MODULE 3

Strategic Business Analysis

at the Business

Learning
Objectives

To define strategic
business
analysis
To define strategic
planning
To know how to perform
strategic
planning and
when to perform
it
Planning Level
Growing a business means taking many decisions about the way you want to expand your operations. Creating a
strategic plan is a key component of planning for growth. It will help you prepare a realistic vision for the future of your
business and in doing so can maximize your business' potential for growth. Strategic planning and business planning
should be complementary, but effective strategy development requires you to shift your focus from the day-to-day
concerns of your business and to consider your broader and longer-term options.
What is Business Analysis?

The BABOK® version 3.0 defines Business Analysis as follows:

Business Analysis is the practice of enabling change in an organizational

context, by defining needs & recommending solutions that deliver value to stakeholders.

Strategic - relating to the identification of long-term or overall aims and interests and the means of achieving them. (Similar
words planned, calculated, deliberate)

Strategic Business Analysis Is Done at the Business Planning Level

At the enterprise or unit level, strategic business analysis identifies, defines, scopes, and prioritizes projects and initiatives
for the organization. It ensures that the undertakings align with organizational goals, objectives, and strategies.

For large corporations there really is no choice but to invest the time now to define the desired future of the company.

When is the best time of year to start strategic planning?

For entrepreneurs or small business owners, the best time to start is now - today!

For smaller businesses that have an annual planning cycle, we recommend starting in the 3rd quarter of the current fiscal
year so that you can use your insights to set new goals for the next fiscal year.

For larger corporations, the strategic planning process will take longer and you still want your thinking to impact plans as
soon as possible. If you are part of a corporate group, start your assessment in the 2nd quarter of the current fiscal year. If
you so do, you will have new thinking formulated in time to impact the f
(focusedmomentum.com)

Strategic Planning
 Strategic Planning is the management process used to create a long-range plan of how to achieve an ideal end-state or a
set of goals often called a vision. This long range plan is called a Strategic Plan. (focusedmomentum.com)

Strategic Plan

A strategic plan is a document that summarizes all the critical strategic thinking from the strategic planning process. It
defines where the entity sees itself today and the challenges it is facing. It also describes the ultimate end-state it wants to
create (its vision), the high-level path it plans to take to move from where it is today to its vision and finally the key near-
term priorities to begin this journey.

(focusedmomentum.com)

Strategic Plan vs Business Plan

As already stated, a strategic plan is a document that defines a long-range plan. It typically covers a planning period of 10
-15 years and communicates the high-level plan to achieve a comprehensive set of goals by the end of this period. A business
plan is a detailed planning document that defines, in specific terms, how to achieve a specific milestone or objective within
the strategic planning period. The business plan covers specifics about product/program development, marketing tactics as
well as revenue/growth targets and the plans to achieve these goals.

A strategic plan has directional numbers that tell a very high-level story of how the business model will evolve as the
strategic plan is executed. A business plan has more specific and detailed financial projections that guide investments needs,
resource allocations/re-allocations, and annual budgeting. A business plan documents what needs to happen in the near-
term to align the organization to the strategic plan goals.

To summarize, the strategic plan lays out the high-level path for planned evolution where as the business plan lays out
the specifics on how to proceed next along this path. (focusedmomentum.com)

A Strategic Plan answers the basic questions:

How do we define success?

What is our plan?

What are our priorities and why?

How do we allocate resources?

How do we make decisions when there is a new opportunity or a change impacting the original plan?

What will we invest in and protect as we grow?

A strategic plan can also be created to resolve a specific set of
questions facing an organization when making a high stakes decision.
(focusedmomentum.com)

Strategic Planning Model

1. Start with a comprehensive analysis of WHERE YOU ARE NOW: Your Strategic Assessment.

2. Then, leave today behind and leap to the future (usually 10 15 years out) and define WHERE YOU WANT TO BE in that
future period. This is your Vision and Future Business Model.

3. After defining the gap, you can begin to close it with HOW TO GET.

Key Components of a Business Analysis Work Plan by Paul Mulvey, CBAP A stakeholder communication plan:

stakeholder groups.

A list of deliverables to be produced:

Your list of deliverables includes documents, services, and products you (and possibly other team members) must produce in
order to effectively analyze and communicate the requirements of the project.

A detailed list of tasks:

These are the tasks you need to perform to elicit, analyze, and communicate the requirements. Get as detailed as you need
to with this list in order to estimate your time accurately to your stakeholders and managers.

Sometimes estimating is helpful:

Break down the tasks you need to accomplish and sum up the total. For example, if completing a use case takes you 8 hours
and you have to create 10 use cases, you could estimate your work at 80 hours.

An estimate of time and cost:

All together, the stakeholder communication plan and lists of deliverables and tasks help you determine the time and cost
estimates for you and your stakeholders.

Strategic Business Analysis Is Not Just for Business Analysts

Although many organizations show a job title Business Analyst in their org charts, strategic business analysis is usually
not the exclusive domain of any given position. CEOs, COOs, Marketing Directors, Production Control Managers, Product
Managers, Product Owners, Subject Matter Experts, and other positions at every level of the organization often perform this
critical activity.

Because each contributor has a different skill set, value system, and vision, the outcome is inconsistent at best and
counterproductive at worst. Either of these outcomes has negative consequences for the decision-making process.
Strategic Business Analysis Reduces Doomed Projects/Initiatives

Effectively executed strategic business analysis reduces waste significantly by reducing the number of doomed projects or
initiatives.

The major purpose of strategic business analysis is to deliver the factual component to support business decisions.

of the decision maker.

How to Increase the Effectiveness of Strategic Business Analysis

You can increase the effectiveness of strategic business analysis in your organization by ensuring that everyone involved
has a shared understanding of this complex process augmented by a common set of tools and techniques that can deliver
reliable,

To Perform Strategic Business Analysis, You Need To:

Understand enterprise architectures and corporate cultures

Conduct capability analysis

Identify business opportunities and threats

Recognize organizational strengths and weaknesses

Analyze business problems

Brainstorm potential solutions

Perform feasibility and risk analysis

Compare alternatives to identify pros and cons

Apply cost benefit analysis

Scope change initiatives based on organizational parameters

Develop a business case for change

Business Analysis Tools And Techniques

Effective strategic business analysis relies on sound business analysis tools and techniques.

Examples:

A) Porter s Five Forces

B) Value Chain

C) Theories of Core Competencies