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GRANITE CONSULTING

GRANITE CONSULTING. Project Leaders Breakfast August 2 nd 2011 Facilitator Pete Houihan Presents “Use or Excuse” A Business Case vehicle to achieve a personal quest or tool to ensure effective employment of a firm’s capital?. GRANITE CONSULTING. Introduction

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GRANITE CONSULTING

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  1. GRANITE CONSULTING Project Leaders Breakfast August 2nd 2011 Facilitator Pete Houihan Presents “Use or Excuse” A Business Case vehicle to achieve a personal quest or tool to ensure effective employment of a firm’s capital?

  2. GRANITE CONSULTING Introduction • Have you ever worked on a project and wondered why the project was being undertaken? • Have you been part way through a project and believed that the project was not worth continuing anymore? • Have you felt that the reasons for carrying out the project were not based on a sound foundation?

  3. GRANITE CONSULTING What is a Business Case? • PRINCE2 Business cases will contact justifications for a project such as value for money for what is to be done and why it should be done now. • “Central to the business case in the value proposition: what value shall the organisation get form investing in this project. This may sound obvious, but the value proposition if often largely missing in most business cases because they’re the result of upside down thinking.” • (Jedd Simms: Capability) , Management / Totally Optimised Projects www,cio.com.au, 25 August 2009)

  4. GRANITE CONSULTING Key Questions for a Business Case? • Why do we need to undertake the project? • What are the potential costs? • What are the business benefits? • Definition: Quantative or Qualitative? • Capture: How do we measure them? • Accountability: Who is responsible for benefit delivery? • What are the risks? • How long will the project take? • How often will the rationale (business case) be reviewed? • When will a Post Investment Review (PIR) be conducted?

  5. GRANITE CONSULTING Examples: Good or Bad? Channel Tunnel: Completed in 1994. It is the second longest rail tunnel in thee world. At completion, the whole project had cost around 10 billion pounds, which was an overspend of about 80%. Once completed, the tunnel operated at a large loss; 1.33 Billion Pounds in 2003 and 570 Million pounds in 2004. The volume of passenger and freight traffic was less than the forecasts – only 30% and 24%, respectively. UK: Currently there is a proposal to build a high-speed rail link between Birmingham and London at a cost of 32 Bn Pounds / 48 Bn Pounds. All-party transport select committee suggests an economic benefit of 20.6Bn Pounds or which 5.7Bn / 8.6Bn Pounds is derived from time savings for travellers.

  6. GRANITE CONSULTING Thank you. On Behalf of Granite Consulting, we would like to extend a sincere thank you to those who contributed and attended this morning’s session. For inquiries regarding today’s, or future Granite Consulting Breakfast Events, contact Marketing & Communications Manager, Erica Keppel on 03 9094 0999 or email erica.keppel@graniteconsulting.com.au

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