2009 BA Benchmark Slideshow
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The document discusses the concept of requirements maturity in organizations, highlighting that most are at levels 1 or 2, lacking consistent practices in requirements management. It emphasizes that improving requirements maturity can significantly enhance project performance and reduce costs, including a notable increase in on-time and on-budget project completion rates. The text also underscores the importance of creating a plan for improvement across competency areas to achieve better stakeholder satisfaction and overall effectiveness.
2009 BA Benchmark Slideshow
- 1. Results HighlightsThe Business Analysis Benchmark – 2009Path To SuccessEmail Inquiries: Media@IAG.bizQuestions: 905-842-0123 X228© IAG Consulting 2009
- 2. What is Requirements Maturity?Requirements Management Maturityrepresents the overall capability of an organization to define and manage requirements.The Maturity Modelis a visual representation of an organizations' level of maturity across multiple capability areas.Levels of Maturity:Level 1 – Performed (Ad-hoc)Level 2 – Defined (Individual-centric)Level 3 – Implemented (Consistent)Level 4 – Institutionalized (Part of culture)Level 5 – Continuously optimizing (Adaptive)© IAG Consulting 2009
- 3. Most Organizations are Level 1 or 2Almost 75% of organizations have not implemented consistent requirements discovery & management practices, let alone institutionalized these practices across the enterprise.
- 4. What Impact Does Requirements Maturity Have Within IT?Going from HeretoHereAverage on time performance of technology projects increased by 161%.
- 5. Time overruns on projects reduced by 87%.
- 6. Average on budget performance for technology projects improved by just over 95%.
- 7. Budget overruns reduced by just under 75%.
- 8. Percentage of projects that deliver the functionality needed by the business rose by just over 75%.
- 9. Average functionality missed dropped by approximately 78%.Maturing Requirements is ValuableEvery Measure of Effectiveness Improves as Maturity ImprovesABCIn % of all projectsCDDBAN=437Source: IAG Business Analysis Benchmark, 2009Requirements Discovery & Management Maturity of Organization© IAG Consulting 2009
- 10. Poor Requirements Effect Both Development and Maintenance BudgetsAverage Cost of a $250,000 Project by Maturity Level$356K$343KDifference between these two numbers is Requirements Maturity waste…About $1 in $3 spent.$309K$274K$261K$257KMaturity LevelN=437Source: Business Analysis Benchmark, 2009
- 11. Poor Requirement Maturity Can Consume Over 50% of Development BudgetsRequirements maturity waste rises on all projects as project sizes get more diverseSource: Business Analysis Benchmark, 2009From Business Analysis Benchmark - 2008 Study: A 60% premium is paid on ‘strategic projects’ by low maturity organizations
- 12. What Impact Does Requirements Maturity Have on Business Stakeholder Groups?Going from HeretoHereProject Success Rate:49%89%to81.6%Projects that Hit BusinessObjectives of Development:54%83%to53.7%Time Premium Paid to get to Equivalent Functionality on the AVERAGE project: 35%Time Premium Paid to get to Equivalent Functionality on Strategic (larger) projects**: 56%** From IAG Business Analysis Benchmark - 2008 Study
- 13. Myth-BustingSome commonly held beliefs are simply not true…
- 14. CIOs Can’t Just Hire Good People and Expect the Problem of Poor Requirements to go AwayLower skilled people in higher maturity companies OUTPERFORMHigher skilled people in lower maturity companiesN=437Source: Business Analysis Benchmark, 2009
- 15. There is no difference in methodology performance for any given level of maturity(i.e., Requirements maturity is more important than development method selected)Comparison of Project Success Rates: Maturity Level of Organization in Requirements Discovery & Management VERSUS Method of Development UtilizedPer Cent of Projects that are SuccessfulRequirements Discovery & Management MaturityN=437Source: Business Analysis Benchmark, 2009
- 16. Making ImprovementImprovement starts with getting a baseline of requirements definition and management maturity in each of the six competency areasLow maturity organizations spend a mere 25% of per analyst what their higher maturity counterparts spend on making improvement.Organizations must create a plan for change that impacts all six competency areas
- 17. Maturing Requirements Gets Results 57% of those surveyed increased stakeholder satisfaction and improved on-time/on-budget performance by focusing on improving requirement maturity last year.… and the majority of companies are focused on this area
- 18. 2009 BA Benchmark ReportTo obtain a copy of the report, visit:www.iag.biz/benchmark
Editor's Notes
- #2: Welcome – introduce selfToday’s session is about:Getting consistency and productivity… Organizations spend so much time trying to force fit requirements like a square peg in a round hole.Let’s talk about getting out of your own way… and making yourself and your organization more successful
- #3: Explain the model bucketsMaturity will fall to the lowest overall common denominator
- #6: OK which is most important to you TIME, BUDGET, DELIVERING ALL FUNCTIONALITY, BEING SUCCESSDULYES – YOU CAN HAVE IT BETTER FASTER AND CHEAPER
- #7: Missed functionality cost is % of missed functionality * Cost of building functionality in the first place * % of times this occurs. Findings are related to ‘larger more strategic projects’ but generally apply to all projects in IT.
- #12: What this shows is that it is NOT the methodology that counts, it is the maturity of the organization in the adoption of that method. Waterfall, iterative or any other would be EQUALLY effective. The difference in the average performance is FAR more extreme than simply changing the agile variable.