Investment And Cost Justification 7 Simple Steps

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Investment And Cost Justification 7 Simple Steps

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Investment And Cost Justification 7 Simple Steps

  1. 1. Investment & Cost Justification ™ Kotan Australia P/L (ATF 2P&M Family Trust) A.B.N 32 567 237 240 Seven Steps to Improved Cost Justification that can be Applied to Any Initiatives • Many hours or days can be wasted, because contrary to popular belief using numbers only to tell a story usually fail! • Make sure you know what are the rules of engagement • Numbers are important but they are only part of the total picture • There is a solution to the un-ending maze of cost justification: “The Seven (7) Step Justification Process”, and its simpler and easier than you think! Kotan Australia P/L Copyright © 2008 KotanAustralia.com. All Rights Reserved Tel. / Fax: +61 3 9532 5476 Unauthorized duplication or distribution is strictly prohibited Mobile: +61 (0)418 885122 Email: pmracek@optusnet.com.au
  2. 2. Investment & Cost Justification ™ Kotan Australia P/L (ATF 2P&M Family Trust) A.B.N 32 567 237 240Seven (7) Step Justification Process1. What is Your Company’s Investment Analysis Model? - Know your company’s preferred method of calculation and presentation documents for presentation - Type of payback: IRR, SP, NPV, DCF2. Connect Your Project Funding to Key Corporate Strategies & Objectives - Shareholders, Parents, Regulatory, CSR, Environmental, Public Image3. Develop a Strong Summary with Detailed Back up - You are the expert, so make sure you know - Data, Information or Knowledge – how much is too much?4. Understand the Benefits, Don’t Leave Any on the Table - Look at the total corporate picture for opportunities - Value Proposition: internal and external stakeholders5. Use the Numbers to Tell a Story - What makes your project better, compared to alternatives with good ROI - Its in the “Pitch” which brings the numbers alive Kotan Australia P/L Copyright © 2008 KotanAustralia.com. All Rights Reserved Tel. / Fax: +61 3 9532 5476 Unauthorized duplication or distribution is strictly prohibited Mobile: +61 (0)418 885122 Email: pmracek@optusnet.com.au
  3. 3. Investment & Cost Justification ™ Kotan Australia P/L (ATF 2P&M Family Trust) A.B.N 32 567 237 240Seven (7) Step Justification Process6. Review Preliminary Justification with Key Stakeholders - No surprises and buy in prior to presentation7. Check, Check & Recheck the Numbers and Assumptions - Simple mistakes can kill a project - Understand the numbers, where do they come from and how did the numbers come together? - Have examples at hand to show you have your finger on the pulse! For Further Assistance or Enquiries: Contact: Paul Mracek JP Tel. 03 9532 5476 CPEng,GAICD,FAIM Mobile: 0418 885122 Chief Executive Officer Email: pmracek@optusnet.com.au otan Australia© The Secret to Elegant & Simple solutions in Business Kotan Australia P/L Copyright © 2008 KotanAustralia.com. All Rights Reserved Tel. / Fax: +61 3 9532 5476 Unauthorized duplication or distribution is strictly prohibited Mobile: +61 (0)418 885122 Email: pmracek@optusnet.com.au

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