The method features traditional IT-investment analysis methods such as Return on Investment (ROI), Benefit-Cost Ratio (BCR), Payback, Cash flow, Internal and Internal Rate of Return (IRR). It combines with a cost-benefit methodology recognised to evaluate also more intangible benefits. The Reliable Business Case method combined with the RBC Excel Tool’s advantages gives great benefits to the decision and benefits realisation process.
This might be the most innovative RBC feature: the method drives you to increase reliability and encourage you to include all benefits - and cost - even if you cannot give reliable figures. The report explain clearly what is reliable and what is not, and decision makers can either take a decision from that, or extend the scope of the analysis. Starting with a QuickAnalysis and adding iterative improvements, you always are ensured to use a precise amount of effort and time for the analysis.
And remember: PRINCE2 and other project management models, and most other programme governance frameworks, usually lack the governance of the 'business change' process. Processes and tools described in 'Benefits Management' methodology are not there. E.g. PRINCE2 defines some about it, but if you look twice it is really just limited to 'make follow-ups'. That shows ignorance to the fact business benefits arise when people - staff, customers, patients, citizens - had to behave in new ways to make benefits arise. It does not pay attention to something that is serious and critical. Behavioural change is one of the most difficult things we know - everybody on diet or quitting smoking knows that - and it tells us about ignorance what a proactive business change governance is all about. RBC method and the tool fill the absence perfectly. Just add, adapt, and assimilate.
Reliability categories tell what to expect for real
Separation of identified benefits and cost into categories of different reliability - Reliable, Visible, and Assumed - makes calculation more reliable. A fourth category actually also is used - 'Not Estimated' - to capture the complete picture. Such issues can affect the results just as much as the other categories, they are just not estimated. Rising reliability often demands interaction with management, to gain acceptance to objectives, and to identify measurable KPIs. Thanks to the Assumed category, you dare to estimate the value of also more difficult intangible benefits and cost. You simply present to the decision makers a more complete picture of the possibilities. Usually, you can shorten the decision process too.
Free RBC Excel ToolTM
The free RBC Excel tool can be downloaded from this site and it generates Cash flow, Payback, ROI, IRR, Cost-Benefit, and much more. Charts and tables together with outstanding design offer all aspects of information needed to take reliable decisions. The RBC method describes how you document the analysis systematically in the RBC Excel Tool. You link your calculation together with risk, source of information, dependencies, etc.
Reliable Business Case Excel Tool’s Impact & Follow-up report
The tool provides great support for follow-ups. You instantly know which of your benefits and cost underperform or overperform. You find in a table all benefits and all cost, and their impact on the results.
IF you start with a first quick PreAnalysis, you use the same table to decide what benefits and cost should be more throughfully considerated. Typically, a benefit or cost of high impact combined with an Assumed category would indicate importance to improve it. You combine the PreAnalysis with what is called a ImprovementPhase, the latter to focuse on what really improve the results. This means, you use your hours extreamly efficient; The PreAnalysis tells what is important, and the ImprovmentPhase focuses only on what is needed to make your case reliable.
Compare up to six alternatives to one another with the tool, and see the differences between e.g. options, or the best choice between different offered solutions. You can compare similar choices with e.g. alternative functions in IT solution, different maintenance, or ownership models. Or, you can compare different strategic alternatives, such as if your best choice is to improve your IT department, or to outsource it.
Expenditure screening full lifetime cost
Your decision considers capital expenses, operational expenses, business change expenses, internal and external expenses - all over a full lifecycle period. With suitable internal controlling, you can gain control over operational cost, staffing, sourcing, and investment strategies.
Systematic guideline how to turn business benefits into tangible value
Most business case analyses suffer from poor methodology, poor experience by the analyst, and poor policy support from the organisation. Additionally, the massive subjectivity in most analyses combined with these flaws multiplies the risk of failure. The Reliable Business Case method’s guidelines improve all this. You get guidelines how to estimate the value from benefits systematically.
You will find all benefits, both intangible and tangible, and you turn business benefits into money you know will occur for real. Your analysts or consultants will carry out the estimation in a systematic way and stakeholders and decision makers will know what figures they have in front of them.
Also applies to cost calculation
Similarly, the method gives guideline how to calculate the expenses and what performance indicators to be used. The image above shows how risky it is to compare a 'common unspecified ROI value' between different investments, projects, or analyses. The image shows the result difference if you do not have a defined calculation time span (two or three years) and if you if you include a certain operational expenditure or not. Simply, you can make whatever result you like to have most of the times you do a business case. And you cannot use or trust any other analysis and results, if you do not know what makes up the figures in detail.
In a benefits realisation context
The method offers a natural linkage to the benefits realisation, i.e. what happens after the IT system is implemented. If you have, or want to implement, a Benefits Realisation framework and process into your organisation, RBC method and RBC Excel ToolTM should be your choice to combine with that. The category concept drives the business case process further than usual toward benefits realisation.
More, in detail after detail, you find that RBC Method offer unique support and conformity to Benefits Management strategies, and if you today use PRINCE2, P3M3, or another program management concepts, Reliable Business Case will fit like a glove.