Business Case Pratictioners Forum: I mark the homewor, Kevin Briggs, 22 April 2016
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The document outlines the steps and considerations for preparing a comprehensive business case for projects, including new products, reorganizations, and public sector cases. Key elements include ensuring factual accuracy, strategic alignment, thorough economic analysis, detailed commercial arrangements, and effective management plans. It emphasizes the importance of clarity, concise presentation, and regular communication with reviewers throughout the approval process.
Business Case Pratictioners Forum: I mark the homewor, Kevin Briggs, 22 April 2016
- 1. I Mark the Homework Kevin Briggs
- 2. Purpose of Review • To ensure that the business case is sufficiently comprehensive and robust for senior management to make a decision. – A new Product – A new Project – A re-organisation
- 3. Reviewing the Business Case • Does the business case “stack up”?
- 4. Who is the Readership? • Project stakeholders • Sponsors – baseline for managing the Project • IPA Gateway Reviewers • public sector cases published – available to the public, academia and press
- 5. Preparation • Meet with your Reviewer regularly • Be clear what is required – (Templates) • Be clear on what the criteria and standards are – (Guidance, Checklists) • Get a clear understanding of the review and approvals process. • Be aware of the other pre-requisites and external dependencies for the case approval • Plan it out! • Seek Advice
- 6. What gets high marks? • A clear succinct explanation of what it is all about in ‘lay’ terms – a compelling Executive Summary • Illustration – diagrams and pictures ‘save a thousand words’ and add clarity and interest ’.
- 7. What gets high marks? • Make it compelling throughout i.e. a good read – with the ‘case for change’ as the central plot, believable characters and scenarios backed up by evidence. • Keep it as brief, proportionate to the complexity and investment and use Appendices to reduce the reading effort and maintain the flow.
- 8. Strategic Case • Does it make a clear “Case for Change • Does it lead to logical and SMART spending objectives related to the “Case for Change and the proposed scope • Is the information provided factually accurate and evidenced where required? • Strategic benefits and risks stated
- 9. Strategic Case • Often too lengthy • Has irrelevant content • Not a Sales Brochure for the Project • Shouldn’t be where the preferred option is presented.
- 10. Economic Case • The real guts of the business case – gets the most marks! • Are there sufficient options in a longlist? – Use ‘Options Framework’ – Not unusual to only see two options: “Either we do what we are suggesting or we do nothing”
- 11. Economic Case • Are the options at the right level and well defined? • Are Status Quo and Do Minimum considered properly and consistently with other options
- 12. Economic Case • Is there robust analysis of the options? – the Minister or the CEO made it quite clear which option we are going with – we don’t have time for all that. – there will be dire consequences and reputational damage if we don’t do that way
- 13. Economic Case • Benefits • Much more effort is being put into benefits identification and quantification but can sometimes be considered spurious - Are they credible and evidenced? Is there cause and effect? • Are they correctly classified? • Any suggestion they are double counted? • Disbenefits considered • Are the benefit profiles realistic and linked to implementation?
- 14. Economic Case • Risks – Demonstrate that most likely risks have been considered and they are realistically quantified or qualitatively assessed where necessary
- 15. Economic Case • Risks – Business Cases are typically over-optimistic. – Risks analysis can sometimes be superfluous: – e.g. Major projects with no significant risks • Business cases often present the strategic risk of “delays to business case approval”.
- 16. Economic Case • Costs – All attributable costs considered – Evidence of sign-off by Finance Business Partners and accountant assurance – Optimism Bias applied correctly – Technical economic analysis approach correct
- 17. Economic Case • Sensitivity (Benefits, Costs, Volumes) • Net Present Value • Benefit Cost Ratio • Payback Period • Lots of bespoke ratios in cases – may not always be helpful to the case.
- 18. Commercial Case • Clarity about what is being procured. • Set out the commercial arrangements to underpin the delivery of the strategic, economic and financial case • Need the relevant detail appended or available: – OBC (Procurement Documents) – FBC – (Contracts) – Legal Opinion
- 19. Financial Case • How much will it cost? • Is it affordable in terms of capital and revenue over its life? • Appropriate level of risk and contingency? • Are there written confirmations of funding? • Have Finance Business Partners assured and signed off? • Has the Director(s) of Finance signed off affordability?
- 20. Management Case • Plan for Benefits Realisation – check linkage to the economic, commercial and financial cases. • Clear ownership of benefits delivery and senior level sign up • Clear delivery plans. Up to date and aligned to the economic, commercial and financial cases. • Contingency Plan
- 21. Checking before submitting • Subject Matter Experts review • Quality of document content – Defamatory content – Typo’s – Missing Appendices – Missing Figures or Tables – Table of Contents not updated
- 22. Checking before submitting • Be honest about shortcomings in the case e.g. affordability • Check the flow and consistency of the story particularly consistency between the sections or ‘five cases’
- 23. After Submission? • Reviewers will have questions: – Replies should be timely, thorough and detailed • Communication - Keep in touch with the reviewer if things are changing or there are problems. • Reviewer may be able to help with problems or escalate appropriately
- 24. I Marked the Homework Kevin Briggs
- 25. This presentation was delivered at an APM event To find out more about upcoming events please visit our website www.apm.org.uk/events