How to write an effective business case
Module 1 - What is the Business Case?
Why should a business case be written?
The most obvious reason for putting together a business case is to justify the resources and capital investment necessary to bring a change project to fruition. However, this implies that the business case is simply a financial document. While all business cases should include financial justification, it should not be the only purpose of the document.
The business case is the one place where all relevant facts are documented and linked together into a cohesive story. This story tells people about the what, when, where, how and why.
· Why is the project needed (issues & opportunities)?
· How will the effort solve the issues or opportunities facing the organization?
· What is the recommended solution(s)?
· How does the solution address the issues or opportunities (benefits)?
· What will happen to the business if the BPR effort is not undertaken (the do nothing scenario)?
· When will the solutions be deployed
· How much money, people, and time will be needed to deliver the solution and realize the benefits?
What are the three roles of a business case?
The writing of the business case forces the team to sit back and reflect on all of the work they have so diligently completed. It is far too easy for the team to continue to plug away toward the end result and fail to document the work they've already accomplished. This is especially true during the concept and design stages of any project. Therefore, the business case serves as a wake-up call to the team causing them to capture the knowledge they've developed about how the business will function both with and without the final solution.
The second role of the business case is to verify that the solution substantiates or meets the needs of the business, and is the vehicle for receiving funding and approval to move forward. It provides a vehicle for the team to step back and subjectively review their facts and assumptions. In addition, it is vital that the team document what would happen to the business if the project is not undertaken. This base case or "do nothing" scenario is the foundation upon which all benefits from the effort are derived. By documenting everything together in one story, it is easy to link the issues to the solution and the benefit, and identify where the business would be without the project. The development of the overall business case simplifies the development of the financial justification, and will usually identify holes or problems with the solution. Moreover, you now have a way to measure your success. This analysis also is useful for your leadership team to prioritize this project against the many other initiatives in the business that may require capital investment.
The final important role that the business case plays is to provide a consistent message to many different audiences. It is a high level view of the entire project and enables all organizations affected by the effort (customers, management, operations, research & development, service, sales, accounting, finance, etc.) to be knowledgeable about the project.
Who should write the business case?
The business case should be viewed as a story -- your team's story. Therefore, everyone on the team should contribute to its development. This does not mean that everyone will write a section of the business case. In fact, only one or two people should actually write the final document. However, all of the information used in the business case should come from team members themselves.
The business case writers should be team members who have an overall understanding of the entire project and can synthesize the multiple and varied plans into one document. Keeping the actual writers of the case to a minimum ensures a consistent style throughout the document.
When should the business case be written?
A project lifecycle typically provides some break points where a business case should be completed. The figure below shows the steps leading up to the writing of the business case (see design phase).
Every milestone in the activity of the team should result in a contribution to the business case. For example, at the conclusion of the project planning phase, all of the key project information should be documented in the business case (description, business issues, scope, objectives, etc.).
Overall goals
While one of your primary goals may be to get funding, your chances of success will be greater if you keep the following goals in mind as well:
* Make it interesting; remember someone will have to read it.
* Keep it clear and concise.
* Minimize jargon and conjecture.
* Communicate all facts as part of the overall story - you've done your homework, here is the chance to prove it.
* Provide the reader with a picture or vision of the end state.
* Demonstrate the value the project brings to the organization, customer and financial bottom line of the company.
When your team is done, you should throw a business case party. The entire team should feel a wonderful sense of accomplishment, after all, the business case contains a complete record of the great work the team has completed and demonstrates the value of the work yet to be done.
The benefits obtained by your team by writing the business case are many, but at a minimum they will have gained:
* Organization of thoughts, activities and knowledge
* An objective review of the ideas and facts of the project
* The ability to identify holes, inconsistencies or weaknesses in the effort
* An improved ability to communicate the purpose of the project
* Financial justification for their effort
* A great sense of accomplishment
(KILDE: http://www.prosci.com/t1.htm)
Why should a business case be written?
The most obvious reason for putting together a business case is to justify the resources and capital investment necessary to bring a change project to fruition. However, this implies that the business case is simply a financial document. While all business cases should include financial justification, it should not be the only purpose of the document.
The business case is the one place where all relevant facts are documented and linked together into a cohesive story. This story tells people about the what, when, where, how and why.
· Why is the project needed (issues & opportunities)?
· How will the effort solve the issues or opportunities facing the organization?
· What is the recommended solution(s)?
· How does the solution address the issues or opportunities (benefits)?
· What will happen to the business if the BPR effort is not undertaken (the do nothing scenario)?
· When will the solutions be deployed
· How much money, people, and time will be needed to deliver the solution and realize the benefits?
What are the three roles of a business case?
The writing of the business case forces the team to sit back and reflect on all of the work they have so diligently completed. It is far too easy for the team to continue to plug away toward the end result and fail to document the work they've already accomplished. This is especially true during the concept and design stages of any project. Therefore, the business case serves as a wake-up call to the team causing them to capture the knowledge they've developed about how the business will function both with and without the final solution.
The second role of the business case is to verify that the solution substantiates or meets the needs of the business, and is the vehicle for receiving funding and approval to move forward. It provides a vehicle for the team to step back and subjectively review their facts and assumptions. In addition, it is vital that the team document what would happen to the business if the project is not undertaken. This base case or "do nothing" scenario is the foundation upon which all benefits from the effort are derived. By documenting everything together in one story, it is easy to link the issues to the solution and the benefit, and identify where the business would be without the project. The development of the overall business case simplifies the development of the financial justification, and will usually identify holes or problems with the solution. Moreover, you now have a way to measure your success. This analysis also is useful for your leadership team to prioritize this project against the many other initiatives in the business that may require capital investment.
The final important role that the business case plays is to provide a consistent message to many different audiences. It is a high level view of the entire project and enables all organizations affected by the effort (customers, management, operations, research & development, service, sales, accounting, finance, etc.) to be knowledgeable about the project.
Who should write the business case?
The business case should be viewed as a story -- your team's story. Therefore, everyone on the team should contribute to its development. This does not mean that everyone will write a section of the business case. In fact, only one or two people should actually write the final document. However, all of the information used in the business case should come from team members themselves.
The business case writers should be team members who have an overall understanding of the entire project and can synthesize the multiple and varied plans into one document. Keeping the actual writers of the case to a minimum ensures a consistent style throughout the document.
When should the business case be written?
A project lifecycle typically provides some break points where a business case should be completed. The figure below shows the steps leading up to the writing of the business case (see design phase).
Every milestone in the activity of the team should result in a contribution to the business case. For example, at the conclusion of the project planning phase, all of the key project information should be documented in the business case (description, business issues, scope, objectives, etc.).Overall goals
While one of your primary goals may be to get funding, your chances of success will be greater if you keep the following goals in mind as well:
* Make it interesting; remember someone will have to read it.
* Keep it clear and concise.
* Minimize jargon and conjecture.
* Communicate all facts as part of the overall story - you've done your homework, here is the chance to prove it.
* Provide the reader with a picture or vision of the end state.
* Demonstrate the value the project brings to the organization, customer and financial bottom line of the company.
When your team is done, you should throw a business case party. The entire team should feel a wonderful sense of accomplishment, after all, the business case contains a complete record of the great work the team has completed and demonstrates the value of the work yet to be done.
The benefits obtained by your team by writing the business case are many, but at a minimum they will have gained:
* Organization of thoughts, activities and knowledge
* An objective review of the ideas and facts of the project
* The ability to identify holes, inconsistencies or weaknesses in the effort
* An improved ability to communicate the purpose of the project
* Financial justification for their effort
* A great sense of accomplishment
(KILDE: http://www.prosci.com/t1.htm)
No comments:
Post a Comment