Short answer: because every business must continuously change to remain relevant, and every professional should contribute to better decision-making and customer satisfaction to help in the business’s sustainability.
This could be the shortest article I have ever written, but the short answer above can be better detailed and exemplified.
Note: This article refers to a business analyst as a role and not as a job. Read “Professional Business Analyst vs. Business Analysis Professional” to understand the difference.
Business Analysis is about Organizational Change
According to the BABOK Guide, Business Analysis is the practice of enabling change in organizations. Every business analysis professional is a change agent, constantly looking for opportunities to get better outcomes.
Professionals who are not business analysis professionals are just concerned about accomplishing their jobs as scripted. They don’t look for the bigger picture. They don’t care about the outcomes. They don’t want to change.
Innovation as Organizational Change
Innovation should not be confined to a siloed group of scientists and artists in an Innovation Department. Instead, it must be a culture shared by all.
If you work in an Innovation Department or some other kind of change-responsible structure in your organization, your job must not be the bottleneck of change but to foster a culture that engages everyone in your organization to change in the right direction, aligned with the business strategy.
Analysis Everywhere
People in sales or operations, for example, have closer contact with the customer and a more privileged view of opportunities to improve the business and generate better outcomes than scientists out of the line of business. These floor-staff members should always be engaged in defining needs and evaluating solution alternatives. In other words, they should be business analysis professionals too.
An Example in The Accounting Department
Let’s continue with a story about two professionals to illustrate the difference in their approaches when a customer asks about a product.
Imagine two professionals working in the accounting department:
- Gordon: An accountant who is not a business analysis professional
- David: An accountant who is a business analysis professional
Gordon’s Approach
Gordon is focused on routine tasks and ensuring that the books are balanced. When he receives financial data, he processes it according to standard procedures without looking for patterns or insights. Gordon’s main concern is accuracy and compliance. He rarely questions the underlying reasons for discrepancies or anomalies and simply corrects them as needed.
For instance, if Gordon notices an increase in travel expenses, he will ensure they are correctly categorized and that all receipts are in order. He views his role as ensuring that everything matches up and is properly recorded. Gordon doesn’t spend time investigating why there was an increase in travel expenses or whether it aligns with the company’s strategic goals.
David’s Approach
David, on the other hand, takes a different approach. When he receives financial data, he not only processes it but also analyzes it to identify trends, patterns, and potential issues. David sees his role as not just maintaining the books, but also providing insights that can help the business make better decisions.
For example, when David notices the same increase in travel expenses, he digs deeper to understand the reason behind it. He might ask questions like, “Why have travel expenses increased this quarter?” or “Are these expenses contributing to our strategic objectives?” David might discover that the increase is due to more frequent client visits, which are expected to generate new business. Alternatively, he might find that the expenses are not yielding sufficient returns, prompting a recommendation to review the travel policy.
David’s approach is proactive and analytical. He prepares reports that not only show financial data but also interpret it, providing actionable insights for management. He might suggest cost-saving measures or highlight areas where investment could lead to growth. David’s goal is to ensure that financial practices support the overall business strategy.
Another Example in Sales
Imagine now two other professionals working in sales:
- Jack: A salesperson who is not a business analysis professional
- Jane: A salesperson who is a business analysis professional
Jack’s Approach:
Jack is focused on closing the sale. When a customer asks him about a product, he immediately starts describing its features and benefits. He highlights the key selling points and tries to convince the customer that this product is exactly what they need. Jack’s goal is to make the sale as quickly as possible, so he can meet his sales targets. He sees each customer interaction as a transaction, aiming to satisfy the immediate need and move on to the next potential sale.
For example, a customer might ask Jack about a specific software solution. Jack responds by listing its features, such as ease of use, speed, and cost-effectiveness. He emphasizes how it compares favorably to competitors and offers a discount to close the deal quickly. Jack’s approach is straightforward and transactional, aimed at achieving his sales targets.
Jane’s Approach:
Jane, on the other hand, takes a different approach. When a customer asks her about a product, she starts by asking questions to understand the customer’s needs and challenges. Jane is not just looking to make a sale; she wants to ensure that the customer gets the best solution for their problem. She listens carefully, analyzes the information, and provides tailored recommendations based on the customer’s specific situation. Jane’s goal is to build a long-term relationship with the customer, ensuring that they are satisfied and see the value in her advice.
For instance, when asked about the same software solution, Jane begins by asking the customer about their current processes and pain points. She might ask, “What challenges are you facing with your current system?” or “What specific outcomes are you hoping to achieve with this software?” Based on the customer’s responses, Jane can then provide a more customized solution, perhaps suggesting additional features or complementary products that would better address the customer’s needs. Jane’s approach is consultative and strategic, aimed at delivering value and fostering long-term customer relationships.
The Impact of Playing the Business Analysis Role
The different approaches highlight the value of being a business analysis professional.
While Gordon’s method ensures compliance and accuracy, it often overlooks opportunities for improvement and strategic alignment. This can lead to missed insights and reactive decision-making.
Jack’s method might lead to quick sales, but it often overlooks the customer’s deeper needs and long-term satisfaction. This can result in higher customer churn and missed opportunities for upselling or cross-selling.
David and Jane’s approaches, however, exemplify the principles of business analysis.
By understanding and analyzing financial data within the context of the business, David provides valuable insights that drive strategic decisions. His proactive stance helps the organization identify opportunities for cost savings, efficiency improvements, and strategic investments.
Jane understands and addresses the customer’s needs holistically. She not only makes a sale but also builds trust and loyalty. Customers are more likely to return to Jane for future needs, and they might even refer others to her due to the positive experience.
The Moral of the Story
Every professional should adopt the mindset of a business analysis professional. Whether you’re in sales, operations, or any other role, understanding and facilitating organizational change is crucial for business sustainability. By looking beyond immediate tasks and focusing on the broader picture, professionals can drive better outcomes, foster innovation, and ensure their organizations remain relevant and competitive.
Using a business analysis approach can transform everyday interactions into opportunities for meaningful change and long-term success.
References
- The International Institute of Business Analysis
- The BABOK Guide
- Professional Business Analyst vs. Business Analysis Professional
