When a sponsor evaluates performance data from a product launch, they are operating at the Strategy or Initiative Horizon. The goal is to make investment decisions that maximize value based on new information about threats and opportunities. The three fundamental portfolio-level decisions are:

1. Start a new initiative: To capitalize on a newly identified opportunity.

2. Change resources for existing initiatives: To pivot, persevere, or re-scope an ongoing effort based on performance feedback. This could involve increasing, decreasing, or reallocating resources.

3. Cancel an existing initiative: To cut losses when an initiative is underperforming, is no longer strategically aligned, or is facing an insurmountable threat.

These actions represent the core choices in agile portfolio management.

A. These are planning and analysis activities that might support decision-making, but they are not the strategic decisions or outcomes themselves.

C. These are data-gathering and feedback collection techniques. They serve as inputs to the evaluation process, not the resulting portfolio-level decisions.

D. This option mixes a specific tactic (experiment), an analysis step (cost/benefit), and the choice of inaction (delay), rather than presenting a complete set of primary strategic actions.

1. International Institute of Business Analysis. (2017). Agile Extension to the BABOK® Guide (Version 2).

Section 4.5

"Determine the Change Strategy": This section describes how an organization makes "decisions about which initiatives to fund

the order in which to fund them

and the overall strategic direction for the change." This directly supports the actions of starting (funding)

changing (re-ordering/re-scoping)

and cancelling (defunding) initiatives.

Section 7.18

"Portfolio Kanban": This technique is used to manage the flow of initiatives. It explicitly includes decision points where stakeholders decide whether to approve (start)

hold

or cancel initiatives based on strategic goals

capacity

and performance feedback. This visualizes the decision-making process described in option B.

2. International Institute of Business Analysis. (2017). Agile Extension to the BABOK® Guide (Version 2).

Section 5.1.1

"Purpose" (The Initiative Horizon): This section explains that analysis at this level helps stakeholders "decide whether to continue funding the initiative

whether the initiative needs to change direction

or whether the initiative should be cancelled." This reinforces the core options of changing or cancelling an existing initiative based on feedback.

Models are simplified representations of reality, specifically designed to help understand and describe complex contexts, systems, and the relationships between their components. For strategic decision-makers facing vast and intricate information, models serve as a crucial tool. They abstract away non-essential details and highlight the most critical elements and their interactions. This process reduces the cognitive load and transforms an overwhelming amount of data into a manageable and understandable format, thereby facilitating more effective analysis and informed strategic choices.

A. Reduction: This describes the desired outcome (reducing information) rather than the specific technique or tool used to achieve it. Models are a formal method for performing this reduction.

B. MoSCoW approach: This is a prioritization technique used to categorize requirements or features (Must have, Should have, Could have, Won't have), not a method for simplifying complex information sets for strategic analysis.

D. Filtering: This involves selecting a subset of data based on specific criteria. While it reduces the quantity of information, it does not inherently simplify the complexity of the relationships within the remaining data.

1. IIBA. (2017). Agile Extension to the BABOK® Guide

Version 2. Section 7.2.3

Models. "Models are used to help understand and describe contexts

complexities

and relationships between things... A model is a simplified representation of a complex reality

created to serve a particular purpose."

2. IIBA. (2017). Agile Extension to the BABOK® Guide

Version 2. Section 4.1.3

See the Whole. This section emphasizes that to make good decisions

it is necessary to understand the system as a whole

and "Models are used to help understand and describe contexts

complexities

and relationships."

3. Sterman

J. D. (2000). Business Dynamics: Systems Thinking and Modeling for a Complex World. Irwin/McGraw-Hill. Chapter 3

"The Modeling Process

" explains that models are essential tools for understanding the complexity of systems to improve decision-making.

4. Simon

H. A. (1979). "Information processing models of cognition." Annual Review of Psychology

30(1)

363-396. This work discusses how humans use simplified mental models to deal with the "bounded rationality" imposed by complex environments

a foundational concept in strategic decision-making. DOI: https://doi.org/10.1146/annurev.ps.30.020179.002051

The Business Analysis Core Concept Model™ (BACCM™) is a foundational framework for the business analysis profession. It is composed of six core concepts: Change, Need, Solution, Stakeholder, Value, and Context. These six terms have a common meaning and are used to describe the practice of business analysis and its relationship with various perspectives and terminologies. The model illustrates the interrelationships between these concepts, providing a common language and understanding for all business analysis practitioners, regardless of their methodology, industry, or project phase.

A. Strategic Plan: A strategic plan outlines an organization's long-term goals and the actions needed to achieve them, not the core concepts of the business analysis discipline.

C. Business Analysis Scope Model: This defines the boundaries of a specific business analysis effort or initiative, rather than providing a foundational conceptual framework for the entire profession.

D. Stakeholder Map: This is a specific technique used to analyze stakeholders and their characteristics, not a model that defines the six core concepts of business analysis.

1. International Institute of Business Analysis. (2017). A Guide to the Business Analysis Body of Knowledge® (BABOK® Guide) (Version 3). IIBA. Chapter 2

Section 2.1

"The Business Analysis Core Concept Model™

" pp. 7-8.

2. International Institute of Business Analysis. (2017). Agile Extension to the BABOK® Guide (Version 2). IIBA. Section 2.2

"The Business Analysis Core Concept Model™ in an Agile Context

" p. 5.

3. Shoemaker

M. (2021). The Core of Business Analysis: A Deeper Dive into the Six Core Concepts of the BACCM. Business Analysis Agility. Retrieved from a university-affiliated professional development resource discussing the BACCM's application. (Note: This represents the type of academic discussion on the topic).

The Purpose Alignment Model is a strategic technique used to evaluate whether an initiative, feature, or increment is worth pursuing. It helps teams analyze proposed work by plotting it on a matrix with two axes: Market Differentiator (how it helps compete) and Mission Critical (how essential it is for the business to function). This framework directly addresses the team's need to discuss and decide "what solution increments are worth doing" by aligning potential work with business and customer value, ensuring effort is focused on the most impactful activities.

A. Backlog refinement is a tactical process for preparing already-prioritized backlog items for development, not for the initial strategic assessment of whether an increment is worth doing.

B. Portfolio kanban is a method for visualizing and managing the flow of large-scale initiatives, not a technique for evaluating their intrinsic business value or strategic alignment.

D. Story elaboration is the process of adding detail and acceptance criteria to a user story that has already been deemed valuable, not for making the initial value judgment.

International Institute of Business Analysis. (2017). Agile Extension to the BABOK® Guide (Version 2).

Correct Answer (C): Section 7.16

Purpose Alignment Model

p. 113. The guide states

"The Purpose Alignment Model is used to assess ideas and features in the context of customer and business value... It helps agile teams to focus on options that have the highest potential value."

Incorrect Option (A): Section 7.2

Backlog Refinement

p. 78. This section describes the technique as an "ongoing process of getting backlog items ready for the delivery team to work on."

Incorrect Option (D): Section 7.20

Story Elaboration

p. 122. This is defined as "the analysis and decomposition of a story to understand the underlying need and the work required to fulfill that need."

At the Initiative Horizon, the primary goal of an agile business analyst is to facilitate decision-making for a potential change. This involves providing stakeholders with sufficient, timely, and relevant information to make an informed choice about which solution option to pursue. The principle is to avoid the waste associated with over-analysis ("analysis paralysis") by focusing on "just enough" detail to assess value, risk, and feasibility, thereby enabling the organization to move forward effectively.

A. "Exact" costs and timeframes are generally not feasible or necessary at this early stage; high-level estimates are more appropriate and realistic.

C. While stakeholder analysis is performed, providing a restrictive list of who can give input is not the primary goal of recommending a solution.

D. Detailed information about the delivery team is a tactical concern for the Delivery Horizon, not the main focus when evaluating strategic options.

1. International Institute of Business Analysis. (2017). Agile Extension to the BABOK® Guide (Version 2). Section 4.2.3

"Determine the Best Way to Satisfy the Need

" Paragraph 1. This section explicitly states

"The goal is to provide decision makers with just enough information to make an informed and accurate decision."

2. International Institute of Business Analysis. (2017). Agile Extension to the BABOK® Guide (Version 2). Section 3.3.2

"See the Whole

" Paragraph 4. This section emphasizes understanding the context and dependencies to make better decisions

which supports the idea of providing informed

but not exhaustive

information.

3. International Institute of Business Analysis. (2017). Agile Extension to the BABOK® Guide (Version 2). Section 3.3.6

"Avoid Waste

" Paragraph 1. The concept of providing "just enough" information directly aligns with the agile principle of avoiding the waste of over-production and excessive documentation

which would be the case with options A and D.