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Onion Diagram

The Onion Diagram is a graphical technique that visually represents the relationships among different aspects of a subject, most commonly stakeholders and the solution in the context of business analysis. This tool is often used during the Strategy Analysis phase or as part of Stakeholder Engagement to visually articulate how closely stakeholders are related to the solution. It falls under the visual modeling techniques in the Business Analysis Body of Knowledge (BABOK).

Objective

The primary goal of an Onion Diagram is to analyze stakeholders by representing the strength or significance of their relationships to the solution. Stakeholders closest to the core of the onion have the most direct or strong relationship to the solution. Those on the outer layers have a less direct relationship. This information can be vital for stakeholder engagement strategies, defining requirements, and effective communication.

Structure

The diagram consists of concentric circles, resembling the layers of an onion. At the center, you place the solution which could represent one or multiple products. Each layer moving outward contains different stakeholders, grouped based on the strength or significance of their relationship to the solution.

How to Create

  1. Identify Solution: Place the solution or product at the center of the diagram.

  2. Identify Stakeholders: List all the stakeholders related to the solution, both internal and external to the organization.

  3. Classify Relationships: Determine the strength or significance of each stakeholder's relationship to the solution.

  4. Position Stakeholders: Place stakeholders in the concentric circles based on the classified relationship strength. Those with stronger relationships go near the center, while those with weaker relationships go on the outer layers.

  5. Define Layers: Optionally, the team can decide the meaning or definition of each layer, adding a legend to explain the same.

  6. Review and Update: Continuously revise the diagram as stakeholder relationships evolve over the course of the project.

When to Use

The Onion Diagram is particularly useful when there is a need to:

  • Quickly convey stakeholder relationships to the team.

  • Develop stakeholder management or communication strategies.

  • Complement other techniques like organizational charts and brainstorming for a more comprehensive stakeholder analysis.

Advantages and Limitations

  • Advantages: Provides a quick, visual representation of stakeholder involvement, helps in strategic decision-making, and aids in risk assessment concerning stakeholder engagement.

  • Limitations: May oversimplify complex relationships and does not provide detailed information on the nature of relationships between stakeholders and the solution.

By using the Onion Diagram effectively, business analysts can enhance stakeholder engagement strategies, facilitate more precise communication, and contribute to the overall project success.

Quiz

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