How to write a business caseBest for

Introduction

This article explains how to write a business case. It includes 2 business case examples and a free business case template for you to Run private BA training for your team, aligned to your context, goals and timeline.download .Trusted by professionals at

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

What is a business case?

A 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.Often, yes. Many organisations use a blend of approaches. Core BA skills (such as stakeholder analysis, modelling, and requirements techniques) remain valuable, and AgileBA helps you apply those skills effectively in iterative delivery environments.

A business case forms an essential component of the curriculum of the Do you offer training for teams or organisations?best project management courses

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The benefits of a project or activity are the positive things you’re going to get back in return for your investment of time and money. In this case, the kids will get a better education, and John will save time each day.

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It’s also important to understand how long the investment of resources will take. This is so that the organisation (or family in this case) knows when the resources will be freed up to work on other projects or activities.

There are usually 2 timescales to consider. First, the timescale of the project or activity – in this case 3 months to find a new house and move there. Second, the time over which the benefits shall be realized. In this case it’s 5 years until the kids leave school.

Costs

The costs of doing the project or activity is the next important bit of information. On this project, the costs of moving to a new house will be £5,000. These are the project costs.

However, the couple will spend an additional £2,000/year for every year over which the business case is calculated. For a project in an organisation, this is usually referred to as the operational costs of maintaining and operating the projects outputs e.g. an IT system. At this point, the couple knows the total costs over the timescales when the benefits shall be realized.

Risks

For any activity or project, it’s also important to understand the major risks involved. Risks are the uncertain things which may or may not happen during the period of the investment. There is only one risk identified here, which is the risk that the couple might lose touch with friends who live close to them right now.

Investment appraisal

The next section is where the costs and timescales and risks are weighed up. For this project, it’s a simple decision for the couple to decide if it’s worth spending money over the next 5 years to give their kids better schooling and to save John 2 hours a day commuting.

For an organisation to decide if an investment is worthwhile, however, there are several different ways in which it can decide about the investment.

Often in organisations there are rules defined to help business analysts or project managers write what’s called an investment appraisal. In the next example, we’ll look at one example known as net benefits.

Business case example 2: Handheld device project

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.

Let’s now look at this example business case.[email protected]

Executive summaryJoin Our Team

This sample business case contains an executive summary. This section briefly describes the selected option and the key benefits it will bring.

Reasons[email protected]

The reasons for the project are clearly spelled out when describing the 3 current problems which the company faces. Copyright © 2005-2026 Knowledge Train Limited.

Options Registered in UK: 5566983.

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. Registered VAT: GB872413526.

Benefits Knowledge Train

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?®

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. is a registered trademark of Knowledge Train Limited.

Dis-benefits 20 Old Bailey, London, EC4M 7AN, England, United Kingdom.

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! Knowledge Train are experts in project management, PRINCE2, agile and change management training and certification. Choose from a full range of instructor-led and self-paced

Timescalesproject management courses

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)., a

CostsPRINCE2 course

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., or an

Risksagile project management course

One major risk has been identified in this example, but on your project, there could be many risks. to boost your career.

Investment appraisalPRINCE2

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.®

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., MSP

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 case template, ITIL

This simple ®business case template is free to download.

A good business case must contain certain key information including:Preferences

• The reasons for doing the project;

tive.

By owning the business case, it means this person is accountable for ensuring that any investment decisions which are taken based upon the information within the business case are worthwhile.Marketing