimates of
value of the benefit to the business case.

Initial Value Proposition Roadmap

Final Value Proposition Roadmap

llustrative

llustrative

Change and
Upgrade Seat

Exit and
Other Seat
Sales Online

Exit Row
Seat Sales
Online

Basic Online
Seating Sales
Change and
Upgrade Seat

Basic Online
Seating Sales

Offline
Seating Sales
Release 1
October

Offline
Seating Sales
Release 2
December

Release 3
March

Release 1
October

Release 2
December

Release 3
January

Release 4
April

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Providing Accurate
Project Effort
Estimates

61

Providing Accurate
Project Effort
Estimates

Estimate Benefits for Agile Projects (continued)


British Airways and Emergens Initial Value Estimate for Agile Projects (Continued)
Initial Portfolio of Benefits

Voucher Project

Paid Seating Project

Benefit A

Benefit B

Benefit C

Benefit D

Benefit A

Benefit B

Benefit C

Options
Value: 50% of
business case

Options
Value: 30% of
business case

Options
Value: 15% of
business case

Options
Value: 5% of
business case

Options
Value: 50% of
business case

Options
Value: 30% of
business case

Options
Value: 20% of
business case

Options Revaluation
Based on Benefits
Tracking

Reprioritized Portfolio of Benefits

Voucher
Benefit A

Voucher
Benefit B

Paid Seating
Benefit A

Paid Seating
Benefit B

Paid Seating
Benefit C

Voucher
Benefit C

Voucher
Benefit D

Realized
Value: 90% of
business case

Realized
Value: 5% of
business case

Options
Value: 50% of
business case

Options
Value: 30% of
business case

Options
Value: 20% of
business case

Updated Options
Value: 5% of
business case

Updated Options
Value: 0% of
business case

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62

Estimate Testing Resources


Hartfords Managing Time and Budget Trade-Offs in Testing
Project Risk Scorecard

Project Selection Criteria

Project 1

Project 2

1. Percentage of Test Cases with Links to Financial Transactions

2. Testers Knowledge of the Application

3. Percentage of Test Cases with Defects in Previous Releases

4. Percentage of Test Cases Requiring Complex Calculations or Logic

5. Percentage of Test Cases Requiring Back-End Process Validations

6. Stability of Requirements

7. Business Criticality of the Project

8. Project Requires Functionality-Based Execution

9. Project Involves Data Warehouse/Data Migration

18/30

23/30

60%

76.66%

10. Project Introduces New Functionality


Total Score
Percentage (Total Score/Maximum Score)

Project 3

Project 4

Project 5

Note: Maximum score equals 30.

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Project Effort
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63

Providing Accurate
Project Effort
Estimates

Estimate Testing Resources (Continued)


Hartfords Managing Time and Budget Trade-Offs in Testing (Continued)
Project Risk Scorecard (Continued)

Project Selection Criteria

1. Percentage of Test Cases with Links to Financial Transactions

050%

5090%

90100%

N/A

2. Testers Knowledge of the Application

Strong

Medium

Low

N/A

3. Percentage of Test Cases with Defects in Previous Releases

050%

5090%

90100%

N/A

4. Percentage of Test Cases Requiring Complex Calculations or Logic

050%

5090%

90100%

N/A

5. Percentage of Test Cases Requiring Back-End Process Validations

050%

5090%

90100%

N/A

6. Stability of Requirements

Highly

Medium

Low

N/A

7. Business Criticality of the Project

Low

Medium

Critical

N/A

8. Project Requires Functionality-Based Execution

Yes

No

N/A

9. Project Involves Data Warehouse/Data Migration

No

Yes

N/A

No

Yes

N/A

10. Project Introduces New Functionality

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64

Estimate Testing Resources (Continued)


Hartfords Managing Time and Budget Trade-Offs in Testing (Continued)
Risk-Based Prioritization Tool

PR

Probability Risk Factor (PR)


Test Case Description
1

IR
Impact Risk Factor (IR)

Risk Score

Usage
Frequency

Defect
Prone Areas

Change in
Requirements

Complexity

Business Criticality

IR * PR

16

Sample Test Scenario

2
3
4
5

Scoring Criteria
Probability Risk Factors (PR)

Defect Prone Areas

Highly Defect Prone

Medium Defect Prone

Low Defect Prone

Usage Frequency

Very Frequently Used

Frequently Used

Rarely Used

Changes in Requirements

Frequently Changed

Sometimes Changes

Never Changed

Complexity

Highly Complex

Medium Complex

Low Complex

Impact Risk Factors (IR)

Business Criticality

High

Medium

Low

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Project Effort
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65

Providing Accurate
Project Effort
Estimates

Estimate Testing Resources (Continued)


Hartfords Managing Time and Budget Trade-Offs in Testing (Continued)
Testing Strategy Documentation

1.0 INTRODUCTION
1.1

Background/Summary

1.2 Documentation and References

7.0 TEST MANAGEMENT APPROACH


7.1

Test Environment

7.2 Test Tools

2.0 TEST OBJECTIVES

7.3 Test Data

3.0 TESTING SCOPE

7.4 Test Script/Case Database

3.1 Applications/Functions/Features to Be Tested

7.5 Change Management

3.2 Applications/Functions/Features Not to Be Tested

7.6 Version Control

4.0 DECISIONS, ISSUES, AND CONSTRAINTS


4.1 Decisions
4.2 Issues and Constraints
5.0 ASSUMPTIONS, RISKS, AND CONTINGENCIES
5.1 Assumptions
5.2 Exceptions
5.3 Risks/Contingencies
6.0 TESTING LEVELS AND TYPES
6.1 Unit Testing
6.2 Assembly Testing
6.3 System Integration Testing
6.4 Business Acceptance Testing
6.5 Types of Tests

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7.7 Release Management Process/System


7.8 Test Metric Approach
7.9 Defect Tracking
8.0 PASS/FAIL CRITERIADEFECT TOLERANCE
9.0 ROLES AND RESPONSIBILITIES
10.0 ENTRY AND EXIT CRITERIA
11.0 TEST SCHEDULE
12.0 GLOSSARY
13.0 SIGN-OFF AND APPROVAL

66

Estimate Testing Resources (Continued)


Hartfords Managing Time and Budget Trade-Offs in Testing (Continued)
Testing Strategy Documentation (Continued)
Test Strategy Review Checklist
Section

Section Title

1
2

Checklist Items

Yes

Introduction

Have in-scope and out-of-scope application modules/functions to be tested been


identified clearly?

Scope

6
8

Have in-scope and out-of-scope types of testing been identified?


Has the rationale behind the scope decision been stated?

Test Levels
and Type

Have all the test levels and types been defined?


Have the entry and exit criteria for the applicable types of testing been determined?

Has the requirements analysis process been identified?

10

Has the test process to be followed been defined?

11

Has any exception to the QA framework been documented clearly along with
its rationale?

12

Has the QA automation framework to be followed been defined? (If applicable)

13
14

Comments

Has the intended audience been identified appropriately?


Have all the required documents been identified and referred to for preparing the test
strategy?

NA

Has the project/application overview been documented?

No

Test
Methodology

Has the list of tools and its purpose for various QA activities been identified?
Have the different test environments for different types of testing been identified?

15

Has the test design approach manual and automation been identified for various
types of testing?

16

Has the high-level test data approach been determined?

17

Has the test execution approach that details the testing cycles planned for been
determined?

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Project Effort
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67

Providing Accurate
Project Effort
Estimates

68

Estimate Testing Resources (Continued)


Hartfords Managing Time and Budget Trade-Offs in Testing (Continued)
Testing Strategy Documentation (Continued)
Test Strategy Review Checklist (Continued)
Section

Section Title

Checklist Items

18

Have test planning activities been outlined clearly?

19

Has the process for change management on how changes are identified,
communicated, and tracked to closure been outlined?

20

Test
Management

21
22
23
24
25
26
27
28

Has the process on version control from development to testing environment been
outlined?
Has the process for defect management been identified?

Roles and
Have all the required roles and responsibilities been clearly stated?
Responsibilities
Have the assumptions and dependencies that underlie the test strategy been
identified?

Assumptions,
Have the risks based on assumptions, dependencies and past data been identified?
Risks, and
Dependencies Are risks being assessed based on their likelihood, and are appropriate mitigations
being determined to avoid the risks?
Test Schedule
References

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Does the test schedule contain appropriate timelines, and is it in synch with project plan?
Has the reference to project plan been provided?
Have all the required documents been identified and referred to for preparing
the test plan?

Yes

No

NA

Comments

Estimate Testing Resources (Continued)


Hartfords Managing Time and Budget Trade-Offs in Testing (Continued)
Testing Strategy Documentation (Continued)
Test Requirements Traceability Matrix

Item No.

Requirement ID

Requirement Description

Test Condition Name

Test Case Name

Defect ID

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Providing Accurate
Project Effort
Estimates

69

Providing Accurate
Project Effort
Estimates

70

Estimate Testing Resources (Continued)


Hartfords Managing Time and Budget Trade-Offs in Testing (Continued)
Testing Effort Estimation Tool

Complexity of Test Cases


Complexity Type

Complexity of Test Case

Interface with Other Test Case

Number of Verification Points

Simple

< 3 transactions

<3

Average

36 transactions

<3

38

Complex

> 6 transactions

>3

>8

Test Case Classification: Identify the total number of simple, average, and complex test cases for each of the Requirement Classifications in the table below. Refer to the Complexity of Test Cases table to determine the complexity.
Test Case Classification (based on complexity)
Requirement Classification

Simple

Average

Complex

Total

<Functionality/Module 1>

15

<Functionality/Module 1>

12

<Functionality/Module 1>

18

<Functionality/Module 1>

21

24

<Functionality/Module 1>

<Functionality/Module 1>

<Functionality/Module 1>

12

Total

36

36

36

108

Estimate for Total Test Case Points (Note: The Adjustment Factor in the table below is predetermined and must not be changed for every project.)
Test Case Type

Complexity Weight

Adjustment Weight

Number

Result

Simple

72

Average

144

Complex

288

Total Test Case Points

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504

Estimate Testing Resources (Continued)


Hartfords Managing Time and Budget Trade-Offs in Testing (Continued)
Testing Demand Management Tools

Project Resource Mapping

Business Unit Resource Cost Estimation

Illustrative

Illustrative

Business Unit

Project Manager
Name

Assigned

Project
Name

January
2010

Business Unit 1

John

Yes

Project 1

10

Billable Core

Business Unit 1

Kathy

No

Overage on Core $

Business Unit 2

Christina

Yes

Project 7

10

Demand for Flex

Business Unit 2

Karthik

Yes

Project 7

10

Billable Flex $

Business Unit 3

Penny

No

Total Business Unit 1 $

Business Unit 3

Vikram

No

Business Unit 2

Business Unit 4

Penny

No

Demand for Core

Business Unit 4

Vikram

No

Billable Core

Business Unit 4

Jennifer

Yes

20

Over/Under on Core $

50

Demand for Flex

Total Testing Demand

Project 1

Business Unit 1

Jan.

Feb.

Jan.

Feb.

Jan.

Feb.

Demand for Core

Billable Flex $
Total Business Unit 2 $
Business Unit 3

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Providing Accurate
Project Effort
Estimates

72

Estimate Service Cost


SKFs Reusable Services for Large-Scale Integrations
Step-by-Step Implementation Toolkit to Sustain Service Reuse

Develop Data-Oriented Service


Definition

Identify service components


using a handful of data
attributes.

Identify Opportunities for


Service Consolidation,
Modification, and Elimination
Use volume and rate of
component and service
consumption to identify reuse
potential.

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Build a Price List for Services

Adopt pricing scheme per


service component.

Measure Service Consumption


Use service inbound queue to
count unique message IDs.

Identify cost per service based


on pricing scheme.

Identify Patterns of Service


Usage

Identify which components are


widely used, moderately used,
or not used across services.
Assess the prevalence of
service components across the
portfolio.

Use Existing Billing Structure


to Track Service Consumption
Use existing cost center
structure for applications to
allocate costs to business users
on a monthly basis.

Estimate Service Cost (CONTINUED)


SKFs Reusable Services for Large-Scale Integrations (Continued)
Implementation Cost Model
Implementation and Support Costs per Year
One-Time Costs
Ongoing Costs

$20
$75K

$20K
$75

$20

$150K
$150

$150

$150

Create a Service
Price List

Maintain Catalog
of Services

Make Decisions
About Ongoing
Reuse, Consolidation,
or Elimination

Note: The numbers provided in this cost model should serve as guidance to members; they are not provided by the case company. The numbers
are based on the Councils research, and we encourage members who have additional questions to contact our staff for further discussion.

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Project Effort
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Providing Accurate
Project Effort
Estimates

Estimate Service Cost (CONTINUED)


SKFs Reusable Services for Large-Scale Integrations (Continued)
Payback on Reusable Services

Service Reusability Model

Service Reusability Assumptions


50

100

25

Data
Transformations

40

Service is consumed by business sponsor, and potentially,


other business units.

When demand for a service is high enough, it is made into a


reusable service.

A conservative estimate of cost avoidance is set at 40% of


the cost to create the initial service. Cost avoidance is not
100% due to the cost of modifying an existing service for a
custom fit and developer time spent finding and learning
about the service.

Typical payback period for a reusable service is 10 minutes;


on average it takes three reuses to break even.

40

External
Connections

40

Internal
Connections

Conversion
to Common
Message
Format

Cost to
Create
One-ofa-Kind
Service

Service
Consumption
Chargeback
Benefits

Cost to
Generalize
and Improve
Service
Performance

Three Months
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Cost Avoidance
Due to Reuse

One Month

Six Months

74

Estimate Service Cost (CONTINUED)


SKFs Reusable Services for Large-Scale Integrations (Continued)
Service Cost, Payback, and Consumption Calculator
Costs

Benefits

A. Capital Cost of Building a Service

A. Service Consumption During Its Lifecycle

1. Service development cost per hour (fully loaded labor cost)

$100

2. Estimated number of hours required for one data transformation

100

3. Estimated number of hours required for one internal data


connection

50

4. Estimated number of hours required for one external data


connection

50

5. Estimated number of hours required for one enterprise service bus

50

13. Change in scale of usage due to fortification of service into a


reusable service (total number of requests for a fortified service
divided by total number of requests for the same service before
fortification on an annual basis)
14. Consumption charge per request per service

1,200,000

$0.10

B. Reuse Cost Avoidance


15. Probability that a new user of the service would have asked for
creation of the service, if it had not been fortified for reuse

B. Service Fortification
6. Cost of fortification as a percentage of initial service development
cost

12. Total number of requests for a single-use service per year

0.000001

50%

7. Number of months between initial service creation and service


fortification

8. Duration of time spent on service fortification in number of months

C. Support Costs
9. Expected life of a service in number of months
10. Support cost as a percentage of total lifecycle costs

60
60%

D. Admin Costs
11. Monthly admin cost (fully loaded)

$5,000

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76

Section 5: Architecture
Management

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Architecture
Management

77

Architecture
Management

78

ARCHITECTURE MANAGEMENT
Support Business-Led Technology Purchases
Guide business leaders to ask vendors the right questions to unearth the
most likely technology selection pitfalls.

to optimize process maturity. As Alphas BAs develop deep understanding


of processes, they learn to tie requirements to appropriate levels of process
maturity through a three-step process:
1. Define processes before automation.

CareFusions Technology Buyers Guide79


The Technology Buyers Guide, a tool developed by CareFusion, contains
guidelines for business leaders in procuring technology solutions directly from
vendors. It guides them to the right due diligence conversations to unearth
common technology selection and implementation pitfalls.
The Buyers Guide equips business leaders with questions for vendors in four
key categories:
1. Fit with identified business need

2. Automate processes for which a strong business case can be made.


3. Continue automation to improve efficiency as process matures while
avoiding process rigidity.
When to Use
To tie requirements to appropriate levels of process maturity
To use process analytics to make informed technology roadmaps
To prioritize process improvements
Essential

2. Implementation effort
3. Quality of the vendor partnership
When to Use
To manage interactions with technology vendors
To guide and coach business sponsors to make informed technology choices
Reference

Specialized

Balance Process Maturity and Automation


Allow flexibility between automation and processes. Use Business Process
Mapping (BPM) to create a roadmap for automation of processes.
Alphas1 Balancing Process Maturity and Automation83
Alpha determines which processes to automate and at what level, while helping

Pseudonym.

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Specialized

Support Service Reuse

4. Financial cost

Essential

Reference

Increase ROI from existing services by reengineering them based on service


usage patterns and data patterns.
DirectTVs Deriving Maximum Value from Existing Technical Services86
DIRECTV identifies critical standard data definitions to reengineer and
orchestrate existing services into higher-ROI service offerings based on
current patterns in data and service usage.
When to Use
To understand data standardization opportunities for services
To identify solution interdependencies
To have informed conversations with architects on service usage patterns

Essential

Reference

Specialized

Support Business-led Technology Purchases


CareFusions Technology Buyers Guide
1. Buyers Guide: Fit with Identified Needs
Part 1: Questions for Self-Reflection
1. Have we defined metrics for assessing the success of this implementation?
2. Do we understand how end users will use this solution?
3. Have we spoken with the likely end users to understand how this would fit
into their existing way of working?
4. How likely is it that the way we use this solution changes over time?

Why Ask These Questions?


It is hard to assess the success of any project that lacks measurable outcomes from the onset.
Business sponsors perceptions of how a solution will be used often diverge from the ways in which they
are incorporated into end users workflows.
Failing to anticipate business change may result in costly adjustments to the solutions later.

Part 2: Differentiating Questions for the Vendor


1. We have identified 23 core problems this solution must resolve for us.
Canyou provide specific examples of how you have addressed these
problems for other clients?
2. What type of preparation (data access, security, special configuration, etc.)
was required to successfully resolve those clients problems?
3. Could we obtain a reference from a customer with the same or a highly
similar problem?

Why Ask These Questions?


It is very hard to spot the main weaknesses of software solutions during the buying processthey
generally surface during implementation. Therefore, it is common for inexperienced buyers to feel that
they dont understand the potential pitfalls of a solution.
Make customer references truly comparable by ensuring they align to a highly similar problem, rather than
to the product the vendor is offering.

Part 3: Standard Questions for the Vendor


Fit with Identified Business Need
1. How many other organizations use this product?
2. How are your other clients similar and different from us?
3. Can you provide documented case-in-point examples of how other organizations use your product?
4. Can you provide a tailored demo to show how your product will resolve the specific need of our organization?
Functionality
1. Based on the problem we are facing, which functionality of your product will be used most in our organization?
2. Which functionality will we use least?
3. Can you provide examples of functionalities you have added based on client feedback?
Ease of Use
1. How will our staff access the solution?
2. Will our staff be able to use their enterprise ID and/or single sign-on to log into your software?
3. How will our staff pull reports from the software?
Short-Term Versus Long-Term Fit
1. How would our organization have to adapt in the usage of your product in a case of a major business event, (e.g., geographic expansion, M&A, significant increase in staff headcount)?
2. How would you adapt your offering if a competitor offered the same product and services bundle at a lower price point?
3. Which functionalities of your product could be enhanced to meet our specific need more efficiently in future releases?

Overall Grade AF:


(How well did we understand what the vendor told us about this category?)

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Architecture
Management

79

Architecture
Management

80

Support Business-led Technology Purchases (continued)


CareFusions Technology Buyers Guide (Continued)
2. Buyers Guide: Implementation Efforts
Part 1: Questions for Self-Reflection
1. What types of existing data will this solution need to access? Do we know
where that data currently resides? How certain are we that we know?
2. Have we tested end users willingness to change their workflows to fit the
tool as is with little or no customization?
3. How many of our best people are we willing to dedicate fulltime to serve as
subject matter experts during solution implementation? Part-time?
4. Will we need to project manage the implementation of this solution? If so,
what experience will be needed by the person in that role?

Why Ask These Questions?


Out of all the requirements of a vendor solution implementation, data is the most complicated. It is also
the most likely to undermine the potential benefits as a result of the unforeseen amount of integration
required for the solution to work as planned.
Significant modifications to existing workflow frequently result in resistance and requests for
customization, which cannot be achieved without an increase in the implementation effort.
Subject matter expert (SME) involvement during solution implementation is the most commonly
unanticipated bottleneck in project delivery. The time commitment required from SMEs is typically two to
three times higher than originally estimated.

Part 2: Differentiating Questions for the Vendor


Differentiating Questions
1. How many third-party service providers have you certified in implementing
your product? Would you be comfortable if we talk to some of them
independently?
2. What percentage of your revenue comes from services rather than licensing?
3. If we need to customize, how do you license for development and test
environments?
4. What is the average implementation cost at your different licensing tiers?

Why Ask These Questions?


Third-party service providers with experience implementing the solution can provide a more honest,
impartial assessment of its strengths and weaknesses, since they typically work with multiple vendors.
If the vendors business model relies heavily on services revenues, it could indicate that the configuration
and integration of the solution is highly complex. It also gives the vendor an incentive to prolong the
implementation by offering customizations.
Many vendors have very strict licensing terms that lead to exploding costs anytime that a client needs
to do customization.

Part 3: Standard Questions for the Vendor


Integration
1. Based on your clients experience, what other standard enterprise systems
does your product need to connect to perform as designed?
2. Which standard enterprise systems need to draw from the data processed
through by your solution?
3. What are the most commonly missed areas of integration for customers who
want to use it like us? For the kinds of uses we are thinking of in the future?
Customization
1. How much customization have your other clients with uses like ours had to
do?
2. Which types of IT SMEs will we need to commit to implementation?
3. How many business SMEs will we need to commit to implementation?

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Training
1. Will you provide initial training on using your product to our staff?
2. Will training focus on an overview of functionalities or be tailored by role?
3. Is there a cap on the type and number of training sessions or support calls included in the contract?
Security
1. Does your product store non-public information about our employees or customers?
2. Would you be open to a third-party vulnerability assessment before we sign an agreement?
3. Would you be open to ongoing third-party vulnerability assessments?
4. In an event of a breach, what would be the most recent version of critical files you would be able to provide?
5. Would you be open to an audit by our internal IT department on your disaster recovery and business
continuity plans?
6. Would you be willing to make adjustments to your current disaster recovery and business continuity plans
based on our IT departments recommendations?

Support Business-led Technology Purchases (continued)


CareFusions Technology Buyers Guide (Continued)
3. Buyers Guide: Quality of Vendor Partnership
Part 1: Questions for Self-Reflection
1. What specific skills and expertise does this vendor provide that we lack
within our Corporate IT organization?
2. How essential is the business problem that this vendor is helping us solve
to the core operations of our business?
3. What is the minimal level of vendor relationship quality that we are willing
to accept?
4. How do we define a partnership deal breaker?

Why Ask These Questions?


The probability of a vendor lock-ina situation in which our business becomes dependent on a vendoris
higher if vendor skills and expertise are hard to find inside (or hire into) the internal IT department.
In their efforts to grow their own margins, vendors sometimes lower the quality of service they provide
if their product is key to a clients core business operations.
Inexperienced technology buyers often buy third-party solutions without thinking through what would
cause them to want to terminate an agreement. Defining the deal breakers in advance helps establish
consensus for when to shop for another vendor. It also helps communicate with the vendor what aspects
of the service are most important.

Part 2: Differentiating Questions for the Vendor


Differentiating Questions
1. How do you measure compliance with your own protocols for notifying your
customers about extraordinary events? (e.g., security events or business disruptions)
2. How do you measure customer satisfaction? Who is the customer?
(End-users, the purchaser, IT?)
3. Are these metrics included in the performance evaluation of your staff?
4. Have you defined standards for issue resolution? Can you share those
standards and your performance against them?

Why Ask These Questions?


Most vendor products require at least a minimal amount of support. Unavailability of that support at a
critical time (e.g., security events, major disruptions) may significantly impact our business.
Including customer satisfaction metrics in staff performance evaluations ensures that vendor employees
are more likely to provide the desired level of support regardless of their level in the organization.
It is hard to anticipate potential problems with using the vendor solution, but reviewing standard issue
resolution procedures can serve as a proxy for understanding: a) Potential areas of concern,
b) Expected level of service if those concerns materialize.

Part 3: Standard Questions for the Vendor


Service=Level Agreements (SLA)
1. Are your SLAs calculated based on averages over a period of time or on a
single unit of services?
2. Are there exclusions from meeting the defined SLA levels?
Note: SLAs define the availability of the vendors product and the response
time you can expect from the vendor if something goes wrong with the
product or if you have a question.
3. Would you be open to a trail period during which our IT department can
assess your ability to meet SLAs?
Professional and Cooperative Behavior
1. What incentives do you provide your staff to exhibit high levels of customer service?
2. Do you measure and analyze employee satisfaction?
3. What is your companys standard for professional and cooperative behavior?

Effective Communication
1. What is the standard communication process between your company and clients regarding important
issues?
2. What is your internal standard for notifying clients about extraordinary events (e.g., security breaches)?
Proactive Support and Responsiveness
1. What time zones does your staff reside in?
2. Do you monitor over or underutilization of your services to identify and diagnose potential problems?
End-User Support
1. What type of post-implementation training will you provide?
2. Will you provide ongoing support?

Overall Grade AF:


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Architecture
Management

81

Architecture
Management

82

Support Business-led Technology Purchases (continued)


CareFusions Technology Buyers Guide (Continued)
4. Buyers Guide: Financial Cost
Part 1: Questions for Self-Reflection
1. Have we figured out an internal break-even ROI point or a set of assumptions
under which this investment is no longer a good idea? Have we explored how
likely are those assumptions to come true?
2. What would be the non-financial impact of vendor insolvency on our
business? Do we have a contingency plan in case this happens?
3. How comfortable are we with a long-term partnership with this vendor
in which the terms of our agreement cannot be changed?
4. Is this vendor also selling products to our IT organization, which may be able
to provide us with discounts or references?

Why Ask These Questions?


Many business leaders report that in hindsight, they would have made more explicit assumptions about
the expected ROI from a vendor solution and that they would have altered some of their financial cost
decisions if the assumptions were fully fleshed out.
Like any business, SaaS vendorsboth big and smallcould run into financial trouble. Regardless
of whether the turmoil experienced is temporary or permanent, it will have an impact on its clients.
Vendor lock-ina situation in which our business becomes critically dependent on a vendormay
not be favorable if the partnership is considered a short-term fix to a long-term problem.

Part 2: Differentiating Questions for the Vendor


Differentiating Questions
1. Based on our current level of need, are we considered a growth account
or a maintain account?
2. How have your prices changed in the last two years? What is likely to happen
to your prices in the next two years?
3. Do you actively scan for areas of under or overutilization to propose contract
modifications based on individual client usage?

Why Ask These Questions?


Frequently, vendors provide only a partial view into the anticipated future costs of doing business with
them. To avoid surprises, contract negotiation should focus on fully understanding initial costs of entering
into agreement with the vendor, as well as projected costs, their drivers, and their likely direction.

Part 3: Standard Questions for the Vendor


Price Competitiveness
1. What is your unit of measure for the product and service? (e.g., per employee,
per device, per user account, per transaction, enterprise-wide license?
2. What is the billing frequency? E.g., per month, per quarter, per year)?
3. On average, by how much does a customers total spend with you rise
as he or she moves from lower tiers to higher tiers?
4. Are there additional charges for exceeding various parameters, such as storage?
Cost Flexibility
1. How much flexibility will we have to increase or decrease our level
of consumption of your product and services?
2. Are there any contractual minimum payments, such as a minimum monthly
or annual payments?
3. Are there any termination charges?
4. Is there a minimum length of service for a particular unit of measure
(e.g., a user must be active for at least one year?)

Overall Grade AF:


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Source of Vendor Profits


1. What is your margin on goods sold versus services sold?
2. How much does an average client spend on professional services with your company?
3. Based on our need and environment, how much custom implementation requiring paid support would
you recommend?
Vendor Stability
1. How long have you been in business?
2. At a high level, what is your companys strategy for the next 12 to 18 months?

BALANCE PROCESS MATURITY AND AUTOMATION

Alphas Balancing Process Maturity and Automation

Investigate Process

Analyze Process
Components

Review workflows.
Interview end users and SMEs.
Identify process components.

Determine current maturity of each process component by assessing:


Current level of automation;
Number of different workflows across the organization;
Lack of clarity about best workflow; and
Amount of change management required to automate.

Decide Whether
or Not to Automate

Select only those components that have significant process maturity,


manual intensity, and lengthy cycle times (e.g., for automation).

Yes

Define requirements for


automation of process
component.

No

Exclude from
technology solution.

Continue Monitoring Process


Consider automating as part of future capabilities consulting with the
business. Any future considerations of automation must be measured
in terms of their ROI in comparison with other enhancement and new
development requests.
Key Question
Will automating this process deliver the best ROI to the business
for the time it will require?
Optional
Create best practice guide for workflow as part of change
management efforts.

Pseudonym.

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Architecture
Management

83

BALANCE PROCESS MATURITY AND AUTOMATION (continued)


Alphas Balancing Process Maturity and Automation (Continued)
Using Process Analytics to Inform Technology Roadmaps

Steps
1. Create an IT Business Process
Mapping (BPM) team.

Key Activities and Tools

Identify business process experts within IT.

Adopt a BPM methodology.

Select BPM tools.

Work with customers to select processes to improve.

Create ITbusiness pilot teams.

Map each process.

Use iterative development to execute process improvements.

2. Select pilot BPM projects.

Pseudonym.

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Architecture
Management

84
1

BALANCE PROCESS MATURITY AND AUTOMATION (continued)

Alphas Balancing Process Maturity and Automation (Continued)


Using Process Analytics to Inform Technology Roadmaps (Continued)

Steps

Key Activities and Tools

3. Create a BPM Center of Excellence.

Create BPM governance structure.

Create a BPM training program to deepen talent bench.

Select initial projects with similar criteria to pilot projects.

Tackle increasingly complex projects as maturity deepens.

Automate mature processes.

4. Expand scope of BPM.

Use data from pilot projects to obtain customer


and management buy-in.

Pseudonym.

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Architecture
Management

85

Architecture
Management

86

Support Service Reuse


DirectTVs Deriving Maximum Value from Existing Technical Services
Partial Root-Cause Analysis of SOA Challenges
Objective

Challenges

Subchallenges

Solutions

1
Its hard to know which data
to standardize.

Lack of consistent data


standards and definitions

Its hard to gain consensus


on standard data formats
and definitions.

Narrow down the scope of data


standardization efforts to only the data
elements used by services.

2 Create standard data definitions in the


middle layer (the canonical data model),
rather than resolving standardization
decisions across databases.

3 In addition to identifying commonalities

Improve the value


of existing technical
services (SOA).

in service usage, analyze patterns in


input and output data used by services
to simplify rationalization decisions.

Its hard to identify service


consolidation opportunities.

Too many redundant, low


ROI services

Its hard to set the right


level of service abstraction
(granularity).

Introduce composite services based


on reoccurring data and service usage
patterns.

5 Minimize disruptions in knowledge


Its hard to ensure service
reusability.

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transfer about service usage among


design teams through modular service
training.

Support Service Reuse (continued)


DirectTVs Deriving Maximum Value from Existing Technical Services (Continued)
1. Identify Data Standardization Opportunities for Services
All data
Customer, product, account, etc.

Filter 1: Is this data used by integration services?

Yes

No

Go

Filter 2: Does the data exist


in more than one database?

Yes

No

Go

Formulate an enterprise standard


in the canonical data model and
allow provider databases to retain
local variations in definition.

Integrate data into


the canonical data model.

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Architecture
Management

87

Architecture
Management

Support Service Reuse (Continued)


DirectTVs Deriving Maximum Value from Existing Technical Services (Continued)
2. Resolve Key Data Inconsistencies

Type of Data
Inconsistency
1. F
 ormat: Inconsistent
way of recording
identical data elements

2. Value: Inconsistent
data inputs due to poor
data quality

3. D
 efinition: Inconsistent
definitions of what a
data element means

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ExampleCustomer Data

Action

Database A

Database B

John Smith

Mr. Smith,
John

Define master data standards in the


canonical data model and resolve
inconsistencies between provider systems
through the middleware.

Database A

Database B

John Smith

John Smit

Database A

Database B

John Smith

Alpha
Company Inc.

Identify quick-wins in data quality


improvement through an analysis of data
elements most frequently evoked by
services.
Map consumer systems data definitions
to master data standards in the canonical
data model.

88

Support Service Reuse (continued)


DirectTVs Deriving Maximum Value from Existing Technical Services (Continued)
3. Maximize the Value from Existing Services
Filter 1: Service usage commonalities
Identify a group of services that perform
the same action (e.g., look up customer
profile).

Filter 2: Data input and output patterns


Identify commonalities in data inputs and
outputs passed between consumer and
provider systems.

Service Name
(Old Services)

Service Description

1. Look_up_
1. L
 ook_up_
customer
customer
2. A
 ccess
2. Access
Account
Account
3. customer3.2
3. customer3.2

Provides customer information


Provides customer information.

Modifies customer or account


Modifies customer or account
information
information.

4. A
 ctivation

Activates access to new


products or services

5. vz3_billing

Submits customer order for


billing

Input data

Output data

Name

Retrieves customer account


Retrieves customer account.

I
I

Service Input and Output Data Elements1


Customer
Phone Customer
Payments
Address
Phone
ID
ID

I
I

Illustration only; a data element can be both an input and an output from a service.

O
O

O
O

O
O

O
O

O
O

I
I

Account
Status

1. Standardization opportunity
An area where a consolidated
service can be created
(e.g., Customer Information)
2. Flexibility needs
Areas where the use case of a
service differs from the use case
of the consolidated service

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Architecture
Management

89

Architecture
Management

Support Service Reuse (continued)


DirectTVs Deriving Maximum Value from Existing Technical Services (Continued)
4. Identify High-Value Composite Services
Data integration patterns: Patterns in data integrated together across different services
Service usage patterns: Patterns in services used together to deliver a functionality
Requests from design teams for new composite services

Reengineered Service Orchestration Analysis


Illustrative

Elements of a Composite
Integration Service

Composite Service Example: A customer


calls the DIRECTV customer service line to
add additional channels to her subscription.

Service Name
(New Services)

Service Description

1. C
 ustomer
Information

Provides customer
information

2. V
 erify Product/
Service
Eligibility

Retrieves the products


and/or services a customer
is eligible to purchase

3. Update
Account

Modifies customer account


information

4. Verify Address

Confirms customer address


information

5. Process Order

Submits customer order


for billing

6. A
 ctivate
Account

Activates access to new


products or services

Data Elements in the Canonical Data Model


Customer

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Data Called by a
Consumer System

Account

Product

Service

Orders

Subscriptions

90

Support Service Reuse (continued)


DirectTVs Deriving Maximum Value from Existing Technical Services (Continued)
5. Promote Continuous Service Education
Key Questions in Integration
Process Flow

Training Tool

What Does It Provide?

Benefits

Key Elements

1. H
 ow do I use integration
services?

Integration Services
Usage Guide

An introduction to the
services ecosystem

Defines rules of engagement


for using all integration
services

Common elements and features


and across all services

2. Which set of services are


available to me?

Consumer System
Usage Guide

An access agreement
into a suite of services
exposed for a specific
consumer system

Ensures alignment with


workflows supported by
theconsumer system

3. H
 ow do I use a specific
service?

Service-Specific
Interface
Agreement1

A set of detailed
guidelines on how to
use a specific service

Minimizes ambiguity around


how to use a service

4. H
 ow do I know the service I
used worked as intended?

Event Notification
Specification
Document2

A set of specifications
for input data,
return messages,
and configuration
information for
asynchronous services

Enables quick asynchronous


communication between
consumer and provider
systems on whether a
particular transaction
succeeded or failed

WSDL (Web Service Definition Language) and XSD (Extensible Markup Language) are also provided
along with the Service-Specific Interface Agreement but are not listed in the document itself.

Event Notification Specifications are not used for synchronous services.

A mapping of business
processes and services a
consumer system is eligible
touse
Service-specific information
such as default expiration
time, usage pattern
(synchronous, asynchronous,
fire and forget, etc).

Standards for input data,


output data, return messages,
configuration)

Notification standards and


guidelines
Required versus optional
message communications

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Architecture
Management

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Architecture
Management

92

Section 6: Designing
for Usability

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Designing
for Usability

93

Designing
for Usability

94

Designing FOR USABILITY


Design for the End User

Develop Customer Intelligence

Identify areas to improve usability by surfacing roadblocks in knowledge


workers workflows.

Develop a deeper understanding of customers technology use, needs, and


expectations to bridge business sponsors strategic requirements with end
users functionality needs.

LexisNexiss Uncovering Unarticulated Needs95


Capture knowledge worker pain points in the form of problem statements
that correlate to the impact on productivity. Tie productivity roadblocks to a
knowledge worker role objectives to surface business transformation needs
for translation into technology design. Prioritized productivity roadblocks
undergo a rigorous solution ideation phase, which results in high-fidelity
wireframes and prototypes that become primary input into subsequent design
stages.
When to Use
To surface end-user needs and translate them into technology design
To create a technical solution design tied to end-user productivity
improvements

Essential

Reference

Specialized

Improve System Usability

Kimberly-Clarks Usability Leading Indicators98


Kimberly-Clark selects a small set of metrics designed to track end-user
experience to triage performance problem remediation; they rule out whether
business process design, system performance, or human factors are the source
of poor end-to-end performance.
When to Use
To identify causes of poor system/user performance and improve usability

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Standard Chartereds Applications function develops a deeper understanding


of customers and the demands they place on applications through analysis of
service tickets and by soliciting ongoing feedback from end users. Standard
Chartered understands customers technology use, needs, and expectations to
bridge business sponsors strategic requirements with end users functionality
needs.
When to Use
To develop customer intelligence to increase end-user efficiency
To recommend end-user workflow and usability improvements
To bridge business sponsors strategic requirements with end users
functionality needs
Essential

Accurately isolate the cause of performance lapses due to system


performance, user behavior, or business process health.

Essential

Standard Chartereds Leveraging End-User Data to Proactively Deliver


Solutions100

Reference

Specialized

Reference

Specialized

Design for the End User


LexisNexiss Uncovering Unarticulated Needs
Problem Statement for a New Business Development Junior Executive
Illustrative

1.Direction
Minimize

3.Outcome
the number of
interruptions I have
during my work day

to free up time to
identify new opportunities
to find new clients.

Impact on
Knowledge
Worker
Productivity

2.Unit of Measure

Problem-to-Objective Mapping
Illustrative
New Business Development Junior Executive

Importance

Satisfaction

Difficulty

9.5

6.5

High

Role
Objective

1. Improve my daily work experience by extracting the most relevant information in the
shortest amount of time to work efficiently and manage time effectively.

Relevant
Problem
Statements

a. Minimize the number of interruptions I have during my work day to free up time to identify new opportunities to find new clients.
b. Increase the number of contacts I have with clients to improve my sales pipeline.
2. Widen my network of business contacts to start marketing
myself and build a book of business.

6.3

High

a. Minimize the time it takes to build and bring in a book of business to improve my performance against goal.

Anthony Ullwick, What Customers Want: Using Outcome-Driven Innovation to Create


Breakthrough Products and Services, New York: McGraw Hill, 2005.

Importance: 110

Satisfaction: 110

1Not at All Important

1Not at All Satisfied

10Very Important

10Highly Satisfied
Difficulty: High/Medium/Low

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Designing
for Usability

95

Designing
for Usability

96

Design for the End User (CONTINUED)


LexisNexiss Uncovering Unarticulated Needs (Continued)
Knowledge Worker Objectives Map
Illustrative for a New Business Development Junior Executive

Very Important
High Difficulty

1. Improve my daily work experience by extracting the


most relevant information in the shortest amount of time
to work efficiently and manage time effectively.

Importance of the Objective

Medium Difficulty

Knowledge Worker Objectives


Identified as Knowledge
Worker Imperatives

2. Identify an interesting market


that would allow me to grow
the business by 10%.

Other Knowledge Worker


Objectives

Importance: 110

3. Widen my network of business contacts to start


marketing myself and build a book of business.
Less Important

1Not at All Important


10Very Important

Satisfaction: 110

High

Low
Satisfaction with the Current Solution(s)

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1Not at All Satisfied


10Highly Satisfied

Design for the End User (CONTINUED)


LexisNexiss Uncovering Hidden Productivity Improvement Opportunities (Continued)
Knowledge Worker Imperative-Driven Design Process

Solution
Ideation

Process

Input

Design
Roadmap
Update

Feature
Assessment
Session (FAS)

Pre-Feature
Assessment
Session

Knowledge worker
imperatives
Voice of the knowledge
worker (e.g., interview
scripts and recordings)
Problem statements
associated with the
knowledge worker
imperatives

Knowledge
Workers

Project
Kickoff

Output
Innovation
Team

Customer
Advocate
Product
Champion

Technical
Teams

Enterprise
Architects
Domain
Architects
User-Experience
Team
Prototyping
Team

Design documents

High-fidelity wireframes

High-fidelity service
prototypes
Initial solution concepts

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Designing
for Usability

97

Designing
for Usability

98

Improve System Usability


Kimberly-Clarks Usability Leading Indicators
Preemptive Performance Tracking

Potential Problems

Poorly Designed
Business Process

Poor System
Performance

Inefficient Use
Is performance
degradation due
to user inefficiency?

Key Questions

Is the business
process itself
inherently inefficient?

Is the system
performing
as it should?

Does the user know


how to use the
application correctly?

Is the application
too difficult to
use correctly?

Confirming Metrics

User Experience Metrics

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Error frequency
by business process

Average end-to-end
response time

9 Number of errors per user

Time spent per screen

Number of processes
executed

10

Ratio of number of processes


completed versus aborted

Average process duration

11 Error frequency by error type

Ratio of actual completion time


versus best practice

Cumulative user sessions


by hour of day

12

Error frequency by functionality


usage

Ratio of process active


time versus idle time

Improve System Usability (continued)


Kimberly-Clarks Usability Leading Indicators (Continued)
Usability Root-Cause Analysis
Too High

Level One

If yes, then proceed

Too Low

Poorly Designed Business Processes


Is the business process efficient?

1 Error frequency by business


processes

2 Time spent per screen


3 Ratio of number of processes
completed versus aborted

4 Ratio of actual process


completion time versus
best practice

Level Two

If yes, then proceed

Poor System Performance


Is the system performing as it should?

5 Average end-to-end
response time

6 Number of processes executed

7 Average processes duration


8 Cumulative user sessions by
hour of day

Level Three
Inefficient Use
Is the application being used efficiently?

9 Number of errors per user


10 Error frequency by functionality
usage

11 Error frequency by error type


12 Ratio of process active time
versus idle time

Patterns of values (signatures) indicate


likely reason for performance lapse.

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Designing
for Usability

99

Designing
for Usability

100

DEVELOP CUSTOMER INTELLIGENCE


Standard Chartereds Leveraging End-User Data to Proactively Deliver Solutions
1. Use Multiple Channels to Understand Customer Needs

Sponsor/PM Conversation
Process efficiency
Cost, productivity,
or revenue drivers
Strategic changes

360 View of
the Customer
Customer Survey
Relationship/
engagement
quality
Fit of existing
solutions
Understanding of
business issues

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End-User Portal
Functionality
Usability
Workflow
Improvements

DEVELOP CUSTOMER INTELLIGENCE (continued)


Standard Chartereds Leveraging End-User Data to Proactively Deliver Solutions (Continued)
2. Recommend Workflow Improvements
Analyze Service Ticket Data to Achieve Valuable Service Outcomes

Analyze
Service
Ticket
Data

Look for
Leading
Indicators

Service
Outcome

Error Type

Error

Impact

Source

User Group Frequency

Application
functionality

Access
failure

Low
(< 5%
of users)

Missing
patch

Call center
technicians

10x/30 days

Business
process

Incorrect
report
sequencing

High
(> 25%
of users)

Poorly
mapped
process

Business
unit A line
managers

21x/30 days

User

Failed
database
query

High
(> 25%
of users)

Missing data
field and set

Market
researchers

13x/30 days

Number of errors per user group

Error frequency by business process

Enhance End-User Performance

Business Process Improvement

Identify enhancement and/or


customization opportunities
as prioritized and identified
by end users.

Review business process errors


to locate inefficiencies and identify
solutions.

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Designing
for Usability

101

Designing
for Usability

102

DEVELOP CUSTOMER INTELLIGENCE (Continued)


Standard Chartereds Leveraging End-User Data to Proactively Deliver Solutions (Continued)
3. Bridge Sponsors Strategic Needs and End-Users Requirements

1. Sponsor: Integrate
country-specific
requirements with
current payroll system.

2. Solution Delivery Team:


Deliver analysis to
sponsor.

3. Solution Delivery
Team: Provide
recommendation
based on sponsor
and end-user analysis.

4. Solution Delivery
Team: Provide
recommendation
to sponsor.

5. Business accepts
solution.

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Portal

Payroll data only in US dollars


No foreign deduction calculations

Service Analysis

Current payroll system rules and


presentation interface do not align
with the businesss strategic needs.

Analysis

Adding data tables solves short-term need.


Additional data tables dont simplify user interface.
Adding data tables increases current system complexity
and likelihood of service failures and loss in productivity.

Recommendation

Adopt new payroll solution that includes country-specific


extensions to the core application.

DEVELOP CUSTOMER INTELLIGENCE (Continued)


Standard Chartereds Leveraging End-User Data to Proactively Deliver Solutions (Continued)
Process Steps

Steps

Key Activities and Tools

1. Survey customers to identify


performance gaps.

Conduct a survey of executive leaders and business


sponsors to assess customer satisfaction on critical
performance criteria:
Business engagement and customer relationship
management
Ability to enhance business unit performance
Ability to meet revenue targets
Overall credibility rating

2. Develop multiple voice of


the customer mechanisms
to create a robust view
of customer needs and
priorities.

Build a web-based solution portal where employees


can submit questions, suggestions for new functionality,
and applications enhancement requests.
Make portfolio managers responsible for engaging business
sponsors in a variety of discussions around pain points,
strategic priorities, and market demands to build up
customer knowledge.

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Designing
for Usability

103

Designing
for Usability

DEVELOP CUSTOMER INTELLIGENCE (continued)


Standard Chartereds Leveraging End-User Data to Proactively Deliver Solutions (Continued)
Process Steps (Continued)

Steps
3. M
 ine maintenance and support
data to proactively identify
service opportunities.

Key Activities and Tools

4. B
 uild credibility by viewing
every customer interaction
as a service opportunity.

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Build a retrievable storage system for incident reports


to increase their ability to reuse valuable information.
Create common, searchable data fields for service tickets
to allow for quick retrieval of information about a single
customer or a particular type of service failure.
Analyze service tickets to isolate applications performance
issues occurring from specific user interactions or to identify
trends within a single customer base.
Identify customer behaviors that generate the same
or similar service requests to uncover service
improvement opportunities.

Provide customer relationship training to all staff members.


Focus initial conversations on stabilizing and improving
current service levels (e.g., application availability and
project tracking).
With improving customer confidence, move from providing
tactical and informational updates to engaging customers
in strategic conversations.

104

Section 7: Communications
and Change Leadership

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Communications and
Change Leadership

105

Communications and
Change Leadership

106

COMMUNICATIONS AND CHANGE LEADERSHIP


Develop Attributes of an Effective BA

Essential

Reference

Specialized

Engage and challenge business sponsors assumptions.


Potential Attributes of an Effective Business-Facing IT Professional108
Many of the attributes required in sales roles are increasingly applicable to
business-facing IT professionals.
When to Use
To develop skills and behaviors of an effective BA

Essential

Reference

Specialized

When to Use
To understand how different behaviors affect engagement outcomes

Reference

Communication strategies need to be tailored to business leaders


temperaments and posture toward project change and their degree of
influence on project outcomes.
Communication Challenges with Business Leaders114

Representative Profiles109
Like sales reps, BAs may adopt the profile of either a Challenger or a
Relationship Builder.

Essential

Establish Effective Communication with Business Leaders

Business leaders differ in their psychology, values, and assumptions about


technology, placing strains on engagement with BAs. A growing percentage
of business leaders are willing to lead in more aspects of applications
projects.
When to Use
To understand behavioral temperaments of the business sponsor
Essential

Reference

Specialized

Specialized

Deconstruction of a Compelling Teaching Pitch115


Critical Attributes of Challengers111
Typically Relationship Builders are focused on resolving tension and creating
a more collaborative, agreeable environment. On the other hand, Challengers
succeed because they can teach, tailor, and create constructive tension with
the sponsor. The Challengers success is based on the abilities to teach for
differentiation, tailor for resonance, and assert control.
Typically, organizations and individuals overemphasize the risk of being
aggressive. When developing attributes requiring asserting control, BAs must
navigate between excessive passivity and aggression.
When to Use
To develop challenger attributes to create constructive tension in business
engagement

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A compelling teaching pitch reframes initial assumptions, showing underlying,


unanticipated problems and building confidence in ITs ability to deliver a new
solution.
When to Use
To build confidence in your ability to deliver a new solution
To build effective communication skills
Essential

Reference

Specialized

COMMUNICATIONS AND CHANGE LEADERSHIP (Continued)


Customer Outcomes Map117

Coca-Colas Building Transparency in Communications121

BAs should tailor their communication approach based on how individual


sponsors define success in their job, in terms of activities, metrics, or
direction of outcome.

Coca-Cola fosters collaboration with business partners by communicating


cost and risk information business partners need to make decisions.

When to Use
To understand business sponsors definition of success
To tailor communication approach based on sponsors context and
outcomes
Essential

Reference

Specialized

The negotiation roadmap demystifies the behaviors of highly successful


negotiators that can be applied for successful negotiations in a low-risk
environment.
When to Use
To develop effective negotiation skills

Reference

Specialized

Ciscos High-Risk Stakeholder Communication Plan120


Cisco builds holistic stakeholder profiles capturing detailed information about
stakeholder expectations and communication preferences. This information is
used to identify high-risk stakeholder segments (e.g., stakeholders with high
influence on project outcomes who actively resist project change).
When to Use
To document stakeholders expectations
Essential

Essential

Reference

Specialized

Plan Change Management Activities


Target change communications based on stakeholder priorities

Negotiation Roadmap119

Essential

When to Use
To improve conversation about business needs and options and costperformance trade-offs.

Reference

NetApps Governance Change Management Campaign122


NetApp identifies how stakeholders workflows will change and their concerns
about the new governance process. They do the following:
Address stakeholders concerns through targeted messaging of key
benefits.
Educate business executives about the initiative at governance forums and
senior staff meetings.
Create a company-level umbrella message about the governance process
change and ensures specific messages for each stakeholder align with it.
When to Use
To effectively engage in change management activities
To develop consistent messaging for change initiatives
Essential

Reference

Specialized

Specialized

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Communications and
Change Leadership

107

Communications and
Change Leadership

108

Develop Attributes of an Effective BA


Potential Attributes of an Effective Business-Facing IT Professional

Attitudes

Skills and Behaviors

Leverages Support

Interest in Feedback

Activities

Professional Image

Explores All Options

Outcomes Focused

Knows Value Drivers

Follows Formal Processes

Discretionary Effort

Offers a Unique Perspective

Lead Generation

Tenacity

Two-Way Communication Skills

Analytical Skills

Curiosity

Can Identify Economic Drivers

Experiments with Approach

Can Pitch Strategy

Requests Assistance

Forms Good Partner Relationships


Has Advocates in Partners

Wants to Manage Company


Outcomes

Company Attachment

Can Work with Anyone

Genuine

Accessible to Partners

Passionate About Customers

Flexible

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Good Cross-Functional
Relationships
Ability to Work
with the Team

Respects Partner Time

Strategic Agility

Manages Expectations

Knowledge

Can Explain ROI

Product Knowledge

Meeting Preparation

Industry Knowledge

Develop Attributes of an Effective BA (Continued)


Representative Profiles

The Challenger
(27% of Sample)

The Relationship Builder


(21% of Sample)

Always has a
different view
of the world
Understands the
customers business
Loves to debate
Pushes the customer

Builds strong
advocates
in customer
organization
Generous in giving
time to help others
Gets along with
everyone

The Hard Worker


(21% of Sample)

Others
(32% of Sample)

Always willing to
go the extra mile
Doesnt give
up easily
Self-motivated
Interested in
feedback and
development

n = 683 sales reps.


Note: Numbers do not equal 100% due to rounding.

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Communications and
Change Leadership

109

Communications and
Change Leadership

110

Develop Attributes of an Effective BA (Continued)


Representative Profiles (Continued)
While individual differences exist, all respondents can be categorized in terms of their likelihood to exhibit one group
of attributes over the others.

Challenger

Knows Customer Value Drivers

Offers a Unique Perspective

Relationship Builder

Forms Good Customer


Relationships

Discretionary Effort

Can Discuss Money

Outcomes Focused

Two-Way Communication Skills

Attachment to the Company

Tenacity

Can Identify Customer Economic


Drivers

Can Work with Anyone

Project Management Skills

Genuine

Leverages Support

Preparation Before Calls

Follows Formal Sales Process

Curiosity

Interest in Feedback

Learns Everything New

Can Pitch Strategy

Product Knowledge

Accessible to Customer

Knows How Customers


Differentiate

Gives Time to Help Others

Respects the Customers Time

Good Cross-Functional
Relationships

Industry Knowledge

Can Explain ROI of the Sale

Professional Image

Motivated by Goals

Has Advocates in Customers

Can Pressure Customer

Hard Worker

Explores All Options Before


Closing

Experiments with Sales Approach

Requests Assistance

Generates Leads or Prospects

Source: Integrated Sales Executive Councils Rep Skills Diagnostic.

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Evaluates Likelihood
of Purchase

Wants to Manage Company


Outcomes

Develop Attributes of an Effective BA (Continued)


Critical Attributes of Challengers
Challenger Builder Profile

Relationship Builder Profile

The Challenger profile focuses on building


constructive tension in interactions to push
customers out of their comfort zone.

Offers unique perspective


Has two-way communication
skills

Knows customer value drivers

Can identify economic drivers

Is comfortable discussing money

Can pressure the customer

Teaches

The Relationship Builder profile focuses on


resolving tension in interactions to make
situations more amicable and positive and
encourage collaboration.

Forms good relationships

Builds customer advocates

Tailors

Asserts
Control

Builds cross-functional
relationships

Can work with anyone

Is genuine

Is accessible to the customer

Gives time to help others

Respects the customers time

Gets
Along
with
Others

Likeable

Generous
with Time

Implication for the Applications Function


To build Challenger skills, focus on helping business-facing Applications staff teach, tailor, and assert control.

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Communications and
Change Leadership

111

Communications and
Change Leadership

112

Develop Attributes of an Effective BA (Continued)


Critical Attributes of Challengers (Continued)

Teach: Reframe
the way business
partners view their
business and their
needs.

Tailor: Link your


capabilities to business
partners individual
goals.

Teach for
Differentiation

Tailor for
Resonance

Assert
Control

Assert Control:
Openly pursue goals
in a direct but not
aggressive way.

The New High


Performer

Questions to Consider
What should my business-facing
Applications staff teach?

Source: Integrated Sales Executive Council research.


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How do I get my business-facing


Applications staff totailor?

How do I get my business-facing


Applications staff toassert
control?

How can I change the behavior


of business-facing Applications
staff?

Develop Attributes of an Effective BA (Continued)


Critical Attributes of Challengers (Continued)

Subverts goals to the needs


of others
Allows personal boundaries
to be breached
Uses indirect, accommodating
language

Aggressive

Assertive

Passive

Directly pursues goals


in constructive way
Defends own personal
boundaries
Uses direct language

Sales Performance Problem

Pursues goals at the expense


of professionalism
Attacks others personal
boundaries
Uses antagonistic language

Common Sales Leadership Fear

Reps are often too passive with


customers, seeking to resolve
conflict whenever possible.

Tell sales reps to be more assertive


and they may become aggressive.

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Communications and
Change Leadership

113

Communications and
Change Leadership

Establish Effective Communication with Business Leaders


Communication Challenges with Business Leaders

Characteristics

Differentiation

Personality

Views of
Technology
Investments

Likely Reaction
toEngagement

Values

Career Past

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Personality traits account for differences in ability to communicate with others, propensity
to seek guidance and help, and ability to make decisions.
Business leaders differ in their views about how technology plays a role in their function/
company role.
Some view technology investments as critical to strategic outcomes, others as ancillary,
andstill others as irrelevant and not worth their time.
Standard engagement strategies from Applications and not received in standard ways by
all business leaders.
Some business leaders see engagement from Applications as a signal of poor performance
and become defensive, others welcome engagement, and still others avoid it all together,
adding additional barriers to Applications.
Personal and career-related values ultimately define what business leaders expect to get
from technology investments.
Some business leaders value large key accomplishments, some value maintaining a
consistent track record, and still others value flying under the radar.
Diverse backgrounds of business leaders challenges Applications to understand the
experiences and goals of countless types of individuals.
Past IT experience, tenure, level, experiences in other industries, and the like can all alter
how communication is received by business leaders about technology.

114

Establish Effective Communication with Business Leaders


(Continued)
Deconstruction of a Compelling Teaching Pitch

Positive

Emotometer: Level of Customer Excitement

then building back the


customers confidence
in a new solution.

Teaching follows boot


camp theory of shocking
the customer with the
unknown

2. Reframe
First reframing
of unrecognized
problem, need, or
assumption

Neutral

1. Warmer
Building credibility
by reading
their mind and
demonstrating
empathy

breaking down the problem


behind the unknown

3. Rational
Drowning
Gradual
intensification of
the problem, both
in degree and
closeness to the
customer

4. Emotional
Impact
Description of
the psychological
features of the
problem, or
presence in the
individuals workflow,
humanizing the
problem

5. Value
Proposition
A New Way
Delivery of a new
framework for
addressing the
problem; implicitly
tied to the supplier
value proposition

6. Our
Solution and
Implementation
Map
Map of supplier
services or
solutions linked
back to key
teaching points;
highlighted path
to implementation

Negative
Intrigued

Drowning

Involved

Relieved

Customer State
Source: Integrated Sales Executive Council research.

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Communications and
Change Leadership

115

Communications and
Change Leadership

116

Establish Effective Communication with Business Leaders


(Continued)
Teaching Dos and Donts

DONT

DO

Open with the breadth of your


product portfolio and capabilities.

Open with a focus on the customer


and their issues.

Discuss how long your company


hasbeen in the marketplace.

Reframe customers understanding


of their world.

Focus on features and benefits.

Make the sale personal and provide


value to that individual.

Lead with your unique strengths.

Source: Integrated Sales Executive Council research.

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Lead to your unique strengths.

Establish Effective Communication with Business Leaders


(Continued)
Customer Outcomes Map
An IT project has attributes in
the areas of risk, benefits, and
effort required from the business.

Consumer Trade-Offs

Business Leader Trade-Offs

Component Trade-Offs

Features

Risks

Quality

Benefits

Price

Business
Effort
Required

Regulatory Compliance Risk


Business Continuity Risk
Information Security Risk

Hitting Cost and Scope Target


Speed to Market
Direct Benefits Realization
High Data Quality

Total Percentage of Resources


Required
SME Time

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Communications and
Change Leadership

117

Communications and
Change Leadership

118

Establish Effective Communication with Business Leaders


(Continued)
Concept Definition

Customer Outcomes
What an individual customer
is trying to achievehow they
would define success in their job

Activity or responsibility
in need of improvement

Source: Integrated Sales Executive Council research.

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Metric used to
measure success

Direction and magnitude


of change necessary

Establish Effective Communication with Business Leaders


(Continued)
Negotiation Roadmap

Acknowledge
and Defer

Promise closure andseek


permission to have a different
conversation.

Deepen
and Broaden

Expand potential solution


components by surfacing areas
of additional value.

Explore
and Compare

Prioritize solution components


by estimating their relative value
to the customer.

Concede
According to Plan1

Create plan and exchange value


instead of giving it away.

Concede according to plan is a principle that can be applied at any point during the negotiation conversation.

Source: Sales Executive Council research.

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Communications and
Change Leadership

119

Communications and
Change Leadership

120

Establish Effective Communication with Business Leaders


(Continued)
Ciscos High-Risk Stakeholder Communication Plan
Illustrative
Type of stakeholder drives
the nature of communication
plan and the degree of
customization required.

Customized project messages are developed and


cataloged in advance. Key messages include the following:

Elevator Speech

Whats in It for Me?

Change Posture Pitch

Similarly themed messages are


tailored for audience seniority,
level of detail required, and
degree of change resistance.

Stakeholder Segment

Communications Details

Key Message: Whats in It for Me?

High Influence,
Resistant Posture

Target Audience
Senior Consultants, Operations; Operations Back Office Personnel

We recognize the current process


for submitting expense reports
is time-intensive, and turnaround
time is slow. The new system for
submitting expenses will require
less time for report submission, is
more accurate, and will expedite
your reimbursement turnaround
time.

Resistant

Low

Influential

Neutral

Make or Break

Supportive
Impacted

Change Posture

Communication Goal
Closely manage expectations; improve change posture.

Medium

High

Degree of Influence

Level of Detail
High-level budget and schedule communication; detailed
functionality communication
Threats (Real or Perceived)
Delayed rollout
Preferred Mode
Trigger-based e-mail

High Influence,
Supportive Posture

Target Audience
Executive Sponsor; Project Sponsor

Resistant

Low

Influential

Neutral

Make or Break

Supportive
Impacted

Change Posture

Communication Goal
Closely manage expectations; maintain change posture

Medium

High

Degree of Influence

Level of Detail
High-level budget and schedule communication; medium-level
vendor performance communication
Threats (Real or Perceived)
Inadequate user training
Preferred Mode
Weekly status updates; trigger-based phone call

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The financial expense system


upgrade will help us achieve
three major goals. It will enhance
our financial tracking capability
for better budget control. The
upgrade will bring us up to
compliance standards for the
next two years. And the more
efficient employee submission
process will offer productivity
gains.

Establish Effective Communication with Business


Leaders (Continued)
Coca-Colas Building Transparency in Communications
Information
System Change
Management

CostBenefit
Analysis

Interdependency
Risk

Capability
Investment
Prioritization

A Transparency Deficit

IT plans system changes based on


its own time schedule, without full
visibility of the impact on business
processes.
IT makes assumptions about the
businesss cost tolerance and narrows
options accordingly.

IT acts as an intake for business


demand, managing dependency
risk as an internal IT matter.

IT responds to all breakdowns


according to SLAs.

IT often underappreciates or is unaware


of the decision-making relevance to
business partners of critical pieces of
information.

Clarifying the Facts

Ideal timing for systems changes


is coordinated with business and
determined by capacity to absorb
change.
IT presents solution options and
lifecycle costs so that business can
make the appropriate trade-offs
between cost and performance.
IT factors dependency risks into
the business case for investment,
giving business partners visibility on
downstream and upstream impact.
IT prioritizes its response to service
disruptions according to business
context and criticality.

IT is proactive in sharing the inputs


that business partners require to
make decisions affecting business
performance with full knowledge
of cost, risk, and available options.

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Communications and
Change Leadership

121

Communications and
Change Leadership

122

Plan Change Management Activities


NetApps Governance Change Management Campaign
Stakeholder
Group

Change in Stakeholder Workflow

Senior
Management

Business
Executives

IT Executives

For the first time, the right


information will be visible up to the
CEO level.

Need to be more collaborative with


IT and Finance in planning

Need to align with the new


governance models

Only approved projects will


get done

Share accountability for ensuring


rigorous portfolio prioritization.

Potential Stakeholder
Concerns

Processes may not mature


fast enough and stunt the
companys growth.

IT may not adequately


support the business.

May create more red tape


and reduce responsiveness

Resistance to adoption

Key Benefits Messaging

Better visibility on investments and


returns

Highest priority projects get the


most attention

Increased alignment of investments


to functional strategies

Higher thresholds of investments


at the cross-functional council level
approved by business units

Transformation of PMO from a


policing to an enabling organization

Investments better grouped and


easier to manage

Account
Managers

Need to own the planning process


and the transition to project delivery

More bureaucracy that


slows down work

Fewer fire drills regarding portfolio


and annual planning

Project
Managers

Update costbenefit analysis


template at every project stage gate.

More process steps to


comply with

Easier to communicate with business


partners about projects due to
consistent processes

Process
Owners

Process owner approval no longer


required in project selection due to
streamlined oversight

Lower involvement in
decision making

Visibility into project pipeline and


notification of changes
when they occur

Anticipate potential pushback against the new process


by considering each stakeholders concerns and tailors
change management messaging accordingly.

Applications Executive Council


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Plan Change Management Activities (Continued)


NetApps Change Management Campaign Plan (Continued)
Communication
Type
Weekly E-Mails

Capability
Training

Content

Audience

Audience Time
Commitment
10 minutes

Provide context for changes, updates, and action items.

Provide visibility on upcoming events.

End Users and


Business Leaders

Provide training on using new governance and cost


tracking/costbenefit analysis capabilities.

Early Adopters
and Trainers

25 hours

Provide an overview and set context for rollout


capabilities.

End Users and


Business Leaders

12 hours

20+ Phase 1
End Users in 1
Location

3 hours

23 hours

Webinar

Brown Bags

Provide an overview of the complete end-to-end process.

Walk through the project lifecycle and finance process.

Provide opportunity to ask questions and hear from others.

Show how to complete the costbenefit analysis template.

Answer questions and provide any additional guidance.

20+ Phase 1
End Users in 1
Location

Provide an overview of project lifecycle and change order


go-live elements.

End Users and


Business Leaders

2 hours

Assess end-user understanding and concerns.

End Users

30 minutes

Focus Groups

Identify adoption risk areas.

68 Selected
SMEs per
Location

1 hour

Roadshows

Provide update on status.

End Users

23 hours

Share results of adoption evaluation.

Gain input, field questions related to Q1 rollout and future.

One-on-One
Working
Sessions
Webinar
Adoption
Survey

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Communications and
Change Leadership

123

Communications and
Change Leadership

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124

Section 8: Business
Relationship Management

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Business Relationship
Management

125

Business Relationship
Management

126

BUSINESS RELATIONSHIP MANAGEMENT


Build an Engagement Strategy127

Help Sponsors See Risk and Value Trade-Offs136

Tailor engagement to business leaders preferences for risk, benefit, and


effort in IT projects.

Clarify risk and value trade-offs.

Business executives fall into four temperaments based on their preferences


and trade-offs for risk, return, and effort in Applications projects.

CareFusions Clarifying Risk and Value Trade-Offs

These pages outline the types of business leaders by temperament and the
defining characteristics of each type.
When to Use
To understand business leaders preferences for project risk and return effort

Essential

Reference

Specialized

Apply CareFusions simple framework to help business leaders visualize risk


and value trade-offs. Such a tool is part of the education/consultation for
business leaders who want to take a more active leadership role in IT projects.
When to Use
To evaluate business leaders risk and value preferences

Essential

Reference

Specialized

Understand Business Sponsors Temperaments135

Track Changing Business Priorities137

Four elementssensitivity to benefits, aversion to risk, desire for control,


and measures of successdefine a unique business leader temperament.

Attain an enterprise wide view of changing business priorities.

These pages highlight a strategic guide to identifying business leader


temperaments and key probing questions to identify a business leaders
profile.
When to Use
To tailor communication approach based on sponsors profile

Essential

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Reference

Specialized

CareFusions Business Trends Insight Map


Use CareFusions insight map approach to capture trends across business
leaders that are valuable to Applications strategic planning and demand
management.
When to Use
To create an enterprise-wide view of changing business priorities
Essential

Reference

Specialized

BUILD AN ENGAGEMENT STRATEGY


Four Distinct Dimensions Where Business Executive Temperaments Think and Act Differently
The importance of three dimensions
desire for control, aversion to risk,
and lure of returnseach defines
how individuals measure success.

Lure of Returns
The strength of the belief that ones
self-management of a project is
necessary to capture returns

Aversion to Risk
How willing a person is to take
onincreased risk in self-managing
aproject

Each temperament displays


a distinct behavior on each
of these dimensions, with
each having a unique profile
based on these dimensions.

Preferences
along
these three
dimensions
drive success
measures.

Success Measures
How a person views and
measures past successes
and defines success for
afuture project

Desire for Control


How important self-managing
ITprojects is to an individual

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Business Relationship
Management

127

Business Relationship
Management

128

BUILD AN ENGAGEMENT STRATEGY (continued)


Archetypes of Business Leaders by Temperament
Business leaders with rational risk/
reward approaches to self-managed
solutions who want to work with
Applications in a new way

The
Opportunists

The
Entrepreneurs

51%

23%

The
Abdicators

The
Cowboys

11%

15%

Low

Willingness to Self-Manage Solution

High

n = 181 business leaders.

Business Leader (Self-)Management of Solutions Delivery: Business takes primary responsibility


for performing or managing solutions delivery activities traditionally performed by Corporate
IT (e.g., selecting and procuring tools, vendor selection, project management, vendor
management).
Source: AEC 2011 Survey of Business Executives, May 2011.
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BUILD AN ENGAGEMENT STRATEGY (continued)


Business Executives Fall into Four Temperaments Based on Their Preferences and Trade-Offs for Risk, Return, and Effort in Applications Projects

Low

Openness
to Persuasion

High

The Abdicators (11% of Sample)

The Opportunists (51% of Sample)

They want to do what they do and think IT should do IT.

Reformed Abdicators looking for opportunities to do it


themselves

Psychographics

Avoiding management of IT projects at all costs


Unswayed by the lure of high project returns

Low

Top Concern

Can be lured by high returns to self-manage projects


Avoiding risky IT projects at all costs

Top Concern

Want to protect their time above all else

Demographics

Psychographics

Most concerned about getting the full scope of what they want

Demographics

Typically have 5 to 15 years of work experience

Typically have 5 to 15 years of work experience

Desire
for Control
The Cowboys (15% of Sample)

The Entrepreneurs (23% of Sample)

See applications solutions as critical and need to control them;


impatient

Can look like Cowboys but have more rational desire to control
projects; want to hit home runs and are willing to take risks to
do it

Psychographics

Psychographics

Want to self-manage IT projects at all costs


Insensitive to risk

Top Concern

Speed to market most important motivator

Demographics

Typically have 16 to 25 years of experience

Will do it themselves for higher returns, even if taking on risk


Will do what it takes to attain business outcomes

Top Concern

High

Most concerned about achieving business case/outcomes

Demographics

Typically have 16 to 25 years of experience

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129

Business Relationship
Management

BUILD AN ENGAGEMENT STRATEGY (continued)


Engaging the Abdicators

The Abdicators
Sensitivity to Returns
Id rather stick to my day job. Im sure IT can make the project more successful than I can.
Aversion to Risk
Technology is your job. I break computers just by looking at them.
Success Measures
If I turn on my computer, it works and its easy to usethats a success.

Driver: Abdicators only want to focus on their


domain of expertise andare uninterested in it
projects.

Toughest ScenarioTraditional Engagement


Practical Example: You are having difficulty in
securing business leaders input on an ITled project
where you need active business sponsorship.

Challenger Response
Teach

Tie Engagement to
Regulatory or Strategic
Risks: Give examples of how
the Abdicators personal
engagement will lower risks on
corporate-level issues larger
than the project and closer to
his or her daily concerns.

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Tailor

Tie Project Success to the


Success of Their Daily Work:
Abdicators want to focus
on their domain only; tie
engagement to project success
and how that will improve their
ability to work.

Assert Control

Use Their Time Efficiently:


Explain what you will do to
respect their time and use it
efficiently.

130

BUILD AN ENGAGEMENT STRATEGY (continued)


Engaging the Opportunists
The Opportunists
Sensitivity to Returns
We think we can get what we want by doing this ourselves, but I wanted to consult with you to make sure.
Aversion to Risk
I really want to make sure I first have a good handle on the risks I may encounter with this project.
Success Measures
Im proud of my track record. If things go smoothly and I learned something, it was a success.

Driver: Opportunists overestimate the risks


or underestimate the possible returns
from self-management.

Toughest Scenario: Bolstering Their Confidence


Practical ExampleConcerned with potential risks, a
business executive is in danger of missing an opportunity
to obtain new capabilities because Applications resources
are not available in a timely way to support the project.

Challenger Response
Teach

Have Concrete Examples: Explain


how risks have been managed in
the past.

Explain the Impact of Their


Involvement: Speak about how
self-management increases the
likelihood of achieving the scope
or speed to market they desire.

Tailor

Assert Control

Plan the Main Pain Points: Lay


out a concrete support plan up
front, demonstrating how they
can count on Applications if
problems arise.
Be Specific: Understand exactly
what they want from a solution,
and tie self-management directly
to achievement of those goals.

Provide a Coach: Access to


personal support will reassure
them.

Address Alternatives: Make


the alternative (Applicationsmanaged projects) less desirable
by playing up time delay and
increased risk of missing business
case or of not achieving scope.

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Business Relationship
Management

131

Business Relationship
Management

BUILD AN ENGAGEMENT STRATEGY (continued)


Engaging the Entrepreneurs
The Entrepreneurs
Sensitivity to Returns
There is a real opportunity here, and we need to capture it while we can.
Aversion to Risk
I understand theres risk if we do this, but I can live with that.
Success Measures
Ill never forget that big contract we won back in 95...

Driver: Entrepreneurs underappreciate the risks


associated with self-management or overestimate
the impact on returns.

Toughest Scenario: Pulling Them Back from the Ledge


Practical ExampleA business leader is attempting to
participate aggressively in a high-return project but is
blind or indifferent to enterprise risk.

Challenger Response
Teach

Introduce Strategic Risks: Tie


the impact of strategic risk,
such as customer information
loss or brand damage, directly
to Entrepreneurs expressed
business objectives.
Make Use of History: Use
concrete examples of past
situations or projects where
similar risks have caused project
failure.

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Tailor

Amplify Risks: Make expected


returns seem less than expected
risks from self-management.

Assert Control

Focus on Achieving the Business


Case: This is Entrepreneurs
greatest concern. Discuss how
they need Applications help to
reach that goal.

132

BUILD AN ENGAGEMENT STRATEGY (continued)


Engaging the Cowboys
The Cowboys
Sensitivity to Returns
We cant wait for IT. We need to move on this now.
Aversion to Risk
I dont need any help in managing this project. I have all the people and resources I need.
Success Measures
People didnt think we could do it, but we pulled it off.

Driver: Cowboys distrust Applications ability


to meet their needs.

Toughest Scenario: Reigning in Risk


Practical ExampleA business leader is convinced
that a vendor product is the key to quickly solving a
significant business problem and wants it delivered
regardless of risk or cost.

Challenger Response
Teach

Correct the Past: Acknowledge


any past failures, if they exist,
andexplain what steps have
been taken to improve.

Tailor

Assert Control

Diminish Speed Expectations:


Tie risks and complexities of
a go it alone approach to
schedule and speed-to-market
impacts.

Infiltrate the Team: Find a key


lieutenant and win him or her
over tohelpmake your case.

Govern: If all else fails, govern


by going to a higher authority
and explaining what is at risk.

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Business Relationship
Management

133

Business Relationship
Management

134

BUILD AN ENGAGEMENT STRATEGY (continued)


The Abdicators

The Opportunists

You probably are dealing with an Abdicator if

You probably are dealing with an Opportunist if

They strongly defer to you as the experts and expect you to supply all the
initiative and answers.

Toughest Scenario
It is difficult to engage them on a traditionally run project.
Do
Use their time efficiently.
Tie their effort to high-risk avoidance.
Tap into their concerns about regulatory compliance.
Beware of
Confusing them with the Opportunists; they are not very motivated by returns
and cannot be persuaded to self-manage.

They emphasize how smoothly past successes went and show pride in meeting
expectations.

Toughest Scenario
They are scared of risks when Applications does not have resources to pursue
their opportunity.
Do
Address their specific fears, offering concrete steps you or they can take.
Understand exactly what they expect from the solution.
Address how self-management raises the odds of achieving specific objectives.
Beware of
Confusing them with the Abdicators; their reluctance comes from concerns about
risk, not unwillingness to self-manage.

The Cowboys

The Entrepreneurs

You probably are dealing with a Cowboy if

You probably are dealing with an Entrepreneur if

You do not know what they are doing. They talk evasively/vaguely about their
initiatives.

Toughest Scenario
They are putting the enterprise at risk and simply will not listen.

They measure past success mostly by the size of the outcome.

Toughest Scenario
They gamble with enterprise risks to chase high returns.

Do
Find their key lieutenant and win him or her over. Try to win over the Cowboys
team.
If all else fails, govern. Go to a higher authority and explain what is at risk.

Do
Amplify their perception of risks they have expressed concern about.
Introduce new strategic risks to them, e.g., loss of customer information, direct
financial loss, and brand impact.
Connect risks concretely to not achieving the business case.

Beware of
Confusing them with the Entrepreneur; their eagerness is fueled by a desire
tocontrol, and they will not listen to Applications.

Beware of
Confusing them with the Cowboys; Entrepreneurs actually can be reasoned with
and persuaded.

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Understand Business Sponsors Temperaments


Business Leader Discussion Guide

Decision Factors

Success Measures

Control

Framing Language

Discovery Questions

I typically ask people four things to


make sure we use our resources in the
way theyll most benefit from. One is
to understand the background and
experiences theyre bringing to the table.
Its likely a lot.

Second, I need to understand your


thinking about how youd like to finish
the project from here, and how youd
prefer to be working with us and with
your vendors.

Benefits

Third, I need to understand what your


vision is for this project to help me adopt
your views of the benefits andwork with
you to get to the outcomes you envision.

Risk

Fourth, I need to understand in your own


words what your perceptions of the risks
here are. I want to know how we can best
complement your skills and experiences
here.

What to Listen For

What is the greatest success so far in your career?


How did that project come about for you?
Why was it important to the company?
What was the benefit to you?
Was there a point during the project when the risks
started to seem high to you?

You are trying to understand how they


measure success and what motivates them
to get involved. There is an opportunity
here to get them to talk about how theyve
viewed or handled trade-offs in the past, in
asubject area that is comfortable for them.

Where are you in the project lifecycle?


In your ideal scenario, how much support would you
likefrom us on this?
Do you feel prepared for conversations with IT vendors?
What worries you about them?
I have to check on our resources to support you right
now. Would you be willing to delay this project to wait
for resources to come free? (If so, for how long?)

You are seeing how impatient or passive


they are, how much they worry about things
they dont know, and what their first instinct
is about ceding control.

Why is this something youve identified as a priority?


Whose idea was this and why are you working on it?
What does the company (or your group) expect to
getout of the project?
What do you hope to get out of the project?

You are looking for the amount of thought


theyve put into understanding potential
benefits the degree of excitement they have
about the benefits, and how attached they
are to a vision for what the solution and
outcome should be.

Have you done something like this before?


What risks are most worrying you?
Whats at stake for you on this project?
Whats the impact on the project if one of the risks
youworry about comes to pass?
Do you like to figure things out as you go along
or plan up front?

You are trying not only to gauge what risks


they perceive, but how they perceive the
magnitude of risk and how they weigh the
risks against potential benefits personally
and for the company.

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Business Relationship
Management

135

Business Relationship
Management

136

Help Sponsors See Risk and Value Trade-Offs


CareFusions Clarifying Risk and Value Trade-Offs
Illustrative
1. Strategic Risk to the Company
Loss of sensitive company information
Brand or reputation damage
Direct financial loss

Constraints of a Sample Solution

High

4. Effort
IT and business fulltime equivalent required
for implementation and
maintenance
Business subject matter
expert time commitment
Estimated amount
of customization
Estimated amount
of integration

Low

High

High

Low

High

3. Risk to the Project


Operational stability (e.g., downtime)
Vendor financial stability
Percentage of service-level
agreements (SLAs) met
Effectiveness of vendor disaster
recovery plan
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2. Business Outcome Attainment Risk


Likelihood that key functionality is
missing or fails to work as intended
Sensitivity to schedule delays
Sensitivity to budget overruns
Risk to productivity or revenue
improvements

Track Changing Business Priorities


CareFusions Business Trends Insight Map
Illustrative

Customer
Data
Management

Customer
Data
Management
Supply Chain
Management

Customer
Data
Management
Strategic
Sourcing

Research and
Development

Customer
Data
Management
Contract
Management

Strategic
Sourcing

Strategic
Sourcing

Strategic
Sourcing

Medical
Devices

Finance

Research and
Development

Strategic
Sourcing
Sales and
Marketing

Consider an enterprise project.


Assess the business case
for standardization.
Revise skills forecasts.

Customer
Data
Management
Supply Chain
Management

Customer
Data
Management

Potential Actions for Applications

3. Experimentation with a Given Capability

2. Major Changes Within a Business Unit

1. Surge in a Capabilitys Importance

Customer
Data
Management

Strategic
Sourcing

Customer
Data
Management
Customer
Data
Management

Contract
Management

Strategic
Sourcing

Strategic
Sourcing

Strategic
Sourcing

Medical
Devices

Finance

Research and
Development

Sales and
Marketing

Potential Actions for Applications

Revise SLAs for the business unit.

Revisit investment levels.

Supply Chain
Management

Reassign staff to project and re-scope


job descriptions.

Customer
Data
Management

Strategic
Sourcing
Sales and
Marketing

Customer
Data
Management
Customer
Data
Management

Contract
Management

Strategic
Sourcing

Strategic
Sourcing

Medical
Devices

Finance

Potential Actions for Applications

Investigate if there is an unarticulated


need not addressed by existing solutions.
Understand business drivers
of experimentation.

Legend
Experimentation with
a business capability
indicates its importance
is rising.

Experimentation with
a business capability
indicates its importance
isdiminishing.

The direction of
importance of
experimentation with
abusiness capability
is uncertain.

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Management

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Business Relationship
Management

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138

Section 9: Design Team


Relationship Management

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Design Team
Relationship
Management

139

Design Team
Relationship
Management

140

Design Team Relationship Management


Drive Team Collaboration and Engagement
Periodically assess the key behaviors and perceptions that drive virtual and
Agile team effectiveness to continually improve team performance.
Volvos Virtual Team Effectiveness Assessment141
Rather than focus exclusively on collaboration tool offerings, Volvo applies
NetAges framework to measure specific attributes of effective team
behavior.
When to Use
To understand attributes of effective team behavior
To effectively establish collaboration across team members

Essential

Reference

Specialized

Standard & Poors Common Delivery Framework for Agile


Development142
S&Ps framework standardizes governance, management, and engineering
for stakeholder roles, processes, and artifacts.
When to Use
To synchronize dependencies between roles, processes, and artifacts
on a distributed Agile team

Essential

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Reference

Specialized

Intergraphs Agile Cultural Change Management143


Intergraph uses the pulse survey to understand each teams reaction to the
new methodology.
When to Use
To understand teams perception of change

Essential

Reference

Specialized

Drive Team Collaboration and Engagement


Volvos Virtual Team Effectiveness Assessment
1

Strongly
Disagree

Somewhat
Agree

Strongly
Agree

Teams fall into one of four maturity


levels based on their score:

Goals: How Aligned Is This Teams Understanding of Goals, Actions, and Expected Results?
Cooperative Goals

Interdependent Tasks

Concrete Results

Everyone has the same picture of overall purpose.


Team discusses, agrees, and reviews clear, simple goals.

Chaos
(132)No shared understanding
of objectives or contributions of
individual team members

Everyone follows the same process for doing similar work.


Team looks for ways to interconnect and improve work processes.
Everyone understands the deliverables.
Team develops and reviews measures and milestones for deliverables.

Operational Consensus
(3354)Focused on methods
of work and timelines

Links: How Comfortable Is the Team with Communicating Internally?


Multiple Media

Boundary-Crossing
Interactions

Trusting Relationships

A variety of media is available and accessible.


Team uses collaboration tools consistently and creatively.

Team Alignment
(5587)Development of team
relationships to overcome
organizational boundaries

Team has collaboratively established operating agreements that are actively applied.
Team actively implements strategy for engagement across organization boundaries.
Team has high level of trust.
Team members build social capital through multiple connections.

Shared Accountability
(88120)Shared leadership
for achieving team objectives

Time: How Clear Are Project Timelines and Milestones?


Common Calendar

Interrelated Projects

Awareness of Phase

Team has clear milestones and schedules of dates.


People are aware of ongoing key team dates and cultural calendar.
Task timelines are collaboratively established.
Team adapts to rapidly changing conditions.
Team has clear view of its lifecycle and current phase.
People discuss team processes and suggestions for improvements.

People: How Familiar Is the Team with Roles and Responsibilities?


Independent Members

Shared Leadership

Integrated Levels

People have the freedom and flexibility to do their work.


The team continuously clarifies roles, responsibilities, and competencies needed.
Leadership is widely distributed and shifts as needed.
Individuals are encouraged to lead and to follow as appropriate.
Key system interdependencies are clearly articulated (looking up, down, and across boundaries).
People are encouraged to talk across levels.

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Design Team
Relationship
Management

141

Design Team
Relationship
Management

DRIVE TEAM COLLABORATION AND ENGAGEMENT (CONTINUED)


Standard & Poors Common Delivery Framework for Agile Development
1

Specifies expectations for governance and management:


people, process, and documentation

GOVERNANCE
Steering and Reporting
OPPORTUNITY
(Assessment)

What is the
business problem
or opportunity?

Business Sponsor
Project Proposer/Champion
Tech Management
Business Project Manager

MANAGEMENT
Planning and Evaluation

Objective
Get a project
funded.
Get a project
scheduled.

Opportunity Phase
Summary Meeting
Rapid Response Team
Project Proposal
Funding Memo
Project PlanLevel 0
Opportunity Phase
Summary/Sign-Off

ENGINEERING
Define, Build, and Test

Project Proposer
Business Analyst
Subject Matter Expert

ArchitectsEnterprise,
Application, Data,
Data Services

Business Problem and


Needs Analysis
Perform High-Level
Risk Analysis
Scope Analysis
Project Planning
Begin RFP Process

High-Level Technical
Feasibility Analysis
Level 0 Estimate (+/-200%)

VisionInitial
Project Proposal

VisionInitial
ScopeHigh Level, Initial
Project Proposal
Risk ProfileInitial
Request for Proposal (RFP)
Timebox
Synchronization Sprint

Defines the documentation


options the team should be
considering at each phase

Synchronization Planning

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Synchronization Interface
Specification

Creates a critical
synchronization phase
to ensure functionality
is delegated in a way that
ensures usable software
when brought together

Ensures the
business context
will be captured
and cascaded to
all team members

142

DRIVE TEAM COLLABORATION AND ENGAGEMENT (CONTINUED)


Intergraphs Agile Cultural Change Management
Agile Adoption Pulse Survey
Much
Better

Better

Same

Worse

Much
Worse

Strongly
Positive

Positive

Neutral

Negative

Strongly
Negative

1. How would you rate how much the team accomplished in the past sprint?
2. How would you rate how well Scrum helps clarify the goals of what the team was supposed to deliver?
3. How would you rate your perception of how much business value your team produced in the past sprint?
4. How would you rate the quality and fit for purpose of what the team produced using the Scrum methods?
5. How would you rate the level of collaboration within the team?
6. How would you rate your perception of how much wasted/throwaway work happened in the sprint?

7. How would you rate your overall feelings about using Scrum?
8. How would you rate the training received for sprint planning?
9. How would you rate the usefulness of the sprint-planning sessions?
10. How would you rate the usefulness of the daily stand-up meetings?
11. How would you rate the usefulness of the sprint review sessions?
12. How would you rate the effectiveness of the sprint retrospective?
13. How do you feel about moving into a common room?

14. If the decision were solely up to you, would your team continue using Scrum?

Yes

No

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Design Team
Relationship
Management

143

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