Business Case Assessment with Risk Analysis

Value Proposition

Assist organizations to maximize their capital investments by quantifying value, planning for the impact of uncertainty and presenting an unbiased view

The Problems

• Cost overruns and high failure rate of projects, particularly, Information Technology investments
  
• Most projects that fail, fail before they start – uncertainties are not uncovered nor planned
  
• Under-performing projects; unused project deliverables
  
• Managing a Project Portfolio without quantitative risk measurements
  
• CIOs and CFOs are demanding evidence of clear values before funding initiatives
  
• Financial and technical executives need an unbiased assessment of the feasibility of a proposed project
  

The Solution

• FGL performs an independent, economic/financial, business case assessment before the client commits to the project or on a distressed project
  
• We identify the value of the benefits and seek to reduce costs
  
• We ensure that the benefits being measured are aligned with the organization’s strategic goals
  
• Intangible and future benefits are quantified
  
• Risks and uncertainties are identified and quantified
  
• A risk reduction plan is incorporated
  
• Key Performance Indicators (KPIs) for post-project performance review are identified
  
• FGL will document the results of the assessment in a written report and provide an executive presentation
  

Key Benefits

• Overcome traditional accounting procedures that ignore significant benefits and risk factors - the risk/return analysis provides a great improvement for justifying investments
  
• Use of statistical techniques for data gathering shortens the assessment duration and requires less client staff involvement
  
• Further decrease the length of the assessment timeframe by concentrating only on benefits that align with the organization’s strategic goals and critical success factors
  
• Uncover areas for cost reduction
  
• Quantify value with a risk/return measurement before committing to the project
  
• Plan for high risk and high impact project factors
  
• Present financial outcomes as a distribution – a range of values correlating to project risk
  
• Identify and quantify intangible benefits such as customer relations, employee satisfaction, flexibility, reliability, quality, user acceptance
  
• Affect a saving by using the results of the justification as input to the project plan
  
• Measuring business performance is a foundation for finding value – by reviewing a completed project using Key Performance Indicators, organizations learn what to do and, just as importantly, what not to do in the next project
  
• A preliminary report is presented to the client; the sponsor and stakeholders must form a consensus on the data, assumptions and methodology used before the final document is prepared – this provides further commitment from senior management
  
• The result is a true, value-based assessment of a given project
  

Positioning

This service is targeted to the CIO, CFO, COO, CEO, business unit, and government agency leader. Another candidate is a manager at the department level who is considering a sizable project that needs justification to executives. An independent assessment will fortify the advocate with additional due diligence to substantiate the investment. This methodology is also applicable for prioritizing a portfolio of projects restricted by a limited budget.