Better business cases overview presentation - 5 Case Model

1
© 2014 copyright of Training ByteSize unless otherwise stated.
Martyn Kinch –TrainingByte Size Ltd

3
Training Bytesize
Martyn Kinch
martyn@trainingbytesize.com
01270 610352
07850 202444
martynjkinch

4
Who Are Training Bytesize:
•Project Management Translation projects
•Español, français, Deutsch, Polski, العربية
•Preferred PM Training suppliers to:
•Top Tier Trainers and Great Customer Service
•Family run business with a passion for trainingin project management
•Over 350 Exams a month now taken through TBS
•New Office in Australia, partners in Germany, Spain, France and Poland

5
Courses Include
Courses available as Classroom
Blended or Online:
PRINCE2
Agile
Better Business Cases
Managing Benefits
Business Analysis
Change Management (2015)
APM-IC
APMP
APM PQ (2015)
APM Risk Level 1
Green Project Management

6
“Publicsectorinvestvastsumsofmoneyeachyearonneworreplacementassetssuchasbuildings,equipmentandfacilities.
WithsomuchdemandforCapitalInvestmentitisessentialthatwemaketherightchoicesanddemonstratevalueformoney”

7
The Five Case Model (from HM Treasury)
A framework for ‘thinking’ to help answer three basic questions
‘where are we now?’,
‘where do we want to be?’ and
‘how are we going to get there?’
A step by step guide to developing a business case by:
•Establishing a clear need for intervention -the case for change.
•Setting clear objectives –desired outcome
•Considering a wide range of potential solutions -an optimal balance
of benefits, cost and risk.
•Putting the arrangements in place to successfully deliver the proposal. Successful execution
The process is about
thinking not writing

8
UK Projects
“Study of government projects reveals $4billion in wasted efforts as a result of failed projects.
‘Only 30% of our projects and programs are successful’ -Joe Harley, programme and systems delivery officer at the Department for Work and Pensions.”
Source :Guardian Newspaper (UK) Scope :Investigation into government waste in the UK since year 2000Date :5 Jan 2008
“© The APM Group Ltd. 2014. All rights reserved.”

9
Why Better Business Cases?
•In The UK:
–Over 900 public Sector Organisations each procure around 30 key investments a year
–Equates to around 27,000 business cases p.a.
–Conservative cost of around £50,000 average cost each
•Over £1.35 billion spent on Public Sector Business Cases per year
•Use of BBC guidance could reduce this by 15-25%
•Potential savings of between £200-£300 million per year

10
The BBC Programme is currently in use in:

11
Why are Business Cases important?
A business case provides decision makers and the public as well as the private sector with a management tool for transparent, evidence-based decision making.
Successful projects are a result of:
•Realistic planning
•Clear focus on end goal
•Robust implementation plan
•Consideration of associated risks

12
Management
The 5 key elements of good practice business cases
The Five Case Model
Financial
Commercial
Economic
Strategic
Applicable - strategic fit & business needs
Appropriate –optimises public value
Attractive –to supply side and feasible
Affordable – within budget
Achievable – can besuccessfully delivered

13
Strategic Context
•The spending objectives, existing arrangements and business needs. The business need is the overriding factor
•The potential business scope and key requirements
•The benefits, risks, constraints and dependencies
•Economy –to reduce costs.
•Efficiency –improving throughput and unit cost. Doing more for less.
•Effectiveness –improving quality outcomes
•Re-procurement
•Statutory Compliance
The Spending Objectives

14
Great Value for £50,000!
But Can We Afford it!

15
Short List
Long List
Preferred
Way
Forward

16
Preferred Option is best NPV
Cost Benefit Analysis to decide
best option to move forward
In too many projects people are either too optimistic in stating the benefits the project will deliver or understate the costs and risks

17

18

19
•Change Management
•Benefits Realisation
•Risk Management
•PER & PIR

20
Three Types of Business Case
1.The key purpose of Strategic Outline Case is to:
–establish the strategic context for the spending proposal;
–evidence the case for change;
–establish the preferred way forward
2.The key purpose of the Outline Business Case is to:
–revisit the SOC assumptions and main findings
–establish the preferred option
–put in place the arrangements for the procurement of the scheme
3. The key purpose of the Full Business Case is to:
–revisit OBC assumptions and main finding;
–evidence that the most economically advantageous tender (MEAT) for the scheme has been accepted;
–establish that the management arrangements for successful delivery are in place.

21
Three Types of Business Case
1.The key purpose of Strategic Outline Case is to:
–establish the strategic context for the spending proposal;
–evidence the case for change;
–establish the preferred way forward
2.The key purpose of the Outline Business Case is to:
–revisit the SOC assumptions and main findings
–establish the preferred option
–put in place the arrangements for the procurement of the scheme
3. The key purpose of the Full Business Case is to:
–revisit OBC assumptions and main finding;
–evidence that the most economically advantageous tender (MEAT) for the scheme has been accepted;
–establish that the management arrangements for successful delivery are in place.

22
10 Key Steps

23
10 Key Steps -Continued

24
Benefits
For Organizations:-
•Reduction in unnecessary spending and consultancy costs.
•A process and guidance designed to optimize value from change initiatives.
•A clear, proportionate approval process and improved, more informed decision making.
•Complements existing best practice
•Short courses minimize disruption to business as usual.
For Individuals:-
•Improved understanding of the Better Business Cases process, relevant not only to those producingbusiness cases and spending proposals, but also those reviewing.
•Understanding of an established and proven methodology which can be applied at both strategic (macro) and tactical (micro) levels.
•Recognized certification for a core business competency for so many in mid and senior management roles.

25
Courses and Qualifications
•Foundation Course and Exam
–Online or Classroom course 2 days followed by optional closed book exam
–Closed book, multiple choice, 50 questions
–50% pass mark 40 minutes duration
•Practitioner Course and Exam
–Classroom course 3 days followed by an exam on day 3
–Open book exam
–4 questions per paper, with 20 marks available per question
–50% pass mark 2 ½ hours duration
•Reviewer Course
–Under development/discussion

26
Conclusion
Better Business Cases lead to:
Better decisions, better investments & achievement of better outcomes.
“If Applied with common sense and proportional effort relative to the size of the project why wouldn’t you use BBC Guidelines – Public or Private?”
Treasury now insists on BBC framework on all Business Cases
Outside Contracting Organisations are skilling up
Contractors and Consultants will need to show the knowledge
Which will lead to adoption in the Private Sector

27
Any questions

28

Better business cases overview presentation - 5 Case Model

Recommandé

Recommandé

Contenu connexe

Tendances

Tendances (20)

En vedette

En vedette (8)

Similaire à Better business cases overview presentation - 5 Case Model

Similaire à Better business cases overview presentation - 5 Case Model (20)

Plus de Training Bytesize

Plus de Training Bytesize (6)

Dernier

Dernier (20)

Better business cases overview presentation - 5 Case Model