Business Analyst and Product Owner: What is the difference?

Navigating the complexities of roles in product development, especially understanding the distinct functions of a Product Owner (PO) and a Business Analyst (BA), can be challenging. A recent viral post with a shout-out loud on LinkedIn revealed significant interest and confusion regarding these roles. This video aims to clarify the unique responsibilities and contributions of POs and BAs, drawing from insights shared in a popular online discussion.

This article summarises the main points from the video, but I recommend you to watch it above.

The Role of the Product Owner in Scrum

In the Scrum framework, a key figure is the Product Owner. Responsible for deciding what aspects of a product are most valuable and need development, the PO is accountable for managing the product’s backlog, and guiding the development team through each sprint. Their role is pivotal in prioritizing tasks and determining the product’s direction. One crucial aspect of the PO’s role is their delegated authority to direct the team towards what’s most important, ensuring that the product development aligns with strategic goals.

Defining the Business Analyst Position

Contrasting with the PO’s role is the Business Analyst, a role defined broadly by the BABOK Guide created by IIBA – The International Institute of Business Analysis. The BA’s function transcends specific job titles, encompassing tasks like understanding organizational objectives, engaging with stakeholders, and fostering collaborative solutions. The BA’s goal is to elicit, analyze, and translate business needs into actionable strategies, thereby creating business value. This role is not confined to a single job title but can include consultants, corporate architects, process analysts, and even product owners. That’s why I say “All product owners should be business analysts”.

Collaboration between Product Owners and Business Analysts

When both roles exist in an organization and are done by different people, effective collaboration between Product Owners and Business Analysts can significantly enhance project outcomes. While the PO focuses on the product specifics, the BA brings a broader business perspective, understanding interfaces between different business areas, roles, and systems. This synergy ensures that product improvements are aligned with broader business goals and stakeholder expectations.

Models of Business Analysis in Organizations

Different organizational models illustrate the varying implementations of business analysis. In smaller companies, a product manager often doubles as the PO, directly interacting with the IT delivery team. As organizations grow, the role may be delegated to a team member. In some models, a business analyst may assume the dual role of BA and PO, especially in IT. The ideal setup often involves the PO and BA working closely, each from their specialized perspectives, to guide the development team in creating solutions that meet customer and business needs.

Decision-Making in Business and Product Development

A significant distinction between POs and BAs lies in decision-making. The PO is typically expected to make key decisions about the product’s direction, whereas the BA focuses on analysis and recommendations. BAs use their skills to identify problems and potential solutions, presenting these findings to decision-makers. In contrast, POs are often decision-makers themselves, determining the course of the product development based on their analysis and team inputs.

Conclusion

Understanding the distinct roles of Product Owners and Business Analysts is crucial for the success of any product development project. While their focuses differ — with POs centering on product specifics and BAs on broader business impacts — there is a huge overlap in competencies and skills they need to use. They are both key to achieving well-rounded and effective product and business outcomes.