Optimice Proprietary 1

Managing the Partnership between BA, PM, Developer, User

Laurence Lock Lee (Optimice)

Paul Meredith (IRM)

Optimice Proprietary 2

Agenda

• The big issue • Value networks • Partnership Scorecards • Exercise: Building the IT Partnership Scorecard

Optimice Proprietary 3

The Big Issue

ITIL Version 3

“ITIL looks for the first time at some business fundamentals and relationships between all players in modern organizations using IT” – Sharon Taylor, Chief Architect (ITIL.org, 2007a).

Six Secrets of Top­Notch Business Analysts – Thomas Wailgum , CIO (CIO Magazine) They are "people persons."

They are diplomats, translators and negotiators.

They have credibility with business colleagues, often gained through previous work experience

They are "people persons."

Optimice Proprietary 4

The Missing Link….

BA Business User

PM

IT Developer

Java…Object classes…code libraries…

Prince 2…CPA…

DFDs…E­R, Data

Dictionaries… ROI…margins …staffing….

Where do IT people learn to partner?

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Value Network Analysis is…

• A business modeling method • Makes visible tangible and intangible value flows across an organisation or business relationship.

• Value flows are assessed and negotiated to maximise and sustain the value achieved from the network as a whole

• Integrated into ITIL v3

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Comparison of Business Analysis Methods

Source: Verna Allee

Process Value Network Use Case • Based on mass production principles

• Based on living systems theory

• Based on Object Orientation Models

• Linear, sequential, mechanistic

• Shows whole system – people, knowledge flows and processes

• Shows interactions between external actors and the business

• Events and functions are central (not people or knowledge flows)

• Puts people and roles at the centre of the action

• Shows process flows between actors

• Shows business transactions

• Shows how knowledge and other intangibles create value

• Focus is on actor – use case interaction

•Works at multiple levels • Reveals dependencies in business transactions

• Does not explicitly address intangibles

• Requires an ordered environment

• Fast and robust ­ works at multiple levels

• Could be extended to incorporate value networks

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Integrating Roles and Processes

Customer Sales Accounts Warehouse Activity

1. Accept/negotiate Order

2. Organise Customer Credit check

3. Price Order

4. Deliver checked order to wharehouse

5. Pack Order and deliver

6. Update Stock Levels Record

Order

Customer Details

Result of check

Priced Order

Goods

Processes Data Intangibles?

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VNA Process

ANALYSE • Identify value exchange mismatches

• Agree on value impact for each role

• Agree on value creation for each role

• Optionally develop partnership scorecard

ANALYSE • Identify value exchange mismatches

• Agree on value impact for each role

• Agree on value creation for each role

• Optionally develop partnership scorecard

DEVELOP • Develop Value Network Map

• Two streams initially • Joint integration

DEVELOP • Develop Value Network Map

• Two streams initially • Joint integration

SCOPE • Scope through identification of roles to be analysed

• Roles defined as part of pre­work

SCOPE • Scope through identification of roles to be analysed

• Roles defined as part of pre­work

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VNA Mapping Rules

• Ovals are Roles • Arrow identify a value flow

• Solid lines are tangible value

• Dotted lines are intangible value

Source: Verna Allee

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IT Development Partnerships

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Process for Interpreting Map

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Exchange Analysis

Purpose:

• Validate or disprove that the network pattern fits its espoused purpose

• Clarify roles and participant attributes • Identify patterns of reciprocity • Reveal key value linkages or missing links • Show overall pattern of value creation • Provide insights into the network value optimisation

VALUE

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Impact Analysis

Purpose • How do specific value inputs bring value to the receiver?

• What is the value and cost/effort for each input? • Are the opportunities to reduce cost/effort or increase value?

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WHAT is The Partnership Scorecard™?

• The Partnership Scorecard™ measures specific role­based flows of value within, or between, organisations

• Value flows can be: – Part of the ‘contract’ ­ also called tangible flows – Expected, but not formalised – also called intangible flows

• Specific and observable measures are included in the scorecard

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What does The Partnership Scorecard™ look like

Red role: Client Organisation Blue role: Service Provider

• Clear description of WHAT is delivered

• Clear description of WHO is responsible for delivery

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Red role: Client Organisation Blue role: Service Provider

• Translating deliverable to electronic survey QUESTION

• Clear identification of WHO will determine performance

• Rating of how WELL it is currently being delivered

What does The Partnership Scorecard™ look like

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How is it developed?

1 2 3

• The Partnership Scorecard™ Process

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Outcomes • Clear agreement of what is important to all roles – Tangible (contractual) – Intangible (non­contractual)

• Clear and actionable areas for improvement identified for each role – ‘What I can do to improve the relationship’

• A scorecard for the overall relationship – Clear direction of specific actions which will increase trust

– High trust = High speed and Low Cost

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Some experiences to date

• “…my experience with the workshop and it's outcomes is that it was a VERY worthwhile day...in that it very quickly identified gaps in relationship and value flows.”

• “…when my colleagues in the office asked me what it was all about, I suggested it was ‘reality modelling’, that is, we were modeling what actually happens.”

• “…this is a great way of dealing with intangibles…not just ‘tree hugging’…gets down to role level accountabilities.”

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The Exercise • Divide up into 2 groups: one representing the BA, the other will represent PM, IT Developer and End User Roles

• Brainstorm (facilitated) value flows between the BA and their respective collaborators; Identifying 4 value flows each round (1 tangible and 1 intangible each way) – Round 1 – BA and PM – Round 2 – BA and IT Developer – Round 3 – BA and End User

• Complete Value Map • Analyse Value Map • Develop Partnership Scorecard

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The BA Value Network

Business Analyst

Business User

Project Manager

IT Developer

???

??? ??? ???

???

??? ???

???

??? ???

??? ???

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Example – Tangible Value Flow

Clear requirements specification

A specification resulting form analysis of

a business users systems needs

BA Business User

O

T

O

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Example – Intangible Value Flow

Honest appraisal of business needs

We need to appreciate the underlying

business needs that are driving system

requirements

BA Business User

O

I

O

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Build and analyse the overall Value Network

• Separate out the Tangibles. The rest are Intangibles

• Assign the Value flows onto the Value Network

• Conduct Exchange Analysis, Impact Analysis, Value Creation Analysis

• Finalise the value network for conversion to the Partnership Scorecard

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The BA Scorecard

Deliverable Cost/Risk Value/

Criticality Delivered

by: Survey Question Assessed

by: Assessed

Performance

Requirement Specification 5 5 BA Provides clear requirement specification PM 3 Advice on risks and possible problems

2 5 BA Provides advice on potential issues PM 4

Project resources 4 4 PM Provides adequate resourcing BA 2 Advice on possible political issues

1 5 PM Keeps us abeast of political issues BA 4

Requirement Specification 5 5 BA Provides clear requirement specification Developer 2 End user insights 2 5 BA Provides insigts inot end user needs Developer 5 Technical Specification 4 5 Developer Provides complete technical specification BA 2 Advice on possibilities 1 5 Developer Suggests insightful and valued solutions BA 2 Requirement Specification 5 5 BA Provides clear requirement specification User 2 Identifies business improvement opportunities

2 5 BA Identifies new ways of improvig the business

User 4

Systems needs 3 5 User Well articulated systems needs BA 1 Rapid feedback and strong collaboration

1 5 User Is very collaborative BA 1

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Scorecard Analysis

0 1 2 3 4 5 6

Requirement

Specification

Advice on

risks and

Project

resources

Advice on

possible

Requirement

Specification

End user

insights

Technical

Specification

Advice on

possibilities

Requirement

Specification

Identifies

business

Systems

needs

Rapid

feedback and

Cost/Risk

Value/ Criticality

Assessed Performance

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And finally…..

• Execute the Scorecard Surveys to assess current performance

• Partnership Scorecard with top relationship chargers developed

• Repeat assessment at an agreed interval

Survey Partnership Scorecard

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Questions / Comments

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