Better Business Cases: Indicative Business Case - National ...

Better Business Cases“Investing for change”Indicative Business CaseProgrammeStrategicAssessmentProgramme BusinessCaseProjectIndicativeDetailedStrategicBusinessBusinessAssessment Case CaseImplementationBusiness CaseProjectStrategicAssessmentSingle Stage Business Case© The Treasury 1

Indicative Business CasePurpose• Confirm the strategic context• Confirm the case for change• Recommend an indicative wayforward with a limited it number of short‐listedt options for further detailed analysis2

Indicative Business CaseStrategic Case‐Making the Case for ChangeRevisit strategic context and confirm case for changeStrategicInvestment objectives, existing arrangements and businessneedsPotential business scope and key service requirementsBenefits, risks, constraints and dependenciesStakeholders do the strategic case thinking togetherin one or more two hour workshops led by a facilitator3

Indicative Business CaseEconomic Case‐Exploring the Preferred Way ForwardCritical success factorsLong‐list options and initial options assessment bydimension:• Scale, scope and location (what)• Service solution (how)• Service delivery (who ‐ including non‐traditionalprocurement options)• Timing and staging (when)• Funding (how much)EconomicStakeholders do the economic case thinking together in two or more twohourworkshops led by a facilitator, and a procurement specialist:• Prepare long list (consider inclusion of industry), then• Assess long list to short list4

Non‐traditional procurement relationship spectrumDistant?Close?ImmediateEstablishmentPlannedLast MinuteEngagementEarlyShortDurationLongTacticalApproachStrategicDeal focusCommitmentMutual valuePoorInformation exchangeGoodReactiveOpennessForward thinkingLowTrustHighRarely doneRisk assessmentJointSeparateRisk managementShared5

The long list to short list of options (example)Scoping Options Service Solution Options Service Delivery OptionsImplementation OptionsReference to SCO1 SCO2 SCO3 SCO4 SOL1 SOL2 SOL3 SOL4 SDO1 SDO2 SDO3 SDO4 IMP1 IMP2 IMP3 IMP4Description of option Do Nothing Minimum Intermediate Maximum Discrete IntegratedRegionallyInvestment ObjectivesIntegratedNationallyRegionalandNationalNetworkIn housePartiallymanaged(led by[MINISTRY])Partiallymanaged(led bycommercial supplier)Fullyoutsourcedtocommercial suppliersFull supported netw ork MIMS No No Yes Yes No Partial Yes Yes Yes Yes Yes Yes Yes Yes Yes Yesavailable for implementation byXSupport improved clinical data No No Yes Yes No Partial Yes Yes Yes Yes Yes Yes Yes Yes Yes Yesand management informationflowsImprove the functionality and No Partial Yes Yes No Partial Yes Yes Yes Yes Yes Yes Yes Yes Yes Yesflexibility of the Pathology ITsystem to meet current andfuture needsCritical Success FactorsBusiness Need No No Yes Yes No Partial Yes Yes Yes Yes Yes Yes Yes Yes Yes YesStrategic Fit No No Yes Yes No Partial Yes Yes Yes Yes Yes Partial Yes Yes Yes YesBenefits Optimisation No No Yes Yes No Partial Yes Yes Yes Partial Yes Partial Yes Yes Yes YesPotential Achievability Partial Yes Yes Partial Partial Yes Yes No Partial Partial Yes Partial No Yes No NoSupply-side capability and Partial Yes Yes Partial Yes Yes Yes Partial Partial Partial Yes Partial Yes Yes Yes YescapabilityPotential Affordability No No Yes Partial Partial Yes Yes No No Yes Yes No Yes Yes Yes YesSummaryContinuedfor VFMPhasednationallybydisciplineSystemphased bysiteSystemphased byregionNationalimplementationDiscounted Preferred Possible Discounted Possible Preferred Discounted Discounted Possible Preferred Discounted Discounted Preferred Discounted DiscountedOptions progressed to theshortlistAs the CSFs are crucial (notdesirable) any options thathad a CSF scoring a "No" arediscountedReferNotebelowOption TitleOption 0 Do NothingSCO1 Do NothingOption 1 IntermediateScope - RegionalOption 2 IntermediateScope - NationalIOption t ti 3 Maximum Scope -Regional IntegrationSCO3 IntermediateSCO3 IntermediateSCO4 MaximumSOL2 Integrated RegionallySOL3 Integrated NationallySOL2 Integrated RegionallySDO3 Partially managed (led by commercialsupplier)*SDO3 Partially managed (led by commercialsupplier)*SDO3 Partially managed (led by commercialsupplier)*IMP2 Phased by siteIMP2 Phased by siteIMP2 Phased by siteOption 4 Maximum Scope -National IntegrationSCO4 MaximumSOL3 Integrated t NationallySDO3 Partially managed (led by commercialsupplier)** A capability analysis of the [MINISTRY} will beconducted to see if SDO4 Partially managed (ledby [MINISTRY]) is a possibility. Based on presentincomplete information this does not appear to bea viable option.IMP2 Phased by site6

Indicative Business CaseCommercial, Financial and Management Cases(Outline)Recommended dpreferred way forward, if conventionalprocurement• At least three short‐listed options, including abase case option• Provide range of indicative cost estimates foreach short‐listed option and funding sources• Outline the commercial ilcaseCommercialFinancial• Outline the management caseManagement7

In summaryIndicative Business Case– Confirm the strategic context & the case for change– Recommend an indicative way forward with a limitednumber of short‐listed options for further detailedanalysis8