1. Business Case Process John DiNofrio Gary Graybill April 8, 2003

2. 4/8/03BusCaseProcessPresentation12 Overview The Business Case is a standardized management tool that captures planning information about a new project. It is constructed by the originator, the sponsor, and the performing organization to document business decisions. It should be used to help decide if a project/program proceeds.

3. 4/8/03BusCaseProcessPresentation13 Business Case Objectives The Business Case is the basis of a presentation to decision makers so they may make more informed decisions. It is a formal document that is reviewed and signed by the originator, sponsor, and the performing organization to ensure all parties understand and agree on their roles and responsibilities. It should be signed by decision makers to approve and grant authority to proceed.

4. 4/8/03BusCaseProcessPresentation14 Business Case Requirements Business Case needs to be developed: –External New Business DOT other than FAA Other Government Agencies – Military, State and Local Gov’t., etc. Industry Academia International –New Projects valued at over $50K Example - VizSim Lab Business Cases are not required: –Existing Projects and Customers –Projects with PDs –Follow-on to Existing Projects

5. 4/8/03BusCaseProcessPresentation15 Business Case Timeline Due Diligence – Begins with initial discussions to determine project feasibility Business Case Development – Begins when “players” begin to formalize and document business decisions. This cycle ends when all are satisfied with the documented decisions and sign the Business Case. Review/Approval – Begins with the development of the Business Case Presentation and ends after the Business Case is presented and approved. Due Diligence (Initial Discussions) Business Case Development Review/Approval Cycle

6. 4/8/03BusCaseProcessPresentation16 Business Case Process Each LOB personally commits to ensuring business cases are developed Each LOB will develop their own process to track and approve business cases All business cases that go to the SLT for approval will be maintained by LOB and ACF – Tech Center wide initiatives – Initiatives that require funding outside of LOB budget – Initiatives > $$$ On a quarterly basis, the number of business cases developed and ROI will be tracked for measurement reporting

7. 4/8/03BusCaseProcessPresentation17 ACF’s Roles & Responsibility Assist the originator, the sponsor, and the performing organization in developing the business case Provide support to the SLT and LOB staff throughout decision making process Provide support to the originator in developing the financial case for the program/project

8. 4/8/03BusCaseProcessPresentation18 Next Steps SLT and LOB ensure that business cases accompany project requests. LOB develop internal process to carry business case from due-diligence to approval. ACF develops corporate processes.. Begin tracking business cases and ROI’s for corporate measurement reporting.

9. 4/8/03BusCaseProcessPresentation19 Summary The Business Case process establishes a standard procedure for documenting new business opportunities. Business Cases are required for: –External New Business Opportunities (i.e. other than FAA) –New Projects valued at over $50K (i.e. VizSim Lab) The Business Case ensures buy-in from project stakeholders and grants approval to proceed. The Business Case Template provides guidelines as well as format instructions. It is available now! Suggestions for Business Case Template improvement should be made to ACF-1.

10. Backup

11. 4/8/03BusCaseProcessPresentation111 Business Case Contents The Business Case contains key information to support informed management decisions –Describes the project and approach (What is this Project about?) –Lists organizational stakeholders (Who is involved?) Sponsor (funder) Originator (if different from performer) Performer Stakeholder Benefactor Competitors –Lists Benefits (Why do this Project?) Relevance to Corporate Goals Intrinsic or Derived

12. 4/8/03BusCaseProcessPresentation112 Business Case Contents (Continued) –Costs (How much will this cost?) Resource Requirements Facility Requirements (e.g. Laboratories) Other (Materials, Equipment, etc.) –Revenue (How much will it bring in?) –Schedule (How long will the project take?) –Risks (What could cause the Project to fail?) –Assumptions (What constants are required for success?) –Summary –Recommendations (Request for signature authorizing approval to proceed.)

13. 4/8/03BusCaseProcessPresentation113 Business Case Cover Page Sample William J. Hughes Technical Center Business Case Surface Movement Advisor (SMA) Extended Deployment February 24, 2003 Originator: Darrell Woods Enhanced Traffic Management System (ETMS)/ Surface Movement Advisor (SMA) Group Manager ACB-720

14. 4/8/03BusCaseProcessPresentation114 Business Case Table of Contents Sample Executive Summary 1.0Project Name 2.0Business Case Participants 2.1Originator/Requestor 2.2Performer/Acquirer 2.3Sponsor 2.4Stakeholders, Customers (internal and external) 3.0Competitors 4.0Situational Assessment (Current State) and Problem Statement 4.1Project Description and Scope 4.2Proposed Solution/Approach 5.0Resource Requirements 6.0Timeline / Milestones 7.0Financial Assessment 7.1Costs 8.0Mission Relevance to Goals 8.1FAA Goals 8.2ARA Goals 8.3Technical Center Goals 9.0Benefits 9.1Intrinsic or Derived Benefits 9.2Measurable Benefits 10.0Cost and Benefit Analysis 11.0Assumptions and Risks 11.1Project Assumptions 11.2Risk Assessment 11.2.1Adverse Impact Of Not Performing The Project 11.3Risk Summary 12.0Conclusions and Recommendations 13.0Approvals and Authorizations 14.0.Document Change History

15. 4/8/03BusCaseProcessPresentation115 Sample Financial Assessment VizSim Lab