How can we make sure the right infrastructure projects and options are selected to break ground, benefiting our communities now and for generations to come?
To stimulate the economy post COVID-19, the New Zealand Government announced a task force to review applications for infrastructure projects that will be shovel ready within the next six months.
Historically, there has been an aversion to rapidly implementing projects based only on high level scope without the longer term benefits identified. To overcome this, organisations are able to make use of short form business cases, enabling informed decision-making, which mitigate some concerns and enable the quick execution of projects. While this process doesn’t exclude any risk, it enables us to intelligently assess a project while measuring the impact of delayed decision-making or inaction.
To achieve rapid project execution, short form business cases assess existing evidence of challenges and identify strategic options for a project. The focussed documents used for investment decisions in the Tourism Infrastructure Fund and the Provincial Growth Fund are examples of a business case approach that could be further developed to address this need. Several key elements within the approach need to be addressed in order to understand the context, scale and measurable success of the project being assessed. These include the below.
Traditional business cases can easily run to hundreds of pages, however using a short form business case approach allows us to articulate the key elements above in 10-20 pages. From this assessment we are able to provide a recommendation on the best next steps.
Planning for the Karamu area in Hawke’s Bay using funding from the Provincial Growth Fund is an example of short form business case in action. This area, to the east of Hastings City, contains some of the highest value soils in the country and has numerous competing demands for land use, as well as proposals for development of industrial land and for a centre of excellence for high value food processing. The use of a short form business case in this instance enabled rapid decision-making, and the development of a master plan that considered these demands.
In the tourism area, funding from the Tourism Infrastructure Fund enabled critical water and wastewater infrastructure needs for the communities of Ohakune and Raetihi to be addressed. These small communities have a high demand for services driven by the large numbers of tourist visitors, but do not have the financial resources necessary for adequate investment. The short form business case approach enabled us to rapidly measure requirements in order to meet growing tourism numbers and achieve a positive outcome.
The need for short form project justification is likely to be required beyond the current environment given the desire by the government to improve project execution and ensure we are meeting targets quicker. Shane Jones recently commented on an EMA webinar that it is imperative we start to simplify regulatory hurdles and processes, more specifically around the Resource Management Act and empower agencies to self-consent on low risk projects.
Adapting this approach will ensure the efficient delivery of the right projects now, and into the future.
Meet David
David Walker is the Market Development Lead for our Advisory Business in New Zealand. David drives market strategy for his team, providing leadership and project direction across a variety of sectors and clients.
Meet Paul
Paul Desborough is an Executive Advisor for New Zealand. With a background in both the public and private sectors, Paul has extensive experience in business analysis, strategic decision-making and policy development.
