Agenda - Building the Business Case professional training seminar (2 days)

    Building the Business Case Agenda - Day 1

     Day 1 Morning (9:00 - 12:30)

      Introductions and Overview
      •  Introductions: participants and instructor: Business case needs and course objectives.
      •  Business case overview (the view from 39,000 feet): The business case for:
         –  Decision support: Which projects should we fund?
         –  Business planning: What does our operating budget need to be next year?
         –  Management and contol: How do we maximize returns and minimize risks?
         –  Accountability: How do we show that the our represent the best business decision?
     •  5 keys to a successful case (overview from 2,000 feet).
     •  Case design to meet the case purpose.
      
     Designing the case –  The business case introduction
     •  The subject statement: What is the case is about?
        –  Proposed actions and alternatives.
        –  Business objectives and business problems addressed by the action. 
     •  The purpose statement: 
        –  Why is the case is being built? 
        –  Who will use it? For what purpose? When?
        –  What information do they need to meet the purpose?
     •  The Situation:
        –  Why are these business objectives important? 
        –  How are the objectives measured? What are the targets?
        –  What threats do we face? Risks? What happens if we do not act?
     •  Business case scope and boundaries:
        –  Whose costs and whose benefits will be included?
        –  What time period will the analysis cover?

     Case study practical exercise 1: Subject, purpose, and scope
     
     Lunch (12:30 - 1:30)

     Day 1 Afternoon  (1:30 - 5:00)

     Essential financial concepts for the Business Case
     •  The role of capital and operating budgets in the business case.
     •  Projecting cash flow results, cash flow analysis. 
     •  Understanding and using financial decision critera: NPV, ROI, IRR & Payback. 
     •  Other financial metrics and key performance indicators to meet the case purpose.

     Designing the Case – Methods and assumptions I 
     •  Agreement, "buy in," and contributions from management and stakeholders.
     •  Data sources and information research for the business case.
     •  Definiing "cost" and "benefit'' in practical business terms.
     •  The business case cost model.
        –  Rules for deciding which cost items belong in the case.
        –  Ensuring that different scenarios are compared fairly.
        –  A tool for cost analysis.
        –  Showing that all relevant costs are included.
     •  An activity-based cost model.
     •  A resource-based cost model.
     •  Identifying assumptions for costing / Making assumptions.

     Case study practical exercise 2: Building and using the cost model

     Day 1 Summary and Wrap Up 

    Building the Business Case Agenda - Day 2

     Day 2 Morning (9:00 - 12:30)

     •  Brief review and discussion of Day 1: Structure, content,  case building process.

     Designing the case - Asumptions and Methods II
     •  Finding, measuring, and analyzing costs and benefits.
     •  The full range of business benefits
     •  Building the benefits rationale:  
        –  Benefits begin with business objectives.
        –  Misconceptions about "hard" and "soft" benefits.
        –  Problems with so-called "intangible" benefits.
        –  Legitimizing benefits for the business case. 
        –  Measuring benefit value in financial terms.
        –  Measuring value for non financial benefits.

     Case study practical exercise 3: Benefits and the benefits rationale.

     Lunch (12:30 - 1:30)

     Day 2 Afternoon (1:30 - 5:.30)  

     Building the Case 
     •  Business case cash flow projections (costs and benefits) for each scenario.
     •  Building the financial model.
         –  Static vs. dynamic models.
         –  Assumptions and the dynamic model. 
         –  "Costing" and "valuing" from the assumptions. 
     •  Analyzing non financial benefits and costs.

     Case study practical Exercise 4: The Financial Model 
     
     Analyzing results
     •  Sensitivity, risks, and contingencies.
         –  Sensitivity analysis: Which assumptions are most important?
         –  Asking "What if?" questions with important assumptions.
         –  Risk analysis: How likely are projected results? Other results?
         –  Reducing uncertainty in projected results.
         –  Measuring and reporting uncertainty.
     •  Bringing important Non financial costs and benefits into the business case.

     Recommendations and conclusions
     •  Meeting business objectives: What it's all about.
     •  Contingencies: What must we mange, to bring in the predicted results?
     •  Risks: Which risk factors must we watch?
     •  Practical guidance for management.

     Your next steps
     Course summary and wrap up