Ambition in Action

Ambition in Action Preparing and Presenting an Effective Business Case Presentation to HIMAA July 2010

Ambition in Action Overview of Session: /What is a business case? /Why develop a business case? /What goes into a business case? /Presenting your business case /Summary

Ambition in Action What is a business case? “ a business case is a proposal document or presentation that details the business reasons for initiating a project. It provides senior management with the facts and figures they need to make an informed decision about whether the project should be given a green light to go ahead.” Examples: staffing, major acquisitions, digitisation, cataloguing systems

Ambition in Action The Business case should answer these questions: What is the project? Description Value Proposition Likely impacts Who are the stakeholders How Much value will it create? NPV of the investment Resulting time-phased cash flow impact IRR and payback period What will it take to implement? What operational changes are necessary to achieve the desired financial benefits

Ambition in Action Why is a business case necessary? Advantages of creating a business case Creates discipline Provides control Minimizes risk Establishes direction

Ambition in Action Preparing the Business Case: /Use your organisation’s methodology which will include: /Evaluation of the significance of the project /Information on the scope/details of the project /Who will it affect? /What is the policy context? /Utilise those people who have the information and skills to supplement your business case /Optimistic or unrealistic budgets and implementation schedules can destroy the credibility of a business case

Ambition in Action Business case components: 1.Executive summary 2.Analysis of opportunity 3.Costs and benefits 4.Risks and rewards 5.Implementation plan

Ambition in Action Executive Summary: /Quick, easily understood summary of the opportunity /High level summary of the opportunity /Description of the project and resources required to implement /Summarise how the project aligns with organisational needs or strategy

Ambition in Action Analysis of opportunity: / Where are we now? /Define the core problem or business challenge /What are the various options /Summary of opportunity (value creation and value drivers) /Relevant internal and external factors

Ambition in Action Costs and benefits: /Detailed description of costs and benefits (generally quantifiable) /Initial and recurring costs and benefits /If there is uncertainty in the numbers- provide “best case”, “worst case” and “most likely” scenarios /Optimistic or unrealistic budgets can destroy the credibility of the business case

Ambition in Action Risks and rewards: /Detail non financial risks and rewards eg: impact on employees/ bottom line /Mitigation plans for risks /Can be strong factor in the success of a business case

Ambition in Action Implementation plan: /Implementation timeline, deliverables, resources /Operational changes required to achieve the final targets /Business owners and operational owners of the project /How will you recognise when the need has been met?

Ambition in Action Optional Extra: An ‘elevator pitch’ /Prepare an ‘elevator pitch’ for your proposal /Describes the benefits of your proposal in 100 words or less /May include a short slide presentation ed to key people before your presentation

Ambition in Action Presenting your business case: /Target presentation to the audience eg: language, examples /Explain the WIIFM, so focus on the benefits /Base presentation on facts and figures but do not forget the emotions /Pick other people’s brains for tips /Think about questions you may be asked and prepare answers

Ambition in Action Presenting your business case -know your reader Expressive Social/AmiableDirect DriverAnalytical DominantEasy Going Spontaneous Controlled

Ambition in Action Summary /Know your organisation /Research the issues well and discuss the proposal extensively internally /Write the business case with all costs and issues explained /The business case should include the relevant financial justifications, but not just the sole purpose of the document /The business case should address all stakeholder’s concerns from economic, social and environmental perspectives

Ambition in Action Thank you! Question Time.....