How to (properly) use the business case ?

How to create a business case that meets real needs

A number of steps are required to get the job done right.

1 - Validate the need

This is the role of the business analyst: he or she must start from the project sheet and question the customer about the real nature of his or her need and how the project will effectively meet it. The analyst should even specify the project's inclusions and exclusions, and have the customer sign the project sheet to underline his accountability in the process.

This is all the more necessary given the frequent occurrence of poorly defined or misunderstood needs.

2 - Identify possible options

Once the project need has been correctly identified, it's time to think about the various possible ways of meeting it, including those proposed by the customer. Here too, however, we need to step back to assess them objectively, and select the one that will deliver the best results for the organization.

The multi-criteria grid makes it possible to carry out this critical analysis of the possible solutions, using objective, weighted criteria. The analysis will be followed by a recommendation which, if accepted, will give the green light to the development of the project charter.

Since the business case measures feasibility and profitability, it is a possible way out if one of these two aspects proves problematic.

3 - What makes a good business case?

To be actionable and help decision-making, a business case includes :

The context in which it will create value.
Clear validation of the need: what is it, and how will it be met?
A list of possible alternatives (with their respective advantages and disadvantages), accompanied by high-level budget and schedule estimates.
Consideration of possible preliminary risks.
Rational, objective and collective multi-criteria analysis.
Expected benefits.
A recommendation based on the above points.

4 - Pitfalls to avoid in a business case

The most common mistake in preparing a business case is to assume that you have a good understanding of the need: that everything is clear in the customer's head, that the project team knows what to do... without having validated it extensively.

Hence the importance of confirming all aspects of the project and sharing accountability with the client.

5 - The business case: a strategic element

A well-constructed business case is a tool for communicating and convincing the entire organization of the project's merits.

First and foremost, it provides the project sponsor with the tools they need to understand and commit to the project, anticipate possible issues and find the necessary resources.

Secondly, the business case helps the project office make a choice from among all the projects submitted, to decide which one will join the portfolio.