Maturity Model in Business Analysis

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  • 0:00 Maturity Models
  • 0:51 Design of Maturity Models
  • 1:52 Steps
  • 4:51 Analysis Using a…
  • 5:30 Criticisms of Maturity Models
  • 6:11 Lesson Summary
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Lesson Transcript
Instructor: Tiffany Spencer

Tiffany has taught ESL online and has a master's degree in business administration.

This lesson will discuss the maturity model in business analysis. It will also address how, when, and why the maturity model is used and how to use a model to analyze business maturity.

Maturity Models

Maturity models are a popular contemporary method of analysis focused on continuous improvement in business. Maturity models can be used to analyze many different business components, including elements such as process management, competitive advantage, customer service, technical capability, collaboration skills, and even business analysis as a management skill. Maturity models may also measure many elements within these components. Although maturity models were originally intended to be used as integrated systems of business, they can also be applied to a specific level of business hierarchy. Accordingly, a maturity model may be applied to a company as a whole, to a division, to a department, or perhaps even to a team.

Design of Maturity Models

Maturity models are generally designed to reflect an industry, organization, division, department, or team's typical step-by-step maturation to a desired level. The basic steps of a maturity model include initial (sometimes called the 'ad hoc' or 'awareness' step), defined, repeatable, managed, and optimizing.

When developing a maturity model, one must look at the context in which the model will be used and recognize a business's strategy, culture, governance, methods, and infrastructure. Further, the characteristics of the steps in a particular model must be anticipated, desired, and logical. Otherwise, maturation under the model will not be achieved. In addition, the maturity model also implies that as a business progresses through the model, it will first achieve success in the area of the model's focus, and this success will, in turn, contribute to overall business success.

Steps

In the initial step of a maturity model, a business must seek out awareness of the level of success presently being achieved in the business unit, process, or skill to be analyzed, as well as the elements that affect these outcomes. In this stage, disorganization and confusion are common, as there are no defined rules. The elements and outcomes at this stage are often affected more by individual people or events than by management decisions. For example, a large company may use a business maturity model to determine how well its marketing department can identify and reach a product's target market.

In the repeatable step of a maturity model, a business attempts to get desired results using its documented processes and metrics. The goal in this step is not consistency, but rather that the documentation reliably yields the desired results. For the marketing department, this would mean that it identifies a product target market within the company's usual methods and then tries to reach that market. The work done at this step must consistently follow the company's marketing processes and policies, including budget.

In the defined step of a maturity model, a business must identify and document its desired standard processes as well as the expected metrics associated with the related elements. A metric is a measure of a business process or skill that allows results to be compared and evaluated objectively. Metrics are often closely tied to goals. During this step, the marketing department would write technical policy documents showing how it desires this work to be performed each time it is performed, as well as develop tests and measurement processes to ensure that the department is performing these tasks according to the technical documentation.

In the managed step of a maturity model, a business usually strives to achieve the metrics and desired results pursuant to its documentation. In contrast to the previous step, a main objective in the managed step is consistency in results. In our example, this is the point at which the marketing department's actual performance goals become the focus.

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