In business analysis, what does 'future state' refer to?

In the context of business analysis, 'future state' refers to the desired improvements and outcomes that an organization aims to achieve through its initiatives and changes. This concept encapsulates an ideal vision of how processes, systems, and organizational capabilities will function after implementation of strategies or projects.

Understanding 'future state' is critical because it guides the development of requirements and outlines the strategic direction of improvement efforts. By defining the future state, business analysts can identify gaps between the current state and this envisioned future, allowing for the creation of actionable plans to bridge those gaps.

The notion of 'future state' is not concerned with the present operational status of a business, which would focus on the current capabilities and performance. Immediate goals of a project represent short-term objectives, not the overall long-term vision. Historical performance metrics reflect past conditions and results, which do not necessarily inform what improvements are sought moving forward. Thus, the correct identification of the future state as the desired improvements crystallizes the overarching aim of business analysis in driving positive change within an organization.