Implement business case Plug and play concept

Projects

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The Implement Consulting Group business case products

• As a customised service, Implement Consulting Group (Implement) provides thetalent to establish the business case for your company or organisation

• The business case is established with the use of tools and methods developed byImplement

• Typically, training of employees is not included

Implement develops the business case for your company or organisation

Implement co-creates the business case with you

Training of the your employees

• To acknowledge many companies’ and organisations’ desire to be able to have in-house expertise to develop and maintain business cases as an essential tool of strategic decision-making, Implement provides the service of co-creating the business case together with you to ensure learning and sustainable effect in your organisation

• This includes a train-the-trainer concept

• Implement has designed training sessions to ensure that the employees arecapable of designing and maintaining business cases at all levels

• The sessions can be implemented before the actual making of the businesscase, during the work or just as a general development of the competences inthe organisation

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Competences needed to develop the business case

Skills regarding solution design

Understanding of core business areas

Involvement of key stakeholders

Establishment of measurable effects relevant to business areas

Driver of measurement systems

Data analysis – quantification of relevant data

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Business case – step by step

Purpose

Cost/benefit

Effects

Assumptions

Choice of model

Business case

We establish an overview of the purpose of the project.

We create the first overview of costs and benefits. Project owner must approve purpose and first draft of costs and benefits.

Project owner must approve that the project realises these effects and the assumptions that form the basis of the business case.

We break down effects into a hierarchical structure and put them on a timeline.

We draw up the business case as an assumption diagram.

We determine the strategy for realising the effects.

We create the business case model.

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What is a business case?

• A business case is a description of the reasons for the project and the justification for undertaking it.• The business case is based on the estimated costs and the expected outcome.

What does the business case cover? All changes in the organisation in which the project is carried out.

What is the business case used for? • To provide a baseline for decision-making processes.• To keep the project on track throughout the project’s

life cycle in relation to the stipulated targets.

Reduction in cost

Increase in revenue

Increase in productivity

Business benefits

Employee satisfaction

Cooperation and

network

Leadership quality

Human effects (behaviour)

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Change drives effect KPI measurements support change

EFFECT

KPI

MEASUREMENT

P1

P2

P3

B2

B1

B3

Goal Behaviour

Business A consequential change in behaviour or the business of implementing a change.

The defined measure for measuring the effect. It is possible to have multiple KPIs for a single effect and also have KPIs for both behavioural impact and business impact.

The actual measurement for each KPI, i.e. reduction in employees by 10% per quarter. This is a concrete measurement carried out for a KPI called “less employees”.

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Behavioural impact is often a leading indicator for the business’ ability to realise the business impact in the future

Business adaption over time

Behavioural impact

Business impact

Reaction

Learning

Behaviour

Results

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Kirkpatrick’s four levels of training evaluation

Reaction

Behaviour

Results

Learning

Does it make a difference to the business (ROI)? Impact from training and new knowledge are reflected in the business’ performance and KPIs.

Do they use it? The participant changes behaviour in the long run and adapts applied learning.

Did they learn anything? New knowledge gained, but the participant only applies is for a short period of time and then returns to the old way of doing things.

Are they satisfied? It was a good course, and it was nice to meet new colleagues from the organisation.

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Measurements keep focus on effect realisation by structuring the effects in concrete measurable quantities

EFFECT

KPI

MEASUREMENT SYSTEM

MEASURE

TARGET

Measurement system

Source: http://www.businessballs.com/kirkpatricklearningevaluationmodel.htm

Area: Describe the KPIs within a given area, i.e. reduction of waste in a given process.

Measure: What is being measured? I.e. saved time in a given process.

Definition: Description of the measure – What is included in the measure?

Reporting: Frequency, data requirements and format. How often do we report, which data do we need for reporting (KPI), and what is the reporting format (PowerPoint, Excel, Word etc.)?

Organisation and responsibility:

Who is responsible for communicating the results to the organisation, and who is responsible for the quality of the results?

Communication and follow-up:

How do we report the results to the organisation and follow up on the results? Monthly follow-up through a visual effect board?

Business perspective:

How does the business gain from this KPI?

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Use the business case to mark the effects and ownership

Measure and

celebrate Follow up and monitor

effect

Ownership

Establish business

case

Con

stan

t foc

us o

n go

al

Build strong business case

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Visual Impact Scoreboard

OBJECTIVES IMPACT MEASUREMENT

Project benefit structure Project objectives KPI/ measure

Base-line Target Date: Date: Date: Date: Date:

(closure)

Overall objective ROIC 10 11

Business Impacts:

Financial performance KPI A 95 102

Customer performance KPI B 23 38

Process Performance KPI C 92 98

Behaviour Impacts:

Key practice 1 KPI E Observations and trends:

Key practice 2 KPI F

Capability 1 KPI G

Capability 2 KPI H

XXX

P1

P2

P4

B2B1

B4

B3

Business/PerformanceBehavior/Capability

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Implement business case concept – plug and play

Method • How to create a business case

Models • Which model to choose

Training • Introduction to methods, models

and tools• Hands-on experience

Tools • Effect board• Estimation

Plug and play business case

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Solution • Purpose

• Users

• Stakeholders

• Solution

• Process

Consequences • Financial

• Quantitative

• Risk

Follow-up • Risk management

• Benefit realisationplan

• Key indicators (KPI)

Sustainment • Project manager

• Steering committee

• Milestone plan

• Business changemanager

Models

Tools • Stakeholder map• The grid• DuPont model

Tools • Risk matrix• KPI chart• Effect board – impact case

What does the solution look like?

Is the investment sound?

How do we measure the benefits?

Who is responsible and accountable?

Iterative process to develop the most solid business case

Business case Method

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Tools and models in the project

Effect is measured Deliveries from project Project description Description of idea

A Analysis Implementation Evaluation Idea

Results

Time

Benefit (+)

Cost (-)

Effe

ct/

bene

fit

Impact case (effect board) The impact case is used to communicate and monitor the primary effects between management and project.

(Measuring system)

Method

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We suggest three standard models that can be customised

Suggested standard business case models • Based on the review of the business case model,

three Implement business case formats aresuggested as standard and another business casemodel for specialised use, e.g. the DanishGovernment’s IT project business case.

Standard BC models Customisation Customer BC model

From standard models to customised business cases

The standard business case models can be customised to fit the clients’ needs • The suggested standard or specialised business

case models should be customised to fit the clients’needs.

• To support this business case, examples should beenclosed together with the business casetemplates.

Suggested standard business cases

Models

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Selected models Simple business case (Word)

Models

Purpose • The simple business case model

is primarily used in publicprojects

• The aim of the model is toprovide a simple business casemodel for projects and outline theminimum requirements.

• The model is easy to use, andthe resources required areforeseeable.

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Selected models Simple business case (Excel)

Models

Purpose • The aim of the model is to

provide a simple business casemodel to use in the proposalphase or during the first strategyphase based on some high-levelassumptions.

• The model is simple and easy touse with high flexibility.

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Selected models Business case (extended)

Purpose • The aim of the model is to provide a

standard business case that can beapplied to several cases with specificassumptions.

• The model is flexible, but the userneeds to spend some time onunderstanding the different sheetsand functionalities.

Models

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Selected models – specialised business cases Government IT business case model

Purpose • The purpose of the model is to ensure a

strong basis for decision-making andstrengthen the resource control of ITprojects.

• Standardised assumptions and reportingensure transparency across IT projectsas well as a high consistency level.

Models

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Various tools are used in the development and follow-up process

Selected tools

Business case canvas

Quantification and traceability map

DuPont model

Effect hierarchy

Effect measurements

Selected tools for business development and follow-up • Various tools are used to facilitate and

structure the development of the businesscase, e.g. business model canvas and theDuPont model

• Other tools are used to follow the effectsand measurements and follow e.g. theeffect hierachy and effect measurements

Tools

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Purpose, structure and learning objectives

PURPOSE The purpose of the training is to allow the participants to:

• Understand a business case

• Develop the business case

• Communicate the business case

STRUCTURE The training is structured around:

• Theory with home assignments

• A follow-up day with focus on the homeassignments and practical tools to allowthe participants to work with businesscases in their own organisation

LEARNING OBJECTIVES The learning objectives for the participants are to:

• Understand the rationale of a businesscase

• Know the content of a business case

• Be able to develop a business case

• Communicate the content of thebusiness case

• Know the relevance of business cases intheir organisation and projectgovernance

• Distinguish different types of businesscases from each other

Effect The effect of the training is:

• The client has a team of employees who are able to create a businesscase and are able to use it to communicate and visualise the effect of theinitiatives within the business case.

Training

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Example of content

DAY 1

• Purpose of the business case• Content and structure of the business

case

• Communicate the business case• Background and goal hierarchy

• Cost/benefit analysis

• Business and behavioural benefits andeffects

• Communication

HOME ASSIGNMENT

• Participants create their own businesscase

• Effect board

• Sparring with buddy from ownorganisation

DAY 2

• Presentation and evaluation of homeassignment

• Set up the goal hierarchy

• Use a business case model to input andtrack effect

• Discussion around when a businesscase is relevant in the participant’s ownorganisation

The effect of the training is: • Understanding and gaining an insight into the business case structure and content• Becoming competent at creating business cases in the clients’ own templates

• Understanding the connection between effects of the initiatives and the business case

• The ability to use the business case:– As a basis for decisions

– For communication and visualising the effects

– As a tool for stakeholder management

Training

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Business case – get started the right way

For more information

Implement Consulting Group Jesper Krøyer Lind Email: jli@implement.dk Mobile:+45 3085 8002

Learn more about Implement’s Business Case model and getting the platform for making a qualified decision.