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Download PDF Version of the current Business Case template
There are many books and articles on Corporate Performance Management (CPM) that speak of the advantages that accrue to organisations when adopting this management tool and how CPM should be implemented. However, there are very few that show how the business case for CPM should be structured and how the Return on Investment (ROI) can be calculated.
To provide a resource for all people struggling to create the business case for CPM, we have created, with help from a range of other contributors, a document for a fictitious company that can be used as a template for organisations faced with this problem
We sought suggestions in the following areas:
1. What specific section headings are required in a CPM business case?
2. What are the financial justifications for CPM?
Financial
justifications must be real i.e. there needs to be reference to a published
document that is in the public domain. The documents should be the result of a
proper academic study or reflect real results that have occurred in practice.
We are proposing that the template should contain a list of real examples of revenue growth or cost benefits that can be directly attributed to CPM and are rigorous enough to be accepted for inclusion in an organisation's business case. An example of such an item might be:
"In an academic study by XYZ Consultants Inc. of 100 organisations that have implemented a Balanced Scorecard a cost saving of 15% in spend on strategic initiatives was achieved on average."
An organisation using the template would then be able to apply the 15% figure to their current spend on strategic initiatives as an expected saving.
We will attempt to adjust the fictitious case study to include any activities where quantifiable benefits can be identified.
3. What are the advantages of CPM implementation that are real but are not quantifiable?
Financial justifications must be real i.e. there needs to be reference to a published document that is in the public domain. The documents should be the result of a proper academic study or reflect real results that have occurred in practice.
We are proposing that the template should contain a list of non-quantifiable benefits that have been achieved in practice. An example of such an item might be:
"XYZ Inc. found in their staff attitude surveys that the implementation of the Balanced Scorecard improved their staff satisfaction with their employers by 30%"
In this example it would be difficult to calculate what the financial benefit of such an improvement might be but it would certainly a valid item to include in a business case.
4. Any other suggestions as to how this template could be improved in terms of its general content and style.
A copy of the template is freely available, as a download in Acrobat pdf format, to all.
If any organisation would be interested in sponsoring some continuing research into future versions of this template please contact us through enquiries@mecservices.co.uk or telephone us on +44 (0) 1502 512814
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