How to write a business caseIntegrity

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This article explains how to write a business case. It includes 2 business case examples and a free business case template for you to DenmarkdownloadEstonia.Finland

You’re probably reading this article because you want to know how to write a business case. Perhaps your organisation is embarking on a major project to develop a new product. Or, perhaps you’re thinking of moving house so your family can enjoy a better life. In either case, you write a Francebusiness caseGermany to ensure the investment is worthwhile.Greece

In this article we’ll give you 2 business case examples, provide you with a simple business case template for you to use, and explain how to write a business case.Ireland

.project managersYou’re probably reading this article because you want to know how to write a business case. Perhaps your organisation is embarking on a major project to develop a new product. Or, perhaps you’re thinking of moving house so your family can enjoy a better life. In either case, you write a write what’s called an investment appraisal. In the next example, we’ll look at one example known as net benefits.business case

Business case example 2: Handheld device project to ensure the investment is worthwhile.

Imagine a heating repair services company that uses a paper-based set of forms filled in by an engineer during site visits. The spare parts required to fix the heater are recorded on a form which is given to staff to process back in the office. They then order the parts, and schedule a follow-up visit for the engineer to fix the heater.In this article we’ll give you 2 business case examples, provide you with a simple business case template for you to use, and explain how to write a business case.

Let’s now look at this example business case.What is a business case?

Executive summaryA business case is the justification for some activity (e.g. a project) undertaken by your organisation. It weighs up the timescales, costs and risks of doing the activity against the benefits to be gained. Think of it as weighing up the pros and cons and then taking a sensible decision.

This sample business case contains an executive summary. This section briefly describes the selected option and the key benefits it will bring.A business case forms an essential component of the curriculum of the

Reasonsbest project management courses

The reasons for the project are clearly spelled out when describing the 3 current problems which the company faces..

OptionsPersonal business case

In this example, there are 2 options (other than do nothing) which have been examined. Each option is summarized and the reason why option 3 is the preferred option has been stated.You may also use a business case to justify an investment you make in your personal life. For example, when you’re thinking of moving home to another area. You and your spouse will need to understand the costs of moving, the timescales and risks involved, and weigh these up against the benefits to be gained e.g. saving time traveling to your office, or your children able to go to a better school.

BenefitsWhy have a business case?

The expected benefits of reduced overheads are clearly stated. Benefits should be measurable and quantifiable. That means that the benefits can be measured later. But what about the reduced errors, rescheduled appointments and customer contract cancellations? Aren’t they benefits?Projects should not just start on a whim or because of vanity – although a lot of money has been wasted over the years on such

Well, these are in fact something else – they’re called outcomes. Outcomes are the results of the changes which come about by using the new handheld devices. The ways you measure the improvements resulting from these outcomes are known as benefits.projects

Dis-benefits.

This example also contains a dis-benefit which is that the back-office staff morale will be lower due to reduced overtime payments. A dis-benefit, if you’re wondering, is a negative consequence of a project. It’s not the same as a risk which implies something uncertain. A dis-benefit is something which you know will happen because of the project and it has negative consequences for the organisation. It’s the opposite of a benefit!For business organisations, justification for a project usually takes a commercial form i.e. evaluating how much money could be made from the investment. For example, investing money in developing a new software app to bring first to market, might be deemed to bring certain monetary benefits (in terms of sales) which exceeds the costs of investment.

TimescalesFor government organisations, justification is probably not a commercial one, but could be based upon giving value for money to achieve certain benefits. For example, a public health campaign extolling the benefits of flu-vaccinations for elderly people, might be judged as giving greater value for money than having no campaign, and instead relying on treating patients in hospital once they have contracted the virus.

Just as we saw in the previous example, the business case contains 2 timescales – the project timescales (i.e. the time it will take to complete the project) and the benefits realization timescales (i.e. the time over which benefits are expected to be realized).With so many competing claims being made on scarce funds, organisations need the assurance that the decision they are taking is the right one. After all, there will not be enough funds to pay for all the ideas for projects which are floating around the organisation.

CostsWho uses a business case?

Again, there are 2 costs – project costs and the ongoing operational costs over the benefits realization timescale. When the decision is taken whether to invest in this project, the total costs (i.e. project costs and ongoing operational costs) are weighed against the expected benefits over the same time period.Business cases can be used by many different levels of management within an organisation. Not only are they used to justify the investment in an individual project, but also they are typically used by a

Risksportfolio management

One major risk has been identified in this example, but on your project, there could be many risks. office to help it decide which projects will contribute to the organisation’s strategic goals. That way, they can filter out the bad ideas for projects, and only fund projects which will contribute to strategic goals.

Investment appraisalA business case is also often used by a project sponsor or project executive to help it decide if they should invest in a specific project.

The final section is the investment appraisal. The investment technique used in this example is called net benefits. As you can see from the table, the project and operational costs are recorded for each year of the investment.In all cases, the business case must be written and approved prior to any major commitment of resources.

The project lasts 1 year which is why the project costs are zero after year 1. Of course, the benefits won’t be realized until the solution is in place and the company starts to use the handheld devices.What form does a business case take?

The net benefits are simply the total benefits minus the total costs. This shows that the company will start to get a return on its investment sometime towards the end of year 2. This knowledge is vital if the decision-makers are to take a sensible decision about whether to invest in the project.Business cases can take many forms – digital or analogue. The tools you use to create one are also many and varied. Common business tools such as Microsoft Office might be used. Rather than being a document or slide deck however, it could equally be in the form of an email.

Business case templateEqually, a business case could be written by hand on a whiteboard or flipchart, or on the back of a cigarette packet!

This simple What you should always remember is that a business case does not have to be a huge long document. In fact, it should be as short as possible, and only include the most important information. That way it cuts out the noise and provides decision-makers with just the right information to enable them to take sensible decisions.business case templateFor those of you interested in is free to download.project management

Summary, the project management methodology known as

A business case is the most important document on any project. That’s because it justifies the investment.PRINCE2

It helps an organisation be clear about why a project is needed, and what the results of the investment will be. This is crucial because no organisation has unlimited funds to spend on an unlimited number of projects. Therefore, a business case gives confidence to senior managers when deciding to invest in one project rather than another. focuses its decision-making on a project on having a viable business case.

However, as you have seen in this article, a business case is something which you can find useful when taking major decisions in your own personal life. Remember – a business case doesn’t need to be a lengthy document. It could easily be a few notes scribbled on the back of something or even sent in an email.Business case examples

Whatever form your business case takes, remember one thing – it will help you or your organisation take sensible decisions about committing time and resources to a project or activity.We will now give you 2 business case examples. The first example is one which you might find useful for taking decisions in your personal life. The 2nd business case example is more business focused project.

Remember, if you want to learn more about developing a business case, and learn many of the techniques useful for assessing business problems, consider attending a classroom Business case example 1: Moving homebusiness analyst courseSuppose you and your spouse are considering moving to a new home. You will need to weigh up the pros and cons of moving. This is done using a business case. You might not call it that, but that’s what it is. Let’s look at an example..Reason

Business case FAQsImagine a heating repair services company that uses a paper-based set of forms filled in by an engineer during site visits. The spare parts required to fix the heater are recorded on a form which is given to staff to process back in the office. They then order the parts, and schedule a follow-up visit for the engineer to fix the heater.

Who approves a business case?Enhance your skills with our expert-led courses

Usually on a project, the project sponsor (the person or people who are committing the funds) will approve a business case. Before approving it, they need to have confidence that the problems have been addressed and the right solution has been selected, that the benefits are achievable and realistic, when the investment will pay off, and how big will the return on investment be.

What makes a good business case?

As you have seen in this article, there’s several important bits of information which goes into a business case. Don’t spend unnecessary time though adding information which isn’t required. Your project sponsor will have to read your business case before they approve it, and you don’t want to make their job any harder than it already is!

There are several things you can use to check whether your business case is adequate or not. Here’s a checklist of 13 questions to ask yourself before you submit your business case to your sponsor for approval:Instructor-led

1. Are the reasons for the project consistent with the corporate, Better Business Cases Practitioner (with Foundation) courseportfolio or £2,400 +vatprogramme management strategies?See all dates
2. Is the project plan aligned with the business case? (e.g. are the costs and timescales in the project plan correctly reflected in the business case?)
3. Are the benefits clearly identified and justified?Self-paced
4. Is it clear how the benefits will be realized?Better Business Cases Practitioner (with Foundation) self-paced online
5. Is it clearly defined what will judged a successful outcome?
6. Is the preferred business option clearly stated, along with the reasons why?£1,199 +vat
7. If the project requires external procurement, is the preferred sourcing option stated, and why?
8. Is it clearly stated how any necessary funding will be obtained?
9. Does the business case include non-financial, as well as financial criteria?
10. Does the business case include operations and maintenance costs and risks?Self-paced
11. Does the business case include project costs and risks?Better Business Cases Foundation self-paced online
12. Does the business case conform to organisational accounting standards (e.g. break-even analysis and cash-flow conventions)?
13. Are the major risks faced by the project explicitly stated, together with any proposed responses?£699 +vat

How do you write a good business case?Let’s now look at this example business case.