By Dr. Tonya Smith | 03/18/2025
With all the different definitions of business strategy, you would think that people would have a better understanding of it. For years, researchers have studied strategy, shared their results, and made recommendations for leaders and organizations. However, misunderstandings continue to exist.
According to U.S. Navy strategist and author J.C. Wylie, “Strategy is a plan of action designed in order to achieve some end; a purpose together with a system of measures for its accomplishment.” This simple definition captures the essence of strategy: a goal, a plan, and a way to measure progress.
Making Informed Business Decisions by Analyzing Data
Strategic planning begins well before goals are determined. The business analysis process starts with an evaluation of existing business processes.
There are a variety of tools that organizational leaders and consultants can use, such as a Strengths, Weaknesses, Opportunities, and Threats (SWOT) analysis or Political, Economic, Social, Technological, Legal and Environmental (PESTLE) analysis. However, the overall goal is to understand the current state of an organization and the environment, which is why business analysis is important to informed business decisions.
Semrush provides a good SWOT image that captures the essence of the business analysis that should occur. A SWOT analysis can evaluate technical solutions, business processes, business systems, and market trends.
If leadership teams do not use data to analyze their complex problems, how can they make informed decisions? Without an effective business analysis, any proposed solution to a problem is a guess at best.
A good business analyst can use data to provide insights into emerging trends, technology solutions, and options for competitive advantages. Strong statistical analysis can identify customer needs and cost-effective solutions to integrate into business objectives.
Understanding Business in Context
In a 2022 study by Malaysian researchers Siti Holifahtus Sakdiyah, Nurafni Eltivia, and Aang Afandi, researchers found that “when appropriately processed, information has a quality that is accurate, timely, and relevant.” Accurate data and analysis help leaders to ensure the right decisions are made.
In my experience, the real work begins long before the leadership team arrives for a strategic meeting. Surveys and assessments are completed, and people are interviewed. That information is then compiled and analyzed; the results provide comprehensive insights.
Using The 5 Whys Technique
A trained business analyst compiles information and uses the “5 whys” technique, repeatedly asking “Why?” at each level of defining a problem.
Business analysis involves getting to the root cause of a business problem. According to analyst Olivier Serratt, the first step is to ask why something is a problem.
A team then continues to ask “Why?” until the root of a business problem is identified. Business stakeholders can add value and insights during this process.
Business analysts collaborate and identify trends using data science. In order to remain competitive, organizational performance is measured by analyzing data. Information on existing processes will be used to provide meaningful insights for the leadership team.
The Benefits of Business Consultants
An outside consultant can be a valuable resource to help facilitate communication during a strategic planning meeting or the “5 whys” process. When the leadership team arrives at a meeting, they spend time reviewing the results of a statistical analysis.
The facilitator of the meeting confirms that everyone has a proper understanding of the business analysis results. There are significant advantages for this step in the process, and it is only then that an organization can move forward.
Moving Beyond Complex Problems
Once the current state of a business problem is clearly understood, work can begin to identify business objectives. Using the results of the business analysis, organizational leaders can make informed decisions about business requirements with consideration for operational costs, business needs, and project risks.
The leadership team can assess which business objectives have the best potential for success and achievability. A crucial skill for leaders is translating complex business problems and using that information for devising strategic solutions to problems.
Developing Solutions
For me, the fun begins when the leaders return to their respective teams. They share the story of “how we got here,” which includes the prep work and the conversations at a meeting.
Investing the time to catch up subordinates helps to reduce questions and recommendations that have already been debated and prioritized. Now, everyone on the team is on the same page and focused on continuous improvement, which will enhance efficiency.
Working with their operational teams, project managers, and senior business analysts, the leadership team leans into the expertise of the individuals who do the actual work. Using the business goals and objectives as a guide, these employees develop practical solutions to problems. Because they understand the work, their plans are more likely to fulfill business requirements.
Connecting Business Operations and Project Management
By connecting project management to strategy, decisions on organizational work can be made based on the organization’s alignment to that strategy. Business needs can be incorporated into project scope. Project management work and resources can be assigned as determined from the initial data analysis.
Actionable insights gained from business analysis contribute to business strategies. Modern business uses project management to create a variety of operational and strategic workstreams. From process improvement to improved operational efficiency, work can then be planned and managed by project teams.
Key Performance Indicators
As leaders develop project plans, data measures must be defined. Key performance indicators (KPIs) are typically used to measure an organization’s progress towards an objective or goal.
Most people are familiar with lagging KPIs. These measurements are a way to determine past performance or an unsatisfactory outcome such as a reduced customer retention rate or a reduced net profit.
By contrast, a leading KPI measures future performance and can be used to measure project success. A few examples of leading indicators are a growing number of sales meetings or the increased lead conversations.
Leading KPIs are measurements that an individual or team can control. They are trackable actions that can lead to developing solutions that work, which in turn leads to business success.
Measuring progress through business analysis plays a vital role in helping individuals and teams to stay focused on what matters and move the company closer to its business objectives or goals. Clear measuring and reporting of data help business analysts monitor business outcomes. The cyclical process of data analysis, however, requires constant measuring, analyzing, and adjusting, based on that analysis.
Organizations Must Be Willing to Pivot When Necessary
Based on KPIs and business analysis, organizational leaders and teams must be willing to pivot when it’s necessary. Although initial strategy objectives may have been identified and planned, the expected outcomes may not be achieved as work begins to happen.
If employee or leadership actions are not leading to the desired results, new plans must be created. Many organizations struggle in this type of situation. They are unwilling to pivot and change their business strategy.
However, strategic decisions should be made based on hard data. Trying to guess what is needed or wanted by customers can be detrimental to a business. To maintain a competitive edge, progress should be measured through a thorough business analysis.
A Real-World Example of Business Analysis
A business analysis plays a crucial role in helping leaders to make data-drive decisions. For example, one of my business clients wanted a change made to his website and asked my team to immediately make the changes. We had been tracking his website traffic and engagement numbers for months.
During the next few weeks, his engagement numbers steadily decreased from 65% to 42%. After four solid weeks of declining results, I brought the numbers to him and pointed out that the change was not leading to the desired results for his business.
The client was grateful and asked that we change his website back to what it had been. Immediately, the numbers increased back to what they were prior to the website change.
We also did additional work with this client. For instance, we coached him on the need to make changes based on data, not guesses.
In addition, we created a survey and shared it with his target market. Based on the results and business analytics, further improvements were made to his website. His engagement numbers continued to climb, thanks to our business analysis.
The Role Business Analysts Play in Achieving Business Goals
In the past, successful business analysts were not necessarily recognized as an essential part of business solutions. Business planning was often separate from data collected from business analytics. Now, organizations are more likely to be successful by connecting the data from business analysis, business objectives, and project scopes.
The benefits of business analysis, alignment, and business success cannot be emphasized enough. With a clear understanding of the current state of an organization using data analytics, business needs can be clearly identified. With the aid of business analysts, business planning can align with customer needs and operational goals are more likely to be achieved.
Business Administration and Business Analytics Degrees at American Military University
For interested adult students who want to learn business analytics, business administration, and other related topics, American Military University (AMU) offers several degrees:
- An online Associate of Arts in Business Administration
- An online Bachelor of Business Administration
- An online Bachelor of Science in Business Analytics
- An online Master of Business Administration
Taught by experienced faculty members, the courses in these programs feature topics such as leading in the technology age, the basics of business, and operations research. Other topics include critical thinking strategies for business decisions, analytics, statistics, and strategic management.
For more information about these degrees, visit our business administration and management program page.
Dr. Tonya Smith is a part-time instructor for AMU’s Dr. Wallace E. Boston School of Business. She holds a bachelor’s in project management from George Fox University, a master’s in leadership from Norwich University, and a doctoral degree in management from the University of Phoenix. She is a certified Project Management Professional (PMP) with expertise in program and operations management.
Dr. Smith is a member of the Project Management Institute (PMI) and an active member of the Phoenix Chapter. She is also an Advisory Committee Member of 12 Million Women, an online community for women aiming at, practicing in, or leading with project management.