Business Case

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									Business Case                                   [Project Name]




PROJECT NAME
Business Case
[Company Name]




                 Authors:
                 Creation Date:
                 Last Updated:
                 Version:




[Company Name]                    Page 1 of 7   [Revision Date]
Business Case                                               [Project Name]




Revision History

      Date          Author             Version   Change Reference




Approvals

      Date         Approver            Version      Comments




Reviewers

      Date         Reviewer            Version      Comments




[Company Name]                Page 2 of 7                   [Revision Date]
Business Case                                         [Project Name]



Purpose




Background and Chronology




Current and Projected Business Environment




[Company Name]                          Page 3 of 7   [Revision Date]
Business Case                             [Project Name]


Critical Success Factor




Business Needs




Summary of Business Scope




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Business Case                         [Project Name]


Solution Approach




Resource Requirements




Financial Analysis




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Business Case                                [Project Name]


Success Measurement Criteria




Change Management Summary




Initial Risk Consideration




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Business Case                                                     [Project Name]


Alternative Analysis




Approvals


Project Manager Signature       Sponsor or Originator Signature




Project Manager Name            Sponsor or Originator Name



Date                            Date




[Company Name]              Page 7 of 7                           [Revision Date]
Fields displayed in GREY are text boxes that should be filled out with the requested information. Sections of the Cost/Benefit Summary are further explained below:


Section 1: Required Cost/Benefit Components for Phase Tollgates
  Component
                                                           Description                                        IG&P             Define       Measure Analyze              Improve           Control
    Name
Revenue                      The expected incremental pre-tax revenue improvement (+/-) that will                               If a Revenue Improvement is Anticipated:
Improvement                  result from this project investment. The revenue improvement will
               (Annual in    result from a change in the baseline net interest income and/or non                                                                            Enter $         Enter
$000's)                      interest income resulting from full deployment of this project solution.                          Enter $      Update $      Update $         Estimate        observed
                             The Revenue Improvement benefit is represented in incremental                  Check box
                                                                                                                              Projection    Projection    Projection    (validated by      actual $
                             average annualized dollars with the first "high level" quantification due                                                                   pilot results)     impact
                             at the Define tollgate.
Expense                      The expected incremental pre-tax expense reduction (+/-) that will result                           If a Expense Reduction is Anticipated:
Reduction                    from this project investment. The Expense Reduction will result from a
     (Annual in $000's)      change in baseline credit losses, direct operating expense and/or indirect                                                                     Enter $         Enter
                             operating expense resulting from full deployment of this project                                  Enter $      Update $      Update $         Estimate        observed
                             solution. The Expense Reduction benefit is represented in incremental          Check box
                                                                                                                              Projection    Projection    Projection    (validated by      actual $
                             average annualized dollars with the first "high level" quantification due                                                                   pilot results)     impact
                             at the Define tollgate.
Cost Avoidance               A benefit associated with an project that prevents a here-to-for                                  If a Cost Avoidance Impact is Anticipated:
             (Annual in      unrealized operating cost from materializing or creates the opportunity
$000's)                      for future hard benefits. Cost Avoidance benefits are represented in                                                                           Enter $         Enter
                             incremental pre-tax average annualized dollars with the first "high level"                        Enter $      Update $      Update $         Estimate        observed
                             quantification due at the Define tollgate. Since this benefit is not           Check box
                                                                                                                              Projection    Projection    Projection    (validated by      actual $
                             included in the baseline, it will not be included in the calculation of                                                                     pilot results)     impact
                             incremental 5 Year SVA.
Total Benefit                Total Benefit is the sum of the annualized pre-tax Revenue                                                     $ Sum of      $ Sum of
                                                                                                                              $ Sum of                                    $ Sum of         $ Sum of
                             Improvement, Expense Reduction and Cost Avoidance identified above.                                            Updated       Updated
(Annual in 000's)                                                                                                             Projected                                   Estimated        Observed
                                                                                                                                            Projected     Projected
                                                                                                                               Impacts                                     Impacts          Impacts
                                                                                                                                             Impacts       Impacts
Capital Expense              Funds required to acquire or improve capital assets, such as equipment,                               If a Capital Expense is Anticipated:
      (Total in 000's)       necessary to build or deploy this project. This expense may be                                                                                 Enter $       Enter total
                             capitalized and depreciated over time or expensed immediately                                                                 Enter $         Estimate         actual
                             depending on the type of capital purchased and the Bank's capitalization                                                     Projection    (validated by       Capital
                             policies.                                                                                                                                   pilot results)   Expenditure
Operate Cost                 Total incremental average annualized direct and/or indirect expense to                                 If an Operate Cost is Anticipated
    (Annual in 000's)        operate once the project solution is fully deployed. (People, process and
                             technology).                                                                                                                                   Enter $        Enter total
                                                                                                                                                           Enter $         Estimate          actual
                                                                                                                                                          Projection    (validated by       Operate
                                                                                                                                                                         pilot results)     Expenses

5 Yr SVA                     Incremental SVA Benefits that will be realized over five years beginning
            (Annual in       with the project start date. SSCP 2.0 requires the quantification of 5                                                                         Enter $
000's)                                                                                                                                                     Enter $         Estimate        Enter total
                             Year SVA for the Analyze tollgate. The Finance partner for the project
                                                                                                                                                          Projection    (validated by      actual SVA
                             should assist in the SVA calculation.
                                                                                                                                                                         pilot results)

LOB Willingness The maximum amount the business is willing to invest based on the
to Spend          projection of incremental benefits expected from the project.                                                                                                             Enter $
                                                                                                                               Enter $      Update $      Update $        Enter $
 (Total in 000's) Willingness to spend when compared to benefits and project cost should                                                                                                    Actual
                                                                                                                              Projection    Projection    Projection      Estimate
                  provide a basis for decisioning project continuation and prioritization.                                                                                                Project Cost


Project Cost                 The expected total people, process, and technology costs required to                                                                                           Enter $
                                                                                                                               Enter $      Update $      Update $        Enter $
            (Total in        deliver the business requirements (end-to-end project cost).                                                                                                   Actual
000's)                                                                                                                        Projection    Projection    Projection      Estimate
                                                                                                                                                                                          Project Cost
Funding for                  The estimated amount of funding necessary to complete Define phase                                 Enter $
Define                       work.                                                                                           Define Cost
      (Total in 000's)                                                                                    Enter $ Estimate    in Control
                                                                                                                             Phase Actual
                                                                                                                                Column
Funding for                  The estimated amount of funding necessary to complete Measure and                                                              Enter $
Measure (M) &                Analyze phase work.                                                                                                          M&A Cost
                                                                                                                               Enter $      Update $
Analyze (A)                                                                                                                                               in Control
                                                                                                                               Estimate     Estimate
                    (Total                                                                                                                               Phase Actual
in 000's)                                                                                                                                                   Column
Funding for                  The estimated amount of funding necessary to complete Improve and                                                                                            Enter $ I&C
Improve (I) &                Control phase work.                                                                                                                                            Cost in
Control (C)                                                                                                                                                Enter $        Update $
                                                                                                                                                                                            Control
                                                                                                                                                           Estimate       Estimate
                                                                                                                                                                                          Phase Actual
(Total in 000's)                                                                                                                                                                            Column
          Field Instructions                                                               Bank of America Confidential                                                               Version 2.11 Page 2
Section 2 - Hoshin Driver Alignment with Project CTQs and Detailed Measures
  Field Name                                       Description                                         IG&P          Define      Measure Analyze            Improve         Control
Hoshin               Business Unit's Hoshin Plan reference number for listed Impacted Driver
Reference #                                                                                           Enter #                         Update # entered as needed

Impacted Drivers List Hoshin-Business Drivers that are aligned with and impacted by the
                 implementation of the project solution.                                              Enter
                                                                                                   Description of          Update Description of Impacted Driver as needed
                                                                                                  Impacted Driver

Project Level        Project's Critical to Quality metric that is aligned to and supports the                                  Update List    Update List   Update List Update List
CTQs                 achievement of each Impacted Driver.                                                            List CTQs of CTQs as     of CTQs as    of CTQs as of CTQs as
                                                                                                                                  Needed         Needed        Needed     Needed
Supporting           Variables used to calculate and measure the Annual Impact of an                                           Update List    Update List   Update List Confirm
                                                                                                                        List
Variables            project. Drop down list box used to classify benefits as either: Revenue                                  Supporting     Supporting    Supporting    list of
                                                                                                                    Supporting
                     Improvement, Expense Reduction, or Cost Avoidance.                                                         Variables      Variables     Variables    Actual
                                                                                                                     Variables
                                                                                                                                as Needed      as Needed     as Needed Supporting
Benefit Type         Drop down list box used to classify benefits as either: Revenue                                             Update         Update        Update     Variables
                                                                                                                                                                         Update
                     Improvement, Expense Reduction, or Cost Avoidance.                                                Select    selected       selected      selected   selected
                                                                                                                      Benefit    Benefit        Benefit       Benefit    Benefit
                                                                                                                        Type     Type as        Type as       Type as    Type as
                                                                                                                                  needed         needed        needed     needed
Annual Impact        Quantifies incremental annualized movement of Supporting Variables                                                                     $ Estimate
                     based on project business requirements and information available at                                                                    of Annual
                     each DMAIC phase.                                                                                  $        Updated $    Updated $                    Annualized
                                                                                                                                                              Impact
                                                                                                                    Projection   Projection   Projection                    observed
                                                                                                                                                            (should be
                                                                                                                    of Annual    of Annual    of Annual                      actual $
                                                                                                                                                             validated
                                                                                                                      Impact       Impact       Impact                        impact
                                                                                                                                                              by pilot
                                                                                                                                                              results)
Comments/ Key        Use to document key assumptions and\or issues related to the
                                                                                                                                 Update As Needed
Assumptions          cost\benefit estimates
Overall Degree of    The overall level of impact that the project solution will have on the                                       Update       Update        Update          Update
Hoshin Impact        LOB business drivers based on the following categories: extreme,                                Select       selected     selected      selected        selected
                     strong, moderate, low and none based on the definitions of each                                Degree of    Degree of    Degree of     Degree of       Degree of
                     Business Unit.                                                                                  Hoshin       Hoshin       Hoshin        Hoshin          Hoshin
                                                                                                                     Impact      Impact as    Impact as     Impact as       Impact as
                                                                                                                                   needed       needed        needed          needed
Section 3 - Approved by
  Field Name                                         Definition                                        IG&P          Define      Measure      Analyze       Improve         Control
Name/Date            Signoffs must be obtained at each Tollgate by the Project Manager,                               Obtain       Obtain       Obtain        Obtain         Obtain
                     Executive Sponsor/Champion, LOB Finance Partner, and LOB Risk                    Obtain
                                                                                                                    signatures   signatures   signatures    signatures     signatures
                     Partner                                                                      signatures and
                                                                                                                     and date     and date     and date      and date       and date
                                                                                                  date signature
                                                                                                                     signature    signature    signature     signature      signature
                                                                                                     obtained
                                                                                                                      obtained     obtained     obtained      obtained       obtained

  Field Name                                         Definition                                        IG&P          Define      Measure      Analyze       Improve         Control
Projection           Cost and benefit component and supporting variable valuations based on                          Complete    Complete    Complete
                                                                                                  Complete each
                     business requirements and the best information available in the Idea                              each        each        each
                                                                                                   requirement
                     Generation, Define, Measure and Analyze phases. The confidence level                           requirement requirement requirement
                                                                                                      above
                     of projections should improve during each phase.                                                  above       above       above
Estimation           Cost and benefit component and supporting variable valuations based on                                                                  Complete
                     information from the Improve phase pilot results. The pilot results will                                                                  each
                     greatly improve the confidence level of the estimation.                                                                                requirement
                                                                                                                                                               above
Actual               Cost and benefit component and supporting variable valuations based on                                                                                 Complete
                     an assessment of actual results in a stable operating environment post                                                                                   each
                     deployment of the project solution during the Control phase.                                                                                          requirement
                                                                                                                                                                              above
Variance             The difference between the "Estimation" of component and variable and                                                                                  Complete
(over)/under         the "Actual" results achieved in a stable operating environment post                                                                                     each
                     deployment.                                                                                                                                           requirement
                                                                                                                                                                              above




     Field Instructions                                                             Bank of America Confidential                                                         Version 2.11 Page 3
                                                                                                                  Cost/Benefit Summary
                                                                                                                                                                                                Project Name:
                                                                                                                                                                                       Change Request #:
Section 1: Required Cost/Benefit Components for Phase Tollgates ($000's)
                                                                                                      IG&P          Define           Measure         Analyze        Improve                Control                         (Update Each Phase)
         Legend:                                            Component                                                     Projection                               Estimation     Actual           Variance         Comments/Key Assumptions
                                                                                                                                                                                                 (over)/under
                Required                  Revenue Improvement (Annual)                                                                                                                                      - Hard Dollar %
                Not Required              Expense Reduction (Annual)                                                    3,000             3,300                                                             - Hard Dollar %
                N/A                       Cost Avoidance (Annual)                                                                                                                                           -
                                        Total Benefit (Annual)                                                          3,000             3,300                -              -             -               -
                                        Capital Expense (Total)                                                                                                                                             -
         Methodology:
                                        Operate Cost (Annual)                                                                                                                                               -
         Improv. Greenbelt              SVA (5 year)                                                                                                                                                        -
         Greenbelt w/ DFSS              LOB Willingness to Spend (Total)                                                4,500             4,500                                                             -
         Blackbelt
                                        Project Cost (Total)                                                            4,000             4,000                                                             -
         Other

                                                                                   Gated Funding Requests (Project Pool $'s only)                                                 Actual           Variance         Comments/Key Assumptions
         Funding:                                                                                                                                                                                (over)/under
                                        Funding for Define                                                   50                                                                            47               3
         Budgeted
                                        Funding for Measure & Analyze
         Unbudgeted
                                        Funding for Improve & Control                                                                                                                                       -


Section 2: Hoshin Driver Alignment with Project CTQs and Detailed Measures
         IG&P (Update Each Phase)                               Define (Update Each Phase)                          Define           Measure         Analyze     Improve                   Control                         (Update Each Phase)
                                                                             Supporting Variables                                                       Annual Impact
Hoshin
                Impacted Drivers              Project Level CTQs                              & Benefit                                                                                            Variance         Comments/Key Assumptions
 Ref #                                                                                                                             Projection                      Estimation     Actual
                                                                                        Type                                                                                                     (over)/under
                                                                              # Impacted Associates                                            482                                                          -   CM's, RM's, LOB Finance, SP Finance
                                                                              $000 FY Cost/Associate                                           138                                                          -   Weighted Average (in 000's)
                                        Reduce amount of time spent           % of time spent C&C                                              12%                                                          -   Time spent collecting and compiling
            Improve Finance
 1.2.1                                  collecting and compiling Project      % Time saved                                                     40%                                                          -   Primary CTQ
            Technology Infrastructure
                                        financial data by 40%                                                                                                                                               -
                                                                                                                                                                                                            -
                                                                              Cost Avoidance $000's                     3,000              3,300                                                            -
                                                                                                                                                                                                            -
                                                                                                                                                                                                            -
                                                                                                                                                                                                            -
                                                                                                                                                                                                            -
                                                                                                                                                                                                            -
                                                                                                                                                                                                            -
                                                                              Revenue Improvement $000's                                                                                                    -
                                                                                                                                                                                                            -
                                                                                                                                                                                                            -
                                                                                                                                                                                                            -
                                                                                                                                                                                                            -
                                                                                                                                                                                                            -
                                                                                                                                                                                                            -
                                                                              Cost Avoidance $000's                                                                                                         -
                                        Overall degree of
                                                            Strong
                                        Hoshin impact



Section 3: Approved by
                                                       Define                            Measure                             Analyze                         Improve                       Control
                                               Name                Date           Name                Date           Name               Date          Name             Date       Name               Date
                 Project Manager:
     Executive Sponsor/Champion:
             LOB Finance Partner:
                LOB Risk Partner:
    CB Page 1                                                                                                        Bank of America Confidential                                                                                  Version 2.11 Page 4
Template Revision History
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