APM Benefits Summit 2017 - From ambition to delivery: Don't just do something, stand there and think!, by Joseph Lowe, 22 June

APM Benefits Summit 2017 - From ambition to delivery: Don't just do something, stand there and think!, by Joseph Lowe, 22 June

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  1 Ambition to Delivery whostole my Benefits Some key features of the Treasury Five Case Model Created for the public sector and found helpful by many in the private sector
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  2 Good Intentions andthe enemies of benefit • Get me over the financial hurdle • We know what is needed • Give me an implementation plan • We can outsource the risks • Don’t slow me down with this costly bureaucracy • Just Do it These are Mother and Father of Disasters • Time overruns  over cost  under delivery
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  3  Average Costover-run – 45%  Average Time over-run – 63%  Average shortfall in requirements – 33% By a US based consultancy – the Standish Group Private Sector Project Delivery – A Survey Report
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  4 The Green Bookand World Class Business Cases Questions and interactions in a Complex World Environmental Policy Economic and Growth Policy Green Growth Policy Employment policy Energy Supply Security policy Other Public policy Public Health Policy Defence Policy Welfare Policy Transport Policy Competition Policy
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  5 Technocracy Democracy Proposal Design and Delivery Objective Evidence Analysis,Resources Belief, Ambition, Aspiration and Drive Intrinsic Tension between Ambition and Reality
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  6 For Programmes andProjects the method supports:- • a joined up structured approach to thinking to avoid the pitfalls • optimum scoping and option selection • understanding and managing the risk • designing the contract • planning the delivery • approval to get the money, • managing delivery of the benefits Better Business Cases
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  7 约瑟夫.劳尔 经济学部负责人 英国财政部公共服务与增长司 英国财政部 政策评审、商业规划与商业论证 绿皮书 The Green Bookis Internationally regarded as a world leading gold standard
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  8 Management Strategic Financial Economic Commercial Business Cases arebased on the Five Dimensions of the Five Case Model Applicable – a Strategic Fit with Business Needs Attractive –to supply side and feasible with realistic risk management Achievable – can be Successfully Delivered Appropriate – provides Optimum Public Value Affordable – sound funding model and within the budget
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  9 The culture requiredto develop workable best value proposals • Working across professional disciplines from the outset as a virtual team • Holding workshops to share and check information and feedback • Consultation with relevant stakeholders • External reviews at key stage of development – gateways and health checks. • Understanding its an iterative process
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  10 Learning from thepast - good Best Practice demands that we understand the present well. • Understanding the problem • What do we really know? Evidence and research • “It will never happen again” • Where are we now  What does Business as usual look like • We provide Services not Assets • What are the minimum core requirements for a solution • Clear SMART objectives are required • Are we all joined up across government (or the company)
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  11 Outcomes Achieved Benefits Realised Political,Economic, Social, Technological Environment New or Transformed Business Operations Capacity and Services Projects and related activities Programmes Policies, Strategies, Initiatives and Targets Drive and Shape Define Scope and Prioritise Initiate, Align and Monitor Implement and Deliver Bring About Policies, Strategies, Programmes and Projects
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  12 Learning from thepast and good Best Practice • We do not deliver benefits directly • We make internal changes to our business  • To deliver changes to the services we provide  • Delivering different and / or more, better, cheaper OUTPUTS • Business Continuity usually means also better and or cheaper as well. • The Effects of the service changes  are OUTCOMES that are Beneficial or not? • If not why not? • Was the proposed chain of causation real  (Post hoc ergo propter hoc?)
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  13 Defining, Scoping andStrategic Appraisal • What are the Constraints we must work within • What are the Dependencies beyond our control • Implicit assumptions ignoring them is often fatal • Strategic long list analysis that is structured and transparent • Optimism Bias exists it is a global phenomenon Goodbye to Goldilocks
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  14 Strategic Analysis atLong Listing - Constraints and Dependencies • Constraints - legal, ethical, social standards and political constraints that any solution must fit within frame option choices • Dependencies - external factors such as infrastructure, on which any option will depend are identified to ensure proposals are practical and deliverable. • Critical Success Factors must take these constraints and dependencies into account.
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  15 Strategic Analysis atLong Listing - Critical Success Factors (CSF’s) A core set of CSF’s questions is does the proposed option for solution:- • Meet Business Needs • Provide Strategic Fit • Provide Public Value for Money • Provide Achievability • Reflect Supply-Side Capability & Capacity • Appear at this stage to be Affordable
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  16 The Options Frameworkas a Filter Provides a high level appraisal of long list options by considering the options 1. from the perspective of service delivery not asset ownership 2. as a sequence of different option choices 3. The identification and management of potential risk - unmanaged risk is the enemy of benefit delivery
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  17 Solution design isdisaggregated into a series of choices for optimum service delivery they are about:- •Where & What  Service Scope •How / technical  Service Solution •Who /provider  Service Delivery •When  Implementation design •Funding  Funding model and Affordability Strategic Appraisal of Public Value
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  18 At each levelof choice in the Options Framework a SWOT analysis considers - how well does each alternative:- Satisfy Critical Success Factors and meet Business needs in Delivering the SMART objectives and Manage risks to Deliver outputs  outcomes  that are beneficial Strategic Appraisal of Public Value
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  19 WHAT & WHERE HOW WHO WHEN £ Identifyingthe Options for Service Identify options for Scope Solution options that meet Scope Delivery options for best Solution(s) Implementation options Funding
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  20 Detailed Options Analysisof the short list • Identifying Risks in detail  Risks we can avoid (at what cost)?  Risks we really can share (with whom at what cost)?  Risks we must manage and provide an insurance cost • Valuing and Accounting for trade offs • Trade offs and Option selection • Sensitivity Analysis and Switching Values to assess cost of risk • A balanced decision based on benefit to cost and risk - including a credible delivery plan with provision for monitoring and feedback
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  21 Step by stepbest practice guidance exists Treasury now expects all those involved with business cases to be trained and accredited
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  22 The Green Bookweb pages provide a link to the to the list of approved commercial training providers who are accredited to deliver the Treasury syllabus Access to Accreditation and Training
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  23 HMT Accredited TrainersListed on the APMG web site JL
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  24 Thank You –Conclusion For questions and future reference Green Book Web Site – Joseph Lowe Phone :- 0207 270 4933 Email;- <[email protected],gov.uk>