BUSINESS CASE Checklist

BUSINESS CASE CHECKLIST

1. Strategic Identifies the core business function that the potential project contributes to. Ensures the potential project is consistent with current and future government policies, directions and / or strategic objectives. Takes into consideration the community and economic impact(s). Identifies the pros and cons of progressing to purchase and implementation. Identifies all of the alternatives, their individual assessments, conclusions and recommendations. Anticipates the eventual cost of the preferred or recommended option and the possible source of the funds. Anticipates the long-term benefits of the procurement / project. Illustrates the anticipated benefits or the proposed project to justify the overall costs. Reorganization or restructuring may need to be considered even if these potential changes do not confirm to current policies. These policies may also need to be changed or amended if increased benefits are perceived. 2. Operational Identifies the possible or expected scope requirements including outcomes or objectives, anticipated or known deliverables, critical success factors (based on Scope, Quality, Time and Cost), performance measurement success indicators, standards and / or benchmarks. Provides a detailed risk assessment and risk management plan including: identification of risk exposures; potential, possible and probable impacts, and suggested response planning considerations. Change management considerations – the impact of changing something significant (part of risk). Identifies market sources, availability and capability. 3. Market Research Market research can confirm the requirement for a new type of, or improved service and can provide an insight into the most effective, efficient and economical process or method of commercially delivering this requirement. The types of information that can be gained from in-depth analysis of the market are as follows: Current or future demand for the proposed service or product. The expected or anticipated public response to the potential new service or product (if deemed appropriate). The desire of the client(s) to change the current conditions or the situation, and the impact in doing so (and how this change and impact would affect both the client and customer). The impact on economic growth by providing this service or product. The various and / possible commercial options or alternatives. 4. Strategic Risk Assessment All business case analyses must address and analyze the potential (maybe), possible (somewhat likely) and probable (most likely) risks associated with the project as a whole, and the viable options that may provide the solutions. It is essential to analyze these high-level risks prior to completing a detailed risk assessment associated with project or procurement planning. Factors to consider are geographical, social, political and economic including industry availability and market conditions. You also need to consider opportunities verses risks. For example, does the opportunity that presents itself outweigh the potential risks associated with it or vice-versa? Consider the following: Identifies the key Critical Success Factors, any constraints and limitations. Identifies the major risk exposures. Identifies the probability of the exposed or identified risk occurring (Low, Moderate, High). Identifies the impact and / or consequence if the identified risk occurs (Low, Moderate, High). Identifies the strategies and responses to eliminating or mitigating the risk. From the above information, establishes the Strategic Risk Profile (Detailed Risk Assessment will occur once the recommended option is realized. 5. Reporting The business case analysis report should consist of the process in terms of how it was conducted, the information gathered, including the findings derived from that information, and the conclusions and recommendations. Issues addressed could include: The core functions of the potential project. All of the alternatives or options that have been considered and the advantages and disadvantages of each potential alternative. The recommended option or alternative and the reasons why (the rationale for its implementation). Cost / benefit analysis to compare current and improved processes, structures, services or products. A synopsis of the various types of risks that could be associated with the project and an overview risk management The recommended project management process and suggested outline implementation strategy or plan. Identifying and managing the critical success factors and how these will be monitored (element of project risk management and monitoring strategies). The consequences of not proceeding at all, and remaining with the current system / process. From this business case analysis, the procurement and / or project manager will have a synopsis of the various options, their pros and cons and the rationale of the recommended option in order to proceed with the planning and solicitation phase of the procurement. October 15, 2007