The PMI Professional in Business Analysis (PMI-PBA) is an internationally acknowledged certification that validates the holder’s knowledge and skills in business analysis. To prepare for the exam, one key area you need to understand profoundly is reviewing the business case, and the project goals and objectives, in order to provide context for business analysis activities. This is essential in defining the value and relevance of a project to the business and aligning the business analysis processes with the overall strategic plans of a company.
Understanding the Business Case
The business case is a vital document in project management as it outlines the reasons why a particular project should be undertaken. It details the expected benefits, the estimated costs, the risks, the return on investment, and other relevant information that would help in the decision-making process.
Analyzing the business case provides insights into why the project is being pursued, what success looks like, and how it fits into the overall business strategy. It’s a critical first step in setting a project up for success as it establishes a shared understanding among stakeholders about what the project entails and why it matters.
To analyze the business case, you can use a SWOT analysis (Strengths, Weaknesses, Opportunities, Threats) to understand the internal and external factors that may impact the project. This will help identify the benefits, risks, and feasibility of the project from different perspectives.
Table 1: Example of SWOT analysis on a business case:
| Strengths | Weaknesses | Opportunities | Threats |
|---|---|---|---|
| Existing resources | Limited budget | Market expansion | Market competition |
| Strong management team | Poor technology infrastructure | New funding source | Regulatory changes |
Project Goals and Objectives
The goals and objectives of a project provide a roadmap for what the project seeks to achieve. They are measurable, achievable, realistic, and time-bound (SMART), guiding the project implementation, monitoring, and evaluation.
For instance, if the project is to create a new software application, a goal could be: “Improve customer service by reducing response time to customer inquiries to no more than 24 hours”. An objective supporting this goal could be: “Implement a new customer service software platform by the end of Q2”.
In the PMI-PBA exam, you need to understand how to clearly define, classify, and measure these goals and objectives. They become benchmarks for project success, help keep the project on track and guide the project team in decision making.
Analyzing the project goals and objectives involves identifying the key performance indicators (KPIs) that will measure the success or failure of the project. For instance, in the software application project mentioned above, KPIs could include the average response time to customer inquiries, the number of customer complaints, or the number of repeat customers.
When done effectively, a thorough review and analysis of the business case, and the project goals and objectives can not only provide solid grounds for the necessity and feasibility of a project, but also contextualize and drive effective business analysis activities. As a PMI-PBA aspirant, understanding this process becomes paramount in gaining a higher level of proficiency in conducting business analysis for your projects effectively.
Practice Test
True/False: Reviewing the business case, and the project goals and objectives is a trivial task and often can be skipped in order to save time.
- True
- False
Answer: False.
Explanation: Reviewing the business case, and the project goals and objectives is vital in order to set the context for business analysis activities and cannot be skipped.
Multiple Select: Which of the following are parts of a typical business case?
- a) Business needs
- b) Solution options
- c) Potential Risks
- d) Breakfast menu
Answer: a) Business needs, b) Solution options, c) Potential Risks.
Explanation: A typical business case includes identification of business needs, options available to meet those needs, potential risks involved, etc. The breakfast menu is not relevant to a business case.
Single Select: Which of the following is least likely to be included in project goals and objectives?
- a) Deliverables
- b) Performance criteria
- c) Preferred coffee brand
- d) Success measures
Answer: c) Preferred coffee brand.
Explanation: Project goals and objectives generally include specific results, desired outcomes, deliverables, performance criteria, and success measures. The preferred coffee brand is not likely to be part of project goals and objectives.
True/False: Context for business analysis activities can be defined without understanding the project objectives.
- True
- False
Answer: False.
Explanation: Understanding the project objectives is fundamental in defining the context for business analysis activities.
Multiple Select: Setting context for analysis activities involves which of the following steps?
- a) Understanding the business case
- b) Reviewing the project goals
- c) Ensuring all meeting participants have coffee
- d) Identifying risks and benefits
Answer: a) Understanding the business case, b) Reviewing the project goals, d) Identifying risks and benefits.
Explanation: Setting context for analysis involves understanding the business case, reviewing the project objectives, and identifying various risks and benefits associated with the project. Ensuring coffee for meeting participants is not a part of this process.
Single Select: Who is primarily responsible for reviewing the business case and project goals and objectives?
- a) The project manager
- b) The business analyst
- c) The chief executive officer
- d) The team leader
Answer: b) The business analyst.
Explanation: It’s primarily the business analyst’s role to review the business case and project goals and objectives in order to provide context for their business analysis activities.
True/False: The business case should not influence the business analysis activities.
- True
- False
Answer: False.
Explanation: The business case greatly influences the business analysis activities, by providing context and boundaries for analysis.
Multiple Select: What are the key project objectives which provide context for business analysis activities?
- a) Deliverables
- b) Timescales
- c) Finances
- d) Office decor
Answer: a) Deliverables, b) Timescales, c) Finances.
Explanation: Key project objectives that create context for business analysis activities include the expected deliverables, timescales, and finances. Office decor is irrelevant in this context.
Single Select: The business case primarily addresses which of the following?
- a) What the business needs to do to remain competitive
- b) How the business will profit from the project
- c) The strategic context for the project
- d) All of the above
Answer: d) All of the above.
Explanation: The business case often comprises all these aspects. It describes the strategic context of the project, what needs to be done to keep the business competitive and how the project will lead to profitability.
True/False: Understanding project goals and objectives is more important for the project manager than the business analyst.
- True
- False
Answer: False.
Explanation: Understanding project goals and objectives is equally important for both the project manager and the business analyst as it provides the direction for the project and the context for the business analysis.
Interview Questions
What is the primary importance of reviewing the business case, project goals, and objectives in a business analysis activity?
Reviewing the business case, project goals, and objectives provides a clear understanding of what the business needs to achieve. It gives context to the business analysis activities, assists in identifying potential risks and helps to determine the most important features of the proposed solution.
What should the business case include to provide context for business analysis activities?
The business case should include the business need, a description of the proposed solution, a list of potential alternatives, an analysis of potential costs and benefits of the proposed solution, the risks involved and the performance measures or success criteria.
How do project goals and objectives contribute to business analysis activities?
Project goals and objectives contribute by providing a clear outline of what needs to be accomplished by the end of the project. They help to set expectations, guide the development of requirements, and establish clear measurement criteria for the project’s success.
What’s the role of a business analyst in relation to the project’s business case?
The business analyst examines the business case to ensure it is logical, feasible, and profitable. They will evaluate the potential solutions, assess the costs and benefits, and work to ensure that all possible risks are accounted for and mitigated.
How can a business case impact the business analysis process?
A business case impacts the business analysis process as it provides the reason for initiating a project or task. It can determine the direction of the analysis, the strategic alignment of the project, and the feasibility of the proposed solution.
How should a business analyst use project objectives in their work?
Project objectives should be used to guide the development of project requirements and measure the success of the project once implemented. They ensure that the solution developed aligns with the strategic goals of the organization.
What should be the result of a business analysis based on reviewing a project’s business case and objectives?
The result should include a list of validated and prioritized requirements, a proposed solution that addresses the needs outlined in the business case, and a clear understanding of the expected benefits and potential risks of implementing the proposed solution.
How can the understanding of a project’s goals and objectives support risk management in business analysis?
Understanding a project’s goals and objectives helps identify potential risks that could trip up the achievement of those objectives, and enables analysts to formulate strategies to mitigate those risks.
How does a robust business case support effective business analysis?
A robust business case provides a strong foundation for effective business analysis. It details the rationale behind the project, including the financial and operational benefits that will guide the decision-making process.
What elements of a business case can directly affect the performance measurements of business analysis activities?
The projected costs and benefits, success criteria, risk analysis, and proposed timeline can directly affect the performance measurements of business analysis activities. It is key to consider these elements when defining the key performance indicators (KPIs) for any project.
How do project goals and objectives align with business analysis activities?
Project goals and objectives align with business analysis activities by providing a clear definition of what the project intends to achieve. They set the framework within which the project requirements are developed, analyzed, and validated.
How should a business analyst respond if the proposed solutions in a business case aren’t feasible based on the project goals and objectives?
The business analyst should collaborate with stakeholders to revisit the project goals, objectives and proposed solutions. If necessary, they should revise the business case to include realistic, achievable, and viable solution options.
How can reviewing the business case, project goals, and objectives benefit the stakeholders?
Reviewing these elements ensures stakeholders’ needs and expectations are appropriately addressed. It also ensures that the proposed solution will bring value to the business and achieve the desired impact on performance.
Why is it important for a business analyst to understand the project’s business case?
It is important for the analyst to understand the project’s business case in order to align their analysis activities with the strategic direction and priorities of the business, and to ensure the proposed solution adds value to the organization.
What should a business analyst do if there is a misalignment between the business case and the project goals and objectives?
The business analyst should initiate a discussion with the project sponsors and stakeholders to review, and if necessary, to revise the business case or the project’s goals and objectives in order to ensure alignment. Misalignments might indicate lack of clarity, communication, or understanding, which need to be addressed promptly.
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