Non-regulatory Activity Prioritisation and approval Recap on current situation What questions are we trying to answer How we are going to answer these

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  • Non-regulatory ActivityPrioritisation and approvalRecap on current situationWhat questions are we trying to answerHow we are going to answer these questions?What is our timeline and key milestones?What are our immediate next steps?This paper addresses the following.NB : This paper only relates to the following Directorates :

    Representation and Law Reform, Commercial Services, Strategic Policy

  • Non-regulatory ActivityContext and Key Questions we need to answerThe current situation with regard to budget approval is as followsTo achieve the above, we need to prepare information which clearly answers the following 3 Key QuestionsQuestion 1 - What activities are we planning to spend the money on?Question 2 - Why are these the right activities to be investing in during 2006?Question 3 - What are the top priorities for 2006?Budget submitted to CouncilBudget has been NotedMore clarity is needed on what activities we are investing in and what the top priorities are given what is starting to emerge from NOP research / consultation

  • Non-regulatory ActivityOverall ApproachThe following steps will be taken to answer the Key QuestionsDirectors discuss and agree a common approach and criteriaDirectors then run through the approach with their teamsBU Heads prepare their answers to the Key Questions for their areasDirectors aggregate and prioritise across their Directorate using data from BU Heads highlighting their absolute priorities and proposing any adjustments to their overall portfolio of activities (e.g. accelerate, continue, re-focus, stop, etc.)Directors meet to share their results/recommendations. Prioritisation and checking for overlaps takes place across Directorates takes place - and budget contingency (if reqd) is discussed and agreed.The above information is combined into one document for all three Directorates, to be used during the budget approval process.

  • Non-regulatory ActivityKey MilestonesDirectors meet and agree process/criteria and format/structure/content of end deliverable (i.e. the document we will produce)Directors communicate to their teams what to do and how with facilitation/ support from transition team if requiredBU Heads develop draft answers for Question 1 (What activities) and send to DirectorsDirectors provide feedback on the list of activities if required (e.g. gaps, requests for clarity)BU Heads send completed spreadsheet (answering Questions 1, 2 and 3) to their directorDirector completes prioritisation across their directorate and decides on changes to portfolio of activities (e.g. accelerate, continue, stop, etc.)All Directors meet, share their recommendations/results and prioritise/check for duplication across Directorates. Budget contingency could also be discussed and agreed at this point.Refine, build in supporting functions analysis (e.g. ICT) and prepare for meeting with Philip Hamer

    Mon 6th Tue 7th Wed 8th Thu 9th Fri 10th Sat 11th Sun 12th Mon 13th Tue 14th Wed 15th Thu 16th Cross DirectorateDirectorsBU Heads

  • ProcessApproach for Answering the QuestionsQuestion 1 What activities are we planning to spend money on? Question 2 Are these the right activities to invest in for 2006?Question 3 What are the top priorities for 2006?

  • Each BU leader will start by populating the attached spreadsheet (columns A to L) with information about their current activitiesEach activity will be given a reference number in Column A, to uniquely identify the activity in question (for ease of discussion/tracking)The BU leader would then total up columns H, I and J (the budget and revenue columns) to ensure that they add up to the total budget being requested for the BU in question and its total projected revenueThe BU leader would also do a quick sense check on the staffing columns (K & L) to ensure that the total corresponds to the staff they have available or planned for all of their activitiesThe spreadsheet would be sent by the BU Head to their Director at this stage as a draft for review/commentWe will start by developing a structured list of all activities planned for 2006 in each BUQuestion 1What activities are we planning to spend money on?

    Sheet1

    Basic Activity InformationInformation to enable PrioritisationActivity Recommendations

    No.Name/DescriptionOwner/ SponsorWhy are we doing this? (high level rationale/benefits)What do we need to do to complete this? (high level overview of the work involved)Planned Start DatePlanned End DateBudget already consumed ()Total Cost (inc budget consumed) ()2006 projected revenue (K)HBU Staffing (FTE)Other Staffing (FTE)1Is it the right thing to do?2Do we need to do it? (or will we lose substantial value/opportunity if we don't)3Do we need to do it this year?4Do we need to do it this way?Priority (1 being highest)What is our recommendation for this activity?Please provide more detail on this recommendation

    1 - Accelerate, increase focus or grow scope

    2 - Continue "As Is" or Start New

    3 - Decelerate, or reduce scope/focus

    4 - Stop

    000

    &LNon-Regulatory Budget Process&C&"Arial,Bold Italic"&12The Law Society&RInventory of Current Activities

    Page &P of &N

    1. Is it the right thing to do?The premise behind this question is that although we have a few preliminary findings from the NOP work, we do not yet have a clear strategy. We need to be able to show that we are as sure as we can be that the activity in question is "the right thing to do" and that we won't find ourselves having to undo the work or stop it, once the strategy is defined.

    The Guiding Principles this refers to are :A. Is it aligned with NOP results?C. Are we sure its aligned with future TLS direction?B. Is it visible to/useful to the outside world?

    2. Do we need to do it?Having established that it is the right thing to do, this question asks for a demonstration of the business case. What is the value that this activity generates to offset the cost, or what is the clear/ measurable reason compelling is to undertake this activity?

    The Guiding Principles this refers to are :

    D. Is it a must have?E. What happens if we stop it? (e.g. sunk cost)H. How does it impact other TLS work?I. Are there legal or other commitments?

    3. Do we need to do it now?Having established that there is a clear business case or need to act, this question asks us to demonstrate why action is needed this year, before the future strategy is clear. In the supporting slides, the "Value Protection", "Cost Avoidance" or "Must Do" categories of benefit often point to the need for action now - but it is important to be clear and measurable on the implications of waiting (i.e. what do we lose or risk? when? why? etc.)

    4. Do we need to do it this way ?By this stage, we have established that it [the activity in question] is the right thing to do, that we need to do it - and that we need to do it this year. This question asks us to show that we have looked at various options for undertaking this activity and that the way proposed is the best way (e.g. best balance between cost and benefit, fastest, most visible, best approach to funding, etc.). In addition to the option chosen, options considered and rejected should be mentioned briefly in justifying the option chosen.

    Guiding Principles this refers to are :F. Are there alternative ways of doing it?G. Are there alternative ways of funding it? (e.g. direct service, charitable, etc.)

    Name/DescriptionOne line name of the activity in bold - followed by a very brief description of what this activity is about - and, importantly, what tangible thing/result we will end up with at the end of it.

    Owner/SponsorThe name of the person (at management level) who is driving this activity and overall responsible for its success.

    Why are we doing this?Much more detail is given on this later in the spreadsheet, so keep this to a very brief description/ introduction of why this work has been proposed and/or started in the first place.

    What do we need to do to complete this?In this column, give an indication of the work that will need to be undertaken to complete this activity - i.e. the main things we need to do which are consuming the budget or resource we are requesting for this activity (e.g. hiring new people, changes to systems, publishing, etc.)

    Other StaffingFor the duration of this activity, what will be the average staffing in Full Time Equivalents (FTEs) required from sources outside the HBU (e.g. IT, Business Analysts, etc.). Please indicate what types of resource are needed (e.g. IT)

    Planned Start DateJust type in dd/mm to show the date that the work started or will start on this activity.

    Planned End DateJust type in dd/mm to show the date that you plan to complete work on this activity.

    No.Number your activities sequentially, in order to make it easier to cross reference them and discuss them. (Avoids the need to mention the name of the activity every time you refer to it.)

    HBU StaffingFor the duration of this activity, what will be the average staffing in Full Time Equivalents (FTEs) within the HBU

    2006 Projected RevenueIf it is possible to directly quantify annual revenue, please do so here. You should expand upon this in column O, when providing an overview of benefits.

    Detail on recommendationSummarise why we are making this recommendation - and what the implications will be (e.g. if we are accelerating - what additional budget/resource is needed. If we are decelerating, what will be freed up and how do we propose it will be redeployed?)

    RecommendationClick on the cell you want to edit and select from the "drop down" the category which best describes what you are proposing happens to this activity, based on the prioritisation.

    Priority1 is the highest, 2 is next and so on. No two activities will have the same priority - i.e. they will need to be sequenced in priority order from top to bottom.

    Sheet2

    Sheet3

  • ProcessAnswering the QuestionsQuestion 1 What activities are we planning to spend money on? Question 2 Are these the right activities to invest in for 2006?Question 3 What are the top priorities for 2006?

  • To answer this, we will break the question down into the following parts for each individual activityQuestion 2Are these the right activities to invest in for 2006?Why should this be a priority activity in the 2006 budget?Is it the right thing to do?Do we need to do it? (or will we lose substantial value/ opportunity/revenue if we dont)Do we need to do it this year?Do we need to do it this way?A. Aligned with NOP results?C. Are we sure its aligned with future TLS direction?B. Is it visible to/useful to the outside world?D. Is it a must have?E. What happens if we stop it? (e.g. sunk cost)H. How does it impact other TLS work?I. Are there legal or other commitments??. What is driving this to be done this year? Cant it wait until next year when strategy clearer?F. Are there alternative ways of doing it?G. Are there alternative ways of funding it? (e.g. direct service, charitable, etc.)

  • Each BU leader will start populating columns M to P for each activity they entered into the list/spreadsheet they developed for Question 1In answering the questions in columns M to P, it will be important to be clear and specific. E.g. giving a reason like It will increase TLS profit is too general. We need to be more specific and measurable, for example : This activity will increase annual revenue [derived from what?] from x to y by doing abc and will cut annual costs [incurred in which areas] from a to b by doing xyz**The following slide may prove a useful framework in helping you be complete in terms of your thinking about the types of benefits available in going through the above process..The answers to the questions on the previous slide will be captured as follows.Question 2Are these the right activities to invest in for 2006?** - Not all sources of value can be expressed in monetary terms, but even for non-monetary value we need to be specific in order that relative importance can be assessed. (E.g. if we have a reason like Member Group X is expecting this activity, we should flesh out and say why they are expecting it, when and what will happen if they dont get it.)

  • Question 2Structuring our thinking regarding benefitsValue EnhancementValue ProtectionCost SavingCost AvoidanceMust DoIrrespective of value, this activity is mandatory. There will need to be a clear reason why (e.g. a legal requirement)Revenue or other tangible benefits which this activity will bring into TLS.If we didnt take action on this activity now, our current revenue or other sources of value will be eroded.This activity will reduce our current cost levelsIf we didnt take action now on this activity our future costs would grow higherRemember when making statements about benefits, to be clear and specific by defining the what, how, where and when?Categories of Benefit

  • ProcessAnswering the QuestionsQuestion 1 What activities are we planning to spend money on? Question 2 Are these the right activities to invest in for 2006?Question 3 What are the top priorities for 2006?

  • Each BU head will now seek to sequence all of their activities top to bottom in priority order (1 being the top priority, 2 being the next and so on)Except in the case of mandatory requirements, the highest priority activity will be the one which gives the greatest benefit for the lowest cost.Given the qualitative nature of many of the benefits, we cannot always be entirely scientific and arrive at a hard number of Return on Investment (ROI)...However, the chart on the following slide might help you think about the relative cost and relative benefit of your activities which is what you really need to arrive at their relative priority..Once you have relative priorities, insert priority number against each activity in the spreadsheet - and send the completed spreadsheet back to your Director.By this stage, all columns in the spreadsheet will be complete, except Column Q to S on Priority and Recommendation.Question 3BU Level - What are the top priorities for 2006?

  • Question 3Approach to Gauging PrioritiesHighest PriorityLowest PriorityIncreasing BenefitIncreasing Cost to AchieveFor all activities which pass the Is it the right thing to do test, you could plot out your activities (doesnt have to be too scientific) using post it notes on a chart on the wall to help get a feel for their relative priorities before sequencing them in the spreadsheet.Activity AActivity DActivity BActivity EActivity C

  • If it is helpful, use a chart a little like that on the previous slide and begin to plot out all the activities in the Directorate.In a similar way to that described for each BU, develop your view of the relative priorities of all activities for all BUs in the Directorate (checking for overlaps)Based on the prioritisation, define any consequential changes you would recommend to your overall portfolio of activities. This is the so what which comes out of prioritisation. The chart on the next slide, may be a useful way of thinking about this. Your recommen...