Defining and Measuring Expected Business Value

Download PDFBusiness leaders and managers who evaluate proposals are faced with the challenge of selecting the most valuable investments for their organizations. They must select problems that are important to solve and that will provide compelling benefits. However, it’s not enough to simply state those two components when pitching a proposal or creating a business case – they must be substantiated through effective business analysis.

Critical thinking must be applied to determine whether the stated problem is a problem and whether the benefits of that solution are sufficient given the investment that is required. Thorough analysis is then required to create the “right” solution – a solution uniquely designed to solve the problem and capture the expected business value.

This course provides frameworks and techniques to help students analyze the business situation and select the best solution. It includes lessons on developing the right KPIs so students can architect and measure success for any solution they propose.

Interactive workshops allow students to practice the techniques as they learn using case studies as well as their own projects.

Learning Objectives

  • Analyze, define, and size a particular problem or opportunity
  • Identify the importance and value of solving (or ignoring) the problem or opportunity
  • Develop a sound solution position statement that clearly describes intended business value and outcomes needed for success
  • Recommend a solution option that delivers the desired outcome and value
  • Establish measures for solution success and benefit delivery
  • Choose “key” measures (KPIs) and describe how this information supports effective program design, project scoping and planning to maximize benefits delivery
  • Identify potential risks to achieving critical solution results and describe the different risk responses and planning strategies, such as mitigation and contingency plans
  • Perform cost benefit analysis and develop a business case to support solution recommendations

Course Outline

Introduction.5 hour

  • Understand the importance of measuring the success of your business.
  • Consider “is it important?” by assessing the situation and defining success.
  • Decide “is it valuable?” by analyzing impacts and assessing options.
  • Determine “is it worth it?” by evaluating benefits and planning strategic value delivery.
  • Measure “Is it successful?” using key measures (KPIs).

Envision Business Success3 hours

  • Determine Business Need
    • Distinguish between problems, issues, and needs
    • Define desired outcome and associated business value
    • Examine the business area. Apply critical thinking to extrapolate business problem(s) from tactical issues and identify organizational impacts
    • Characterize the situation using a problem statement
  • Identify Results for Business Success
    • Contrast success with an acceptable outcome.
    • Identify critical business results. Describe and practice an approach to identifying results required for desired business outcome and value
    • Clearly articulate the problem(s) using the Value Validation Cycle
    • Depict the path to success using a Business Success Ladder

Describe Solution Option Success3.5 hours

  • Identify Barriers to Business Success
    • Describe the difference between Business Success and Solution Success
    • Identify barriers the business must overcome to succeed
    • Examine why the business cannot overcome these barriers; why do they need you?
  • Define Solution Capabilities
    • Derive solution capabilities needed to ensure business and solution success
    • Create a strong value proposition for the solution using the Solution Success Statement
  • Generate and Describe Solution Options
    • Identify potential solution options
    • Understand the decision-making process and how to support it when selecting the “best” solution option
    • Articulate and position the “best” option with a Solution Position Statement
  • Determine Solution Option Results
    • Learn the pattern of results that drive a solution to success
    • Identify the results needed for solution success
    • Validate that the selection option will deliver the desired success and enable achievement of business value
    • Apply key questions and critical thinking to determine if a solution should be pursued

Plan for Performance Success3.5 hours

  • Identify Critical Needs and Performance Conditions
    • Establish critical needs that the solution must address
    • Determine solution performance conditions
    • Depict using a Solution Option Success Ladder
    • Assess solution risk, using context to help strategize responses
  • Establish Measures and Select KPIs
    • Identify measures of performance success
    • Select and quantify KPIs
    • Consider how and where to apply KPI measures across lifecycle

Communicate Business Value3 hours

  • Quantify Solution Option Benefits
    • Identify potential for incremental delivery
    • Clarify solution and objectives
    • Identify and prioritize alternative solutions
    • Perform cost-benefit analysis by identifying impacts, quantifying costs, and calculating both tangible and intangible benefits
  • Document the Business Case
    • Learn a framework for writing an effective business case
    • Use decision criteria to ensure the solution is a sound investment
    • Clarify and communicate scope
    • Consider the affect of risks, assumptions, constraints and dependencies on your recommendation

Course Summary.5 hour

  • Key takeaway review
  • Develop an Action Plan with next steps, based on the student’s current project

Job AidsAppendix

  • Risk analysis and planning
  • Leveraging KPIs across the lifecycle
  • Considerations for problem and opportunity sizing and evaluation

KPI Workshop (Onsite Option)3.5 hours

  • Half day workshop to apply KPIs learning to your project

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expected business value
Request Onsite
Length 2 days
CDU/PDU Earn 14 IIBA CDUs and PMI PDUs
Intended Audience

This course is designed for more experienced or senior business analysts, product managers, product owners, project, program or portfolio managers or any other business partner or project team member involved in problem resolution, impact analysis, proposal, business case or value proposition development, as well as program or project scoping. This course may also be appropriate for individuals who manage people in those roles; it will provide a more in-depth understanding of the process and skill set that enables effective business analysis and delivery of value driven solutions.
Prerequisites This is an advanced topic that expands upon elements presented in our foundation and core analysis classes. We recommend students first attend our Essential Skills for Business Analysis class (or Virtual sub-sets on Requirements Analysis Techniques and Scope Your Area of Analysis), as well as our Business Process Analysis course; or have equivalent experience.
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