In order to deliver public value, there is a need for organisations to optimise the use of their scarce resources. This Noetic Knowledge is for people in organisations who make investment decisions and for those who develop business cases. In our experience, not all organisations understand how to apply, and measure, their investment. Since 2005, our framework for managing investments, and particularly our one page Investment Logic Map (see page 24) have been utilised extensively. Numerous organisations have used it to correctly identify their problem, make clear business cases, and develop solutions that can be clearly measured and evaluated. Our Investment Management Self-assessment and related Maturity Ranking (pages 14 and 16), provide organisations with insights as to where they can improve their investment management frameworks.
Investment management is often also known as benefits realisation or benefits management. These terms are often used interchangeably, and they describe an approach that seeks to ensure that the identified benefits for any type of expenditure or investment decision are not only understood but, more importantly, realised. Noetic has adopted the term investment management in the government and non-government sector to promote the capture of public value across the entire investment lifecycle. Investment management encapsulates the investment process from the definition of the business problem through to the harvesting of identified benefits. An effective investment management framework, therefore, provides a structured and rigorous approach that ensures the optimal return for any investment.
Noetic has been at the forefront of developing and applying investment management frameworks for government and nongovernment organisations since 2005. This commenced with the Victorian Government, whose Investment Management Standard is the framework that Victorian Government departments now apply, and which other jurisdictions often reference as good practice. Noetic has since worked with Commonwealth, ACT, NSW and SA Government departments/agencies and a range of not-for-profit organisations in applying our Investment Management Framework to a range of investment proposals and budgeting decisions. Noetic’s Investment Management Framework has been applied at a project, program and whole-of-organisation level, and across a broad range of initiatives ranging from social policy reform and new policy proposals, through to major capital works, and equipment and information and communications technology (ICT) acquisition projects.