101 Foundations of Business Case Development

Copyright © 2014 Deloitte Development LLC. All rights reserved.

Course Objectives
By the end of this session, you will be able to:
• Describe the purpose, key elements, and benefits of a business case
• Describe the process of developing a business case
• Develop key elements of a business case

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 2.5 hrs
Course Agenda

Topic Time

1. Course Introduction 15 min

2. Business Case Overview 10 min

3. Developing a Business Case 05 min

4. Building a Business Case 115 min

5. Summary 05 min

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 10 min
Icebreaker (Includes debrief)

Form groups of five members each. Each group will discuss one of the following
questions:
• What is the purpose of a business case?
• What are the four advantages of building a business case?
• Why would you develop a project charter?

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Business Case Overview
• The Business Case
• Purpose of Developing a Business Case
• Key Questions on Business Case
• Business Case Components
The Business Case
A business case should be developed in the context of an overall value approach,
specifically as part of assessing client value opportunities.

Define Value Assess Value

Deliver Value
Imperative Opportunities

Understand client Identify value Develop value delivery

strategy opportunities roadmap

Analyze enterprise Develop business Measure and realize

financial performance case value

Identify key client Analyze business unit

business issues financial performance

Assess and optimize

Define value targets
project portfolio

Model future value

scenarios

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Purpose of Developing a Business Case
A business case is an integral part of evaluating potential projects within a defined set of
options.

• To complete a rigorous analysis of a proposed project, or a series of projects,

Purpose to facilitate the client’s decision on whether the project(s) should be
undertaken

• Determine the potential value of the projects and define the costs and
expected benefits of the projects
• Determine the extent to which a given project supports the overall business
strategy of an enterprise
Key • Define the time-phased net cash flow impact, return on investment, and
Objectives payback period associated with an initiative
• Identify what changes will drive expected outcomes and provide an overview
of the value drivers tied to benefits
• Facilitate client decision making on a proposed project, or series of projects
• Tie actual outcomes / benefits to the expected benefits and track progress
during project implementation

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Key Questions on Business Case
A Business Case is an integral part of the process used to evaluate potential projects
within a defined set of options. Each business case should answer the following three
questions by accomplishing the accompanying key objectives.
Key Questions

? ? ?
What is the project? How much value will it What will it take to
create? implement?
• Determine the potential
value of the project(s) • Define the time-phased net • Identify what changes will
• Determine the costs and cash flow impact, return on drive expected outcomes
benefits of the project(s) investment, and payback and provide an overview of
period associated with a the value drivers to which
• Determine the extent to given initiative benefits can be tied
which a given project
supports the overall • Tie actual outcomes /
business strategy of an benefits to the expected
enterprise benefits and track progress
during project
implementation

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Business Case — Definition
A quantitative and qualitative analysis designed to provide a client support in making a
decision, selecting an option, or choosing a course of action. It often includes a financial or
economic model that helps to quantify the costs and benefits of a decision.

A business case is: A business case is not:

• An analysis of expected costs and • A workplan
benefits (both one-time and ongoing) • A budgeting tool or 100% accurate
for a proposed initiative or project budget
• A method of analyzing various • An exhaustive list of considerations
economic and operational variables to and risks
predict the impact on key business
drivers
• A method of logically structuring an
argument for or against a specific
course of action or decision

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Business Case Components
A complete business case should include the following components:

Executive Summary Executive Summary

• High-level summary of what is being
proposed, opportunity / project objectives,
Opportunity Analysis benefits, and investment requirements
• Description of how opportunity or project
links to strategic priorities and goals
Costs, Benefits, and Metrics • Description of key considerations and
assumptions

Risks and Derailers

High-Level Implementation Plan

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Business Case Components (Cont.)
A complete business case should include the following components:

Executive Summary Opportunity Analysis

• Summary of value created or destroyed by
opportunity or project
Opportunity Analysis • Total financial returns of opportunity or
project (NPV, IRR, Payback Period)
• Impact on financial statements and
Costs, Benefits, and Metrics metrics
• Reasonable set of alternatives
to realize the opportunity if
Risks and Derailers project not undertaken

High-Level Implementation Plan

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Business Case Components (Cont.)
A complete business case should include the following components:

Executive Summary Costs, Benefits, and Metrics

• Description and quantification of project
benefits, costs, and investment required
Opportunity Analysis • Description of key financial and
operational metrics
• Benefit, cost, and analysis assumptions
Costs, Benefits, and Metrics
• Recommended benefits tracking and
management approach

Risks and Derailers

High-Level Implementation Plan

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Business Case Components (Cont.)
A complete business case should include the following components:

Executive Summary Risks and Derailers

• Potential risks
• Costs of potential risks and derailers, if
Opportunity Analysis known
• Mitigation plans for risks / derailers

Costs, Benefits, and Metrics

Risks and Derailers

High-Level Implementation Plan

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Business Case Components (Cont.)
A complete business case should include the following components:

Executive Summary High-Level Implementation Plan

• Implementation timeline, milestones,
project deliverables, key activities,
Opportunity Analysis resources, and project tollgates
• Operational changes (people, process and
technology) required to achieve financial
Costs, Benefits, and Metrics results
• Business owners and
operational owners of the project
Risks and Derailers

High-Level Implementation Plan

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Developing a Business Case
• Advantages of a Business Case
• Potential Benefits
Advantages of a Business Case
Some of the advantages of creating a business case are:

Creates Discipline

• Creates a climate for rigorous analysis of new ideas and the ability to quantify expected
outcomes before a project is launched or implemented

Provides Control

• Allows for identification of problems and tracking of expected costs / benefits

Minimizes Risk

• Assesses the impact of the risks and rewards associated with the project

Establishes Direction

• Gives stakeholders a sense of where things are headed if projects are implemented

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Potential Benefits
There are several benefits for developing a strong business case:

Tangible Benefits Intangible Benefits

• Enable fact-based decision making • Align executives and key
and analysis to support strategic stakeholders regarding the purpose of
business objectives the project
• Help forecast the economic / financial • Help develop decision criteria that are
value created by the project aligned with strategic business
• Communicate current and proposed objectives
project investments and costs • Enable analysis to determine if
• Provide benchmarking information to decision options fit strategic business
compare internal data to best-in-class objectives
industry or targeted data • Provide understandable results to
support initiatives and project ideas to
Senior Management
• Help justify first-to-market strategy
with new products / services

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Building a Business case
• Development Approach
Development Approach
A business case can be developed in the following phases:
Financial
Value Definition Financial and Business Case
Project Charter Impact
and Plan Value Analysis Summary
Summaries
Return
to Main Menu
ValuePlan Worksheet Cost Financial Impact Template Include in
Yes
Return
to Populate Menu
Consoli-dation:
Consolidated Incremental Financial Statements Overview of Project XXX
• Objective
ValuePlan Ref: VC1 Project Delivery Owner: Jim Smith, Sales Thread Lead Operations Improvement Owner: Jane Wesson, Manager, Large Account Sale s Cost FIT Title: Program Management Cost FIT Number: P1
FIT Ref: BenefitFIT1, CostFIT1
Client Sponsor: Iggy Javellana FIT Author: Lisa Dubay-Albert Team Name:
Return to Main Return to Analyze Return to Main Return to Analyze
EVM Value Path Metric Path Baseline Value Targeted Value Rationale Tracking Description: Team to over see implementation and rollout of "Line of Sight" projects Print This Report Print This Report
Shareholder Value (How each metric will drive the one above it) (How each o utcome metric has changed)
Retu rn Menu Menu Menu Menu
to Ma in Menu Projected in
Value Driver 1
Revenue Growth Annual Sales of Product X $1,000,000 in 2006 3,000,000 in 2007 Increasing profitable revenue wil create shareholder First quarter sales results well ahead of previous year; on Capitalized ExpendituresDescription Cost Financial Impact Template
Category Cost Type Depreciation Horizon Year of ExpenditureStart Depreciation in
Retu rn
Include
Low Consoli-dation:High Yes Incremental Income Statement 2005 2006 2007 2008 2009 2010 Total Expressed in USD

Scope
(year on year) value and is a stated FY07 priority pace to get 26% YOY growth

• Insert Row Delete Row to Popula te Menu Expressed in USD Year 0 Year 1 Year 2 Year 3 Year 4 Year 5
Value Driver 2
Volume Number of Units Sold 200,000 units in 2006 600,000 units in 2007 Increasing the number of units sold will increase year- Have already sold 150k unit s; on pace to reach 500k Project Horizon 5 Years Inve stment 6,000,000
over-year revenues Cost FIT Title: Pr ogram Management Cost F IT Number : P1
Client Sponsor: Ig gy J avellana FIT Author: L isa Dubay-A lbert Tea m Name: Total Capital Expenditures 2,500,000 4,000,000
Improvement Acquire New Customers Number of new accounts sold 21 new accounts in 2006 75 new accounts in 2007 Increasing the number of new accounts landed will 18 new accounts have been la nded; not on pace to get 75
Description: Team to over see implementation an d r ollout of "L ine of S ight" projects
(+) Sales - 545,160 2,362,360 4,361,280 5,451,600 5,451,600 18,172,000
Lever to in Region X raise the number of units sold new accounts Projected Total Costs 14,875,010 2,000,000
Projec te d
One-Time Co sts Description Category Cost Type Year of Cost Low High B2-1: Increase # of jobs sold by reducing the amount
- of time -required to545,160
create bids. 1,272,040 1,817,200 1,817,200

Timing
Sales & Marketing Number of sales calls made 120 calls made on new 300 calls made on new Increasing the number of sales calls made on new 300 calls target will likely not be reached due to hiring Capitali zed Expe ndi turesDesc ript ion Category C ost T ype Depreciat io n H ori zon Y ear of Exp end it ureStart Depre ciation i n Low Hi gh Total Investment 17,375,010 -

•
Process P1 - People (Internal) (-) SG&A Expenses->Labor
Labor - Internal Year 0 525,000 1,100,000
on new accounts in Region X accounts in 2006 accounts in 2006 accounts will increase the number of new accounts shortage Insert Row Delete Row Delete Row
Insert Row P1 - People (Internal) (-) SG&A Expenses->Labor
Labor - Internal Year 1 393,750 825,000
B2-2: Improve gross margin % by 1% by improving
- estimating- capabilities
545,160 1,272,040 1,817,200 1,817,200
Driver
Discounted Total Investment 16,270,099 (2,000,000)
landed P1 - People (Internal) (-) SG&A Expenses->Labor
Labor - Internal Year 2 262,500 550,000 I1-1: Increase operating margin and customer -satisfaction
545,160
by improving1,272,040
access to total
1,817,200
customer information
1,817,200 1,817,200
(4,000,000)
Rationale (How operational changes will create the changes to the Tracking (How each p rocess metric has changed)
left) (6,000,000)
Projec te d (-) COGS - (954,030) (2,282,320) (3,255,100) (3,255,100) (3,255,100) (13,001,650) Benefits - Pre-Tax and Pre-Financing
Process Input Changes N/A N/A N/A N/A N/A
One -Time Costs Desc ript ion Category C ost T ype Ye ar of Cost Low Hi gh (8,000,000)
Projected Materials - - - - - -

Deliverables
(Changed volume of transactions routed to
Strategy Total Income Statement Benefits 38,973,650

•
P1 - People (Intern al ) (-) SG&A Ex penses ->Labor
Labo r - In ternal Year 0 525,00 0 1 ,1 00,000
Changes work center , changes in range of transaction Recurring Costs
Insert Row Description
Delete Row Category Cost Type Cost Starting Year Low High (10,000,000)
types handled, etc.) P1 - People (Intern al ) (-) SG&A Ex penses ->Labor
Labo r - In ternal Year 1 393,75 0 82 5,000
Insert Row Delete Row P1 - People (Intern al ) (-) SG&A Ex penses ->Labor
Labo r - In ternal Year 2 262,50 0 55 0,000 Total Balance Sheet Benefits 5,451,600 2005 2006 2007 2008 2009 2010

Output Changes N/A N/A N/A N/A N/A

Labor - (954,030) (2,282,320) (3,255,100) (3,255,100) (3,255,100) Total Benefits 44,425,250
(Different standards/specs for output quality, Discounted Cash Flows Cumulative Discounted Cash Flows
consistency, cycle time, total cost, etc.)
Projec te d B1-2: Reduce 1 FTE in end to end invoice processing
- time - (56,250) (75,000) (75,000) (75,000) Discounted Total Benefits 33,811,627

Resources
Recurring Costs Desc ript ion Category C ost T ype Cost St arti ng Year Low Hi gh
B3-1: Improve sourcing capabilities and reduce- sub-contract
(447,810)
labor per(1,044,890)
job (1,492,700) (1,492,700) (1,492,700)

•
Assignment Changes N/A N/A N/A N/A N/A
(Different assignment of transactions to or Insert Row
Projected Annual Improvement
Delete Row
Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 B3-2: Improve employee utilization - (506,220) (1,181,180) (1,687,400) (1,687,400) (1,687,400)
within work center s)
Projectio n Option % of Continge ncy for Year 100% 100% 100% 100% 100% 100%
Financial Returns Project Information
High Projected Yearly Expenses 1,100,000 825,000 550,000 - - - Overhead - - - - - - Net Present Value of EVAs 8,254,102 Investment Type Productivity
People Productivity Increases Number of sales calls made 7 calls made per rep per year 14 calls made per rep per Change in centives to increase rewards for sale s to new Incentive systems have been implemented. Most reps are on Projected Annual Improvement Year 6 Year 7 Year 8 Year 9 Year 10 Sum of 10 Years
Changes (Changes to tools, systems, equipment, info, on new accounts per Sales year customers; In addition to changed incentive system, track to make 14 calls/year on new accounts % of Continge ncy for Year 0% 0% 0% 0% 0% Net Present Value of Cash Flows 4,543,835 Time Horizon of Project (in Years) 5
(for people- incentives and other factors that increase Rep add bonuses for new accounts Projected Yearly Expenses - Year 0 - - - - 2,475,000 Ye ar 5

Cost Projections
Project ed Annua l Im prove men t Year 1 Y ear 2 Year 3 Yea r 4
Supplies - - - - - - Internal Rate of Return (IRR) 22.86% Project Duration 3

•
executed output capacity relative to cost)
processes) Actual AnnualProjection Opti on
Improvement % of Con tingency for Year
Year 0 100% Year 1 1 00% Year 2 100% Year 3 1 00% Year 4 10 0% Year 5 1 00%

Update Actuals
High Actual Proj ected
Yearly Year ly Exp enses
Expenses - 1,100,000 - 825,000 - 550 ,000 - - - - - - Discounted Cash Flow Payback 3.62 Weighted Average Cost of Capital 8.00%
Capability Increases (Changes N/A N/A N/A N/A N/A Project ed Annua l Im prove men t Year 6 Year 7 Y ear 8 Year 9 Yea r 10 Sum of 10 Ye ars
Year 6 Year 7 Year 8 Year 9 Year 10 Sum of 10 Years
to recruiting standards, training, tools and
other factors that raise output quality and
% of Con tingency for Year
-
0%
-
0%
-
0%
-
0%
-
0%
-
Maintenance - - - - - - Number of Benefit FITs Included 8
transaction range/complexity handled by
Proj ected Year ly Exp enses - - - - - 2,475,000
Suppor t for Contingency(I.e., justify it)
people) Actual A nnual Improveme nt Year 0 Year 1 Y ear 2 Year 3 Yea r 4 Ye ar 5 Number of Cost FITs Included 6
Upd at e Act ual s Actual Y early Expens es - - - - - -
Year 6 Year 7 Y ear 8 Year 9 Yea r 10 Sum of 10 Ye ars
Capacity Increases (Higher Number of sales reps hours 800 sales hours per week (20 1200 sales hours per week Hire 10 new experienced sale s staff Only 8 new staff have been hired, and they are less
people utilization ( less idle time); more available sales reps working 40-hour experienced than originally pla nned - - - - - - Gross Profit - 1,499,190 4,644,680 7,616,380 8,706,700 8,706,700 31,173,650
people; tools that increase peoples' capacity, Support for Cont ingency (I .e., justi fy it )
etc.)
weeks)

Cost Decreases (Decreases in N/A N/A N/A N/A N/A

salar ies or benefits costs, etc.)

What is being proposed? What financial value What is the expected What will be the total What is the total
(revenue growth, margin dollar value of impact on income? investment?
What are the high-level
improvement, asset quantifiable benefits? (EBITDA, Net Earnings) (Capex, Opex)
benefits and costs?
efficiency) will be What are the total
How does this project What is the expected What will be the impact
created by this project? benefits? (Income
align with our strategies / dollar cost of achieving on assets and equity?
What operational project benefits? (Total Assets, Liabilities, Statement and Balance
priorities?
(people, process, and Equity) Sheet Benefits)
What are the key technology) changes will
What will be the impact What are the total
assumptions for this drive the financial
on cash flows? financial returns? (NPV
project? results?
(Operating Cash Flow, of EVA, NPV of Cash
What are the key Total Cash Flow) Flows, IRR, Discounted
considerations for Benefits Tracking & Payback Period))
Management What is the financial
this project?
value of the project? What is the timeline for
(timeframe, key Are the operational changes
(Discounted Pre-Tax implementation?
assumptions, biggest being implemented? If not,
why not? Income, Depreciation (Project tollgates,
risks, etc.)
Schedule, EVA, Free milestones, key
Are the financial results being
Cash Flow, Non- activities, and expected
achieved? If not, why not?
Discounted Payback duration)
What planning or
implementation adjustments Period, and IRR)
are needed?
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Create a Project Charter
Before creating a project charter, determine the project rationale – why must it be done
from a business perspective?
Financial
Value Definition Financial and Business Case
Project Charter Impact
and Plan Value Analysis Summary
Summaries

• What is being proposed?

o What are the objectives of the project and business case?
o Why does the project need to be done from a business perspective?
o How will the business case be used to drive decisions?
• Identify the project title, sponsors, project owners, and business owners
• Create a high-level description of the project
• Identify the strategic initiatives which the project supports
o Explanation of how the project links to the strategic goals of the company
• Proposed implementation timeline (rough start and end date)

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Create a Project Charter (Cont.)
Consider the following while creating a project charter:
Financial
Value Definition Financial and Business Case
Project Charter Impact
and Plan Value Analysis Summary
Summaries

• Assumptions in cost or benefit calculations / realization

• Known constraints and dependencies
Key • Dependencies (funding / approval / resources / timing / links to other
Considerations initiatives)
• Risks including potential mitigations and contingencies

Describe Project Scope, Business Value, and Critical Success Factors:

• Deliverables (products or services) that will be created by undertaking the project
• Financial and non-financial value of the project, estimated savings, and projected
benefits
o High-level estimated costs
o Hard and soft benefits that will be achieved by undertaking the project
• Resources, timing, knowledge, process enhancements, and so forth

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Create a Project Charter (Cont.)
Consider the following while creating a project charter:
Financial
Value Definition Financial and Business Case
Project Charter Impact
and Plan Value Analysis Summary
Summaries

• Investigate and understand available supporting data and information and what inputs
exist, such as data requests or interviews
o Request a preliminary set of client-specific data
• Determine the appropriate Business Case tool (For example: ValuePrint, client tool, MS
Excel, MS Access, or something else)
o Tool choice should be based on client / project needs and requirements, and business
case objectives and complexity
• Develop a conceptual structure or straw man framework
• Map out the model’s basics:
o Structure
o Equations
o Assumptions

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Identify Project Value and Develop Value Plan
Here are some of the factors to consider while developing a value plan:
Financial
Value Definition Financial and Business Case
Project Charter Impact
and Plan Value Analysis Summary
Summaries

• What financial value (revenue growth, margin improvement, and asset efficiency) will be
created by this project?
• What operational (people, process, and technology) changes will drive the financial
results?
• Brainstorm cost and benefit drivers using multiple approaches
o ValueMap, client interviews, and facilitation sessions
• Categorize drivers as impacting the cost (efficiency) or revenue (effectiveness) sides of
the equation
• Think critically about what factors truly “drive” each driver
• Use simplified scenarios to understand how the drivers work
• Develop cause-and-effect diagram that depicts interrelationships among these
independent drivers
• Ensure qualitative business drivers and issues are considered and incorporated into the
analysis

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Identify Project Value and Develop Value Plan (Cont.)
Here are some of the factors to consider while developing a value plan:
Financial
Value Definition Financial and Business Case
Project Charter Impact
and Plan Value Analysis Summary
Summaries

• Define, clarify, and confirm expected financial results and operational improvements
• Define relevant, measurable financial metrics
o Use the Enterprise Value Map™ as a framework for thinking through expected
program / project benefits
– Top-Down: Determine what changes need to happen at a financial level (red box
level)
– Bottom-Up: Determine which changes are expected at an operational level (white
box level) and work upward to see which financial drivers (red boxes) will be
affected
• Establish baselines and achievable targets for the financial metrics
o Establish baselines for each financial metric
– Utilize available performance information (corporate or business unit P&Ls)
– Estimate current performance from whatever information is available

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Identify Project Value and Develop Value Plan (Cont.)
Some of the factors to consider while developing a value plan are:
Financial
Value Definition Financial and Business Case
Project Charter Impact
and Plan Value Analysis Summary
Summaries

Define relevant operational / Establish baselines and Collect information, inputs,

process metrics for financial achievable targets for the and assumptions from client,
metrics selected above: operational / process external, and internal
metrics: sources and continually
• Use the Enterprise Value
validate data and
Map™ as a framework to • Establish baselines for
assumptions with key
identify operational drivers each operational /
stakeholders
that support the financial process / people metric
metrics o Utilize available
• Identify the key metrics to performance information
focus on and set (process- or function-
reasonable targets and a specific performance
timeframe for achieving reports), or
them o Measure the current
operational performance

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Deloitte’s Enterprise Value Map
A management framework that explicitly links operational performance to shareholder
value via cause-effect relationships.

Shareholder Value

Revenue Growth Operating Margin Asset Efficiency Expectations

How Value is Created

(Value Drivers)
D e l o it t e E n t er p ri se Val u e Ma pT M
(Practical paths toincreaseshareholder value)
It’s easy to say shareholder value is imp ortant.
Not so easy to make it influence the decisions
Here are two simple ways to use it:
 Start at the to p. Working your way down,
Sh ar eh o lder Value
that are made every day: wh ere to spend time
and resources, how best to get thin gs done, and, at each step ask yourself, How will we
ultimately, how to win in the competitive improve this? This will help ensure that your
marketplace. tactics suppor t your objectives.
This Map is designed to accelerate the
connection b etween actions you can take and  Start at the bottom. Working your way up,
shareho lder value. It is not rocket science and it at each step ask yourself, Why arewedoing
is not complete, but it can jump-start the this? This will help ensure that every tactic
process of fo cusing on the th ings th at matter leads to shareholder value.
most and then choosing practical ways to get
them do ne.

Revenue Growth Operating Margin Asset Efficiency Expectations

(after taxes)

How Value is Created

(Value Drivers)

Selling, General & Cost of Goods Sold Property, Plant & Receivables
Volume Price Realization Administrative (COGS) Income Taxes Equipment Inventory & Payables Company Strengths External Factors
(SG&A) (PP&E)

Improve
Improve Improve Improve Improve Improve Impr ove Improve Improve
Acquire New Customers Retain and Grow Current Leverage Income- Strengthen Pricing Customer Interaction Logistics & Service Management & Governance Improve
Customers Generating Assets Corporate/Shared Services Development & Production Provision Income Tax PP&E Inventory Receivables & Payables Execution Capabilities
Efficiency Efficiency Efficiency
Efficiency
Efficiency Efficiency Efficiency Efficiency Effectiveness
What You Can Do
(Improvement Levers: Business Processes,
Assets and Organizational Capabilities)
Product & Demand & Customer Order Procurement Work in Accounts, Accounts, Business
M arketing & Account Cross-Sell/ Cash/Asset Price Marketing & IT, Telecom & Human Business Financial Product Logistics & Service Income Tax Real Estate & Equipment & Finished Notes & Notes & Business Program Operational Partnership & Relationship Agility & Strategic
Sales Service Management Up-Sell Retention Management Supply Optimization Advertising Sales Service & Fulfillment & Networking Real Estate Resources
(Excluding Pro duction
Management Management Development Materials Production Distribution Merchandising Delivery M anagement Infrastructure Systems Goods Process & Interest Interest Governance Plannin g Delivery Performance Excellence Collaboration Strength Flexibility Assets
Materials &
Innovation Management Support Billing Raw Materials Management
Merchandise) Receivable Payable

Consolidate and/or Cons olidate and/or Impr ove coordination Increase emphasis on
Rati onalize targeted Implement integrated Increas e emphas is on Strengthen corporat e Increase emphasis Est ablish a c ulture Increase focus on
Increase focus on Increase focus on Increas e focus on Increas e focus on Increase emphasis on R ationalize and/or Rati onalize and/or Differentiate t reatment Consolidate or Ma nage proc urement align business align financial Rationalize and/or Rationalize and/or Rationalize and/or Rationalize and/or Rationalize a nd/or Rati onalize and/or R ationalize and/or Rationalize and/or Rationalize and/or Rationalize and/or of operational, invest- ent erprise-wide Increase focus on Increase focus on
Change What You Do high-value/high-
potential cust omers
Broaden product and
service of ferings
high-v alue/high-
potent ial customers
high-value/high-
potenti al customers
high-value /high-
potential custom ers
generating rev enue
from company assets
A cquire competitors refocus product and
service por tfolios
Rationalize t argeted
cust omer segments
markets and c ust omer
segm ent s
refocus product and
serv ice portfolios
of cust omers/
segm ents
applications across
organizational
Consolidate company
real estate/ f acilities
outs ource recruitment
func tions
on a national /global
bas is
planning,
management and
planning,
management and
refoc us product and
servi ce portf ol ios
refocus product
portf olio
refocus produc t
portf olio
ref ocus product
portf olio
ref ocus product
por tfolio
refocus servic es
offered
permanently lowering
the company's
refocus product and
service portfolios
ref ocus product and
ser vice portf olios
ref ocus product
portfolio
ref ocus product
portfolio
Refine credi t/days-
re ceivable s trategy
Ref ine days-
out standing s trategy
gov ernance s tructures
(co mpositio n , sele ctio n,
ment, financial, M&A,
and tax strateg ies
program planning and
collaborative pr ogram
on continuous,
proactive perform-
centered on
operational
part nership, merger
and acquisition
stak eholder
relat ionships
business agility and
flexibility
Increase focus on
strategic assets
boundaries effective tax rat e rol es, etc.) ance management exc ellence opportunities
reporting func tions report ing f uncti ons across business units delivery
- What you provide Increase focus on Increase focus on Increase em phasis on Consolidate or Consolidate or Impr ove alignment of Cons olidate and/or Inc rease emphasis on Refine and/or align Increase emphasis on Integrat e tax oppor- Inc rease emphasis on Coordinate Coordinate Improve communi- Impr ove alignment of Est ablish process Establish Improve ident ification Establ ish
Increase focus on Increas e focus on Increase emphasis Rationalize and/or Rati onalize and/or Impr ove f ocus on Increase use of lower- Consolidate or Increase emphasis on Increase emphasis on D evelop business cati on between t he cust omer, product, Establish program/ Improve effectiveness Establish agility and
me rchandisi ng
- Whom you target and serve most profitable
R&D, product
innovat ion, and
Rationalize
cust omer portfolio most profitable
Increas e emphas is on
customer retention
developing and
protect ing intellectual on different iated
di fferentiated pricing
ac ross cust omer refocus product and refocus product and segments with lower cost delivery/
installation channels
Rationalize I T
application portfolio
outsource de sign and
development
outs ource learning
and developm ent
out source
busi ness unit
strat egies with
align financial
accounting and modular, extensible, desi gning for
Improve f ocus on
higher-value products
designing and
packaging str ategies
serv ice prevention /
Reduce need for
tunit ies and issues
into business planning models with low real
Outsource business
functions
Develop low-Invent ory
business models
designing for
manufacturing
management of
credit/receiv ables
management of
payables acr oss boa rd, management, advertising, sales, project delivery as a of organizational
improvement and
innovat ion as key
cros s-compan y
collaboration as a key
of st akeholder groups
and establishment of flexibility as key
development of
strategic assets as a
products and serv ices produc ts and services products and services service portf olios serv ice portf olios average cost-to-serve procurement f unctions scalable designs materials efficiency (cen tra l v s. local es tate requirements shareholders and t he serv ice, support, and key competenc y structures competencies
- How you compete product l eadership capit al segments (self-s ervice, p a rtne rs, etc.) functions func tions enterprise strategies analy sis functions for distribution merchan d isin g, etc .) serv ice processes eff iciency ac ross business unit s business unit s
pub lic fulfill ment strategies
competencie s com petency priorities key competency

- Where you deploy resources Increase focus on Increase emphasis

Increase emphasis on
Increas e focus on
Increase focus on Improve foc us on Increase fo cus on Rationalize and/or Increase use of lower- Differentiat e service Increase use of lower- Consolidate IT, Consolidate or Consolidate or
Impr ove alignment of
organization s truc-
Improve alignm ent of Cons olidate or
Rationalize/ Increase emphasis on Refine/align Ma nage purc hasing Improve f ocus on
Maximiz e tax ben efits R educe number of Consolidate Rationalize and/or
Inc rease emphasis on Improve management
Inc rease focus on Strengthen and Increase emphasis Increase emphasis on
Increase focus on
Improve effect iveness Increase proactive
Establish
management of key
Establish product,
Increase emphasis on
most effective sales on design for most effective sales Create barriers to telecom and network outsource outs ource benefits Ref ine vendor financial strategies out source product associat ed with major dat a center s, branch IT systems, ref ocus cust omer vendors with communicat e mission, on risk-informed, continuous, proactive of organizational purs uit of servic e and process
cost sales channels cost billing channels
- Which operations you outsource and advertising configurability/
accou nt/relationship
development and advertising switching
divestiture and
reinv estment
price-insens itive
customer s egments
pr icing effectiveness /
pr ice optimization
refocus channel/
media usage (tele sale s, ou tlets, self-
treatment of
cust omers/segments (autom ated, sel f-service, equipment and improvement and administrat ion strategies
tures and governance
models with business wit h corporate development
cons olidate vendor
portf olio
design for production
efficiency
logistics and
distribution s trategies
on a national/global
bas is
higher-value c ustomer
relationships
busines s decisions
(M& A, conso lidation , o ut-
of f ices, dealerships, production lines and segment s and
us e of common
components
of credit risk across
business units fav orable payment vision, values and scenario-based management of
managerial, forward-
looking inf ormation structures and part nerships, mergers
stak eholder
relat ionships as innov ation as k ey
leveraging strategic
assets
channels cust omiz ation channels serv ice, etc.) etc.) fac ilities deployment func tions strategies funct ions sou rcing , sit e selectio n, e tc.) retail outlet s, etc. ser vice mec hanisms dis tribution channels terms ethics planning invest ment port f olios gov ernance models and acquisitions competencies
strat egies organizational priority
Utilize tax-effec tive
Increas e focus on Cons olidate or Consolidate or Consolidate or Impr ove alignment of Strengthen Increase use of lower- Increase focus on Consolidate or Increase emphasis on Inc rease foc us on Inc rease emphasis on Improve relati onship Improve agility and corporate struct ures
Improve platform and Improve account Refocus and/or refine Improve f ocus on Improve focus on Consolidate or outsource order Consolidate or Rat ionalize/ Cons olidate or Inc rease foc us on Inc rease emphasis on Rat ionalize/ Buil d values and Impr ove integr ation of Improve effectiv eness Increase emphasis on
Target new expansion of Increase focus on C onvert fre e services outsource design, outsource pr operty capi tal budget s and enterprise-wide cost product materials-eff ic ient out source des igning for service Accelerate or def er R ationalize Defer/change timing Inc rease emphasis on customer segments Increase focus on key cross-busine ss-unit management flexibility of for ownership/ licens-
geographies portfolio strategies for management customer retentio n priorities and product innovat ion to fee-based services higher-value higher-value outs ource service and fulfill ment func tions development and management outs ource payroll consolidate v endor program plans with financial reporti ng development product ion outsource production higher-value products me rchandisi ng efficiency and self- income/ expenses pr oduct ion facilities of capital investments high-turn product s designing for with low credit/loan consolidat e v endor ethics into corporate short- and long-term of program/proj ect performance metrics and cross-company operational integration strat egies for key organizational
products and servi ces strategies strategies segments cust omers/segments support operations func tions por tfolio functi ons and partners materials eff iciency portfolio cult ure business planning gover nance models wit h partners ing of intangible
(pick, p ack an d ship,
relationships install , provisio n , etc.) deployment services functions busi ness prior ities standards channels mec hanisms fun ctions serv ice needs col laboration stak eholder gr oups struc tures assets (pate n ts, trad e
na mes, IP, etc.)

Increase emphasis on Increase emphasis Consolidate or Inc rease use of lower - Improve focus on Consolidate/ Inc rease emphasis on Impr ove alignment of
Target new segments Inc rease foc us on Foc us sales efforts on Impr ove emphasis on Cons olidate or Sta ndardize product Align M&A strategies Rationalize portfolio of Desi gn produc ts to Increase use of lower- Increase use of Inc rease foc us on Improve focus on Increase focus on Increase emphasis Inc rease emphasis on Improve agility and
time-t o-market and Increase emphasis on on supply c hain Increase us e of outsource operat ions cost real est ate and Improve f ocus on catalogs higher-value c ustomer outsource logistics Refine vendor/ Migrate income to O utsource business design for Inc rease emphasis Rationalize r aw HR and technology
wit hin current management higher-value products higher-margin product qualit y and outsource billing with business financial servic es use cost-effec tive cost production cheaper servi ce creditworthy customer internal contr ols and project quality and on people/talent quality mana gement flexibility of
time-t o-production- cust omer satisfaction pr omotions and maintenance fac ilities / Relocate employee ret ention (e quip me n t, office supplies, segment s and and distribut ion supplier strategies low-tax jurisdictions functions manufacturability and on build-to-order materials strat egies with
geographies volume (pro du ctio n, d istribu tio n and and services products and services ease of service operat ions ser vices business operations p romotio nal mater ials, etc.) objectives providers products materials channels functions channels ser vice segments regulatory co mpliance business strat egies risk management development and benchmarking gove rnance models
sale s pipe lin e s)
Utilize t ax-effective
Improve f ocus on Outsource property Dev elop/int egrate Increase focus on Rationalize and/or corporate structur es Inc rease emphasis
Increase number and Bypass current Des ign produc ts for Impr ove emphasis on Consolidate or tax administ ration Incr ease use of lower- Increase quality and Inc rease use of lower- Rationalize/ Consolidate or Manage mat erials Incr ease emphasis on Increase considera- Increase focus on Increase focus on risk Inc rease focus on
Expand s ales and higher-value global HR practices business insight and realign product Increase focus on for ownership/ licens- on preventiv e
advertisi ng channels quality of product and adv ertising c hannels/ chan nels / Sell ease-of -use / self- design for pac king/ outsource end-user ac tivities cos t channels forward-looking development component reuse consi stency of cost logistics and consolidate v endor outs ource service equipment sourcing on a risk identification and tion of M&A and realization of target ed management and bus iness continuity
service launches directly to customers serv ice shipping efficiency support (compl iance, as se ssmen t,
(in terna l/e xtern al, o nshore/
(self-serv ic e, etc.) mater ials distribution c hannels por tfolio operat ions ing of intangible national/global basis management dives titure opt ions business benef its regulatory compliance planning
media offsh ore , etc.) information eff orts assets (patent s, tra de maintenance
ne gotia tion s, etc .)
nam es, IP, e tc.)

Improve total Improve total Improve Impr ove order ing and Improve understand-
Tailor account Improve Improve Increase use of Improve product Improve Improve identification Improve Im prove Improve focus of tax Leverage credit rating Strengthen and Impr ove identi fication Improve structuring Improve Improve assessment Improve abilit y to ing of stakeholder
customer experience Increase utilization of management customer experience Improv e identific ation Impr ove inves tment Improve brand underst anding of understanding of relationship/account Impr ove servi ce and vend or-managed/ Improve des ign, Im prove real est ate Improve Impr ove cash/ treasury and discontinuation of receipt processes production scheduling Improve inventory me rchandise Improve servi ce and function/department R econf igur e facilities / Uti lize more Improve Improve Tighten credit/loan to l engthen payment communicat e and prediction of and launch of determination of k ey and benchmarking of ident ify and assess Improve flexibi lity Develop and lev erage
modular, reusable of valuable customer returns on cash/ awareness / Elevat e cust omer, product development and design and develop- recr uitment and procurement strat egic planning rec eipt and s torage Increase ut ilization of eff icient production inter ests ( custo mer s, of business strong/unique partner
( purchasin g, fulfillmen t, (pu rchasing, fulfillme n t, (raw ma te rials, in terme diat e
u sage , su pport, ser vice, designs approaches to usa ge , supp ort, servic e , relationships treasury funds brand image customer p rice and channel deve lopment support processes vend or-warehoused tes ting processes ment proces ses orientation pr ocesses processes processes management unsuccessful materia ls, finishe d
and s taging processes ordering and receipt support processes on proactive t ax facilities equipment demand forecasting demand forecast ing ter ms cyc les and reduce gov ernance policies indust ry and market cohes ive program performance metrics bus iness pro cess part nering sha rehol ders, regu lat ors, processes relationships
e tc.) cust omer segments etc.) sensitivity proc esses inventory (e quip me n t, sup plies, etc.) practi ces eff orts compo n ents, etc .) processes processes planning interest rates and procedures trends portfolios and target s per formance opportunities e mploye es, su ppli ers,
profitability p artne rs , alumni, e tc.)

Improve collaborat ion Improv e Obtain exclusive Improve Improve processes Improve selec tion, Im prove real est ate Improve Improve work force Improve accuracy and Improve cus tomer Leverage breadth of Improve/implement Improve alignment of Improve Inc rease focus on Improve abilit y to Improve ident ification Improve
Improve Improve identific ation License or sell Provide staff with Impr ove work force Impr ove credit Improve Improve serv ice Impr ove Improve debt and Improve product Impr ove materials Im prove focus on planning, dispatch Inc rease use of Improve Improve Impr ove identi fication measurement and structure and communication and Develop and ut ilize
Improve value / with design, underst anding of agreements with underst anding of for generating, acquisition and selection, ac quisition procurement manufacturing and Improve retrieval timeliness of tax Increase us e of inc ent ives for vendor relationships internal contr ol projects with pr ogram pos t-merger synergy of opportunities to unique physical
unders tanding of of cros s-sell/up-s ell intellectual capital to partners bet ter market and planning and dispatch analy sis training program planning equit y managem ent conc eption/init iation effic iency of higher-value vendor and assignment flex ible/expandable collaboration with collaboration with of opportunit ies and reporting of impl ement durable, know ledge transfer
Decreas e prices development and churn/d efect ion pr oduct /ser vice value qualifying and cont racting and contract ing processes qualit y control processes provision and cash flexible faci lities ac celerated/on-time to l engthen payment frameworks and and business and cost reduction increase value to resources
production partners cust omer needs opportunities drivers other enterpris es (lice n ses, dist ribu torship s,
to customers cust omer inf ormation assi gning leads processes and tools processes processes processes processes (travel, c ontract la b or, etc.)
processes processes proc esses product ion processes processes rela tionships proc esses outflow forecasts production equipment vendors/ partners vendors/part ners payment cyc les poli cies threat s object ives operational and programs mut ually beneficial stak eholders acros s organizational (fa cilities, la nd, etc.)
etc.) and tools financial performance part nerships boundaries
Do What You Do Better Improve effectiveness Improve Implement proac tive Increase us e of Improve Impr ove capacity/ Im prove real est ate
Improve salary and Improve cont ract Improve Improve capacity/ Improve ability to Alig n internal audit
Impr ove strategy
Inc rease integrat ion of Improve abilit y to Improve agility and Develop and ut ilize
of marketing, Improve reuse of unders tanding of and reactive cross- Improv e identific ation Sell appreciated A lign advertising with Improve analytical field sales and demand planning Impr ove pick, pack Improve instal lation/ improvement and benefits administra- ma nagement Impr ove operational Improve financ ial design and Rationalize order Provid e staff with Improve t ransport and Im prove coordination demand planning utilize of fshore ca sh/ Increase us e of Improve Improve logistics/ Inc rease utilization Differentiat e credit Improve management practices with development capa- Struct ure programs/ Improve analysis of bus iness pro cesses integ rate merged Improve flexibility of partner unique human
product and servic e of chur n/defect ion di fferential pricing deployment tion processes / risk management risk management better production delivery processes/ eff ectivenes s of plant of standardiz ed treatment of bilities at corporate projects to deliver managerial communication with
processes resources
- Strengthen governance approaches advertisi ng and sales
processes
components curren t customer
satisfaction
sell and up-sell
campaigns
candidates assets pricing strategies mechanisms (base d on
cust omer va lu e, risk, etc.)
processes and tools teles ales
proc esses
processes, sk ills and
tools
and s hip processes processes deployment
processes
Increase employee (n egotiat ion , exec ution an d
complian ce )
processes processes development
proc esses
quantities and timing information and tools algorithms wit h vendors proc esses, sk ills and
tool s
assets and move
between geographies
leased real estate maintenance dis tribution efficiency components customers/s egments of debt portf olio bus iness and risk
objectives
and business-unit benef its progres sively informat ion across organizational
boundaries
and acquired
organizations
stak eholder gr oups organizations and
networks (th o ught lea ders, man agers,
su bject mat ter ex perts, e tc.)
self -service level s
- Align resources with strategies Improve
Improve Improve Improve processes for Im prove operational Improve audit and Utilize international Improve qualit y and Improve and Improve alignment of Implement/ enhance Improve coordination Improve focus on Improve identification
- Improve business processes Increase time spent Acquire new product responsiveness to
Improve cross-sell
and up-sell
Improv e adherence to
contrac ts and Develop, spin- off and communication and
Improve tai loring of
of ferings to customer
Provide staff with
bet ter compet itive Improve utiliz ation of Impr ove ut ilization of
Impr ove
provi sioning/ managing system processes
(ad min istration, secu rity,
Improve
pay roll
Improve demand
planning proc esses
Impr ove capital
budgeting compliance
Improve
prototyping, piloting
Provide staff with
better product
Improve capac ity
planning processes,
Improve design/
structure of
Provide staff with
bet ter information and Improve utiliz ation of financing opportu ni-
Im prove terms
on propert y and consistency of Rationalize production Shorten production standardize credit A/P systems and ano nymous employee
Impr ove devel opment
and analysis of and communication most im portant and mitigatio n of
operational ri sk
understanding of
part ner st rengths,
Improve value
delivered to Improve product
Develop and lev erage
political relationships
selling and serv ice off erings cust omer compl aints/ sell new businesses coordination with sales st aff serv ice staff operat ions, mainten- management serv ice staff ties to minimize after- manufacturing quantities and timing cyc les as sessment processes wi th days- reporting and feed- across programs and managerial innov ation processes
approaches/models agreements needs information installation processes processes and tools processes and test ing processes information and t ools skills and tools distribution networks too ls facilities business cases weaknesses and cust omers and alliances
- Hone strategic capabilities feedback distribution centers ance and changes
en ergy , HVAC a n d
main te nance) processes tax borrowing cos ts materials pr ocesses out standing s trategy bac k mechanisms projects informat ion
(peo ple, proces s, tech-
no logy , d ata, et c.) inter ests
- Manage tax impacts and opportunities Improve product/ Proact ively manage
Sell or lease excess Improve Prov ide staff w ith Prov ide staff with Improve end-user Improve Impr ove Improve business Impr ove demand Improve demand Im prove demand Prov ide staff with Impr ove Improve Improve Improve busi ness Improve integration of Improve flexibi lity
Tailor marketing and Improve effective ness capacity to oth er A lign product and Improve defi nition of bett er customer better customer Im prove capacity/ Provide staff with Improve product and bett er customer Inc rease Rationalize Improve management Improve coordination Improve under- Improve value
service R &D Improv e retention and communication and Impr ove invoicin g/ support and per formance program case developm ent forecasting forecasting Rationalize production for ecast ing Improve management D ivest low-utilization Rationalize production communication of accountability/ communication continuity planning busi ness proc esses and v ersatility of IT Develop and cultivate
- Improve control / reduce risk sales approaches to
and depl oyment
transit ion points
(life even ts , en ds o f
of cros s-sell/up-s ell
win-back process es enter prises coordination with
service pric es with product and service infor mation information billing process es administrat ion
demand planning
assessment
bet ter product and
management and analysis
servi ce introduction/
processes, sk ills and processes, skills and quantities and t iming processes, s kills and information of trans fer pricing real estate
use of leased merchandise order
quantities and t iming
of delinquent of payments across standing of regulatory
strat egic direct ions aut hority of program around i mprovement and disaster recovery across partner
delivered to
systems and good will
customer segmen ts c ontracts a n d leases , e tc.) proces ses (pro d uction c apacity, s ervice value to customers specificat ion (dem ograph ic s, in quiry (prof iles, tra ns action processes and tools ser vice information launc h proces ses (p rofiles , tra nsa ction production equipment quantities and timing ac counts business unit s requirements shar eholders
capabilities sales channels processes processes processes processes tools tools too ls and priorities and project resources priorities capabilities networks platf orms
- Collaborate more effectively cap acity, etc .) histo ry, etc.) histo rie s, etc.) historie s, e tc.)

What You Can Do

- Satisfy customers, employees and Improve access to
Adapt current Improve t racking of Improve Improve st ruct uring
Improve t ailoring of
marketing and
Prov ide staff w ith
Prov ide staff with Impr ove policies and
Improve dispatch, Improve assi gnment Impr ove Improve tax manage- Improve utilization of Focus efforts on Rationalize
Prov ide staff with Optimize account ing
Improve assessment Improve monitoring
Impr ove alignment of
Improve program/ Improve ability Improve manage-
Improve qualit y
Improve value
Improve breadth, Develop and ut ilize
products and servi ces cust omer interac tions Solicit and respond to Impr ove managerial Improve demand bett er product , service diagnostic, resolution Inc rease ut il ization of Improve employee of procurement accounting and ment processes Rationalize production Rationalize o rder bett er produc t, service methods and selec- Increase us e of Inc rease utilization of Div est low-d emand/ Div est obsol ete Improve col lections budgets and c apital and speed of depth, quality and unique informat ion
other stakeholders informati on and
analytical tools
for new s egments/ (p urcha se s , suppo rt
unders tanding of
customer needs
customer f eedba ck methods and t ools forecasting
and pricing of
pr omotions
adv ertising
approaches to
and competiti ve
better product and
serv ice information
processes around
merc handise returns
and replacement real estate retent ion programs transact ions to measurement (direct a nd indirect ta x
product development
channels
higher-value v endor
relat ionships
quant ities and t iming
merchandise order
quantities and t iming
qua ntities and timing and contract tion of accounting leased infrastructure production equipment obsolete invent ory materials pr ocesses
and benchmarking of
A/P performance
and management of
regulatory co mpliance
programs with
project management
methods and tools
to launch
improvement effort s
ment of regulatory
compliance
com municatio n with
delivered to
employees
timeli ness of business resources (custom er,
channels re qu ests, e tc.) infor mation processes app ropriate s taff processes ma nagemen t) information periods strat egic priori ties part ners planning informat ion pr oduct, ma rket, etc.)
cust omer segments
Improve visibility of Impr ove C oordinate pricing of Optimize valuation Improve iden tification Impr ove
Improv e Improve technology Improve asset Ali gn production and and costing methods Increase Improve tracking and Improve value
Improve qualit y and Pursue joint-venture, Maintain compet itive customer compet itiveness of underst anding of Improve us e of complementary Improve product and Consolidate/realign Route low-value Prov ide staff with and data risk Im prove terms with Provide staff with Incr ease focus on Impr ove business Improve collaboration Reduce procurement Improve coordination merchandise ordering Im prove assignment Differentiate t reatment us e of flexi ble and Divest low-utilization Improve term s on Inc rease use of just - Improve management and assessment of understanding of communication of Improve assignment Improve phys ical Improve Improve versat ility of Develop and lev erage
assignment of sales partnership and OE M relationships and business unit supply- and capacit y- service launch transactions t o lower- better customer and bett er HR information higher-value vendor performance r eporting management wit h partners and with business of transact ions to of c ust omers/ for inventories internal value and of accountabilit y and management of delivered to partners
functionality and value product and serv ice pr oduct s and services sales territorie s management service prov iders cycle times schedules with ex pandable equipment merchandise in-time procurement of credit/loan portfolio risk (strateg ic, operat io nal, program/ project sec urity of people managers and staff strong brand
leads arrangements interac tions across all performance and driven promotions (razo rs v. bla d es / prod u ct v. processes cost sales channels order informati on (securi ty, e nergy , etc.) and tools par tnerships processes processes customers partne rs app ropriate s taff segments (LIF O, FIFO , uniform
inv estment, fina ncial, com- market value of authority part ner relationships (ven dors , cha nnel partners,
offering s ship pin g cha r ges, etc.) processes (fixe d and va riable a s sets) distribution s chedules cap italization , shrinka ge, infrastructu re plia n ce , data /privacy, e tc.) progress e tc.)
channels market values obs olesce nc e, etc.) business units

Inc rease utilization of Impr ove identi fication, Improve value

Improve Improve product and Improve sales Impr ove forecasting, Im prove terms on Optimize depreciation Improve ass essment Improve qualit y and Improve shar ing of Improve shari ng of Improve product , Develop strong
Improve management Tailor c ross-sell/ up- Offer value-adding Divest non-per forming Improve product and Improve ex ecution of Impr ove routing of IT, telecom and Improve capacity/ Improve budgeting License or acquire Provide staf f with Im prove use of Route low-val ue Improve risk planning, assessment and Improve assignment delivered to ot her
Improve brand responsiveness to sell offers to cus tomer product and serv ice and non-strategic service lifec ycle market - and supply- service withdrawal forecast ing an d serv ice request s to planning and purchased and leased demand planning Improve collaboration Impr ove/st andardize and forecasting products and Impr ove terms on Short en produc tion better information and nat ional/global transactions t o lower- methods/lives for Im prove terms Uti lize more efficient Consolidate Improve t erms on and benchmarking of miti gation and control execution of of res ources to consiste ncy of knowledge across know ledge across servic e and process customer
strength and good will of product lifecycles cust omer requests and retirement cam paign execution priori tization sk ills and network resources real estate, furniture wit h vendors M&A processes materials purchases cycles property, plant and on infrastructure IT systems inv entory materials credit/receiv ables performance organizational organizational stak eholders innov ation skills of relationships an d
(la unch th ro ugh retir ement) needs bundles business units management dr iven promotions appr opriate st aff (serve rs, routers , network processes and tools capabilities intell ectual property tools pur chasing power cost sales channels app roaches M&A /divestiture projects (p ublic, a lumni, an alysts,
and inquiries processes proc esses and tools tools capaci ty, etc.) and fixtures equipm ent performance opport unities assessm ent methods boundaries boundaries e tc.) staff communities

Implement/improve Improve monitoring

(Improvement Levers)
Implement pricing and Impr ove ability t o Improve campaign Increase use of lower- Improve demand Inc rease use of Improve routing of Inc rease use of Inc rease use of Improve perf ormance Improve conversion of
Tailor products and Evolve product and Proacti vely manage cost service and Consolidate device Im prove terms on company-wide Improve term s on Impr ove compliance Improve skills of Impr ove terms with Improve ut ilizat ion of Ensure full utilization Uti lize more Improve company- Impr ove ability to Improve involvement and management of and reliability of IT Improve integration of Develop and lev erage
Improve quality affinity programs transition points utiliz e offshore cash/ S horten time-t o- Improve pri ce/margin des ign and Improve terms with Impr ove due-date Improve financ ial forecasting vendor-managed/ serv ice requests to of tax c arryforwards D ivest low-utilization vendor-managed/ vendor-managed/ risk and complianc e strong relationships intellectual capit al
services to new service fe atures, information channels management improvement s processes and tools equ ipment and management product development serv ice providers production channels / flex ible/expandable IT wide monitoring and develop and spin-of f of operational staf f in systems/plat forms IT s ystems ac ross
assurance programs based on volume and (life even ts, e nds of assets and move market knowledge of staff management sales channel s reliabilit y report ing ef ficiency processes, s kills and vendor-warehoused appropriate service (cre dits, net o perating infrastructu re vendor-warehoused vendor-warehoused (strategic , operatio nal and into sources of com- (co pyrights, pa ten ts,
BUSINESS PROCESS GROUPINGS customer segmen ts functionality and value
breadth con tracts a n d leases, e tc.) betw een geographies processes and tools (cont act cen te rs, a utom ated
voice respo ns e, web , et c.)
information and tools (HVAC , cabling, etc.) for assessing staff
per formance
supplies processes staff (deliver y, wa reho using, etc .) Reduce downtime
tools inv entory channels los ses, cap ita l losses, etc.)
sys tems
inv entory invent ory
management of risks new businesses project delivery
financial r isks; regu latory
and tax co mpliance )
(app lic atio ns, eq u ipment,
ne two rks, e tc.)
part ner networks
pet it ive advantage tra d ema rks, etc.)

Business Strategy and Managem ent Utiliz e tax opportuni- Improve breadt h, Consider tax impl ica- Improve qualit y of Develop and ut ilize
Shorten order-to- Im prove real est ate Improve term s with depth and qual ity of Improve incentives Improve breadth, Impr ove f ocus of Increase account- Improve breadth, Improve infor mation provided
Improve account ties around ris k man- Improve features and Improve co ordinat ion Improve channel Impr ove skills of order Consolidate and/ or Provide staff with Improve incent ives Improve skil ls of tions in the location/ Improve identifi cation unique production
(Business and Financial Strategy, Mer gers and A cquisitions,Tax delivery cycle time / Remove barriers to management sk ills of Improve brand Implement affinit y functionality of w ith suppliers and management Improve skills of Impr ove skills of management and re- architect dat a performance Improve skills of HR ser vice provid ers better managerial financial inform ation around product Impr ove collaboration around product ion invent ory and Im prove skil ls of Improve skills of Improve mai ntenance dep th, quality and company resources and management of ability of business depth, quality and part nership and to st akeholders
Improve product and switching strengt h and goo d will programs agement activ ities sales st aff serv ice staff management staf f development with vendors me rchandisi ng staff serv ice staff selection of facilit ies of IT systems timeliness of manag- on high-priority unit leaders for tax timeliness of business collaboration skills of resources
Managem ent , Risk Management , Compliance Managemen ,t Program staff (he d ging tran saction s, products and services sales channels processes and tools billing staff stores (e quip me n t mainte nan ce,
information and t ools (as set, budg e t, price/ cost, efficiency distribution s taff (dis tribution cen ters, s e rvic e program/ project risks (a ccu rac y, time line ss, (me thod s, e quipment,
service availability methods and tools d elive ry, warehou sing, e tc.) tre a su ry, de btor/cre ditor, eff ici ency eria l informat ion initiatives impact of decisions information staf f transp ar ency &
Managem ent and P erformance Management) com modities tra ding , e tc.) pe rformance , tax, risk , etc.) cen ters, bran ch es, etc .) p redictab ility) fac ilities, e tc .)

Build tax opportunities Ens ure t ax pl anning

Customer Strateg y, Relatio nships an d Interactions Defer and reduce Impr ove incentives Impr ove incentives Improve Consider tax Improve cost Increase use of into real estat e Impr ove anticipation Dynamically cancel or Improve benchmark- Improve mechanisms
Improve sales and Apply brand to new Improve incentives for Off er v alue-addin g Improv e brand feder al, state a nd Improve qualit y and B uild product Improve t erms with Improve staff around servic e around order est ablishment of and inc entives in location Increase use of Utilize national/global Impr ove skills of accounting and Improve definition of vendor-managed/ Improve skills of Improve incentives Im prove incentives Improve staff Inc rease utilization of acti vities and tax and understanding of redirect ineff ect ive/ ing of global effec tive Improve access to for s oliciting and Develop and ut ilize
(Marketing, Sales, D elivery/Provisioning, Billing and Servic e) marketin g skills of and unbr anded accou nt/relationship produc t and serv ice reliability of product s margins/profitability incentives aro und dist ance/on-li ne busi ness product and service around inventory/ around merchandising incentives around transac tions filings comply with and distributi on of unique IT resources
staff products development bundle s strengt h and good will local quarterly esti- and services into sales incent ives adv ertising c hannels sales efficienc y effic iency and management adherence to service- and selection of learning pur chasing power management staff allocation of shared/ spec ifications vendor-wareho used production staf f distribution efficiency eff iciency serv ice efficiency (inc ome defe rral, loca tion IT systems regulatory environ- current and potential obsolete programs tax rate against bus iness information addressing (a pplication s, ne two rk s, e tc.)
mated tax pay ments effec tiveness effici ency level target s fac ilities overhead cost s inventory cre dits a nd i ncentives , regulations/ legislation and projects industry peer group stak eholder feedback
Product Strategy, Development and Production lea sing term s, etc.) ment
(Innovation and Design, Supply Chain Management, Production Improve product
Shorten order-to- Improve methods and Improve terms with Impr ove t erms with Impr ove terms with Improve technical and Reduce salary and Incr ease use of Improve ability to Improve t erms with Improve t erms with Improve consider ation Clar ify governance Improve breadth, Improv e asset
Operations and Logistics) Improve alignment of Improve product- and Improve account Improve methods and Ensure proper Impr ove incentives development Impr ove contracting Improve t erms Im prove term s with role s and res ponsi- Impr ove ef fect iveness Improve management Improve security of
delivery cycle tim e / Establis h custom er tools for managing Improve skills of serv ice provid ers serv ice providers service providers project management benefits costs / vendor-managed/ utilize of fshore cash/ service providers serv ice providers of tax implications in Divest low-utilization depth, quality and development sk ills of
staff incentives wit h service-innovation management tools for managing valuation of property around business performance and negot iation skills on equipment ser vice prov iders (o utsourced services , biliti es (deleg a tion of of legislative/lobbying of vendors/service applications, systems
Human Capi tal Str ategy and Manag ement Improve product and communities demand/supply marketing st aff (net work serv ic es, airlin es, (netw ork se rvices, (delive ry service s, ski lls of staff Improve value of vendor-warehoused asset s and mov e (tra nspor t, wareh o using , the acquisition and IT systems timeliness of perform- management and
strategic objectives skills of s taff methods and tools pr icing perf ormance infor mation se rvices, et c.) ou tso urce d fun ction s, e tc.) outsou rced func tions, e tc .) for tax purposes planning effici ency management of purchasing staff purchases etc.)
(d elivery, w arehous ing, etc.) ne twork se rvices, au th ority, se grega tio n of effor ts providers and dat a
(Recruitment, Development, Administr ation and service availabili ty performanc e employee benefit s inventory between geogr aphies methods and t ools in formation services, etc.) disposit ion of ass ets du ties, etc.) ance information staff
Performance Management) Impr ove profit ability of
Acquire c ompanies Improve t erms with Improve logi stics Optimize tax benef its Impr ove incorporation Continuously track Improve access to
Improve incentives for Improve cross- Improve c ustomer Improve staf f Improve terms on Impr ove t erms on Impr ove terms on Improve incentives third-party product Improve cont racting Impr ove terms with Improve skills of R&D efforts through Impr ove incentives Improve t erms with Im prove term s on Improve t erms on associat ed with s elf- Strengthen tr aining/ Improve Improv e incentiv es
IT Strategy and Management wit h relationships in serv ice providers performance Improve terms on of ris k analysis in and manage the and distr ibution of
product development selling/up-selling service and retention incentives ar ound leas ed sales assets leased service assets leased assets around IT/network and service providers and negotiati on skills financial manag ement utiliz ation of tax and around procurement servic e providers me rchandise leased service assets constructed assets edu cation of board process inno vation around asset
(Design, D evelopment, Deployment, Operations and targeted customer and innovation skills of s taff skills of s taff marketing ef ficiency (co mp uters, v ehicle s, e tc.) (com puters, ve h icles, et c.) (comp uters, veh icles, etc .) eff iciency of procurement staff ( in fo rmatio n service s ,
staff economic dev elop- effic iency (outsourc ed functio ns, e tc.)
management pur chases (c omputers , vehicles , etc.)
production equipment and audit committees business planning realization of project performance skil ls of staff development
(payroll, b enefits , training , (pla nt, facilit ies, in tern ally-
Performance Management) segment s etc)
c on su ltant s, etc.) methods and tools use d softwar e, etc.) (in te rna l a nd e xte rnal risk) benef its informat ion
ment incentives
Other Shared / Cor por ate Servi ces Improve management
Build customer Improve t erms with Impr ove servi ce and Improve terms with Improve incent ives Impr ove materials Im prove management Optimize expense vs. Alig n compensation Integrate tax oppor- Improve management
Acquire companies Improve staff service provi ders Improve management Impr ove tax collection of international staff Improve incentives Improve depth
(Real Estat e, Procurement and Other) Acquire c ompanies in satisf action and support performance ser vice providers cost s around financial performance Improve management of trade and indirect Improve management capitaliz ation of c osts Improve terms on IT and incentive systems tunit ies and is sues of organizational Improve career Develop and ut ilize
aligned with product incentives for cross- (re searchers , informa tio n of trade/ indirect taxes and remittance around procurement and breadth of staff
targeted geographies retentio n into staff management (contra cto rs, ne twork (immigra tion, payr oll, staff management management of transfer pricing tax es (s ales/use , VAT, of tr ansfer pri cing (M& A co sts, R&D cost s, sys tems with strategies, values into business planning change in support of options and pat hs unique tax expertise
All Process Groupings strategies selling/ up-selling se rvices, ad vertising (sa le s/use, VA T, GST, etc.) processes service s, con su ltants, etc.) eff ic iency etc.) tec hnical skil ls
incentiv es ch ann els, et c.) methods and tools supp ort, internatio n al equity , efficiency methods and t ools GST, e tc. ) and ethics processes initiatives
etc.)
(Action may apply t o all processes)
Improve mar keting Improve terms on Manage payr oll tax Im prove Improve tax benefits
Improve methods and Improve methods and Improve sales Improv e retention Improve sales Impr ove tracki ng and Improve product ion Improve servi ce of compensat ion and Align management
Note: Many actio ns could logically be associa ted with tools for managing tools for managing performance performance and advertis ing perf ormance purchased and leased impacts of bu siness Opt imize utilization of Improve terms with perfor mance me rchandisi ng perf ormance Impr ove leadership Improve program/ and staf f incentives Improve recruiting
performance recov ery of indirect available sales/use financial servic es per formance benefit programs and managem ent project management
other or multiple process groupings. For example, sales and marketing innovat ion management management management ass ets (PC s, se rve r s, initi atives management management with com pany effectiveness
management taxes (sales/use , VAT , networ k equip men t, lease d (M&A, co ns olida ti on, tax exemptions providers ma nagement (de ferred an d equ ity-b ased skills of executives skills of st aff
many cust omer and product actio ns are likely to have performance performance methods and tools method s and too ls met hods and tools GST, etc.) lin es, e tc.) methods and tools met hods and tools comp ; retirem ent a nd performance
methods and tools restructu ring, re lo cation etc .) me thods and tools hea lth ca re b e nefits, e tc.)
heavy I T and HRcomponents.
Improve profitabilit y of Improve/consolidate
IT performance Util ize available Improve management Impr ove executive Improve monet ary Improve mechanisms
R&D efforts through Impr ove order Improve identification Improve vendor
utilization of tax and management management federal, state and of indirect tax es and application of development , management skills of and non-monetary for collect ing and
methods and tools local employment/ (sales/u s e, VAT, c ustoms recruiting and recognit ion of staf f implementing
economi c develop- methods and t ools d uties, e tc.) R&D tax incentives staff
ment inc entives (utiliza tio n, pe rfo rmance, training incentives succ ession planning cont ributions employee ideas
capaci ty plan nin g , etc.)
Ensure adequate
Improve HR Improve proc urement document ation of Improve talent Bui ld innovat ion and
Improve utilization of per formance per formance improvement into
telecom t ax incentives significant tax management models
(credit s, exempt ion s, etc. )
management ma nagement positions and programs rewards and
met hods and tools me thods and tools (ea rnin gs & profits, tra n sfer inc entives
pric in g, tax o pinio ns, e tc.)

© 2004. All righ ts reserved. Confidential. 0104

26 Copyright © 2014 Deloitte Development LLC. All rights reserved.

 25 min
Activity 1: Identify Improvement (Includes debrief)

Opportunities
Form groups of 5-6 participants each. Use the Client Financial Background handout
from the Case Study Handout and develop a list of potential opportunities to
improve client’s overall performance.
20 Minutes
• Discuss the data provided, and write the potential improvement opportunities in the
Potential Improvement Opportunities template provided in the Case Study Handout
(participant).pptx (Slide 11)
• Briefly explain why you identified each potential improvement opportunity, citing which
specific pieces of financial information led you to do so and why
5 Minutes
• One or two teams present their results and class discusses

27 Copyright © 2014 Deloitte Development LLC. All rights reserved.

Determine Financial Impacts
Some of the aspects to be included in the financial impact summary are:
Financial
Value Definition Financial and Business Case
Project Charter Impact
and Plan Value Analysis Summary
Summaries

• Identify financial metrics that will change as a result of the project

Quantify Project
Benefits

• For each metric, define the baseline and projected values

Define
Baselines

• Define timeframes utilized in calculations

Define
• Define fixed variables used in calculations
assumptions
• Define calculations used to estimate projected benefits

Calculate the • Calculate annual cash flow (baseline, high, and low)
estimated cash • Project future cash flow estimates and determine relevant time frame
flows (for example, 5-10 years)

28 Copyright © 2014 Deloitte Development LLC. All rights reserved.

Quality Project Costs
Here are some of the factors to consider while estimating the project costs:
Financial
Value Definition Financial and Business Case
Project Charter Impact
and Plan Value Analysis Summary
Summaries

Estimate capitalized investments (CAPEX): Evaluate one-time expenditures:

• Define capital categories of capital • Define one-time expense categories (for
investments (for example, PP&E, equipment, example, internal labor, external labor, and
and software) supplies)
• Estimate high / low costs • Estimate high / low costs
• Define years / timing of expenditure • Define years / timing of expenditure
• Define depreciation horizon / methods

Estimate recurring operational expenditures: Calculate the estimated cash flows:

• Define recurring expense categories (for • Calculate annual cash flow (baseline, high,
example, lease costs and licensing costs) and low)
• Estimate high / low costs • Project future cash flow estimates and
• Define years / timing of expenditure determine relevant time frame (for example,
5– 0 years)

29 Copyright © 2014 Deloitte Development LLC. All rights reserved.

 20 min
Activity 2: Gather Inputs and Assumptions (Includes debrief)

Form groups of 5-6 participants each.

15 minutes
• Situation: Your LCP has identified 3 key improvement opportunities where Client X is trailing best-in-
class competitors. He wants your team to focus on determining the benefits from these areas moving
forward:
o Reducing out-of-stock situations
o Improved working capital performance (e.g., inventory management)
o Improved SG&A spend
• Gauge the potential benefits around each of these areas and list them in the Business Case Data
Inputs & Assumptions template (slide 13) from Case Study Handout (participant).pptx. Make a
list of the following:
o Data you would need to ask the client for in order to build the business case
– Think about what data you would need to gather both externally as well (i.e., not from the client)
– Be as detailed as possible in your data request (i.e., for historical data, how many years do you
need?)
o Key assumptions you need to make to build the business case (e.g., improvements off
performance baselines, what discount rate should you use to calculate discounted cash flows and
Net Present Value?)
• Think about the types of analyses and specific calculations and financial projections you will
need to perform as part of the business case
5 minutes

•30 One or two teams present their results and class discusses Copyright © 2014 Deloitte Development LLC. All rights reserved.
Conduct Financial and Value Analysis
Financial and value analysis can be conducted in three stages: Build, Apply and refine.
Financial
Value Definition Financial and Business Case
Project Charter Impact
and Plan Value Analysis Summary
Summaries

Build

Apply

Refine

Conducting a financial and value analysis is an iterative process in which the case takes
shape stepwise, as client needs and data become more available.
The iterative nature of the process also provides an opportunity for regular client buy-in as
the model develops.

31 Copyright © 2014 Deloitte Development LLC. All rights reserved.

Conduct Financial and Value Analysis: Build
Here are the steps that help in building the financial model:
Financial
Value Definition Financial and Business Case
Project Charter Impact
and Plan Value Analysis Summary
Summaries

Structure the model • Structure the model according to identified drivers, available
inputs, and available estimates and assumptions
Drivers for building • Make the model as “modular” as possible, clearly separate data
the model inputs, target levels, and calculations
• BE SURE to include an assumptions page!
• Tie the drivers together to account for any interrelationships that
exist
Build out the model • Add client-specific data as it becomes available
using an iterative • Get buy-in from client stakeholders on inputs, outputs, and target
process levels
• Add complexity only when warranted (use the 80 / 20 rule)
• Continually conduct internal and external validation on the model
and its conclusions
Test model • Conduct benchmarking research to help project magnitude and
equations and timing of targeted improvement levels
structure

32 Copyright © 2014 Deloitte Development LLC. All rights reserved.

Conduct Financial and Value Analysis: Apply
Here are some of the factors that help to determine the project decision metrics and the
financial implications:
Financial
Value Definition Financial and Business Case
Project Charter Impact
and Plan Value Analysis Summary
Summaries

Conduct Financial Analysis Develop Incremental Financial Statements

To determine appropriate project decision metrics To understand the financial implications of the
(required metrics should be determined based on project being proposed, including:
client decision factors):
• Total impact on Income (Gross Profit,
• Time-phased net cash flow impact Operating Profit, EBITDA, and Net Earnings)
• Net Present Value (NPV) of cash flows • Impact on assets and equity (Current, Fixed
• Discounted Cash Flow (DCF) payback period and Total Assets, Liabilities, and Shareholder
Equity)
• Internal Rate of Return (IRR)
• Impact on Cash Flow (Operating and
Investment Cash Flow and Total Cash Flow)
• Financial value of the project (Discounted Pre-
tax Income, Depreciation, EVA, Free Cash
Flow, Non-Discounted Payback period, and
IRR)
• Financial Returns (NPV of Cash Flows, NPV of
EVA, IRR, and Discounted Payback)

33 Copyright © 2014 Deloitte Development LLC. All rights reserved.

Conduct Financial and Value Analysis: Refine
Here are some of the steps to take during the Refine phase of the financial and value
analysis:
Financial
Value Definition Financial and Business Case
Project Charter Impact
and Plan Value Analysis Summary
Summaries

• Identify inputs with significant impact and

conduct sensitivity analysis (“what if”
analysis) where appropriate
• Add value by creating scenarios (for
example, best, worst, and most likely
scenarios), running simulations, or
increasing visual understanding
• If necessary, develop a scoring worksheet to
communicate the results of the sensitivity or
scenario analyses and weight / force rank
investment alternatives
o The scoring worksheet is used to weigh tangible, intangible issues, and project risks
in order to evaluate the relative value of various investment alternatives
o Include both tangible and intangible (non-quantifiable) issues in the scoring worksheet
o It often helps to develop the scoring worksheet at the outset of the project to ensure
objective scoring
34 Copyright © 2014 Deloitte Development LLC. All rights reserved.
Business Case Summary
While creating a business case summary, develop recommendations that:
Financial
Value Definition Financial and Business Case
Project Charter Impact
and Plan Value Analysis Summary
Summaries
• Summarize project details such as description, goals, and assumptions
• Identify the financial value that will be created
o What is the total cost of achieving benefits? (Capex and Opex)
o What is the dollar value of expected benefits? (Income Statement and Balance Sheet
Benefits)
o What are the total financial returns? (NPV of EVA, NPV of Cash Flows, IRR, and
Discounted Payback Period))
o What is the timeline for implementation? (Project tollgates, milestones, key activities,
and expected duration)
• Identify the operational changes necessary to drive financial results
• Develop a Scoring Worksheet to facilitate client decision making
• Scoring Worksheets combine tangible issues, intangible issues, and project risks in order
to quantify and evaluate the relative value of each investment alternative
• Scoring Worksheets grade the individual investment alternatives using weighted decision
criteria, and the sum of the weighted grades for each investment alternative is the
alternative's score
o Usually the alternative with the highest score is chosen
35 Copyright © 2014 Deloitte Development LLC. All rights reserved.
Business Case Summary
While creating a business case summary, develop recommendations that:
Financial
Value Definition Financial and Business Case
Project Charter Impact
and Plan Value Analysis Summary
Summaries
• State how benefit realization will be tracked and monitored during the life of the project
• Focus on the action the client should take, and where appropriate, how the client should
execute
• Identify possible scenarios and associated outcomes
o Best, worst, and most likely
• Account for results of quantitative AND qualitative analyses
• Identify key assumptions and potential areas for further study
• Identify, and where possible, quantify risks to potential outcomes
o Develop risk-mitigation strategies based on likelihood and potential outcomes of risks
• Discuss next steps and key decisions for stakeholders

36 Copyright © 2014 Deloitte Development LLC. All rights reserved.

 45 min
Activity 3: Prepare Benefit Impact Templates (Includes debrief)

and Recommendation Summary

Form groups of 5-6 participants each. Use the Exercise Handout (participant) as a basis prepare benefit impact
template and recommendation summary.

30 minutes
• Use slides 16-18 from the Case Study Handout (participant).pptx for necessary assumptions and data inputs
• Go to the first three tabs “OOS Improvements,” “Inventory Turnover Improvements,” and “SG&A Improvements” –
these are mini models to capture and quantify potential benefits
• Complete the first three worksheets by filling in the cells highlighted in yellow
o The completed OOS Improvements tab will provide the NPV for potential reductions in Out of Stock
o The completed Inventory Turnover Improvements tab will provide the NPV for potential improvements in Inventory
Turns
o The completed SG&A Improvements tab will document the NPV for potential SGA reductions
• Use slides 16-18 in the Case Study Handout or the Inputs & Assumptions tab in the workbook for necessary
assumptions and data inputs
• Using the same file, calculate the potential business benefits and develop a brief recommendation for Client X based
on the results
o Which benefit provides the biggest NPV or ‘bang for the buck’
o Consider what risks may arise based on your recommendations and any potential mitigation strategies
o Given limited time and resources (budget), which option(s) should the client pursue first
• Summarize your answers on the Answer Summary template (Slide 15) of the Case Study Handout
15 minutes
• One or two teams present their results and class discusses

37 Copyright © 2014 Deloitte Development LLC. All rights reserved.

Summary
• Summary
• Resources — My Development Plan (MDP)
Summary
Now that you have reached the end of this session, you should be able to:
• A business case should be able to answer the question “Is the project worth doing?”
• Business cases provide tangible and intangible benefits
• Business cases should address both qualitative and quantitative factors
• Building a business case is a structured process with repeatable steps
• Complete business cases provide actionable recommendations

39 Copyright © 2014 Deloitte Development LLC. All rights reserved.

Resources — My Development Plan (MDP)
Visit development.deloitte.com/mdp or jump to “My Development Plan” on DeloitteNet.

Expectations
Education
Provides appropriate
Specifies the formal learning that
recommendations by career level
supports your skill development

Experience Exposure
Suggests job opportunities you Recommends a list of relationships
should gain at your level that will foster your career

My Development Plan (MDP) helps you build a strategic, relevant, and actionable
development plan by providing you with a list of recommended formal and informal
learning opportunities.

40 Copyright © 2014 Deloitte Development LLC. All rights reserved.

 Where to Go for More Information
Additional sources of information on business cases:
• Making Technology Investments Profitable: ROI Road Map to Better Business Cases by
Jack M. Keen and Bonnie Digrius, John Wiley & Sons, 2003
o Available on books 24x7 through Knowledge Exchange at:
https://kx.deloitteresources.com/G1000/Lists/AuthenticatedSite/DispForm.aspx?ID=696
• CIO Success Depends on A Credible Business Case, by Lewis Cardin, Forrester Best
Practices, October 2, 2006
o Available through Intellinet at http://intellinet.deloitte.com/
• How to Navigate Gartner’s Research on the Business Value of IT, by George A. Monseur
and John P. Roberts, Gartner Research, October 17, 2006
o Available through Intellinet at http://intellinet.deloitte.com/
• Related articles by Forrester and Gartner
• Business Case examples on Knowledge Exchange

41 Copyright © 2014 Deloitte Development LLC. All rights reserved.

 Additional Resources
• Additional information is also available on the
Value Initiative (TVI) sites
• TVI Home Page, for links to best practices
and other content areas
• ValuePrint: An Excel-based tool designed to
help practitioners determine and measure the
business value of projects or investments
o Overview presentation
o ValuePrint tool for download
o ValuePrint user guide
o Recorded webinar
o Sample ValuePrint tool with populated data
• ValueLink, for access to FIT’s, improvement
actions and
metrics
• EVM for Enterprise Value Map materials
• Value Best Practices for business case
examples (e.g. PLCB)

42 Copyright © 2014 Deloitte Development LLC. All rights reserved.

 About Deloitte
Deloitte refers to one or more of Deloitte Touche Tohmatsu, a Swiss Verein, and its network of member
firms, each of which is a legally separate and independent entity. Please see www.deloitte.com/about for
a detailed description of the legal structure of Deloitte Touche Tohmatsu and its member firms. Please
see www.deloitte.com/us/about for a detailed description of the legal structure of Deloitte LLP and its
subsidiaries.

Copyright © 2014 Deloitte Development LLC. All rights reserved.

Member of Deloitte Touche Tohmatsu
43 Copyright © 2014 Deloitte Development LLC. All rights reserved.