Business Cases
A well constructed business case ensures that the investment opportunities of a project have been carefully considered. It also ensures that the project is being driven by the business. In the current economic climate, surely no organisation can afford to run any project that lacks an adequate business case.
The business case should define the objectives and scope of the project. A full set of costs and well supported set of benefits are defined. The costs and benefits must be associated with a given option for progressing the project; it is usual to provide scenarios for multiple options including a do nothing option.
All benefits in any business or other organisation should relate directly to agreed business or organisational objectives. A project based on the business case, must, by definition, support the business.
For each scenario, an investment appraisal is completed. It is likely that finance will play a major role in this activity. Although project managers are often given the task, it is extremely prone to the garbage in garbage out phenomenon; even experts make mistakes.
It is important to include a fully considered set of risks and assumptions and to assess sensitivity of the case to each of these.
The business case should drive the project. A project with an inadequate case should never be started, and if started, should be stopped.
Capiro can advise on standards for creating business cases and can participate directly in the development of a business case.
Once a business case has been created. Capiro can advise on how to use it for the measurement of benefits achievement.