Select Preferred Solution (Step 10 of 15)
Select a single option to finalize and propose based on a full analysis of costs, benefits, risk and ROI.
Completing the blueprint, cost/benefits/risk analysis and ROI analysis can help you create a thorough, data-driven framework to help you evaluate the high level merits, costs, and risks of several options.
Done well, the process will help you clearly make an informed strategic decision on your recommended approach. Again, using the example of addressing third-party vendor risk, our populated data driven matrix will look something like this:
Option A: Do Nothing
- Overview: We currently staff 2 full time equivalents to vet third parties in North America and Europe. These individuals are part of the contracts and purchasing department.
- Cost: $250,000 per year to operate.
- Benefits: Status quo.
- Risks: Current capability not familiar with new geographies; too slow; prone to error.
- Time to Implement: None.
OPTION B - Develop Internal Capability
- Overview: Implement new processes and technology to enable new in-house capability to vet third parties around the globe.
- Cost: $1MM project costs and $500,000 per year to operate.
- Benefits: support new growth initiatives and innovation; develops scalable capability in house at best cost.
- Risks: difficulting in attracting talent to vet third parties; project risk to get capability up and running before 4th quarter.
- Time to Implement: 9 months.
OPTION C - Outsource Third-Party Vetting Process
- Overview: Outsource entire third-party vetting process to vendor.
- Cost: $250,000 project cost; and $1MM per year to operate
- Benefits: Leverage talent of outside firm; low startup costs and timeframe.
- Risks: Lack of in-house capability; ongoing operational costs as we scale to new geographies.
- Time to Implement: 6 months.
RECOMMENDATION Option B.
Pick Only One
After that comprehensive analysis, you now have the detailed information, facts and data-drive insights to make an informed decision.
While it may be tempting to believe that presenting multiple options for approval will improve the chances of “something” getting approved (or, you would like to reveal how comprehensive, well-researched or thorough you were in coming up with the proposal), sharing more than one proposal is rarely successful.
Instead, now, your time and effort should be focused on developing the business case for a SINGLE option that you genuinely believe in. This can’t be stressed enough. Too many business cases crumble when they are presented as a menu of options with a “lil bit of this and a lil bit of that” or a laundry list of possibilities.
As an executive, you’ve been hired and are trusted for your judgement and analysis, not for your ability to present all possible options so that others can decide.