MindMap - Developing a Business Case [Please Download for better view]
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The document outlines a framework for evaluating business alternatives based on financial and non-financial metrics, such as payback period, NPV, and ROI. It emphasizes the importance of a comprehensive analysis, including identifying potential risks, evaluating stakeholder inputs, and documenting pros and cons for each option. Additionally, it suggests creating a clear action plan for implementation, focusing on actionable milestones and adapting strategies based on data and feedback.
MindMap - Developing a Business Case [Please Download for better view]
- 1. Executives would like to kow financial implications You can ask finance department for help Evaluating alternatives against the metrics Payback period NPV -Net Present Value ROI Not all alternaties will have similar impact to financial results of implentation Framework should also be able to help you document nonfinancial outcomes E.g. Impact on sales Creating a framework for comparing alternatives Each alternatives can have variable assumptions, inputs, processes, and methods resulting into variable outputs Resource requirements may differ as well between each alternative Analyze the Alternatives After you have evaluated different alternatives its time to log the pros and cons of each Pros and cons table List the costs List the benefits of expected additional revenue Point out cost savings to be gained Identify whe you expect to see the costs and anticipated revenues List the impact on other corporate metrics, such as customer satisfsction, customer retention, and operational efficiency Steps for analyzing alternaties List any unquantifiable benefits and costs Understanding of the issue at hand Conduct your business impact anaysis Identifying the problem or opportunity Organize the information into table for comparison Statement that defines the benefits Once you have documented the pros and cons of each alternative, its time to select the best possible solution Strong opportunity statement Developing an opportunity statement Be sure to document problem as an opportunity You may have attached the financial metrics to each alternatives, making your task easy and influencing the decision making Dont define your proposal or idea as preferred solution Identify most relevant objective you hope to achieve Cost savings or increased sales Identifying your business objectives Impacts to kpi You need to have a clear strategy to make a choice regardless of availability of all data /metrics Selecting the best solution Define the opportunity Consider even if hard to measure eg. Customer satisfaction Which alternative will generate highest revenue in shortest time Choose 3 or 4 objectives . Narrow down Would the new solution give company comletitive advantage Prioritizing your business objectives Whose support would you need Would it increase the NPS score Who would be affected if your ideas are put into action Post selection of the best fit solution, identify all possible risks to you and theorganization before committing to it Increase profitability Improve customer satisfaction Reduce churn Risk about implementation of your idea Assign metrics to your objectives Increase RCM Weighing the risk Reduce employee turnover Risks to your peers and your organization Any other consequences Brainstorm full set of objectives Make the choice and assess the risk Brainstorm ideas with stakeholders Determine personal and organizational tolerence level of the risk Stakeholders can be inside or outside to organization Sensitivity analysis Generating list of options Deciding how to mitigate the risk Record the results of brainstorming session Mitigating the risk helps you modify your recommended solution and its variables Dont judge the outcomes Goal is to generate as many feasible options as possible If 2 of 4 alternatives provides same or similar benefits then you might want to compare their risks Its about selling your idea Determining whether to modify your recommended course of action Identify and talk to stakeholders They need to feel involved and early Be prepared for less desirable alternatives Gatering inputs from stake holders Clearly define negative impact and missed opportunities due to resource allocation issues or challenges They may provide ideas and inputs you may not have thought Open mindedness Selecting a preliminary recommendation Identify key stakeholders and decision makers Identify the Alternatives Document the rational for your recommendation Ask for inputs fom stakeholders early in the process Incorporate feedback into your case Ask for inputs from trusted advisors Steps for choosing final recommendation Consider the risks Look for the ways to mitigate the risks Steps for building support for your BC Revisit your original recommendations Developing a business case Collect benchmarks on other organizations The preliminary milestone Individuals responsibility for each milestone Create multiple delivery fomats for your case Resources required to reach each milestone Combine any alternatives that could reasonsbly be implemented together Eliminate elaborate, high-risk options Favor the easy to implement solution over complex and difficult Dates when company will see intended benefits Understanding the purpose of an implementation plan Impacts on company's budget and expense Narrowing your choices Increase in revenue Your plan to showcase the success of your plan and its results Go with your intuition Depend more on your hunches and professional judgement Identify major steps in your action plan, these are your milestones Sales revenue per customer Cost of each alternative Include notes about any risk Customer satisfaction Implementation Customer retention Pilot Repeat sales Employee satisfaction Testing List your milestones Identifying the information you need Training Turnover Go live Cost of turnover Phases - if any Obtain historical or typical data Post launch feedback loop back into the system for future modifications You will want to forecast change in that data Remember... The information that you want wont be always in one place Establish explicit chckpoints with stakeholders and decision makers You will have to do digging for the data for your business case metrics Review the plan, execution style, progress and suggest any midcourse corrections Communicate with decision makers about your progress Check with HR, finance, data warehouse, local database, and any other source within and outside the organization Gather data and estimate tme frame Craft a plan forimplementing your idea Expedite the implementation (decision makers may ask for) Be prepared with backup plan $$$$$$$$$ Industry journals, internet, consulting firms with expertise Organizations such as forrester, gartner, etc... Human resources Collecting the data Type of resources needed at each level of project Identify resources you will need to carry out your course of action Be sure to define the categories of data to be able to capture it easily List of questions... Lots of questions, that you are seeking an answer to New budget or current budget ... Where will the $$$$ come from Docuent your assumptions and dsta sources Who is responsible/accountable for each milestone Make sure estimates are realistic How long will it take to start realizing benefits of your initiative Ramp up and ramp down of resources towards the beginning and end of the initiative Clarify who will do what to implement your alternative Who is accountable for intended resukts and benefits of each milestone Setting a time frame Indicating expected payoff ROI realization, breakeven period Indicate when will the alternative generate intended benefits Documenting your estimates and assumptions Make sure you are logging all the data/info needed to track and report the results of implementation (good and bad) Projections help you sell your idea to decision makers Positive Results help you gain trust of decision makers and strengthen your partnership Track you results Periodically and timely reporting of progress and results help everyone see throught the progress transparently and participate in critical points of milestones for any amendments Learning and understanding what went wrong ... Lessons learnt are important as well Understanding your audience Using visuals to present your case Presentations with screen shots, charts, numbers, milestones, progress report, issue list etc... Are critical Live demo of working solution and its review is critical as well Slide 1: the opportunity statement Slide 2: 2-3 alternativesyou considered Communicate your case Slide 3: a summary of costs and benefits you considered Sample presentation steps Slide 4: your initial recommendation and why you chose it Slide 5: the risks associated with this recommendation and how you plan to mitigate Slide 6: the high level milestones Slide 7: reiterate on why opportunity is important and how it adds to the bottomline