How to write a business case
Key takeaways
A business case helps decision-makers judge whether an investment is worth the time, money and risk.BCS accredited training partner for Business Analysis.
- State the reason for the activity and ensure it aligns with organisational strategy.
- Compare realistic options, including doing nothing, and clearly justify the preferred choice.Knowledge Train is a Change Management Accredited Training Organization.
- Separate project costs and timescales from ongoing operational costs and benefit realisation timescales.
- Define benefits in measurable terms and distinguish outcomes from benefits so performance can be tracked.Knowledge Train is an MSP Accredited Training Organization.
- Include known dis-benefits and major risks, plus mitigations, to avoid one-sided decisions. Request a quote
- Use an investment appraisal, such as net benefits and break-even timing, to test viability.AXELOS Peoplecert accredited training organisation for ITIL (IT Infrastructure Library).
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Half-day workshop to learn to write robust business cases.
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Let’s now look at this example business case.SlovakiaCHANGE MANAGEMENT
Executive summarySloveniaAPMG Change Management
This sample business case contains an executive summary. This section briefly describes the selected option and the key benefits it will bring.SpainFoundation
ReasonsSwedenLearn the fundamentals of enterprise change management.
The reasons for the project are clearly spelled out when describing the 3 current problems which the company faces.Other countriesPractitioner
OptionsHomeIncludes Foundation & Practitioner combined option.
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.Project managementPROGRAMME MANAGEMENT
BenefitsPRINCE2MSP
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?PRINCE2 FAQs®
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.Can I learn PRINCE2 for free without taking a paid course?Foundation
Dis-benefitsStay Ahead in Project Management!Learn the fundamentals of programme management.
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!Sign up for our mailing list to receive the latest tips, industry insights, and exclusive offers on project management training and certifications.Practitioner
Timescales Includes Foundation & Practitioner combined option.
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). INFORMATION TECHNOLOGY (IT)
CostsCan I learn PRINCE2 for free without taking a paid course?ITIL
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.Yes, you can learn about ®
RisksPRINCE2Foundation
One major risk has been identified in this example, but on your project, there could be many risks. for free. There are free introductory resources available which explain the principles and terminology of PRINCE2. If you just want to learn about PRINCE2 it is recommended that you use the Learn the fundamentals of ITIL service management.
Investment appraisalWhat is PRINCE2?Strategist DPI
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. website. This informational site explains everything you need to gain a basic understanding of all the elements that make up PRINCE2.3-day ITIL Strategist: Direct, Plan & Improve (DPI) course.
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.Free materials can help you understand the basics. However, they are not a substitute for an accredited PRINCE2 course and do not prepare you fully for the PRINCE2 exams.
Compliance Learning Library (CLL)™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.
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.IT Learning Library (ITLL)™
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 solutionsPRINCE2 course FAQsbusiness analyst course_blank .Free tools