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Business case presentation_adel etman


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Very important , Adel etman, Egypt.

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Business case presentation_adel etman

  1. 1. Preparing and Presenting an EffectiveBusiness CasePresentation to SLIS WellingtonJuly 2007
  2. 2. Table of Contents What is a business case? Why develop a business case? What goes into a business case? Presenting your business case Summary 2
  3. 3. What is a business case?“A business case describes the business reason for undertaking a project. It provides decision makers with the information they need to make a fully informed decision on whether funding should be provided and/or whether an investment should proceed.”Examples of potential projects in the library/information context Cataloguing systems Major acquisitions Digitisation Staffing 3
  4. 4. The business case should answer these questions: What is the project? • Description • Value proposition • Likely impact(s) • Who are the How much value will it stakeholders? create? • NPV of the investment • Resulting time-phased What will it take to cash flow impact implement? • IRR and payback period • What operational changes are necessary to achieve desired financial benefits Is this project worth doing? 4
  5. 5. Table of Contents What is a business case? Why develop a business case? What goes into a business case? Presenting your business case Summary 5
  6. 6. Why is a business case necessary?• Creates a climate for rigorous analysis • Establishes a benchmark of new ideas and the ability to quantify against which the expected outcomes performance of the project• Calls for the consideration of issues can be monitored and benefits before a project is launched and/or can be tracked implemented Creates • Allows for identification of• Identifies financial and business Discipline problems and tracking of owners of a project; establishes expected costs/benefits accountability for results Advantages of Creating a Establishes Business Provides Direction Case Control Minimizes Risk• Provides management with an outline of the key steps necessary to complete the project(s) • Identifies the financial impact of• Gives stakeholders a sense of where the project (i.e. IRR) things are headed if projects are • Assesses the impact of the risks implemented and rewards associated with the• Highlights the operational changes project necessary to implement a project 6
  7. 7. Table of Contents What is a business case? Why develop a business case? What goes into a business case? Presenting your business case Summary of key concepts 7
  8. 8. Preparing the business case Use your organisation‘s methodology which will include:  Evaluation of the level of significance of the project  Information on the scope/details of the project  Who will it affect?  What is the policy context? Utilise those people who have the information and skills to supplement your business case. Optimistic or unrealistic budgets and implementation schedules can destroy the credibility of a business case. 8
  9. 9. Business case components • High level summary of opportunity Executive • Description of the project and resources required to implement Summary • Summarise how the project aligns with organisation needs or strategy • Where are we now? Analysis of • What are the various options Opportunity • Summary of opportunity (value creation and value drivers) • Relevant internal and external factors • Detailed description of costs and benefits (generally quantifiable) Costs and • Initial and recurring costs and benefits Benefits • If there is uncertainty in the numbers, presents a range of numbers and describes the uncertainty (including ―best case,‖ ―worst case‖ and ―most likely‖ scenarios) • Cost/benefit assumptions • Detail non financial risks and rewards eg impact on employees Risks and • Mitigation plans for risks Rewards • Can be a strong factor in the success of a business case • Implementation timeline, deliverables, resources Implementation • Operational changes required to achieve financial targets Plan • Business owners and operational owners of the project • How will you recognise when the need has been met? 9
  10. 10. Table of Contents What is a business case? Why develop a business case? What goes into a business case? Presenting your business case Summary 10
  11. 11. Presenting your business case Raise idea verbally first Ask what level of detail is needed First decide how formal you want to make your business case. Ensure you are presenting the business case to the right person Does your organisation have a set business case structure? Is there a multi-step approach in gaining approval? Usually depends on either the amount of money you are asking for, or the extent of change you wish to make. The larger the sum of money, or the greater the degree of change, the more formally the business case should be presented. 11
  12. 12. Presenting your business case Does funding have to come from a specific budget? When presenting the business case, try to imagine every possible question that could be asked and have the answers ready. Make sure the language used is right for the reader and the case is relevant, concise and interesting. Talk to people in your organisation that have presented a successful business case in the past – what factors were important? Create a story that speaks directly to user needs and offers help with their problem. Understand the key ‗sway‘ factors – is it financial, political etc The argument should be based on sound data and logic but also contain an emotional appeal. (If I had 30 seconds with the decision maker, what should I say to convince them to fund the project) 12
  13. 13. Presenting your business case – know your reader Present your business case in a way that matches the style of the decision maker. As a general guideline, most business people display character traits that indicate their broad business style. Spontaneous Expressive Social/Amiable Dominant Easy Going Direct Driver Analytical Controlled 13
  14. 14. Presenting your business case – know your reader How do you persuade a ―Driver‖  Keep it short  Use a structured presentation  Your questions should show incisive thinking and knowledge  Your answers should be direct, brief, targeted and decisive  Their main overt interest is in results  Need to show specific evidence 14
  15. 15. Presenting your business case – know your reader How do you persuade an ―Amiable‖  Use an informal, friendly presentation style  Your questions should show the interest in people  Your answers should be friendly with a human content  Their main overt interest is in team building and how it is seen by others  Need to include facts and sentiment, personal experience, build on the familiar  Avoid to much pushing, urgency or too technical comments 15
  16. 16. Presenting your business case – know your reader How do you persuade an ―Analytical‖  Be disciplined and on time with all facts in order  Use a logical, process oriented presentation style with support for details  Your questions should be pointed and technical  Your answers should be specific and supportable  Their main overt interest is in the factual detail showing how it works and the logic  Avoid to much flamboyance, absence of facts, inaccuracy or incompleteness of detail. 16
  17. 17. Presenting your business case – know your reader How do you persuade an ―Expressive‖  Personal focus is important  Use an informal, or informal but warm presentation that is creative and expressive  Your questions should show achievements and pride  Your answers should be personal and show charisma and warmth  Their main overt interest is in the big picture/vision  Need to include imagination, creative data  Avoid to many details or being impersonal 17
  18. 18. Table of Contents What is a business case? Why develop a business case? What goes into a business case Presenting your business case Summary 18
  19. 19. Summary Know your organisation Research the issues well and discuss the proposal extensively internally Write the business case with all costs and issues explained The business case should include the relevant financial justifications, but it should not be the sole purpose of the document. The business case must cover a broad range of topics and issues that address all stakeholders‘ concerns from economic, social and environmental perspectives. 19
  20. 20. Key concepts 1Use the business case as a leadership toolA business case is not just a requirement for securing approval of major project expenditures. It can also serve as an effectiveleadership tool to weigh the merits of various approaches, communicate the intent of a proposed plan, and align keystakeholders behind the proposal. Clients are far more likely to make good decisions if they consider a reasonable set ofalternatives, the benefits and costs of the alternatives, and the potential risks that might derail implementation of eachalternative. 2Build a business case to evaluate options, not justify a positionExplore alternative possibilities, not just one option. 3Identify each alternatives "hard" and "soft" costs and benefitsWhen developing a business case, consider and calculate the costs and benefits from all points of view—financial, customer,executives, employees, and the public. Although decision makers take a deep interest in the IRR of large capital investments,they also want to weigh softer issues such as an ideas potential impact on employee morale, customer satisfaction, innovation,and legal risk factors. Many of these areas are just as important as hard numbers in helping a company realize its strategy andgoals. 4Align key decision makers and stakeholdersInclude all key stakeholders in discussions who would be affected by the proposed changes. Use the discussions to surfaceinformation to improve the proposal and lay the groundwork to ensure buy-in from all those whose support would be needed tosuccessfully implement the plan. Confirm assumptions and assess alternatives during stakeholder discussions. 5Identify and consider potential problems that could derail the proposed planOnce issues and problems have been identified, define potential mitigation strategies to address potential problems and issues. 20
  21. 21. Key concepts (continued) 6Identify project owners and business owners for required operational changesIn addition to project owners, business owners should also be identified for each of the operational changes required to achievethe desired financial benefits. Operational changes necessary to achieve the benefits highlighted in the business case must beclearly articulated, along with key metrics, baseline assumptions and desired financial/operational targets. 7Develop and communicate a powerful story showcasing your ideas advantagesDevelop a pitch to "pre-sell" the proposal. Develop a concise but compelling strategic story to emphasize the benefits of theproposal. If necessary, develop a short and concise graphic presentation to sell the concept to executives and key stakeholders. 8Use benefits tracking to update the business caseA business case is not something that should be put in a binder and stored on a shelf to gather dust. Once a business case hasbeen approved and implementation has begun, actual benefits and costs should be tracked vs. planned benefits and costs. Ifthere is significant variance between actual vs. planned results, the business case should be updated to reflect actual benefitsand costs. 9Ultimately, a good business case helps the client make a decisionAt the end of the day, a business case ―looks‖ like whatever the client needs to make a decision . . . the goal is to help the clientmake a decision, no matter what the format of the business case. 21
  22. 22. Some useful definitions The Payback Period: The number of years that it takes to generate enough cash flows to recover the initial investment. Return on Investment (ROI): The cashflows generated by the option divided by the total investment in the option. Discounted cash flows should be used to calculate ROI. Discounted Cash Flows: A discounted cashflow is equal to the present value of a cash flow received in the future. 22
  23. 23. Key Questions What is the business problem to be solved? What is the value of solving the problem? What is the cost of not solving the problem? What is the proposed solution? What are the major deliverables? What is the estimated cost? What is the estimated duration? Who will implement the solution? Where is the funding coming from? Who has what responsibilities? 23