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E-raamat: Making the Case for Change: Using Effective Business Cases to Minimize Project and Innovation Failures

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The best time to stop projects or programs that will not be successful is before they are ever started. Research has shown that the focused use of realistic business case analysis on proposed initiatives could enable your organization to reduce the amount of project waste and churn (rework) by up to 40 percent, potentially avoiding millions of dollars lost on projects, programs, and initiatives that would fail to produce the desired results. This book illustrates how to develop a strong business case which links investments to program results and, ultimately, with the strategic outcomes of the organization. In addition, the book provides a template and example case studies for those seeking to fast-track the development of a business case within their organization.

Making the Case for Change: Using Effective Business Cases to Minimize Project and Innovation Failures provides executive teams and change agents with the information required to make better business case decisions. This book can be used throughout the life cycle of the project to assist with gaining a better understanding of the following key knowledge areas for developing a business case:





Understanding the present problem/improvement opportunity Documenting how the project, program, or initiative will add value to the organization Validating the data and the assumptions that the projected improvements are based upon Calculating the level of confidence that can be placed upon the conclusions that are reached Assessing the alternative solutions that were considered Weighing the costs vs. the benefits of the proposed initiative Analyzing and mitigating the risks to completing 100 percent of the projects goals Eliciting and prioritizing the requirements of key stakeholders and subject matter experts Identifying the key people that are involved in the proposed project and the skills needed to implement the proposed change Obtaining consensus on the decision to move forward, as well as on the methods used and the conclusions specified in the analysis

Ideal for executives and project/initiative managers seeking approval of an activity, initiative, program, or project, the book presents proven tips, advice, suggestions, and recommended courses of action for developing effective business cases. In addition, suggestions for recruiting a responsible senior officer or sponsor for the project and for engaging an audience are provided.

The authors combine their own experience in business case development with approaches used by world-class organizations. They provide a general range of assessment criteria that can be applied to almost any type of project business cases.

The text discusses each of the 8 activities and the 35 tasks that make up the business case development process. This process supplies you with a proven approach for creating comprehensive and well-constructed business case evaluations that will either ensure the success of your project, or eliminate unsuccessful projects, programs, and initiatives before they start.
About this Book xiii
Acknowledgment xvii
About the Authors xix
Prologue xxvii
Chapter 1 Getting Started with the Business Case---Activity 1: Set the Proposal Context and Stimulus
1(20)
Introduction
1(1)
Preparation Activities (PA): Initiating the Business Case Development (BCD) Process
2(3)
Task PA 1 Prepare a Mission Statement and Select a BCD Team Leader
4(1)
List of the Top 20 Attributes of an Effective BCD Team Leader
5(5)
Task PA 2 Understanding the Role of the VPD Team
7(1)
Task PA 4 Creating the Stimulus Blueprint
8(2)
Inputs to the BCD Process
10(1)
Activity 1 Set the Proposal Context and Stimulus
11(6)
Task 1.1 Create the BCD Team
11(1)
Task 1.2 Preparing the BCD Team
12(3)
Task 1.3 Analysis of Proposed Project's Input Documents
15(1)
Task 1.4 Does the Proposal Meet the Required Ground Rules to Prepare a Business Case?
16(1)
Task 1.5 If the Answer to 1.4 Is "No," Then Take
Appropriate Action
17(1)
Summary
18(3)
Chapter 2 Activity 2: Define the Sponsor's Role and Test Alignment to Organizational Objectives
21(8)
Introduction
22(1)
Activity 2 Define the Sponsor's Role and Test Alignment to Organizational Objectives
22(6)
Task 2.1 Define the Business Case Sponsor's Role in the BCD Process
22(3)
Task 2.2 Align the Project/Initiative with Strategic Goals and Objectives
25(3)
Summary
28(1)
Chapter 3 Activity 3: Prepare the BCD Team's Charter and Output
29(30)
Introduction
30(8)
Task 3.1 Develop the BCD Team's Charter
32(4)
Task 3.2 Define the Business Case Final Report
36(2)
Brief Explanation of the Sample Document Elements
38(17)
Change Management Action Plan
55(1)
Summary of Task 3.2
56(1)
Summary
57(1)
Reference
57(2)
Chapter 4 Activity 4: Patents and Other Intellectual Property Considerations
59(12)
Introduction
60(3)
Task 4.1 Is the Idea/Concept an Original Idea/Concept?
62(1)
Questions to Ask to Protect against Copyright Problems
63(4)
Internal Communications Issues
67(2)
Task 4.2 Start The Patent/Copyright Process
68(1)
Summary
69(1)
References
70(1)
Chapter 5 Activity 5: Collecting Relevant Information/Data
71(56)
Introduction
72(1)
Alignment of Tasks in
Chapters 5, 6, and 7
73(2)
Resistance to Change
75(2)
Implementation Costs
77(4)
Task 5.1 Characterizing the Current State
78(3)
Product or Service-Related Changes
81(1)
Accuracy of Current State Measurements
82(2)
Task 5.2 Characterizing Proposed Future State
83(1)
Four Factors to Consider and the (Common Positive and Negative Impacts
84(3)
Estimating the Positive Impacts
87(8)
Characterizing Projected Future State for a Proposed Product or Process Improvement Project
95(2)
Product Future State
97(2)
Characterizing Refinements to a Current Product
99(1)
Characterizing the Replacement of a Current Product with New Product
99(1)
Characterizing a New Product That Represents a New Product Line
100(7)
Task 5.3 Define the Proposed Future State Assumptions
101(1)
Task 5.4 Define the Implementation Process
102(1)
Task 5.5 Define the Major Parameters Related to the Proposal
103(1)
Task 5.6 Define the Quality and Type of Data to Be Collected and Prioritized
104(1)
Factor 1 Measuring the Current State
105(1)
Factor 2 Measuring the Future State after the Project Has Been Implemented
106(1)
Types of Measures
107(1)
Data Disciplines
107(4)
Factor 3 Collecting Data to Estimate the Proposed Project's Impact on the Parameters
108(1)
Factor 4 Estimating the Cost of Defining and Implementing the Changes to the Process or the New/Refined Product
109(1)
Task 5.7 Develop the Data Collection Plan
110(1)
Business Case Research Relevance to Data Quality
111(1)
Basic Components of Business Case Data Quality
112(1)
Problems with Business Case Data Collection
112(2)
Business Case Sampling
114(3)
On the Cost of Sampling
117(1)
Some Business Case Data Analysis Tools
118(1)
Tools, Techniques, and Methods Used
119(1)
Data Analysis Checklist
119(3)
Step 1 Clearly Defined Goals
120(1)
Step 2 Operational Definitions and Methodology
120(1)
Step 3 Ensuring Repeatability, Reproducibility, Accuracy, and Stability
121(1)
Step 4 Sampling, Stratification, and Prioritization
121(1)
Tools, Techniques, and Methods Used
122(2)
Task 5.8 Collecting Process/Product Installation-Related Data/Information
122(2)
Collecting Product Related Data
124(1)
Collecting Project/Initiative Implementation Data
125(1)
Data Collection Summary
125(1)
Summary
126(1)
Reference
126(1)
Chapter 6 Activity 6: Projected Improvement Analysis
127(10)
Introduction
127(4)
Task 6.1 Characterize the Current State of the Parameters Identified in the Tasks Defined in
Chapter 5
129(1)
Task 6.2 Estimate the Degree of Change That Will Be Brought about as a Result of the Project for Each of the Affected Parameters
130(1)
Case Study Number One
131(3)
Task 6.3 Compare the Estimated Degree of Change to That Projected by the Individual or Group That Originated the Project
133(1)
Task 6.4 Determine if the Improvement Justifies Continuing the Analysis
134(1)
Case Study Number Two
134(1)
Summary
135(2)
Chapter 7 Activity 7: Developing Proposed Project Recommendations, Estimates of Resources, and Return on Investment (ROI)
137(20)
Introduction
138(2)
Task 7.1 Develop an Estimate of Resources Required to Implement the Proposed Project
138(2)
Parametric Model Estimation
140(1)
Total Cost Estimation
141(1)
Simulation Model Estimation
141(1)
Reserve Analysis Estimation
142(1)
PERT or 3-Point Estimation
143(1)
Published Data Estimation
143(1)
Analogous Estimation
144(1)
Vendor Bid Analysis Estimation
144(1)
Expert Judgment Estimation
145(1)
Task 7.2 Perform a Sensitivity Safety, and Risk Analysis and Develop Mitigation Plans
145(1)
Sensitivity Analysis
146(7)
Task 7.3 Calculate Value Added to the Organization
152(1)
Task 7.4 Develop Proposed Project/Initiative
Recommendations
153(2)
Summary
155(2)
Chapter 8 Activity 8: Presenting the Business Case to the Executive Committee
157(14)
Introduction
157(2)
Task 8.1 Prepare the Business Case Final Report
158(1)
Business Case Final Report Outline Summary
159(1)
Executive Summary
159(3)
Task 8.2 Set Up a Meeting with the Executive Team
161(1)
Scheduling the Executive Team Meeting
162(1)
Meeting Agenda
162(1)
Preparation for Executive Team Meeting
163(6)
Task 8.3 Present Findings and Recommendations to the Executive Team
164(1)
Task 8.4 Project/Initiative Approval Decisions
165(1)
Task 8.5 The Project/Initiative Is Approved
166(1)
Task 8.6 Proposal Is Rejected
166(1)
Task 8.7 Prepare an Initial Project Mission Statement
167(1)
Task 8.8 Closure of the BCD Team
168(1)
Summary
169(1)
Summary of the Business Case Development Process
169(2)
Appendix A 171(22)
Appendix B 193(12)
Appendix C 205(8)
Appendix D 213(4)
Index 217
H. James Harrington, Christopher F. Voehl, Frank Voehl
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