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The Six-Step Process for Evaluating Stakeholder Requests
An Article fromRMC Learning Solutions
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Copyright © 2017 RMC Publications, Inc. All rights reserved. Except as permitted under the United States Copyright Act of 1976, no part of this publication may be reproduced or distributed in any form or by any means, or stored in a database retrieval system,
without prior written permission of the publisher.
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Table of Contents
Meet the Author . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
How Do Projects Get Started? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .5
Step 1: Receive the Request for Work . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .6
Step 2: Analyze the Request . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
Step 3: Agree on a Solution Approach and Develop a Business Case . . . . . . . 11
Step 4: Prioritize Against Other Potential Projects . . . . . . . . . . . . . . . . . . . . . . . . 12
Step 5: Get Approval and Funding . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
Step 6: Assign a Project Manager and Start Planning. . . . . . . . . . . . . . . . . . . . . .13
Conclusion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .13
About RMC Learning Solutions™ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .14
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Meet The Author Barbara A. Carkenord, CBAP®, PMI-PBA®, PMP®, PMI-ACP®
Practice Director and Trainer—Business Analysis
Barbara A. Carkenord, Director of Business Analysis at RMC
Learning Solutions has over 25 years’ experience in business
analysis, and is one of the original founders of the Business
Analysis training industry. Barbara possesses an MBA from
the University of Michigan. In 2010 Barbara was named
Small Business Woman of the Year by the Georgia Women in
Technology.
Industry certifications include:
• IIBA’s Certified Business Analysis Professional (CBAP®)
• PMI’s Professional in Business Analysis (PMI-PBA®)
• PMI’s Project Management Professional (PMP®)
• PMI’s Agile Certified Practitioner (PMI-ACP®)
Publications include:
• PMI-PBA® Exam Prep, Premier Edition, 2016
• Seven Steps to Mastering Business Analysis, 2008
• Contributor to IIBA’s A Guide to the Business Analysis Body
of Knowledge V2 (BABOK® Guide), 2009
• Contributor to IIBA’s Managing Business Analysis, 2011
• CBAP®/CCBA® Exam Prep, 2012
• Expert reviewer of IIBA’s A Guide to the Business Analysis
Body of Knowledge® (BABOK® Guide) version 3
Barbara A. Carkenord, CBAP®, PMI-PBA®, PMP®, PMI-ACP®
Connect with Barb twitter.com/bcarkenord
linkedin.com/in/bcarkenord
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How do projects get started?
How do projects get started in your organization? If you’re
thinking, “well, it depends,” you are not alone. Few organizations
have a well-defined, consistent way of deciding when work
becomes a project. However, a strong business analysis practice
can save an organization significant time and money by weeding
out low-value projects and prioritizing valuable ones based on
business need and realistic, expected benefits.
To get a great start on a project, have a business analyst look at it before you start.
The six-step process shown below provides a structure for evaluating stakeholder requests. Following a
consistent process assures stakeholders that every request will be considered equally. As titles and job
responsibilities vary in organizations, any professional with strong business analysis skills can manage this pre-
project work. People involved in this evaluation are typically portfolio managers, program managers, project
managers, business managers, or business analysts.
How should a project
get started?
1. Receive request for
work
2. Analyzerequest
3. Solution vision or scope (with business case)
4. Prioritize against other
requests
5. Get funding and sponsor
approval
6. Assign project manager
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Step 1: Receive the Request for Work
All work starts with a request. Think of this as a potential project. Someone inside or outside the organization
asks for something to be changed, added, or removed from the organization’s processes or systems.
Requests may be submitted formally through organizational processes or informally via phone call or email.
There are generally three types of requests:
A problem.
The requester or problem owner may have called a help desk or filled out a problem ticket. Maybe a
business executive wants their department to run more efficiently and save money. Problems are often
solved by changing existing systems or processes or by developing a new product. For example, to
increase productivity, a business owner requests that a data entry screen replace a paper form.
An opportunity.
People often imagine ways an organization can improve or increase revenue. An opportunity could
help a company move toward its goals more quickly. An opportunity may be a new product idea or
process improvement. For example, a sales person offers a customized product to a customer who is
willing to pay a higher price for the added value.
A constraint.
Constraints may be imposed on an organization by management’s internal policy or by an outside
agency. For example, a regulatory agency notifies an organization about a new regulation and its
required compliance date.
A request is the trigger that sets work in motion. Requesters are the first known stakeholders.
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Step 1: Receive the Request for Work (continued)
Ideally, your organization has a single place where all requests are submitted for analysis and prioritization.
Analyzing each request as it is received could be referred to as triage. In an emergency room, personnel
immediately assess each patient to determine the extent and immediacy of their issue. Patients are prioritized
based on this assessment. Likewise, in an organization, a designated analyst should review requests and make
preliminary assessments of magnitude, urgency, and priority.
Triage
Problem OpportunityConstraint
(e.g., new or updated policy or regulation)
Requests(the business need)
Internal (e.g., decrease costs, improve employee productivity)
External (e.g., new product, new distribution channel)
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Step 2: Analyze the Request
Not every request will bring the same business value to the organization. Some requests are better than
others, and some requests may not be good at all. The organization needs to analyze the value of each
request and prioritize accordingly.
Creating a data entry screen to replace a paper form will save time for employees and customers entering
information. We can easily measure the benefit of this change. If employees fill out 10,000 electronic forms
per month and each one saves about five minutes compared to a paper form, we can save 50,000 minutes
(833 hours) per month. This is roughly half of one full-time employee’s time saved.
Some requests are not as easy to quantify. Estimating business value also requires estimating costs,
including design, construction, implementation, and maintenance of the solution. When a customer asks for
a customized product, it may require design time, interrupt other work, and cost more than the customer is
willing to pay. However, keeping an existing customer happy may be more important than the time needed to
customize one product. Intangible benefits like this should be included in the assessment. Weighing the pros
and cons of a request requires cost/benefit analysis and an understanding of business value.
What Is Business Value?Each requestor believes their request will bring value to the organization. Business analysts know how to
assess and measure business value and can help articulate that value to others. The term “value” goes beyond
the worth or price of something. It can also be influenced by intangible values or missed opportunity costs
(costs and benefits of not doing an activity).
Example Business Values
Long-term stability of the organization Customer loyalty and satisfactionInnovationQuality products Money and shareholder valueBrand awarenessIndustry leadership Security BeautyImpact on the environment Justice and fairness
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Step 2: Analyze the Request (continued)
Every project request should be evaluated for its estimated business value and prioritized accordingly. Even
individual requirements are prioritized based on their potential business value. Traditionally, project success
is evaluated on variances from the planned budget, time constraints, and requested product quality. But a
project can be well run, come in on time and within budget, and still not provide value to the organization
or solve the identified problem. Project success should be measured by the actual business value created
compared to the expected value. Select high-value projects by spending time up front determining the
expected business benefits and the costs.
Would the Idea Provide Organizational Business Value?Project objectives should articulate the expected business value to the organization. However, defining
project objectives is challenging because stakeholders often have conflicting values. Business analysts often
facilitate conversations about these value discrepancies to help the group come to a consensus based on the
organization’s overriding vision and strategic goals.
Some requests benefit an individual department or division while shifting work to another group. For
example, when a company asks their franchisees to enter their orders onto a web site, the company has
shifted the data entry work to their franchisee. They haven’t improved the overall process, just shifted the
work to a different group. This type of request does not bring overall organizational value and should be
rejected or refined.
Some requests may help a specific business area but don’t align with the organization’s strategy and goals.
Imagine asking for a change to a software package which will be replaced within six months. Making a change
to an obsolete system does not align with organizational plans. These requests should also be rejected.
When stakeholders have a conflict over requirements or expected benefits, the analyst should elicit each
perspective to resolve the conflict. Maybe one stakeholder wants to simplify a process (value: decreased
cost), while another stakeholder wants to add a new product to the catalog (value: increased revenue). These
are both positive ideas for the organization but would result in very different projects. Help stakeholders
reach agreement by facilitating discussions about the organization’s goals, the estimated cost and net
business value of each idea.
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Step 2: Analyze the Request (continued)
The Three Buckets: MUST DOS, REJECTIONS, and LOOKS PROMISINGInitially, every request can be added to one of three buckets: MUST DOS, REJECTIONS, or LOOKS PROMISING.
Understanding the reason for each request is critical, as business analysis work differs based on the type of
request. For example, if a request will resolve a serious problem impacting the organization’s ability to do
business, it immediately becomes a MUST DO. However, if the request will cost more to implement than it
will save in expected benefits, it should be REJECTED. If a problem is less immediate, the request is placed in
the LOOKS PROMISING bucket to be further analyzed and prioritized. If a request highlights an opportunity,
the analysis work could include estimating potential benefits, performing competitive analysis, or generating
alternative solution ideas. Some requests are constraints, such as a new government regulation, and have few
solution alternatives. In this case, business analysis work focuses on bringing the organization into compliance
with the new constraint while minimizing negative impacts.
MUST DOs (e.g., regulations, critical problems)
REJECTIONS(not enough
potential business
value)
LOOKSPROMISING
(needs further analysis)
StakeholderRequests
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Step 3: Agree on a Solution Approach and Develop a Business Case
When initial analysis confirms the request is worth pursuing (in
the MUST DOS or LOOKS PROMISING buckets), the team needs
to discuss solution alternatives and assess the estimated costs
of each. Most requests can be addressed in a few different ways,
and an excellent business analyst never gets locked into one
solution before considering other options. For example, to replace
a paper form with a data entry screen, the form could be built
into an existing website, mobile app, or voice recording system.
Teams often use brainstorming techniques to generate creative,
innovative ideas for solutions then analyze each possible idea.
Regardless of method, all feasible options should be considered
before one is chosen.
“Highlighting the value of each request helps the organization better compare and prioritize projects.”
Once the requester, business analyst, and other key stakeholders agree on a solution approach or product
vision, the business analyst helps estimate the business value that will be achieved if this solution is built. They
also work with technical designers and architects to estimate the costs involved in designing and building the
solution along with expected maintenance costs. These benefits and costs are then compared in a business
case or cost/benefit analysis to determine if the request should move forward. The business case includes the
estimated net business value of the request with objective, measurable criteria. Highlighting the value of each
request helps the organization better compare and prioritize projects. Keep in mind, however, that financial
considerations are only one component of project selection.
If a request is rejected, it is useful to document the reasons. Similar requests may be submitted in the future,
so having a history of past decisions will help expedite future triage. Keep in mind that business conditions
are constantly changing. A request that didn’t make sense last year may be more viable this year, so it is
important to verify the assumptions and the expected outcomes of each request.
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Step 4: Prioritize Against Other Potential Projects
Once a request has a business case, it can be prioritized against existing requests. This backlog of requests
should be reviewed on a regular basis, and the highest priorities should be promoted to projects.
Organizations that don’t follow this six-step process often struggle with prioritization. Sometimes
the requester with the highest position in the organization gets their requests prioritized. Sometimes
organizations respond first to the requests that are smallest or easiest to complete and never get to the
bigger, more complicated initiatives. Other organizations try to work on every request and wind up with
overworked employees and few completed projects. Prioritization is difficult, but it is much easier if each
request has a business case and a strategic plan for comparison.
When the value is financial, there are many formulas that can be used to evaluate and compare options.
Return on investment (ROI) calculations estimate how much the organization will receive if they fund
the potential project. Payback period is the length of time it will take for the organization to recover the
investment in the project. Other financial measures, such as the internal rate of return (IRR) and net present
value (NPV), may be used. However, value can’t always be calculated in financial terms. In some cases, the
best choice might be a project with a longer payback period but other intangible advantages (like keeping a
good customer happy).
Step 5: Get Approval and Funding
Just because a request is likely to add business value doesn’t mean the organization has the time or resources
to complete it immediately. Once a request has been analyzed and prioritized, someone in the organization
must provide funding. The project sponsor, as the key stakeholder, is the person or group (such as the
steering committee) who provides the funding for the project. The sponsor may be the original requester, the
requester’s manager, or an executive. If particular skills are needed for this project, the sponsor could move
employees off lesser-value projects or look for outside resources to fill the gaps. If the project was requested
by an outside customer, the price is established, and a proposal is presented to them.
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Step 6: Assign a Project Manager and Start Planning
Only after completion of the previous five steps does a request become a real project. At this point, the
organization assigns a project manager who begins planning the project. When these six steps are complete,
the project manager has great information with which to plan. If a project manager struggles during project
planning, it may be an indication that this pre-project analysis was not done.
Conclusion
People suggest hundreds of ideas to improve their organizations. Every organization needs an objective,
consistent evaluation system for considering these ideas. Each idea must be evaluated on its potential
business value, alignment with corporate strategy, and the availability of resources. When all ideas are
evaluated in the same manner, the best ideas will be pursued, project plans will be more accurate, and every
project will move the organization towards its strategic goals.
How does this process compare to your organization’s process for evaluating stakeholder requests? Business
analysis work is not just about requirements, use your business analysis professionals to help everyone in the
organization understand business value and assess the importance of their requests before your organization
starts a project.
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About RMC Learning Solutions™
RMC Learning Solutions develops and trains project managers,
business analysts and agile practitioners by helping them learn
the skills necessary to succeed in their careers. We deliver a wide
range of training in multiple learning formats across the globe.
Founded in 1991 by Rita Mulcahy, the company continues to
develop and provide innovative, real-world tools and instruction,
delivered by professionals with extensive experience and a
working knowledge of industry best practices.
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If you are considering business analysis training for your team, contact RMC at 952.846.4484 or email us at info@rmcls.com to learn more about our training options.
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