The document outlines a seven step process for justifying investments and costs. The steps include: 1) Understanding the company's investment analysis model; 2) Connecting projects to corporate strategies and objectives; 3) Developing a strong summary with backup details; 4) Understanding all potential benefits; 5) Using numbers to tell a story; 6) Reviewing preliminaries with stakeholders; and 7) Thoroughly checking numbers and assumptions. Following this process can help avoid wasted time and ensure a complete cost justification presentation.

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. Investment & Cost Justification ™
Kotan Australia P/L
(ATF 2P&M Family Trust)
A.B.N 32 567 237 240
Seven (7) Step Justification Process
1. 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, DCF
2. Connect Your Project Funding to Key Corporate Strategies & Objectives
- Shareholders, Parents, Regulatory, CSR, Environmental, Public Image
3. 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 stakeholders
5. 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. Investment & Cost Justification ™
Kotan Australia P/L
(ATF 2P&M Family Trust)
A.B.N 32 567 237 240
Seven (7) Step Justification Process
6. Review Preliminary Justification with Key Stakeholders
- No surprises and buy in prior to presentation
7. 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