| Follow a systematic step by step process to produce | | | | - How will it impact on employees |
| a winning business case and get the outcome you | | | | - How will it contribute to environmental issues |
| desire. | | | | - How will it contribute to social responsibilities |
| As a manager or leader in an organisation, chances | | | | In making the financial case, think about: |
| are that you will find yourself in the position sooner or | | | | - How long the investment will take to get pay back, |
| later when you are asked to produce a business case. | | | | usually measured in years. |
| It might be for example to: | | | | - The projected percentage return on the investment, |
| - Secure investment for a new piece of equipment | | | | usually measured as a percentage. Some businesses |
| - Get support for an increase in your staffing | | | | have a minimum percentage return on investment so |
| establishment | | | | find this out |
| - Get support for a new product or service | | | | - The impact on profitability, as a result of increased |
| For many managers and leaders, the thought of | | | | sales revenue and/or cost reduction |
| producing a business case fills them with worry. By | | | | In doing this it is best to produce summary tables in the |
| following a systematic step by step process set out | | | | main body of the business case and the detail in an |
| below, you can produce a winning business case and | | | | appendix |
| get the outcome you desire. | | | | Produce a benefits realisation plan |
| State the current position | | | | One of the areas often neglected is the benefits |
| The first thing you need to do is provide a brief | | | | realisation area. You may be familiar with this. A case |
| summary of the current position for the area being | | | | is made promising the world but it never materialises. |
| addressed. By far the most effective way is to focus | | | | Clearly state the benefits that will be delivered and |
| on the problems being created or the opportunities | | | | how you will measure achievement. Make sure that |
| missed. For example: | | | | your benefits are very specific and measurable. For |
| · If bidding for new equipment you might talk about | | | | example, increase customer satisfaction scores by |
| the capacity constraints or efficiency gains | | | | 10% compared to 2006 by the end of December |
| · If bidding for new staff you might focus on the | | | | 2007 is specific. Increase customer satisfaction is not |
| revenue your competitors have that is low hanging | | | | specific or measurable. |
| fruit and could easily come to you with some staff | | | | Produce a risk management plan |
| investment | | | | The business case is based on the best information |
| · If it is a new product or service, you can focus | | | | that you can access at the time. Chances are that |
| on the gap in the offerings and how what you are | | | | some risks will show up. Include a simple risk matrix |
| proposing will fill it | | | | showing the: |
| The underlying message here is to create a case why | | | | - Risk |
| the current position is less than ideal. | | | | - Proposed handling strategy |
| Make your case | | | | - Estimated financial impact if the risk materialises |
| There are two main things to consider in making your | | | | This will demonstrate to any decision makers that not |
| case. | | | | only are you thinking about downside risks but also |
| 1. Operational or business case | | | | pro-actively managing them. |
| 1. Financial case | | | | Develop a performance monitoring framework |
| It is essential that your case is robust in both of these | | | | It is all too easy to fall into the trap of taking your eye |
| areas; otherwise you run the risk of getting shot down | | | | of the ball when you get the green light for the financial |
| in flames. | | | | support. Avoid this at all costs. Put in place a strong |
| When making the operational case, really focus on the | | | | framework for monitoring progress and producing any |
| benefits. Questions to ask your self include: | | | | reports that are required. At the end of the day, your |
| - How will this impact on our sales volumes | | | | ability to secure investment is down to you being able |
| - How will it contribute to processing efficiencies | | | | to present a well structured and thought out case. Use |
| - How will it give an edge over competitors | | | | this simple step by step approach to give you a flying |
| - How will it impact on client/customer satisfaction | | | | start. |