100 Techniques

Better tools lead to better outcomes.  There are hundreds of techniques available under the heading of Business Analyst best practice.   In this issue we look at a few of these tools and techniques that can be applied to business problems as part of our improvement journey. 

Michael Porter's Five Forces

If you ever decide to do a business degree, this is probably one of the first model you'll be taught. This model is about positioning your business or unit in its environment and looking at five competitive forces acting on it.   

The primary force is the rivalry among existing competitors.  Why do your customers come to you instead of the others who also provide this service?

Next is the threat of new entrants. These are other service providers who could provide the same services as you, to the same market.  

The third force is the bargaining power of suppliers.  Your staff, contractors and suppliers can ask for more money. 

Number four is the bargaining power of those buying your service.  Everyone wants the maximum service for the lowest price, and they can always switch to another supplier.

Fifth is the threat of substitute products.  Customers don’t really want products; they are actually looking for ways to solve problems and meet needs. A common substitute is to switch from subscribing to a software tool, to subscribing to a managed service. 

By analysing the five forces, you can work out how to best complete in your chosen marketplace.  

BOSCARD

For ad-hoc work arriving at your door, asking your customer fill in a BOSCARD template is a nice way to get them to think about and frame their problem.   Background gives you some context of why they want to do this initiative.

Objectives is where they say what they're trying to achieve, preferably in business terms. 

Scope helps you limit the size of the problem.

Constraints are quite often around cost.

Next would be any Assumptions they make, often these are about time and resources.

They can list any Risks they are concerned about. 

Finally the customer can state the most tangible part of their requirement, which is the Deliverables that they want from you.  

Cynefin

This framework is underused because people aren’t aware of it, people don’t know how to use it, and people aren’t sure how to pronounce the Welsh word Cynefin.  For me this is a neat little framework that can be used very quickly when a customer comes to you with an outline problem and wants to know how long that will take to solve. 

Initially we don’t know how we will approach the problem, and we find ourselves in a state of Disorder until we can categorise it into one of four types. 

Obvious problems are those we have seen many times before, and where standard procedures will be in place.  Services delivered through Service Requests are a good example. 

Next are Complicated problems, that your experts can solve after asking a few questions and doing some analysis.  These are addressed by projects we have done before e.g. a standard integration.  Complex problems are ones with no known solution.  In this case an investigation project would be required, and different solutions proposed with no guaranteed outcome. Often more expertise must be bought in. 

The last type is Chaotic, a volatile situation needing an urgent response, such as a major incident.  In this situation it’s ‘all hands to the pump’ and try anything to get the situation is under control.  Categorising problem statements into one of these 4 buckets allow you provide a fast response and to mobilise the right resource.  

Business Model Canvas

This can be used at a company level to set strategy, but I’ve also seen it used well when teams are restructured. Holding workshops with teams to work through the canvas helps set a sense of direction and reason for being. The canvass is printed out on a big piece of paper and pinned up to the wall. The team then workshop the sections. This gives an idea of what the business unit is about and how they add value 

By describing Customer Segments you are deciding who you are offering services to. If you are an internal service provider, do you offer services to everyone in your company or specific groups? If you offer services to the market, what are the characteristics of the customers you are targeting? 

The Value Proposition is about understanding how you create value for your customers, and hence why they're going to use your services. If you aren’t clear on how you are adding value for them, then they're not going to use your services.  

Your Channels are how you communicate with customers, and how you bring work to your door. If you offer a service desk, customers might be phoning, emailing, logging tickets online, etc.  For external customers how do they contact you? Is it through your sales team, website, or do they phone a customer number?  

How do you manage your Customer Relationships? Do you transact with them through a website to keep costs down? Or do you have more user facing services, especially if what you offer is more bespoke and high-end? 

If you're selling your services then understanding the different products and services you offer helps you maximise your Revenue Streams. Even if you're an internal team you have to work out where the money is coming from. Is it from a budget is that dictated by how much service you provide, or do you have a fixed amount you have to work with?

Understanding your Cost Structure helps you understand and justify the cost of your organisation or department. If you do need to achieve savings then your cost structure will show you where all your money is going. 

By understanding your Key Resources you will know where you need to invest, how you protect your key resources, and also where you need to exploit your resources to get the maximum benefit.

By listing out your Key Activities everyone looking at the canvas is clear on what it is you do, and how you spend your time on how you add value.

If you are an internal team, you will have Key Partnerships. For instance Networks, Windows and Unix probably work closely together to provide a bigger overall service. If you're selling services, you might have key suppliers that you work with, or you might offer services in tandem with other companies.

Next Time......

In our next blog we will look at how we have used some of these techniques in practice with our customers.