Business Case
Business case
'Business case: Information that describes the justification for setting up and continuing a project. It provides the reasons (and answers the question 'why'?) for the project...
reasons for creating a business case
1. It is a vehicle for gaining approval to move forward, and to receive appropriate funding and resource commitments
Challenges in Business Case
1. working out what the costs will be (not missing something important!), and appropriately 'sizing' them.
reasons for creating a business case
2. It provides a consistent message to many different audiences - it is a major tool in communicating what is happening/ intended to happen and why
Challenges in Business Case
2. defining realistic benefits, and providing some method of quantification and measurement
reasons for creating a business case
3. It sets down what is to be achieved and thereby provides the target from which to measure success against
Challenges in Business Case
3. identifying intangible elements (costs and benefits), such as 'better staff morale' and presenting them accordingly
Challenges in Business Case
4. defining sensible timing of incurring costs and 'realising' benefits
Business case
A business case 'documents the justification for a project for executive decision makers and provides a mechanism to evaluate the success of a project at its completion'
Business case
A business case is '...a key document...where the analysts or consultants present their findings and propose a course of action for senior management to consider'
Business case
A business case is 'an explanation as to why the organisation has decided to go forward with a project'
Initial Business Case
Clear, simple document justifying the resources to perform measurement and analysis. Outcome: Authority ('sign off') and rationale to perform investigation work
Contents of Business Case
Introduction Executive summary Current situation & Future vision Options considered Cost & Benefits Impact assessment Risk assessment Recommendation Appendices
Formal Business Case
It makes sense that the amount of time and effort put into a business case should be related to: - the cost/size of the project under consideration - the investment required - the level of risk involved Many organisations state a set of rules as to when a formal business case is required.
Detail Business Case
Reasoned analysis, leading to a substantiated decision Outcome: Decision as to solution to pursue and authority to proceed with it
Business case
The business case presents a detailed explanation of the purpose and objectives for the project. It explains the approach and implications for the business along with the costs, benefits and risks associated with the project and the impacts on [key stakeholders]. [It] contains all the information necessary for [executives] to make a decision.