© The Treasury 1 Better Business Cases Investing for change Seminar August 2012

2 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

3 Background Better informed decisions on investments What makes successful projects and programmes ?

4 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? Overview

5 Any business case addresses 5 key questions: The 5 Case Model 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?

6 Management The 5 key elements of good practice business cases The 5 Case Model FinancialCommercial Economic Strategic Compelling case for change - strategic fit & business needs Preferred option optimises value for money Commercially viable Affordable within available funding Achievable and can be successfully delivered

7 The pathway of the phased BBC process can be used to select which type of business case best delivers the required decision/s Confirm supplier offering best value, detailed commercials, confirm affordability. detailed management and delivery arrangements Implementation Business Case SECFM Confirm best value for money option, outline potential deal and delivery plan, assess affordability. Detailed Business Case SECFM Confirm way forward with short-listed options (consider non-traditional procurement) Indicative Business Case SECMF Confirm fit with strategy and need to invest Strategic Assessment Portfolio or programme S Confirm case for change, preferred programme, project tranches, funding Programme Business Case SEC F M Project/s (Large scale and/or high risk) Strategic Assessment S Confirm fit with strategy and the need to invest Single Stage Business Case SECFM Planning and scoping Strategic Assessment S Project/s (Other) The level of emphasis of each of the five cases depends on the type of business case

8 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

9 How the BBC guidance can be tailored 1 Which Business Case documents will be completed – the pathway Scoping document used: Programme Cover Sheet Project Cover Sheet 2 What analysis and engagement is appropriate to develop the specific business case Scoping document used: The specific business case scoping document Project Strategic Assessment Indicative Business Case Detailed Business Case Implementation Business Case Project Confirm fit with strategy Agree shortlisted options Approve delegation and funding Approve contracts SECFMSSECFMSECFM Programme Strategic Assessment Programme Business Case Portfolio or programme Confirm fit with strategy Approve affordable/best value programme and projects SECFMS SECFM Single Stage Business Case Project Strategic Assessment S

10 Products, training, support and ongoing development Products on the website Training and Support available through the website Version 3 released 6 th 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

© The Treasury 11 Guest speaker

© The Treasury 12 Questions