Informed Decision Making
Good investment decisions require strong evidence, detailed analysis, and good judgement. We can help you avoid the most fundamental mistake of decision-making, which is devising a solution for a problem that has not been fully defined.
We combine the structures of proven methodologies such as Investment Logic Mapping (ILM) and the Better Business Case (BBC) framework to first define the problem(s) and only then work on finding solutions. These tools combined with our wider analysis capabilities and deep experience will help you make sound and highly transparent decisions. The majority of our team are accredited BBC professionals and our senior staff are train din ILM facilitation. We also make a point of developing the capabilities of our clients in BBC and ILM during the course of a project, enabling them to understand and apply this approach in future activities.
The main services we provide in this area include:
For further information on these services contact:
Investment Logic Mapping (ILM)
In the words of the NZ Treasury, “Investment Logic Mapping (ILM) is a technique to ensure that robust discussion and thinking is done up-front, resulting in a sound problem definition, before solutions are identified and before any investment decision is made.” Our experienced facilitators can help your team test and confirm the merits of any investment decision, however big or small. Our ILM trained facilitators include Edward Guy, Neil Cook and Ben Smith.
Specific ways we can help you:
- Facilitating sessions with key stakeholders to identify problems and benefits; and identify and evaluate options.
- Documenting the ILM and integrating it with other processes (e.g. BBCs).
Business Cases
Strong business cases that can withstand the toughest scrutiny are increasingly becoming the norm for the public and private sectors. In many cases organisations have a pre-conceived solution in mind which fails appropriate scrutiny. A business case should not be a means to justify a pre-determined end, but rather a robust and methodical analysis of the issues facing your organisation and evaluation of the best possible options for resolving those issues. Rationale has well developed skills in this area, particularly in complex optioneering including the use of longlist, shortlist, MCA facilitated evaluation. Applying these tools to manage complex analysis and evaluation ensures the preferred solution is transparent and evidence-based. In summary, our team of accredited Better Business Case practitioners can work with you to develop a coherent and compelling case for your investment decision.
Specific ways we can help you:
- Facilitation sessions with key stakeholders.
- Management of complex optioneering and Multi Criteria Analysis (MCA).
- Drafting the strategic, commercial, economic, financial, and management cases.
- Conducting peer reviews.
- Managing delivery of business cases at any level or stage.
Financial Modelling
Financial modelling provides a powerful insight into the impacts of financial decisions on your organisation’s bottom line. Rationale uses financial modelling to inform a range of analysis and decision-making activities. We have a proven approach to developing and operating financial models to provide one off or ongoing analysis of investment proposals.
Specific ways we can help you:
- Developing models that help you make decisions over the short, medium and long term.
- Redefining or interrogating models to test your internal planning.
- Monetising and allocation of benefits.
Financial and Funding Analysis
An important part of making an informed investment decision is understanding your funding mechanisms and the beneficiaries of the investment.
This includes assessing and analysing the:
- Cost and benefit allocation.
- Multi Party Contributions.
- Development Contributions to infrastructure.
- Rating models.
- Private infrastructure funding arrangements
Risk Analysis
Risk analysis is a key component of any strategy or investment decision. We work with our clients to take a pragmatic approach to risk management to ensure the risks are understood and managed by the group most capable of addressing them.
Specific ways we can help you:
- Developing risk management frameworks.
- Facilitating a comprehensive organisational risk review across business operations, projects, internal processes and external factors and relationships.
- Developing risk governance and reporting structures.
- Developing an approach to measuring and profiling risk appetite and culture, developing appropriate benchmarking.