Presentation is loading. Please wait.

Presentation is loading. Please wait.

The Investment Management Standard Information Session …. doing the things that matter most.

Similar presentations


Presentation on theme: "The Investment Management Standard Information Session …. doing the things that matter most."— Presentation transcript:

1 The Investment Management Standard Information Session …. doing the things that matter most

2 This session will cover… History of its evolution The need for a different approach Key concepts How it is used Shaping new investments (the budget process) Wider uses It’s impact Role in better government Getting started Using an Accredited Facilitator How to become an accredited facilitator Seeking new insights Your observations / wisdom

3 History of it’s evolution… The need for a different approach

4 We don’t define benefits and we never track benefits Millions spent on unnecessary business cases We poorly define the need for an investment Inability to prioritise competing investments ….something wasn’t working (2004) Disconnect between good policy and its implementation Little consideration of genuine strategic options “Solutions looking for problems”

5 The importance of getting it right early

6 UK Government Review of Gateway Reviews © UK Government 2006

7 Getting back to basics “16 Questions” questions that any decision-maker should have considered before making a decision to fund an investment

8 16Questions …Investment Decision-makers’ Checklist OKWEAKNOTHING?STRONG

9 The Business Case format has now been aligned to the 16Questions

10 ….decision-making analysis and advice is based on the 16Questions

11 The budget process of the Victorian Government 16 Questions Investment Management Standard Business Case policy merit robustness Quality of proposals Quality of analysis and advice Investment Analysis & Advice

12 The difference between PROJECT Management and INVESTMENT Management INVESTMENT management Is the logic for the planned investment clear? Is there a sound case to proceed? Were the expected benefits achieved? PROJECT management Will the project complete within budget? Will it deliver to its planned schedule? Were the expected products delivered?

13 “Key concepts”

14 The INVESTMENT MANAGEMENT standard ‘…. is a collection of simple, commonsense ideas and practices that help organisation to direct resources to deliver the best outcomes.’

15 Definition of INVESTMENT ‘The commitment of the resources of an organisation with the expectation of receiving a benefit’

16 The practices are founded on three principles: 1.The best way to aggregate knowledge is through informed discussion with the people who best understand the subject matter. 2.The logic of any investment must be communicated using simple concepts and language on single-page documents (eg. Investment Logic Map) 3.Every investment must be able to describe how it is contributing to the benefits the organisation is seeking.

17 …its all about the ‘informed discussion’ Informed Requires the participation of the Investor and those people who are most informed on the topic. Decision-making They are structured to address a sequence of decisions that are central to the potential investment. Plain English The story of the investment is told in simple concepts and language in a way that can be understood by the layman. Word limits require that direct language is used. The investment story is depicted on a single page in the form of an Investment Logic Map. Evidence based Each statement of the story must be able to be supported by evidence. 2-hour limit Discussions do not exceed two-hours in duration. This has been found to be short enough to obtain the time commitment of senior people, and long enough to extract an agreed investment story. Concluding the discussion The 48 hours following is used to conclude the discussion. During this period the first version of the investment story is circulated and any outstanding matters are electronically discussed and resolved. Facilitated The Facilitator is responsible for:  Extracting and telling the investment story in a way that will maximise its value to the organisation and is expressed in plain language and concepts  Obtaining the agreement of all participants to the investment story  Ensuring that each statement can be supported by evidence.

18 Investment Logic Map - “simple concepts and language” A single-page depiction of the logic that underpins an investment. It provides the core focus of an investment and is modified to reflect changes to the logic throughout its lifecycle. There are three variations: Initiative (for single investments) Program (for a program of new investment) Organisation (for an entire organisation)

19 Benefits Framework Enterprise Organisation Investment Reduce crime Friendly, confident and safe communities Reduce time to obtain forensic matches “What outcomes is the enterprise is seeking?” “How will the organisation contribute to the enterprise outcomes?” (BENEFITS) “How will this investment help the organisation meet it’s objectives?” (KPI)

20 How it is used… The 7 practises

21 Investment Management can be used to… Shape a new investment Prioritise investment proposals Monitor and measure the delivery of benefits Evaluate a program of investment Develop new policy Improve an organisation’s focus and effectiveness Monitor an organisation’s outcomes

22 Applied at the “Shaping new investments”, the first goal of the Investment Management Standard is to extract the information decision-makers need to decide whether a potential investment should proceed to business case, be funded or stoped (answering the 16Questions).

23 The ‘informed discussions’ (4 workshops) ….structured to extract the critical information that tell ‘the investment story’ that is the foundation of a business case Define the problem/s that need to be addressed Validate the problem is real Specify the benefits that will result from addressing the problem Identify the KPIs, measures and targets that any investment will need to deliver Specify how the delivery of the benefits will be measured and reported Explore the interventions that might be taken to address the problem and deliver the benefits Identify and evaluate a mix of strategic responses Consistent with the strategic response, define the preferred solution (changes and assets) Quantify the preferred solution 23

24 FOUR documents are produced through the workshops of the Standard. These become key content in any subsequent business case. Investment Logic Map Benefit Management Plan Strategic Options Analysis Investment Concept Brief 24

25 The number of discussions required and the documents produced will be determined by the nature of the investment Very large or complex investments may require four discussions that would produce all five documents as input to a business case. Small investments can address the questions to the level required in a single discussion that would only produce an Investment Logic Map. ….but they all follow the same ‘line of enquiry’

26 “How can you develop a Benefit Management Plan when you don’t even know what the solution will be?” A clear understanding of the measures that must be met in successfully responding to the problem is essential to identifying the types of interventions that will be needed. Without these targets, interventions might be selected that can reduce childhood obesity but to a degree that is ineffective in addressing the problem. About the order of the workshops… 26

27 The ‘informed discussions’ Define the problem/s that need to be addressed Validate the problem is real Specify the benefits that will result from addressing the problem

28 Discussion-1 PROBLEM Definition The start of the investment story (an ILM)

29 Discussion-1 PROBLEM Definition The start of the investment story (an ILM)

30 The ‘informed discussions’ Define the problem/s that need to be addressed Validate the problem is real Specify the benefits that will result from addressing the problem Identify the KPIs, measures and targets that any investment will need to deliver Specify how the delivery of the benefits will be measured and reported

31 Discussion-2 BENEFIT Definition A Benefit Map is produced… KPIs must be: Meaningful Attributable Measurable

32 …and the first version of the Benefit Management Plan

33 The ‘informed discussions’ (workshops) Define the problem/s that need to be addressed Validate the problem is real Specify the benefits that will result from addressing the problem Identify the KPIs, measures and targets that any investment will need to deliver Specify how the delivery of the benefits will be measured and reported Explore the interventions that might be taken to address the problem and deliver the benefits Identify and evaluate a mix of strategic responses

34 Firstly, what is a Strategic Intervention (here we go again!)? ….it is anything that can pass the following three tests Test 2Does it allow for more than one project option? Test 1Will it deliver the expected KPIs (their target measures)? Test 3Does it seem to be a valid response to the problem/s?

35 Let’s clarify between Strategic Interventions, Options and Response 1.A Strategic intervention is a high level individual strategic actions 2.Strategic Options are a mix of Strategic Interventions 3.Strategic Response is your preferred Strategic Option

36 STEP 1 - Identify potential strategic interventions An intervention MUST 1. Deliver to some of the identified KPIs, and 2.Allow for more than 1 possible solution 3.Seem to be a good response to the problem 36

37 From Problem to Benefits and Strategic Response 37

38 From Problem to Benefits and Strategic Response 38

39 STEP 2 - Select Strategic Options How can the interventions be grouped to provide a range of clever strategic options? 39

40 Option 1 Use education & technology to overcome service shortfalls Option 2 Maximise services provided from existing facility Option 3 Deliver additional justice services using off-site capacity Option 4 Deliver full range of justice services at new court complex Option 5 Cease service provision at Noojee and close existing complex Option 6 Close Noojee court and reconfigure to provide justice services BENEFITS Percentage of full benefit to be delivered 30%50%66%100%38%80% Ability of each option to deliver a benefit (scored 0-5) Effectiveness of justice system (50%) Cost savings (30%) Safety of participants (20%) COST NPV of TEI re. base case (Range) $2m – 5m$100m - $120m$50m – 75m$300m – 350m$1m – 2m$100m – 120m TIME From funding date to delivery of benefits (Range) 24 – 36 months36 – 48 months12 – 36 months36 – 48 months6 – 12 months18 – 24 months RISK (Criticality/ Likelihood) High, Medium or Low Education is ineffective M/H Defendants and witnesses won’t attend court elsewhere M/M Heritage of court building will restrict its modification H/M A suitable nearby site is not available H/M A disbursed court will undermine court effectiveness M/M A suitable site is not available M/M Substantial mis-trials due to witness non-attendance M/H Lack of capacity to handle cases in neighbouring courts H/M DIS-BENEFITS Negative impacts that are likely to occur as a direct consequence of implementing this option. None have been identifiedSubstantial disruption will occur during the construction period The old heritage courthouse will be a continued financial burden on government Closure of the existing court complex will impact the local economy and may threaten the viability of Noojee Transfer of hearings may impact on the community Ranking 13 2 STEP 3 - Evaluate Strategic Options 40

41 Option 1 Use education & technology to overcome service shortfalls Option 2 Maximise services provided from existing facility Option 3 Deliver additional justice services using off-site capacity Option 4 Deliver full range of justice services at new court complex Option 5 Cease service provision at Noojee and close existing complex Option 6 Close Noojee court and reconfigure to provide justice services BENEFITS Percentage of full benefit to be delivered 30%50%66%100%38%80% Ability of each option to deliver a benefit (scored 0-5) Effectiveness of justice system (50%) Cost savings (30%) Safety of participants (20%) COST NPV of TEI re. base case (Range) $2m – 5m$100m - $120m$50m – 75m$300m – 350m$1m – 2m$100m – 120m TIME From funding date to delivery of benefits (Range) 24 – 36 months36 – 48 months12 – 36 months36 – 48 months6 – 12 months18 – 24 months RISK (Criticality/ Likelihood) High, Medium or Low Education is ineffective M/H Defendants and witnesses won’t attend court elsewhere M/M Heritage of court building will restrict its modification H/M A suitable nearby site is not available H/M A disbursed court will undermine court effectiveness M/M A suitable site is not available M/M Substantial mis-trials due to witness non-attendance M/H Lack of capacity to handle cases in neighbouring courts H/M DIS-BENEFITS Negative impacts that are likely to occur as a direct consequence of implementing this option. None have been identifiedSubstantial disruption will occur during the construction period The old heritage courthouse will be a continued financial burden on government Closure of the existing court complex will impact the local economy and may threaten the viability of Noojee Transfer of hearings may impact on the community Ranking 13 2 STEP 3 - Evaluate Strategic Options OVERALL ASSESSMENT Option 3 is the preferred option. This option would deliver most of the benefits sought but at significantly less cost than the Option 4 which would deliver the full benefits. The viability of Option 3 is dependent upon the availability of a suitable site and the extent of the dis-benefit (disruption during a long construction period). Option 6 provides local access to alternative dispute resolution and therapeutic services utilising the existing asset. This provides a substantial proportion of the benefits sought. RECOMMENDATION That Option 3 proceed to a full study to validate that the assumptions made in this document are valid. Option 4 and 6 should also proceed to further analysis in the case that the assumptions made in relation to Option 3 change significantly during further study. 41

42 …and the investment story continues

43 The ‘informed discussions’ (workshops) Define the problem/s that need to be addressed Validate the problem is real Specify the benefits that will result from addressing the problem Identify the KPIs, measures and targets that any investment will need to deliver Specify how the delivery of the benefits will be measured and reported Explore the interventions that might be taken to address the problem and deliver the benefits Identify and evaluate a mix of strategic responses Identify project options that could implement the strategic response Decide and scope the one considered most suitable

44 …and the investment story is complete

45 An Investment Concept Brief is developed based on the preferred solution

46 Functions supported… Shape a new investment Prioritise investment proposals Monitor and measure the delivery of benefits Evaluate a program of investment Develop new policy Improve an organisation’s focus and effectiveness Monitor an organisation’s outcomes

47 ITS IMPACT

48 Changes the way people think about investments (moved from funding to investing) Provides a line-of-sight between good policy and its implementation Brings everybody on the same page Focuses on what really matters Makes investments accountable for the benefits they are expected to deliver This all results in better government ….and substantial cost savings What impact is it having?

49 GETTING STARTED how people and organisations can adopt it

50 Contact Details / Useful websites Investment Management Team p (03) e Investment Management Website Investment Lifecycle Guidelines Website Gateway Review Process Website

51 Investment Management website (www.dtf.vic.gov.au/investmentmanagement) The Practices Understand how the practices can support the needs of your organisation Support in adopting the practicesthe practices Obtain information and training that will enable you to apply the practices within your organisation Theory behind the Investment Management Standardapply the practices Acquire a deeper understanding of the history and theory that underpins the standard Support for facilitatorstheory Obtain information on how to become accredited and practice as an accredited facilitatoraccredited and practice

52

53

54

55

56 SEEKING NEW INSIGHTS your observations and wisdom

57 ….enabling us to make a real difference

58 16Questions …Investment Decision-makers’ Checklist (draft version 5)

59 The ‘PLUS’ questions that assess the deliverability of major investments


Download ppt "The Investment Management Standard Information Session …. doing the things that matter most."

Similar presentations


Ads by Google