Agile Business Analysis Agile Business Analysis Strategy Horizon Analysis Questions and Answers 2 — Questions and Answers
Question 1: In strategy horizon analysis, which horizon typically focuses on defending and extending the core business?
- Horizon 1 (Correct answer)
- Horizon 2
- Horizon 3
- Horizon 0
Correct answer: Horizon 1
Horizon 1 concentrates on maintaining and optimizing the existing core business operations.
Question 2: How does an agile business analyst use horizon analysis to prioritize backlog items?
- By mapping items to horizons and balancing investment across short-term and long-term value (Correct answer)
- By placing all items in Horizon 3 for maximum innovation
- By focusing exclusively on Horizon 1 items each sprint
- By randomly distributing items across horizons
Correct answer: By mapping items to horizons and balancing investment across short-term and long-term value
Mapping backlog items to horizons ensures a balanced portfolio of immediate returns and future growth investments.
Question 3: What is a key risk of over-investing in Horizon 1 initiatives at the expense of Horizon 2 and 3?
- The organization may fail to adapt to market disruptions and miss emerging opportunities (Correct answer)
- The organization will immediately lose current revenue
- Stakeholders will demand faster sprint cycles
- Technical debt will automatically increase in the codebase
Correct answer: The organization may fail to adapt to market disruptions and miss emerging opportunities
Neglecting Horizons 2 and 3 leaves the organization vulnerable to disruption because no pipeline of future capabilities is being developed.
Question 4: Which technique best complements strategy horizon analysis when an agile BA needs to validate Horizon 3 assumptions?
- Lean startup experimentation with MVPs (Correct answer)
- Detailed Gantt chart scheduling
- Full requirements specification documents
- Earned value management
Correct answer: Lean startup experimentation with MVPs
Lean startup experimentation with MVPs allows rapid, low-cost validation of the highly uncertain assumptions typical of Horizon 3 initiatives.
Question 5: When presenting horizon analysis findings to executive stakeholders, what should an agile BA emphasize?
- The strategic alignment of each horizon with organizational goals and the investment balance across all three (Correct answer)
- Only the technical implementation details of Horizon 1 features
- The number of story points allocated to each horizon
- Individual developer velocity metrics per horizon
Correct answer: The strategic alignment of each horizon with organizational goals and the investment balance across all three
Executives need to understand how each horizon supports strategic objectives and whether the investment mix positions the organization for sustainable growth.
Question 6: In a scaled agile environment, how does horizon analysis influence PI (Program Increment) planning?
- It helps portfolio managers allocate capacity across horizons so each PI includes a deliberate mix of core, growth, and exploratory work (Correct answer)
- It replaces the PI planning event entirely
- It is used only during retrospectives to classify completed work
- It eliminates the need for stakeholder input during planning
Correct answer: It helps portfolio managers allocate capacity across horizons so each PI includes a deliberate mix of core, growth, and exploratory work
Horizon analysis guides capacity allocation during PI planning so teams deliberately balance sustaining the core business with pursuing growth and innovation.
In strategy horizon analysis, which horizon typically focuses on defending and extending the core business?