Developing Compelling Business Cases: a product and a process- Webinar Tuesday 26th April 2016 Stefan Sanchez Jos Van Rozen Anna Lay

1. Developing Compelling
Business Cases – a product
and a process
A Benefits Management SIG webinar
www.apm.org.uk
#apmwebinar

2. Welcome and Context
 Host: Anna Lay, Benefits Management
Specific Interest Group (SIG)
 This webinar is being recorded
 Approximately one hour (ends 13.30)
 Slides available on APM website
 Introduction to the topic

3. Speakers
 Stefan Sanchez:
– Director, Value People Ltd http://www.valuepeople.co.uk/
– Before becoming a consultant specialising in business
case development, scrutiny and training, Stefan had a
diverse and varied career in the public sector including
regulatory work; parliamentary experience and senior
management positions in the Welsh Government.
 Jos Van Rozen:
– Strategy and Business Case Consultant, Van Rozen
Consulting Ltd www.vanrozenconsulting.com
– For over fifteen years, Jos has worked with project
managers, strategic planners and business management
teams to beat the typical odds across acquisitions, capital
programs, merger integrations, new product development
and pricing decisions. Book: www.bedecisivenow.com

4. The average project overspends
and under delivers
In other words, actual ROI is:
30% of projected ROI(!)
(*) IT Projects >$15m; Source: McKinsey Quarterly, October 2012

5. So, what happens with the balance?
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Project returns
Optimism
Excecute with Excellence
Base

6. Why is the business case important?
 Provides a framework for scoping &
planning spending proposals leading to
efficient & effective spend
 Internal and external approval
 Accountability for public funds
 Recognised best practice (PRINCE2®)
 Repository for information and evidence base
 Post evaluation
6
PRINCE2® is a Registered Trademark of Axelos

7. Value for money - benefits
CRB
cash
releasing
benefits
nCRB
Financial
non-cash
releasing
benefits
QB
Quantifiable
benefits
nQB
Non-
quantifiable
benefits
Cannot be counted or valued (£)
Valued (£) but not ‘hard cash’
Can be counted but not valued (£)
‘Hard cash’ (£)
Reflected in:
bottom line/balance sheet
(financial case)
Economic analysis
(economic case
Reflected in:
NPC/V Economic analysis
(economic case)
Reflected in:
Economic analysis
(economic case)

8. Value for Money challenges
Typical capital budget
Maintenance
Cost Reduction
Growth / Mix
Environmental Health &
Safety

9. Get the problem right

10. The average project overspends
and under delivers
In other words, actual ROI is:
30% of projected ROI(!)
(*) IT Projects >$15m; Source: McKinsey Quarterly, October 2012

11. 11
Many Benefit Shortfalls Trace Back
to the Business Case
Process:
Critical Business Case Checks
for
Better Benefit Odds
www.bedecisivenow.com

12. Develop multiple alternatives
• 70% of strategic decisions :
one alternative
“Do this or not.”
• 6x better odds to meet
expectations with two genuine
alternatives.

13. Better Business Cases ask
5 key questions

14. Business Case: major schemes
14
Strategic
Outline
Case
Single business case typically developed in three stages
Outline
Business
Case
Full
Business
Case

15. Better Business Cases ask
5 key questions

16. Actively involve stakeholders

17. Challenge the “no doubts”

18. Integrate lessons from past
projects
“An organization’s ability to learn and translate
that learning into action rapidly is the ultimate
competitive advantage.”
- Former CEO of GE, Jack Welch

19. Think beyond approval
 Value Delivery Plan
 Risk planning – be ready for a range of
outcomes

20. Questions & concluding remarks
Stefan@valuepeople.co.uk
www.valuepeople.co.uk
jos.vanrozen@vanrozenconsulting.com

21. Upcoming Events
Title Event Date Location
Benefits Management: it works, so why isn't everybody doing it? Webinar Tuesday, May 10, 2016 Webinar
Benefits Management: a core theme in management research and education? Tuesday, June 14, 2016 Sheffield

22. …and finally
 Speakers
 Post event survey
 Post event briefing including responses to questions
 Thank you!

23. This presentation was delivered
at an APM event
To find out more about
upcoming events please visit our
website www.apm.org.uk/events