A business case is a document that explains the rationale, benefits, costs, and risks of a proposed initiative and provides clear recommendations to decision makers. A compelling business case helps secure approval, funding, and support for ideas, and aligns teams and stakeholders with goals and expectations. In this article, learn how he creates a compelling business case for a new initiative in six steps.
define the problem
The first step is to identify and define the problem or opportunity your initiative aims to address. It should explain why the current situation is unsatisfactory, what the main causes are, and what the consequences will be if no action is taken. They also need to quantify problems and opportunities in terms of their impact on organizational performance, strategy and goals. This helps establish the urgency and importance of the initiative.
Analyze alternatives
The next step is to explore and evaluate possible solutions and approaches to solving problems and seizing opportunities. The pros and cons of each alternative should be compared, including feasibility, effectiveness, costs, benefits and risks. You should also consider the assumptions, dependencies, and limitations that may affect the outcome of each option. This will help you decide which option is best for you and justify your choice.
suggest a solution
The third step is to present and explain the recommended solution or approach to your effort. It should explain how the solution addresses the problem or opportunity, what the goals and scope of the effort are, and what results and outcomes are expected. It should also provide an outline of the implementation plan, schedule and resources required for the effort. This helps demonstrate the value and feasibility of the solution. Evaluate costs and benefits
The fourth step is to assess and quantify the costs and benefits of your efforts. Both direct and indirect costs and benefits, as well as tangible and intangible costs and benefits must be considered. Time value of money, discount rate and sensitivity analysis should also be considered. It helps you calculate the return on investment (ROI) and net present value (NPV) of your efforts and show how your solution will pay off in the long run.
Evaluate risks and mitigations
The fifth step is to assess and mitigate potential risks and uncertainties that may affect your efforts. The causes and likelihood of risks and their impact on goals, costs, benefits and schedules should be identified. Mitigation strategies and contingency plans should also be proposed to mitigate or eliminate the risks or to deal with them should they occur. This helps minimize negative impacts and maximize positive outcomes of your efforts.
Communicate your business case
The final step is to communicate and present the business case to decision makers and stakeholders. Your message and format should be tailored to your audience, highlighting key points and recommendations. You should also use clear and concise language, visual aids, and supporting evidence to communicate your business case. We also need to anticipate and respond to questions, objections, and feedback that may be received. This will help you persuade and influence decision makers and stakeholders to approve and support your initiative.
