A business case is a document that outlines the reasoning and justification for undertaking a particular project, program, or initiative. It’s essentially a persuasive argument presented to stakeholders to convince them of the project’s value.
What is the Purpose of a Business Case?
- Secure Approval: The primary purpose is to gain buy-in from decision-makers by demonstrating the project’s potential benefits and justifying the investment required.
- Improve Planning: The process of creating a business case helps to clarify project goals, identify potential risks and challenges, and develop a plan to address them.
What is in a Business Case?
- Executive Summary: A concise overview of the project, its goals, and its potential impact.
- Problem Statement: Clearly defines the issue or opportunity the project aims to address.
- Proposed Solution: Describes the project in detail, including its scope, methodology, and timeline.
- Benefits and Value Proposition: Articulates the expected positive outcomes of the project, both financial and non-financial. This is a critical part of convincing stakeholders of the project’s worth.
- Costs and Risks: Provides a transparent breakdown of the project’s costs, including potential risks and mitigation strategies.
- Alternatives Considered: Demonstrates that other options were explored and explains why the proposed project is the best course of action.
Two Common Types of Business Cases
- Feasibility Study: A more in-depth analysis used for complex projects, often involving market research, financial projections, and detailed risk assessments.
- Project Proposal: A concise document typically used for smaller projects, outlining the project’s goals, timeline, and budget.
A strong business case is a crucial element in securing approval for a project and ensuring its success. It should be clear, concise, and persuasive, effectively communicating the project’s value proposition and justifying the investment required.