Better Business Cases “Investing for change” Overview

Background Cabinet Treasury response Visibility of future decisions Confident investment decisions Treasury response Portfolio management Business case development

BBC Overview Why better business cases? What is a Better Business Case? What is expected? Who needs to be involved?

BBC Overview When does it apply? State sector-capital Canterbury Recovery National Land Transport Programme Auckland Plan Tertiary Education Local Government Good practice

The 5 case model and the process

Any business case addresses 5 key questions: The 5 Case Model Any business case addresses 5 key questions: Is there a compelling case for change? Does the preferred investment option optimise value for money? Is the proposed deal commercially viable? Is the spending proposal affordable? How can the proposal be delivered successfully? 6

The 5 Case Model The 5 key elements of good practice business cases Compelling case for change - strategic fit & business needs Strategic Achievable and can be successfully delivered Management Economic Preferred option optimises value for money Financial Commercial Affordable within available funding Commercially viable 7

Portfolio or programme The pathway of the phased BBC process can be used to select which type of business case best delivers the required decision/s Strategic Assessment Portfolio or programme S Planning and scoping The level of emphasis of each of the five cases depends on the type of business case Programme Business Case S E C F M 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) Strategic Assessment S Indicative Business Case S E C M F Detailed Business Case S E C F M Implementation Business Case S E C F M Confirm fit with strategy and the need to invest Confirm way forward with short-listed options (consider non-traditional procurement) Confirm best value for money option, outline potential deal and delivery plan, assess affordability. Confirm supplier offering best value, detailed commercials, confirm affordability. detailed management and delivery arrangements Strategic Assessment S Project/s (Other) Single Stage Business Case S E C F M

Planning the Better Business Case Right sizing effort – the scoping document

Scoping document- types of questions asked What previous decisions have been made Right sizing the capacity/capability of the team Right sizing the effort Right sizing the engagement (assurance and stakeholders) What decision is being sought

Business Case Capability Stakeholder Management Content e.g. service delivery Assurance and Decision Making e.g. monitoring function Business Case e.g. cost/benefit analysis Change mgmt e.g. stakeholder engagement Stakeholder Focus Subject Matter Governance Influence Empower Mass Communication Co-production High Power and Influence Change Impact Low High Project Management

Where to get support

Where do I get support-on the website ? Overview information Quick Reference Guide Presentation 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

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

The national evaluation and way forward

2013 2013 National Evaluation and way forward 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 Develop the long term plan