From the course: Business Analysis Foundations

Situation and solution statements

From the course: Business Analysis Foundations

Situation and solution statements

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- Since we don't have unlimited time and resources to address the various needs of the organization, we need to document our findings in a manner that helps with the prioritization of work to be done. As we do our needs assessment, we need to gather relevant data to make sure that we understand the magnitude of the problem or opportunity. This helps us make sure that we properly size the solution. Once we understand the need, with the supporting data, the business analyst drafts a situation statement to provide not just what the situation was that we encountered, but also the impact on the organization. The first part of a situation statement states the current problem to be solved or the opportunity that needs to be explored in a structured manner. The second part then identifies the impact of that situation on the organization. The format of this statement is: the problem or opportunity has the effect of X on the organization with the resulting impact of Y. So here's an example. The existing process for processing returns involves the need to submit paperwork duplicating the digital record. This results in significant delays and extra labor costs. The impact is that additional staff is hired to meet established quotas. It's critical to review this with the key stakeholders to make sure we've captured the situation correctly, so that we can develop a proposed solution that addresses the real problem or opportunity. One of the most commonly used tools to help correctly understand the situation is an Ishikawa diagram for documenting a root cause analysis of the problem. Another tool which is used in adaptive or agile projects is the five whys. We can also create models of the flow of processes to help discover where problems might exist, and then recommend solutions. We might recommend a solution by just making a modification to the current process without any additional resources needed. Once we've defined the situation, it's time to move on to a potential solution. The solution is something that is developed to deliver measurable business value. It could be a new product, components of a product, an enhancement of an existing product, or just a fix. The solution statement recommends the most viable option to meet the need. The solution statement or approach defines at a high level the areas to be included or the initial scope and possible steps to move from the current situation or state to a future state. If there are multiple options, weighted criteria may also be used to propose the best option that will be further expanded upon in the business case. Before developing a final solution statement, we may need to do a feasibility study to help gather more information. This may include reviewing operational capability and the ability to either change or sustain the change. This may include whether the solution is technically feasible, whether it might work in the current environment, as well as help estimating potential cost or time requirements. We never want to provide only one solution. Instead, we provide multiple options. This allows the stakeholders to choose the one they think has the best chance of success.

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