1、Business Case Process,John DiNofrio Gary GraybillApril 8, 2003,4/8/03,BusCaseProcessPresentation1,2,Overview,The Business Case is a standardized management tool that captures planning information about a new project. It is constructed by the originator, the sponsor, and the performing organization t
2、o document business decisions. It should be used to help decide if a project/program proceeds.,4/8/03,BusCaseProcessPresentation1,3,Business Case Objectives,The Business Case is the basis of a presentation to decision makers so they may make more informed decisions. It is a formal document that is r
3、eviewed and signed by the originator, sponsor, and the performing organization to ensure all parties understand and agree on their roles and responsibilities. It should be signed by decision makers to approve and grant authority to proceed.,4/8/03,BusCaseProcessPresentation1,4,Business Case Requirem
4、ents,Business Case needs to be developed: External New Business DOT other than FAA Other Government Agencies Military, State and Local Govt., etc. Industry Academia International New Projects valued at over $50K Example - VizSim Lab Business Cases are not required: Existing Projects and Customers Pr
5、ojects with PDs Follow-on to Existing Projects,4/8/03,BusCaseProcessPresentation1,5,Business Case Timeline,Due Diligence Begins with initial discussions to determine project feasibility Business Case Development Begins when “players” begin to formalize and document business decisions. This cycle end
6、s when all are satisfied with the documented decisions and sign the Business Case. Review/Approval Begins with the development of the Business Case Presentation and ends after the Business Case is presented and approved.,4/8/03,BusCaseProcessPresentation1,6,Business Case Process,Each LOB personally
7、commits to ensuring business cases are developed Each LOB will develop their own process to track and approve business cases All business cases that go to the SLT for approval will be maintained by LOB and ACFTech Center wide initiativesInitiatives that require funding outside of LOB budgetInitiativ
8、es $ On a quarterly basis, the number of business cases developed and ROI will be tracked for measurement reporting,4/8/03,BusCaseProcessPresentation1,7,ACFs Roles & Responsibility,Assist the originator, the sponsor, and the performing organization in developing the business case Provide support to
9、the SLT and LOB staff throughout decision making process Provide support to the originator in developing the financial case for the program/project,4/8/03,BusCaseProcessPresentation1,8,Next Steps,SLT and LOB ensure that business cases accompany project requests. LOB develop internal process to carry
10、 business case from due-diligence to approval. ACF develops corporate processes Begin tracking business cases and ROIs for corporate measurement reporting.,4/8/03,BusCaseProcessPresentation1,9,Summary,The Business Case process establishes a standard procedure for documenting new business opportuniti
11、es. Business Cases are required for: External New Business Opportunities (i.e. other than FAA) New Projects valued at over $50K (i.e. VizSim Lab) The Business Case ensures buy-in from project stakeholders and grants approval to proceed. The Business Case Template provides guidelines as well as forma
12、t instructions. It is available now! Suggestions for Business Case Template improvement should be made to ACF-1.,Backup,4/8/03,BusCaseProcessPresentation1,11,Business Case Contents,The Business Case contains key information to support informed management decisions Describes the project and approach
13、(What is this Project about?) Lists organizational stakeholders (Who is involved?) Sponsor (funder) Originator (if different from performer) Performer Stakeholder Benefactor Competitors Lists Benefits (Why do this Project?) Relevance to Corporate Goals Intrinsic or Derived,4/8/03,BusCaseProcessPrese
14、ntation1,12,Business Case Contents (Continued),Costs (How much will this cost?) Resource Requirements Facility Requirements (e.g. Laboratories) Other (Materials, Equipment, etc.) Revenue (How much will it bring in?) Schedule (How long will the project take?) Risks (What could cause the Project to fa
15、il?) Assumptions (What constants are required for success?) Summary Recommendations (Request for signature authorizing approval to proceed.),4/8/03,BusCaseProcessPresentation1,13,Business Case Cover Page Sample,4/8/03,BusCaseProcessPresentation1,14,Business Case Table of Contents Sample,Executive Su
16、mmary1.0 Project Name 2.0 Business Case Participants 2.1 Originator/Requestor 2.2 Performer/Acquirer 2.3 Sponsor 2.4 Stakeholders, Customers (internal and external) 3.0 Competitors 4.0 Situational Assessment (Current State) and Problem Statement 4.1 Project Description and Scope 4.2 Proposed Solutio
17、n/Approach 5.0 Resource Requirements 6.0 Timeline / Milestones 7.0 Financial Assessment 7.1 Costs,8.0 Mission Relevance to Goals 8.1 FAA Goals 8.2 ARA Goals 8.3 Technical Center Goals 9.0 Benefits 9.1 Intrinsic or Derived Benefits 9.2 Measurable Benefits 10.0 Cost and Benefit Analysis 11.0 Assumptio
18、ns and Risks 11.1 Project Assumptions 11.2 Risk Assessment 11.2.1 Adverse Impact Of Not Performing TheProject 11.3 Risk Summary 12.0 Conclusions and Recommendations 13.0 Approvals and Authorizations 14.0. Document Change History,4/8/03,BusCaseProcessPresentation1,15,Sample Financial Assessment VizSim Lab,
