Investment logic mapping

How the Investment Management Standard works

The Investment Management Standard (IMS) is a process for applying simple, common-sense ideas and practices that help organisations to direct their resources and achieve the best outcomes from their investments.

See worked examples of the outputs the IMS produces:

The foundation principles of the IMS are:

• The best way to pool knowledge is through an informed discussion that brings together those people with the most knowledge of a subject
• The ‘investment story’ is best depicted on a single page using language and concepts that can be understood by a layperson
• Each investment should have clearly defined benefits that align with the outcomes the organisation is seeking.

The IMS involves a series of facilitated workshops which step participants through a ‘line of enquiry’ and helps decision-makers determine whether:

• there is a real, evidence-based problem that needs to be addressed, now and by this government
• the benefits of solving the problem are of high value to the organisation and the community
• the benefits’ KPIs are meaningful, measurable and attributable to the investment and are worth tracking and reporting
• the way the problem will be addressed is strategic, feasible, and innovative
• the solution is likely to be delivered within time and budget constraints
• the solution can be applied flexibly to manage uncertainty and adapt to changing conditions and demand.

The investment management standard can support a range of functions that organisations undertake to improve the way they operate and manage new investments. The options below are a useful mix of standard tasks the workshops can support.

Further information is available on our Investment Management Standard page

Seven strategic planning needs and their IMS workshop pathways

• Monitor organisational outcomes
• Refocus organisation
• Prioritise investment proposals
• Develop a policy
• Evaluate a program
• Shape a new investment
• Benefit delivery

Core investment management standard (IMS) workshops

Problem definition workshop

Successful investments are made as a considered reaction to an identified or emerging problem. This workshop will:

• define the problem that needs addressing
• validate that the problem is real
• specify the benefits that will result from addressing the problem.

The output of this workshop is the first version of an Investment Logic Map (ILM) with the problems and benefits defined.

Benefit definition workshop

Detailed consideration and validation of benefits and KPIs are vital to understanding the value of an investment. This workshop will test the strength of the argument and influence the design and focus of the response and solution needed to deliver the benefits and KPIs. This workshop will:

• identify the KPIs, measures, targets and timelines that the investment will need to deliver
• specify how the delivery of the benefits will be measured and reported. 

The output of this workshop is a Benefit Map. From there, you can develop a full Benefit Management Plan (BMP), which needs input from the people in your organisation who understand the underlying data.

Response definition workshop

This workshop provides a structured forum to examine the full range of responses that could address the identified problem and deliver the desired benefits. This workshop will:

• explore the interventions that could deliver the expected benefits and KPIs
• formulate and evaluate a mix of response options
• consider interventions and options that focus on managing demand, improving productivity and changing supply
• assess response options and select the preferred response for the expected investment outcomes.

The output of this workshop is a Response Options Analysis Report (ROAR).

Solution definition workshop

This final workshop gets down to the ‘what’ of the investment. Unless the preferred response is very simple and straightforward, there are likely several ways the solution could be implemented. This workshop will:

• consider any policies that may impact this investment and identify any action or areas to investigate further (as the project progresses)
• confirm the preferred response option (following cost and timeframe assessment)
• identify and evaluate the changes and assets required to implement the preferred response option and deliver the benefits
• confirm the circumstances where the preferred response option may be inadequate or inappropriate
• identify cost range, timeframe for project delivery, timeframe for benefit delivery, key risks and uncertainties, dis-benefits and critical interdependencies.

The output of this workshop is an Investment Concept Brief (ICB).