Mark BlakemanDirector of Informatics and Corporate Projects

Business Cases - hurdle or useful tool?

Business Cases - do not have a good reputation

Despite Employing the best staff –

from the best companies

Despite following the best guidance for governance

Despite using the best accountants, carefully analysing

the finances and assuring ourselves that there is a case to

be made.

Despite setting out clear delivery time scales

Risks get missed

Projects get delayed and blame apportioned

And projects get abandoned

On the basis of evidence,

Business Cases are just about jumping through f***ing hoops !

Questions ?

But……

Background – The Economic Reality

Economic Reality

All Public Sector Organisations need to respond.

– Standard responses include• Salami slicing• Slash and burn• Lies were it falls• Money at the expense of quality• Displacement activity• Too much too late.

– To safe guard service quality we need a better solution.

IT enabled service improvement needs to be part

of the solution

But…..

Projects get delayed and blame will be apportioned

Your reputation to keep to budget, deliver on time and release benefits

is both fragile and extremely precious.

Be it your idea

Your Boss’s idea

An idea based on a 30 minute conversation with Bill Gates

(allegedly)

Business cases are about making sound business decisions, not

about getting something approved.

Business Cases

A Hurdle Worth Jumping ?

A Worth While Business Case

A Worth While Business Case

– Looking back across a range of implementations [in the long term] “real” benefits are more important than.• A well written business case• Affordability• Funding• Excellent project management• Benefits realisation and management• Training• Floor walking• Service management• Business continuity• Technical solution.

– Don’t try to justify benefits that aren’t there and don’t try to pass non cash releasing benefits off as cash releasing.

– Do include all of the above in your business case– Don’t be tempted to take out any of the above out of your business case to make it

affordable.

A Worth While Business Case– Understand the finances

• Investment policy• Impact on Monitor risk rating• ROI• Liquidity / Cash• VAT• Managed service vs lease• etc

– Understand the HR• TUPE• Protection• etc

– Understand the procurement• Framework• SFIs• etc

A Worth While Business Case

– Ensure business case fits the new way of working.• Business change• Implementation – PC support

– Business Case or Backlog maintenance ? (learn from estates)

– Pilot can prove the benefits• Gives time to really gain support.• Creates champions for further roll out.• Spread the costs (watch the risks though).

– Be careful with contract T&Cs especially regarding stage payments.

– Don’t Forget on going revenue and support requirements.– Benefits and pay back periods are key.

• Expect significant scrutiny and short pay back periods.

So….

Business Cases are a real Opportunity, but…

– A great business case may not get approved.– Given the amount of effort required to

produce a business case a good business case should be celebrated even if the organisation chooses not to invest.

– Organisations wont have the cash to bail out a poor business case.

Remember

– Business cases are about making sound business decisions, not about getting something approved.

– You reputation to keep to budget, deliver on time and release benefits is both fragile and extremely precious.

Questions ?