Developing a Business Case
Find out how a winning business case can help your projects soar.
If it hadn’t been for the strong shared some pointers that helped
business case the executives at Star Divers create a winning
Star Divers devised, collegiate and business case for Flexi:
professional athletics wouldn’t be
where they are today. The Executive Summary
When constructing a business case,
Frank Molinski, a member of the start with the executive summary.
executive board at Star Divers, It’s important to include a well-
coauthored the business case for a devised objective statement and
recent effort to develop Flexi, a scope statement. Briefly present
software application that is the problem, issue, or need--how
revolutionizing collegiate and will this improve business,
professional athletics everywhere. usability, save money, generate
Flexi records springboard divers in revenue, or put you ahead of the
the air as they spin, twist, and competition? Then briefly describe
rotate, measuring the angle the project you are proposing at a
deflection of the springboard, the very high level: senior managers
speed of rotation, and any are your target audience. Finally,
inconsistencies that may factor into be sure to identify the project
the successful (or unsuccessful) sponsor. This may be the Board of
execution of the dive. Professional Directors, an executive level
golfers and baseball players also manager, or a manager for a given
use Flexi to measure swing and the business unit (for smaller
velocity the ball attains depending projects).
on the weight of the opposing force
(iron or bat) acting on the ball. Strategic Fit and Purpose
Next, you’ll want to discuss the
No one could have anticipated the purpose of the project and how it
astounding reception this ties in with the vision and mission
application has received by of the sponsoring organization. If
coaches and athletes worldwide. you work for a leading road bike
This is the first application of its manufacturer that prides itself in
kind, so measuring the financial always having cutting-edge
and professional impact of the technology, then proposing a
product could not be supported project to install a digital odometer
quantitatively. It was the business and trip counter on every bike fits
case that convinced the Board of with the corporate strategy. Star
Directors at Star Divers that the Divers strives to be the first to
impact was far reaching. Molinski introduce innovative technologies,
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such as Flexi, so time was critical may already know if some
in our situation. technologies necessary for the
project are commercial off-the-
When discussing the strategic fit shelf (COTS), customized COTS, or
and purpose, be sure to answer the will be built in-house. Whenever
following questions: What impact possible, select proven technology.
does the project have on the This can reduce the amount of risk
organization’s future capabilities and save money in the long run.
and success? Is this a regulatory-
mandated project? Is this project Financial Considerations
needed for growth? Is the project How much will the project cost?
aligned with the organization’s What are the financial benefits of
long-term strategic goals? If the pursuing this project? What is the
project changes the current return on investment? The amount
processes, what will change and of money specified in the business
how will this affect the organization case represents how much the
moving forward? organization is willing to spend on
the project--what it is worth to the
Stay focused on the key business business--not the amount of
objectives of the project, money the project is going to cost.
understand your organization’s
strategic plan, and make sure that Therefore, provide as much detail
the objectives presented in the and accurate benefit and cost
business plan align with those of estimates in the business case as is
the organization. necessary, but be careful not to
bombard senior managers with
Needed Resources specific monetary figures during
Identify the types of resources-- your presentation--remember they
both human and equipment--that are estimates! Until a formal
are required to complete the requirements analysis is
project. Depending on the conducted, it is too soon to
organization, you may or may not estimate project costs accurately.
be able to choose individuals by For any numbers listed in the
name. You should, however, clearly business case, whether monetary
identify what types of people and or time expenditures, always
skills are needed. It may be explain how you arrived at those
necessary to outsource portions of numbers.
the project or rely on contractors
for some components. Working Note that you may want to save
with vendors and business partners this step for last. In fact, the
may be necessary. business justification for a project
may not always be financial. A
When considering equipment, this project may be justified to gain a
may involve hardware, software, competitive edge--which is nearly
networking, and Internet impossible to quantify as being
capabilities, as well as security, directly correlated to the
license agreements, support, and implementation of a specific
even training, if necessary. You project--or to improve a network
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infrastructure to ensure future enhance communication from the
business projects can be start, which will make managing
supported. the project much easier during the
later phases of the IT project.
In General
In most situations, the project The Business Case Flash Card
manager does not develop the Molinski’s 10 steps to make your
business case. It’s important that project soar:
the project manager understand 1. Identify and describe the
how business cases are generated project
for the following reasons: 2. List the objectives
As project manager, you must 3. Identify the scope (and what
be an advocate for the project is out of scope)
and adhere to the objectives 4. Identify the strategic fit or
and business purpose behind business need
the project 5. Identify the technology
You may be the project landscape
manager who is the exception 6. Identify risks, assumptions,
to the rule and has to write and project constraints
the business case for a project 7. Formulate a conceptual
You may become part of the solution
team that develops the 8. Identify key resource
business case for future requirements
projects 9. Define successful project
completion/acceptance
When you are involved in criteria
developing a business case, 10.Conduct a financial analysis
recognize that the business case
must be approved by senior “You may have a brilliant idea for
management for the project to go a new project that will solve a
forward. critical problem in your
organization, but if you don’t have
Know your stakeholders! Learn as the sponsor buy-in from the start,
much as you can about the project you don’t have a project. That’s
sponsor and stakeholders who will why developing a strong business
be affected or will participate in the case is so important!”
project. Knowing their interests – Frank Molinski, Star Divers
and concerns ahead of time will Executive Board Member
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