Episode 9 – INTERNATIONAL GUIDE TO DEVELOPING THE PROJECT BUSINESS CASE
Episode 9 – INTERNATIONAL GUIDE TO DEVELOPING THE PROJECT BUSINESS CASE
The International Guide to Developing the Programme Business Case provides a comprehensive overview of the key elements of developing a project business case. It is designed to help project sponsors, executives, and other stakeholders understand the importance of a well-crafted business case and how to create one. It outlines the five case models: Strategic, Economic, Commercial, Financial, and Management. It also guides how to use the Business Case Analysis Tool, a step-by-step guide to developing a business case. Additionally, it provides guidance on how to monitor and evaluate the project’s success, as well as how to communicate the project’s results to the stakeholders. This guide is an invaluable tool for project managers to ensure the success of their projects.”
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It outlines the development process for a Project Business Case based on the Five Case Model. This model consists of five parts: Strategic Case, Economic Case, Financial Case, Commercial Case and Management Case. The Strategic Case outlines the case for change and how it provides strategic fit. The Economic Case focuses on identifying the proposal to deliver the best public value to society.
The Financial Case outlines the capital and revenue requirements, the net effect on prices, the impact on the balance sheet, income and expenditure account, overall affordability and funding, and confirmation of stakeholder/customer support.
The Commercial Case outlines the procurement strategy, service requirements and outputs, risk allocation, charging mechanism, key contractual arrangements and personnel implications. The Management Case outlines the programme and project management governance arrangements, use of specialist advisors, change and contract management arrangements, benefits realisation arrangements, risk management arrangements, post-implementation and evaluation arrangements, and contingency arrangements and plans. Project Assurance should be undertaken after the Strategic Outline Case and the Full Business Case.”
“
This podcast provides an overview of developing a project business case. It outlines the steps for procuring the value-for-money solution, contracting for the deal, and planning for successful delivery. The Five Case Model is used to build the business case, which includes determining the strategic context, undertaking a strategic assessment, identifying and scoping the business needs, and capturing the benefits and risks associated with the project. The business case should be a reference point for any material changes required by the procuring authority or the service supplier. The management tools developed in support of the project business case should be used to deliver and monitor progress and provide the basis for regular reports to the Project Board.
The business case should be considered regardless of the need for external approval and should be approached as a thinking exercise, not a writing exercise. This will help to ensure that the project is well scoped and planned and that the necessary governance, standards, resources, competencies and capabilities are in place.”
“
It also guides how to size, sequence and phase potential products for the project. The focus is creating work streams that provide synergies, holistic fit and sufficient critical mass for delivery. The critical path should be identified, and the modular delivery of the products should be sequenced accordingly. Each option should be subjected to a SWOT analysis to determine advantages and disadvantages and how well it meets the agreed spending objectives and critical success factors. The preferred way forward should then be identified, and “funding options” for the project should be considered. These could include innovative sources of finance and funding streams and traditional sources of capital and revenue.”
“
This section of the podcast guides on developing a Programme Business Case (PBC) by outlining the process for scoping the proposal and preparing the Strategic Outline Case (SOC). The SOC should include a summary of the long list using the Options framework, including the service scope, service solution, service delivery, implementation, and funding. The SOC should also include a summary assessment of short-listed options, which can be colour coded for ease of reference. It outlines four types of generic projects: standard building projects, non-standard building projects, standard civil engineering projects, and non-standard civil engineering projects. It also covers equipment and development projects and outsourcing projects.
The chapter provides a table of adjustment percentages for each project type to account for optimism bias. Next, it suggests five steps to determine the appropriate project adjustment factor. Finally, it discusses the second workshop for the completion of the Project Business Case, the workshop’s objectives, and the workshop’s outputs. The chapter also mentions Multi-Criteria Decision Analysis and the commercial, financial, and management arrangements for successfully delivering the project.”
“
It covers the various risks associated with developing a programme business case. It outlines three main categories of risk: business, service and external. Examples of generic risks are also provided. Risk quantification and single-point probability analysis are discussed to assess risk costs. Risk quantification involves adding a ‘risk cost’ to the options’ costs to provide the options’ total expected value. Single point probability analysis consists in estimating the cost of each risk occurring, multiplied by a single probability of that risk arising in a particular year.”
“
It guides how to plan a scheme and prepare an Outline Business Case (OBC). It emphasizes the importance of identifying the project’s service streams and required outputs and assessing the scope and content of the potential deal with public and private sector service providers. It outlines the principles of risk allocation and management and the need for service level agreements (SLAs) to outline the availability criteria. The chapter also discusses payment mechanisms, such as fixed price/costs, performance payments, transaction/volume payments, incentive payments, cost of change, and third-party revenues. It is essential to consider the risks presented by a proposal and to identify and cost individual risks to optimize the allocation and sharing of risk.
The public sector should consider transferring risk to the private sector when the service provider can better influence the outcome than the procuring authority. In contrast, the private sector should be encouraged to take risks it can manage more effectively. The results for each short-listed option should be presented to ensure a balanced judgement of Net Present Social Value (NPSV), Benefit Cost Ratio (BCR), and level of risk involved.”
“
This section of the International Guide to Developing the Programme Business Case podcast guides planning a scheme and preparing the Outline Business Case (OBC). It outlines the need for details of the intended accountancy treatment, personnel implications, and the purpose, objectives, key participants, and outputs of Workshop 4.
This workshop is recommended to develop the service specification, apportion the service risks, explore the payment mechanisms, and develop the contractual arrangements. Outputs of the workshop include the procurement and commercial strategies, risk allocation matrix, and potential deal.
It also provides a checklist for step 5 of the planning process for developing a Programme Business Case. This step includes understanding the commercial and procurement strategies, routes to market, potential deals, required services, implementation timescales, charging/payment mechanisms, the contracts to be used and the critical contractual issues. The output from step 5 should be the completion of the commercial case section of the OBC, which should be kept under review.
It is also essential to assess the proposed deal’s impact on any contract prices charged by the organization and to compare and benchmark the prices and quality levels of similar services offered by other providers. The effect on costs should be analysed in detail to allow purchasers to understand how the scheme will impact them.
The podcast discusses techniques for assessing affordability, such as the balance sheet, solvency, over-trading, and return on capital employed and invested. It also outlines the financial, cash flow, and funding statements required for a project’s spend. Suppose the preferred option for the project is deemed unaffordable in that case, several remedies exist, such as phasing implementation differently, altering the project’s scope, and finding additional funding sources.
Overall, this chapter provides guidance on planning a scheme, preparing the Outline Business Case, assessing the proposed deal’s impact on prices, assessing affordability, and understanding the financial statements and funding requirements. It also outlines the remedies available for service provider failure and the need for written evidence of commissioner and stakeholder support.”
“
The International Guide to Developing the Programme Business Case focuses on the importance of planning for successful project delivery. It outlines the need for a strategy, framework and plans for successful project delivery, as well as a programme and project management methodology based on proven standards and quality management. The project framework should summarise the structure, reporting arrangements, governance arrangements, key roles and responsibilities, and appointed personnel. The project plan should be used to control and track the progress and delivery of the project and resulting outcomes.
Change management should be put in place with a strategy, framework and plans to assess the proposed change’s potential impact on the culture, systems, processes and people. Creating a benefits register to capture and indicate how benefits are to be realized is essential. Risk management strategies should also be implemented, including early consultation, avoiding irreversible decisions, pilot studies, design flexibility, preventive action, procurement and contractual intervention, and making less use of leading-edge technology. Finally, a risk register should be created to capture risks and how they will be managed.”
“
This podcast section outlines the process for procuring a proposal and preparing the Full Business Case (FBC). Ensuring that the recommended option offers the best public value and value for money (VFM) is essential. The FBC must be re-submitted for approval if the costs, benefits or contract terms vary significantly. The review criteria for the business case include establishing the strategic context, identifying the case for change, defining the scope for potential change, identifying benefits and managing risks, and identifying critical organizational constraints and business dependencies. Project assurance should also be undertaken to confirm the investment decision, and all parties must be content for the project to proceed to contract signature.”
“
This page provides an overview of developing a project business case. It outlines the stages of the process, including the preparation of the Strategic Outline Case (SOC), Outline Business Case (OBC), and Full Business Case (FBC). It also covers the importance of monitoring, evaluation, and feedback to ensure the project’s success. Additionally, it explains the importance of project assurance at each stage of the process to ensure the project is justified and the most economically advantageous tender is selected. The level of effort and process will vary depending on the organization, decision, and expectations.”
“
This document guides on developing a Programme Business Case for a project. It outlines the process for preparing a business case, including the Strategic, Economic, and Commercial considerations. The document also outlines the potential concerns for the Financial and Management cases, such as the type of business case, CBA/CEA for economic appraisals, and project assurance. It also provides a glossary of terms related to developing a business case, such as additionality, affordability, appraisal, assessments and base case. Furthermore, it references the “five case model” by Smith and Flanagan and the HM Treasury Green Book, which provides appraisal and evaluation guidelines for the central government. This document is a valuable tool for decision-makers in understanding the process of developing a Programme Business Case.”
Episode 9 – INTERNATIONAL GUIDE TO DEVELOPING THE PROJECT BUSINESS CASE
The International Guide to Developing the Programme Business Case provides a comprehensive overview of the key elements of developing a project business case. It is designed to help project sponsors, executives, and other stakeholders understand the importance of a well-crafted business case and how to create one. It outlines the five case models: Strategic, Economic, Commercial, Financial, and Management. It also guides how to use the Business Case Analysis Tool, a step-by-step guide to developing a business case. Additionally, it provides guidance on how to monitor and evaluate the project’s success, as well as how to communicate the project’s results to the stakeholders. This guide is an invaluable tool for project managers to ensure the success of their projects.”
“
It outlines the development process for a Project Business Case based on the Five Case Model. This model consists of five parts: Strategic Case, Economic Case, Financial Case, Commercial Case and Management Case. The Strategic Case outlines the case for change and how it provides strategic fit. The Economic Case focuses on identifying the proposal to deliver the best public value to society.
The Financial Case outlines the capital and revenue requirements, the net effect on prices, the impact on the balance sheet, income and expenditure account, overall affordability and funding, and confirmation of stakeholder/customer support.
The Commercial Case outlines the procurement strategy, service requirements and outputs, risk allocation, charging mechanism, key contractual arrangements and personnel implications. The Management Case outlines the programme and project management governance arrangements, use of specialist advisors, change and contract management arrangements, benefits realisation arrangements, risk management arrangements, post-implementation and evaluation arrangements, and contingency arrangements and plans. Project Assurance should be undertaken after the Strategic Outline Case and the Full Business Case.”
“
This podcast provides an overview of developing a project business case. It outlines the steps for procuring the value-for-money solution, contracting for the deal, and planning for successful delivery. The Five Case Model is used to build the business case, which includes determining the strategic context, undertaking a strategic assessment, identifying and scoping the business needs, and capturing the benefits and risks associated with the project. The business case should be a reference point for any material changes required by the procuring authority or the service supplier. The management tools developed in support of the project business case should be used to deliver and monitor progress and provide the basis for regular reports to the Project Board.
The business case should be considered regardless of the need for external approval and should be approached as a thinking exercise, not a writing exercise. This will help to ensure that the project is well scoped and planned and that the necessary governance, standards, resources, competencies and capabilities are in place.”
“
It also guides how to size, sequence and phase potential products for the project. The focus is creating work streams that provide synergies, holistic fit and sufficient critical mass for delivery. The critical path should be identified, and the modular delivery of the products should be sequenced accordingly. Each option should be subjected to a SWOT analysis to determine advantages and disadvantages and how well it meets the agreed spending objectives and critical success factors. The preferred way forward should then be identified, and “funding options” for the project should be considered. These could include innovative sources of finance and funding streams and traditional sources of capital and revenue.”
“
This section of the podcast guides on developing a Programme Business Case (PBC) by outlining the process for scoping the proposal and preparing the Strategic Outline Case (SOC). The SOC should include a summary of the long list using the Options framework, including the service scope, service solution, service delivery, implementation, and funding. The SOC should also include a summary assessment of short-listed options, which can be colour coded for ease of reference. It outlines four types of generic projects: standard building projects, non-standard building projects, standard civil engineering projects, and non-standard civil engineering projects. It also covers equipment and development projects and outsourcing projects.
The chapter provides a table of adjustment percentages for each project type to account for optimism bias. Next, it suggests five steps to determine the appropriate project adjustment factor. Finally, it discusses the second workshop for the completion of the Project Business Case, the workshop’s objectives, and the workshop’s outputs. The chapter also mentions Multi-Criteria Decision Analysis and the commercial, financial, and management arrangements for successfully delivering the project.”
“
It covers the various risks associated with developing a programme business case. It outlines three main categories of risk: business, service and external. Examples of generic risks are also provided. Risk quantification and single-point probability analysis are discussed to assess risk costs. Risk quantification involves adding a ‘risk cost’ to the options’ costs to provide the options’ total expected value. Single point probability analysis consists in estimating the cost of each risk occurring, multiplied by a single probability of that risk arising in a particular year.”
“
It guides how to plan a scheme and prepare an Outline Business Case (OBC). It emphasizes the importance of identifying the project’s service streams and required outputs and assessing the scope and content of the potential deal with public and private sector service providers. It outlines the principles of risk allocation and management and the need for service level agreements (SLAs) to outline the availability criteria. The chapter also discusses payment mechanisms, such as fixed price/costs, performance payments, transaction/volume payments, incentive payments, cost of change, and third-party revenues. It is essential to consider the risks presented by a proposal and to identify and cost individual risks to optimize the allocation and sharing of risk.
The public sector should consider transferring risk to the private sector when the service provider can better influence the outcome than the procuring authority. In contrast, the private sector should be encouraged to take risks it can manage more effectively. The results for each short-listed option should be presented to ensure a balanced judgement of Net Present Social Value (NPSV), Benefit Cost Ratio (BCR), and level of risk involved.”
“
This section of the International Guide to Developing the Programme Business Case podcast guides planning a scheme and preparing the Outline Business Case (OBC). It outlines the need for details of the intended accountancy treatment, personnel implications, and the purpose, objectives, key participants, and outputs of Workshop 4.
This workshop is recommended to develop the service specification, apportion the service risks, explore the payment mechanisms, and develop the contractual arrangements. Outputs of the workshop include the procurement and commercial strategies, risk allocation matrix, and potential deal.
It also provides a checklist for step 5 of the planning process for developing a Programme Business Case. This step includes understanding the commercial and procurement strategies, routes to market, potential deals, required services, implementation timescales, charging/payment mechanisms, the contracts to be used and the critical contractual issues. The output from step 5 should be the completion of the commercial case section of the OBC, which should be kept under review.
It is also essential to assess the proposed deal’s impact on any contract prices charged by the organization and to compare and benchmark the prices and quality levels of similar services offered by other providers. The effect on costs should be analysed in detail to allow purchasers to understand how the scheme will impact them.
The podcast discusses techniques for assessing affordability, such as the balance sheet, solvency, over-trading, and return on capital employed and invested. It also outlines the financial, cash flow, and funding statements required for a project’s spend. Suppose the preferred option for the project is deemed unaffordable in that case, several remedies exist, such as phasing implementation differently, altering the project’s scope, and finding additional funding sources.
Overall, this chapter provides guidance on planning a scheme, preparing the Outline Business Case, assessing the proposed deal’s impact on prices, assessing affordability, and understanding the financial statements and funding requirements. It also outlines the remedies available for service provider failure and the need for written evidence of commissioner and stakeholder support.”
“
The International Guide to Developing the Programme Business Case focuses on the importance of planning for successful project delivery. It outlines the need for a strategy, framework and plans for successful project delivery, as well as a programme and project management methodology based on proven standards and quality management. The project framework should summarise the structure, reporting arrangements, governance arrangements, key roles and responsibilities, and appointed personnel. The project plan should be used to control and track the progress and delivery of the project and resulting outcomes.
Change management should be put in place with a strategy, framework and plans to assess the proposed change’s potential impact on the culture, systems, processes and people. Creating a benefits register to capture and indicate how benefits are to be realized is essential. Risk management strategies should also be implemented, including early consultation, avoiding irreversible decisions, pilot studies, design flexibility, preventive action, procurement and contractual intervention, and making less use of leading-edge technology. Finally, a risk register should be created to capture risks and how they will be managed.”
“
This podcast section outlines the process for procuring a proposal and preparing the Full Business Case (FBC). Ensuring that the recommended option offers the best public value and value for money (VFM) is essential. The FBC must be re-submitted for approval if the costs, benefits or contract terms vary significantly. The review criteria for the business case include establishing the strategic context, identifying the case for change, defining the scope for potential change, identifying benefits and managing risks, and identifying critical organizational constraints and business dependencies. Project assurance should also be undertaken to confirm the investment decision, and all parties must be content for the project to proceed to contract signature.”
“
This page provides an overview of developing a project business case. It outlines the stages of the process, including the preparation of the Strategic Outline Case (SOC), Outline Business Case (OBC), and Full Business Case (FBC). It also covers the importance of monitoring, evaluation, and feedback to ensure the project’s success. Additionally, it explains the importance of project assurance at each stage of the process to ensure the project is justified and the most economically advantageous tender is selected. The level of effort and process will vary depending on the organization, decision, and expectations.”
“
This document guides on developing a Programme Business Case for a project. It outlines the process for preparing a business case, including the Strategic, Economic, and Commercial considerations. The document also outlines the potential concerns for the Financial and Management cases, such as the type of business case, CBA/CEA for economic appraisals, and project assurance. It also provides a glossary of terms related to developing a business case, such as additionality, affordability, appraisal, assessments and base case. Furthermore, it references the “five case model” by Smith and Flanagan and the HM Treasury Green Book, which provides appraisal and evaluation guidelines for the central government. This document is a valuable tool for decision-makers in understanding the process of developing a Programme Business Case.”
“
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