A business case puts a proposed investment decision into a strategic context and provides the information necessary to make an informed decision about whether to proceed with the investment and in what form. It is also the basis against which continued funding requirements will be compared and evaluated.
The case document should provide (A) the context for an investment decision, (B) a description of viable options, (C) an analysis of these options and (D) a recommended decision.
The recommendation describes the proposed investment and all of its characteristics, such as benefits, costs, risks, time frame and so forth.
The business case forms the baseline for reviews and decisions to continue, modify or terminate the investment. The business case would thus be used to review and revalidate the investment at each scheduled project gate and whenever there is a significant change to the context, project or business function. The business case would be revisited and considered anew if the context changed materially during the course of the project.
A business case contains two or three main parts, depending on the perspective - (1) establishing a strategic context, (2) analysis and recommendation, (3) management and capacity. If the initiative is funded internally, then all three parts apply as you would need to consider funding. If you are developing a business case as a vendor providing services, then only the first two are relevant, the third being outside your scope of influence.
Here is the outline structure
Executives don't have the time or patience to go through a document. They would much rather have you put this into 5 slides and give you precisely 5 minutes to state your case. Then if you have handled their objections successfully, you are on your way.
We will take a look at some sample business cases in another blog.
The case document should provide (A) the context for an investment decision, (B) a description of viable options, (C) an analysis of these options and (D) a recommended decision.
The recommendation describes the proposed investment and all of its characteristics, such as benefits, costs, risks, time frame and so forth.
The business case forms the baseline for reviews and decisions to continue, modify or terminate the investment. The business case would thus be used to review and revalidate the investment at each scheduled project gate and whenever there is a significant change to the context, project or business function. The business case would be revisited and considered anew if the context changed materially during the course of the project.
A business case contains two or three main parts, depending on the perspective - (1) establishing a strategic context, (2) analysis and recommendation, (3) management and capacity. If the initiative is funded internally, then all three parts apply as you would need to consider funding. If you are developing a business case as a vendor providing services, then only the first two are relevant, the third being outside your scope of influence.
Here is the outline structure
- Strategic Context
- Business Need
- Desired Outcomes
- Analysis and Recommendation
- Preliminary Analysis of Options
- Viable Options
- Justification & Recommendation (with timelines and resource allocations)
- Managing the Investment
- Governance and oversight
- Program and outcomes management
- Program risks & performance measures
So that's that!
Executives don't have the time or patience to go through a document. They would much rather have you put this into 5 slides and give you precisely 5 minutes to state your case. Then if you have handled their objections successfully, you are on your way.
We will take a look at some sample business cases in another blog.
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