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How To Create A Great Business Case

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




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