compass or curse? · business cases the case for “business cases” – compass or curse “when...

Business Cases Compass or Curse?

2© 2018 KPMG Services (Pty) Ltd, a South African company and the SA member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.

Quality of Business Cases…Business Cases – Compass or Curse

PresenterPresentation NotesVideo can be viewed here: https://www.youtube.com/watch?v=WbwkQ7aPwww&index=6&list=PLHIvsxgJ17w7YTcI4LjPusMtN16oL5Zyx


Your Presenters TodayBusiness Cases – Compass or Curse

Qualifications

Bachelor of Business Science (Honours) –Economics and Finance

• Prince2 Practitioner• Certified Information Systems Auditor (CISA)• Consultative Selling Skills (Certificate)• Gordon Institute of Business Science (KPMG

Business Competence Development Program)• Accredited KPMG Trainer

Qualifications

Bachelor of Commerce (Information Systems and Technology and E-Business)

• Certified Information Systems Auditor (CISA)• COBIT 5 Foundation• PRINCE 2 Practitioner• Gordon Institute of Business Science (KPMG

Business Competence Development Program)• KPMG governance and performance 90 day

programme

Associate DirectorPranesh Kara

Tel: +27827191402 [email protected]

Senior Manager Gordon Roberts

Tel:+27827196371 [email protected]


Our MapBusiness Cases – Compass or Curse

03

04

01CURRENT SITUATION“By the numbers”

02

THE CASE FOR “BUSINESS CASES”Uses and structure

WHAT TO START DOING DIFFERENTLY TODAYRoles and the Benefits Review Plan

CLOSING THOUGHTS &QUESTIONSWe’ll leave it in your hands


Roughly two thirds of projects are unsuccessful –

“Is our compass broken?”

Business Cases – Compass or Curse

33%R150m

2 years

42%

61%20%

Current Situation

PresenterPresentation NotesR150m – Average international cost of an ICT project33% - of projects meet original goals or business objectives2 years – average project length42% - Independently verify business case assumptions61% - paid for funding up front, not milestone driven20% - Had a formal project cancellation/hold criteria



The Case for “Business Cases”“When setting up, and particularly while running the project, it is all too easyto concentrate on what is being done and how it is to be done, while ignoringthe why it needs to be done.”

The Business Case Theme in Prince2:- Desirable (cost/benefit/risk balance)- Viable (the project can deliver the products)- Achievable (the products can provide the benefits)- Continued investment testing against the business justification

OUTCOMES

OUTPUTS BENEFITS



The Case for “Business Cases”

Project Closure

Measurement for project success – Benefits Realisation Review

Start of the Project

Define the project goal – “what should the project accomplish?”

Throughout the Course of the Project

Serves as a reference point –alignment to organisational goals and stated benefits

Start Ongoing End



The Case for “Business Cases” (continued)

0% 10% 20% 30% 40% 50% 60% 70% 80%

External Project CostsTimelines/Milestones/Urgency

Internal Project CostsFinancial Benefits

Link to Business StrategyScope

Project RisksMajor Assumptions

Business KPI BenefitsLink to Operational Plans

Qualitative BenefitsProject Dependencies

Alternatives/OptionsCritical Success Factors

Organisational Change RequirementsQuality Targets/Commitments

Financial ModelStakeholder Analysis

Percentage of Organisations Utilising Required Criteria in Business Cases



What to Start Doing Differently Today

Adopt a Methodology/Framework

Define Roles and

Responsibilities

Review Benefits

Realisation Often

41%

61%

80%

PresenterPresentation Notes80% - of organisations use more than one methodology, Prince 2 is the most common (54%)61% - of companies say they clearly define roles and responsibilities41% - of companies have a formal benefits review process…only 13% follow the benefits until they are realised.



What to Start Doing Differently Today (continued)

Stage Product Action

Co

rpo

rate

Exe

cuti

ve

Sen

ior

Use

r

Sen

ior

Su

pp

lier

Pro

ject

Man

ager

Pro

ject

Ass

ura

nce

SU Outline Business Case Create A P R R R RIP Detailed Business Case Create R A A A P RIP Benefits Review Plan Create A A A A P R

Producer – Responsible for the drafting of the productReviewer – Ideally independent of the productionApprover – Confirms Approval



What to Start Doing Differently Today (continued)“Development of a Benefits Review Plan is a winning strategy”

Composition:− The scope of the Benefits Review Plan covering what benefits to measure,

as per the Business Case− Who is accountable for the expected benefits− How to measure and when to measure− What resources are needed− Baseline measures− Consideration for dis-benefits


Overall, there are numerous factors which determine if Business Cases are a guiding light or a checkbox to fulfil governance requirements.

If used throughout the course of a project, from planning to closure/transition, significant gains may be felt.

The difficulty lies in ensuring that qualities and values prioritised at the start remain resilient over the course of time.


CLOSING THOUGHTS & QUESTIONS

Thank you!

© 2018 KPMG Services (Proprietary) Limited, a South African company and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. Printed in South Africa. KPMG and the KPMG logo are registered trademarks of KPMG International Cooperative (“KPMG International”), a Swiss entity.

The KPMG name and logo are registered trademarks or trademarks of KPMG International.

The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation.

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Business Cases Compass or �Curse?Quality of Business Cases…Your Presenters TodayOur MapCurrent SituationThe Case for “Business Cases”The Case for “Business Cases”The Case for “Business Cases” (continued)What to Start Doing Differently TodayWhat to Start Doing Differently Today (continued)What to Start Doing Differently Today (continued)CLOSING THOUGHTS & QUESTIONSThank you!Slide Number 14

compass or curse? · business cases the case for “business cases” – compass or curse “when...

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