Transcript Indicative Business Case

Better Business Cases
“Investing for change”
Indicative Business Case
Programme
Strategic
Assessment
Project
Strategic
Assessment
Project
Strategic
Assessment
Programme Business
Case
Indicative
Business
Case
Detailed
Business
Case
Implementation
Business Case
Single Stage Business Case
© The Treasury
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Indicative Business Case
Purpose
• Confirm the strategic context
• Confirm the case for change
• Recommend an indicative way
forward with a limited number of short-listed
options for further detailed analysis
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Indicative Business Case
Strategic
Strategic Case-Making the Case for Change
Revisit strategic context and confirm case for change
Investment objectives, existing arrangements and business
needs
Potential business scope and key service requirements
Benefits, risks, constraints and dependencies
Stakeholders do the strategic case thinking together
in one or more two hour workshops led by a facilitator
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Indicative Business Case
Economic Case-Exploring the Preferred Way Forward
Critical success factors
Long-list options and initial options assessment by
dimension:
• Scale, scope and location (what)
• Service solution (how)
• Service delivery (who - including non-traditional
procurement options)
• Timing and staging (when)
• Funding (how much)
Economic
Stakeholders do the economic case thinking together in two or more twohour workshops led by a facilitator, and a procurement specialist:
• Prepare long list (consider inclusion of industry), then
• Assess long list to short list
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Non-traditional procurement relationship spectrum
Distant?
Close?
Immediate
Establishment
Last Minute
Engagement
Early
Short
Duration
Long
Tactical
Approach
Strategic
Deal focus
Poor
Reactive
Low
Rarely done
Separate
Commitment
Information exchange
Openness
Planned
Mutual value
Good
Forward thinking
Trust
High
Risk assessment
Joint
Risk management
Shared
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The long list to short list of options (example)
Scoping Options
Reference to
Service Solution Options
Service Delivery Options
SCO1
SCO2
SCO3
SCO4
SOL1
SOL2
SOL3
SOL4
SDO1
Do Nothing
Minimum
Intermediate
Maximum
Discrete
Integrated
Regionally
Integrated
Nationally
Regional
and
National
Network
In house
Full supported netw ork MIMS
available for implementation by
X
Support improved clinical data
and management information
flow s
Improve the functionality and
flexibility of the Pathology IT
system to meet current and
future needs
Critical Success Factors
No
No
Yes
Yes
No
Partial
Yes
Yes
Yes
Yes
Yes
No
No
Yes
Yes
No
Partial
Yes
Yes
Yes
Yes
No
Partial
Yes
Yes
No
Partial
Yes
Yes
Yes
Business Need
No
No
Yes
Yes
No
Partial
Yes
Yes
Strategic Fit
No
No
Yes
Yes
No
Partial
Yes
Yes
Benefits Optimisation
No
No
Yes
Yes
No
Partial
Yes
Potential Achievability
Partial
Yes
Yes
Partial
Partial
Yes
Supply-side capability and
capability
Potential Affordability
Partial
Yes
Yes
Partial
Yes
Yes
No
No
Yes
Description of option
SDO2
SDO3
Im plem entation Options
SDO4
IMP1
IMP2
Phased
nationally
by
discipline
System
phased by
site
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Partial
Yes
Yes
Yes
Yes
Yes
Yes
Partial
Yes
Partial
Yes
Yes
Yes
Yes
Yes
No
Partial
Partial
Yes
Partial
No
Yes
No
No
Yes
Partial
Partial
Partial
Yes
Partial
Yes
Yes
Yes
Yes
Yes
No
No
Yes
No
Yes
Yes
Yes
Yes
Partially
Partially
Fully
managed
managed outsourced
(led by
(led by
to
[MINISTRY]) commercia commercia
l supplier) l suppliers
IMP3
IMP4
System
National
phased by implementa
region
tion
Investm ent Objectives
Summary
Continued Discounted Preferred
for VFM
Partial
Partial
Yes
Possible
Discounted
Possible
Yes
Preferred Discounted Discounted
Options progressed to the
shortlist
As the CSFs are crucial (not
desirable) any options that
had a CSF scoring a "No" are
discounted
Possible
Preferred Discounted Discounted Preferred Discounted Discounted
Refer
Note
below
Option Title
Option 0 Do Nothing
SCO1 Do Nothing
Option 1 Interm ediate
Scope - Regional
Option 2 Interm ediate
Scope - National
Integration
Option 3 Maxim um Scope Regional Integration
SCO3 Intermediate
SOL2 Integrated Regionally
SCO3 Intermediate
SOL3 Integrated Nationally
SCO4 Maximum
Option 4 Maxim um Scope National Integration
SCO4 Maximum
SDO3 Partially managed (led by commercial
supplier)*
SDO3 Partially managed (led by commercial
supplier)*
IMP2 Phased by site
SOL2 Integrated Regionally
SDO3 Partially managed (led by commercial
supplier)*
IMP2 Phased by site
SOL3 Integrated Nationally
SDO3 Partially managed (led by commercial
supplier)*
* A capability analysis of the [MINISTRY} will be
conducted to see if SDO4 Partially managed (led
by [MINISTRY]) is a possibility. Based on present
incomplete information this does not appear to be
a viable option.
IMP2 Phased by site
IMP2 Phased by site
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Indicative Business Case
Commercial, Financial and Management Cases
(Outline)
Recommended preferred way forward, if conventional
procurement
Commercial
• At least three short-listed options, including a
base case option
• Provide range of indicative cost estimates for
each short-listed option and funding sources
Financial
• Outline the commercial case
• Outline the management case
Management
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In summary
Indicative Business Case
– Confirm the strategic context & the case for change
– Recommend an indicative way forward with a limited
number of short-listed options for further detailed
analysis
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