High returns from reporting automation

In my experience the role of a business analyst is a conundrum.  As the title conveys, the business analyst analyzes financial and non-financial data to identify management insights that support decision making.  The role requires creativity and ingenuity, and at times is more art than science.  However, as management, recognizing the value of the ad hoc investigation, expects that information to be provided regularly the role becomes a quotidian reporting role.

When this happens I find the situation quite unfortunate as it squanders the business analyst skill set, and at $50k to $100k salary it is not a good use of company funds. 

The solution is report automation.

Management is often resistant to automation because it requires an investment, time and money, as well as a sacrifice of immediate benefits for distant benefits.  However, there is a compelling business argument for automation.

Report automation can provide an incredible return on investment (ROI).  For illustrative purposes, suppose a report that requires 4 hours per week can be automated with 16 hours of development work.  The payback period is 4 weeks (or 4 reporting cycles), which is calculated from 16 hours investment divided by the periodic return of 4 hours.  And over a one year period, 192 hours of capacity (48 weeks times 4 hours per week) will be returned to the team, which results in a return on investment of 192/16 = 1200%.

The other major benefit of automation is improved reliability by mitigating human error.  It is only natural that reports created manually are at risk of calculation error because, to coin a phrase, we are only human.  I point out that a business analyst may conduct thousands of calculations per day within his spreadsheets, and one error, while frustrating for our stakeholders, is a low error rate (1/1000 = 0.1%).  Report automation allows the computers to conduct the routine calculations and allows us humans to conduct investigative analysis requiring creativity and ingenuity, traits computers do not possess.

I have two analogies that illustrate the value of report automation.

First, consider a glass to represent the capacity of the business analysis team.  As new demands are placed upon the team, the glass fills up to the point where it is either full or overflowing (quality and delivery suffer in this case).  In order to put some more in the glass, some has to be spilled out.  Report automation spills some out and creates capacity.

I realized the second analogy as I was inching through the construction zone at the east side of the Port Mann Bridge.  Anxious to return home, I muttered why this construction has to be done today.  I then realized that is exactly how management thinks – they need information today.  However, when construction is completed our commute is invariably improved, and the efficient roadways support municipal growth.

Report automation is development of an infrastructure that supports continued growth and efficiency.