business case example by joshgill

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									BUSINESS CASE TEMPLATE

Provision of Mailing Services to
  [insert organisation name]
Business case - explanation

  •   This document will help postal procurement personnel to detail the potential
      benefits (financial and non-financial) and costs involved in improving their postal
      services

  •   It can be used to secure commitment from senior management for changes
      required to improve performance

  •   It is intended to be a guide and will require completion and tailoring by individual
      organisations

  •   It draws on the NAO report, “Improving the Efficiency of Postal Services in the
      Public Sector”, which can be referred to for more information

  •   Note, use of [                       ] denotes information that must be completed
      by the user. Examples have been inserted into this document as a guide to
      indicate the type of information you may wish to consider inputting.
Business case - Contents

  •   Objectives and scope
  •   Summary (including quantified financial and non-financial benefits)
  •   Value levers
  •   Benefits (quantified, where possible, over time)
  •   Implementation tasks and project plan
  •   Key barriers
  •   “Reference” customers
  •   Methodology
  •   Assumptions
Business case – Objectives and scope

  •   To reduce spend on postal services
  •   To increase the quality of postal services
  •   This work focuses on postal procurement and management covering mail
      services
  •   The organisation may wish to take this opportunity to review related areas, such
      as stationery, printing costs, and use of the Post Office network
Business case – Summary

  •   Background: [highlight current spend, volume, suppliers, use of postal services
      within the organisation]
  •   Potential areas of improvement: [summarise findings from business case
      analysis]
  •   Potential benefits: [summarise financial and non-financial benefits over time]
  •   Implementation costs and timeline: [summarise implementation activities and
      costs over time]
  •   Key risks: [overview of risks and mitigating actions to achieving potential
      benefits]
  •   What next: [detail immediate next steps]
Business case – Value levers
  •   [Use NAO postal efficiency improvement tree to highlight primary value levers]
Business case – Benefits
                                                                     Year 1      $
 •       Financial benefits
                                                                     Year 2      $
                                                                     Year 3      $
 •       [Methodology for gathering data and assessing benefits]:

      Benefits can be measured by taking a baseline figure for the Key Performance
       Indicator (using data from a Mail Audit) and then re-measuring these at periodic
       intervals
     
           • For example, savings due to increased use of workshare products
              (compared with use of standard tariff) can be measured in this way

     •    Non financial benefits:

      [summarise key service delivery benefits, eg. reduction in lost mail, quicker
       delivery times, improved targeting of mail items]
Business case – Implementation tasks and project plan

•   Tasks will likely be around the following topics:

         Processes
                                    • [customer contact]
                                    • [applications and forms]
                                    • [mail generation]

         Technology
                                    • [printing]               • [data cleansing]
                                    • [sorting]                • [Key Performance ]Indicators]
                                    • [integration of systems]


         Organisation
                                    • [postal requirements]                   • [centralised
                                    • [manage post with print, stationery]       supplier
                                    • [centralised print centres]              management]
Business case – Implementation tasks and project plan
   •    Costs are estimated at:

Cost area          Cost
Technology         $
Process change $
New licenses       $

   •    The project will begin in [month, year] and complete in [month, year], with benefits
        beginning to be realised by [month, year].

        Month                                       Month
        1
       Task                                         3
                Milestone

                             Task
                                              Milestone
                                             Task
                                                            Milestone
                                                                        Task
                                                                               Milestone
Business case – Key barriers


                             Can be mitigated through
   [ e.g.Technology                                     [action]
   barrier]




                             Can be mitigated through
  [e.g.Internal resistance                              [action]
  To change]




   [Barrier 3]               Can be mitigated through
                                                        [action]
Business case – Reference customers


•   Other public and private sector organisations have made similar changes with
    substantial rewards [reference case examples in NAO report and good
    practice guide].
•   For example,


        [Change, eg. replace first class   [HM Revenue &              [$1.3m estimated
        with second class]                 Customs]                   savings]




        [Improve accuracy and              [National Savings &        [Postage savings of
        management of customer             Investments]               $20,000 + processing
        address data]                                                 savings and improved
                                                                      customer satisfaction]




    [Audit of mail usage]                   [Large Local Authority]   [Potential annual
                                                                      savings of $50,000]




    [         ]                             [    ]                    [      ]
Business case – Methodology and assumptions

  •   This business case has been created using the following sources:
         • [OGCbuying.solutions, postal services team]
         • [Discussions with existing postal suppliers]
         • [Discussions with potential new postal suppliers]
         • [regional procurement group]
         • [National Audit Office report, “Improving Postal Services Procurement in
            the Public Sector”]


  •   The main assumptions made for this business case are:
         • [assumption 1]
         • [assumption 2]

								
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