The Lumos Partnership

Demand Management and Performance Management

Organisations undertake substantial capital investment or change programmes in the course of their activity.  Traditional business cases for these investments are often qualitative with minimal assessment of financial benefits to justify the investment.

If the actual results of the investments were known or anticipated at the outset, it is likely that many projects would not be approved.

Organisations are looking to strengthen the development and review of the business cases to ensure resources are allocated only to projects that demonstrably maximise return and create value.

Prior to the creation of a business case, there is the need to justify and validate ideas against corporate objectives.   It is common in organisations for ideas to be discarded before they have been thought out or, at the other end of the spectrum, taken to a full business case stage and then discarded.

The existence of an initial set of control gates (see below) and a process to enable multiple ideas to be considered together and validated against objectives, enables the right effort to be focussed where it matters.

Having justified the need to achieve a set of defined outcomes, a clear and concise business case is critical to ensuring those outcomes are achieved.  The business case provides a clear point of reference throughout the lifecycle as to the original purpose, plan, costs, projected outcomes and benefits.

Additionally the business case is used to:

  • Obtain stakeholder commitment
  • Secure initial approval for investment
  • State clear and measurable metrics and KPIs that can be adhered to and measured
  • Articulate a clear plan for the whole programme and a detailed plan for the next stage

Throughout this process we help clients identify, anticipate and proactively manage programme risk. This assessment includes:

  • The expected financial benefit of the project - NPV allowing for financial benefit and investment cost
  • Project uncertainties, risks and risk solutions
  • The cost and effectiveness of risk management
  • Potential variability of project outcomes, net of risk management – in terms of cash flow, NPV, IRR
  • Acceptability of project’s return profile, given project’s strategic importance and size.

Our work helps clients identify viable projects, construct and develop robust business cases, execute projects and create risk management plans for internal submission.