Our Requirements Are Good, So Why Aren’t We Delivering Value? · PMI’s Pulse of the Profession...

Our Requirements Are Good, So Why Aren’t We Delivering

Value?

Presenter:Joy Beatty, VP Seilevel

2

Presenter: Joy Beatty, Seilevel

Role: Develop new elicitation and modeling methodologies, build business analysis centers of excellence, train industry BAs, work on projects as a Business Architect

Community contributions: • Member of the IIBA BABOK v3 Core Team • Co-author of PMI’s Business Analysis for

Practitioners: A Practice Guide• Industry PC for IEEE Requirements Engineering • Co-chair for Requirements Engineering Education and

Training Workshop• Previous IIBA® Austin Chapter VP of Education• IREB team memberCo-Author:• Visual Models for Software Requirements with

Anthony Chen• Software Requirements, 3rd Ed. with Karl Wiegers

OUR

AGENDATOPIC YOU WILL LEARNMeasuring BA Success Ways to evaluate the effectiveness of the BA

Quantifying Business Value How to create measurable business objectives and use them on the project

Metrics that Matter Which metrics executives care about that also reflect your success

Our Results at Measuring Success

Examples of measuring success that you can replicate

Now What? 4 things you can do tomorrow on your own project

47%of unsuccessful projects fail to meet their goals due to poor requirements management

Source: PMI’s Pulse of the Profession: Requirements Management — A Core Competency for Project and Program Success, August 2014

Am I doing a good job?

How do I measure my BA

team’s performance?

Our CIO wants to cut the BA

team back; howdo I show our

value?

Developers don’t think my

requirements are very good; are they

right?

Am I having any impact?

How do you measure the quality of the BA’s work today?How do know if the BA is doing a good job?How do you know if the requirements are good?

Share some ideas in the chat box!

Discussion

Well written?Complete?Atomic?Testable?No ambiguous words?Coherent?Verified?

Pass the quality checker?Glossary clear?Unique identifiersConsistent....

Measuring Requirements Quality

47%

We are emphasizing the wrong part of this phrase…

Source: PMI’s Pulse of the Profession: Requirements Management — A Core Competency for Project and Program Success, August 2014

of unsuccessful projects fail to meet their goals due to poor requirements management

of unsuccessful projects fail to meet their goals due to poor requirements management

Requirements: A means to an end

Example: Does the boat float?

Resources are focused on the wrong thing!

69 million results

6 million results

Google search results

Google search results: March 2014

OUR

AGENDATOPIC

Measuring BA Success

Quantifying Business Value

Metrics that Matter


Now What?

Business Objectives Quantify the Value so we can Measure Whether we Deliver It

ExampleReduce chemical

purchasing expenses from 1M to 750K in the first

year

Business benefit that an organization expects to receive

Increase revenue or cut costs

Exploration Investment Delivery Realization Elimination

But remember, business value is delivered when a solution meets a business need

Strategy

Identify business value

Run project

Realize business value

Do you use business objectives today?How are they used? How could you use them if you had them?

Share your responses in the chat window!

Discussion

Understand business objectives

Assess the value of features

Cut what isn’t necessary

Prioritizing Projects and Features

Understand business objectives

Assess the value of projects

Cut what isn’t necessary

Objective Chains: Quantify the Value

Objective Factor

Business objective

Objective Factor

Feature

Feature $100K

$500K

Feature $1M

Feature $10K

Example: Quantify the Value of Features

$200 avg/chemical

x 500 chemicals/yrredundancy

Cut expenses by $250K in

year 1

Inventory knowledge eliminates

extra purchases

Stockroom inventory recording

$100K

Chemical container images

$10KImages eliminate accidental purchases

$200 avg/chemical

x 50 chemicals/yrmistakes X

Customer creates cartCustomer creates cart

Customer contacts call

center


center

Customer edits cart live with

Rep


Rep

Rep edits cartRep edits cartRep imports cartRep imports cart

Customer completes sale

online


online

Rep completes sale

Rep completes sale

Rep exports cart to Customer


Customer creates cartCustomer creates cart


center


center


Rep


Rep

Rep edits cartRep edits cartRep imports cartRep imports cart


online


online

Rep completes sale

Rep completes sale


Rep exports cart to CustomerX X

X$12M

$2M

$250K

Case study: Scope cut 80% to meet deadline

Target ROI = $14M

Original scope would cause missed deadline = $0M

Results: scope cut to achieve $12M ROI

OUR

AGENDATOPIC



Metrics that Matter


Now What?

66% of projects meet goals when executive sponsors

value requirements

Only 44% meet goals when they don’t

PMI’s Pulse of the Profession In‐Depth Report: Requirements Management, A Core Competency for Project and Program Success (2014)

50% more projects meet goals when executives value requirements

Requirements Need Executive Support

Metrics Related to Reducing Missed Requirements: Are these good enough?

Number of missed requirements

Number of requirements models used

Number of requirements mapped to models

Number of requirements changes after developed

BUT, even CIOs Aren’t Thinking About Requirements

*2013 SIM IT Trends Study, Leon Kappelman, PhD, Primary Investigator

Top IT Issues

1 Business/IT alignment

2 Business agility

3 Business productivity

4 Cost reductions

5 Time to market

Top IT Success Metrics

1 On time

2 On budget

3 Customer satisfaction

4 SLA targets

5 Productivity

6 ROI

Disconnect?

Increase business alignment

Shift budget to things that add the most value

Decrease time to market

Based on: Borland’s “When Agile and Waterfall Collide” seminar Jan 2013, Seilevel research and customer experiences

Top IT Executive

Goals


business value delivered

end user adoption

IT budget to things that add the most value

portion of expected value delivered by IT


frequency of releases to users

Metrics That Do Matter

rework dollars spentprojects and features cut


business value delivered

end user adoption

IT budget to things that add the most value

portion of expected value delivered by IT


frequency of releases to users

Some Metrics are “EASY” to Start Measuring Today

rework dollars spentprojects and features cut

Business objectives exist

Business objectives measured after project launches

Unnecessary features cut

% of projects that are late

OUR

AGENDATOPIC



Metrics that Matter


Now What?

SURVEY RESULTS: Are Projects Measuring Business Objectives?

Projects that know measurable business

benefits

Projects that know the measurable benefits well

enough to prioritize features

They might know them,

but not in any real detail to

be useful

SURVEY RESULTS: Does Business Prioritize Using Value?

Business does reasonably

well selecting projects

But not as good at

selecting features

Customer

1 2 3 4 5

Number of projects looked at 6 7 3 6 100+

Have business objectives 6 7 3 4 0

Measurable 4 5 3 4 0

Business objectives are related to money 2 5 1 1 0

Measured whether met business objectives

0 0 1 0 0

PROJECT ANALYSIS: Examples of Use of Business Objectives

96% Projects have defined end‐state success

67% Projects use success daily to drive activities

PROJECT ANALYSIS: Defining Success, then Using It Throughout

*Out of 24 projects

SURVEY RESULTS: Top 3 Reasons for Project Failure

Poor developer execution

Not enough development time or developers

Insufficient funding allocated

Poor tester execution

Not enough time from the business stakeholders

Too many features without value

Poor business analyst execution

Not enough time to do the requirements

The plan wasn't realistic

Business stakeholders change their mind

Business stakeholders don't know what they want

0.00% 10.00% 20.00% 30.00% 40.00% 50.00% 60.00%

Problems tend towards

business and requirements

issues

Case Study: Percent of features cut

Experienced BA’s capability

0%10%20%30%40%50%60%70%80%90%

100%

Project 1 Project 2 Project 3 Project 4 Project 5

Cut Final Scope

Project 6

Typical customer BA’s natural capability

65% of features are RARELY or NEVER used

27 mostly text‐based requirements documents with 1490 requirements

Team partially retrofitted requirements with models to identify gaps

Case Study: Models to Identify Requirements Gaps

82 initial models (poor

quality)

345 additional models created

(partial retrofitting)

178 requirements

new or changed

requirements

12% of requirements had issuesand

Average 2 issues per initial model

OUR

AGENDATOPIC



Metrics that Matter


Now What?

Business Analysis is Core to Deliver Business Value

Explore a range of ideas to ensure we don’t miss

opportunities for business

value Use strategy to screen out projects that don’t support our goals

Define business

objectives to link problems and features

Make feature choices using objective chains

Be Ready for the Challenges

1 Can't measure business value until projects are over (and teams are gone)

2 Data doesn’t exist today

3 People don't want to be held accountable for actual results

What Can You Do Tomorrow?

…so that YOUR projects deliver business value!

Cut minimal value

features from scope

Pick 1 metric and measure

it

Identifybusiness

objectives for your project

Link requirements to business objectives

Key Takeaway: Requirements are a means to an end.

The requirements are perfect. But, does the boat float?

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Questions & Read More

• Visual Models for Software Requirements (Beatty and Chen 2012)• Software Requirements, 3rd Edition (Wiegers and Beatty 2013)• Business Objective Chains White Paper www.seilevel.com/business‐objective

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Contact Slide

www.seilevel.com

Search: Seilevel, Joy Beatty

@Seilevel @joybeatty

www.facebook.com/Seilevel

[email protected]

Our Requirements Are Good, So Why Aren’t We Delivering Value? · PMI’s Pulse of the Profession...

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