Better Business Cases Detailed 2012

© The Treasury 1

Better Business Cases Detailed

2012

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AgendaOverview• Context: Capital Asset Management• Why, when it applies, and what is expected• The 5 Case Model • The process• Who is involved early• Where to get supportUK Lessons LearntMore about the 5 Case ModelMore about the processBusiness case deliverables

– Strategic Assessment– Programme Business case– Indicative Business case– Detailed Business case– Implementation plan

© The Treasury 3

Overview

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Context: Capital Asset Management The Capital Asset Management (CAM) Framework was endorsed by Cabinet 2008• Better Capital Planning-early visibility of decisions needed• Better Business Cases (BBC)-good information to inform decisions• Better Monitoring and Assurance• Better Reporting

Focussed first on Better Capital Planning, based on Policy and strategy.

Then focused on BBC, adapted from international good practice from:• Victoria (Australia) for Investment Logic Mapping for early problem

definition and benefit identification• UK for 5 Case Model and staged BBC approach

Currently reviewing Monitoring and Assurance

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Why better business cases?

Better business cases lead to:• better decisions• better investments• achievement of better outcomes..

Key stakeholders include:

• Decision makers- better evidence-based assurance value for money

• Management-early engagement on direction

• Business case developers-clear expectations and support

• Reviewers-early engagement and common language

• Private sector service providers-early market soundings and clearly specified service requirements

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Overview: When does it apply?

All capital proposals from Departments, Crown Agents and other Crown Entities, which meet one or more of the following criteria:

• Access to new Crown funding• Public Private Partnerships (excluding other Crown Entities)• $25 million whole-of-life cost (Departments only)• “High risk” per Risk Profile Assessment (Departments/Crown Agents only)• Asset disposals with significant policy decisions

Also being used by the Canterbury Earthquake Recovery Authority to Inform investment decisions on the Recovery Strategy.

Consider using as a good practice approach to inform decision making

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Overview: What is expected?If a proposal requires approval:

• Two-stage process for high risk and/or large scale projects

- Stage 1: Based on the Indicative Business Case

- Stage 2: Based on Detailed Business Case

• Single stage process for non high risk/low scale

• Application of the 5 case model

Potential use of Programme Business Case if the project/s are part of a wider programme

The process is about

thinking not writing

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Any business case addresses 5 key questions:

The 5 Case Model

1. Is there a compelling case for change?

2. Does the selected option optimise public value?

3. Is the potential Deal achievable and attractive to the market place?

4. Is the spending proposal affordable?

5. How will the proposal be delivered successfully?

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Management

The 5 key elements of good practice business cases

The 5 Case Model

Financial Commercial

Economic

Strategic

Applicable - strategic fit & business needs

Appropriate – optimises public value

Attractive – to supply side and feasible

Affordable – within budget

Achievable – can be successfully delivered

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How it works ? (the process)Stakeholders do the thinking together

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Who needs to be involved early?The Better Business Cases process is most successful when:

• Agencies engage with central and monitoring agencies (reviewers) in the early stages of each business case deliverable to ensure the business case will be fit for purpose. Agreement will be sought on:– Type of business case– Timing and nature of decisions required– Scale and risk of the proposal– Scope of analysis required for each case-including reviewers

criteria/evidence– Level of effort and cost for development and assurance– Scope of the engagement during the development of the business case

Use the scoping document to secure early agreement

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Where to get supportTreasury provides the following support:

Products (overview) http://www.infrastructure.govt.nz/publications/betterbusinesscases

– Quick Reference Guide– Power point presentation– Online module (website only)– Overview booklet (including scoping document)Products (detail)

http://www.infrastructure.govt.nz/publications/betterbusinesscases– Guidance booklets for each type of business case– Templates for each type of business case (word doc’s and A3 presentations)– List of agency business case examples (public sector intranet only)Training (Monthly in Auckland, Wellington, Christchurch from August)– One hour Awareness seminar for senior managers– Half day knowledge based training “Foundation Course”– Full day skills based “Practitioners Course” and Reviewers Course”– Communities of practice to exchange experiences with peers

A review is performed early each calendar year and a revised version published in July

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Enhancements planned for July 2012– Revisit brand so it differentiates between who owns BBC and who can use

BBC,

– Make guidance more generic and applicable to a wider range of applications,

– Reinforce importance of investment objectives, options and realistic do minimum,

– Redefine the value propositions by stakeholder group,

– Better demonstrate the flexibility and scalability,

– Demonstrate how the feasibility study, design, develop etc process aligns ,

– Place more prominence on early engagement with reviewers (scoping document),

– Improve how best to use the workshops to engage stakeholders during process,

– Only require first two ILM workshops (problems and benefits) for strategic assessment

© The Treasury 14

UK Lessons Learnt

Lessons from the UK

Lessons from the UK (ctd)

Where we started, some common problems… • £ billions of invested without effective business cases• Solution based, not needs based investment

• Retrospective approvals – spend then ask• Lack of interrogation – ask then get• Budgeting to availability, not need – get then spend• Negotiations seen as barrier to delivery – spend then go• Management of delivery weaknesses – go wrong…

• Sceptical Treasury• Low value investment

Lessons from the UK (ctd)

The introduction of a structured methodology to develop and present business cases (5 Case Model) has resulted in:

• Greater strategic alignment• Reduced cost (40%)• Improved efficiency and throughput• Improved outcomes• Lower delivery risks• Better evidenced VfM• Realistic and achievable “do

minimums”

Lessons from the UK continued

• 5 case model in action

Wales: 21st Century Schools Programme

• 22 Local Authorities, 1800 schools

• 20%+ surplus places

• £4Bn+ backlog maintenance

• Drip feed funding to all (whether they needed it or not…)

• Low National government – local government trust




• One National programme

• Multi-decade £6 billion investment

• Co-owned by Local and National government

• High trust (plan and wait your turn)




Impact of embedding 5 case model:•Strong strategic alignment, within projects, programmes, portfolios•Rigorous option analysis – ‘do minimums’•Maximise funding efficiency•£bns commercial negotiations- milk the supply chain•Infrastructure delivery excellence

Lessons from the UK continued• Key cultural changes

• Strategic clarity• Shared ownership between stakeholders,

understanding respective roles eg• Funder• Deliverer• Asset owner

• Actively plan, oversee and amend at all stages

• Understand who benefits and how• Live within means and get as much as

possible• Scrutiny, assessment & oversight is an

investment• Love your delivery chain – maximise the

value of your contracts• Deliver superbly

© The Treasury 22

More about the 5 case model

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Addresses 5 key questions

The 5 Case Model

1. Is there a compelling case for change?

2. Does the selected option optimise public value?

3. Is the potential Deal achievable and attractive to the market place?

4. Is the spending proposal affordable?

5. How will the proposal be delivered successfully?

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Management

The 5 key elements of best practice business cases

The 5 Case Model

Financial Commercial

Economic

Strategic

Applicable - strategic fit & business needs

Appropriate – optimises public value

Attractive – to supply side and feasible

Affordable – within budget

Achievable – can be successfully delivered

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Strategic Case

Strategic Context

• Organisational Overview

• National Policies & Strategies

• Local & Organisational Strategies

The five case model

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Strategic Case

Case for change

• Investment Objectives – SMART

• Existing Arrangements – Current arrangements

• Business Needs – Problems

• Potential Scope – Solutions

• Main Benefits – by stakeholder group

• Key Risks – business & service

• Constraints and Dependencies

The five case model

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Strategic CaseInvestment Objectives

• Economy

• Efficiency

• Effectiveness

• Re-procurement

• Statutory Compliance

The five case model

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Economic Case

• Critical success factors

• Options - Long list

• Options - Short-list

• Identify Preferred Option

• Cost Benefits Analysis (CBA)

• Risk Analysis $

• Sensitivity Analysis

The five case model

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Critical Success Factors

• Strategic fit

• Business Needs

• Benefits Optimisation

• Supply-side capacity and capability

• Potential Achievability

• Potential Affordability

The five case model

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Economic Case - Options

Long-list (12) - Preferred way Forward (PSC)

• Investment Objectives

• Critical Success Factors (CSFs), inc. benefit criterion

Short-list (5) – looking for Preferred Option

• Costs, benefits and risks $

• Sensitivity analysis

The five case model

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Options Framework

• Scope (coverage: who, what, where etc)

• Service Solution - (how: technical)

• Service Delivery - (who: provider)

• Implementation - (when: phasing & time)

• Funding (how: $)

Preferred Way Forward

The five case model

Economic Appraisal

• Do Nothing/Min

• Option 2 – PWF

• Option 3 – Other

• Option 4 - Other

• Preferred Option

• Cost Benefit Analysis

• Qualitative Benefits(rank, weight, score)

• Risk Quantification(£ or rank/weight)

• Sensitivity Analysis(switching values etc)

The five case model

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Commercial Case• Procurement Strategy

• Scope and related services

• Risk transfer

• Charging/payment mechanism

• Key contractual clauses & length

• Personnel implications (TUPE)

• Supplier’s implementation time-scales

• Accountancy treatment (FRS 5)

The five case model

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Financial Case

• Capital and revenue requirements

• Net effect on prices

• Impact on Balance Sheet

• Impact on Income and Expenditure Account

• Overall Funding and Affordability

The five case model

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Management Case

• Project management planning

• Change management planning

• Benefits management planning

• Risk management planning

• Post evaluation planning

The five case model

© The Treasury 36

More about the process

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The Process: starting with a capital plan

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Fit with Portfolio management

Strategy

Plans

Activities

Portfolio m

anagement

Program

me m

anagement

Project m

anagement

Governance

Funders

Organisations charged with

delivery

Service providers

Organisational energy

Portfolio definition

Portfolio delivery

Understand

Categorise

Prioritise

Balance Plan

© The Treasury 39

Strategic AssessmentBetter Business Cases for Capital Proposals Toolkit: Strategic Assessment

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Strategic assessment

• What is it for?• When is it needed?• What is involved?• Either at project or programme level

Refer to the BBC Toolkit: Strategic Assessment booklet available on:http://www.infrastructure.govt.nz/publications/betterbusinesscases/

strategicassessment

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Strategic assessmentStrategic Case-Making the Case for Change

Action 1: The case for change• Identify the core reason that underpins the service need by identifying : - the problem? - the best strategic response? - benefits that need to be delivered?

Stakeholders do the thinking together in three two hour workshops led by an “Investment Logic Mapping” ILM facilitator

© The Treasury 42

Programme Business CaseBetter Business Cases for Capital Proposals Toolkit: Programme Business Case

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Programme business case

• What is it for?

• When is it needed?

• What are the actions?

Refer to the BBC Toolkit: Programme Business Case booklet available on:http://www.infrastructure.govt.nz/publications/betterbusinesscases/

programmebusinesscase

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Programme business case

Strategic Case-Making the Case for Change

Action 2: Strategic ContextAction 3: Investment Objectives, existing arrangements and business needsAction 4: Potential business scopeAction 5: Benefits, risks, constraints and

dependencies

Stakeholders do the strategic case thinking together in a two hour workshop led by a facilitator.

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Programme business caseEconomic case• Identifying and assessing the main programme options (key trade offs) for

delivering required services (scope, service solution, service delivery , implementation, funding)

Commercial case• Likely attractiveness to potential service providers (high level consideration of

alternative procurement)

Management Case• Based on the preferred programme option determine the mix of projects, the

dependencies, tranches and bundles

Financial case• Determine rough order costs and potential funding sources

Stakeholders do the economic case thinking together in a workshop led by a facilitator

Stakeholders do management case thinking together in a workshop led by a facilitator

© The Treasury 46

Project Indicative Business CaseBetter Business Cases for Capital Proposals Toolkit: Indicative Business Case

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Indicative business case• What is it for?• When is it needed?• What are the actions?

• Refer to the BBC Toolkit: Indicative Business Case booklet available on:• http://www.infrastructure.govt.nz/publications/betterbusinesscases/

indicativebusinesscase

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Indicative business caseStrategic Case-Making the Case for ChangeAction 2: Strategic context• Demonstrates alignment with organisation’s, government’s priorities and goals

Stakeholders do the entire strategic case thinking together

in a two hour workshop led by a facilitator.

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Indicative business case

Strategic Case-Making the Case for ChangeAction 3: Investment objectives, existing arrangements and business needs • Existing arrangements-where the organisation is now• Business needs-Difference between where the organisation wants to be and where it is

highlighting problems, difficulties and inadequacies and future changes in the demand for services

• SMART Investment objectives that clearly relate to action 2 and are either about improving effectiveness, efficiency, or reducing cost, or are for re-procurement ,or to meet a regulation

• Action 7 to assess each of the long list of options against theses investment objectives

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Strategic Case-Making the Case for ChangeAction 4: Key service requirements potential business scope

• Set out the boundaries or limitations

• Highlight the required services

• Forms the basis of the ‘statement of needs’ or ‘statement of service requirements’

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Indicative business caseStrategic Case-Making the Case for ChangeAction 5: Benefits, risks, constraints and dependencies• Basis for option selection and evaluation• Benefits:- Direct/indirect, monetary/non-monetary and quantitative/qualitative- Measure against relevant benefits criteria• Risks :- Identify sources, impacts and potential consequences- Emphasis on 20% of risks which will account for 80% of the total risk• Constraints• Dependencies

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Indicative business caseEconomic Case-Exploring the Preferred Way ForwardAction 6: Critical success factors• Attributes essential to successful delivery of the proposal• Crucial and set at a level which does not exclude important options

• Assess each option against these factors, the investment objectives and the benefits criteria

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Indicative business caseEconomic Case-Exploring the Preferred Way ForwardAction 7: Long-list options and initial options assessment• Consider all realistic options within each dimension• Consider the options against the investment objectives and critical success factors

Dimensions Details

Scale, scope and location

What levels of coverage are possible?

Service solution How can services be provided?

Service delivery Who can deliver the services? Are there alternative procurement options for the delivery of public services?

Timing and staging When can services be delivered?

Funding How can it be funded? Are there alternative procurement options funding?

Stakeholders do the

economic case (and action 6) thinking together in 2 two-hour workshops led by a facilitator and a procurement expert.• Prepare long list• Assess long list to

short list(Consider inclusion of

industry)

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Distant? Close?

Adversarial

Adversarial

Arm’s length

Arm’s length

Transactional

Transactional

TacticalTactical

Single sourced

Single sourced

Outsourced

Outsourced

Co-dependent

Co-dependent

Partnership

Partnership

AllianceAlliance

Information exchange

Trust

Openness

Commitment

Duration

Establishment

Risk assessment

Risk management

Approach

Immediate Planned

Short

Tactical

Deal focus

Poor

Reactive

Low

Rarely done

Separate

Long

Strategic

Mutual value

Good

Forward thinking

High

Joint

Shared

EngagementLast Minute Early

Alternative procurement relationship spectrum

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The long list of options (example)Reference to SCO1 SCO2 SCO3 SCO4 SOL1 SOL2 SOL3 SOL4 SDO1 SDO2 SDO3 SDO4 IMP1 IMP2 IMP3 IMP4

Description of option Do Nothing Minimum Intermediate Maximum Discrete Integrated Regionally

Integrated Nationally

Regional and

National Network

In house Partially managed (led by

[MINISTRY])

Partially managed (led by

commercial supplier)

Fully outsourced

to commercial suppliers

Phased nationally

by discipline

System phased by

site

System phased by

region

National implementa

tion

Investment Objectives

Full supported netw ork MIMS available for implementation by X

No No Yes Yes No Partial Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes

Support improved clinical data and management information flow s

No No Yes Yes No Partial Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes

Improve the functionality and flexibility of the Pathology IT system to meet current and future needs

No Partial Yes Yes No Partial Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes

Critical Success Factors

Business Need No No Yes Yes No Partial Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes

Strategic Fit No No Yes Yes No Partial Yes Yes Yes Yes Yes Partial Yes Yes Yes Yes

Benef its Optimisation No No Yes Yes No Partial Yes Yes Yes Partial Yes Partial Yes Yes Yes Yes

Potential Achievability Partial Yes Yes Partial Partial Yes Yes No Partial Partial Yes Partial No Yes No No

Supply-side capability and capability

Partial Yes Yes Partial Yes Yes Yes Partial Partial Partial Yes Partial Yes Yes Yes Yes

Potential Affordability No No Yes Partial Partial Yes Yes No No Yes Yes No Yes Yes Yes Yes

Summary Continued for VFM

Discounted Preferred Possible Discounted Possible Preferred Discounted Discounted Possible Preferred Discounted Discounted Preferred Discounted Discounted

Options progressed to the shortlistAs the CSFs are crucial (not desirable) any options that had a CSF scoring a "No" are discounted

Option Title

Option 0 Do Nothing

Option 1 Intermediate Scope - Regional Option 2 Intermediate Scope - National IntegrationOption 3 Maximum Scope - Regional Integration

Option 4 Maximum Scope - National Integration

Implementation Options

SCO1 Do Nothing

SOL2 Integrated Regionally

SOL3 Integrated Nationally

IMP2 Phased by site

IMP2 Phased by site

SOL2 Integrated Regionally

Scoping Options Service Solution Options

* A capability analysis of the [MINISTRY} will be conducted to see if SDO4 Partially managed (led by [MINISTRY]) is a possibility. Based on present incomplete information this does not appear to be a viable option.

SOL3 Integrated Nationally

SCO3 Intermediate

SCO3 Intermediate

SCO4 Maximum

SCO4 Maximum

Service Delivery Options

IMP2 Phased by site

IMP2 Phased by site

SDO3 Partially managed (led by commercial supplier)*




Refer Note

below

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Indicative business caseCommercial, Financial and Management Cases (Outline)Action 8: Recommended preferred way forward, if conventional procurement• At least three short-listed options, including a base case option• Provide range of indicative cost estimates for each short-listed option• Make allowance for optimism bias

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Commercial, Financial and Management Cases (Outline)Action 8a to d: Recommended preferred way forward, if alternative procurement is part of the

short-listed options

Action 8a: Joint Ministers approve to proceed with more detailed economic assessment of the short-listed optionsAction 8b: Undertake detailed economic analysis Action 8c: Approach the marketAction 8d: Recommend preferred option with other• procurement options for further assessment in DBC • proceed to DBC

© The Treasury 58

Project Detailed Business CaseBetter Business Cases for Capital Proposals Toolkit: Detailed Business Case

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Detailed business case

• What is it for?• When is it needed?• What are the actions?

• Refer to the BBC Toolkit: Detailed Business Case booklet available on:• http://www.infrastructure.govt.nz/publications/betterbusinesscases/

detailedbusinesscase

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Strategic Case (Revisit)Action 9: Revisit the indicative business case• Strategic case - Note changes made to underlying assumptions

• Economic case- Review the long-list and preferred way forward

- Consider impact of changes to the assumptions

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Detailed business caseEconomic caseAction 10: Economic assessment of the short-listed options or preferred alternative procurement

option• Identify and monetise costs and benefits from Indicative Business Case

• use cost-benefit analysis (CBA), from national perspective, to assess options

Action 11: Intangible benefits and costs• Identify and explain intangible costs and benefits from Indicative Business Case• If quantitative and/or, qualitative use multi-criteria analysis (MCA) to assess options• Or describe those that cannot be monetised or quantified

Stakeholders do the economic case thinking together

in a two hour workshop led by a facilitator.

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Detailed business caseEconomic caseAction 12: Risk and uncertainty• Consider using quantitative risk analysis to understand the range of • uncertainty inherent within the cost/benefit • analysis

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Economic caseAction 13: Preferred option and undertake sensitivity analysis• Identify the preferred option• Fully involve stakeholders• Use sensitivity analysis to test robustness of the options analysis• Make it clear to decision makers the assumptions and sensitivities of the assumptions

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Analysis of the short-listed optionsOption 1: Do

NothingOption 2: Do

MinimumOption 3: Preferred

Minus

Option 4: Preferred

Way ForwardOption 5:

Preferred Plus

Appraisal Period (years) 20 20 20 20 20

Capital Costs ($m) 0.0 22.5 23.9 31.6 45.7

Whole of Life Costs ($m) 14.4 24.2 49.7 70.7 90.9

Cost-Benefit Analysis of monetary costs and benefits at the Public Sector Discount Rate

Present Value of Benefits ($m) 2 25 75 115 126

Present Value of Costs ($m) 7 23 40 52 73

Benefit Cost ratio 0.3:1 1.1:1 1.9:1 2.2:1 1.7:1

Net Present Value (NPV, $m) (5) 2 35 63 53

Multi-Criteria Analysis ranking of intangible costs and benefits (if any)Criteria 1 1 3 3 5 1

Criteria 2 5 2 3 2 4

Criteria 3 3 2 5 1 3Preferred option Yes

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Commercial case – Preparing for the Potential Deal

Action 14: Procurement strategy• Focus on how to procure the required services of the preferred option

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Commercial case – Preparing for the Potential DealAction 15: Service requirements• Scope and content of the potential deal• Specify desired outcomes and outputs • Specify quality attributes and performance measures• Allow scope for service provider innovations

Action 16: Risk allocation

•Consider how risks are apportioned between the public and private sectors•Allocate risk to the party best able to manage it•Incentives for the private sector to supply timely, cost-effective and innovative solutions

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Commercial case – Preparing for the Potential DealAction 17: Payment mechanisms• Reflect the balance between risk and return• Relate payment to delivery of service outputs and performance of providers• Incentivise providers in three stages1. Pre-delivery stage2. Operational stage3. Extension stage

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Detailed business caseCommercial case – Preparing for the Potential DealAction 18: Contractual and other issues• Contractual arrangements for the procurement

• Identify standard form of contract used

• Provide details of the accountancy treatment

• Identify any personnel implications to the investment proposal

Financial case – Ascertaining Affordability and Funding RequirementsAction 19: The financial costing model• Consider Crown-related cash flows and accounting charges

• Specialist accounting capability required

• Detail the capital and revenue requirements for the preferred option

• Compare prices and quality levels of services offered by providers

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Management case – Planning for Successful DeliveryAction 20: Project management planning• Strategy

• Based on best practice programme management principles and project methodologies

• Framework

• Summarise how the project is organised including structure, reporting and governance

• Plan

• Address deliverables, activities, resources, dependencies and reviews

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Detailed business caseManagement case – Planning for Successful DeliveryAction 21: Change management planning• Strategy – assess the potential impact of proposed changes

• Plan – provided for significant change management programmes

Action 22: Benefits management planning

•Management arrangements to ensure that expected benefits are monitored and realised•Strategy – arrangements for identification of benefits, their planning, modelling and tracking•Framework – assigns responsibilities for realisation of benefits •Benefits register – details significant benefits expected as part of the economic case

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Management case – Planning for Successful DeliveryAction 23: Risk management planning• Risk mitigation can lower the expected costs

• Strategies:

- Identify risk and put response mechanisms in place

- Create processes to monitor and report risks

- Create an issues log

• Risk management:- Establish a risk management framework- Senior management support, ownership and leadership- Communication of risk management policies- Embed risk management into business processes

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Management case – Planning for Successful DeliveryAction 24: Post-project evaluation planning• Strategy:

- Improves project evaluation

- Determines whether project has delivered improvements and benefits

- Outlines the strategy for both aspects of post-project evaluation

• Framework – management arrangements to ensure that the evaluation takes place

• Plan – timing for post-project evaluation arrangements

© The Treasury 73

Project Implementation Plan Better Business Cases for Capital Proposals Toolkit: Implementation Plan

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Implementation plan

• What is it for?• When is it needed?• What are the actions?

• Refer to the BBC Toolkit: Implementation Plan booklet available on:• http://www.infrastructure.govt.nz/publications/betterbusinesscases/

implementationplan

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Implementation plan

Strategic and Economic Case (Revisit)Action 25: Revisit the case for change• Revisit the strategic case – some aspects may have altered

• If not, note in the implementation plan

• If changes have occurred, identify:

- strategic context

- agreed investment objectives

- business needs

- earlier scope and service requirements

- benefits, costs, risks, dependencies and constraints

• If changes are major, effects may require following-up throughout the entire case

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Implementation planStrategic and Economic Case (Revisit)Action 26: Revisit the detailed business case options• Demonstrate that conclusions of the economic assessment remain valid

• Update business case for any changes

• May impact on ranking and selection of options

• If alternative option is recommended, demonstrate that it offers better value for money

Commercial case – Preparing for the Potential Deal

Action 27: Evaluation of best and final offers

•Include an outline of the assessment of service provider proposals•Explain any changes•Record the basis on which the providers were selected and discarded

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Implementation plan

Commercial case – Preparing for the Potential DealAction 28: The negotiated deal and contractual arrangements• Overview of preferred service provider deal

• Explain the:

- service streams and outputs

- implementation timescales

- allocation of risk between the organisation and preferred provider

- underpinning method of payment

- type of contract used and the key contractual issues

- accountancy treatment of the negotiated deal

- personnel implications

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Implementation plan

Financial case – Ascertaining Affordability and Funding RequirementsAction 29: Financial implications of the deal• Explains the financial implications to the organisation of the negotiated deal

• Layout follows the standard headings for the financial case

• Explain:

- how the charges have been modelled

- capital and revenue implications

- net effect on user charges

- impacts on financial statement

- overall affordability and funding arrangements

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Implementation planManagement case – Planning for Successful DeliveryAction 30: Finalise project management arrangements• Revisit and update the project management arrangements

• Support of the design, build and implementation stages

• Latest version of the project plan should be attached

Action 31: Finalise change arrangements• Revisit and update the change management arrangements and strategy

• Latest version of the change management plan should be attached

• Signed off by stakeholders for the services and indicate customer

Action 32: Finalise benefit management

•Revisit and update the benefits realisation arrangements•Strategy for realisation of benefits should be revisited and re-affirmed

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Implementation planManagement case – Planning for Successful DeliveryAction 33: Finalise risk management• Revisit and update the risk management arrangements • Revisit the strategy for the management of risks

Action 34: Finalise contract arrangements• Outline the arrangements in place to manage contract change• Consider the strategy for managing future contractual change• Arrangements should be noted in the implementation plan

Action 35: Finalise post-project evaluation arrangements• Revisit and update the post-project evaluation arrangements• Record arrangements for future SSC Gateway Reviews at reviews 3, 4 and 5• Record the arrangements for post-project evaluation

Documents

Better Business Cases Detailed 2012