Business Case Structure

The following text was my response to a post @ allpm.com with regard to requirements of a Business Case.

If you have a business case, this itself means that you have a reason to initiate a change in existing process / environment (could be a project / program or as simple as a single task) such that it would favor the business.

The structure of a business case depends on the need and the complexity of the case. It could be as simple as "logical reasoning", or could be a very elaborate one too, if you consider the "functional" plans within a business case.

To give you an example, you may consider making a case by detailing information under following heads,

1) Background - details of as-is" process, leading to inefficiencies / bottlenecks. Try to include current measures (performance / capability) too.

2) Details of Project - You need to define the objective / goal, benefits profile, stakeholders profile, and scope of your "case".

3) Cost Benefit Analysis (CBA) - Analyze for business / operational / financial impacts for all costs and benefits. Support it with ROI figures (NPV, IRR, Payback Period)

4) Environment Analysis - More to do with the environment under which an organization operates. By doing this you are assessing the tactical / strategic impact. However, you would definitely not require this for each and every business case, unless it impacts the organizational strategy.

5) Option(s) Analysis - Analyze the options that were available to you, and why you have chosen the suggested approach. My preferred choice in this case would be to make use of QFD (though PUGH matrix is designed for this).

6) Technical Analysis - If applicable

7) Risk Analysis - Remember identify, Analyze (Quantify / Prioritize), and suggest mitigation approach (if required). It would also feed into your CBA.

8. Project Schedule and Resources - Your commitments and organizational support that you would require to complete.

9) Measurements - To check on the progress, and alignment to set goals.

10) Summary

It goes without saying that all of these points you would summarize in one or two pages for top management / financer or for someone who just wants to have a gist of it, in form of executive summary.

Now, as you can see, you can make it as elaborate as you want (or required); however, one things is sure, whether a concise one or an elaborate one, on completion of this exercise you are aware of what, why, and how the problem(s) needs to be fixed (bare minimum).

If you want you can read through http://en.wikipedia.org/wiki/Business_case to check what has already been documented on this topic.

http://allpm.com/index.php?name=PNphpBB2&file=viewtopic&t=3089