Mastering the Underlying Competencies of Business Analysis

The Business Analysis Body of Knowledge (BABOK® Guide v3) is a comprehensive guide to the business analysis profession. It defines a set of competencies essential for a business analyst to bring value to their organization. Though not a formal requirement for Business Analyst certifications, anyone performing business analysis work, regardless of their role or industry, will benefit from mastering these competencies.

What is the BABOK® Guide?

The Business Analysis Body of Knowledge (BABOK® Guide v3) provides  generally accepted set of tasks, tools, and techniques   that help business analysts, or anyone playing that role, understand the knowledge and skills they need to perform their work. The International Institute of Business Analysis (IIBA®) created and maintains the  BABOK Guide v3, an indispensable reference for business analysis.

The IIBA also administers globally recognized certifications for Business Analysts, e.g., (CBAP) which are an effective means for practitioners to demonstrate their professional knowledge and expertise. Familiarity with the BABOK Guide v3’s content (e.g., knowledge areas, tasks and techniques) is needed to successfully pass any IIBA® core certification exam, as most IIBA® exams include questions to assess your knowledge.

What Is a Skill, A Competency, and an Underlying Competency?

While many people use skill and competency interchangeably, their meaning differs. As part of your professional development, it is important to know the difference so that you can ensure your preparedness for the role and responsibilities of a business analyst and grow your career.

What Is a Skill?

Skill refers to proficiency gained through specific training or on-the-job experience. For example, you may have the skill of time management, requirements management, or written communication. A skill can be people-centric or technology-centric and enhance what the professional brings to the job.

What Is a Competency?

Competency refers to observable behaviors and abilities used to achieve goals. Competencies take time to develop and result from a combination of formal education, professional knowledge, innate ability, work experience, and skills. Competencies are a collection of skills, attitudes, knowledge, and abilities required to be successful in a specific role. For example, business acumen refers to the knowledge needed to understand how business processes and  and structure are designed to meet customer needs and provide services.

What Is an Underlying Competency BABOK?

The BABOK® Guide v3 includes a list of underlying competences (behaviors, skills, characteristics, knowledge, and abilities) that support the business analysis role.  To enable easier digestion and understanding, the competencies are divided into six categories. By no means are these underlying competencies the only knowledge needed to be a successful business analyst. However, , they were identified as the most common among successful practitioners.

IIBA notes that underlying competencies:

• Are not unique to the profession of business analysis
• Provide business analysts a range of fundamental skills required for success
• support development as a business analyst.

How Does the Underlying Competency Model Help Organizations?

Organizations that include BABOK Guide competency requirements for their business analyst roles will:

• be positioned to provide more equitable and consistent performance feedback with clear expectations,
• be able to provide targeted training, mentoring, and learning opportunities aligned to business needs,
• build a talent pipeline that enhances talent retention in support of organizational goals and
• enable talent recruitment that reflects alignment to business analysis global standards.

Why Should a Business Analyst Know the Underlying Competencies Matrix?

While meeting all six competency groups are not an eligibility requirement to take an IIBA business analysis certification exam, competencies may be referenced in the exam questions. More importantly, the significance of the underlying competencies is inherent in the application of these competencies on the job. A business analyst with the BABOK® Guide v3 competence can:

• contribute to the talent pipeline of the organization through mentoring and coaching,
• model productive collaboration and communication for all roles within the organization, and
• enable continuous improvement with behaviors that model best practices.

Six Competency Categories in the BABOK Guide

The IIBA Business Analysis Competency Model is shared as a framework within the BABOK Guide v3 to help those looking to achieve a business analyst role or advance their career in business analysis.

Business Analyst Underlying Competencies

The six competency groups in BABOK Guide v3 are provided below;. Some organizations include competencies as a job requirement or as a framework to develop training and career paths for business analysts.

• Analytical Thinking and Problem-solving
  • Creative Thinking
  • Decision Making
  • Learning
  • Problem-Solving
  • Systems Thinking
  • Conceptual Thinking
  • Visual Thinking

• Behavioral Characteristics
  • Ethics
  • Personal Organization
  • Trustworthiness
  • Organization and Time Management
  • Adaptability

• Business Knowledge
  • Business Acumen
  • Industry Knowledge
  • Organizational Knowledge
  • Solution Knowledge
  • Methodology Knowledge

• Communication Skills
  • Verbal Communication
  • Non-Verbal Communication
  • Written Communication
  • Listening

• Interaction Skills
  • Facilitation
  • Leadership and Influencing
  • Teamwork
  • Negotiation and Conflict Resolution

• Tools and technology
  • Office Productivity Tools and Technology
  • Business Analysis Tools and Technology
  • Communication Tools and Technology

It is an unlikely exam requirement to be able to list or define theses competencies or identify them from a skills matrix.  However, knowing how they relate to the work of business analysis is important to know for the exam.

Business Analyst Competency | Analytical Thinking and Problem Solving

This competency group focuses on the ability to comprehend and analyze project requirements to enable problem-solving. Information and data may include stakeholder needs, subject matter expert guidance, industry regulations, and customer feedback. A business analyst must synthesize, prioritize, and organize inputs to guide productive problem-solving.

What does it look like?

The successful business analyst must be able to:

• think critically and solve problems.
• gather information, identify problems, and develop solutions.
• think creatively and come up with new ideas.

Underlying Competencies

Take note of systems thinking, which refers to the ability to see an organization as a system. System thinking applies to business analysis from the need to see the potential impact of project changes on the parent organizational system. 

• Creative Thinking
• Decision Making
• Learning
• Problem-Solving
• Systems Thinking
• Conceptual Thinking
• Visual Thinking

Business Analyst Competency | Behavioral Characteristics

The behavioral group is a prime example of the value of the competencies for any role. With a position of high responsibility comes the need for integrity, respect for others, and self-management.

What does it look like?

The successful business analyst must be able to:

• able to work effectively with others.
• able to communicate effectively.
• able to build trust.
• work independently.
• manage their time effectively.

Underlying Competencies

Ethics includes protecting company data and maintaining confidentiality; an effective business analyst demonstrates ethics by protecting project data, keeping business information and knowledge confidential, and never tolerating gossip.

• Ethics
• Personal Accountability
• Trustworthiness
• Organization and Time Management
• Adaptability

Business Analyst Competency | Business Knowledge

Business knowledge includes marketing, information technology, human resources, vendor management, and finance. Advanced analysts know how those areas are applied within their industry (e.g., technology, manufacturing, healthcare, etc.). Business knowledge, or acumen, is best gained through a combination of training, research, and experience.

What does it look like?

The successful business analyst must demonstrate a deep understanding of:

• the business and industry in which they work.
• the business’s goals, objectives, systems, and processes.
• the business’s customers, suppliers, vendors, and competitors.

Underlying Competencies

Even long-standing industries experience changes from market forces, evolving customer needs, supplier shifts, and regulation changes. A business analyst must make efforts to stay abreast of industry, market, and organizational shifts to better ensure positive project outcomes.

• Business Acumen
• Industry Knowledge
• Organization Knowledge
• Solution Knowledge
• Methodology Knowledge

Business Analyst Competency | Communication Skills

Working in an office, virtually, or hybrid has no impact on the importance of communication. It does mean, however, that you must have communication skills to be an effective influencer and communicator.

What does it look like?

The successful business analyst must be able to:

• communicate effectively with a variety of stakeholders.
• communicate complex information concisely.
• listen to and understand the needs of stakeholders.

 

Underlying Competencies

Communication is bi-directional, meaning that information shared by the business analyst with others and information should be received by the business analyst from others.

• Verbal Communication
• Non-Verbal Communication
• Written Communication
• Listening

Business Analyst Underlying Competency | Interaction Skills

Every project includes interaction with others: stakeholders, leaders, team members, subject matter experts, vendors, customers, and more. A business analyst must be able to flex interaction skills to meet the immediate need in service to the project goals.

What does it look like?

The successful business analyst must be able to:

• interact effectively with stakeholders.
• build relationships with stakeholders.
• gain the trust of stakeholders.
• work with stakeholders to achieve common goals.

Underlying Competencies

A business analyst must be prepared to address conflict that arises with stakeholders with different and competing requirements and solution and process ideas, etc.

• Facilitation
• Leadership and Influencing
• Teamwork
• Negotiation and Conflict Resolution
• Teaching

Business Analyst Competency | Tools and Technology

Tools and technologies will vary by industry and business but almost always include a combination of work processing, budget tracking, project management, and collaboration applications. It is essential to have a working knowledge of industry standards and be able to learn new tools.

What does it look like?

The successful business analyst must be able to:

• use a variety of tools and technologies to support work
• use software applications to gather and analyze data
• use a variety of tools to create and deliver presentations
• use collaborative technologies to manage projects

Underlying Competencies

• Office Productivity Tools and Technology
• Business Analysis Tools and Technology
• Communication Tools and Technology

How Can You Foster the Six Competencies to Enhance Your Business Analyst Career?

Continuous improvement is not limited to work. A business analyst should continually grow skills and enhance competencies to remain relevant and impactful. Use these tips to support your development efforts:

• Get involved in professional development activities.
  • Attend a variety of professional conferences.
  • Grow your professional peer network.
  • Gain a mentor and mentor others.
  • Take courses and training.
  • Read industry publications, blogs, and papers.
• Seek out opportunities to practice your skills.
  • Volunteering to lead projects.
  • Work on challenging assignments.
  • Engage with professional organizations.
  • Give presentations in which there is peer discussion to share knowledge.
• Get feedback from others.
  • Seek peer, manager, and mentor feedback to identify strengths and gaps to inform your development focus.

Conclusion

The IIBA’s BABOK Guide provides business analysts with six competency groups, each with underlying competencies that are critical to the successful practice of business analysis. Every business analyst should know the six competency groups and their underlying competencies to guide their continuous professional development. To deepen one’s strength in an underlying competency, the professional must make a sustained combination of efforts that includes but is not limited to formal training, mentoring, engagement with professional organizations, and on-the-job experience. Business analysts who consistently bring all competencies to every challenge are an asset to their team, clients, and business; they are also best positioned for long-term success in business analysis.