Developing a Business Case

1. Developing a Business Case Becky Pezzoni, CRM ARMA Triangle Chapter January 10, 2019

2. Agenda Defining the Situation Establish the Project Scope Gather Facts & Data Compare Costs and Benefits of Possible Solutions Walk-through: Sample Analysis

3. Define the Situation • Background • Why are you talking about it? • Current Conditions • Where do things stand today? • Goals / Target • What specific outcomes are required? • Analysis • What is the root cause of the problem? Choose a problem analysis tool that shows cause and effect! • Proposal • What is your proposal to reach the target condition or future state • Plan • What activities will be required for implementation and who will be responsible for what, when? • Follow-up • Ensure ongoing PDCA

4. Current Conditions • WHAT is the problem? • WHY is it a problem? • WHERE is it a problem? • HOW is it a problem? • WHEN is it a problem? • WHO is it a problem for? Describe the current situation as specifically as possible without alluding to causes

5. Problem Statement • The Starting Point to further investigate a problem • Provides a clear, shared understanding of the problem • Without one, we may not be working to solve the correct problem • Does not describe the causes of the problem • Key questions to answer to clearly define the problem statement: • What is the problem? Be specific, based on facts • What do we observe occurring? Physically, through use of data • Where is it appearing? Geography, system, process, supplier, etc. • What is the impact of the problem? For example, on the business - so what? • Can we quantify the problem / impact? Qualitative and quantitative

6. Sample Problem Statement • During 2018, an average of 500 new client cases were initiated monthly, using a 10 page paper intake form for each family member. The paper forms consume 30 1.2 cubic foot boxes in storage every year, leading to the storage of more than 600 boxes from the past 20 years. Physical storage of such records over their retention period costs the organization $18,000 and due to the volume, retrieval is very cumbersome. This results in loss in public confidence, risk of fines, and potential delays in delivery of vital services to our clients.

7. Establish the Project Scope • Describe the work to be accomplished • What’s the purpose or business need for this project? • Is there a relationship to other projects? • Who are the stakeholders? • Who are the project members, what is each person’s responsibility? • What work is out of scope for this project?

8. Gather Facts & Data • For current situation, what drives cost? • For proposed solutions, collect cost estimates • Quantify benefits, including cost avoidance • Compare alternative solutions • Compare costs and benefits

9. Cost-Benefit Analysis • Establishes an economic framework to evaluate the viability of a project • Begins with the gathering of facts and data about the situation • Information gathered and analyzed enables and supports decision-making and the choice among various alternatives • Provides the Return On Investment (ROI) • The results of this analysis therefore allows you to compare go and no go decisions, and the implications of each • Sound analysis supported by verifiable facts & data facilitates leadership support and resource allocation

10. Define the Situation • Background • Scantastic Corporation is bursting at the seams with growth, and we don’t have enough room for staff to have on-site offices. • Current Conditions • We have valuable office space in use for storing our critical records, and we can’t yet get rid of the paper records because they have on average ten more years of retention. • Goals / Target • Find a way to have room for new staff without acquiring or leasing new office space • Analysis • We leased office space that is within our budget and are not able at this time to expand our physical footprint for at least two more years. • Proposal • Reassess usage of existing space. • Plan • Take inventory of office space in use for anything other than personnel. • Come up with alternatives with tangible and intangible costs and timelines. • Conduct RFPs if and where necessary. • Follow-up • Ensure office space does not revert to storage in the future. (PDCA!)

11. Refresher: Problem Statement • Key questions to answer to clearly define the problem statement: • What is the problem? Be specific, based on facts • What do we observe occurring? Physically, through use of data • Where is it appearing? Geography, system, process, supplier, etc. • What is the impact of the problem? For example, on the business - so what? • Can we quantify the problem / impact? Qualitative and quantitative

12. Problem Statement • What is the problem? Scantastic will be hiring seven new staff in the next six months, and we have space for just two people. • What do we observe occurring? We retain our records in their original paper format and have the equivalent of 480 boxes of paper in storage that must be retained for at least 10 more years. • Where is it appearing? Five offices on the third and fourth floor of Building 1 are currently used as file rooms, with 600 linear feet of shelving in total • What is the impact of the problem? If we retain the offices as file rooms, we will need to lease the equivalent of five new offices, at $31 / square foot • Can we quantify the problem / impact? If we can find an alternative solution for retaining these paper records, we can avoid the additional lease expense of $15,500/month for new office space.

13. Establish the Project Scope • To be accomplished: Evaluate alternatives for materials currently stored in office space • Purpose: To avoid expansion of real estate / leasing budget • Systemic relationships: Ensure Scantastic is appropriately managing records for their full retention in accordance with corporate policies and procedures • Stakeholders: All employees, but specifically the leadership team and the staff of Finance and Marketing, who are in need of additional office space for new staff • Project Steering Team: Sonia Smith, Sponsor; Leila Ship, Team Lead, Rebecca Records, Records Manager, work teams to be defined • Out of Scope: This project will not address process reengineering and office automation or office space conversion (e.g. we will continue to house employees in individual offices, due to the nature of our work and corporate culture)

14. Gather Facts & Data • Current Situation: • Seven new positions are expected to be filled in the next 6-9 months • We have two open offices to house new staff • 500 square feet of prime office space is currently in use for paper file storage • An estimated 1.2M sheets of paper consume these 600 linear feet of shelving • Gather estimates for three alternatives, defined by the project team: • Scanning paper / converting paper records to digital images • Shifting paper records to secure offsite storage for the duration of their 10 year retention • Leasing additional office space • Compare alternatives and the cost and benefits of each

15. Business Case Model Demo

16. Summary

17. Questions? Slides and Business Case Model sample will be posted on ARMA Triangle Website: http://www.armatriangle.org/meeting-presentations-and-materials.html Model is just a starting point – make it your own! Disclaimer: no guarantee of accuracy or completeness, individual situation and results will vary!