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