How does a business analyst learn about the enterprise?

Every organization and industry has unique complexities. Business analysis professionals work to learn as much about their industry and their specific organization as possible. Some industries require specialized knowledge (e.g., engineering, investment banking) and some BAs specialize in a particular business area (e.g., accounting, human resources). BAs can learn about their businesses by:

• Reviewing marketing materials

• Reviewing financial reports

• Reviewing the corporate strategic plan

Read the Company’s Marketing Materials

There is no better way to get a foundational understanding of a company’s products than reading what marketing materials say about them. Marketing materials have been designed by expert communicators who have a specific goal in mind. The goal of a particular brochure may be to create brand awareness or to reinforce the corporate image. Another marketing piece may be aimed at selling a particular product. Marketing materials show how the company positions itself to potential customers and against competitors. Study your organization’s Web site and visit it frequently to review new content. The more the BA knows about the marketing message that has been developed for outside customers, the better he or she will be able to communicate with business stakeholders about products and customers. This knowledge is most critical for BAs assigned to represent business areas like sales, marketing, product development, and customer service. This is similar to the preparation work that you would do before interviewing for a job at a company.

This suggestion also applies to BAs who are working as external consultants. Before you walk in the door of your next client, visit the company’s Web site and read everything that you can about its products and services. There is nothing more annoying to business executives than an outsider who is hired to come in and help and doesn’t even know the product or service around which the company is built.

Read the Company’s Financial Reports

Publicly held corporations and non-profit organizations are required to provide financial statements to the public. These reports contain a wealth of knowledge, not only for accountants but for anyone working with or inside the organization. A BA should know how to review the basic financial reports and know their purpose. These basic financial reports include the profit/loss or income statement, the balance sheet, and cash flow analysis. If you don’t have any accounting or financial knowledge, sign up for a class at a local university or read an introductory book. There are numerous courses on “finance for the non-financial manager.”

Look at how well the company is performing in terms of profit, market share, shareholder value, and amount of debt. Knowing a company’s financial situation tells you an enormous amount about how the business stakeholders will feel and behave. When a company is doing well, you will typically find an upbeat and optimistic attitude in most business areas. Employees feel secure in their jobs, they are being rewarded for the work, and their ideas are welcomed by management. Most stakeholders for projects will be glad to spend time with you because new projects are perceived as building the future of the company and they want to be a part of that work.

When a company is struggling financially, frequently you will walk into a situation where people are wary of why you are there. Employees may be fearful about layoffs or may have suffered pay cuts or received only small raises for a number of years. New projects initiated by management are assumed to be cost-cutting measures, which means that you are there to eliminate jobs. The BA who walks into this situation is wise to enter quietly and begin building trust, one stakeholder at a time.

There is other information that you can learn by reviewing the financials and also reading between the lines. Look at the overall size of the company compared to the size of your project. If the company has annual revenues of $40 million and you are working on a project budgeted at $100,000, your project is a small part of the organization’s work. Alternately, if your project budget is $1 million, it will have a significant financial impact on the company as a whole. Knowing how your project compares to the organization’s size tells you about its importance (priority) and will give you the facts you need to convince stakeholders that their time spent on the project is important.

Is your project specifically mentioned in the financial statement published to shareholders? If so, they will expect to see progress reported in the next annual statement. If the project involves some improvement in customer service, they will begin to look for signs of improvement. Announced projects are highly visible and have high business impact (refer to Chapter 7 for more on business impact).