Making a business case - the 10 essential sections that you need to cover
3 likes924 views
The document outlines the essential components of a business case, which presents findings and proposed actions to senior management. It emphasizes the need for a structured approach, involving option identification, cost-benefit analysis, impact assessment, and risk evaluation. Additionally, it highlights that a business case should be tailored to the audience's preferences and can evolve over time as new information becomes available.
Making a business case - the 10 essential sections that you need to cover
- 1. Making a Business Case 10 sections to cover in your business case
- 2. Making a business and financial case •A business case is where the analysts or consultants present their findings and propose a course of actions for senior managementWhat? •Because senior management needs to make decisions based on facts, i.e. the benefits and costsWhy? •The audience varies, from internal decision makers (e.g. senior management) to external stakeholders (e.g. regulators, trade unions)Whom? •How a business case should be presented differs in organisations. Some like large, weighty documents with full analyses all the supporting data; others like a short, sharp presentation of the main points •We have attached our best practice business case template for reference How? •The initial business case often results from a feasibility study •However, a business case is a living document. It is revisited and revalidated as the project proceeds and more facts are discovered When? •The starting point is to identify and explore options…Where
- 3. Developing options to take to business case Identify possible options Shortlist & evaluate options Take options forward to business case Operating model change in: 1. Marketing 2. Sourcing & Procurement 3. Order Fulfilment 4. Finance 5. Customer Contact 6. Digital Channel Management 1. S&C solution, plus Venda 2. S&C solution, plus Venda, SAP Finance 3. S&C solution, plus Venda, SAP Finance, BO & Salesforce Operating model change Business process change “Quick wins” IT options BusinessoptionsIToptions • Confirmed to take to business case: 1. Centralise (Tallents House) Finance transactional and accounting activities into Bolton • Others:TBC 1. S&C solution
- 4. •Sets the scene, defines the scope and objectives of the change under consideration1. Introduction •Executive summary2. Executive summary •Re-cap on the current situation and where the problems and opportunities lie 3. Description of current situation •Describe the options considered •Explain why recommendations are rejected (briefly) or taken forward (in more detail) 4. Options considered •Identify where costs will be incurred and where benefits can be expected •Tangible and intangible costs and benefits need to be considered •Immediate and long-term costs and •Avoided costs need to be identified and included as well •Realistic assessment of the realisation of benefits •Estimate a value on intangible elements such as ‘improved customer satisfaction’ and ‘better staff morale’ if possible 5. Analysis of costs and benefits What a best practice business case should include? (1/2)
- 5. •For each of the options recommended, impact on the organisation needs to be analysed •Example of such impacts: Organisation structure, Inter-function relationship, working practice, management style, recruitment policy, staff training and appraisal, supplier relationship, etc. 6. Impact analysis •The financial aspects , i.e. the tangible costs and benefits, are contrasted in order to see whether and when the project will pay for itself •Organisations typical have a standard appraisal methods, e.g. payback, IRR, NPV, or a combination of the above 7. Investment appraisal •Potential risks and suitable available countermeasures should be identified to strengthen the business8. Risk analysis •Make clear the decision required from senior management •Provide an outline of main tasks and envisaged timescale9. Recommendations •Supporting data and documentation10. Appendices What a best practice business case should include? (2/2)