Strategy Analysis

An organizational strategy is a definition of how an organization applies its capabilities to reach desired outcomes in an effective and efficient way. Strategy analysis is about guiding and supporting the organization through analysis to remain successful at achieving those desired outcomes.

This chapter covers tasks that are used to define the most effective way for an organization to move toward a defined business goal or objective. It addresses the business analysis task of defining the current state by identifying business needs in collaboration with stakeholders, establishing a desired future state description, assessing risks, and defining a strategy to implement changes to the organization.

By the end of this chapter, you will have learned about the key activities a business analyst performs to support an organization, department, or initiative to achieve...

What is Strategy Analysis?

Let's start this chapter by understanding the term strategy in the context of business and, more specifically, business analysis. Strategy refers to the concept of defining the most effective method or path to apply capabilities within the organization to achieve results for the desired set of goals or objectives.

In the specific context of business analysis, the Strategy Analysis knowledge area describes the work involved in defining a business need that is of strategic (or tactical) importance by working in collaboration with business stakeholders. This includes work that will enable the business to address the need as well as to align the change with other business strategies at higher and lower levels of the organization.

Strategy analysis is also about defining the future states that should be the result of addressing the identified business...

The Business Analysis Core Concept Model™

First, let's refresh our memory of the six core concepts described in the Business Analysis Core Concept Model™:

• Change
• Need
• Solution
• Stakeholder
• Value
• Context

Here, we consider how strategy analysis as a knowledge area applies to the Business Analysis Core Concept Model™ through the use of a practical example.

Change

This core concept refers to how a change strategy is implemented to support the defined future state.

Let's look at an example to bring this concept of Change to life:

The New Orleans Electricity Company recently made the strategic decision to only issue electronic statements to their customers. A recent legislative change has allowed...

Task: Analyze Current State

The first task described as part of the strategy analysis knowledge area is defined as analyzing the current state of the organization or business area under consideration. It is about understanding what is currently being done, performed, or executed to achieve particular goals or outcomes.

In this section, we cover the need to understand the current state of an organization and each element that should be considered when you perform a current state analysis. You will also learn that current state analysis is an essential analysis activity to help the organization understand the true nature of the business needs.

Purpose

According to the BABOK® v3 guide, the purpose of Analyze Current State...

Task: Define Future State

The second task described as part of the strategy analysis knowledge area is to define the future state of the organization or business area under consideration. This task is an important business analysis activity to support the business on its journey to define the future vision for the solution to the business needs. This task is about understanding what the desired outcomes or results we are expecting are by making the change when addressing the business need.

In this section, we cover those business analysis elements that help you formulate and analyze all the aspects of establishing a desired future state. Each of those elements needs careful consideration as part of defining the future state.

Let's start this discussion by understanding the purpose of defining the future state.

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Task: Assess Risks

The third task described as part of the strategy analysis knowledge area is to assess risks that exist in the context of moving into the future state or once the organization is in the future state.

As a business analyst, this is an important task to incorporate into your work because the business analyst is in a unique position to understand the business needs in detail as well as to have a broad understanding of the solution aspects being considered. This enables the business analyst to identify and assess risks during the course of an initiative. In this section, we will learn about the key elements to consider when assessing potential risks. We will address the key aspects of making suitable recommendations to stakeholders in terms of the best course of action once risks have been assessed for an initiative.

Let's start by understanding the purpose...

Task: Define Change Strategy

The fourth task described as part of the strategy analysis knowledge area is to define the change strategy. This task is about understanding alternative approaches that could be taken to a change and what is involved in making a choice about which alternative to moving forward with.

Defining the change strategy is a key task in the context of business analysis because it supports the transition from the current state to the desired future state in a planned and systematic way. It guides and ensures that the change strategy is supported by sound analysis of the elements that influence the success of an initiative. In this section, we will cover the analysis elements that are key to the successful execution of a change strategy.

Let's start by understanding the purpose of defining a change strategy.

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Summary

In this chapter, you have learned about the strategy analysis knowledge area.

The following are the key concepts and tasks we covered during this chapter:

• The strategy analysis knowledge area
• Task: Analyze Current State
• Task: Define Future State
• Task: Assess Risks
• Task: Define Change Strategy

Make sure you revise these before completing the knowledge quiz at the end of this chapter.

You now have an understanding of the importance and purpose of the strategy analysis knowledge area and know the scope of performing analysis tasks for an initiative from a strategic analysis perspective.

Learning outcome: Strategy Analysis

You now have a holistic understanding of the importance and purpose of the strategy analysis...

Knowledge quiz

Consider the following real-world scenario and complete the micro mock exam based on this chapter that follows.

Case Study: Police criminal record management system

Program initiative background: The Australian police force currently uses an old mainframe system to record any police incidents and criminal record information. This system is very outdated and not user-friendly at all. New, younger police officers find it particularly hard to learn because it is very unfamiliar, old-fashioned technology. Although this system contains a wealth of criminal record data, some of this data is inaccurate and it is very hard for police officers to find any critical information in a timely fashion. This means that due...