Agile Business Analysis Initiative Horizon Planning 3 — Questions and Answers
Question 1: A BA team is evaluating which horizon an initiative belongs to. The initiative has stable demand, low uncertainty, and generates predictable cash flow. Where does it belong?
- Horizon 2
- Horizon 3
- Horizon 1 (Correct answer)
- Innovation pipeline
Correct answer: Horizon 1
Stable, predictable, cash-generating activities define Horizon 1 — the core business.
Question 2: Which Agile technique is most compatible with managing Horizon 3 initiatives where requirements are still unknown?
- Detailed use case documentation
- Design thinking and assumption testing (Correct answer)
- Formal change control boards
- Velocity-based capacity planning
Correct answer: Design thinking and assumption testing
Design thinking and assumption testing are built for ambiguous, exploratory problems common in Horizon 3.
Question 3: A stakeholder asks a BA why investment should be split across all three horizons rather than focusing solely on Horizon 1 profitability. What is the best response?
- Horizon 1 always outperforms Horizon 2 and 3
- Balancing all three horizons ensures short-term sustainability while building future growth (Correct answer)
- Horizon 3 investment yields faster ROI
- Splitting investment is required by Agile frameworks
Correct answer: Balancing all three horizons ensures short-term sustainability while building future growth
Portfolio-balancing across horizons prevents over-reliance on current revenue streams and ensures the organization continues growing.
Question 4: During a portfolio review, an initiative previously in Horizon 2 shows declining market interest. What action should the BA recommend?
- Accelerate it to Horizon 1 immediately
- Re-evaluate its strategic fit and consider pivoting or retiring it (Correct answer)
- Move it to Horizon 3 for further exploration
- Increase sprint velocity to rescue the initiative
Correct answer: Re-evaluate its strategic fit and consider pivoting or retiring it
Declining market interest signals the need to re-evaluate strategic fit — the initiative may need to pivot, pause, or be retired.
Question 5: How does the concept of 'time horizons' differ from 'release planning' in Agile business analysis?
- They are identical concepts
- Horizon planning is strategic and spans years; release planning is tactical and spans quarters or months (Correct answer)
- Release planning covers all three horizons simultaneously
- Horizon planning is only used in waterfall projects
Correct answer: Horizon planning is strategic and spans years; release planning is tactical and spans quarters or months
Horizon planning operates at the strategic portfolio level across multi-year timeframes, while release planning is a near-term tactical tool.
Question 6: A BA is facilitating a horizon planning workshop. A participant suggests that customer feedback from Horizon 1 products should inform Horizon 3 bets. Is this appropriate?
- No — horizons must remain completely separate
- Yes — insights from current customers can reveal future unmet needs worth exploring (Correct answer)
- Only if the feedback is negative
- Only in regulated industries
Correct answer: Yes — insights from current customers can reveal future unmet needs worth exploring
Customer insights from Horizon 1 are valuable inputs for identifying unmet needs that Horizon 3 initiatives could address.
Question 7: In horizon planning, what does 'portfolio balance' mean for a BA facilitating executive alignment?
- Equal budget allocation across all three horizons
- An intentional investment mix across horizons aligned to strategic risk appetite (Correct answer)
- Ensuring all projects are in Horizon 1
- Balancing the number of user stories per horizon
Correct answer: An intentional investment mix across horizons aligned to strategic risk appetite
Portfolio balance means deliberately allocating resources across horizons in proportion to the organization's strategic goals and risk tolerance.
Agile Business Analysis Initiative Horizon Planning 3
A BA team is evaluating which horizon an initiative belongs to.
The initiative has stable demand, low uncertainty, and generates predictable cash flow.
Where does it belong?