Business Idea Evaluation Process
January 29, 2009 PURPOSE NACHA and the ACH Network benefit greatly from new business ideas, which are generated by a number of sources constituting the “NACHA Family.” To encourage new business ideas and ensure that each idea is given proper consideration and prioritization, NACHA is centralizing and standardizing its existing idea evaluation steps into this business idea evaluation process. The result is intended to be a uniform method for evaluating and prioritizing business ideas, and better communication on the process and status for all who submit ideas. Requests for NACHA to consider new business ideas should be submitted using the associated Business Idea Submission Form. Business ideas can include, but are not limited to: Membership benefits or groups; ACH Network applications, Pilots, or enhancements; ACH Network risk management services; Regulatory compliance; Education and implementation resources (including member communications, conferences, teleconferences, publications); and 6. Administrative and IT solutions. Often ideas, particularly those involving Network applications, rules enforcement or risk management solutions, result in rulemaking through the NACHA rules process. Business ideas should be documented on the accompanying form and submitted to: Kelley Shay Executive Assistant NACHA – The Electronic Payments Association E-mail: kshay@nacha.org Fax: 703-787-0996 BUSINESS IDEA EVALUATION METHODOLOGY The Business Idea Evaluation Methodology is composed of three defined steps: 1. Idea Generation; 2. Idea Assessment and Evaluation; and 3. Idea Development and Implementation. 1. 2. 3. 4. 5.
NACHA Business Idea Process Page 2 Step One – Idea Generation A party wishing to have NACHA consider a new business idea should complete and submit a Business Idea Submission form. The form outlines the information needed by NACHA to evaluate the idea. The submission should articulate the business idea, define its objective(s), and assess its impact on defined stakeholder groups. The submission should also identify a project sponsor(s), potential participants, and a primary NACHA staff contact. Idea Generation sources include the following organizations/bodies: NACHA Board of Directors; Direct Member Organizations and Industry Councils1; Standing Committees, Advisory Groups and Task Forces (e.g., Rules & Operations Committee, Risk Management Advisory Group, Direct Member Task Force)2; ACH Operators; Government Agencies (e.g., Treasury/Financial Management Service, Federal Reserve Board, Social Security Administration); NACHA-administered Groups (e.g. ACH Marketing Management Group); and NACHA Staff. Other organizations or parties wishing to have a business idea considered should work with one of these sources. Step Two – Idea Assessment and Evaluation Submitting a business idea form to NACHA triggers this next step. 1. Each business idea submitted to NACHA will receive an immediate acknowledgment. 2. Each business idea will be reviewed for completeness. A substantially incomplete submission form will be returned to the sponsor for clarification or additional information. 3. Each business idea will be reviewed for its relevance to NACHA’s Strategic Plan. An idea may be declined if it is inconsistent with NACHA’s Strategic Plan. For reference, a summary of NACHA’s Strategic Plan can be viewed at http://www.nacha.org/About/default.htm. 4. Each business idea will be reviewed to determine its relevance to NACHA’s annual Plans of Work, which are approved by the Board of Directors. “Significant” business ideas (see below) not specifically incorporated into the current Plan of Work may be placed for consideration into the development of the next year’s Plan of Work.
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NACHA’s Industry Councils are directed through Steering Committees and employ idea submission, prioritization and development processes within each Council. Ideas “reported out” from Councils to NACHA for further review, development and implementation include rulemaking proposals, marketing & education projects, publications, conference ideas and programs, etc.
Committees and Advisory Groups employ similar vetting and development processes to Industry Councils in the Idea Generation process.
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NACHA Business Idea Process Page 3 a. Example: A business idea submitted in December 2008 could be accepted for 2009 if an adjustment(s) can be made to the 2009 Plan of Work to make staff and budget resources available. b. Example: A business idea submitted in December 2008 could be declined for 2009 if it cannot be accommodated in the 2009 Plan of Work, even if it is otherwise determined to be a worthy business idea. The idea could be reconsidered to be included in the 2010 Plan of Work. 5. An idea determined to be “significant” may be further reviewed, approved and/or prioritized by one or more of the following relevant bodies: NACHA Board of Directors; NACHA Executive Management; and Rules & Operations Committee. Sponsors should be prepared to provide additional information about their business idea at the request of any of the approval bodies if needed to facilitate assessment or prioritization. Examples of business ideas that would be deemed significant are submissions that would result in: Major impact rule changes (Category A); New ACH Network pilot programs; New ACH Network administrative services; New Council or other membership programs; or Association initiatives expected to exceed $100,000 in expense. 6. Business ideas not meeting this level of significance would be routed to the relevant NACHA department for further development with the sponsor. 7. An initial response will be communicated to the business idea submitter as soon as practical and no later than 45 calendar days from submission. Initial responses include: A preliminary assessment of the idea, and an indication of next steps, such as the identification of others bodies that will be asked to review the idea; Identification of additional information that is needed; Acceptance of the idea; Non-acceptance of the idea; or Conditional acceptance of the idea, pending availability of budgetary and/or staff resources. 8. Each business idea sponsor will receive a final assessment, once rendered, and an identification of next steps for the idea’s development and implementation.
NACHA Business Idea Process Page 4 Step Three – Idea Development and Implementation NACHA acceptance of a business idea triggers the next step - idea development and implementation. 1. If approved by an authorized NACHA approval body, the business idea will be assigned to a relevant group for development and implementation. These groups include: Industry Councils; Standing Committees, Advisory Groups and Task Forces (e.g., Rules & Operations Committee, Risk Management Advisory Group, Direct Member Task Force); Rules Work Groups; ACH Operators; NACHA-Administered Groups (e.g. ACH Marketing Management Group); NACHA Staff. 2. Business idea sponsors should be prepared to support their initiative through the development and implementation process. Sponsors will receive regular status reports, including a summary of how their business idea will be pursued (e.g., assignment to a new or existing Rules Work Group, reassignment to a Council, creation of a membership or staff team as relevant, etc.). 3. NACHA’s Board of Directors, Membership and Executive Management will receive regular reporting through existing communications channels as relevant to the business idea.