Transcript Better Business Cases Development Course

Better Business Cases
Investing for change
Seminar
August 2012
© The Treasury
1
Agenda
Welcome
Background
Overview
The 5 case model and the process
The scoping document-to engage and agree early
Products, training, support and ongoing development
Guest speaker
Questions
Tea and coffee
2
Background
•
Better informed decisions on investments
•
What makes successful projects and programmes ?
3
Overview
•
Why do I need to know about better business cases?
•
What is a Better Business Case?
•
What is expected?
•
When does it apply?
•
Who needs to be involved?
4
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?
5
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
6
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
S
S
Planning and scoping
Strategic
Assessment
E
C
The level of
emphasis of each
of the five cases
depends on the
type of business
case
M
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)
S
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)
S
S
E
C
F M
Detailed
Business
Case
S
E
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
7
The scoping document-to engage and agree early
Purpose:
• Facilitate discussion and
agreement on how the
Better Business Case
Guidance will be applied
(between the developer and
the monitoring function)
• Aligning the level of effort
and assurance through each
part of the business case
development process with
the scale and risk of the
proposal
Users:
•
•
•
•
The Developer
The Sponsor
The Monitor /Reviewer
Other Assurance
8
How the BBC guidance can be tailored
Which Business Case documents will be completed – the pathway
1
Portfolio or programme
S
S
Programme
Strategic
Assessment
Confirm fit with strategy
Project Strategic
Assessment
2
S
E
C
F
Scoping document used:
• Programme Cover Sheet
• Project Cover Sheet
M
M
S
E
Indicative
Business
Case
E
C
F
M
Detailed
Business
Case
Agree shortlisted
options
S
S
F
Approve affordable/best value
programme and projects
Project
Project Strategic
Assessment
C
Programme Business Case
Confirm fit with strategy
S
E
Approve delegation
and funding
C
F
S
E
C
F
M
Implementation
Business Case
Approve contracts
M
Single Stage Business Case
What analysis and engagement is
appropriate to develop the specific business
case
Scoping document used:
• The specific business case
scoping document
9
Products, training , support and ongoing development
Products on the website
Training and Support available through the website
Version 3 released 6th August
Interest in adapting/adopting BBC from around NZ but
need to better align/integrate with other processes and
decision making frameworks
Further development for release of version 4 in July 2013
http://www.infrastructure.govt.nz/publications/betterbusinesscases
10
Guest speaker
© The Treasury
11
Questions
© The Treasury
12