How many of your projects got started just because someone said they should? When times are tough – and in the UK there is certainly a tightening of belts happening – we need to make sure we are working on the right projects.
The pipeline is so important, and that’s why your business case needs to stand out – so you can secure the funding to get the work going.
Don’t think business cases are necessary? Let me change your mind. Here are 5 reasons why your project needs a business case.
1. A business case shows your project aligns with strategy
We do projects to make a difference and deliver change within the organisation. That change should be aligned to the strategy because then we can be sure it delivers to the overall plan for the business.
Your project is more likely to get funding if you can demonstrate it supports the organisation’s objectives.
2. A business case shows the work is commercially viable
Do the numbers stack up? This is what we ask ourselves in our project office – all the time. However good the idea, the project has to be viable. You need to be able to secure the supplies, equipment or resources at a rate that makes it financially attractive.
Use the business case to show the rationale for make-or-buy decisions, or explain why you have selected a particular supplier.
3. A business case shows the project will be a long-term financial success
Part of the work involved in putting together a business case is the thinking. It means you’ve secured support from various parts of the organisation. It means you’ve done the maths. There is a justification for delivery and you can evidence the thought process that sits behind that.
Generally that means that there is a commercial reason for doing it: for example updating old equipment that supports bringing in new business, or launching something that will sell. You should show consideration for costs along the whole product lifecycle, including decommissioning anything that is no longer required and the cost of managing the asset once it is created.
4. A business case shows you’ve selected the right response to a challenge
Business cases typically make a least a nod to other options that have been considered and rejected. There should be an options appraisal section that looks at a range of solutions and summarises pros and cons.
The document focus on the solution you are recommending, outlining why that’s the best choice. It should be clear why that route forward is the best fit for the organisation’s goals and capacity to deliver.
5. A business case shows the project management structure is in place to support the work
It’s no good securing funding for an idea but not having the first clue about how to implement it. The business case will have a section on implementation plans, covering what resources are needed (and how much they cost) and how long it will take. There should be an outline, high level plan with milestones. There will probably be some high-level risks, assumptions and constraints – the bones of a project initiation document or charter.
Help decision makers understand what they are signing up to and what is required to deliver the change, should they go ahead and approve it.
That’s why you should have a business case. What other reasons can you think of? Let me know in the comments!
