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1 
© 2014 copyright of Training ByteSize unless otherwise stated. 
Martyn Kinch –TrainingByte Size Ltd
3 
© 2014 copyright of Training ByteSize unless otherwise stated. 
Training Bytesize 
Martyn Kinch 
martyn@trainingbytesize.com 
01270 610352 
07850 202444 
martynjkinch
4 
© 2014 copyright of Training ByteSize unless otherwise stated. 
Who Are Training Bytesize: 
•Project Management Translation projects 
•Español, français, Deutsch, Polski, العربية 
•Preferred PM Training suppliers to: 
•Top Tier Trainers and Great Customer Service 
•Family run business with a passion for trainingin project management 
•Over 350 Exams a month now taken through TBS 
•New Office in Australia, partners in Germany, Spain, France and Poland
5 
© 2014 copyright of Training ByteSize unless otherwise stated. 
Courses Include 
Courses available as Classroom 
Blended or Online: 
PRINCE2 
Agile 
Better Business Cases 
Managing Benefits 
Business Analysis 
Change Management (2015) 
APM-IC 
APMP 
APM PQ (2015) 
APM Risk Level 1 
Green Project Management
6 
© 2014 copyright of Training ByteSize unless otherwise stated. 
“Publicsectorinvestvastsumsofmoneyeachyearonneworreplacementassetssuchasbuildings,equipmentandfacilities. 
WithsomuchdemandforCapitalInvestmentitisessentialthatwemaketherightchoicesanddemonstratevalueformoney”
7 
© 2014 copyright of Training ByteSize unless otherwise stated. 
The Five Case Model (from HM Treasury) 
A framework for ‘thinking’ to help answer three basic questions 
‘where are we now?’, 
‘where do we want to be?’ and 
‘how are we going to get there?’ 
A step by step guide to developing a business case by: 
•Establishing a clear need for intervention -the case for change. 
•Setting clear objectives –desired outcome 
•Considering a wide range of potential solutions -an optimal balance 
of benefits, cost and risk. 
•Putting the arrangements in place to successfully deliver the proposal. Successful execution 
The process is about 
thinking not writing
8 
© 2014 copyright of Training ByteSize unless otherwise stated. 
UK Projects 
“Study of government projects reveals $4billion in wasted efforts as a result of failed projects. 
‘Only 30% of our projects and programs are successful’ -Joe Harley, programme and systems delivery officer at the Department for Work and Pensions.” 
Source :Guardian Newspaper (UK) Scope :Investigation into government waste in the UK since year 2000Date :5 Jan 2008 
“© The APM Group Ltd. 2014. All rights reserved.”
9 
© 2014 copyright of Training ByteSize unless otherwise stated. 
Why Better Business Cases? 
•In The UK: 
–Over 900 public Sector Organisations each procure around 30 key investments a year 
–Equates to around 27,000 business cases p.a. 
–Conservative cost of around £50,000 average cost each 
•Over £1.35 billion spent on Public Sector Business Cases per year 
•Use of BBC guidance could reduce this by 15-25% 
•Potential savings of between £200-£300 million per year
10 
© 2014 copyright of Training ByteSize unless otherwise stated. 
The BBC Programme is currently in use in:
11 
© 2014 copyright of Training ByteSize unless otherwise stated. 
Why are Business Cases important? 
A business case provides decision makers and the public as well as the private sector with a management tool for transparent, evidence-based decision making. 
Successful projects are a result of: 
•Realistic planning 
•Clear focus on end goal 
•Robust implementation plan 
•Consideration of associated risks
12 
© 2014 copyright of Training ByteSize unless otherwise stated. 
Management 
The 5 key elements of good practice business cases 
The Five Case Model 
Financial 
Commercial 
Economic 
Strategic 
Applicable - strategic fit & business needs 
Appropriate –optimises public value 
Attractive –to supply side and feasible 
Affordable – within budget 
Achievable – can besuccessfully delivered
13 
© 2014 copyright of Training ByteSize unless otherwise stated. 
Strategic Context 
•The spending objectives, existing arrangements and business needs. The business need is the overriding factor 
•The potential business scope and key requirements 
•The benefits, risks, constraints and dependencies 
•Economy –to reduce costs. 
•Efficiency –improving throughput and unit cost. Doing more for less. 
•Effectiveness –improving quality outcomes 
•Re-procurement 
•Statutory Compliance 
The Spending Objectives
14 
© 2014 copyright of Training ByteSize unless otherwise stated. 
Great Value for £50,000! 
But Can We Afford it!
15 
© 2014 copyright of Training ByteSize unless otherwise stated. 
Short List 
Long List 
Preferred 
Way 
Forward
16 
© 2014 copyright of Training ByteSize unless otherwise stated. 
Preferred Option is best NPV 
Cost Benefit Analysis to decide 
best option to move forward 
In too many projects people are either too optimistic in stating the benefits the project will deliver or understate the costs and risks
17 
© 2014 copyright of Training ByteSize unless otherwise stated.
18 
© 2014 copyright of Training ByteSize unless otherwise stated.
19 
© 2014 copyright of Training ByteSize unless otherwise stated. 
•Change Management 
•Benefits Realisation 
•Risk Management 
•PER & PIR
20 
© 2014 copyright of Training ByteSize unless otherwise stated. 
Three Types of Business Case 
1.The key purpose of Strategic Outline Case is to: 
–establish the strategic context for the spending proposal; 
–evidence the case for change; 
–establish the preferred way forward 
2.The key purpose of the Outline Business Case is to: 
–revisit the SOC assumptions and main findings 
–establish the preferred option 
–put in place the arrangements for the procurement of the scheme 
3. The key purpose of the Full Business Case is to: 
–revisit OBC assumptions and main finding; 
–evidence that the most economically advantageous tender (MEAT) for the scheme has been accepted; 
–establish that the management arrangements for successful delivery are in place.
21 
© 2014 copyright of Training ByteSize unless otherwise stated. 
Three Types of Business Case 
1.The key purpose of Strategic Outline Case is to: 
–establish the strategic context for the spending proposal; 
–evidence the case for change; 
–establish the preferred way forward 
2.The key purpose of the Outline Business Case is to: 
–revisit the SOC assumptions and main findings 
–establish the preferred option 
–put in place the arrangements for the procurement of the scheme 
3. The key purpose of the Full Business Case is to: 
–revisit OBC assumptions and main finding; 
–evidence that the most economically advantageous tender (MEAT) for the scheme has been accepted; 
–establish that the management arrangements for successful delivery are in place.
22 
© 2014 copyright of Training ByteSize unless otherwise stated. 
10 Key Steps
23 
© 2014 copyright of Training ByteSize unless otherwise stated. 
10 Key Steps -Continued
24 
© 2014 copyright of Training ByteSize unless otherwise stated. 
Benefits 
For Organizations:- 
•Reduction in unnecessary spending and consultancy costs. 
•A process and guidance designed to optimize value from change initiatives. 
•A clear, proportionate approval process and improved, more informed decision making. 
•Complements existing best practice 
•Short courses minimize disruption to business as usual. 
For Individuals:- 
•Improved understanding of the Better Business Cases process, relevant not only to those producingbusiness cases and spending proposals, but also those reviewing. 
•Understanding of an established and proven methodology which can be applied at both strategic (macro) and tactical (micro) levels. 
•Recognized certification for a core business competency for so many in mid and senior management roles.
25 
© 2014 copyright of Training ByteSize unless otherwise stated. 
Courses and Qualifications 
•Foundation Course and Exam 
–Online or Classroom course 2 days followed by optional closed book exam 
–Closed book, multiple choice, 50 questions 
–50% pass mark 40 minutes duration 
•Practitioner Course and Exam 
–Classroom course 3 days followed by an exam on day 3 
–Open book exam 
–4 questions per paper, with 20 marks available per question 
–50% pass mark 2 ½ hours duration 
•Reviewer Course 
–Under development/discussion
26 
© 2014 copyright of Training ByteSize unless otherwise stated. 
Conclusion 
Better Business Cases lead to: 
Better decisions, better investments & achievement of better outcomes. 
“If Applied with common sense and proportional effort relative to the size of the project why wouldn’t you use BBC Guidelines – Public or Private?” 
Treasury now insists on BBC framework on all Business Cases 
Outside Contracting Organisations are skilling up 
Contractors and Consultants will need to show the knowledge 
Which will lead to adoption in the Private Sector
27 
© 2014 copyright of Training ByteSize unless otherwise stated. 
Any questions
28 
© 2014 copyright of Training ByteSize unless otherwise stated.

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Better business cases overview presentation - 5 Case Model

  • 1. 1 © 2014 copyright of Training ByteSize unless otherwise stated. Martyn Kinch –TrainingByte Size Ltd
  • 2.
  • 3. 3 © 2014 copyright of Training ByteSize unless otherwise stated. Training Bytesize Martyn Kinch martyn@trainingbytesize.com 01270 610352 07850 202444 martynjkinch
  • 4. 4 © 2014 copyright of Training ByteSize unless otherwise stated. Who Are Training Bytesize: •Project Management Translation projects •Español, français, Deutsch, Polski, العربية •Preferred PM Training suppliers to: •Top Tier Trainers and Great Customer Service •Family run business with a passion for trainingin project management •Over 350 Exams a month now taken through TBS •New Office in Australia, partners in Germany, Spain, France and Poland
  • 5. 5 © 2014 copyright of Training ByteSize unless otherwise stated. Courses Include Courses available as Classroom Blended or Online: PRINCE2 Agile Better Business Cases Managing Benefits Business Analysis Change Management (2015) APM-IC APMP APM PQ (2015) APM Risk Level 1 Green Project Management
  • 6. 6 © 2014 copyright of Training ByteSize unless otherwise stated. “Publicsectorinvestvastsumsofmoneyeachyearonneworreplacementassetssuchasbuildings,equipmentandfacilities. WithsomuchdemandforCapitalInvestmentitisessentialthatwemaketherightchoicesanddemonstratevalueformoney”
  • 7. 7 © 2014 copyright of Training ByteSize unless otherwise stated. The Five Case Model (from HM Treasury) A framework for ‘thinking’ to help answer three basic questions ‘where are we now?’, ‘where do we want to be?’ and ‘how are we going to get there?’ A step by step guide to developing a business case by: •Establishing a clear need for intervention -the case for change. •Setting clear objectives –desired outcome •Considering a wide range of potential solutions -an optimal balance of benefits, cost and risk. •Putting the arrangements in place to successfully deliver the proposal. Successful execution The process is about thinking not writing
  • 8. 8 © 2014 copyright of Training ByteSize unless otherwise stated. UK Projects “Study of government projects reveals $4billion in wasted efforts as a result of failed projects. ‘Only 30% of our projects and programs are successful’ -Joe Harley, programme and systems delivery officer at the Department for Work and Pensions.” Source :Guardian Newspaper (UK) Scope :Investigation into government waste in the UK since year 2000Date :5 Jan 2008 “© The APM Group Ltd. 2014. All rights reserved.”
  • 9. 9 © 2014 copyright of Training ByteSize unless otherwise stated. Why Better Business Cases? •In The UK: –Over 900 public Sector Organisations each procure around 30 key investments a year –Equates to around 27,000 business cases p.a. –Conservative cost of around £50,000 average cost each •Over £1.35 billion spent on Public Sector Business Cases per year •Use of BBC guidance could reduce this by 15-25% •Potential savings of between £200-£300 million per year
  • 10. 10 © 2014 copyright of Training ByteSize unless otherwise stated. The BBC Programme is currently in use in:
  • 11. 11 © 2014 copyright of Training ByteSize unless otherwise stated. Why are Business Cases important? A business case provides decision makers and the public as well as the private sector with a management tool for transparent, evidence-based decision making. Successful projects are a result of: •Realistic planning •Clear focus on end goal •Robust implementation plan •Consideration of associated risks
  • 12. 12 © 2014 copyright of Training ByteSize unless otherwise stated. Management The 5 key elements of good practice business cases The Five Case Model Financial Commercial Economic Strategic Applicable - strategic fit & business needs Appropriate –optimises public value Attractive –to supply side and feasible Affordable – within budget Achievable – can besuccessfully delivered
  • 13. 13 © 2014 copyright of Training ByteSize unless otherwise stated. Strategic Context •The spending objectives, existing arrangements and business needs. The business need is the overriding factor •The potential business scope and key requirements •The benefits, risks, constraints and dependencies •Economy –to reduce costs. •Efficiency –improving throughput and unit cost. Doing more for less. •Effectiveness –improving quality outcomes •Re-procurement •Statutory Compliance The Spending Objectives
  • 14. 14 © 2014 copyright of Training ByteSize unless otherwise stated. Great Value for £50,000! But Can We Afford it!
  • 15. 15 © 2014 copyright of Training ByteSize unless otherwise stated. Short List Long List Preferred Way Forward
  • 16. 16 © 2014 copyright of Training ByteSize unless otherwise stated. Preferred Option is best NPV Cost Benefit Analysis to decide best option to move forward In too many projects people are either too optimistic in stating the benefits the project will deliver or understate the costs and risks
  • 17. 17 © 2014 copyright of Training ByteSize unless otherwise stated.
  • 18. 18 © 2014 copyright of Training ByteSize unless otherwise stated.
  • 19. 19 © 2014 copyright of Training ByteSize unless otherwise stated. •Change Management •Benefits Realisation •Risk Management •PER & PIR
  • 20. 20 © 2014 copyright of Training ByteSize unless otherwise stated. Three Types of Business Case 1.The key purpose of Strategic Outline Case is to: –establish the strategic context for the spending proposal; –evidence the case for change; –establish the preferred way forward 2.The key purpose of the Outline Business Case is to: –revisit the SOC assumptions and main findings –establish the preferred option –put in place the arrangements for the procurement of the scheme 3. The key purpose of the Full Business Case is to: –revisit OBC assumptions and main finding; –evidence that the most economically advantageous tender (MEAT) for the scheme has been accepted; –establish that the management arrangements for successful delivery are in place.
  • 21. 21 © 2014 copyright of Training ByteSize unless otherwise stated. Three Types of Business Case 1.The key purpose of Strategic Outline Case is to: –establish the strategic context for the spending proposal; –evidence the case for change; –establish the preferred way forward 2.The key purpose of the Outline Business Case is to: –revisit the SOC assumptions and main findings –establish the preferred option –put in place the arrangements for the procurement of the scheme 3. The key purpose of the Full Business Case is to: –revisit OBC assumptions and main finding; –evidence that the most economically advantageous tender (MEAT) for the scheme has been accepted; –establish that the management arrangements for successful delivery are in place.
  • 22. 22 © 2014 copyright of Training ByteSize unless otherwise stated. 10 Key Steps
  • 23. 23 © 2014 copyright of Training ByteSize unless otherwise stated. 10 Key Steps -Continued
  • 24. 24 © 2014 copyright of Training ByteSize unless otherwise stated. Benefits For Organizations:- •Reduction in unnecessary spending and consultancy costs. •A process and guidance designed to optimize value from change initiatives. •A clear, proportionate approval process and improved, more informed decision making. •Complements existing best practice •Short courses minimize disruption to business as usual. For Individuals:- •Improved understanding of the Better Business Cases process, relevant not only to those producingbusiness cases and spending proposals, but also those reviewing. •Understanding of an established and proven methodology which can be applied at both strategic (macro) and tactical (micro) levels. •Recognized certification for a core business competency for so many in mid and senior management roles.
  • 25. 25 © 2014 copyright of Training ByteSize unless otherwise stated. Courses and Qualifications •Foundation Course and Exam –Online or Classroom course 2 days followed by optional closed book exam –Closed book, multiple choice, 50 questions –50% pass mark 40 minutes duration •Practitioner Course and Exam –Classroom course 3 days followed by an exam on day 3 –Open book exam –4 questions per paper, with 20 marks available per question –50% pass mark 2 ½ hours duration •Reviewer Course –Under development/discussion
  • 26. 26 © 2014 copyright of Training ByteSize unless otherwise stated. Conclusion Better Business Cases lead to: Better decisions, better investments & achievement of better outcomes. “If Applied with common sense and proportional effort relative to the size of the project why wouldn’t you use BBC Guidelines – Public or Private?” Treasury now insists on BBC framework on all Business Cases Outside Contracting Organisations are skilling up Contractors and Consultants will need to show the knowledge Which will lead to adoption in the Private Sector
  • 27. 27 © 2014 copyright of Training ByteSize unless otherwise stated. Any questions
  • 28. 28 © 2014 copyright of Training ByteSize unless otherwise stated.