About Business Analysts
The business and management analysis profession offers a lucrative path for young professionals with keen analytical skills. According to the Bureau of Labor Statistics, the salary range for the middle 50 percent of business analysts was $50,000 to $92,000 in 2006. The daily work of a business analyst consists of analyzing a company's practices and providing actionable solutions to areas of weakness. While the financial rewards are clear, business analysts must be good at dealing with managers and owners hostile to new ideas. The first lesson a business analyst should learn out of the gate is that there is no silver bullet for a client's problems.
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Types
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The single characteristic that separates one business analyst from another is the level of specialization. Some business analysts act as liaisons between management and the IT department, requiring general knowledge of all aspects of a company's operations. Other business analysts focus entirely on one department or industry through their entire careers. A business analyst with a software development background will likely stick to clients in the software industry while a former accountant turned analyst will focus his attention on accounting standards across multiple industries.
Developing a Good Client Base
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While some firms hire business analysts as employees or ongoing contractors, a growing number of analysts are striking out on their own to find clients. Freelance business analysts need to know how to attract new clients as projects are completed. The best times for an analyst to promote his services come when an industry leader has vaulted past competitors and new restrictions have been passed by state legislatures. A business analyst familiar with IT hardware should offer his services to computer developers if one of their competitors has just earned a major government contract. Analysts with accounting and financial backgrounds should keep their eyes on legislation that tightens up accounting standards or requires greater transparency in financial reports. The key to developing a good client base is striking while investors are desperate for changes to existing business models.
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Time Frame
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Business analysts develop timetables for completed projects based on the demands of their clients. If a client asks for a simple analysis of financial practices within the company, a review of expenses and revenue streams could take a matter of days. An analyst who is asked to conduct a complete review of a retailer's corporate operations may spend months looking at organizational charts and observing quarterly numbers. For long-term projects, business analysts are best served to observe at least a full quarter of a client's operations to eliminate anomalies in sales and expenses. As the quarter comes to a close, an analyst can examine how IT, sales, marketing and other departments influenced the client's overall performance.
Learning to Deal with Clients
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A common problem for a young business analyst is figuring out how to balance independence with good customer relations. Business analysts working with large corporations have to be careful not to upset managers, developers and investors who are integral to the long-term success of their employers. Freelance analysts start out at a deficit with employees, perceived as outsiders who will recommend budget cuts and layoffs to improve the bottom line. For both types of business analysts, these problems can be solved with one-on-one interviews and involvement of key staff in the final recommendations. While an analyst must provide an objective recommendation to his client on how to improve business practices, the final report should include discussions with department heads and feedback from lower-level employees to avoid damaging internal relations.
Preparing for a Career as a Business Analyst
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The term business analyst is so diffuse that it is difficult to pin down minimal educational and professional requirements. While the Bureau of Labor Statistics notes that a BA is sufficient in some areas of analysis, an MBA or advanced certifications in IT fields are necessary to stay competitive in the current marketplace. Experienced salespeople, IT technicians and managers looking to enter the field of business analysis can pursue certifications to help land clients. A growing number of universities including UC-Irvine and Northwestern University offer business analyst certificate programs. College and graduate students who are interested in becoming business analysts should take courses in statistics, computer science and economics to prepare themselves for their future careers.
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Resources
- Photo Credit Photo by Travis Isaacs (Flickr)
