While using a BACoE has many benefits, shifting to this approach can present certain organizational challenges.
Establishing a BACoE resource may destabilize the sense of balance and power within an organization. Executives are required to make decisions based on benefits to the enterprise versus to their specific areas. Functional managers are often afraid of losing their authority and control over the resources assigned to them. In addition, project team members may be unclear about their roles and responsibilities, and how they will be given assignments. These ambiguities may manifest themselves as resistance to change, and could pose a risk to a successful implementation. Therefore, it is imperative that robust coordination and effective communication about how the BACoE will affect roles and responsibilities are part of the implementation process.
Another challenge is that the business drivers behind creating the BACoE must be established very early. If the organization’s motives are poorly defined it can be detrimental to the objectives, purpose, scope, and functions of the BACoE. Also, it’s important to appreciate that the idea for creating a BACoE does not have to come from IT; it can originate from any area. What is important is that the BACoE serves the entire organization, rather than just a small segment of it.
Another potential difficulty that almost every fledgling BACoE eventually runs into is bridging the gap that divides IT and the business. To overcome this, a BACoE must be prepared to provide multidimensional services to all the diverse groups in an organization. This requires making certain that the BACoE is centralized. According to a USAG/SAP survey, “Organizations with centralized COEs have better consistency and coordination, leading directly to less duplication of effort. These organizations configure and develop their IT systems by business processes rather than by business unit, leading to more efficient and more streamlined systems operations.”
In addressing these challenges, it is further helpful to understand what happens in the various phases of BACoE development.
Phase 1: Project-centric. A BACoE is almost always project-centric in its early formative phase. The goals of the BACoE at this stage are to build the confidence of and become an indispensable resource to the project teams. During this early phase, the BACoE is building trusting relationships with business analysts, project managers, functional mangers, and project teams. In addition to developing business analysis practice standards, the BACoE is providing services to the project teams, and training and mentoring for business analysts and high-performing project teams.
Phase 2: Enterprise Focused. As the BACoE begins to win confidence across the organization, it is likely that it will evolve into an enterprise-wide resource serving the entire company. At this point, the BACoE begins to facilitate the implementation of an effective portfolio management system. The BACoE is building the foundation to serve as a strategic business asset providing management with decision support information.
Phase 3: Business Strategy. During the third stage of development, the BACoE is considered a strategic asset serving the executive team. At this point, it is well understood that business analysis has a positive effect on profitability and that organizations achieve strategic goals through well prioritized and executed projects. Emphasis at this stage is in business analysis through the BACoE.
Steps to Establishing a BACoE
Although maintaining and disseminating information using a BACoE can require a significant investment in financial and human capital, the initial establishment of the resource can happen with minimal early efforts:
- Assess the current state. Begin by testing the current skills of your business analysts and conducting focus groups with project managers to understand their needs.
- Determine the desired future state. Evaluate skills and compare them against industry benchmarks such as the IIBA’s Business Analysis Competency Model.
- Perform an analysis of gaps. Identify shortcomings or issues between the current state and the desired state and what needs to be done.
- Specify the desired level of maturity. Once the gaps have been identified, determine what level of maturity is needed to support projects.
- Develop a competency model. Create a framework and strategy of how competencies are achieved, established, and shared.
- Disseminate improvements. Devise a strategy to disseminate needed improvements through internal and external training, pilot projects, self-study, online forums, wikis, and project mentors.
- Maintain and continuously enhance new competencies. Use regular retrospectives, surveys, focus groups, individual competency assessments, and periodic training, and offer opportunities to attend business analysis conferences and networking gatherings.
Implementing a BACoE is a process that takes time and the dedication of experienced professionals. It isn’t a something that gets set-up and is done. Continual improvement of documentation, processes, tools, and training material is needed to keep your BACoE delivering the best possible value to the organization; however, the rewards are worth it:
- Better requirements
- Greater alignment between IT Services and business needs
- More business value
- Strategic capability to gain competitive advantage
- Diversified risks
With Enfocus Requirements Suite™, organizations can find everything they need to establish a BACoE, including a proven BA methodology, central repository, training, and an easy interface for collaboration.
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