Concepts
Defining or reviewing a business problem or opportunity is a crucial step in any project or business endeavor. This process entails identifying, analyzing, and breaking down the problem or opportunity into actionable components which can be systematically addressed. The techniques used during this phase can directly shape the development of a solution scope statement or contribute valuable input towards creating a strong business case.
5 Whys Technique
One primary technique for problem analysis is the 5 Whys technique, which delves into the root cause of the problem by continually asking ‘why’ until the core issue is unearthed. For example, if a business is experiencing lower than expected sales, the 5 Whys technique may reveal that the problem is not purely related to the marketing strategy, but perhaps rooted in an inferior product offering.
SWOT Analysis
Another valuable technique is SWOT analysis, which stands for Strengths, Weaknesses, Opportunities, and Threats. This analysis provides a comprehensive overview of both internal (Strengths, Weaknesses) and external factors (Opportunities, Threats) that could be affecting the problem or opportunity. Using the previous example, the SWOT analysis may show that while the company has a devoted customer base (strength), the product offering has not been updated to stay competitive (weakness), though the market is expanding (opportunity), with major competitors already capitalizing on the trend (threat).
Opportunity Analysis with PESTEL
Opportunity analysis also employs important techniques such as PESTEL analysis, which evaluates the political, economic, social, technological, environmental, and legal factors that could impact an opportunity. For instance, entering a new market may be an enticing opportunity, but a PESTEL analysis could reveal legal hurdles that would make it substantially less appealing.
Once the problem or opportunity is fully understood, this analysis sets the stage for crafting a solution scope statement or business case. The currently analyzed data shapes the direction, scale, and feasibility of these actionable components, making the prior analysis an invaluable part of this business process.
Illustration of the Process
| Stage | Technique | Potential Example |
|---|---|---|
| Problem Analysis | 5 Whys technique | Discovering root cause of low sales is an outdated product |
| Problem / Opportunity Analysis | SWOT Analysis | Identifying strengths, weaknesses, opportunities, and threats affecting low sales |
| Opportunity Analysis | PESTEL Analysis | Evaluating external factors affecting decision to enter a new market |
| Developing Solution Scope Statement / Business Case | N/A | Using analyzed data to shape feasible, directed solution |
Conclusion
Hence, employing appropriate techniques to define and review business problems or opportunities is an essential part of the process when preparing for the PMI Professional in Business Analysis (PMI-PBA) exam. A robust understanding of these methods can pave the way towards creating insightful solution scope statements and compelling business cases.
Answer the Questions in Comment Section
True or False: Balancing scope, schedule, budget, and resource constraints with the value proposition is necessary for allocating accepted or deferred requirements effectively.
- True
- False
Answer: True.
Explanation: Ensuring a balance between the project’s various elements and its value proposition aids in making knowledgeable decisions about accepting or deferring requirements.
Multiple select: What are the useful tools and techniques for deciding on accepting or deferring requirements?
- a) Prioritization
- b) Dependency Analysis
- c) Budgeting
- d) Risk Analysis
Answer: a) Prioritization, b) Dependency Analysis.
Explanation: Prioritization aids in maintaining a focus on high-value tasks, and dependency analysis helps to understand the impact of deferring certain requirements.
Single Select: What does a requirements baseline represent?
- a) The initial project plan
- b) The documented requirements to be delivered
- c) The final execution plan
Answer: b) The documented requirements to be delivered.
Explanation: A requirements baseline includes all the accepted requirements to be delivered upon completion of the project
True or False: The Value proposition has no role in the allocation of accepted or deferred requirements.
- True
- False
Answer: False.
Explanation: The value proposition is important in decision-making as it helps to understand what will add value to the project or business.
Multiple select: What does balancing during allocation of requirements involve?
- a) Scope
- b) Schedule
- c) Budget
- d) Value proposition
Answer: All of the above.
Explanation: Balancing involves evaluating and monitoring all these factors to ensure the project delivers its intended value.
True or False: Creating a requirements baseline does not involve the use of decision-making tools and techniques.
- True
- False
Answer: False.
Explanation: Decision-making tools and techniques are essential for establishing a requirements baseline, which involves crucial decisions on what to accept or defer.
Single select: What can adversely affect the scope of the project?
- a) Redefining Requirements
- b) Uncontrolled Changes
- c) Miscalculations in Budget
Answer: b) Uncontrolled Changes.
Explanation: Uncontrolled changes can create scope creep, which may compromise the project’s objectives.
True or False: All of the project requirements can be delivered without considering any constraints.
- True
- False
Answer: False.
Explanation: Every project faces constraints like schedule, cost, and scope. Effective management of these constraints is necessary to deliver the project requirements.
Single select: Dependency analysis is used to understand the _________ of deferring or accepting certain requirements.
- a) Impact
- b) Cost
- c) Time
Answer: a) Impact.
Explanation: Dependency analysis shows how certain requirements are related, helping to understand the potential ramifications of deferring or accepting them.
True or False: Prioritization does not influence the budget constraint.
- True
- False
Answer: False.
Explanation: Prioritization can impact the budget constraint, as financial resources often need to be reallocated to higher-priority tasks.
Multiple select: Which constraints need to be considered while allocating resources?
- a) Schedule
- b) Scope
- c) Budget
- d) Value proposition
Answer: All of the above.
Explanation: All these factors play a crucial role in allocating resources effectively and efficiently.
Single Select: What is the importance of creating a requirements baseline?
- a) It helps in tracking project status
- b) It provides a reference point to verify project results
- c) It aids in resource allocation
Answer: b) It provides a reference point to verify project results.
Explanation: A requirements baseline allows the project team to compare the actual results with the planned requirements, enabling accurate verification of project results.
Great post! The emphasis on balancing scope, schedule, budget, and resource constraints with the value proposition is critical.
I appreciate the detailed explanation on dependency analysis. It’s an often overlooked aspect in project management.
Prioritization is definitely key. Using decision-making tools can make this process a lot smoother.
Could someone explain what a requirements baseline is and why it is important?
Thanks for this. I’ve always struggled with balancing scope and schedule. The blog really helped.
The blog mentioned dependency analysis tools but didn’t specify which ones are the best. Any recommendations?
Appreciate the post!
I found the segment on balancing constraints particularly useful. It’s not easy but very necessary.