Developing a Business Case for Records Management Projects

1. Developing a Business Case for Records Management Projects Presented by: Lauren Nathanson, CRM May 20, 2010

2. Agenda • What is a Business Case and Why Should I Create One? • What are the Components of a Great Business Case? • I’ve Created a Business Case, Now What??? • Case Study • Mini-Workshop • Closing / Q&A

3. What is a Business Case? A business case is a tool that supports planning and decision making – including decisions about whether to buy, which product to bring to market, which projects to fund, which vendor to choose, or when to implement, for instance. The business case addresses, at a high level, the business need that the project seeks to meet. It includes: • the reasons for the project • the expected business benefits, • the options considered • the expected costs of the project • the expected risks

4. Why Should I Create One? • A business case has 3 important roles: • Captures knowledge • Vehicle for receiving approvals and funding • Provides a consistent message to all audiences • What a business case says about you: • You are a professional • You care about your project • You are prepared (you have thought through the project’s implications) • You have initiative

5. Components of a Business Case • Executive Summary • Background • Objectives • Options • Resources • Cost • Benefits • Recommendation

6. Some Notes on Financial Metrics • Be sure to include internal costs (i.e., employee effort, time spent training) as well as external costs • Show financial benefits over time (Year 1 vs. Year 3, for example) • Calculate a Return on Investment (ROI)

7. I’ve Created a Business Case….Now What??? • Get buy-in from an influential sponsor • Note: Don’t wait until the business case is complete to get this support – Keep this sponsor in the loop from the beginning • Meet with final decision makers to discuss your business case • Present them with a full-color, bound version • Work with your sponsor to get project approval and budget • Refer back to the business case during the project to make sure that you are staying on track with costs and benefits

8. 7 Ways to Get the Ear of Top Management • Link the project’s benefits to “goal statements” or commitments they have made in the past. • Gather benchmarking or competitive data that shows you may be getting left behind. • Ask another executive to sponsor your project and have them give a presentation on why they support you. • Build a groundswell of interest among your coworkers. • Gather data on customer preferences and expectations. • Introduce your executives to other executives who are pursuing similar projects. • Give them a great article or book on the topic with a cover sheet explaining what you think the opportunities are for the organization.

9. Case Study Should the HR Department Move to Electronic Employee Files?

10. Case Study • Background • All employee files are currently in paper format • The department is currently managing 2400 active and 6000+ inactive employee files • The department is not all located in one central location which makes sharing information difficult and time consuming • If records are created at a remote location, they must be mailed to Headquarters • The department is considering imaging the existing paper files and moving to an electronic new hire/benefits enrollment process

11. Case Study • Objectives • Employee Files can be accessed by HR employees not located at Headquarters • Decrease in departmental mailing expenses • Decrease in time spent searching for records • Decrease in time spent “sharing” records • Increase in reliability of Employee File

12. Case Study • Options • Create an electronic process (go-forward) but do not scan existing files • Create an electronic process (go-forward) and scan existing files using an internal resource • Create an electronic process (go-forward) and scan existing files using an external resource • Do nothing

13. Case Study • Resources • Scanning Clerk (25 hrs/week) • Scanner/Imaging Software (existing) • Records Repository (existing) • Programmer – Estimated 130 hours • E-fax Solution

14. Case Study • Costs

15. Case Study • Benefits (financial)

16. Case Study • Return on Investment (ROI) • 5 Year ROI • Investment: $39,659 • Savings Over 5 Years: $284,764 • Net Savings: $245,105 • ROI = (Net Savings/Investment) x 100 = 618% • For every $1 of investment, this project will return $6.18 to the company!

17. Case Study • Benefits (Non-Financial) • Employee Files can be accessed by HR employees not located at Headquarters • Decrease in departmental mailing expenses • Decrease in time spent searching for records • Decrease in time spent “sharing” records • Increase in reliability of Employee File

18. Case Study • Recommended Solution Create an electronic process (go-forward) and scan existing files using an internal resource

19. Questions? Contact Information: Lauren Nathanson Records Manager Extra Space Storage 801-365-4639 lnathanson@extraspace.com