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EFFECTIVE
BUSINESS
CASE DESIGN
WELCOME
• Acknowledgement of Country and Elders
• Acknowledgement of Carers
• Housekeepers
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Collaboration
Openness
Respect
Empowerment
Conduct,Confidentiality
andAgreements
PARTICIPANT INTRODUCTIONS
1. What are you personal learning goals for this session?
2. What do you want to achieve today?
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LEARNING OUTCOMES
At the completion of this workshop participants will be able to:
• Accurately identify the business issue ensuring organisational
strategically aligned options for change
• Analyse business options and feasibility to support positive
workplace change
• Recognise the impact of the proposed change on the organisation
and the wider health system
• Identify the key stakeholders – learn how to analyse, communicate
and collaborate with them
• Gain insight into the perspective of the business case evaluator
MAP OF THE WORKSHOP
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2
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10
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Introduction
Business case
fundamentals
Assessing
business cases
Ensuring strategic
alignment
Stakeholders
Identifying options
Testing options
Risks
Writing well for
business cases
Evaluation
Summary
Lunch
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BUSINESS CASE PROCESS OVERVIEW
The case for change
Ensuring strategic alignment
Stakeholders
Alternatives / Options
Costs and Benefits
15 new staff to cover a critical staffing
shortage in the Emergency Department
2New Software package – Integrated
Records Management Retrieval on iPad
3A geothermal conversion energy project – that
uses green energy for heating and cooling
Next topic
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15 new staff to cover a critical staffing
shortage in the Emergency Department
• The case looks compelling…
• The $1 million will be used for staffing costs
• 22 patients suffered serious complications due to delays in being
seen in the last 2 months
15 new staff to cover a critical staffing
shortage in the Emergency Department
• When further research is conducted however…
• Triage processes have been found to be less than adequate with
two new staff members
• The Emergency department is at capacity with beds. Extra staffing
will not solve the issue
Back
6
2New Software package – Integrated
Records Management Retrieval on iPad
• The case looks compelling
• A new software system that integrates patient records, has
instantaneous live feeds
• Patients data is mobile, being able to be displayed on iPad
• One of the doctors knows someone at the Software company, and
says it is an excellent package
2New Software package – Integrated
Records Management Retrieval on iPad
• The systems that are to be integrated are found to not “talk”
to each other
• To gain this integration a further project will need to take place
costing an additional $800,000
• Records will not then integrate with other hospitals
• Clinical staff will need training costing an additional $60,000
• iPads will need to be purchased costing an additional $60,000
Back
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3A geothermal conversion energy project – that
uses green energy for heating and cooling
• The case seems expensive & unfeasible
• A series of bores is drilled 120 meters down into the ground
• Water will be pumped down the bores and reticulated back to the
surface in a closed loop system that uses geothermic heating and
cooling for the hospital
3A geothermal conversion energy project – that
uses green energy for heating and cooling
• However reading the case further…
• Supplies of natural gas to the area have become extremely limited
and expensive
• 3 other options are fully explored in the case
• This solution will save approximately $500,000 per annum in
conventional power costs
• Detailed costing show it will pay back its cost in 2 years through
savings on conventional power charges
Back
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EXAMPLE OF A WELL WRITTEN BUSINESS CASE
• What is effective about the case?
ASSESSING
BUSINESS
CASES
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Critical things that a
Reviewer looks for
ASSESSMENT CRITERIA
• Assess the business case using
the “Business Case Prioritisation
and Assessment Criteria”
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CASE FOR CHANGE
1. Describe the problem to solve or the opportunity to seize
2. Describe how the proposal relates to and will support the
organisations core interests and priorities
3. Show how the proposal is consistent and/or delivers government
policy, relevant legislation and the agency’s stated corporate plan
4. Demonstrate discussion, consultation with key stakeholders of the
proposal. Their views should be made clear.
5. Where relevant the impact on the environment should be discussed
Linked to creating value in the health system and better
patient outcomes.
Benefit
Local
NSW Health
Organisation
Strategy
NSW
Health
Strategy
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STRATEGIC ALIGNMENT
Refer to the NSW State Health Plan
Demonstrate how your proposal aligns with your organization’s health
strategy and the NSW State Health Plan.
This step is Critical for
business case success
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STAKEHOLDER
MANAGEMENT
Stakeholder Management is
critical to the success of a
project.
By engaging the right people in
the right way in your project, you
can make a big difference to its
likelihood of success.
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POSSIBLE STAKEHOLDERS
• Customers
• Prospective Customers
• Your team
• Hospital executive team
• Local Government
• Suppliers
• Executive Management Team
• Ministers/Councillors
• The Public
• Prospective staff
• Commonwealth
• State Government
• Interest/Lobby Groups
• Unions
• Professional Bodies
• Funding providers
STAKEHOLDER ANALYSIS & MANAGEMENT
BT
AJ
CR
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Development strategies for
stakeholder management
STAKEHOLDER ANALYSIS & MANAGEMENT
BT
AJ
CR
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UNDERSTANDING YOUR KEY STAKEHOLDERS
• What information do they wish to gain from you?
• What will motivate them to actively and positively support the
project?
• What interests both financially, socially and emotionally do they
have in your project and whether these interests are positive or
negative?
• What can you tell them given some matters/issues may be
‘Commercial in Confidence’?
UNDERSTANDING YOUR KEY STAKEHOLDERS cont.
• Given their motivation and interest in the project, what do you want
to tell them?
• How do they wish to be communicated with and which type of
correspondence are they seeking from you?
• Can you change any negative thoughts they may have on the
project into positive ones, if not, how are you going to manage their
opposition
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OPTIONS
IDENTIFICATION
& ANALYSIS
Option 3
Option 4
Option 2
Option 1
Base Case /
Do Nothing
Problem or
Opportunity
Option 5
Option 6
Option 7
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OPTIONS TO CONSIDER…
• Non-build options that meet the same service delivery objective
• Alternative design possibilities or construction techniques available to
deliver the project
• Extension or modification of existing systems
• Lease options instead of build or own options
• Alternative means of delivering the service:
- Sharing with one or more other agencies
- Service competition
COSTS
Capital and recurrent costs
Quantitative & Qualitative
BENEFITS
Capital and recurrent costs
COST-BENEFIT ANALYSIS
COST-BENEFIT ANALYSIS
AIM: A way to compare all feasible options against each other
Option 1
Base Case /
Do NothingOption 2 Option 3 Option 4
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RISKANALYSIS
What is the
risk of doing
something?
RISK ANALYSIS
What is the risk
of not doing
something?
What is the
mitigation
strategy?
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RISK ANALYSIS
NSW Health Risk Matrix
Risk Management Plan
IDENTIFYING
THE PREFERRED
OPTION
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Intuitive
thinking
FINDING THE PREFERRED SOLUTION
(Source: TechRepublic)
Structured
deliberate
thinking
What makes a great idea?
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IDEA
Risk
Analysis
Funding
Political
To consider…
Stakeholders
Economic
SocialFinancial
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1. Identify the key problem or opportunity
THE BUSINESS CASE PROCESS
2. Conduct research
3. Identify the options – include a base case
4. Identify what is feasible and the preferred option
5. Plan the project – scope and implementation
6. Develop the case
WRITING WELL
FOR BUSINESS
CASES
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Writing well for a great
business case
WRITING WELL FOR BUSINESS CASES
How do you bring your case to life?
Business
Storytelling&
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STORYTELLING
• Bring the reader into the story
• Honest and authentic storytelling
• Fact Based
• Clear
• Benefit focused
Restate the
objectives to
make sure
everyone knows
you understand
them.
FINDING THE PREFERRED SOLUTION
You should end up with a crisp and compelling message which will showcase your thinking.
Speak about
available
alternatives, their
pros and cons,
benefits and risks.
Identify the
preferred solution.
Explain why this
solution is
preferred by
discussing the
selection criteria.
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BUSINESS STORYTELLING
• NSW Far West Hospital est. 1948
• Lifts in main building need repair
• Population of 500,000
• Full capacity hospital by 2018
• Demand is forecast to grow by 10% by 2019
• That is approx. 500 people per year from 2019 who can’t be seen annually
• Can’t install new equipment due to configuration restrictions of building
• Hospital aims to serve the needs of its population
• Options: i) a new hospital (preferred), ii) sending excess patients to next
hospital 1 hour away or iii) do nothing
MEASURING SUCCESS
For your preferred option, describe what measures will be used to
determine whether the benefits have been delivered, including key
performance indicators (KPIs) that will be used to measure the delivery of
the benefits and baseline data.
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THE EXECUTIVE SUMMARY CHALLENGE
FINAL TOPICS
AND CHALLENGE
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The case for change
Doesn’t focus
on defending
a solution at
all costs
Linked to a wider health strategy &
better patient outcomes
Stakeholder
Management
The case is more than
just the costs
Costs are able to be
compared to each other
Understandable – Written for clinical and non-clinical
backgrounds
It talks about
the opportunity
investment (the
benefits)
Storytelling –need to tell a
story
Generates value in the
health system
Clear Issue
Identification
Objectively & accuracy & research
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1. Identify the key problem or opportunity
THE BUSINESS CASE PROCESS
2. Conduct research
3. Identify the options – include a base case
4. Identify what is feasible and the preferred option
5. Plan the project – scope and implementation
6. Develop the case