A business case documents the argument to proceed with a course of action, and usually it will have financial implications for the organisation. Many people struggle to write a good business case, producing a document that doesn’t contain all of the information required, doesn’t put forward a strong case and doesn’t provide appropriate recommendations for the decision maker.
If you're faced with the task of writing a business case, it’s important that you do your research first. Understand the options available for the required outcome and then get your structure bedded down before you start writing. Here’s my suggested structure:
Background
Remember, depending on the strategic implications or financial impact, most business cases will be approved at a senior level of the business. The approver will want to understand your value proposition so it’s important to describe why your project is important and what the main deliverables and benefits are. Include a brief overview of how the project fits with strategic business goals.
Drivers for Change
What is driving this business case? Usually this will be a problem that needs to be solved – for example, a key driver for change could be the need to automate a manual process to avoid hiring new staff, to improve your level of customer service or to increase online sales. Whatever the driver is, make sure your audience understands it clearly – both in terms of what the problem is and why it needs to be solved.
Deliverables
Here you’ll list the deliverables for the project. It’s very important that you include detailed information, including the impact to all areas of the business who will be responsible for implementing the change (for example, the IT department, legal, sales, customer service representatives etc). If the project requires resource from the business in order to implement it, this needs to be clearly stated.
Scope
What is in scope and out of scope? Make this REALLY clear. If you don’t clearly define what is in the scope of the project you’ll be susceptible to scope creep, which invariably means you’ll need more funding. Do include a section detailing what is not in scope so there is no confusion later on about what is being delivered. It may seem onerous when you’re doing it but trust me, a little effort here can save you a lot of time further down the track.
Options
Here you’ll include the options you’ve reviewed to fix the problem. Always include a “do nothing” option as this will be a real consideration for the executive team. List all of the possible options to the problem and then show the pros and cons of each. What are the options that you have for fixing this problem? It’s important in this section that you demonstrate you have considered all options, you’ve discussed widely within the business and that you have internal support.
Costs & Financial Benefit
Quantify as many of the costs as possible for each of the options you’ve considered. Sometimes it’s not possible to include confirmed costs for every option but you’ll need to include some solid estimates and show how those estimates were derived. Include not just the funding costs but also the cost to the business in terms of time to deliver. You should also include information on the financial benefit – if you’re asking the business to fund a $500,000 project, make sure you demonstrate how long it will take to recoup the investment. This doesn’t necessarily mean you need to show increased revenue – the financial benefit can be reduced staff, retained customers, lower cost of service or a host of other things.
Risks
Clearly articulate the risks of the project. What happens if the project deliverables are late? What happens if technology becomes outdated or the business doesn’t embrace the change? It’s worth discussing risks with all of the business stakeholders so you can show you have really evaluated all of the risks and how they can be mitigated.
Monitoring of Results
Once the project has been implemented, how will the business measure the success? The only way to do this is by monitoring the results closely. Include a description of how the results will be monitored, what reporting will be prepared, how often it will be circulated and who will receive it.
Recommendations
Here’s where you show the clear reason for your recommended option. The evidence you have provided in the earlier parts of the business case should enable the executive to make a decision based on sound advice.
Need Help?
Remember, it’s your reputation on the line when you write a business case, so make sure you’ve provided the right information with the right level of detail. A good business case isn’t hard to develop as long as you are willing to do your research, consult with the business and put in the time.
Need a hand with your business case? I’ve written loads of successful business cases, so if you need some help, give me a call on 0400 514579 or email pauline@worddynamics.com.au