what is investment Logic mapping and why do it?
We recently ticked over another financial year, with the passing of 30 June 2019. At this time, public sector program managers turn their mind to planning for FY2020/21, when funding for a number of government programs is due to expire. There is also the potential to seek funding for new and emerging priorities.
Between July and December, budget planning processes kick into full swing, considering a range of investments that could be meade.
To give yourself the best chance of success, it is best to start the investment planing process as early as possible.
One good way to do this is to undertake an Investment Logic Mapping (ILM) exercise. But wait, what is an ILM and why do we need it?
An ILM is a structured facilitation process, developed and refined by DTF (Vic) over the past 15 years. It is pinpoints the major causes and effects of problems and promotes a stakeholder-driven approach to solutions definition. In Victoria, it is mandatory for business cases that are seeking funding to include an ILM, so it is a great first step.
The ILM process results in a simple one-page output that visually distils the underlying problems to be addressed, the benefits to be achieved (along with KPIs), a suite of responses and the preferred solution. It is part of DTF's Investment Management Standard (available here)- the suite of tools and templates to help public sector leaders to plan and deliver significant investments.
Completing an ILM process has other benefits:
it draws key stakeholders together to establish a shared understanding of the program
it enables evidence sources to be identified, both to understand the baseline and to target improvements
it provides a structured approach to agreeing options that are most closely targeted to desired benefits
it considers factors such as risks, disbenefits, interdependencies, cost and timeframe in the options analysis process.
The ILM process involves between one and four facilitated workshops with key stakeholders, facilitated by a DTF-accredited facilitator. Workshops ask the questions below and achieve the outputs shown below.
Charlie Tulloch from Policy Performance has been an accredited ILM facilitator since November 2016 and has expertise and experience leading over 40 ILM workshops for diverse topics/sectors to support business cases in Victoria, Queensland, ACT and WA.
The sooner you start your ILM process, the more time you will have to build the most compelling case for change in the business case, and the clearer your investment case will be when you bump into the Minister or your senior executive in the corridor.
Contact Charlie should you need support to get your ILM process started and secure the ongoing benefits of the program for your program beneficiaries and related stakeholders.