The Case For MakingA Business Case
with Dave Macdonald, CMAMarch 12th, 2013
Presentation for theBC Legal Management Association
1Monday, 18 March, 13
Agenda:Building a Business Case
• Introduction
• Goals
• Influencing Your Decision Makers (Parts 1-4)
• Break
• Influencing Your Decision Makers (Part 5)
• Getting Your Plan Together (1 Part)
2Monday, 18 March, 13
Introduction:Why Dave Macdonald?
• Certified Management Accountant since 2008
• Start-up and small business management consultant since 2007
• Communications, marketing, and social media consultant since 2010
3Monday, 18 March, 13
Introduction:What is today about?
• Know why the project needs to happen.
• Know your decision-makers.
• Know your project’s outcomes.
• Know your project’s risks.
Photo modified and used under CC license Sean MacEntee.
4Monday, 18 March, 13
Introduction:Detailed Agenda
• Influencing Your Decision Makers:
1. Knowing Project Outcomes
2. Knowing the Investment
3. Knowing the Stakeholders
4. Aligning Perspectives
• Q&A
• Break
5Monday, 18 March, 13
Introduction:Detailed Agenda
• Influencing Your Decision Makers (cont’d):
5. Pre-sell The Plan & Collect Feedback
• Compiling The Business Case
• Q&A
6Monday, 18 March, 13
Knowing Outcomes
Efficiency
Values
ImproveCompetencies
Marketing
7Monday, 18 March, 13
Knowing the Investment and Return on Investment
• Implementation Costs (investment)
• *Revenue Generation (return)
• *Cost Savings (return)
8Monday, 18 March, 13
Knowing the “Relevant Costs”
$0
$150
$300
$450
$600
270 360
300
25
250
250
25020092010
20112012
2013Communications Costs
Status QuoNew Option
$190
$105
}-$5
9Monday, 18 March, 13
Defining the “Relevant Costs”
• Costs the organization would not otherwise incur
• “Relevance” is determined by the decision makers
• The “cost” of a project is determined by how far out you are able to measure
10Monday, 18 March, 13
Knowing the “Relevant Costs”
$0
$150
$300
$450
$600
270 360
300
25
250
250
25020092010
20112012
2013Communications Costs
Status QuoNew Option Year 1:
$190
Year 2:$105 Year 3:
-$5
11Monday, 18 March, 13
Two Hidden Costs/Savings
1. Salaried Labour Costs
2. Overhead Costs
12Monday, 18 March, 13
Saves on Labour
Saves on Space,
Overhead, Etc.
The Double-Edged Sword of Hidden Costs and Savings
“Great, let’s put so&so to work on x.”
“Great, let’s use that resource for y.”
“Awesome. We can reduce labour.”
“Great, we can reduce spending on z.”
“We’re spending the money anyway so why bother?”
13Monday, 18 March, 13
Return on Investment Review
• Know the Relevant Costs
• Know the Return on Investment Over Several Periods
• Understand the Hidden Costs
14Monday, 18 March, 13
Know the Decision Makers
15Monday, 18 March, 13
16Monday, 18 March, 13
Decision Maker17Monday, 18 March, 13
Decision Makers18Monday, 18 March, 13
Influencers
Cash FlowResource Strain
Marketing
Leadership Presentation
Information Sources
Municipal / Provincial Goings-on
19Monday, 18 March, 13
Stakeholders
• Stakeholders vs Decision Makers
• Identify All Stakeholders
• Decision Makers
• End Users
• Vendors
• Ask: Is there enough overall push for this project?
20Monday, 18 March, 13
Aligning Perspectives
You
Decision Maker(s)
Rest of Company
21Monday, 18 March, 13
Aligning Perspectives
• For whom do your key outcomes matter?
• Can you match your prospective outcomes to decision makers and stakeholders?
• This is sales.
22Monday, 18 March, 13
Pre-Selling & Getting Feedback
• Engage all the stakeholders with a lot of questions
• The types of questions are important
• People get bought-in when they feel listened-to
• Multiple perspectives strengthen your ability to make a business case
23Monday, 18 March, 13
Questions for Pre-Selling & Getting Feedback
• “How do you currently communicate with colleagues and clients?”
• “Do you have frustrations when you do x?”
• “What does it mean for you to have outdated information?”
• Find questions that reinforce your prospective outcomes
24Monday, 18 March, 13
Thank you!
http://www.yupana.ca
e: [email protected]: 604-897-3351
Dave Macdonald, CMA
25Monday, 18 March, 13
Business Model Canvas
26Monday, 18 March, 13
Photo Credits
• Slide 4: Modified and used under CC license from Sean MacEntee.
• Slide 7: Money. Modified and used under CC license from Tax Credits.
• Slide 7: Hockey Practice. Modified and used under CC license from GoonSquadSarah.
• Slide 7: Light Bulb. Modified and used under CC license from John Steven Fernandez.
• Slide 7: Recycling Containers. Modified and used under CC license from Soctech.
• Slide 7: Hertz Marketing. Modified and used under CC license from x-ray delta one.
• Slide 16. Hippo. Modified and used under CC license from DEMOSH.
• Slide 17. Enthusiastic Audience. Modified and used under CC license from bpsusf.• Slide 18. Panel Interview. http://www.hrnasty.com.
27Monday, 18 March, 13
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