Transcript Better Business Cases Development Course - slides

Better Business Cases
“Investing for change”
Overview
© The Treasury
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Background
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Cabinet
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Visibility of future decisions
Confident investment decisions
Treasury response
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Portfolio management
Business case development
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Visibility to inform the portfolio
Opportunity for greater
influence through
better strategy and
planning
10 year view of
intentions
Better
Business
Cases
Projects and
programmes underway
Benefits
Aligning and balancing with direction (govt priorities)
Individual intentions fit under a wider lifecycle, that can be influenced and balanced
within constraints before business cases on programme and projects start to be
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developed
How BBC fits with Strategy and Policy
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Why do I need to know about Better Business Cases?
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Decision makers/Investors-confidence !
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Management-confidence !
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Business case developers-fit for purpose
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Reviewers- fit for purpose
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Private sector service providers-early engagement
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Why two thirds of programme and projects succeed?
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Strong strategic fit
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Senior management engagement
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Stakeholder engagement
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Focus first on value-for-money then funding
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Supply side engagement
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Systematic approach
Differences between programmes and projects
We have built these into NZ version of BBC
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What is a better business case and what is expected
What is a Better Business Case?
• BBC (UK) supported by part of ILM tool (Australia)
• Principles
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Campaign to deliver benefits, not a document to get money
Thinking not writing
Stakeholder engagement-way of working together
Fit for purpose analysis
Smart procurement of consultancy support
Coherence and cohesion
What is expected?
• Depends on scale and risk
• 5 case model
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Who is involved
Sponsor engaging early with reviewer on:
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type of business case required to support the decision
required
• level of effort and stakeholder engagement required
Key “senior” stakeholders do the BBC thinking together:
• highly influential and highly impacted
• include the writer early
• include the reviewer early
• include supply side early
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When does it apply?
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State sector-capital
Canterbury Recovery
National Land Transport Programme
Auckland Plan
Tertiary Education
Local Government
Good practice
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BBC Overview
• Why do I need to know about better business cases?
– Outcomes
– Stakeholders
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What is a Better Business Case?
– Attributes
– Principles
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What is expected?
– Depends on scale and risk
– 5 case model
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Who needs to be involved?
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The 5 case model and the process
© The Treasury
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The 5 Case Model
Any business case addresses 5 key questions:
1. Is there a compelling case for change?
2. Does the preferred investment option optimise value
for money?
3. Is the proposed deal commercially viable?
4. Is the spending proposal affordable?
5. How can the proposal be delivered successfully?
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The 5 Case Model
The 5 key elements of good practice business cases
Achievable and
can be
successfully
delivered
Affordable within
available funding
Compelling case for
change - strategic
fit & business needs
Strategic
Management
Financial
Economic
Commercial
Preferred option
optimises value
for money
Commercially
viable
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The pathway of the phased BBC process can be used to select which
type of business case best delivers the required decision/s
Portfolio or programme
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Planning and scoping
Strategic
Assessment
E
C
The level of
emphasis of each
of the five cases
depends on the
type of business
case
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F
Programme Business
Case
Confirm case for change, preferred
programme, project tranches, funding
Confirm fit with strategy
and need to invest
Project/s (Large scale and/or high risk)
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S
C F M
Indicative
Business
Case
Strategic
Assessment
Confirm fit with
strategy and the
need to invest
E
Confirm way forward
with short-listed
options (consider
non-traditional
procurement)
Project/s (Other)
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E
C
F M
Detailed
Business
Case
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C
F M
Implementation
Business Case
Confirm supplier offering
Confirm best value
best value, detailed
for money option,
commercials, confirm
outline potential deal
affordability. detailed
and delivery plan,
management and delivery
assess affordability.
arrangements
S E C FM
Strategic
Assessment
Single Stage Business
Case
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How BBC fits with Strategy and Policy
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Planning the Better Business Case
Right sizing effort – the scoping
document
© The Treasury
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The Goldilocks Zone
In the case of fairy
tales
In the case of life on
planets
In the case of Better
Business Cases
Not too hot/not too
cold
Not too close/not too
far away
Not enough effort/too
much effort
Just right
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Use the scoping documents to obtain sponsor
and reviewer agreement on how to apply BBC
• What previous decisions have been made
• Programme or project approach and then the type
of business case
• Right sizing the capacity/capability of the team
• Right sizing the effort and engagement
• What decision is being sought
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Business Case
Capability
Subject Matter
Focus
Stakeholder
Management
Stakeholder
Focus
Governance
Change mgmt
e.g. service
delivery
e.g. stakeholder
engagement
Business Case
Assurance
and Decision
Making
e.g. cost/benefit
analysis
Power and Influence
Content
High
Influence
Coproduction
Mass
Communication
Empower
e.g. monitoring
function
Project Management
Low
Change ImpactHigh
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Key considerations
• Complete the scoping document at the beginning of
each phase
• Fill out what you know - update as you know more
• Use the document to support your thinking,
discussions and recording the agreed way forward
• Involve your monitoring/reviewer function early
• It is a tool to support you – not a prescriptive template
– so modify to meet yours and your monitoring
function’s needs
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Where to get support and
the national evaluation and way forward
© The Treasury
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Where do I get support-on the website ?
Overview information
– Quick Reference Guide
– Presentation
– Overview booklet
– Scoping document (programme or project)
Detailed information for each type of business case:
– Scoping document, to agree effort
– Guidance booklets, to understand the standard
– Word Template, to write the business case
– Power point “one pager”, to present the business case
Links to related processes
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Where do I get support-book on line ?
Training programme
(Monthly in Auckland, Wellington, Christchurch)
Bi-monthly Hamilton/Rotorua
– Foundation Course (knowledge-half day) free
– Practitioners Course modules 1 and 2 (skills-2 full
days) cost
– Reviewers Course (skills-full day) cost
Tailored support
– Training for high priority public sector
organisations
– Executive intensive session(45 minutes) free
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2013 2013 National Evaluation and way forward
– Evaluation findings
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Public Sector Organisations
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Minister of Finance
– Way Forward
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Improve capability of the priority public sector organisations
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Add case studies and webinar communities of practice
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Expert Pool pilot
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Organisational capability pilot
Provide advice to improve reviewer capability
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