This document discusses the importance of focusing on value when developing business cases and programs. It defines value as the worth or outcome compared to the effort or cost. Value trees and value drivers are used to breakdown and prioritize how value will be created. Financial value drivers are linked directly to financial metrics while non-financial drivers impact stakeholder expectations. Developing a strong business case involves assessing a client's ability to generate value, estimating the program's impact, justifying costs and benefits, and validating the case with stakeholders. Program management is then responsible for delivering the promised value by linking activities to value drivers and metrics.

1. - Chetan Khanzode

2.  Focus on value.
 Value trees and Value drivers.
 Business Case.
 Business Case development.
 Program Management to deliver value.

3.  Business invest to achieve the strategic
competitive advantage to stay ahead in
competitive environment.
 Value is worth outcome compared to the
effort (or cost) to achieve it.
 From Service provider perspective : It is
serving the client to make them successful.
 From Client perspective : It is value generated
based on the service provided and ultimately
the what all outcomes/benefits delivered.

4.  Program is obtaining the benefits stated in
the Business case based on strategy of
business .
 Both service provider and clients experiences
the value of a program in both different and
similar ways with common vision resulted in
bringing business benefit outcome.

5.  Value Delivered in Telecom Client can be
◦ Reduced time-to-market from initial product/offering
concept to availability of product to final customers
on the market and ability to bill customer for the
product.
◦ Optimized Order-To-Bill lifecycle.
◦ Decreased average time to close a customer ticket.
◦ Increased customer satisfaction index.

6.  Focus on Value to benefit to client like
◦ Discounted cash flows.
◦ Delivering a required business capability on time.
◦ Taking the complexity out of delivery.
◦ High return on invested capital to remain competitive in
Market.
◦ Increasing economic value add.
 What benefit both service provider and client gets
◦ Successful implementation of a program.
◦ Building long-term partnerships.
◦ Quality client service.
◦ Synergy of Operations.

7.  ‘Value Tree’ is a tree-shaped visualisation of the
benefit part of a business case or A value tree is
the breakdown of the value generated by a
program.
 Value trees are used to support complex
situations by progressively breaking down
high-level subjective goals into low-level
measureable objectives.
◦ Value drivers are the operating factors with the greatest
influence on strategy execution with end result of value
creation.
 Financial value drivers
 Non-financial value drivers

8.  Financial value drivers
◦ Economic success factors linked directly to line item(s) on the Income Statement or Balance Sheet.
 Increased Revenues from existing customer/clients by up-selling or cross selling to customer
 Increased Revenues from New Customers.
 Automation to reduce labor cost
 Cost reduction by off shoring the work
 Continuous improvement by Quality initiative to decrease Maintenance.
 Non Financial value drivers
◦ Stakeholder expectation Management with alignment to business case leads to corporate success
 Frequent pulse check for Increased Customer Satisfaction
 Overall Improved Brand Image as benefit/outcome.

9. Value tree creation steps
1 Identification
• Industry trends
• Analysis of stakeholders from business standpoints
• Value Analysis to focus on path of economic profitability
• Review of Clients Strategic objective and process model
• Service provider industry capability model
2 Value analysis method
• Understand and Map cause and effect link to financial drivers
• Prepare value driver prioritization
• Incorporate comments from subject area experts/field
• Plan/setup cross-division workshop
3 Prioritization
• Conduct cross-division workshop
• Prioritize value drivers with Manageability, importance
• Critical few drivers
• Identify gaps related to
• Stakeholders
• Financial/non-financial
• Leading/lagging
• Strategic/operational
4 Accountability mapping
• Identify key performance indicators (KPIs)
• Assess measures as Simple, Timely and Actionable
• Map accountability Individual versus shared
• Identify and resolve gaps

10. Consulting
Profit
Sales Cost
Staff Salary
Sales Effort
Project margin
Hourly Rate
Consultant Salary
Travel Cost Reimbursement
Sales of Hours Bid Process
Decision –
focus on
prospectiv
e clients
Key
Account
Management
Capabilities of service
Organisation

11.  What is a Business Case?
◦ A Business Case has a direct impact on value.
◦ A Business Case describes the engagement’s ( service provider and Client ) value
proposition,
◦ It help to guide management in decision making.
◦ A Business Case must plan how to realize value for each identified value driver.
◦ A Business Case defines and describes how and when benefits will be delivered to the
business and accountability for delivering the same.
 How does a Business Case help?
◦ Demonstrates how a major investment creates value
◦ Includes both quantitative and qualitative rationale
◦ Supports business decisions by weighing options
◦ Multiple options creation to track performance
◦ Measure success after a decision has been made
◦ Gains alignment and management consensus for a project success
 Why is a Business Case needed?
◦ A Business Case is required to understand value to Support decisions and Track
performance

12.  Business Case Management includes:
• Confirming value drivers and business goals
• Performing cost and benefits analysis of the Business Case
• Refining the Business Case and obtaining stakeholder approval
• Providing ongoing measurement of value and updating the Measurement Plan as the
engagement requires

13. ◦ The key steps in Business Case development are:
◦ Client Ability Assessment
• Assess the client’s ability to generate value, independent of program impacts and Use a value tree to assess
the client’s ability to generate value.
◦ Estimate Program Value
• Use value drivers and KPIs, already identified and analyzed while developing the value tree, to estimate the
value impact for each driver on the basis the program objectives and projects.
• Estimate the value generated by the program for each value driver.
◦ Business Cost benefit Justification
• Complete the Business Case, providing the client with a cost/benefit justification based on the value
generated by the program
◦ Business Case Validation
• Share the Business Case with stakeholders to get their feedback and validation on their single areas of
responsibility and also on the overall Business Case and cost/benefit analysis.
Client Ability
Assessment
Estimate of
Program Value
Business Case
with cost benefit
Justification
Business Case
Validation

14.  Each Program activity must have
• Clear ties to your client’s value drivers and roadmap to achieve the same
• Defined roles and accountability for generation of outcome
• Metrics to measure the activity’s progress and value
◦ During program execution, the actual value realization results must be monitored and compared to the ones planned
in the initial Business Case. In case of significant deviations of actual value realized and related KPIs from initial
Business Case KPOs and plans, appropriate corrective actions must be taken to re-orient the program and its projects
towards its initially planned targets.
◦ Program Management must drive a program (or business initiative or a set of projects) to realize the
value generation opportunities implied in each identified value driver.
◦ For realizing this value, careful Business Case planning can quantify the business results and financial
figures. Achieving planned business results is therefore the ultimate goal of Program Management.

15. Thanks You!!