for Business Cases By Larry Dalton

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House Rules: • Keep disruptions - mobiles etc. - to a minimum: we will

take breaks (call them) • When not in groups - only one discussion, the one that

I’m engaged in • If you’re distracted or confused - take what you can from

the session and see Gregg hereafter • Political correctness to be checked in at the door • Jokes permitted, even encouraged • You’ll get out of the session in relation to what you

contribute and engage • Enjoy this and try to have fun

Disclaimer: • Each page has a few cryptic puzzles • Each page has a quip – potentially provocative • Each page has some worthwhile information • Opinions are not standards – neither yours nor mine,

and we all have them: please keep this in mind • There are 2 cryptic puzzles that reveal themselves across

all 6 pages • I can’t read, so someone will have to read the page text

– preferably on rotation • Fasten your seatbelt

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What are

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Are those benefits that can be quantified and valued in financial terms e.g. cost savings, revenue generation, cost reductions etc.

The measurable improvement resulting from an outcome perceived as an advantage by one or more stakeholders, which contributed towards one or more organisational objective(s) within the Strategy.

A result or effect that is caused by or attributable to the initiative.

Are those outcomes that can be identified, but cannot be easily quantified e.g. end user satisfaction, better access to information, organisational image, customer service, better morale, better perceptions, new system, subjective etc.

Are those outcomes that can be identified, quantified and measured, but provides the potential for benefits when operated e.g.

faster printing, faster downloads, available data etc.

Are those benefits that can be quantified but are difficult or impossible to value in financial terms e.g. fewer customer complaints, productivity gains, greater accuracy, lower staff turnover, increased response times etc.

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By Larry Dalton

Schrödinger's cat likes Benefits. And it doesn’t.

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Benefit:

Financial Benefits:

Non-Financial Benefits:

Objective Outcomes:

Subjective Outcomes:

Outcome:

When ‘the Business’ changes their minds, they are still right.

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Some principles relating to

Benefits identification need to be owned by the Business. Benefits Realisation needs to be owned by the Divisional Executive.

Benefits must be measurable and linked to performance data.

Benefits Realisation requires a Baseline and Benefit Targets in order to measure the resulting value. Targets should include both dates and realisation values. Baselines, or working towards the establishment of baselines should commence very early in Discovery.

The same benefit cannot be claimed more than once – and only on one project i.e. no double accounting.

Realising Benefits should be the focus of the Business Case – not the solution.

Benefits must be aligned to Powerlink’s Strategic Goals.

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About 5 Main Benefits About 5 Main Outcomes About 5 Main Metrics About 5 Composite Metrics About 5 Realisation Controls About 5 Years to Amortize About a 5 Letter Acrostic:

For Business Cases:

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Some clarity relating to

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Either both sides of the ledger are accounted for , or

the Business Case cannot be credible. E.g. when supplanting existing capability: Establishment needs to be ‘equationed’ in i.e. Financial Benefits need to compare the cost of ownership, the cost of decommissioning, as well as the cost of establishment:

Loosely defining Benefits is a common

mistake. If it is too difficult to measure then you should reframe it, or remove it from the Benefits equation.

If a Benefit can’t be measured

numerically it shouldn’t be claimed. If you don’t have a Baseline you have nothing tangible to measure, ergo the benefit cannot be determined. Be sure that you are measuring something! E.g. saving time is not a benefit, it is what you do with that time that may be beneficial.

The only atheism is the denial of truth.

By Larry Dalton

Financial and Non- Financial Benefits are the

focus of a Benefits Centric Business Case. Where these are not entirely credible in their justification, an Outcomes Centric or Blended Business Case should be adopted.

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5 Year Own & Operate Window 5 Year Establish, Own & Operate Window

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Operating Current Capability Establishing & Operating Supplanting Capability

No Financial Case can be made – The Business Case needs to be Outcomes Centric

Benefits must be developed from the top down. Constructing benefits from the bottom up means that the Business Case is not Strategically Aligned.

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Unutilised time = Potential, therefore Outcome

Utilised time = If Tangible and Measurable, then

Benefit

Descartes studies the Business Case. “Benefits?” asks the BA. “I think not” replies Rene, who then disappears.

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Some examples of

S The only reason that Marx and Engels drank herbal tea was because owning proper tea was not permitted.

“Increase Revenue from Electricity

Conduiting by 10% from $10m to $11m per month by June 2016”

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“Reduce Portfolio Report Wait Time by 25% from 4 Minutes to 3 Minutes per Report Request by September 2015

enabling staff to complete daily tasks within 8 hours”

Non Financial Benefit

“Portfolio Report request servicing generation time reduced by 25% from 4 Minutes to 3 Minutes per Service Request ”

Objective Outcome

“Portfolio Report layout improved, user

satisfaction improved from 25% to 50%”

Subjective Outcome

“Reduce cost of system operations by 10% from $1m cost to $900k cost per

month by April 2017 and sustained for 24 months in the static Linux

environment”

Financial Benefit

“Lighten the weight of the carry bins by

50% from 10kg’s to 5kg’s by April 2016 so as to reduce the effort/strain by the

carrier, enabling completion of the carrier cycles within the 8 hour working day”

Non Financial Benefit

“Enable users to immediately access

network resources, reducing login times from 3 minutes to 30 seconds

per login by July 2016”

Objective Outcome

Financial Benefit

Two behaviourists meet in the street. One says to the other: “You’re OK. How am I?”

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Some practice framing

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Identify 2 Financial Benefits, (from one of your latest Discoveries if possible) ) write it up and hang it on the wall. Include realisation controls (metrics) if possible. Team to assist. Discuss.

L Identify 2 Objective Outcomes, (from one of your latest Discoveries if possible) write it up and hang it on the wall. Include realisation controls (metrics) if possible. Team to assist. Discuss

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Identify 2 Subjective Outcomes, (from one of your latest Discoveries if possible) ) write it up and hang it on the wall. Include realisation controls (metrics) if possible. Team to assist. Discuss

Identify 2 Non-Financial Benefits, (from one of your latest Discoveries if possible) ) write it up and hang it on the wall. Include realisation controls (metrics) if possible. Team to assist. Discuss

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By Larry Dalton

Team Up (2-4). Each team to formulate each of the Benefits and Outcomes for discussion.

Initially only 1…after first discussion & validation, do the 2nd.

Take 10 Mins for each. Present – Team Discussion – Team Validation.

Tell me, I’ll forget Show me, I’ll remember

Involve me, I’ll understand