The Business Analysis Lifecycle framework was developed by Tom Grossman. Like all works of great insight – it now seems obvious. However, when we first came across it, it was a real moment of revelation. It makes clear and explicit what had been unclear and implicit previously.
This framework has helped us to explain what it is that we do (“spreadsheet engineering”) and what we rely on our clients to provide us with (“conceptual models”).
In our training business, it has helped us as we explain to our students the different skills that they will need if they are to add value to their modelling assignments. We are deeply grateful to Tom.
The Business Analysis Lifecycle model divides the world in two – the real world, and the model world.
Analysts and financial modellers in particular, live in the model world. It is a well-ordered world where A leads to B, and where businesses can be neatly represented by calculation blocks and inputs.
Most people do not live in the model world. Communicating with people in the real world can be a challenge for those who live in the model world.
It is important for analysts to do the work of turning model insights into business insights. Managerial insights are aimed at people who are familiar with the business, and the industry in which the business operates, but who are not familiar with the model.
A key skill that allows an analyst to progress to more senior appointments is the ability to communicate insights about the business based on analysis of the model.
Our latest ebook “Business Analysis Lifecycle – From business concept to the financial model” gives practical advice on how you can effectively communicate and deliver these management insights.