Appendix 6: The decisionmaker’s checklist 1. Is it clear what the 5. Have the benefits 9. Has a reasonable 13. Consistent with the problem is that needs that will result from spread of interventions preferred response to be addressed both fixing the problem been been identified and option, has a – the cause and effect? adequately defined? packaged into sensible reasonable spread of response options? project options been analysed? Yes Partial No Yes Partial No Yes Partial No Yes Partial No 2. Is there sufficient 6. Are the benefits of 10. Is there evidence to 14. Is the recommended evidence to confirm high value to the demonstrate the solution the best value both the cause and government? response options are for money and have effect of the problem? feasible and can opportunities for respond to future building flexibility been uncertainty? identified and analysed? Yes Partial No Yes Partial No Yes Partial No Yes Partial No 3. Does the problem 7. Are the KPIs SMART 11. Were the options 15. Is the solution need to be addressed and will they provide evaluated fairly to specified clearly and now and by this strong evidence that reflect their ability to fully and have government? the benefits have been respond to the problem, opportunities for adding delivered? deliver the benefits? value been identified and costed? (all business changes and assets) Yes Partial No Yes Partial No Yes Partial No Yes Partial No 4. Does the defined 8. Have the sources of 12. Is the preferred 16. Can the solution problem capture its full uncertainty and key response option the really be delivered extent/scope including dependencies critical to most effective way to (cost, risk, sources of future benefit delivery been address the problem uncertainties, uncertainty? considered? and deliver the timeframes etc.)? benefits? Yes Partial No Yes Partial No Yes Partial No Yes Partial No Appendix 7: Real options and procurement approaches Ability of method to manage a real options approach Procurement model Pros Cons
Appendix 6: The decisionmaker’s checklist 1. Is it clear what the problem is that needs to be addressed – both the cause and effect? 5. Have the benefits that will result from fixing the problem been adequately defined? 9. Has a reasonable spread of interventions been identified and packaged into sensible response options? 13. Consistent with the preferred response option, has a reasonable spread of project options been analysed? Yes Partial No Yes Partial No Yes Partial No Yes Partial No 2. Is there sufficient evidence to confirm both the cause and effect of the problem? 6. Are the benefits of high value to the government? 10. Is there evidence to demonstrate the response options are feasible and can respond to future uncertainty? 14. Is the recommended solution the best value for money and have opportunities for building flexibility been identified and analysed? Yes Partial No Yes Partial No Yes Partial No Yes Partial No 3. Does the problem need to be addressed now and by this government? 7. Are the KPIs SMART and will they provide strong evidence that the benefits have been delivered? 11. Were the options evaluated fairly to reflect their ability to respond to the problem, deliver the benefits? 15. Is the solution specified clearly and fully and have opportunities for adding value been identified and costed? (all business changes and assets) Yes Partial No Yes Partial No Yes Partial No Yes Partial No 4. Does the defined problem capture its full extent/scope including sources of future uncertainty? 8. Have the sources of uncertainty and key dependencies critical to benefit delivery been considered? 12. Is the preferred response option the most effective way to address the problem and deliver the benefits? 16. Can the solution really be delivered (cost, risk, uncertainties, timeframes etc.)? Yes Partial No Yes Partial No Yes Partial No Yes Partial No Appendix 7: Real options and procurement approaches Procurement model Ability of method to manage a real options approach Pros Cons