The business case focuses on the value that a project or program brings to an organization. Despite the use of the word business, it also applies to non-profit organizations such as government agencies and non-profit organizations, where it is sometimes referred to as a “use case statement.” Most people see the business case process as a form of medieval torture run by accountants. They also question, with some justification, the quality and value of the business case once created. Learn more. The goal of economic analysis is to determine which of the options you present offers the best value for the business, including broader considerations, such as social and environmental impacts. This is important when presenting a case for a project with which the public will interact, such as the development of a product or the construction of a structure. The five-case model, the UK government`s best practice approach to planning spending proposals and enabling effective business decisions, goes beyond the financial dimension. The five-case model is a “thinking” framework to answer three fundamental questions: “Where are we now?” “Where do we want to be?” And: “How do we get there?” The perfectly created business case is able to challenge any path that leads to the best possible solution to a business decision or problem. It also allows the company`s management to make the right choice and take action in the desired direction. It can prove to be a useful guide for the project delivery team as project assessment, design, and implementation become smooth and easy.

In business, resources are limited and opportunities come at a price. In the pursuit of profit and growth, companies always ask themselves a few questions: in which projects should we invest? What products or services should we offer? What is the best use of resources? The answers are not easy and must be backed up by research, facts and figures. To facilitate decision-making, research, facts and data that support specific decisions are presented in the form of a business case. A business case should guide the reader through the problem, consider different solutions, and finally decide which option is best. It therefore needs a clear structure with many titles and subheadings to guide the reader. Second, they show decision-makers that there is rigour behind certain policy options. For example, a business case may show that two IT systems have been analyzed, but that a particular vendor better meets the needs of the business. Business cases show that decisions are based on research and facts, rather than an individual`s opinion. They can help companies justify their spending and protect project managers if things go wrong.

Using a business case to capture and analyze key aspects of a project can quickly resolve issues that may lead to a different approach (or even make the project unfeasible). A business case should convince key decision-makers of the benefits of a certain approach. Over the course of the project, the business case remains at the heart of day-to-day project management decisions. If different options arise, the project manager can refer to the business case to ensure that the option chosen brings the project closer not only to the results, but also to the actual values to which these results are expected to contribute. Finding the right delivery method will ensure that your business case resonates well with decision-makers. Think about how your decision-makers like to be engaged. Does it make sense to send them the business case package first and then present them with the highlights? Or do you want them to see your presentation without any prior knowledge of your business case? Consider here the presentation medium you use. For example, would a short video introduction work better? Do you use PowerPoint alternatively? If you use PowerPoint, how can you do it in a convincing way while providing the right amount of detail? Do you need to practice your presentation before giving it? Making sure all of these are correct is the first step in presenting your business case.

Follow-up after submitting your business case is important, as not everyone may have had time to ask questions or feel comfortable doing so. If possible, follow up one-on-one to ensure stakeholders have the opportunity to voice their concerns privately. Understanding how to present a business case is just as important as knowing how to write a business case. If you follow the steps above, you are more likely to succeed. To present the best possible economic scenario, show that you have evaluated several options (i.e., made a long list), excluded options based on cost and value (i.e., created a shortlist), and then examined in detail what each remaining option offers. The strategic direction section is your chance to show how your project actively contributes to your company`s overall business and strategic plans. In this section, you will describe all the important details of your project. Describe your project and add details about the business problem you want to solve. By ensuring that all projects have an agreed-upon, realistic and approved business case, you can ensure that: The classic definition of project success focuses on achieving results on time and on budget, and on achieving agreed outcomes: the triple constraint of time, cost and scope.

However, over the past decade, there has been growing recognition that producing the required results does not guarantee “success”. The increased focus on results has led businesses – and not-for-profits – to focus on the “value” projects bring to the organizations that commission them. Not just “what you built,” but “what you built justified the investment of time and resources to create it.” With a stuttering global economy, an organization cannot afford to spend limited resources without the certainty that it has used those resources wisely. The business case is a guide and reference point before, during and after a project. Before the project begins, the business case sets out the objective of the project and justifies it. It puts the results of the project in context by clearly stating not only what needs to be done, but also why it is needed. There are a number of operational requirements for each project. For example, did the company have preferred suppliers to work with? Did they have a budget? Did they need a return to be made within a certain time frame? Specify these requirements and how your project will meet them. Now that you know what a business case is, you may find our other helpful tips: For projects in small organizations, it may be obvious that the project aligns with a company`s strategic objectives. For example, a business case for an EFTPOS machine in a restaurant allows customers to pay for their groceries, so it is directly correlated with the company`s cash flow. However, for large organizations, the alignment between a particular project and business goals may not be as clear. In most organizations, budget and people are scarce.

Therefore, it is important that projects are aligned with the strategy or objectives of the organization, that there is a compelling reason to spend time and money on the company. Otherwise, it`s a waste, as it probably means that other, more rewarding projects can`t be launched. The business case is at the heart of the project. It trumps technical objectives that exist only to provide defined value to the organization. Developing and maintaining a sound business case will help ensure that (a) all parties have a common understanding of the value the project is expected to generate; (b) the organization has a clear and ongoing basis for determining whether the project should continue; (c) resources are used efficiently (for good projects); (d) the priorities of the project leader and the organization are clearly defined; and (e) there will be a clear basis (through the benefits assessment plan) for evaluating the success of the project. Working with a business case doesn`t require a business degree, but it does require the project manager to pay more attention to what the organization wants to accomplish through the project. When a business case is planned and managed effectively, it greatly increases the chances of project success – in the minds of all project stakeholders. Every day, hundreds of different projects take place in organizations around the world. Many of these projects conform to the status quo. BAU projects are projects that the company carries out as part of its daily activities. In addition, there are also special projects that are not part of the daily life of an organization, but are nevertheless essential.

It may be necessary to develop a business case for these projects. The benefits section is crucial in a business case. Clearly describe the benefits of the option you have chosen.