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Better Business Cases “Investing for change” Overview

Better Business Cases “Investing for change” Overview. Background. Cabinet Visibility of future decisions Confident investment decisions Treasury response Portfolio management Business case development. Opportunity for greater influence through better strategy and planning.

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Better Business Cases “Investing for change” Overview

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  1. Better Business Cases “Investing for change” Overview

  2. Background • Cabinet • Visibility of future decisions • Confident investment decisions • Treasury response • Portfolio management • Business case development

  3. Opportunity for greater influence through better strategy and planning Better Business Cases Visibility to inform the portfolio Projects and programmes underway 10 year view of intentions Benefits Aligning and balancing with direction (govt priorities) Individual intentions fit under a wider lifecycle, that can be influenced and balanced within constraints before business cases on programme and projects start to be developed

  4. How BBC fits with Strategy and Policy

  5. Why do I need to know about Better Business Cases? • Decision makers/Investors-confidence ! • Management-confidence ! • Business case developers-fit for purpose • Reviewers- fit for purpose • Private sector service providers-early engagement

  6. Why two thirds of programme and projects succeed? • Strong strategic fit • Senior management engagement • Stakeholder engagement • Focus first on value-for-money then funding • Supply side engagement • Systematic approach Differences between programmes and projects We have built these into NZ version of BBC

  7. What is a better business case and what is expected What is a Better Business Case? • BBC (UK) supported by part of ILM tool (Australia) • Principles • Campaign to deliver benefits, not a document to get money • Thinking not writing • Stakeholder engagement-way of working together • Fit for purpose analysis • Smart procurement of consultancy support • Coherence and cohesion What is expected? • Depends on scale and risk • 5 case model

  8. Who is involved Sponsor engaging early with reviewer on: • type of business case required to support the decision required • level of effort and stakeholder engagement required Key “senior” stakeholders do the BBC thinking together: • highly influential and highly impacted • include the writer early • include the reviewer early • include supply side early

  9. When does it apply? • State sector-capital • Canterbury Recovery • National Land Transport Programme • Auckland Plan • Tertiary Education • Local Government • Good practice

  10. BBC Overview • Why do I need to know about better business cases? • Outcomes • Stakeholders • What is a Better Business Case? • Attributes • Principles • What is expected? • Depends on scale and risk • 5 case model • Who needs to be involved?

  11. The 5 case model and the process

  12. The 5 Case Model Any business case addresses 5 key questions: Is there a compelling case for change? Does the preferred investment option optimise value for money? Is the proposed deal commercially viable? Is the spending proposal affordable? How can the proposal be delivered successfully?

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

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

  15. How BBC fits with Strategy and Policy

  16. Planning the Better Business Case Right sizing effort – the scoping document

  17. The Goldilocks Zone In the case of fairy tales Not too hot/not too cold In the case of life on planets Not too close/not too far away In the case of Better Business Cases Not enough effort/too much effort Just right

  18. Use the scoping documents to obtain sponsor and reviewer agreement on how to apply BBC • What previous decisions have been made • Programme or project approach and then the type of business case • Right sizing the capacity/capability of the team • Right sizing the effort and engagement • What decision is being sought

  19. Stakeholder Management Business Case Capability Subject Matter Focus Stakeholder Focus Governance High Influence Co-production Content e.g. service delivery Change mgmt e.g. stakeholder engagement Power and Influence Mass Communication Empower Business Case e.g. cost/benefit analysis Assurance and Decision Making e.g. monitoring function Change Impact Low High Project Management

  20. Key considerations • Complete the scoping document at the beginning of each phase • Fill out what you know - update as you know more • Use the document to support your thinking, discussions and recording the agreed way forward • Involve your monitoring/reviewer function early • It is a tool to support you – not a prescriptive template – so modify to meet yours and your monitoring function’s needs

  21. Where to get support and the national evaluation and way forward

  22. Where do I get support-on the website ? Overview information • Quick Reference Guide • Presentation • Overview booklet • Scoping document (programme or project) Detailed information for each type of business case: • Scoping document, to agree effort • Guidance booklets, to understand the standard • Word Template, to write the business case • Power point “one pager”, to present the business case Links to related processes

  23. Where do I get support-book on line ? Training programme (Monthly in Auckland, Wellington, Christchurch) Bi-monthly Hamilton/Rotorua • Foundation Course (knowledge-half day) free • Practitioners Course modules 1 and 2 (skills-2 full days) cost • Reviewers Course (skills-full day) cost Tailored support • Training for high priority public sector organisations • Executive intensive session(45 minutes) free

  24. 2013 2013 National Evaluation and way forward • Evaluation findings • Public Sector Organisations • Minister of Finance • Way Forward • Improve capability of the priority public sector organisations • Add case studies and webinar communities of practice • Expert Pool pilot • Organisational capability pilot • Provide advice to improve reviewer capability

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