Eight Steps to Structuring a Business Case Successfully
You have come to the realization that your organization has the opportunity to work better, smarter and in a more efficient way. However; now you have to convince the decision makers and Steering Committee to release the funds for a project. In many organizations this decision relies on a business case presentation.
Before you can write a business case, an investigation is required to ensure that you understand the issues that your organization faces, and the possible solutions to these.
To create the most effective business cases, follow these steps:
- Identify the issues that need to be solved.
- Show the possible solution options, the level that the issues can be solved and the impact of “doing nothing”.
- Clearly define the scope of the proposed solution and how this aligns with the overall business strategy.
- Prove the benefits that will be achieved both financially and non-financially.
- Demonstrate an achievable high-level plan with milestones.
- Document the expected resource requirements for the duration of the project and how these may impact BAU.
- Illustrate the cost/ benefit and ROI for all elements of the project. Include a standard discount factor if the payback period is over several years.
- Outline any dependencies and risks.
It is important that you address milestones that reflect the critical success factors of the project and decision points at which the business can determine whether it should continue with the project.
When evaluating the issues facing the business, be sure to consider the following:
- Management of risk
- Opportunity for manual error
- Efficiency and speed of your decision-making processes
- Consistency and accuracy of the data you are using
- Reliance on the expertise of Excel modelers rather than analysts
- Flexibility and capability of your reporting solution
- What your competitors are doing
A successful business case is most effectively built out with an experienced partner. Click here to check out a case study where Hipercept helped one of the largest investment management firms in London refine their business case.
Make sure you check out the Benefits to Consider When Writing a Business Case here.