Business Analysis Techniques
Techniques for Investigation and Analysis
Candidates must know a range of techniques used to investigate business situations, analyse stakeholders, and model processes. Core techniques include SWOT analysis, PESTLE, CATWOE, rich pictures, mind maps, process modelling (e.g., swimlane diagrams), stakeholder analysis (e.g., power/interest grid), and root cause analysis (e.g., fishbone diagrams). You should understand the purpose of each and when to apply it.
SWOT (Strengths, Weaknesses, Opportunities, Threats) is often used to assess an organisation's position. A trap is placing internal factors (strengths/weaknesses) as external or vice versa. PESTLE examines external macro-environmental factors: Political, Economic, Social, Technological, Legal, Environmental. CATWOE is used in soft systems methodology to define a root definition: Customers, Actors, Transformation process, Worldview, Owner, Environment. Questions may ask which element is missing from a given CATWOE analysis.
Rich pictures are informal drawings capturing a messy situation, including people, conflicts, and emotions. They are not formal models like process diagrams. Mind maps are used for brainstorming and organising thoughts. Process models (e.g., swimlane diagrams) show activities, roles, and flows; a common trap is confusing swimlanes (which show who does what) with flowcharts (which show sequence).
Stakeholder analysis using a power/interest grid categorises stakeholders into four groups: high power/high interest (manage closely), high power/low interest (keep satisfied), low power/high interest (keep informed), low power/low interest (monitor). A trap is misclassifying stakeholders or forgetting that power and interest can change over time.
Root cause analysis techniques like the fishbone diagram (Ishikawa) help identify underlying causes rather than symptoms. The 5 Whys is another simple technique.
Worked example / rule of thumb: When choosing a technique, consider the purpose: to understand a messy situation, use a rich picture; to analyse external factors, use PESTLE; to define a system, use CATWOE. A useful rule: Match the technique to the question you are asking.