Better Business Cases Detailed 2012

Better Business Cases Detailed 2012

Agenda Overview Context: Capital Asset Management
Why, when it applies, and what is expected The 5 Case Model The process Who is involved early Where to get support UK Lessons Learnt More about the 5 Case Model More about the process Business case deliverables Strategic Assessment Programme Business case Indicative Business case Detailed Business case Implementation plan

Overview

Context: Capital Asset Management
The Capital Asset Management (CAM) Framework was endorsed by Cabinet 2008 Better Capital Planning-early visibility of decisions needed Better Business Cases (BBC)-good information to inform decisions Better Monitoring and Assurance Better Reporting Focussed first on Better Capital Planning, based on Policy and strategy. Then focused on BBC, adapted from international good practice from: Victoria (Australia) for Investment Logic Mapping for early problem definition and benefit identification UK for 5 Case Model and staged BBC approach Currently reviewing Monitoring and Assurance

Why better business cases?
Better business cases lead to: better decisions better investments achievement of better outcomes.. Key stakeholders include: Decision makers- better evidence-based assurance value for money Management-early engagement on direction Business case developers-clear expectations and support Reviewers-early engagement and common language Private sector service providers-early market soundings and clearly specified service requirements

Overview: When does it apply?
All capital proposals from Departments, Crown Agents and other Crown Entities, which meet one or more of the following criteria: Access to new Crown funding Public Private Partnerships (excluding other Crown Entities) $25 million whole-of-life cost (Departments only) “High risk” per Risk Profile Assessment (Departments/Crown Agents only) Asset disposals with significant policy decisions Also being used by the Canterbury Earthquake Recovery Authority to Inform investment decisions on the Recovery Strategy. Consider using as a good practice approach to inform decision making

Overview: What is expected?
If a proposal requires approval: Two-stage process for high risk and/or large scale projects Stage 1: Based on the Indicative Business Case Stage 2: Based on Detailed Business Case Single stage process for non high risk/low scale Application of the 5 case model Potential use of Programme Business Case if the project/s are part of a wider programme The process is about thinking not writing

The 5 Case Model Any business case addresses 5 key questions:
Is there a compelling case for change? Does the selected option optimise public value? Is the potential Deal achievable and attractive to the market place? Is the spending proposal affordable? How will the proposal be delivered successfully? 8

The 5 Case Model The 5 key elements of good practice business cases
Applicable - strategic fit & business needs Strategic Achievable – can be successfully delivered Management Economic Appropriate – optimises public value Financial Commercial Affordable – within budget Attractive – to supply side and feasible 9

How it works ? (the process)
Programme Strategic Assessment Problems Benefits Based on Victoria ILM Programme Business Case Strategic fit. Best public value programme and mix of projects. Affordable . Stakeholders do the thinking together Project Strategic assessment Problems Benefits Based on Victoria ILM Project Indicative Business case Strategic fit. Best public value long to shortlist of 5 options. Preferred option attractive to supply side (non-traditional procurement), affordable and achievable. Project Detailed Business case Revisit strategic fit. Best public value option of the short list. For preferred option prepare for the deal , ascertain affordability and plan for delivery. Project Implementation plan Revisit strategic fit and best public value option. Contracting for the deal. Ensuring successful delivery.

Who needs to be involved early?
The Better Business Cases process is most successful when: Agencies engage with central and monitoring agencies (reviewers) in the early stages of each business case deliverable to ensure the business case will be fit for purpose. Agreement will be sought on: Type of business case Timing and nature of decisions required Scale and risk of the proposal Scope of analysis required for each case-including reviewers criteria/evidence Level of effort and cost for development and assurance Scope of the engagement during the development of the business case Use the scoping document to secure early agreement

Where to get support Treasury provides the following support:
Products (overview) Quick Reference Guide Power point presentation Online module (website only) Overview booklet (including scoping document) Products (detail) Guidance booklets for each type of business case Templates for each type of business case (word doc’s and A3 presentations) List of agency business case examples (public sector intranet only) Training (Monthly in Auckland, Wellington, Christchurch from August) One hour Awareness seminar for senior managers Half day knowledge based training “Foundation Course” Full day skills based “Practitioners Course” and Reviewers Course” Communities of practice to exchange experiences with peers A review is performed early each calendar year and a revised version published in July

Enhancements planned for July 2012
Revisit brand so it differentiates between who owns BBC and who can use BBC, Make guidance more generic and applicable to a wider range of applications, Reinforce importance of investment objectives, options and realistic do minimum, Redefine the value propositions by stakeholder group, Better demonstrate the flexibility and scalability, Demonstrate how the feasibility study, design, develop etc process aligns , Place more prominence on early engagement with reviewers (scoping document), Improve how best to use the workshops to engage stakeholders during process, Only require first two ILM workshops (problems and benefits) for strategic assessment

UK Lessons Learnt

Lessons from the UK

Lessons from the UK (ctd)
Where we started, some common problems… £ billions of invested without effective business cases Solution based, not needs based investment Retrospective approvals – spend then ask Lack of interrogation – ask then get Budgeting to availability, not need – get then spend Negotiations seen as barrier to delivery – spend then go Management of delivery weaknesses – go wrong… Sceptical Treasury Low value investment

Lessons from the UK (ctd)
The introduction of a structured methodology to develop and present business cases (5 Case Model) has resulted in: Greater strategic alignment Reduced cost (40%) Improved efficiency and throughput Improved outcomes Lower delivery risks Better evidenced VfM Realistic and achievable “do minimums”

Lessons from the UK continued
5 case model in action Wales: 21st Century Schools Programme 22 Local Authorities, 1800 schools 20%+ surplus places £4Bn+ backlog maintenance Drip feed funding to all (whether they needed it or not…) Low National government – local government trust

5 case model in action Wales: 21st Century Schools Programme One National programme Multi-decade £6 billion investment Co-owned by Local and National government High trust (plan and wait your turn)

5 case model in action Wales: 21st Century Schools Programme Impact of embedding 5 case model: Strong strategic alignment, within projects, programmes, portfolios Rigorous option analysis – ‘do minimums’ Maximise funding efficiency £bns commercial negotiations- milk the supply chain Infrastructure delivery excellence

Key cultural changes Strategic clarity Shared ownership between stakeholders, understanding respective roles eg Funder Deliverer Asset owner Actively plan, oversee and amend at all stages Understand who benefits and how Live within means and get as much as possible Scrutiny, assessment & oversight is an investment Love your delivery chain – maximise the value of your contracts Deliver superbly

More about the 5 case model

The 5 Case Model Addresses 5 key questions
Is there a compelling case for change? Does the selected option optimise public value? Is the potential Deal achievable and attractive to the market place? Is the spending proposal affordable? How will the proposal be delivered successfully? 23

The 5 Case Model The 5 key elements of best practice business cases
Applicable - strategic fit & business needs Strategic Achievable – can be successfully delivered Management Economic Appropriate – optimises public value Financial Commercial Affordable – within budget Attractive – to supply side and feasible 24

The five case model Strategic Case
Strategic Context Organisational Overview National Policies & Strategies Local & Organisational Strategies

The five case model Strategic Case
Case for change Investment Objectives – SMART Existing Arrangements – Current arrangements Business Needs – Problems Potential Scope – Solutions Main Benefits – by stakeholder group Key Risks – business & service Constraints and Dependencies

Strategic Case Investment Objectives
The five case model Strategic Case Investment Objectives Economy Efficiency Effectiveness Re-procurement Statutory Compliance

The five case model Economic Case
Critical success factors Options - Long list Options - Short-list Identify Preferred Option Cost Benefits Analysis (CBA) Risk Analysis $ Sensitivity Analysis

Critical Success Factors
The five case model Critical Success Factors Strategic fit Business Needs Benefits Optimisation Supply-side capacity and capability Potential Achievability Potential Affordability

Economic Case - Options
The five case model Economic Case - Options Long-list (12) - Preferred way Forward (PSC) Investment Objectives Critical Success Factors (CSFs), inc. benefit criterion Short-list (5) – looking for Preferred Option Costs, benefits and risks $ Sensitivity analysis

The five case model Options Framework
Scope (coverage: who, what, where etc) Service Solution - (how: technical) Service Delivery - (who: provider) Implementation - (when: phasing & time) Funding (how: $) Preferred Way Forward

The five case model Economic Appraisal
Do Nothing/Min Option 2 – PWF Option 3 – Other Option 4 - Other Preferred Option Cost Benefit Analysis Qualitative Benefits (rank, weight, score) Risk Quantification (£ or rank/weight) Sensitivity Analysis (switching values etc)

The five case model Commercial Case
Procurement Strategy Scope and related services Risk transfer Charging/payment mechanism Key contractual clauses & length Personnel implications (TUPE) Supplier’s implementation time-scales Accountancy treatment (FRS 5)

The five case model Financial Case
Capital and revenue requirements Net effect on prices Impact on Balance Sheet Impact on Income and Expenditure Account Overall Funding and Affordability

The five case model Management Case
Project management planning Change management planning Benefits management planning Risk management planning Post evaluation planning

More about the process

The Process: starting with a capital plan

Fit with Portfolio management
Governance Strategy Categorise Understand Prioritise Portfolio definition Funders Portfolio management Plans Balance Plan Organisational energy Organisations charged with delivery Programme management Activities Portfolio delivery Project management Service providers

Strategic Assessment Better Business Cases for Capital Proposals Toolkit: Strategic Assessment

Strategic assessment What is it for? When is it needed?
What is involved? Either at project or programme level Refer to the BBC Toolkit: Strategic Assessment booklet available on:

Strategic assessment Strategic Case-Making the Case for Change
Action 1: The case for change Identify the core reason that underpins the service need by identifying : the problem? the best strategic response? benefits that need to be delivered? Stakeholders do the thinking together in three two hour workshops led by an “Investment Logic Mapping” ILM facilitator The next two slides deal with this

Programme Business Case Better Business Cases for Capital Proposals Toolkit: Programme Business Case

Programme business case
What is it for? When is it needed? What are the actions? Refer to the BBC Toolkit: Programme Business Case booklet available on: businesscase

Strategic Case-Making the Case for Change Action 2: Strategic Context Action 3: Investment Objectives, existing arrangements and business needs Action 4: Potential business scope Action 5: Benefits, risks, constraints and dependencies Stakeholders do the strategic case thinking together in a two hour workshop led by a facilitator. The next two slides deal with this

Economic case Identifying and assessing the main programme options (key trade offs) for delivering required services (scope, service solution, service delivery , implementation, funding) Commercial case Likely attractiveness to potential service providers (high level consideration of alternative procurement) Management Case Based on the preferred programme option determine the mix of projects, the dependencies, tranches and bundles Financial case Determine rough order costs and potential funding sources Stakeholders do the economic case thinking together in a workshop led by a facilitator The next two slides deal with this Stakeholders do management case thinking together in a workshop led by a facilitator

Project Indicative Business Case Better Business Cases for Capital Proposals Toolkit: Indicative Business Case

Indicative business case
What is it for? When is it needed? What are the actions? Refer to the BBC Toolkit: Indicative Business Case booklet available on: Strategic assessment Action 1 Indicative business case Actions 2-8 Detailed business case Actions 9-24 Implementation plan Actions 25-35

Strategic Case-Making the Case for Change Action 2: Strategic context Demonstrates alignment with organisation’s, government’s priorities and goals Stakeholders do the entire strategic case thinking together in a two hour workshop led by a facilitator. Strategic assessment Action 1 Indicative business case Actions 2-8 Detailed business case Actions 9-24 Implementation plan Actions 25-35

Strategic Case-Making the Case for Change Action 3: Investment objectives, existing arrangements and business needs Existing arrangements-where the organisation is now Business needs-Difference between where the organisation wants to be and where it is highlighting problems, difficulties and inadequacies and future changes in the demand for services SMART Investment objectives that clearly relate to action 2 and are either about improving effectiveness, efficiency, or reducing cost, or are for re-procurement ,or to meet a regulation Action 7 to assess each of the long list of options against theses investment objectives Strategic assessment Action 1 Indicative business case Actions 2-8 Detailed business case Actions 9-24 Implementation plan Actions 25-35

Strategic Case-Making the Case for Change Action 4: Key service requirements potential business scope Set out the boundaries or limitations Highlight the required services Forms the basis of the ‘statement of needs’ or ‘statement of service requirements’ Strategic assessment Action 1 Indicative business case Actions 2-8 Detailed business case Actions 9-24 Implementation plan Actions 25-35

Strategic Case-Making the Case for Change Action 5: Benefits, risks, constraints and dependencies Basis for option selection and evaluation Benefits: Direct/indirect, monetary/non-monetary and quantitative/qualitative Measure against relevant benefits criteria Risks : Identify sources, impacts and potential consequences Emphasis on 20% of risks which will account for 80% of the total risk Constraints Dependencies Strategic assessment Action 1 Indicative business case Actions 2-8 Detailed business case Actions 9-24 Implementation plan Actions 25-35

Economic Case-Exploring the Preferred Way Forward Action 6: Critical success factors Attributes essential to successful delivery of the proposal Crucial and set at a level which does not exclude important options Assess each option against these factors, the investment objectives and the benefits criteria Strategic assessment Action 1 Indicative business case Actions 2-8 Detailed business case Actions 9-24 Implementation plan Actions 25-35

Economic Case-Exploring the Preferred Way Forward Action 7: Long-list options and initial options assessment Consider all realistic options within each dimension Consider the options against the investment objectives and critical success factors Dimensions Details Scale, scope and location What levels of coverage are possible? Service solution How can services be provided? Service delivery Who can deliver the services? Are there alternative procurement options for the delivery of public services? Timing and staging When can services be delivered? Funding How can it be funded? Are there alternative procurement options funding? Stakeholders do the economic case (and action 6) thinking together in 2 two-hour workshops led by a facilitator and a procurement expert. Prepare long list Assess long list to short list (Consider inclusion of industry) Strategic assessment Action 1 Indicative business case Actions 2-8 Detailed business case Actions 9-24 Implementation plan Actions 25-35

Alternative procurement relationship spectrum
Distant? Close? Adversarial Arm’s length Transactional Tactical Single sourced Outsourced Co-dependent Partnership Alliance Information exchange Trust Openness Commitment Duration Establishment Risk assessment Risk management Approach Immediate Planned Short Deal focus Poor Reactive Low Rarely done Separate Long Strategic Mutual value Good Forward thinking High Joint Shared Engagement Last Minute Early There is no “silver bullet” in procurement and project management; the type of relationship you need, want and actually end up with has many dimensions… and one real dependency – THE PEOPLE. In the absence of a good collaborative environment it is [almost] impossible to deliver any programme/project successfully Creating an environment for closer working relationships is vital, particularly given the challenge you all face. Factors that affect the relationship include: How clearly can the outcome be defined? How clearly is the scope defined? How well understood are the service requirements? What level of involvement is needed as a client, as a supplier? What level of cost control / certainty can be tolerated How quickly does this need to happen? Is the a one-off or recurrent? How easy would it be to break into stages? How does it fit together with other programmes/projects? What are the dependencies? What level of risk are you willing to tolerate? Who has the best experience in this space? What lessons can you learn from history? What went well? What could have gone better?

The long list of options (example)

Commercial, Financial and Management Cases (Outline) Action 8: Recommended preferred way forward, if conventional procurement At least three short-listed options, including a base case option Provide range of indicative cost estimates for each short-listed option Make allowance for optimism bias Strategic assessment Action 1 Indicative business case Actions 2-8 Detailed business case Actions 9-24 Implementation plan Actions 25-35

Commercial, Financial and Management Cases (Outline) Action 8a to d: Recommended preferred way forward, if alternative procurement is part of the short-listed options Action 8a: Joint Ministers approve to proceed with more detailed economic assessment of the short-listed options Action 8b: Undertake detailed economic analysis Action 8c: Approach the market Action 8d: Recommend preferred option with other procurement options for further assessment in DBC proceed to DBC Strategic assessment Action 1 Indicative business case Actions 2-8 Detailed business case Actions 9-24 Implementation plan Actions 25-35

Project Detailed Business Case Better Business Cases for Capital Proposals Toolkit: Detailed Business Case

Detailed business case
What is it for? When is it needed? What are the actions? Refer to the BBC Toolkit: Detailed Business Case booklet available on: Strategic assessment Action 1 Indicative business case Actions 2-8 Detailed business case Actions 9-24 Implementation plan Actions 25-35

Strategic Case (Revisit) Action 9: Revisit the indicative business case Strategic case Note changes made to underlying assumptions Economic case Review the long-list and preferred way forward Consider impact of changes to the assumptions Review the case for change and consider changes since the indicative business case was developed. This revisits the strategic and economic cases for change. Strategic case: -Note the changes made to the underlying assumptions in the indicative business case. -This could be due to conditions made as part of IBC, external stakeholders influencing the direction of the proposal, and/or other elements changing during the time elapsed since stage 1 approval . Economic case: -Review and refine earlier work on the long-list and the preferred way forward. -If there have been any changes in the underlying assumptions since the initial options assessment, consider whether any of the short-list options are: •likely to fail to deliver the investment objectives and critical success factors •likely not to deliver sufficient benefits •clearly impractical or unfeasible •clearly inferior to another option •likely to violate any of the constraints •clearly too risky. •All changes made to underlying assumptions should be noted within the opening section of the economic case. Strategic assessment Action 1 Indicative business case Actions 2-8 Detailed business case Actions 9-24 Implementation plan Actions 25-35

Economic case Action 10: Economic assessment of the short-listed options or preferred alternative procurement option Identify and monetise costs and benefits from Indicative Business Case use cost-benefit analysis (CBA), from national perspective, to assess options Action 11: Intangible benefits and costs Identify and explain intangible costs and benefits from Indicative Business Case If quantitative and/or, qualitative use multi-criteria analysis (MCA) to assess options Or describe those that cannot be monetised or quantified Stakeholders do the economic case thinking together in a two hour workshop led by a facilitator. Strategic assessment Action 1 Indicative business case Actions 2-8 Detailed business case Actions 9-24 Implementation plan Actions 25-35

Economic case Action 12: Risk and uncertainty Consider using quantitative risk analysis to understand the range of uncertainty inherent within the cost/benefit analysis Complete the risk assessment: -This is the overall process of risk identification, risk analysis/risk evaluation. -Review the risks identified in action 5. -Use AS/NZS ISO 31000:2009 and ISO/IEC for further guidance. -Tailor the extent of risk analysis to the relative size, impacts and risks Complete the quantitative risk analysis: -This ensures risks, and their financial impact, are explicit to decision-makers. -Financial and non-financial impacts must also be considered. -Once the risk is known, contingency amounts can be identified. -Quantitative risk analysis includes detailed sensitivity analysis and analysing the likely effect of scenarios. -It involves assessing each probability & modeling how the total project will turn out. -This will produce an estimated probability distribution of likely total costs. --The risk modelling process involves - building the models, including distributions for uncertain inputs, simulating outcome distributions, generating outcome graphs and tables, and reviewing and revision as necessary. -This should only be performed by an accredited expert. Strategic assessment Action 1 Indicative business case Actions 2-8 Detailed business case Actions 9-24 Implementation plan Actions 25-35

Economic case Action 13: Preferred option and undertake sensitivity analysis Identify the preferred option Fully involve stakeholders Use sensitivity analysis to test robustness of the options analysis Make it clear to decision makers the assumptions and sensitivities of the assumptions Strategic assessment Action 1 Indicative business case Actions 2-8 Detailed business case Actions 9-24 Implementation plan Actions 25-35

Analysis of the short-listed options
Option 1: Do Nothing Option 2: Do Minimum Option 3: Preferred Minus Option 4: Preferred Way Forward Option 5: Preferred Plus Appraisal Period (years) 20 Capital Costs ($m) 0.0 22.5 23.9 31.6 45.7 Whole of Life Costs ($m) 14.4 24.2 49.7 70.7 90.9 Cost-Benefit Analysis of monetary costs and benefits at the Public Sector Discount Rate Present Value of Benefits ($m) 2 25 75 115 126 Present Value of Costs ($m) 7 23 40 52 73 Benefit Cost ratio 0.3:1 1.1:1 1.9:1 2.2:1 1.7:1 Net Present Value (NPV, $m) (5) 35 63 53 Multi-Criteria Analysis ranking of intangible costs and benefits (if any) Criteria 1 1 3 5 Criteria 2 4 Criteria 3 Preferred option Yes

Commercial case – Preparing for the Potential Deal Action 14: Procurement strategy Focus on how to procure the required services of the preferred option Strategic assessment Action 1 Indicative business case Actions 2-8 Detailed business case Actions 9-24 Implementation plan Actions 25-35

Commercial case – Preparing for the Potential Deal Action 15: Service requirements Scope and content of the potential deal Specify desired outcomes and outputs Specify quality attributes and performance measures Allow scope for service provider innovations Action 16: Risk allocation Consider how risks are apportioned between the public and private sectors Allocate risk to the party best able to manage it Incentives for the private sector to supply timely, cost-effective and innovative solutions Strategic assessment Action 1 Indicative business case Actions 2-8 Detailed business case Actions 9-24 Implementation plan Actions 25-35

Commercial case – Preparing for the Potential Deal Action 17: Payment mechanisms Reflect the balance between risk and return Relate payment to delivery of service outputs and performance of providers Incentivise providers in three stages Pre-delivery stage Operational stage Extension stage Strategic assessment Action 1 Indicative business case Actions 2-8 Detailed business case Actions 9-24 Implementation plan Actions 25-35

Commercial case – Preparing for the Potential Deal Action 18: Contractual and other issues Contractual arrangements for the procurement Identify standard form of contract used Provide details of the accountancy treatment Identify any personnel implications to the investment proposal Financial case – Ascertaining Affordability and Funding Requirements Action 19: The financial costing model Consider Crown-related cash flows and accounting charges Specialist accounting capability required Detail the capital and revenue requirements for the preferred option Compare prices and quality levels of services offered by providers Strategic assessment Action 1 Indicative business case Actions 2-8 Detailed business case Actions 9-24 Implementation plan Actions 25-35

Management case – Planning for Successful Delivery Action 20: Project management planning Strategy Based on best practice programme management principles and project methodologies Framework Summarise how the project is organised including structure, reporting and governance Plan Address deliverables, activities, resources, dependencies and reviews Strategic assessment Action 1 Indicative business case Actions 2-8 Detailed business case Actions 9-24 Implementation plan Actions 25-35

Management case – Planning for Successful Delivery Action 21: Change management planning Strategy – assess the potential impact of proposed changes Plan – provided for significant change management programmes Action 22: Benefits management planning Management arrangements to ensure that expected benefits are monitored and realised Strategy – arrangements for identification of benefits, their planning, modelling and tracking Framework – assigns responsibilities for realisation of benefits Benefits register – details significant benefits expected as part of the economic case Strategic assessment Action 1 Indicative business case Actions 2-8 Detailed business case Actions 9-24 Implementation plan Actions 25-35

Management case – Planning for Successful Delivery Action 23: Risk management planning Risk mitigation can lower the expected costs Strategies: Identify risk and put response mechanisms in place Create processes to monitor and report risks Create an issues log Risk management: Establish a risk management framework Senior management support, ownership and leadership Communication of risk management policies Embed risk management into business processes Strategic assessment Action 1 Indicative business case Actions 2-8 Detailed business case Actions 9-24 Implementation plan Actions 25-35

Management case – Planning for Successful Delivery Action 24: Post-project evaluation planning Strategy: Improves project evaluation Determines whether project has delivered improvements and benefits Outlines the strategy for both aspects of post-project evaluation Framework – management arrangements to ensure that the evaluation takes place Plan – timing for post-project evaluation arrangements Strategic assessment Action 1 Indicative business case Actions 2-8 Detailed business case Actions 9-24 Implementation plan Actions 25-35

Project Implementation Plan Better Business Cases for Capital Proposals Toolkit: Implementation Plan

Indicative business case Detailed business case
Implementation plan What is it for? When is it needed? What are the actions? Refer to the BBC Toolkit: Implementation Plan booklet available on: Strategic assessment Action 1 Indicative business case Actions 2-8 Detailed business case Actions 9-24 Implementation plan Actions 25-35

Implementation plan Strategic and Economic Case (Revisit) Action 25: Revisit the case for change Revisit the strategic case – some aspects may have altered If not, note in the implementation plan If changes have occurred, identify: strategic context agreed investment objectives business needs earlier scope and service requirements benefits, costs, risks, dependencies and constraints If changes are major, effects may require following-up throughout the entire case Strategic assessment Action 1 Indicative business case Actions 2-8 Detailed business case Actions 9-24 Implementation plan Actions 25-35

Implementation plan Strategic and Economic Case (Revisit) Action 26: Revisit the detailed business case options Demonstrate that conclusions of the economic assessment remain valid Update business case for any changes May impact on ranking and selection of options If alternative option is recommended, demonstrate that it offers better value for money Commercial case – Preparing for the Potential Deal Action 27: Evaluation of best and final offers Include an outline of the assessment of service provider proposals Explain any changes Record the basis on which the providers were selected and discarded Strategic assessment Action 1 Indicative business case Actions 2-8 Detailed business case Actions 9-24 Implementation plan Actions 25-35

Implementation plan Commercial case – Preparing for the Potential Deal Action 28: The negotiated deal and contractual arrangements Overview of preferred service provider deal Explain the: service streams and outputs implementation timescales allocation of risk between the organisation and preferred provider underpinning method of payment type of contract used and the key contractual issues accountancy treatment of the negotiated deal personnel implications Strategic assessment Action 1 Indicative business case Actions 2-8 Detailed business case Actions 9-24 Implementation plan Actions 25-35

Implementation plan Financial case – Ascertaining Affordability and Funding Requirements Action 29: Financial implications of the deal Explains the financial implications to the organisation of the negotiated deal Layout follows the standard headings for the financial case Explain: how the charges have been modelled capital and revenue implications net effect on user charges impacts on financial statement overall affordability and funding arrangements Strategic assessment Action 1 Indicative business case Actions 2-8 Detailed business case Actions 9-24 Implementation plan Actions 25-35

Implementation plan Management case – Planning for Successful Delivery Action 30: Finalise project management arrangements Revisit and update the project management arrangements Support of the design, build and implementation stages Latest version of the project plan should be attached Action 31: Finalise change arrangements Revisit and update the change management arrangements and strategy Latest version of the change management plan should be attached Signed off by stakeholders for the services and indicate customer Action 32: Finalise benefit management Revisit and update the benefits realisation arrangements Strategy for realisation of benefits should be revisited and re-affirmed Strategic assessment Action 1 Indicative business case Actions 2-8 Detailed business case Actions 9-24 Implementation plan Actions 25-35

Implementation plan Management case – Planning for Successful Delivery Action 33: Finalise risk management Revisit and update the risk management arrangements Revisit the strategy for the management of risks Action 34: Finalise contract arrangements Outline the arrangements in place to manage contract change Consider the strategy for managing future contractual change Arrangements should be noted in the implementation plan Action 35: Finalise post-project evaluation arrangements Revisit and update the post-project evaluation arrangements Record arrangements for future SSC Gateway Reviews at reviews 3, 4 and 5 Record the arrangements for post-project evaluation Strategic assessment Action 1 Indicative business case Actions 2-8 Detailed business case Actions 9-24 Implementation plan Actions 25-35

Better Business Cases Detailed 2012

Similar presentations

Presentation on theme: "Better Business Cases Detailed 2012"— Presentation transcript:

Similar presentations

About project

Feedback

Log in

Auth with social network:

Better Business Cases Detailed 2012

Similar presentations

Presentation on theme: "Better Business Cases Detailed 2012"— Presentation transcript:

Similar presentations

About project

Feedback