EFFECTIVE BUSINESS CASE DESIGN - heti.nsw.gov.au · BUSINESS STORYTELLING •NSW Far West Hospital...

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EFFECTIVE

BUSINESS

CASE DESIGN

WELCOME

• Acknowledgement of Country and Elders

• Acknowledgement of Carers

• Housekeepers

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Collaboration

Openness

Respect

Empowerment

Conduct,Confidentiality

andAgreements

PARTICIPANT INTRODUCTIONS

1. What are you personal learning goals for this session?

2. What do you want to achieve today?

3

LEARNING OUTCOMES

At the completion of this workshop participants will be able to:

• Accurately identify the business issue ensuring organisational

strategically aligned options for change

• Analyse business options and feasibility to support positive

workplace change

• Recognise the impact of the proposed change on the organisation

and the wider health system

• Identify the key stakeholders – learn how to analyse, communicate

and collaborate with them

• Gain insight into the perspective of the business case evaluator

MAP OF THE WORKSHOP

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2

3

4

5

6

7

8

9

10

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Introduction

Business case

fundamentals

Assessing

business cases

Ensuring strategic

alignment

Stakeholders

Identifying options

Testing options

Risks

Writing well for

business cases

Evaluation

Summary

Lunch

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BUSINESS CASE PROCESS OVERVIEW

The case for change

Ensuring strategic alignment

Stakeholders

Alternatives / Options

Costs and Benefits

15 new staff to cover a critical staffing

shortage in the Emergency Department

2New Software package – Integrated

Records Management Retrieval on iPad

3A geothermal conversion energy project – that

uses green energy for heating and cooling

Next topic

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• The case looks compelling…

• The $1 million will be used for staffing costs

• 22 patients suffered serious complications due to delays in being

seen in the last 2 months



• When further research is conducted however…

• Triage processes have been found to be less than adequate with

two new staff members

• The Emergency department is at capacity with beds. Extra staffing

will not solve the issue

Back

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• The case looks compelling

• A new software system that integrates patient records, has

instantaneous live feeds

• Patients data is mobile, being able to be displayed on iPad

• One of the doctors knows someone at the Software company, and

says it is an excellent package



• The systems that are to be integrated are found to not “talk”

to each other

• To gain this integration a further project will need to take place

costing an additional $800,000

• Records will not then integrate with other hospitals

• Clinical staff will need training costing an additional $60,000

• iPads will need to be purchased costing an additional $60,000

Back

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• The case seems expensive & unfeasible

• A series of bores is drilled 120 meters down into the ground

• Water will be pumped down the bores and reticulated back to the

surface in a closed loop system that uses geothermic heating and

cooling for the hospital



• However reading the case further…

• Supplies of natural gas to the area have become extremely limited

and expensive

• 3 other options are fully explored in the case

• This solution will save approximately $500,000 per annum in

conventional power costs

• Detailed costing show it will pay back its cost in 2 years through

savings on conventional power charges

Back

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EXAMPLE OF A WELL WRITTEN BUSINESS CASE

• What is effective about the case?

ASSESSING

BUSINESS

CASES

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Critical things that a

Reviewer looks for

ASSESSMENT CRITERIA

• Assess the business case using

the “Business Case Prioritisation

and Assessment Criteria”

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CASE FOR CHANGE

1. Describe the problem to solve or the opportunity to seize

2. Describe how the proposal relates to and will support the

organisations core interests and priorities

3. Show how the proposal is consistent and/or delivers government

policy, relevant legislation and the agency’s stated corporate plan

4. Demonstrate discussion, consultation with key stakeholders of the

proposal. Their views should be made clear.

5. Where relevant the impact on the environment should be discussed

Linked to creating value in the health system and better

patient outcomes.

Benefit

Local

NSW Health

Organisation

Strategy

NSW

Health

Strategy

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STRATEGIC ALIGNMENT

Refer to the NSW State Health Plan

Demonstrate how your proposal aligns with your organization’s health

strategy and the NSW State Health Plan.

This step is Critical for

business case success

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STAKEHOLDER

MANAGEMENT

Stakeholder Management is

critical to the success of a

project.

By engaging the right people in

the right way in your project, you

can make a big difference to its

likelihood of success.

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POSSIBLE STAKEHOLDERS

• Customers

• Prospective Customers

• Your team

• Hospital executive team

• Local Government

• Suppliers

• Executive Management Team

• Ministers/Councillors

• The Public

• Prospective staff

• Commonwealth

• State Government

• Interest/Lobby Groups

• Unions

• Professional Bodies

• Funding providers

STAKEHOLDER ANALYSIS & MANAGEMENT

BT

AJ

CR

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Development strategies for

stakeholder management

STAKEHOLDER ANALYSIS & MANAGEMENT

BT

AJ

CR

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UNDERSTANDING YOUR KEY STAKEHOLDERS

• What information do they wish to gain from you?

• What will motivate them to actively and positively support the

project?

• What interests both financially, socially and emotionally do they

have in your project and whether these interests are positive or

negative?

• What can you tell them given some matters/issues may be

‘Commercial in Confidence’?

UNDERSTANDING YOUR KEY STAKEHOLDERS cont.

• Given their motivation and interest in the project, what do you want

to tell them?

• How do they wish to be communicated with and which type of

correspondence are they seeking from you?

• Can you change any negative thoughts they may have on the

project into positive ones, if not, how are you going to manage their

opposition

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OPTIONS

IDENTIFICATION

& ANALYSIS

Option 3

Option 4

Option 2

Option 1

Base Case /

Do Nothing

Problem or

Opportunity

Option 5

Option 6

Option 7

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OPTIONS TO CONSIDER…

• Non-build options that meet the same service delivery objective

• Alternative design possibilities or construction techniques available to

deliver the project

• Extension or modification of existing systems

• Lease options instead of build or own options

• Alternative means of delivering the service:

- Sharing with one or more other agencies

- Service competition

COSTS

Capital and recurrent costs

Quantitative & Qualitative

BENEFITS

Capital and recurrent costs

COST-BENEFIT ANALYSIS

COST-BENEFIT ANALYSIS

AIM: A way to compare all feasible options against each other

Option 1

Base Case /

Do NothingOption 2 Option 3 Option 4

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RISKANALYSIS

What is the

risk of doing

something?

RISK ANALYSIS

What is the risk

of not doing

something?

What is the

mitigation

strategy?

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RISK ANALYSIS

NSW Health Risk Matrix

Risk Management Plan

IDENTIFYING

THE PREFERRED

OPTION

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Intuitive

thinking

FINDING THE PREFERRED SOLUTION

(Source: TechRepublic)

Structured

deliberate

thinking

What makes a great idea?

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IDEA

Risk

Analysis

Funding

Political

To consider…

Stakeholders

Economic

SocialFinancial

http://innovation.gov.au/

http://innovation.gov.au/

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1. Identify the key problem or opportunity

THE BUSINESS CASE PROCESS

2. Conduct research

3. Identify the options – include a base case

4. Identify what is feasible and the preferred option

5. Plan the project – scope and implementation

6. Develop the case

WRITING WELL

FOR BUSINESS

CASES

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Writing well for a great

business case

WRITING WELL FOR BUSINESS CASES

How do you bring your case to life?

Business

Storytelling&

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STORYTELLING

• Bring the reader into the story

• Honest and authentic storytelling

• Fact Based

• Clear

• Benefit focused

Restate the

objectives to

make sure

everyone knows

you understand

them.

FINDING THE PREFERRED SOLUTION

You should end up with a crisp and compelling message which will showcase your thinking.

Speak about

available

alternatives, their

pros and cons,

benefits and risks.

Identify the

preferred solution.

Explain why this

solution is

preferred by

discussing the

selection criteria.

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BUSINESS STORYTELLING

• NSW Far West Hospital est. 1948

• Lifts in main building need repair

• Population of 500,000

• Full capacity hospital by 2018

• Demand is forecast to grow by 10% by 2019

• That is approx. 500 people per year from 2019 who can’t be seen annually

• Can’t install new equipment due to configuration restrictions of building

• Hospital aims to serve the needs of its population

• Options: i) a new hospital (preferred), ii) sending excess patients to next

hospital 1 hour away or iii) do nothing

MEASURING SUCCESS

For your preferred option, describe what measures will be used to

determine whether the benefits have been delivered, including key

performance indicators (KPIs) that will be used to measure the delivery of

the benefits and baseline data.

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THE EXECUTIVE SUMMARY CHALLENGE

FINAL TOPICS

AND CHALLENGE

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The case for change

Doesn’t focus

on defending

a solution at

all costs

Linked to a wider health strategy &

better patient outcomes

Stakeholder

Management

The case is more than

just the costs

Costs are able to be

compared to each other

Understandable – Written for clinical and non-clinical

backgrounds

It talks about

the opportunity

investment (the

benefits)

Storytelling –need to tell a

story

Generates value in the

health system

Clear Issue

Identification

Objectively & accuracy & research

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1. Identify the key problem or opportunity

THE BUSINESS CASE PROCESS

2. Conduct research

3. Identify the options – include a base case

4. Identify what is feasible and the preferred option

5. Plan the project – scope and implementation

6. Develop the case

EFFECTIVE BUSINESS CASE DESIGN - heti.nsw.gov.au · BUSINESS STORYTELLING •NSW Far West Hospital...

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