bus cases

GK Transformation have significant experience in putting together Business cases for a diverse range of commercial and public sector organisations, including major PLCs, Government Departments, NHS Trusts, Local Authorities & Government Agencies, which have addressed such issues as;

  • Business Direction and Organisational Strategy
  • Service Development / New Ventures / Income Generation
  • Business location / Site rationalisation / Estate Strategy
  • Core Business and Out-Sourcing
  • Capital Investment and Equipment Strategies

We follow a successful formula to ensure Business Case approval which is demonstrated by our professional presentation of our Business Cases which will typically include the following;

EXECUTIVE SUMMARY

  • Synopsis of current service provision
  • Trends and demand changes
  • Summary of options
  • Benefits for patients and the estate of the preferred option
  • The case for investment
  • Statement of Purchaser support

STRATEGIC CONTEXT

  • Outline of current service provision - size, purpose, function, costs, resource utilisation, patient throughput, accessibility, clinical and other services available, performance against contract and quality targets
  • Past and future trends - demand forecasting based on demography, epidemiology and social changes
  • Competitive position of the NHS Trust
  • Capital assets required to meet future demand
  • S.W.O.T. analysis
  • The case for change

OPTION APPRAISAL

  • Capital Investment objectives and criteria for selection
  • Long list of options
  • Appraisal of benefits - eg, increased volumes of services, new services, improved clinical outcomes, improved financial performance, improved value for money, improved quality of service delivery eg, environment or waiting times
  • Appraisal of costs - using “base year”, capital and revenue
  • Discounted capital and revenue cash flows
  • Assessment of risks and sensitivity of options to these risks
  • Tabulated summary of investment options, weighted factor comparison     

THE PREFERRED OPTION

  • Statement of best option
  • Key factors for superiority
  • Precise nature of benefits
  • Sensitivity of costs to variations in assumptions
  • Identification of key risks
  • If the preferred option is IM&T based, the Detailed Statement of Need
  • Indication of Commissioner support

FINANCIAL IMPLICATIONS

  • Impact of costs (including capital charges and net effect on prices)
  • Year on year cash flow
  • Impact on NHS Trust balance sheet
  • Sales of assets
  • Financing arrangements

A Professional Approach

Within our team of Consultants we have a number of specific decision theorists who are skilled in bringing about consensus around the most sensible business strategy.  GK Transformation Business Case projects are led by Senior Consultants (usually former CEOs) with support from both financial (Chartered Accountants) and service (industry/sector specific) consultants. Typically, our approach to a Business Case and/or Option Appraisal exercise will involve the following elements;

  • identification of options
  • analysis of practicalities of each option
  • modelling & simulation
  • involvement of the client team in the process
  • interactive decision forum using the latest computerised models
  • communications strategy for informing others of the decision
  • assistance with implementation of preferred option
  • full risk analysis