KT6 - Developing a Business case

Question 1

What are the four categories of a Business Case

Answer 1

Tangible and immediate
Tangible and long term
Intangible and immediate
Intangible and long term

Question 2

Are costs tangible or intangible ?

Answer 2

Tangible

Question 3

Define risk

Answer 3

Risk is the threat of negative conditions that are caused by external or internal vulnerabilities

Question 4

What 5 factors do we need to record for risk and provide a brief summary?

Answer 4

Description - the cause of the risk and its impact

Impact Assesment - assess the extent of harm that would be suffered if the risk occured

Probability- How likley will the risk materialise

Countermeasures - reduce the likelyhood of the risk occuring or reducing its impact

Ownership - who is best placed to take the necessary countermeasures

Question 5

Name 3 risk areas

Answer 5

Business ( relationships , organisational )
Technical ( incompatability)
Project ( Deadlines, dependicies)

Question 6

Why does a business case need a Investment Appriaisal

Answer 6

They need to include calculations that use the quantified costs and benefits to identify the financial implications of each option

It is basically to see when a project will pay for itself

Question 7

List the 7 areas which might be impacted ( Impact assessment) and provide a brief summary of each

Answer 7

1. Organisation Structure - it may be necessary to reorganise departments or functions
2. Interdepartmental relations - The relationships between departments may change
3. Working practices - new processes invariably lead to changes in working practices
4. Management Style - sometimes management need to change their style
5. Recruitment policy - The organisation may have to recruit people using a different approach
6. Appraisal and promotion criteria - it may be necessary to change the targets,objectives and incentives for staff.
7. Supplier relations - the ways of working with suppliers may need to be redefined

Question 8

Define ‘alignement’ in the buiness case lifecycle

Answer 8

Strategy links the organisation to its enviroment so as the enviroment changes so the organisation must adapt

Question 9

Define ‘definition’ in the business case lifecycle

Answer 9

Establish a sence of urgency then -
Form a powerful coalition then -
Create a vision then
Communicate that vision

Question 10

Define ‘design and implementation’ in the business case lifecyle

Answer 10

Design and implementation of:
- new or refined business processes
- IT applications to support them
- Job definitions of staff carrying them out
- Updated organisation structure
- Changes to management responsibilities
- Test of all these elements

Question 11

Define ‘implementation’ in the business lifecycle

Answer 11

Involve key staff …..then
Learn and adapt plan….. then
Train/coach staff …..then
Deal with issues as they arise

Question 12

Define ‘realisation’ in the business lifecycle

Answer 12

Ask these questions :
Has the change been implemented appropriately ?
Have the anticipated benefits been realised?
Will the change be sustained?
Can the change here be adopted elsewhere