Examining the Business Case – Strategic Fit

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Business Case

When the numbers of the cost-benefit equation stack up and an attractive payback is evident, even making allowance for risk and compliance, is the result a compelling business case? Perhaps not, because managers must demonstrate that the project fits with the pre-existing jig-saw of organizational priorities, goals and strategies. They must demonstrate the purchase will help the organization to achieve its objectives and boost its performance.

In short, with a diverse portfolio of projects and purchases competing for scarce organizational resources, managers must be able to demonstrate that their purchase or project is more relevant and compelling than others.

Taking all these factors into consideration it is possible to create a consistent universal formula for the business case. While the language and terminology used may vary from company to company, a business case will be based on the following formula:

This represents only the skeleton, as a lot more back-up and supporting information is likely to be added. That may include a summary of market information, supplier quotes, technical analysis and so on. However, it is powerful aid for salespeople in constructing the sales proposal and writing the proposal.

A robust business case must also examine a number of alternatives, in order to arrive at the best or recommended solution. After all, if this does not take place, the business case has already in some ways predetermined the outcome.

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