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In the pre-award phase, contract managers work with project managers to determine the project scope and develop its statement, while the business analysts work with the project managers to determine scope, strategic plans, goals and objectives, and then develops a business case.
At this stage, the contract manager conducts an enterprise and organizational assessment, risk assessment and a “make or buy” analysis, and he is careful to make certain that this is in alignment with what a business analysis has uncovered during the enterprise-analysis phase of the said project. The business analyst performs a gap analysis, risk assessment and produces a decision package analysis or business-case report.
To illustrate these roles, take for example a customer call center or help desk. In this scenario, the project manager’s role is to consider all legalities that may impact both the user and the customer. The business analyst would determine the processes and procedures for submitting trouble tickets on the phone call content, while the final player, the project manager, works to oversee the implementation of the solution. It’s a case study of how the roles interact with one another during the planning phase of the lifecycle.
Generally speaking, the pre-award statement begins the process of defining how goods and services will be procured, including the “what will be procured” or scope statement and the outline of high-level requirements that need to be considered for development. It is interesting to note that for the contract management pre-award phase, the management of change request is clearly summarized as part of the risk-management plan. This is done in a similar exercise in using a “project-sizing grid,” typically used to ascertain the level of risk considering project type and other criteria including complexity and strategic importance. At the end of the day, each phase is dependant on evaluation criteria as an output for a “go” or “no go” decision to be made on whether or not to pursue the delivery of goods and services.
In the award phase, which covers requirements planning and management, the contract manager develops a contract-management plan, devises evaluation criteria and a procurement-document package, followed by a proposal. In contrast to this, the business analyst develops a list of requirements and a division of work, a list of stakeholders required for a given project using a certain matrix and a model to map who is responsible for what. The business analyst would work with a project manager to also identify roles and responsibilities across a project, and develop the tools used to gather and communicate these requirements before finally devising a resource work plan.
While these phases do not completely align themselves, there certainly is some overlap when considering what resources are required to produce the deliverables. The contract management plans and evaluation criteria certainly identifies the performance requirements that both the buyer and seller must meet.
In each stage of the sourcing relationship, the capabilities of business analysts can add significant value and improve efficiency. In the research stage, business analysts make a case for change. In the strategy phase, they scrutinize the enterprise and analyze the risks and benefits of outsourcing. When it comes to evaluation and selection, business analysts classify the requirements and identify partners that can meet those business needs. In terms of procurement, business analysts select vendors, negotiate terms, develop contracts, implement relationships and structure a flexible partnership with defined service levels and payment models. As far as
management goes, business analysts handle governance and review by monitoring the relationship and reacting to change effectively.
Ensure Sourcing Success Through Business Analysis
As organizations work to define the role of business analysts and begin incorporating business-analysis skills into sourcing projects, the risk of failure in global sourcing will decline. From single project contracts overseas to full-scale IT operations deployed abroad, skilled management is critical for sourcing success.
Strategically marrying the distinct, yet complementary skills of business analysts and contract managers will yield improved results in sourcing arrangements. To achieve this desired effect, the two job functions must have clearly delineated tasks and responsibilities.
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