STRATEGIC BUSINESS ANALYSIS

MODULE 1: MANAGEMENT ADVISORY SERVICES  Seeking and identifying objectives

(MAS) PRACTICE  Defining the problem or opportunity for
improvement
LEARNING OUTCOMES  Evaluating and determining possible
solutions
 Define what MAS is  Presenting findings and recommendations
 Discuss the areas of MAS practice  Implementing the solution, if appropriate
 Explain how consulting adds value to
the firm Following the client’s decision to proceed, the
independent accounting firm may also be
Management Advisory Services involved in:

 Management Advisory Services by  Planning and scheduling actions to

independent accounting firms can be achieve the desired results
described as the function of providing  Advising and providing technical
professional advisory (consulting) services, assistance in implementing
the primary purpose of which is to improve
the client’s use of its capabilities and Knowledge and Experience
resources to achieve the objectives of the
organization.  Organization and Management Methods
 In essence, management consultants help
to effect constructive change in private or  Refers to strategies and techniques
public sector organizations through the used to structure and run a business
sound application of substantive and efficiently.
process skills.  Includes organizational design,
leadership approaches, and decision-
Two Types of Involvement with Clients making processes.

1. Consultation  Office and Management Functions

A consultation normally consists of providing  Covers administrative tasks such as

advice and information during a short time record-keeping, workflow management,
frame. This advice and/or information is and coordination of business operations.
provided orally during one or more discussions  Ensures smooth day-to-day functioning
with the client. Sometimes, the advice and/or of an organization.
information will be definitive when the
consultant is fully aware of the situation and  Systems and Procedures
possesses sufficient expertise to require more
intensive study or investigation. Often, however,  · Focuses on standard operating
such advice and/or information will be procedures (SOPs) that businesses follow
qualified by stated limitations due to lack of to maintain consistency and efficiency.
first-hand observation of the problem situation  Helps in improving productivity and
or lack of familiarity with underlying technical ensuring compliance with company
aspects. policies.

2. Engagements  Data Processing Methods

An engagement consists of the form of  Involves the collection, organization,

management advisory or consulting service in and analysis of data for decision-
which an analytical approach and process is making.
applied in a study or project. This approach  Includes techniques such as data entry,
typically involves: validation, storage, and retrieval in
business operations.
 Ascertaining the pertinent facts and
circumstances
STRATEGIC BUSINESS ANALYSIS
 Quantitative Methods  Improved Production Control

 The use of numerical analysis to solve Enhancing the management of production

business problems, such as forecasting schedules, inventory, and resource allocation
sales, budgeting, and performance to reduce waste and increase efficiency.
measurement.
 Includes statistical tools, probability Example: A bakery implementing an inventory
analysis, and financial modeling. system to ensure raw materials are stocked at
optimal levels.
 Financial Management
 Organization Plan with Statements of Duties
 Covers planning, organizing, and and Responsibilities
controlling financial resources.
 Includes budgeting, investment analysis, A structured outline that defines roles,
cost control, and financial risk responsibilities, and reporting relationships
assessment. within an organization.

Outcomes Example: A small business developing a clear

job description for employees to avoid task
 Management Information System (MIS) duplication.

A system that collects, processes, and presents  Electronic Data Processing System (EDP)
business data to support decision-making.
A system that automates data entry, storage,
Example: A company implementing an MIS to and retrieval, reducing manual errors and
track employee productivity and inventory improving speed.
levels in real time.
Example: A bank using an EDP system to
 Sales Reporting System quickly process customer transactions and
generate financial reports.
A tool that records and analyzes sales
performance, helping businesses understand AREAS OF MAS/MANAGEMENT CONSULTING
trends and customer behavior. PRACTICE

Example: A retail store using a system to Management consulting can relate to areas
monitor daily sales and identify best-selling such as:
products.
1. The Management Functions of Analysis,
 Cost Accounting System Planning, Organizing, and Controlling

A method for tracking and analyzing costs  Consultants assist businesses in

associated with production or service delivery. evaluating their current operations
(analysis), setting goals (planning),
Example: A manufacturing company using a structuring teams and processes
cost accounting system to determine the (organizing), and ensuring tasks are
exact cost per unit of a product. completed effectively (controlling).
 Example: A consultant helps a retail
 Work Measurement Program store analyze its supply chain, plan new
sourcing strategies, organize logistics,
A system to assess employee productivity and and implement inventory controls.
efficiency in completing tasks.
2. The Introduction of New Ideas, Concepts,
Example: A factory using time-tracking and Methods to Management
software to measure the average time
needed to assemble a product.
STRATEGIC BUSINESS ANALYSIS
 Businesses often need fresh perspectives Other Consulting Works:
to stay competitive. Consultants
introduce modern strategies, best  Marketing research
practices, and innovative solutions.  Marketing strategy development
 Example: A consultant introduces  Developing promotional campaigns
automation tools for order processing in  Planning sales force activity
an e-commerce business, reducing  New product development
manual work and improving efficiency.  Developing proposals for financial
support
3. The Improvement of Policies, Procedures,  Staff recruitment
Systems, Methods, and Organizational  Exporting and international market
Relationships
Aim of Consultancy is to Add Value by
 Consultants help businesses refine their Providing:
internal processes, ensuring smoother
workflows and better employee  Information
coordination.  Specialist expertise
 Example: A company revamps its  New perspectives
employee performance evaluation  Support for internal arguments
system to be more objective and  Support in gaining a critical resource
aligned with company goals.  Assistance in organizational change

4. The Application and Use of Managerial

Accounting, Control Systems, Data Processing,
and Mathematical Techniques and Methods

 Consultants assist in financial planning,

cost control, budgeting, and data-
driven decision-making using advanced
tools and techniques.
 Example: A manufacturing firm
implements a cost accounting system
to track production expenses and
reduce waste.

5. The Conduct of Special Studies, Preparation,

and Recommendation

 Consultants perform in-depth research

on specific business challenges, market
trends, or investment opportunities and
provide actionable recommendations.
 Example: A restaurant chain hires a
consultant to study customer
preferences and recommend menu
adjustments based on survey data.

Most Sought Consulting Works

 Business planning and development of

project feasibility studies
 Information systems consulting
 Management/Operations audit
 Business process
improvement/reengineering
STRATEGIC BUSINESS ANALYSIS
MODULE 2: The Consultant, Practice Standards,  Recognize the human expertise
and Stages in Consultancy Engagements necessary to deliver the project
 Manage personal time
LEARNING OUTCOMES
12. Analysis Skills
 Describe the professional attributes of
consultants  Identify what information is available in
 Discuss the standards in the MAS a particular situation
practice  Identify what information is needed in a
 Identify the stages in the management particular situation
consultancy engagements  Process that information to identify the
important relationships within it
Professional Attributes of Management  Draw meaning from that information
Consultants and use it to support decision-making
 Recognize the business’s profile of
1. Technical Skills strengths, weaknesses, and capabilities
 Recognize the opportunities and
These include both understanding and challenges the environment offers the
experience in a technical discipline – such as business
information technology, marketing,  Assess the business’s financial situation
engineering, and organizational behavior.  Evaluate the business’s markets and
how they are developing
2. Interpersonal Skills  Assess the business’s internal conditions
 Analyze the way in which decision-
These include personal attributes that make an making occurs within the business
individual amiable among people and
effective in accomplishing desirable objectives 3. Consulting Process Skills
through people. These involve the ability to understand and use
the following approach in solving business
1. Intelligence or capacity for logical thinking problems:
and reasoning a) Identify the cause of problems or
2. Integrity inefficiencies
3. Objectivity b) Identify alternative solutions
4. Understanding of people (human relations; c) Select the most desirable alternative
empathy) d) Implement the chosen solution
5. Judgment
6. Courage Most engagements undertaken by consultants
7. Ambition will involve the solution of problems. Hence,
8. Psychological maturity the consultant should have the ability to apply
9. Physiological equilibrium the analytical approach and process in this
10. Relationship-Building Skills problem-solving exercise. This process consists
of four areas:
 Build rapport and trust with the client
 Question effectively 1. Problem definition phase
 Communicate ideas succinctly and 2. Identification of alternative solutions
precisely 3. Selection of the most desirable
 Negotiate objectives and outcomes alternative
4. Presentation
11. Project Management Skills 5. Implementation

 Define objectives and outcomes

 Develop formal plans
 Sequence and prioritize tasks
 Manage the financial resources that are
to be invested in the consulting project
STRATEGIC BUSINESS ANALYSIS
MAS Practice Standards D. Solution development

The AICPA’s Management Advisory Services E. Preparation and presentation of

Division promulgated and recommended the the report and recommended
eight standards which will serve as guidelines solution
to all MAS practitioners. These are:
F. Implementation
1. Personal Characteristics
2. Competence G. Follow-up evaluation of the
3. Due Care implemented solution
4. Client Benefit
5. Understanding with Client 4. Evaluating the engagement and post-
6. Planning, Supervision, and Control engagement follow-up
7. Sufficient Relevant Data
8. Communication of Results  Evaluation of the Engagement

Stages of Management Consulting  The consultant reviews whether the

Engagement project objectives were met and if
the recommended solutions were
Generally, a management consulting effectively implemented.
engagement involves the following stages:  Performance is measured against
key performance indicators (KPIs)
1. Negotiating the engagement set during the planning stage.
 Client feedback is gathered to
 This is the initial phase where the understand the impact of the
consultant and the client discuss the consulting work.
scope of work, expectations, fees, and
deliverables. Example: A consultant who helped a
 It ensures that both parties have a company improve its cost accounting
clear understanding of the consulting system evaluates whether financial
project’s goals, timeline, and reports are now more accurate and
responsibilities. useful for decision-making.

2. Engagement planning  Post-Engagement Follow-Up

 In this phase, the consultant outlines  The consultant may offer ongoing
the specific steps, methodologies, and support to ensure the client can
resources needed to complete the sustain the improvements made.
project.  Follow-ups may involve additional
 A detailed work plan is created, training, troubleshooting issues, or
identifying the approach to data adjusting strategies based on real-
collection, analysis, and reporting. world implementation.
 The consultant also sets key  In some cases, the consultant
performance indicators (KPIs) to may return after a set period to
measure success. conduct a progress review.

3. Conducting a consulting assignment Example: After helping a business

launch a new marketing strategy, the
A. Problem identification and consultant checks in after three
solution months to review sales performance
and make any necessary
B. Identification of suitable and adjustments.
accurate sources of information

C. Data analysis and diagnosis

STRATEGIC BUSINESS ANALYSIS
MODULE 3: Strategic Business Analysis The Business Analyst Career Path

LEARNING OUTCOMES A business analyst is any person who performs

business analysis activities, no matter what
 Discuss what business analysis is about; their job title or organizational role may be.
 Identify the available career choices for
business analysts; Business analysis practitioners include:
 Explain the business analysis process Not only people with the job title of business
framework. analyst, but may also include business systems
analysts, systems analysts, requirements
engineers, process analysts, product managers,
product owners, enterprise analysts, business
Business Analysis architects, management consultants, or any
other person who performs the tasks described
“Business analysis is the practice of enabling in the BABOK® Guide, including those who
change in an enterprise by defining needs and also perform related disciplines such as project
recommending solutions that deliver value to management, software development, quality
stakeholders.” assurance, and interaction design.

BABOK GUIDE defines business analysis as: The Business Analyst Career Path
Business analysis as the set of tasks and Certified Public Accountants who are called in
techniques used to work as a liaison among to perform consultancy work or those who are
stakeholders in order to understand the employed within the entity may also take on
structure, policies, and operations of an the role of a business analyst.
organization, and to recommend solutions that
enable the organization to achieve its goals. As a standalone career, you may also progress
from one step to the next as described below
It involves understanding how organizations according to Laura Brandenburg, Founder
function to accomplish their purposes, and and CEO of Bridging the Gap:
defining the capabilities an organization
requires to provide products and services to  Explorer Business Analyst – Considering
external stakeholders. but not yet committed to a BA career.
The milestone that takes you past this
It includes the definition of organizational goals, stage is to decide that yes, you want to
how those goals connect to specific be a business analyst.
objectives, determining the courses of action  Intentional Business Analyst – Actively
that an organization has to undertake to pursuing a business analyst career. Here
achieve those goals and objectives, and you identify your transferable BA skills
defining how the various organizational units and start performing business analysis
and stakeholders within and outside of that techniques, right in the role you are in
organization interact. now.
 Official Business Analyst – Seeking to
Business analysis may be performed to apply the full range of BA responsibilities.
understand the current state of an At this stage, often you need to
organization or to serve as a basis for the later manage expectations as some
identification of business needs. In most cases, managers don’t know exactly what to
however, business analysis is performed to expect of a BA. You also want to seek
define and validate solutions that meet to expand your responsibilities with new
business needs, goals, or objectives. projects to apply the full breadth of
business analysis skills, which we’ll cover
next.
 Proven Business Analyst – Solid track
record in business analysis, seeking
excellence. Here you seek work in new
environments, to really stretch your
STRATEGIC BUSINESS ANALYSIS
business analysis skills and expand your 6. Support the Technical Implementation –
BA toolbox. Or ensure your technology team is
 Business Analyst “Super Hero” – designing and building a software
Excellent business analyst, can thrive in solution that meets the business need.
ANY situation, individually. But you are 7. Help the Business Implement the
often stretched to the max and feel the Solution – Or ensure the business
need to clone yourself. Your next step is stakeholders update their work to
to train and mentor other business achieve the intended outcome.
analysts and establish a clear and Otherwise, you risk the failure that one
repeatable process framework. of my clients experienced (before they
 Business Analyst “Champion” – hired me as their business analyst)
Champion for the role, often taking the where they implemented a document
forms of management, thought management system intending to
leadership, strategic work, or consulting. eliminate manual steps and save paper,
only to find out the business users were
printing and scanning documents
multiple times.
The Business Analysis Process Framework 8. Assess the Value Created by the
Solution – Evaluate the actual progress
Brandenburg advocates the 8-step process made and the Return on Investment.
that will allow you to get started quickly and
effectively as a business analyst.

The steps are discussed in a linear way, but the

actual work of a business analyst will be
iterative, and it will be common to bounce
back and forth between the steps as you gain
more clarity and uncover the issues.

8-Step Process

1. Get Oriented – Clarify your role, your

stakeholders, the project history, and
learn about existing systems and
processes.
2. Discover the Primary Business
Objectives – or what problem needs to
be solved.
3. Define the Solution Scope – Or what the
solution to the business problem looks
like.
4. Formulate Your Business Analysis Plan –
Or the work you will do to discover,
analyze, and validate the requirements
as part of the solution, and the
engagement you need from
stakeholders to be successful.
5. Define Detailed Requirements – The
actual discovery, analysis, and
validation of the requirements. Many
BAs try to skip right to this step, only to
face issues like lack of buy-in, scope
over-runs, and lack of stakeholder
engagement.