About

The public sector in New Zealand represents approximately 40% of the countries GDP, and as such, is responsible for a large amount of spending.   With the use of public funds comes a responsibility to justify spend, and new projects.

Business Case Development for the Public Sector is a two day course that will equip you with the tools and techniques you need to develop robust feasibility studies, business cases and business plans.  

Key Learning Objectives:
•  Develop concepts from initial idea through to feasibility study, business case and on to business plan
•  Advise third parties about types and level of information required & assess third party funding proposals
•  Learn how to develop robust feasibility studies, business cases, business plans
•  Understand decision points involved in developing each of these documents
•  Understand cost benefit analysis and  key financial concepts
•  Determine the merits of third party proposals

Who should attend?
Anyone in Government, Crown Entities, SOES, Local and Regional Government, NGOs, Academia or consultants who’s role includes:
•  Preparing policy proposals
•  Preparing Cabinet papers with financial and/or economic implications
•  Proposals where additional funding is sought
•  Proposals for regulatory interventions
•  Preparing papers to joint ministers acting under a delegation from Cabinet where approval is being sought from the Minister of Finance
•  Preparing papers to individual ministers
•  Preparing budget initiative proposals submitted as part of the annual Budget process
•  Preparing internal approval papers in accordance with departmental delegations
•  Reporting on a department’s future performance as required by of the Public Finance Act 1989

Training Methodology
This intensive two -day training programme will combine tutorial sessions with practical examples.  All participants will be provided with a details workbook and certificate of completion.

Outline

Key Components of a Public Sector Business Case
•  An introduction to developing a business case
•  Defining the purpose of your business case: What are your objectives?
•  Key differences between feasibility studies and business plans/cases
•  Identifying the information that the decision-makers will need
•  Establishing the framework in which a business case fits
•  What costs and benefits will be included and over what time period?

Opportunity or Problem identification
•  Identifying the opportunity that might be lost
•  Identifying the problem
•  Clarify whether the result is a symptom or cause
•  Understand what outcomes are sought
•  Identify possible solutions
•  Is government intervention appropriate?

Developing Options
•  Consider wide range of options
•  Techniques used to identify options
•  Determining if you need a feasibility study
•  Structure of a feasibility study
•  Benefits of feasibility studies
•  Building a feasibility study including a Benefits Management Plan

Methods used to assess Options
•  The purpose of Cost Benefit Analysis, Multi Criteria Analysis and others
•  An introduction to how they are calculated
•  Advantage and disadvantage of each method of analysis
•  Clarifying the difference between financial and economic analysis
•  Key Terms explained:
   -  Payback period
   -  Internal rate of return (IRR)
   -  Accounting rate of return
   -  Net present value (NPV)
   -  Depreciation
   -  Cost of Capital/WACC

Assessing the options based upon the New Zealand Treasury’s Cost Benefit Analysis Primer
Using the guidelines set down in the New Zealand Treasury Cost Benefit Analysis primer, you will be guided through a CBA of a policy decision
•  Identifying relative costs and benefits
•  Assumptions & Scope
•  Identifying costs and benefits
•  Valuing costs and benefits
•  Analysing Options
•  Cash flows
•  Discounting and discount rates
•  Net Present Value
•  Analysing Risk, uncertainty and intangibles
•  Risk & Uncertainty
•  Optimism Bias
•  Sensitivity & Scenario Analysis
•  Intangibles & Multi Criteria Analysis
•  Selection and presentation

Understanding Finance for Policy Makers
Understand the importance of key pieces of financial information for policy makers.  Learn what it means, how to calculate them, and how to present the information in a policy relevant format including:
•  Understanding the accounting process
•  Analysing and Interpreting Financial Information
•  Involving the Public Finance Act: focusing on outputs and linking outputs to outcomes
•  Meeting the different needs of financial information users: the finance function, types of accountants, financial vs management accounting and the treasury function
•  Cash Flow and Cash Management
•  Planning and Budgetary Control
•  Costing - Essential Tools for Effective Management
•  Project Appraisal - the Investment Decision
•  Selecting the appropriate financial analysis to include in your case

Techniques for preparing budgets and forecasts
•  Accurately identifying unrealistic targets
•  Pinpointing the interplay between budgets and forecasts
•  Successfully integrating forecasting and budgeting as essential tools for measuring performance
•  Incorporating the variables to establish accurate indicators and benchmarks
•  Creating an adaptive performance measurement framework

Presenting the Business Case for a Public Sector Audience
•  Organising information and structuring your business case
•  Communicating what public sector decision-makers want to know in a language they understand
•  Using recommendations and conclusions effectively
•  Should you include an executive summary?
•  Choosing the most important facts and findings for the case summary

Implementation & Evaluation
•  Business case review
•  Measure monitor and manage results against the Benefits Management Plan
•  Lessons learned

Facilitator

Rob Steel, MRAC MRICS, P3O Accredited Practioner Manager – Management Consultancy Services, Opus International Consultants Ltd

Rob is a knowledgeable senior executive with broad international experience in portfolio management, infrastructure investments and public private partnerships (PPPs) in both the public and private sectors.   He has a proven overseas track record in supporting public and private organisations to deliver successful PPPs by using a collaborative leadership style and outstanding relationship management skills to build high performing teams.

He is internationally accredited by the APM Group, on behalf of The Office of Government Commerce (UK), as an accredited Practioner in P3O. P3O is a set of principles, processes and techniques which facilitate effective

portfolio, programme, and project management across an organisation. It incorporates existing good practice like the Gateway Review. Rob is also a guest lecturer at The University of Auckland Business School on asset management in the public and private sector.

Rob Steel is also facilitating:

• PPPs in a Nutshell

In-house Training