financial-modeling

name	financial-modeling
scope	co-consult
description	Guides the Strategy Analyst through building a full business case for consulting recommendations. Covers ROI analysis, NPV/IRR/Payback Period calculation, scenario sensitivity analysis, and explicitly includes change management cost category. Designed to work iteratively with technical-feasibility (max 2 loops).
version	1.0.0
last_reviewed	"2026-06-13T00:00:00.000Z"
status	active
owner	strategy-analyst
prerequisites	technical-feasibility, org-readiness-assessment

Context

Use in Phase 1-2 after technical-feasibility and org-readiness-assessment have produced outputs. Converts complexity grades and risk factors into a complete financial business case for client decision-making.

When to Use

• Building investment justification for a recommended solution
• Comparing financial impact of multiple strategic options
• Presenting business case to C-level stakeholders

Execution Steps

1. Gather Inputs:
   • Solution definition (from Engagement Leader brief)
   • technical-feasibility outputs: complexity grade, risk cost range lookup values, preconditions
   • org-readiness-assessment outputs: change management cost estimates, training requirements
2. Build Cost Model:
   • Implementation costs (use technical-feasibility complexity grade as basis)
   • Change management costs (explicitly include — sourced from org-readiness-assessment):
     • Training and capability building
     • Change agent resourcing
     • Schedule delay buffer for resistance
   • Ongoing operational costs (year 1-3)
   • Risk contingency (apply technical-feasibility cost range percentages)
3. Build Benefit Model:
   • Revenue uplift (quantified where possible)
   • Cost reduction / efficiency gains
   • Risk mitigation value
4. Financial Metrics: Calculate NPV, IRR, Payback Period, ROI
5. Scenario Analysis:
   • Base case, optimistic, pessimistic
   • Sensitivity table: top 3 variables that most impact NPV
6. Iteration Protocol:
   • Entry condition: Budget constraint confirmed mismatched with cost model
   • Max iterations: 2 loops with technical-feasibility
   • Exit condition: Cost range fits client budget OR Engagement Leader escalates to client after loop 2
7. Output: Pass complete business case to executive-presentation

Output Format

• Business Case Document: Executive Summary, Investment Overview, Cost Breakdown (incl. change management), Benefit Projections, NPV/IRR/Payback, Scenario Analysis, Recommendation
• Excel-compatible data table for sensitivity analysis

Related Skills

• technical-feasibility
• org-readiness-assessment
• insight-synthesis
• executive-presentation