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Background
• Cabinet
– Visibility of future decisions
– Confident investment decisions
• Treasury response
– Portfolio management
– Business case development
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Visibility to inform the portfolio
Opportunity for greater influence through better strategy and planning
Better
Business
Cases
10 year view of intentions
Projects and programmes underway
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
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How BBC fits with Strategy and Policy
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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
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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
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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
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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
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When does it apply?
– State sector-capital
– Canterbury Recovery
– National Land Transport Programme
– Auckland Plan
– Tertiary Education
– Local Government
– Good practice
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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?
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The 5 Case Model
Any business case addresses 5 key questions:
1. Is there a compelling case for change?
2. Does the preferred investment option optimise value for money?
3. Is the proposed deal commercially viable?
4. Is the spending proposal affordable?
5. How can the proposal be delivered successfully?
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The 5 Case Model
The 5 key elements of good practice business cases
Compelling case for change - strategic fit & business needs Achievable and can be successfully delivered
Management
Strategic
Economic
Preferred option optimises value for money
Affordable within available funding
Financial Commercial
Commercially viable
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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
The level of
S S E C F M
Strategic
Assessment
Programme Business
Case emphasis of each of the five cases depends on the type of business case
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 S E C F M S E C F M S E C F M
Strategic
Assessment
Indicative
Business
Case
Confirm fit with strategy and the need to invest
Confirm way forward with short-listed
Project/s (Other) options (consider non-traditional procurement)
S S E C F M
Detailed
Business
Case
Confirm best value for money option, outline potential deal and delivery plan, assess affordability.
Implementation
Business Case
Confirm supplier offering best value, detailed commercials, confirm affordability. detailed management and delivery arrangements
Strategic
Assessment
Single Stage Business
Case
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How BBC fits with Strategy and Policy
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In the case of fairy tales
In the case of life on planets
In the case of Better
Business Cases
Not too hot/not too cold
Not too close/not too far away
Not enough effort/too much effort
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• 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
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Subject Matter
Focus
Stakeholder
Focus
Governance
Content e.g. service delivery
Change mgmt e.g. stakeholder engagement
Business Case e.g. cost/benefit analysis
Assurance and Decision
Making e.g. monitoring function
Project Management
High
Influence
Coproduction
Low
Mass
Communication
Empower
Change Impact
High
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• 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
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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
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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
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2013 2013
– 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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