CDC UNIFIED PROCESS PRACTICES GUIDE

Transcription

1 Dcument Purpse The purpse f this dcument is t prvide guidance n the practice f Business Case and t describe the practice verview, requirements, best practices, activities, and key terms related t these requirements. In additin, templates relevant t this practice are prvided at the end f this guide. Practice Overview A Business Case assists rganizatinal stakehlders in making decisins regarding the viability f a prpsed investment/prject (hereafter referred t as prject) effrt. Use f a Business Case is cnsidered standard practice thrughut private and public industry. In gvernment there are als specific laws and regulatins that mandate the use f Business Cases fr certain prject types. Fr example, Capital Planning and Investment Cntrl (CPIC) requires sme frm f Business Case fr all infrmatin technlgy (IT) prjects. The Exhibit 300, Capital Asset Plan and Business Case, is required by the Office f Management and Budget (OMB) fr all Majr and Tactical prjects at the Department f Health and Human Services (HHS). In additin, CPIC perfrms regularly scheduled reviews that may require updates t the Business Case dcument. Hw ften these reviews happen is dependant upn the type f prject. Prir t the develpment f a Business Case, a Business Needs Statement is required fr the initial presentatin f any new prject cncept. This dcument shuld prvide sufficient infrmatin t justify a decisin t mve frward with the develpment f a full Business Case. This decisin results frm a review f the Business Needs Statement by an apprpriate gvernance bdy and shuld be btained prir t the beginning wrk n the Business Case. Once the Business Needs Statement has been cmpleted, apprved, and the develpment f a Business Case authrized, the much mre detailed Business Case dcument must be develped. Infrmatin used as part f the Business Needs Statement shuld be used as a starting pint t ppulate the Business Case dcument and expanded upn t meet any related requirements mandated by CPIC, OMB, ther regulatins, plicies, prcesses and/r practices. Fr mre infrmatin n regulatry requirements regarding CPIC refer t the CDC Unified Prcess (UP) CPIC Prcess Guide lcated n the CDC UP website at Additinal infrmatin and templates are lcated n the CPIC website at The HHS Enterprise Perfrmance Life Cycle (EPLC) defines a Business Case as a dcumented, structured prpsal fr business imprvement that is prepared t facilitate a selectin decisin fr a prpsed prject r prject by rganizatinal decisin makers. The Business Case describes the reasns and justificatin fr the prject in terms f business prcess perfrmance, needs and/r prblems, and expected benefits. It identifies the high-level requirements that are t be satisfied, an analysis f prpsed alternative slutins (with reasns fr rejecting r carrying frward each ptin), assumptins, cnstraints, a risk-adjusted cst-benefit analysis, and preliminary acquisitin plan. The Business Case shuld identify and validate an pprtunity t imprve business accmplishments f the rganizatin r t crrect a deficiency related t a business need and what business benefits can be expected by implementing this prject. The Business Case presents infrmatin regarding a prpsed prject t stakehlders respnsible fr making spnsrship decisins. When dcumenting this infrmatin it is imprtant t state these needs and pprtunities in business terms. The dcument assists with cmmunicating t prspective spnsrs the ratinale fr a prpsed prject by presenting it in a way that aligns with the bjectives f the spnsring rganizatin and justifies, in nn-technical terms, reasns fr initiating it. The Business Case is used t dcument and present, prir t any investment, the variables and alternatives assciated with making an investment decisin. The dcument ensures that such variables have been thrughly cnsidered, and dcumented, and that bth the value and the risks assciated with UP Versin: 06/30/08 Page 1 f 6

2 the prject are understd by its stakehlders. A Business Case shuld demnstrate that the infrmatin cntained within it has been carefully cnsidered and analyzed t present the best pssible slutin that mst clsely aligns with the rganizatinal gals and bjectives. The level f detail cntained within a Business Case is ften dependant upn what s apprpriate fr the size, cmplexity, and cst f the prpsed prject. The greater the size, cmplexity, and/r cst, the mre detail will be required. The Business Case shuld cntain infrmatin utlining items such as: Backgrund descriptin f the business need/issue Explanatin f the identified benefits f addressing that need Identificatin f significant assumptins and cnstraints related t relative slutins Alignment f prject benefits with rganizatinal bjectives Justificatin fr undertaking the prject Descriptin f perfrmance gals and measures Definitin f success fr the prpsed prject Analysis f alternative slutins, including the pssibility f staying as is Identificatin f preferred recmmended slutin Explanatin f why the preferred slutin is recmmended Analysis f prcurement surcing ptins Identificatin f preferred recmmended prcurement surce(s) Explanatin f why the preferred prcurement surce(s) is recmmended Estimatin f required resurces such as funding, labr, materials, etc fr bth the prject and nging supprt and maintenance f any related r nging prject effrts Descriptin f hw benefits f executing the prject will be realized Estimatin f return n investment, break-even pint, peratinal/nging csts, etc. Explanatin f prject risks/issues and strategies t address them Any infrmatin prvided within the Business Case shuld be at a level f detail sufficient t familiarize readers with the histry, issues, and pprtunities that can be realized frm the prject. High-level analysis and preliminary risk assessment is perfrmed t establish/supprt the Business Case. The business prcess is mdeled and pssible alternatives identified. High-level system requirements, technical design cncept/alternatives, and cst estimates are prepared. The verall strategy fr acquisitin is defined, including cnsideratin f internal versus external acquisitin, whether requests fr infrmatin are necessary, hw wrk will be divided, and expected cntract types. The Business Case is ften created early in the prject life cycle. Hwever, depending n the size and/r cmplexity f a prject, the Business Case may smetimes be develped incrementally. Fr example, a preliminary Business Case, r strategic utline, may be used t cnfirm the verall strategic apprach f the prject. As mre infrmatin becmes available preliminary data is leveraged t utline and then finalize a mre cmplete Business Case. A similar apprach may be taken if the prject apprach is iterative in nature. A higher-level Business Case may be used early in the prject life cycle t justify the prject. As the prject prgresses thrugh its life cycle, and mre infrmatin is btained abut the required wrk, the Business Case shuld be updated t reflect this as part f each iteratin. Regardless f which apprach is used, the Business Case dcument needs t be presented t ptential stakehlders in a frm that easily cmmunicates the prs and cns f spnsring and nt spnsring the prpsed prject. Sme basic elements f a typical Business Case include items such as: General infrmatin Purpse Evaluatin criteria High-level business impact Alternative analysis Financial cnsideratins Wrk breakdwn structure (WBS) Summary f spending UP Versin: 06/30/08 Page 2 f 6

3 Investment/Prject descriptin Justificatin Perfrmance gals & measures Investment/Prject management Alternatives analysis Risk/Issues analysis Acquisitin strategy Funding plan Enterprise architecture Plicies, prcedures, and regulatins The EPLC states that the Prject Manager is ultimately respnsible fr the develpment f the Business Case. Hwever, this effrt is ften perfrmed with a team f stakehlders prviding input. Stakehlders typically invlved in Business Case develpment may represent areas frm prject management, prduct develpment, finance, analysts t perfrm cmpetitive analysis, critical partners, etc. Their input is used in the develpment f the Business Case which at a high-level may be accmplished by using the fllwing strategy. 1. Assessing the Organizatin Prjects are typically undertaken t leverage an pprtunity, imprve smething, r t address a particular need such as changes in business bjectives, strategy, visin, envirnment, legislatin, regulatin, plicies, cmpetitin, prducts, etc. Regardless f riginatin, understanding the rganizatin, its gals, bjectives, and resurces, is vital t cmmunicating value f the prpsed prject. It s imprtant t investigate the business need befre attempting t find a slutin. Determine the rt cause and understand its assciated variables. Once identified, describe the need, its causes, the impact it has n the rganizatin, and hw and when it may be reslved by the prpsed prject. Understand the rganizatin s business dynamics and use that t align prpsed prject gals with rganizatinal bjectives. The gal is t shw that the prject is cnsistent with rganizatinal bjectives. Sme f the activities perfrmed at this stage f Business Case develpment may include assessment f: Current, future, and ptential stakehlder Key rganizatinal strategies and bjectives Critical success factrs Key perfrmance indicatrs that may eventually be used t measure prject success Identificatin and mdeling f business prcesses Success factr alignment with rganizatinal gals and bjectives Enterprise Architecture (EA) review and incrpratin Security cnsideratins 2. Identifying and Evaluating Alternative Slutins After gaining a detailed understanding f the business need, identify and analyze ptential alternative reslutins and identify ne preferred slutin. Research all ptins and shw hw each may address the business need. Sme examples f alternatives t cnsider may include: Buy vs. build vs. lease vs. reuse f existing peple, equipment, r prcesses Outsurce vs. in-huse develpment Cmmercial ff the shelf (COTS) vs. Gvernment ff the shelf (GOTS) Mainframe vs. server-based vs. clustering Unix vs. Linux vs. Windws Include an analysis f items such as risk, cst, training, technlgy, availability, etc. Prvide realistic estimates based n research and input frm subject matter experts. Anticipate ptential stakehlder respnses t each alternative and address them in the Business Case. Cnsider cmparing the prs and cns f each alternative side-by-side in a table. UP Versin: 06/30/08 Page 3 f 6

4 Use this infrmatin t ppulate the apprpriate sectin(s) f the Business Case dcument. T help ensure that the best ptential slutins are selected cnsider the fllwing steps: Identify as many alternative slutins as pssible Include staying as is (status qu) as an alternative Quantify the prs and cns f implementing each alternative Frecast the csts assciated with implementing each alternative Frecast the ptential business impacts assciated with implementing each alternative Assess the feasibility f implementing each alternative including security cncerns Identify and analyze the risks and issues assciated with implementing each alternative Priritize alternatives in rder f best fit fr the rganizatin based n time, scpe, cst, and quality 3. Recmmending a Preferred Slutin A Business Case shuld prvide managers the infrmatin necessary t make financial decisins regarding priritizing enterprise expenditures based n the value f the prpsed prject versus ther prjects. Define a set f criteria (benefits, csts, feasibility, risk, return n investment, ttal cst f wnership, etc) t use fr analyzing each alternative slutin. Devise a standard mechanism fr scring each alternative based n the imprtance f each criterin and select the preferred slutin based n this analysis. Increase accuracy f the infrmatin presented by basing future estimates n histrical data whenever pssible. In the absence f histrical data, cnsult with subject matter experts and estimate cnservatively t prvide realistic prjectins f future benefit. Prvide an explanatin f why the selected slutin best addresses the business need cmpared with ther ptins. Keep the presentatin f the selected prject recmmendatin simple. Avid cmplicating the presentatin with technical jargn, acrnyms, and ambiguus wrds. The gal is t present a cncise slutin t the ptential prject spnsr. If they cannt understand the prpsal it s unlikely that they will be inclined t spnsr it. 4. Describing the Implementatin Apprach Quantify the benefits f the prpsed preferred slutin. Explain hw the prject will be initiated, planned, executed, and clsed. The gal is t illustrate that the prpsed prject has been carefully cnsidered, aligns with rganizatinal gals and bjectives, and will benefit the rganizatin if executed. At a highlevel, utline the steps invlved in initiating the prject and t plan prject activities. This shuld als list high-level plans t mnitr and cntrl prject resurces, finances, quality, risks, suppliers, cmmunicatins, etc. Include an analysis f hw the implementatin will affect business prcesses, technlgy, jb functins, etc. Outline the apprach that will be taken t create prject deliverables and gain acceptance fr each deliverable prduced and identify activities required t hand ver the final slutin t prject stakehlders. Best Practices The fllwing best practices are recmmended fr Business Case develpment: CPIC + C&A - Cnsider CPIC, C&A, and ther plicies, prcedures, and regulatry requirements fr bth the prpsed prject and the Business Case dcument itself. Cnsider OMB s scring system (OMB Circular A-11 fr IT specific prjects) Start Early - Incrprate infrmatin abut security, accreditatin, privacy, data center, etc Leverage - Lk fr ways t extend the benefits f the prject beynd the immediate prblem being addressed by the prpsed prject. Leveraging the wrk t reslve multiple needs may increase the likelihd f prject spnsrship Alternatives - Identify at least three viable alternatives slutins Enterprise Architecture - Identify if cmpnents f existing enterprise architecture exist that may be leveraged t satisfy any prject requirements UP Versin: 06/30/08 Page 4 f 6

5 Sft Benefits - Include sft benefits in alternatives analysis even if nt directly quantifiable. Sft benefits may include influences n emplyee behavir, increased client satisfactin, etc Vcabulary - Present cncepts in business terms limiting the use f technical jargn and ambiguus acrnyms Review - Present the cmpleted Business Case dcument fr final review, preferably t crssfunctinal team, prir t presenting t the prspective business spnsr Practice Activities Fr sftware develpment prjects the fllwing practice activities are apprpriate: Cntact the CPIC ffice fr assistance Assess the rganizatin Identify the agency s perfrmance gals Define a strategy fr Business Case develpment Identify and evaluate alternative slutins including prspective COTS/GOTS slutins Invlve stakehlders in analyzing all prspective slutins Cnsider enterprise architecture, business prcesses, and security cncerns Cnsider risks and issues Recmmend a preferred slutin using established criteria Outline the prpsed implementatin apprach Finalize the Business Case dcument Present the Business Case dcument t the apprpriate stakehlders fr review prir t final presentatin t prspective spnsr, Business Owner, and eventually gvernance prcess Update the Business Case during the CPIC review prcess t reflect changes/updates Practice Attributes This sectin prvides a list f practice attributes t help prject teams determine the extent t which Business Case impacts their prject. Practice Owner Criteria Estimated Level f Effrt Prerequisites Practice Dependencies Practice Timing in Prject Life Cycle Templates/Tls CDC UP Prject Office NCPHI All prjects regardless f type r size shuld justify expenditure f resurces n any and all prjects. Dcument this infrmatin in the frm f a Business Case is ne valid apprach t ding this. All IT investments require sme frm f Business Case that shuld be cmpleted befre any cntracting effrts. Exhibit 300 Capital Asset Plan and Business Case is required by the Office f Management and Budget fr Majr investments at the Department f Health and Human Services. An Exhibit 300 Business Case must be develped fr all Majr investments. Mderate IT prjects require cmpliance with HHS EPLC. This requires gvernance apprval f Business Needs Statement authrizing the develpment f a Business Case. Business Needs Statement Develpment f a Business Case is required by all prjects prir t receiving funding apprval. This activity is perfrmed in the very early stages f a prject life cycle befre any significant amunt f resurces is expended n any prject effrts. CDC UP Business Needs Statement Template CDC UP Business Case Template Lite CDC UP Business Case Checklist UP Versin: 06/30/08 Page 5 f 6

6 Additinal Infrmatin CPIC Prject Prspectus required fr all Majr, Tactical, and Supprting prjects CPIC Business Case Template required fr all Tactical/Majr prjects CPIC OMB 300 CDC UP CPIC Prcess Guide CDC UP Wrk Breakdwn Structure Practices Guide Key Terms Fllw the link belw t fr definitins f prject management terms and acrnyms used in this dcument. Related Templates/Tls Belw is a list f template(s) related t this practice. Fllw the link belw t dwnlad the dcument(s). CPIC Business Case Template (lcated at CDC UP Business Case Template - LITE CDC UP Business Case Checklist CPIC OMB 300 (lcated at UP Versin: 06/30/08 Page 6 f 6