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