London Ventures. Outline Business Case template & guidelines
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1 London Ventures Outline Business Case template & guidelines
2 Guidance on how to create a strong case Key Component Examples Big Idea 1. Describe the As Is including any strategic or policy context 2. What are the drivers for change? 3. Describe your approach to implementing a solution 4. What is the evidence to support this? Proposed commercial venture 1. Describe the role each partner will undertake in the venture 2. Describe the proposed charging mechanisms and how the venture cash will flow 3. Provide a summary of the indicative levels of investment and revenue costs Set up costs 4. What will be the commercial difference in this relationship and how will it ensure the right outcomes? 1. What are the indicative, quantified set up costs? 2. Who will these costs fall too and what are the assumptions and evidence base? Benefits Risks & mitigation 3. What are the potential negative cost implications? 1. What are the indicative financially quantified benefits and who are they attributed to? 2. What are the indicative, quantified wider benefits such as social/economic, and what is the evidence base to support this? 1. What are the key potential risks to delivery and the proposed mitigation? 2. What are the interdependencies to ensure successful delivery? 2
3 Proposed Template The big idea What is the venture? Describe here the current situation, i.e. The As Is What is the problem? faced and who are the stakeholders on which it impacts Drivers for change: Why change? What is the strategic fit? Is this aligned to any external strategic or policy change? Does it provide any additional opportunities? 3
4 Proposed Template The commercial venture - overview What is the commercial venture? What is the relationship between partners? Describe the role each partner will undertake in the venture What will be the commercial difference in this relationship and how will it ensure the right outcomes Role in phase 1 of this venture Role in the wider venture Involved in commercial agreement: London Ventures <partner> EY Involved in wider venture: Local Authorities Capital Ambition Board 4
5 Proposed Template The commercial venture financial proposition Describe the proposed charging mechanisms and how the venture cash will flow Provide a summary of the indicative levels of investment and revenue costs Where will be the source of income/revenue? 5
6 Proposed Template Proposed venture What is the high level programme of activities required to undertake this? What will be the key outputs? High-level timeline to deliver with milestones High Level Timeline Example Activity Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Project set up Consultation User testing Transition Recruitment Training Mobilise & Go Live Evidence to support Where has this been done before? How has this been done before and does it provide scalability? 6
7 Template guidelines Set -up Costs Indicative quantification of costs What are the assumptions? Who needs to make this initial investment? What are the implications? Organisation Set up costs ( ) Ongoing costs ( ) Annual net-benefits ( ) Staff Cash Staff Cash Partner 1 Partner 2 Local Authority 7
8 Template guidelines Benefits Benefit Description Hypothesis Indicative quantified financial benefits Reduction in care packages Increased use of universal services due to focused brokerage function means a potential reduction in the use of specialist services, framework services and block contracts Indicative quantified wider benefits 10% of XXM Establishes qualified social worker role by ensuring professional expertise is utilised at the right point, delivering higher throughput and better crisis management with a reduction in waiting lists of XX. Evidence base to support Pilot delivered in XX Academic research by XX shows XX 8
9 Template guidelines Risks & Mitigation Risk Impact Likelihood Mitigation Due to XX, there is a risk that XX, resulting in XX H L E.g. Wide and robust stakeholder engagement to ensure clear definition of roles, buy in, ownership & accountability 9
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