BABOK Guide Notes: Chapter 9 - Underlying Competencies
Analytical Thinking and Problem Solving
Overview: Underlying Competencies describe behaviours, knowledge, and personal qualities that support business analysis; not unique to BA but foundational across roles. Six categories of underlying competencies: Analytical Thinking and Problem Solving; Behavioural Characteristics; Business Knowledge; Communication Skills; Interaction Skills; Tools and Technology. Each competency includes purpose, definition, and effectiveness measures.
Key idea: Analytical thinking helps analysts assimilate diverse information, identify relevant inputs, choose effective methods across contexts, facilitate understanding, present information appropriately, and plan the BA approach (e.g., diagrams and information graphics can be more effective than long paragraphs).
Core competencies within Analytical Thinking and Problem Solving: Creative Thinking; Decision Making; Learning; Problem Solving; Systems Thinking; Conceptual Thinking; Visual Thinking.
9.1 Creative Thinking
9.1.1 .1 Purpose: Thinking creatively and helping others apply creative thinking to generate new ideas, approaches, and alternatives for problems and opportunities.
9.1.1 .2 Definition: Generating new ideas and novel associations between existing ideas; promoting new or different connections; combining, changing, and reapplying concepts; encouraging alternatives by asking questions and challenging assumptions.
9.1.1 .3 Effectiveness Measures:
generating and productively considering new ideas
exploring concepts and ideas that are new
exploring changes to existing concepts and ideas
generating creativity for self and others
applying new ideas to resolve existing problems
9.1 Decision Making
9.1.2 .1 Purpose: Understanding decision criteria and helping others make better decisions.
9.1.2 .2 Definition: When choosing an option from alternatives, gather relevant information, analyze, compare and trade-off options, and identify the most desirable option; document decisions and rationale for future reference or explanations.
9.1.2 .3 Effectiveness Measures:
appropriate stakeholders are represented in the decision-making process
stakeholders understand the decision-making process and rationale
pros and cons of options are clearly communicated
the decision reduces or eliminates uncertainty (any remaining uncertainty is accepted)
the decision addresses the need or opportunity in the best interests of all stakeholders
stakeholders understand conditions, environment, and measures in which the decision will be made
a decision is made
9.1 Learning
9.1.3 .1 Purpose: Ability to quickly absorb new information and adapt existing knowledge to operate effectively in rapidly changing environments.
9.1.3 .2 Definition: Learning is the process of gaining knowledge or skills through stages: acquisition, comprehension, application, synthesis, evaluation. Analysts must describe their level of domain understanding and apply it to determine which analysis activities are needed; synthesize information to identify opportunities and evaluate solutions.
Learning techniques should be selected based on required outcomes; consider visual, auditory, and kinesthetic methods; using multiple techniques enhances understanding and retention.
9.1.3 .3 Effectiveness Measures:
understanding that learning is a process for all stakeholders
learning concepts and demonstrating understanding
applying concepts to new areas or relationships
rapidly absorbing new facts, ideas, concepts, and opinions
effectively presenting new facts, ideas, concepts, and opinions to others
9.1 Problem Solving
9.1.4 .1 Purpose: Define and solve problems to address root causes and ensure solutions address those root causes.
9.1.4 .2 Definition: Define the problem so its nature and underlying issues are understood by all stakeholders; articulate stakeholder perspectives and conflicts; identify and validate assumptions; specify objective(s) to be met; consider and develop alternatives; measure alternatives against objectives to determine best fit and trade-offs.
9.1.4 .3 Effectiveness Measures:
confidence of participants in the problem solving process
selected solutions meet objectives and solve root cause
new solution options can be evaluated effectively using the problem solving framework
avoid decisions based on unvalidated assumptions, preconceived notions, or traps that lead to sub-optimal solutions
9.1 Systems Thinking
9.1.5 .1 Purpose: Understand how people, processes, and technology interact to view the enterprise holistically.
9.1.5 .2 Definition: Systems thinking/Systems theory posits that the whole exhibits properties that emerge from interactions of components; these properties aren’t predictable from the parts alone. Example: a customer return affects inventory, finance, and training – a system includes people, interactions, external pressures, and other factors.
9.1.5 .3 Effectiveness Measures:
communicate how a change to a component affects the system as a whole
communicate how a change to a system affects its environment
communicate how systems adapt to internal and/or external pressures and changes
9.1 Conceptual Thinking
9.1.6 .1 Purpose: Process large, detailed, potentially disparate information to understand how it fits into a larger picture and identify what details matter; connect seemingly abstract information.
9.1.6 .2 Definition: Conceptual thinking links contexts, solutions, needs, changes, stakeholders, and value abstractly; connects information and patterns not obviously related; uses past experiences, knowledge, creativity, intuition, and abstract thinking to generate options; links disparate information to problems or opportunities and communicates options to stakeholders to invite ideas.
9.1.6 .3 Effectiveness Measures:
connect disparate information and better understand relationships
confirm stakeholder understanding of concepts being communicated
formulate abstract concepts using information and uncertainty
draw on past experiences to understand situations
9.1 Visual Thinking
9.1.7 .1 Purpose: Communicate complex concepts and models via understandable visuals to engage stakeholders.
9.1.7 .2 Definition: Create graphical representations to convey concepts or systems; abstractions are turned into visual devices (graphics, models, diagrams, constructs) to aid understanding and input; visuals help learners process complexity and connect contexts.
Visual thinking supports rapid engagement and comprehension across stakeholder contexts.
9.1.7 .3 Effectiveness Measures:
complex information is communicated in a visual model understandable by stakeholders
visuals enable comparisons, pattern finding, and idea mapping
productivity increases due to faster learning, memory, and follow-through
stakeholders are more deeply engaged than with text alone
critical information may be missed in text-only presentations but is captured visually
Behavioural Characteristics
Overview: Behavioural characteristics are not unique to BA but influence personal effectiveness and outcomes; core focus is earning trust and respect through ethical conduct, timely delivery, quality results, and adaptability. Core competencies: Ethics; Personal Accountability; Trustworthiness; Organization and Time Management; Adaptability.
9.2 Ethics
9.2.1 .1 Purpose: Behaving ethically and considering ethical impacts helps earn stakeholder respect and reduce risk exposure.
9.2.1 .2 Definition: Ethics involve fairness, consideration, and moral behaviour; assess the impact of proposed solutions on all stakeholders; ensure fair treatment and transparency; awareness of ethical dilemmas enables resolutions.
9.2.1 .3 Effectiveness Measures:
prompt identification and resolution of ethical dilemmas
stakeholder feedback confirms transparency and fairness
decisions consider the interests of all stakeholders
reasoning for decisions is clearly articulated
full and prompt disclosure of potential conflicts of interest
honesty regarding abilities and performance; acceptance of responsibility for failures or errors
9.2 Personal Accountability
9.2.2 .1 Purpose: Ensures BA tasks are completed on time and to expectations, establishing credibility.
9.2.2 .2 Description: Includes effectively planning work to meet targets; following through to satisfy stakeholder needs; tracing requirements to a need; identifying and escalating risks and issues; providing decision-makers with necessary information.
9.2.2 .3 Effectiveness Measures:
work effort is planned and articulable
work completed as planned or re-planned with justification and lead time
status of planned and unplanned work is known
stakeholders perceive work as organized
risks and issues identified and acted on
traceable requirements delivered on time; stakeholder needs met
9.2 Trustworthiness
9.2.3 .1 Purpose: Earning trust helps elicit sensitive information and ensures stakeholders have confidence in evaluation of recommendations.
9.2.3 .2 Description: Trustworthiness is the perception of being worthy of trust; contributors include delivering on time and within budget, consistent confidence, honesty and transparency, and predictable availability.
9.2.3 .3 Effectiveness Measures:
stakeholders involve the BA in discussions and decisions
stakeholders bring issues and concerns to BA
stakeholders are willing to discuss difficult topics
stakeholders do not blame BA when problems occur
stakeholders respect BA’s ideas and referrals
stakeholders respond positively to BA referrals
9.2 Organization and Time Management
9.2.4 .1 Purpose: Prioritize tasks, work efficiently, and manage information and time effectively.
9.2.4 .2 Description: Organize information for reuse; differentiate important vs less important data; use time-management techniques such as goals, plans, checklists, prioritization, time limits on non-critical tasks, focus time, and managing interruptions.
9.2.4 .3 Effectiveness Measures:
deliverables produced in a timely manner
stakeholders perceive focus on correct tasks at the right time
schedule and deadlines are managed and communicated
meetings and communications are time well spent
thorough preparation for meetings, interviews, and workshops
BA information captured, organized, and documented
adherence to project schedule and deadlines
information presented clearly and concisely; status up-to-date
9.2 Adaptability
9.2.5 .1 Purpose: Thrive in rapidly changing environments; adjust behavior and methods when interacting with different stakeholders and situations.
9.2.5 .2 Definition: Ability to change techniques, style, methods, and approach; demonstrate curiosity to learn others’ needs and courage to try new behaviors; tailor interactions (e.g., interview styles, workshops) to stakeholder preferences; adapt to changes in goals or constraints; modify plans to maintain value delivery.
9.2.5 .3 Effectiveness Measures:
courage to act differently when needed
adapt to changing conditions and environments
value other viewpoints and approaches
maintain a positive attitude in ambiguity and change
willingness to learn new methods or procedures
adjust behavior for diverse individuals and groups
acquire and apply new information and skills to address challenges
accept changes to tasks, roles, and priorities as realities change
alter interpersonal style to suit diverse stakeholders
evaluate what worked and what could be improved next time
Business Knowledge
Rationale: Business knowledge helps analysts understand the organizational, industry, and solution context; includes acumen, industry, organization, solution, and methodology knowledge.
9.3 Business Acumen
9.3.1 .1 Purpose: Understand fundamental business principles and practices to ensure solutions are grounded in business reality.
9.3.1 .2 Description: Leverages common practices across functions (legal/regulatory, finance, logistics, sales, marketing, HR, technology); considers industry, location, size, culture, and maturity; learning from other organizations’ experiences helps apply relevant lessons.
9.3.1 .3 Effectiveness Measures:
recognize potential limitations and opportunities
recognize when changes require shifting direction
understand risks and ability to manage them
recognize opportunities to decrease costs and increase profits
understand options to address emerging changes
9.3 Industry Knowledge
9.3.2 .1 Purpose: Understand current industry practices and similar processes across industries.
9.3.2 .2 Description: Knowledge of trends, market forces, drivers, key processes, services, products, definitions, customer segments, suppliers, practices, regulations; understanding company positioning within the industry and dependencies related to market and resources. Guiding questions include: who are industry leaders, regulators, publicity activities, product comparisons, customer satisfaction benchmarks, suppliers, and the regulatory environment.
9.3.2 .3 Effectiveness Measures:
aware of activities within the enterprise and broader industry
knowledge of major competitors and partners
identify key industry trends
familiarity with largest customer segments
knowledge of common products and product types
knowledge of information sources (trade organizations, journals)
understanding of industry terms, standards, processes, methodologies
understanding of regulatory environment
9.3 Organization Knowledge
9.3.3 .1 Purpose: Understand management structure and business architecture of the enterprise.
9.3.3 .2 Definition: Understand how the enterprise generates profits, organizational structure, relationships between units, key stakeholders, formal and informal communication channels, and internal politics and decision-making influences.
9.3.3 .3 Effectiveness Measures:
act according to formal and informal communications and authority channels
understanding of terminology/jargon used in the organization
understanding of products or services offered
ability to identify subject matter experts (SMEs)
ability to navigate organizational relationships and politics
9.3 Solution Knowledge
9.3.4 .1 Purpose: Leverage understanding of existing solutions to implement change efficiently.
9.3.4 .2 Definition: When improving an existing solution, apply knowledge from prior work; familiarity with commercially available solutions and suppliers; leverage prior experiences to accelerate discovery via elicitation or analysis.
9.3.4 .3 Effectiveness Measures:
reduced time or cost to implement changes
shortened time on requirements analysis and/or solution design
understanding when a larger change is justified by business benefit
recognizing how unused capabilities can be deployed to add value
9.3 Methodology Knowledge
9.3.5 .1 Purpose: Understand organizational methodologies to provide context, dependencies, opportunities, and constraints for BA activities.
9.3.5 .2 Description: Methodologies define timing, approach, roles, risk level, and governance; organizations adopt or create methodologies to fit culture, maturity, adaptability, risk, uncertainty, and governance; knowledge of multiple methodologies helps quick adaptation.
9.3.5 .3 Effectiveness Measures:
ability to adapt to changes in methodologies
willingness to use or learn a new methodology
successful integration of BA tasks and techniques with the current methodology
familiarity with terminology, tools, and techniques prescribed by a methodology
ability to play multiple roles within activities prescribed by a methodology
Communication Skills
Communication is the act of a sender conveying information to a receiver so that meaning is understood; active listening deepens understanding and trust; communication methods include verbal, non-verbal, physical, and written forms. A shared glossary and clear goals reduce misunderstandings. Planning considers receiver’s knowledge, structure, presentation format (visuals, bullets), and expectations.
9.4 Verbal Communication
9.4.1 .1 Purpose: Use spoken words to convey ideas, concepts, facts, and opinions to stakeholders.
9.4.1 .2 Description: Spoken words convey information; can be paired with non-verbal cues; monitor tone and adapt to receiver; restate concepts to ensure mutual understanding; pair with active listening to ensure understanding.
9.4.1 .3 Effectiveness Measures:
restating concepts to ensure shared understanding
facilitating productive conversations leading to conclusions
delivering effective presentations by designing content and objectives
presenting issues calmly and rationally while outlining solution options
9.4 Non-Verbal Communication
9.4.2 .1 Purpose: Non-verbal cues (body language, posture, facial expressions, gestures, eye contact) influence message reception.
9.4.2 .2 Definition: Non-verbal cues often convey more meaning than words; moods and attitudes affect expressions; can project confidence and trustworthiness; awareness helps address unspoken feelings; cannot alone reveal full meaning.
9.4.2 .3 Effectiveness Measures:
awareness of others’ body language without assuming full understanding
awareness of own non-verbal cues
improved trust and communication as a result of non-verbal cues
effectively addressing discrepancies when non-verbal cues contradict verbal messages
9.4 Written Communication
9.4.3 .1 Purpose: Convey ideas, concepts, facts, and opinions in writing to stakeholders.
9.4.3 .2 Definition: Written communication uses text, symbols, models, and sketches; audience awareness improves effectiveness; remote delivery requires careful word choice and structure; strong vocabulary and grammar aid comprehension.
9.4.3 .3 Effectiveness Measures:
adjust writing style to audience needs
proper grammar and style
word choices that convey intended meaning
reader can paraphrase and describe content
9.4 Listening
9.4.4 .1 Purpose: Effective listening enables accurate understanding of verbally communicated information.
9.4.4 .2 Definition: Listening is not just hearing; active listening involves understanding context and meaning, summarizing, and restating in different terms to ensure shared understanding.
9.4.4 .3 Effectiveness Measures:
give speaker undivided attention
acknowledge speaker with verbal or non-verbal cues
provide feedback to ensure understanding
demonstrate active listening by deferring judgment and responding appropriately
Interaction Skills
Interaction skills cover the BA’s ability to relate, cooperate, and communicate with a range of stakeholders (executives, sponsors, team members, developers, vendors, SMEs, etc.). Core competencies include Facilitation; Leadership and Influencing; Teamwork; Negotiation and Conflict Resolution; Teaching.
9.5.1 Facilitation
9.5.1 .1 Purpose: Facilitate stakeholder interactions to help decide priorities, solve problems, exchange ideas, or reach agreements; may also support negotiation and conflict resolution.
9.5.1 .2 Definition: Moderating a discussion so all participants can articulate views and recognize differing viewpoints.
9.5.1 .3 Effectiveness Measures:
make it clear the facilitator is neutral and not the owner of the topic
encourage participation from all attendees
remain neutral and intervene to provide suggestions while not taking sides
establish ground rules and open discussion terms
ensure participants understand each other’s positions
use meeting management skills to stay focused and organized
prevent sidetracks to irrelevant topics
understand parties’ interests, motivations, and objectives
9.5 Leadership and Influencing
9.5.2 .1 Purpose: Use leadership and influencing skills to guide stakeholders during investigation and solution evaluation; build consensus and promote collaboration.
9.5.2 .2 Definition: Leadership involves motivating people to work toward shared goals; understanding stakeholder motives and capabilities to channel them effectively; BA activities create opportunities for leadership even without formal reporting lines.
9.5.2 .3 Effectiveness Measures:
reduced resistance to changes
clear, inspiring vision of the desired future state
ability to turn vision into action
influence on stakeholders to understand mutual interests
effective use of collaboration techniques to influence others
alignment of stakeholder interests with broader objectives over personal motives
reframing issues to accommodate alternate perspectives and shared goals
9.5.3 Teamwork
9.5.3 .1 Purpose: Enable productive collaboration with team members, stakeholders, and partners to develop and implement solutions.
9.5.3 .2 Definition: BA often works as part of a team; understands team dynamics and stages of team development; fosters trust to improve performance; effective conflict resolution strengthens the team; builds shared ownership of goals.
9.5.3 .3 Effectiveness Measures:
foster a collaborative environment
resolve conflicts effectively
develop trust among team members
support high standards of achievement
promote shared ownership of team goals
9.5.4 Negotiation and Conflict Resolution
9.5.4 .1 Purpose: Mediate negotiations to reach common understanding and maintain working relationships; help resolve conflicts.
9.5.4 .2 Definition: Mediating discussions to recognize differing views, separate problem from person, identify underlying interests, and identify solutions that satisfy those interests while aligning with overall solution and business needs.
9.5.4 .3 Effectiveness Measures:
planned approach considering tone, attitude, and needs of others
recognize that needs may be satisfiable for both sides without loss
objective approach that separates problem from person
recognize that multiple meetings may be required to achieve goals
9.5.5 Teaching
9.5.5 .1 Purpose: Teaching helps communicate BA information effectively and ensures understanding and retention by stakeholders.
9.5.5 .2 Definition: Teaching is the process of leading others to gain knowledge; BA leads stakeholders to clarity in ambiguity by teaching contexts and value; selects appropriate teaching approaches for visuals, verbal, written, and kinesthetic methods; BA often elicits and learns new information and then teaches it.
9.5.5 .3 Effectiveness Measures:
use different methods to teach information
uncover new information through stakeholder engagement
validate that audiences understand key messages
verify stakeholders can demonstrate new knowledge, facts, concepts, and ideas
Tools and Technology
BA tools and technology support modeling, documentation, requirements management, collaboration, and communication; include office productivity tools, BA-specific tools, and communication tools; focus on achieving traceability, baselining, change control, and efficient collaboration.
9.6.1 Office Productivity Tools and Technology
9.6.1 .1 Purpose: Document and track information and artifacts using office productivity tools.
9.6.1 .2 Definition: Tools include word processing, presentation, spreadsheets, email/communication tools, collaboration and knowledge management, hardware; understanding of interoperability (e.g., cloud collaboration); used to organize, dissect, manipulate, understand, and communicate information clearly.
9.6.1 .3 Effectiveness Measures:
increased efficiencies by exploring tool features
awareness of available tools and their operation
ability to choose tools that meet stakeholder needs
ability to communicate major tool features clearly
9.6.2 Business Analysis Tools and Technology
9.6.2 .1 Purpose: Use specialized BA tools to model, document, analyze, and manage outputs and deliverables.
9.6.2 .2 Definition: BA-specific tools support modeling, diagramming, documenting, requirements analysis/mapping, relationship identification, artifact storage, and stakeholder communication; tools may focus on single BA activity or integrate multiple functions (e.g., modeling, requirements management, prototyping, CASE, survey engines); capabilities include executable models via engine integration.
9.6.2 .3 Effectiveness Measures:
ability to apply understanding of one tool to others
identify major tools available and assess their strengths/weaknesses
understand major features and how to use them
select tools that support organizational processes
use tools to complete requirements-related activities more rapidly
track changes to requirements and assess impact
9.6.3 Communication Tools and Technology
9.6.3 .1 Purpose: Use tools to plan, perform, and manage collaborative BA tasks and teams.
9.6.3 .2 Definition: Communication tools enable virtual and co-located collaboration; understanding options and using appropriate tools for conversation and collaboration; balance cost, risk, and value; examples include voice, instant messaging, email, blogs; collaboration tools include video conferencing, online whiteboarding, wikis, calendars, brainstorming tools, online voting, document sharing, etc.
9.6.3 .3 Effectiveness Measures:
select appropriate and effective tools for audience and purpose
know when to use or not use a given tool
identify tools to meet communication needs
understand and use features of the chosen tools
Summary
Underlying Competencies provide a comprehensive framework for the skills, knowledge, and personal attributes that enable effective business analysis across six domains. Mastery of these areas supports better problem solving, decision making, stakeholder engagement, and value delivery in real-world contexts.