Top 10 Tips
Preparing a business case/plan for investment in
Test
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Objectives
“To provide some guidelines to secure investment in Test”
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Business Case/Planning Services from Insight
Education & Training
•Top 10 Tips (1 Hour overview)
•Workshop (1/2 Day)
•2 Day training course “Preparing a Plan “
Services
•Preparation of QA & Test Business Case
•Business Case Review
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What & Why
“It all comes down to the numbers”
•Do they add up
•Are they Understandable
•Are they traceable
•Are they credible
•Are the believable
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Top 10 Tips for Test Business Case/Plan
Brainstorm, What do you think they are?
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Top 10 Tips for Test Business Case/Plan
Just in case we don’t get off the early slides
here is our list
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Top 10 Tips
•Understand the environment this investment must impact
•What are the business and test drivers ?
•Who are the primary test stakeholders & what are their needs ?
•What QA & Test performance measures are in place today and
How do we want them to change ?
•What tools are available to the team to prepare the case/plan
•Who can help ?
•Options & Alternatives
•Assumptions
•Risks & Contingencies - sensitivity
•Demonstrate successful ROI – It will make the next time easier
Copyright © Insight Test Services 2008
Conclusions
• Link Test Plan/Case to business goals
• Alignment
• Identify the KPI’s you want to impact
• These will lead to the drivers
• Validate Assumptions
• Credibility of numbers
• Do the numbers
• Include sensitivity analysis
• Communicate the Value Prop.
• Quantitative & Qualitative
Copyright © Insight Test Services 2008
Insight
• Software QA, Test & Compliance Solutions
•
•
•
•
•
Consulting: Assessment, Advice, Support
Capability Building: Training, Coaching
Test Management & Teams: (Fn& Non Fn)
Managed Test Solutions (Out-sourcing)
Resources: Specialists & Experts
• Full Procurement and Development Lifecycle
best practices (Process, Tools, Stds,
Regulations)
• Business Driven independent advice and
services (Benefits & Results focus)
• Easy to work with !
Copyright © Insight Test Services 2008
A Case or a Plan
Business Plan:
•Outlines to stakeholders where and how the unit
will bring value to the organisation.
•Sets the direction and road map for
stakeholders to deliver the value
•Benchmark to measure against
Business Case:
•Outlines to stakeholders where a specific
investment will deliver measurable value to
the business.
•Clearly outlines the steps to achieve
•Benchmark to measure performance against
“Both enable consensus, decision making and support”
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A Case or a Plan
Business Plan: (Global-Strategic)
•Looks at overall importance of test to the business
and target impact:
•Improved quality impact on customers and
markets.
•Information for functional performance
improvement
•How Test add value to business
Business Case: (Specific - Tactical)
•Outsourcing
•Bring back in house
•Test Automation
•Additional resources
•Test Environment
“Both enable consensus, decision making and support”
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Business Planning Model
Business Phase
Using Tools & Techniques
Understanding of Environment
Porters 5 Forces Model, Value Chain
Analysis, Core Competence Analysis.
Expectation setting and Management.
Service Level Agreements (SLA)
Value Proposition Template
Clarity of Customer Needs
Value Proposition identified
Core Competence Evaluation
Strategic Options & Competition
Planning and Managing Core
Competencies
SWOT & Force Field analysis
Vision , Mission & Goals
Team method workshop
Strategies & Objectives
Business link model & KPI template
Roles & Relationships
Stakeholder Satisfaction management
Business Plan & Cases
Template & workshop
Performance Management
Process
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Conclusions
• Link Test Plan/Case to business goals
• Alignment
• Identify the KPI’s you want to impact
• These will lead to the drivers
• Validate Assumptions
• Credibility of numbers
• Do the numbers
• Include sensitivity analysis
• Communicate the Value Prop.
• Quantitative & Qualitative
Copyright © Insight Test Services 2008
Understand The environment
Why ?
Any Corporate investment will be in the context of what is
happening internally and externally – Failure to recognise this or
changes weaken the business case.
External – Our Organisations Market Place
Competition, Regulations, Political, Geographic, Technologies,
Business Models etc
Internal – Test interfaces & Stakeholders
Methods, Processes, Tools, Make versus Buy, Competition,
Geographies, Political, Time to Market, Benchmarking etc
“Investment decisions will be made in the context of
what is happening in our environment”
Copyright © Insight Test Services 2008
Business Drivers
Why ?
They represent the underlying activities that influence the
performance of the business (costs, savings & revenues). If the
organisations market is moving towards commodity costs will be
a big driver so investments must create savings as an example
External – Business Drivers
New or changing Markets, Offerings, Products, Competition,
Channels, Business Models, Activities, Locations, Regulations.
( Revenue streams from above, or costs driven by activity or
headcount)
Internal – Test Drivers
Headcount, Defects, Waiting Time, No of projects, No of
components, No of changes, No of releases, No of test cases,
No of environments etc
“Financials are underpinned by drivers”
Copyright © Insight Test Services 2008
Test Stakeholders & their needs
Why ?
They are the customers & suppliers of test who stand to benefit
from any investment, they will have a direct or indirect influence
on any investment decision (They may compete for scarce
funds)
Who are They and what are their drivers ?
End customer, End User, BA’s, Development, Management,
Business Groups, IT etc – each may have slightly different
drivers/priorities and can create drivers on test
How does/will test address their needs ?
Test is an information and service provider, how do they
influence the priorities of stakeholders and how will this
investment play into this.
“QA & Test Metrics usually underpin test drivers”
Copyright © Insight Test Services 2008
QA & Test Performance indicators (Metrics)
Why ?
We measure what is important and what we want to improve
and/or change – they often underpin performance, cost
and/or value
indicators
Defects, found at test stage, test cycle time, test cases, test set
up, execution time, rework, re document, platforms, training
days delays, headcount – may be measured in test, up or down
stream
Activity and valuing indicators
We can put a price/cost on most indicators or the activity that
causes the indicator value.
Any investment will be targeting improvement in one or more
indicator
“No metrics, No Drivers, No Case”
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1
What tools are available ?
Why ?
They provide a framework for the team to analyse the
environment and prepare a business case based on facts and
evidence.
Understanding current and future position
Porters 5 forces model, Value chain analysis, Core Competence
analysis, SWOT, Force Field analysis etc
Building Up Data & Information (Spreadsheets)
Metrics, Indicator, Driver, Unit cost, Quantity, Period costs actuals
and targets.
1
“They are not complicated and are proven”
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Who can help ?
Why ?
All the information and skill may not exist in the Test Group
The stakeholders
They may have data, facts and opinions that assist in building
the case/plan inclusion of their inputs may strengthen the case.
If they have misinformed opinions/facts then you are aware of a
possible objection to proposed plan
Finance
These are the numbers people who have the skills to support
preparing a business case/plan they also have lots of
information that can be useful.
“Ask and you shall receive”
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Options & Alternatives
Why ?
There is usually more than one way to achieve a goal. It is
important to have considered the options
Consistency
Evaluate each option on a fair and consistent basis, use the
indicators, activities and valuation approaches to produce
evidence, include both subjective and objective information
Make a recommendation
Based on your evidence and analysis make a recommendation
with supporting benefits and build up the case.
“Be prepared to justify”
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Assumptions
Why ?
Because they are important, they make the decision
information transparent and allow decision stakeholders to
challenge if they have relevant information
They underpin the evidence
Credible assumptions underpin every business case and plan.
You will never have every piece of information or be able to
predict the future accurately.
State the Basis of the Assumptions
Provide information and evidence as to why the assumptions
should be considered valid.
1
“We all make them – so make them transparent”
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Risks and Contingencies
Why ?
As the future can not be predicted accurately, it is important to
demonstrate you have considered what could go wrong (or
just not happen to plan) and allow for it in the business case
and plan.
Risks
Assumptions may be incorrect, the environment might change,
look at risks within the investment minimise or neutralise
Sensitivity
Demonstrate worst and best case situation within the plan, stress
the variables
1
“Builds confidence with the decision makers”
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Demonstrate the ROI
Why ?
Because any investment is not completed until the benefits
have been measured and realised. In addition it strengthens
credibility.
Evidence
Continue to measure the KPI’s and activities, measure the
benefits , it creates useful information for the future
More importantly
It allows you change if you identify wrong assumptions, it avoids
throwing good money after bad, it allows formal and successful
closure of a plan.
“Always close”
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1
Conclusions
• Link Test Plan/Case to business goals
• Alignment
• Identify the KPI’s you want to impact
• These will lead to the drivers
• Validate Assumptions
• Credibility of numbers
• Do the numbers
• Include sensitivity analysis
• Communicate the Value Prop.
• Quantitative & Qualitative
Copyright © Insight Test Services 2008
Insight
• Software QA, Test & Compliance Solutions
•
•
•
•
•
Consulting: Assessment, Advice, Support
Capability Building: Training, Coaching
Test Management & Teams: (Fn& Non Fn)
Managed Test Solutions (Out-sourcing)
Resources: Specialists & Experts
• Full Procurement and Development Lifecycle
best practices (Process, Tools, Stds,
Regulations)
• Business Driven independent advice and
services (Benefits & Results focus)
• Easy to work with !
Copyright © Insight Test Services 2008
Thanks for your attention
Questions?
www.insight-test.com
Declan.kavanagh@insight-test.com
Ireland & UK’s largest & leading specialist software
QA, Test & Validation services provider
Copyright © Insight Test Services 2008