The Ultimate Guide to Business Analysis Framework

A business analysis framework is a structured approach that allows leaders to identify, evaluate, and address business needs and challenges. It provides insights that help leaders make more informed decisions about problems and initiatives. Leaders use this information to develop and execute strategies and head off failures by anticipating them in advance. This approach streamlines decision-making for business leaders by providing an established system to follow. It ensures consistent, high-quality decisions that are aligned with an organization’s business objectives and corporate values.¹

This article will explore business analysis frameworks and how you can use them to overcome challenges and improve outcomes.

Key Components of the Framework

 
Though there are a variety of business frameworks your organization can use, all of them should include the following elements:

Goals and Objectives Alignment

 
Strong frameworks begin with clearly established objectives. This provides a reference point for all decisions you make going forward. It ensures that everyone is aligned on the purpose of the project and prevents you from wasting time and resources pursuing activities that won’t advance your objectives.²

For example, suppose that you and other leaders at your global food and beverage company want to move packaging production in-house for increased sustainability. A framework can help you evaluate the plan and overcome challenges with implementation.

Stakeholder Identification and Engagement

 
Early in the business analysis process, identify who the project's key stakeholders are. Stakeholders are the people, inside and outside of your company, who have a vested interest in the project's outcome. They're likely to have strategic insights, based on their experience and expertise, that can help the project succeed.³ Bring them into the process as early as possible. The more you solicit and implement their suggestions, the more invested they'll be in the plan.³

Data Gathering and Analysis Techniques

Gathering information and analyzing it is the crux of all business analysis frameworks and methodologies. The exact process will depend on which business framework you choose, but you’ll collect data about the challenge you’re addressing and analyze it in light of your objectives. Challenges may include external factors in the business environment, industry competitors, or changing regulations.⁴

Steps in the Business Analysis Process

A step-by-step approach simplifies the business analysis process and helps you avoid overlooking important elements. The process begins with defining the problem or opportunity and your objectives.

The next step is to collect background information about your project so that you can make informed decisions. You’ll need to conduct thorough market analysis and competitor research. All of this can help you define the influential circumstances that can affect your project.⁵

After you’ve done your background research, you can narrow down your options and propose solutions. Bring in stakeholders based on their specialized knowledge and insights.⁵ In the example of your food and beverage company looking to increase sustainability with in-house production, the team would conduct background research into the following:

• Eco-friendly packaging alternatives, such as biodegradable plastics and recycled materials
• Technologies and processes for manufacturing at scale
• Regulatory requirements
• Cost analyses
• Options for sourcing raw materials
• Manufacturing locations

As they identified problems during their analysis, such as a high cost of packaging materials or limited sourcing options, they'd come up with possible solutions to address these challenges and evaluate them for feasibility.

Tools and Techniques

The project or challenge you’re facing will guide your choice of framework for business analysis:

SWOT Analysis

The SWOT analysis is a popular tool that allows you to analyze your strengths, weaknesses, opportunities, and threats (SWOT). It gives you an overview of internal and external factors that could influence the outcome of your project.⁶

PESTLE Analysis

A PESTLE analysis is a good tool for analyzing the macroenvironment in which your business exists. It includes political, economic, social, technological, legal, and environmental (PESTLE) factors that are scored on a scale of 0–10, with 10 being most favorable for the business. This framework can help you identify external threats and opportunities.⁶

Root Cause Analysis

Root cause analysis helps you get to the bottom of a problem after it has already occurred. Conduct this analysis by identifying the problem and having your team gather information about it: when it started, how long it continued, observable/observed symptoms, and so on. This should help your group identify possible root causes, rank them, and determine which ones are the most likely culprits.⁷

Key Performance Indicators

A key performance indicator (KPI) is a measurable target of progress towards a goal. Tracking relevant KPIs allows you to evaluate the success of your business analysis framework implementation. Some of the KPIs you can use to evaluate your analysis include stakeholder satisfaction, requirements accuracy, on-time delivery, return on investment, cost savings, and data quality improvement.⁸

Roles and Responsibilities

In order to understand and implement the plans in your framework, everyone involved must collaborate and communicate effectively with one another. This can be difficult when you’re working with cross-functional teams. User-friendly, accessible tools such as Trello, a popular project management software, can facilitate the process and ensure that everyone is aligned on organizational objectives and strategy.⁹

The key roles and responsibilities for the team will include the following:

• Business analyst: gathers requirements, analyzes processes, and ensures alignment with business objectives
• Project manager: coordinates project planning and oversees resources, timelines, and communication 
• Stakeholder: provides subject matter expertise, strategic direction, and feedback

Best Practices for Implementation

You’ll get the most out of your business analysis by fostering a culture of continuous improvement. Tracking KPIs and adjusting your analytical techniques based on your performance and feedback will improve your results. Make all of your communications clear and understandable so everyone is on the same page and can follow the objectives of the plan. This will also help you achieve stakeholder buy-in, which is crucial for your success at all levels.¹⁰

Tools and technology will allow you to be more effective, both at designing a business analysis framework and measuring its results. Business process modeling tools such as Visio help you visualize business processes. Requirements management tools such as Jira help you gather, track, and manage requirements. Data analysis tools such as Excel and Power BI allow you to collect, analyze, and interpret data.¹¹

Future Trends in Business Analysis

Business analysts already rely on big data and artificial intelligence (AI). This trend is likely to continue in the future. It will be driven by more advanced automation and agentic AI—autonomous AI systems that can act without direct human supervision. These systems will be able to operate more independently and generate business solutions faster. Analysts will need to develop the skills to keep up with new technologies and tools by embracing continuous learning and staying agile as the market continues to change.¹²

Develop the Skills to Drive Effective Business Change

Today’s business leaders have more information available to them than ever before. Innovative companies need skilled business analysts to extract powerful insights and apply them to uncover opportunities. An Online MS in Business Analytics from Santa Clara University can equip you with the knowledge and abilities you need to master the latest analytical tools and develop your business insight. In a few as 15 months, you can complete your degree and begin transforming how businesses make decisions. Learn in the convenience of your own home with a rigorous curriculum from top experts in the field.

Contact an admissions outreach advisor today to learn more.