CIPS L4M2 Chapter 1 (1.3)

Question 1

Criteria that can be applied in the production of a business case

Answer 1

Objectives
The first criterion is to read the business case and assess the objectives of the proposal
✳Application of the ‘5 Whys’ analysis to test whether the opportunity or problem is genuine
✳Issues management can be used to assess the importance and strategic nature of an objective (Ansoff) through:
✳External trends
✳Internal trends
✳Performance trends
Chapter 1: page 41

Question 2

What are the 3 trends that can help decide if a objective is strategic or not?

Answer 2

Issues management can be used to assess the importance and strategic nature of an objective (Ansoff) through:
✳External trends
✳Internal trends
✳Performance trends
Chapter 1: page 41,42

Question 3

How does the business case propose the objectives are reached?

Answer 3

Options
Can be carried out with a peer group using brain-storming or benchmarking
✳ Brainstorming interventions:
     •Market interventions
     •Technical interventions
     •Cost structure interventions
     •Work process interventions
     •Supplier relationship interventions
     •Supply chain interventions
✳Generating hybrid strategies
     •Combining two or more (best of all) strategies in one
Chapter 1: page 42,43

Question 4

Third criteria for assessing a business case

Answer 4

Costs and benefits
✳Cost-benefit analysis – to show the financial consequence of the choice made
✳ Costs may be one-off or ongoing
✳ Benefits are usually received over time
✳Tangible and intangible costs should be identified
✳Financial and non-financial benefits
Chapter 1: pages 44,45

Question 5

The criteria named in your unit content 1.3 that can be applied to a business case are:

Answer 5

Costs, benefits,options, alignment with organisational needs and timescales
Chapter 1: pages 44,45

Question 6

Senior Management will look for evidence that what is undertaken in a business case?

Answer 6

Risk assessment
✳List all of the potential sources of risk in terms of potential impact on the organisation if the risk event was to happen
✳Assess likelihood that risk event will happen
Chapter 1: page 47

Question 7

Senior Management will assess whether or not the ……… makes sense?
or
What is the elements of an implementation plan?

Answer 7

Implementation plan
Elements of an implementation plan:
✳Allocation and agreement of roles and responsibilities
✳Communication strategy that delivers the right message in the right medium to the right people
✳Change management strategy
✳Agreed specification
✳Agreed procurement route
✳Time allowance for writing tender documents
✳Time allowance for managing the tender process
✳Time allowance to agree the criteria for choosing a supplier
✳Time allowance for negotiation
✳Time allowance for writing the contract
✳Identification of all major tasks and dependencies in a formal plan
Chapter 1: page 48

Question 8

Benchmarking requirements

Answer 8

Definitions of ‘benchmarking’
• The Department of the Navy Benchmarking Handbook
4 main types of benchmarking:
✳ Internal benchmarking
Business process is similar process in the same business
• Example: Retail stores, select the best store as the benchmark
• Benefits • Challenges (refer to table pg 50)
✳Competitive benchmarking
Direct competitor-to-competitor comparison
• Example: Public sector compares the army and prisons
• Benefits • Challenges (refer to table pg 50)
✳ Functional benchmarking
• Compares similar or identical practices from different
industries
• Example: Government my compare tax collection against a credit card company collection processes.
• Benefits • Challenges (refer to table pg 51)
✳ Generic
• Compares unrelated business processes that can be carried out in a similar way, irrespective of the industry
• Example: Bar Code system to track luggage = grocery outlet’s bar code system
• Benefits • Challenges (refer to table pg 51)
Chapter 1: Pages 49,50,51