importance of business case in project planning

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• Why is a Business Case Important and How Can it Deliver an Optimum Outcome?

A project will only be successful if they have been planned realistically with a clear focus.

A business case often provides decision makers, stakeholders and the public with a management tool for evidence based and transparent decision making. It is a framework for delivery and performance monitoring of the subsequent policy, strategy or project to follow thereafter.

The resultant project will only be successful if they have been planned realistically, with a clear focus after detailed consideration of the associated risks. It is a business case that clearly presents the risks, opportunities and threats involved putting them in perspective of the investment involved there in. Thus a business case is not just a record of the Return on Investment from a financial perspective but will present a summary of all the benefits delivered.

The Five Case Model, which is the UK government’s best practice approach to planning spending proposals and enabling effective business decision, goes beyond the financial dimension. The Five Case Model is a framework for “thinking” to help answer three basic questions of, ‘Where are we now?’ ‘Where do we want to be?’ And, ‘How are we going to get there?’

These are never easy questions to answer and often change as more information comes to light. For significant projects the business case is developed through three iterations. These are the Strategic Outline Case (SOC), the Outline Business Case (OBC) and the Full or Final Business Case (FBC).

The Five views or “Cases” are:

• The “strategic case” –  there is a compelling case for change that fits with the strategic objectives of the sponsoring organisation.
• The “economic case” –  the solution represents best value.
• The “commercial case” –  the proposed solution is attractive to the market place, can be procured on appropriate terms so it is commercially viable.
• The “financial case” – the proposed financial investment is affordable.
• The “management case” –  the input required from all parties involved in the project is achievable.

Simply asking some Project Sponsors or promoters to develop these five cases can often results in marginal or non-viable projects never seeing the light of day and wasted effort being avoided. By reducing the wasted effort, all resources can be focused on those projects most likely to succeed thereby improving the likelihood of success and helping to challenge the common perception that most projects fail.

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A Business Case in Project Management: Why Start a Project?

Whatever great idea is behind a project, it won’t be implemented without stakeholders’ buy-in and investment. To get their support and approval, they need to understand what value an initiative will bring to their business, or how it’s supposed to solve an existing business problem. This is when a business case document is required. Why is it important, and how to compile a convincing business case? Let’s figure it out in the article. 

A Business Case in Project Management: Definition and Importance

According to the Project Management Body of Knowledge [1], a business case is a document that allows decision-makers to determine whether the project is worth the investment. It presents a current business problem and suggests ways to solve it by implementing a certain initiative. The basic purpose of this document is to justify the initiation of a project.  

Typically, a business case is created in response to one or several of the following needs:

• Market demand;
• Organizational need;
• Customer request;
• Technological advance;
• Legal requirement;
• Ecological impacts;
• Social need.  

A business case is a dynamic document that has to be reviewed and updated regularly. A project manager together with a project sponsor are responsible for monitoring its elements to check whether or not the project is still worth the effort (e.g.: should the project scope be reduced? Is it reasonable to invest more resources to deliver the project?). 

Now, let’s examine why it’s important to develop a business case document.  

Why create a business case document?

• A business case provides grounds for prioritizing projects across an organization.

It shows what business value can be achieved as a result of project implementation, so that stakeholders can make their decision regarding intaking this initiative. 

• It facilitates more reasonable resource utilization. 

It makes no sense to allocate valuable resources (both human and material) to projects that won’t bring real value to the business. 

• A business case allows stakeholders to set clear expectations of project outcomes. 

It increases the chances for meeting their requirements. 

• It serves as a reference point throughout the whole project lifecycle.

At the beginning of a project, it provides justification for starting a project. As the project progresses, a business case shows the direction of project work. Upon the project completion, a business case can be used to assess the outcomes.   

To sum up, preparing a business case before project initiation can increase efficiency of the business – an organization will intake only those initiatives that will bring real value.   

A business case is somewhat similar to a feasibility study, which is why they sometimes get confused. Let’s clear up the difference between them in the subsection below. 

A business case vs. a feasibility study

Both a business case and a feasibility study are decision-making tools that present a project’s viability. But still, they have certain differences. Take a look at the table below. 

Read more about a feasibility study: To Start or Not to Start: Overview of a Feasibility Study in Project Management

Now, it’s time to consider the exact structure of the business case document. 

Components of a Business Case Document 

There isn’t any single standard for writing a business case. In addition, some companies have their own templates. Let’s consider one of the variants of this document [2].   

Executive summary

This section describes a business problem along with related issues, and how a proposed project is going to address it. As a rule, it’s compiled at the end and summarizes all other sections.

An executive summary creates the first impression of a project. In addition, it may happen that some decision-makers will read only this section. So, make sure that it covers the most relevant information about the initiative.  

Here are the proposed components of the executive summary. 

• Problem: this section should briefly describe an issue to be addressed. 
• Expected outcomes: how will the business benefit from the implementing the proposed project?
• Recommendations: this part describes in what way the proposed project is going to resolve the outlined business problem and how desired results will be achieved. 
• Justification: why implement the proposed project? How does it differ from other alternatives? What consequences will the business face in case of declining the initiative? 

Business case analysis team

This section describes the roles of employees responsible for developing a business case and describes their responsibilities. They can be as follows: executive sponsor, technology support, process improvement, project manager, and software support. 

Problem description

This section should cover the following aspects:

• Problem statement (it can be process-, technology-, or product-oriented);
• Organizational impact: how will the proposed project transform the existing organizational processes, tools, hardware, and/or software;
• Technology migration: this subsection is required when a project involves the implementation of new technologies and data migration from legacy systems. 

Overview of a project 

This section should provide the most comprehensive information about a project and describe it in the following way:

• Project description presents the approach that will be used to solve the outlined business problem, a project’s components, purpose, and the way it will be implemented;
• A list of business goals and objectives and how the project is expected to achieve them;
• Project performance section describes the criteria to assess project outcomes in relation to key resources, processes, or services;
• Project constraints (e.g., limited resources or budget); this list is preliminary and will be extended upon project plan development;
• Major project milestones: this subsection presents a rough milestone schedule, so that stakeholders can get the idea of an approximate timeline.  

Strategic alignment

This section should describe how the project outcomes will be aligned with goals and objectives of an organization’s strategic plans.

Cost-benefit analysis

This is one of the most important sections of a business case. Cost-benefit analysis involves the use of measurable financial metrics (earned revenue or costs saved as a result of project implementation) to make a decision regarding a project initiation. Its main purpose is to illustrate that the benefit a company gets will outweigh the investment. 

Alternative analysis

One of the compulsory elements of a business case is presenting possible alternatives to a proposed project, which should include the following information:

• the list of all possible alternatives (including “status quo”, i.e., doing nothing to address the problem) and their consequences;
• the reasons for not selecting other alternatives;
• the substantiation for selecting a particular project among other options. 

If approved, a business case document should be signed by decision-makers at the end. 

Compiling a business case is a rather labor-consuming task that requires collaboration of members from different departments as well as senior management. At the same time, the process of creating this document is always accompanied by uncertainty to some extent – you cannot predict the project progress with hundred-percent accuracy. This is where a resource management solution can assist. Let’s take a closer look.

How a Resource Management Solution Assists in Creating a Business Case

Suppose that a company has already a number of projects in the pipeline, and its resources are limited. When initiating a project and preparing its substantiation, you need to know whether they have the capacity to work on one more project, or you’ll have to hire more people. It will have a direct impact on estimated project costs, and it will be impossible to perform cost-benefit analysis without this information. However, an AI-driven resource management solution can provide you with the following information. 

• Resources’ current and future workload: it analyzes team members’ involvement in active projects and predicts their capacity in the future. So, decision-makers will know the number of employees they can rely on for implementing a new project. 
• The impact of adding one more project to the current environment: RM solution’s predictive capabilities make it possible to find out how team members’ current load will change upon adding a new project to the pipeline. You can also make any changes to the project environment (move milestones, add resources, etc.) and see the outcomes of these changes.  

Therefore, when developing a business case, you can rely on the information provided by a resource management solution when it comes to resources’ capacity and corresponding costs. 

The above-mentioned functionality along with other helpful features are available in Epicflow, AI-driven resource management solution for multi-project environments. It provides project and resource managers with reliable assistance in terms of maximum efficient resource utilization and streamlined project flow. Learn more about our solution by booking a call with our expert.         

References 

• A Guide to the Project Management Body of Knowledge. 5th Edition.
• Business Case Template. Project Management Docs .

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What is a business case ?

A  business case  provides justification for undertaking a project, programme or portfolio.

It evaluates the benefit, cost and risk of alternative options and provides a rationale for the preferred solution.

Definition from APM Body of Knowledge 7th edition  

Five elements of a business case

A common way of thinking about a  business case  is using these five elements:

•  Strategic context : The compelling case for change.
•  Economic analysis : Return on investment based on investment appraisal of options.
•  Commercial approach : Derived from the sourcing strategy and procurement strategy.
•  Financial case : Affordability to the organisation in the time frame.
•  Management approach : Roles, governance structure, life cycle choice, etc.

The  business case is reviewed and revised at decision gates as more mature estimates and information become available. The approved business case provides a record of the decisions made by governance about how to achieve the required return on investment from the work. It documents the options considered and it is normal practice to include the ‘do-nothing’ option as a reference. Through this approach, the business case becomes a record of the recommended option with rationale and evidence to support the decision.

The presentation of the business case, if approved, results in the formal startup of the project, programme or portfolio. The sponsor owns the business case.

It brings together the  investment appraisal  with evidence of how the investment is intended to lead to realisation of the intended benefits. All projects must have a business case that demonstrates the value of the work and it is outlined during the concept phase of the  life cycle .

Contents of the business case

Source: Starting out in project management, 3rd edition

Starting out in project management

Your essential guide to the basics of project management. Written for anyone new to projects or wishing to progress their career as a project professional  Starting Out  charts the journey of the APM project life cycle, from concept through to delivery and handover.

Related reading

APM Body of Knowledge 7th edition

The APM Body of Knowledge 7th edition is a foundational resource providing the concepts, functions and activities that make up professional project management. It reflects the developing profession, recognising project-based working at all levels, and across all sectors for influencers, decision makers, project professionals and their teams. 

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What is the Business Case in project management?

A Business Case explains why a project is needed, and the changes and benefits that it is designed to deliver. stakeholdermap.com

What is in a Business Case?

When do i use a business case, why is the business case so important.

• Business Case Template

• The reasons for the project in context of corporate and programme strategy.
• The options that have been considered and the reasons for the chosen option.
• The benefits that will be achieved by the project outcomes.
• It should set out the benefits in measurable terms so that an assessment of the projects success can be made once the project is complete.
• A summary of the risks that could affect the delivery of the project outcome.
• An outline of the project costs and milestones from the programme and project plans.
• An Investment Appraisal - an analysis of the cost of the project against the expected benefits over time.

During the project

• To check progress at Stage Gate or Quality Review points. Is the project still on track to meet the Business Case?
• To review each change request : Will this change assist us in meeting the Business Case?
• To assess the impact and urgency of issues and risks : How will this risk impact the Business Case?
• To approve mitigating actions against risks and issues : Will this action contribute to the Business case or is it needed to ensure we still meet the Business Case?

At Project Close

White elephant projects, pet projects, knee jerk 'something must be done' projects, projects that are simply unnecessary, scope creep, increasing costs and delays, never ending projects, cancellation, loss of procurement, wasted effort, get a business case template, business case - references and further reading, read more on project documentation.

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A business case? What for? Or the importance of a good business case

By Henri-Jean Bonnis , 2018-08-13, 10:00

What is a business case?

A business case should offer reasons to implement an idea or a project. It needs to be a point of reference before, during and after the project. It establishes a project’s tangible and intangible objectives, from what to why. It becomes a guide to refer to throughout the project, and it allows you to evaluate the results of the project after its completion.

Why write a business case?

Writing a business case is part of best corporate practice. It determines the value a project will bring to a company. In it, you must answer the following questions: what, who, for whom, why how, when and at what price.

What's the current situation in terms of project success?

Statistics from The Standish Group and other statistical databases:

• Project success rate: 28%
• Average cost over-run: 45%
• Average time over-run: 63%
• Average shortfall in requirements: 33%

Because of these depressing statistics, many management consulting firms (ex: McKinsey and BCG) and NPOs (ex: Brightline Initiative) have analyzed the most common causes of project failure. Here they are:

• Lack of clear link to the organization’s key strategic priorities
• Lack of clear senior management ownership and leadership
• Lack of effective engagement with stakeholders
• Lack of skills and proven approach to project and risk management
• Project not broken down into manageable steps
• Evaluation of proposals linked to initial price rather than longer term value for money
• Lack of understanding of and contact with suppliers
• Lack of effective integration between the client, supplier and supply chain

5 key questions to ask when beginning a project

Before or when beginning a project, it is vital to ask yourself the following questions in order to give yourself the best chances of success:

• Is there a compelling case for change? ​
• Does the recommended option optimize the invested value? ​
• Is the potential deal achievable and attractive to the market place? ​
• Is the spending proposal affordable? ​
• How will the proposal be delivered successfully? 

To simplify things for you, here is a business case model that addresses these five fundamental questions: the Five Case Model. It consists of five distinct parts, each of which addresses one question:

• Strategic case

This part needs to demonstrate the project’s alignment with the company’s corporate strategy. You need to develop a strong case for change and clearly explain the underlying logic.

• Economic case

This part needs to demonstrate all the options that were considered. It must also recommend the option that presents the best value for the project’s costs and risks.

• Commercial case

This part needs to demonstrate that suppliers can deliver the necessary goods and services in a cost-effective way.

It should also contain potential contractual arrangements for goods and services.

• Financial case

This part needs to demonstrate that the company can afford to undertake the project: a realistic cost-benefit analysis for the full duration of the investment.

At this stage, you can mention your sources of financing.

• Management case

This part needs to demonstrate that the conditions for success are met. It can include the governing structures, plans, resources, the change management strategy and the post-mortem evaluation, among other things.

Important elements to remember:

• This document can evolve as the project progresses
• It is used to prioritize projects in a portfolio
• You should be able to stop a project at any time
• Finance for the profitability analyses and profit management
• Procurement for the contracts
• Other departments that will be affected

Finally, a good business case is not an end unto itself. You need to sell your plan, whether it’s to your superiors, your clients or your associates. I strongly recommend that you educate yourself on this subject as well. 

For advice on pitching a project, seek out the PMI-Montréal community. Their conferences and events are packed with concrete ways to help you improve your business case and your pitch.

Henri-Jean Bonnis

President, PMI-Montréal 

• https://fr.slideshare.net/PMI-Montreal/matine-pmi-le-business-case-justifier-et-promouvoir-un-projet
• https://www.projectmanagement.com/videos/288354/Project-HEADWAY--Beyond-the-Business-Case--Selling-Project-Intangibles
• https://www.projectmanagement.com/videos/338047/Recommend-the-Most-Viable-Option
• https://www.pmi.org/learning/library/need-business-case-6730
• The art of the pitch, by Guy Kawasaki: https://guykawasaki.com/the-art-of-the-pitch/
• Better Business Case: https://apmg-international.com/product/better-business-cases

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Why business cases are important to making things happen.

Great things can come out of business cases.  After all, without a business case, an idea just remains an idea – a lightbulb forever floating in the ether.  We like the things that come out of business cases, the latest Apple device, a new gin, Netflix series or bypass that makes our journey to work easier, but does anyone actually like creating them?  And why are they important to making things happen?

I just can’t wait to write/read this business case!

Said no one ever.

If you think about it, when have you ever looked forward to writing a business case or reading one?  It’s probably fair to say no-one settles down to read a business case with a sense of exciting anticipation.   The trouble with business cases is that they’re a bit dull.  Even for life-changing, cutting-edge stuff exciting stuff, nobody reads them with passionate engagement.

So, why bother with a business case?

What’s the point of putting the time, thought and effort into something that is so unenthusiastically approached and received?

Well, in a budget-conscious, results-oriented world, it is no longer enough to simply deliver what you promised. Now, you also need to be sure that what you propose justifies the investment of time and resources needed to create it.

The business case focuses on the value that a project or programme brings to an organisation . In spite of the use of the word ‘business’, it is equally applicable to non-commercial organisations, such as government entities and non-profits, where it is sometimes referred to as a ‘use case statement’.

The aim of the business case is to justify the existence of the project or programme. It should clearly demonstrate the value of the work being done and the deliverables being created. The business case is outlined during the concept phase of the project life cycle and is used to assess whether the project should go ahead.

Preparing the business case is generally the responsibility of the project manager. Often, they will have input from other experts and specialist agencies. Once the business case is approved and the project moves forward, the business case must be regularly updated to reflect any changes to the project as a whole. It is used at gateway reviews to ensure that the project is continuing to progress in a way that will deliver the required value to the organisation.

What does a good business case look like?

The business case should tell a story.  This is the story of the benefits of the idea. It puts into context the value that a project or programme will bring to the organisation.

So, the narrative of the story will flow like this:

• The problem or situation that led to the project being considered
• Why the project is needed
• What might change about the situation that could make the project unnecessary
• An options appraisal setting forward options considered, and options chosen
• An appraisal of the “do nothing” option – what is the scenario if no action is taken?
• Expected results and benefits, and their value to the organisation
• The timescale in which the benefits are expected to be delivered
• How the project team will assess whether benefits have been realised
• Any unavoidable dis-benefits, with justification for why they are acceptable
• Costs and funding arrangements
• The risks involved, and their impact on the business case

The Reality Check

Assessing whether benefits have been realised is an essential part of the business case. This is mentioned above, but it is important enough that it generally gets its own separate document, known as the benefits review plan. This should be developed by the project manager alongside the business case and should be updated as the project progresses through the project life cycle.

The benefits review plan identifies specific benefits to be measured. These are taken directly from the business case. It should also state how benefits will be measured, who will be accountable for measuring them, and what information and data will be needed by those accountable. It will also state when the benefits assessments will take place, who will carry out these reviews, and what the baseline measurements are, in order to measure improvement.

How it benefits the organisation

Every project undertaken should clearly benefit the organisation. The business case demonstrates in advance exactly why a project is being put in place and how much value the successful completion of the project will add to the organisation as a whole.

The business case encourages the project manager and team to focus on not just what they are building, but also how it will be used. It helps the organisation avoid wasted resources on projects that do not yield a justifiable amount and quality of benefits. It also allows the organisation to prioritise multiple projects, by making the immediate value of each project clear.

How it works

The business case is a guide and reference point, before, during and after a project. Before the project begins, the business case establishes and justifies the goal of the project. It puts the outcomes of the project in context, by clearly stating not just what needs to be achieved, but also why it is necessary.

During the project, the business case remains central to day-to-day project management decisions. When different options present themselves, the project manager can refer to the business case to ensure that the chosen option not only moves the project closer to the deliverables, but also closer to the real values to which those deliverables are aiming to contribute.

After the project, the business case allows for an assessment based on actual value added to the organisation. Instead of measuring success based on whether the deliverables were completed, the organisation can easily assess whether the expected benefits were delivered. If not, then why not? Perhaps benefits were not accurately estimated, or maybe the deliverables developed were the wrong ones, incomplete, or badly implemented. This allows the organisation to learn valuable lessons.

How the business case creates project success

The business case can be the guiding light that creates project success. Communicated clearly, it can keep the entire team focused not just on their tasks and deliverables, but also on how they are providing the value that is at the heart of the change they are implementing. The proper development and maintenance of the business case allows for:

• A clear definition of the value that a project is intended to deliver
• A way to prioritise projects and ensure that resources are used to deliver real value
• An ongoing way to assess whether the project is worth continuing
• A tool to facilitate decisions on when and how the project plan needs to be changed
• A well-managed business case substantially increases the chances of a project being completed successfully, to the satisfaction of all stakeholders.

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What is a Business Case and Why Would You Need One? (Video)

If you’re in charge of a business unit and its expenditures, you want a clear and concise process for individuals on your team to submit ideas and solutions to be evaluated. And if you’re the individual pitching a new product idea, or a solution to solve a bottleneck at your company, chances are you will need to convince someone within your enterprise that it’s worth investing the necessary resources in.

In order to figure that out, you will need to determine which resources will be needed and what the return on investment will be, among other important considerations. This is where the business case comes in handy, as you are making the case for this new business expenditure. If your idea does not require a purchase or any dedicated resources, then you may not need something as detailed as a business case. Nevertheless, it’s a great tool for evaluating an idea or possible spending. This blog aims to explain ‘what is a business case’.

What is a business case?

A business case provides justification for initiating an idea, project, or task.

It captures documents and communicates the purpose of starting a project. It details the allocation of budget and resources to execute the plan, as well as the benefits of executing the project or task. A thorough business case will also identify alternative options and provide critical data so leadership can make an informed decision. Business cases can be a comprehensive analysis or a simple, informal presentation. edison365businesscase allows its users to configure templates to make the business case process easier and more streamlined.

Who needs one?

If you are working in the corporate or government landscape and you have an idea to pitch, the business case will help solidify the value of your idea. Corporations and government agencies typically have a bit of “red tape” to get through when it comes to anything new that involves the use of budget or resources. Typical roles involved with the business case might be business analyst, project manager, finance manager, department head, controller, or similar.

Why do you need a business case?

Here are three reasons why you need a business case:

• One of the primary goals of creating the business case is to convince decision-makers to go forward with the project idea, but it also helps the organization prioritize projects that are in line with the overall strategy of the business.
• Business cases provide a way to compare very different ideas using the same criteria – creating a transparent process and a level playing field for all potential projects.
• If the project is chosen, the business case can help with managing the scope of the project during the initial planning stage. Then, after the project is completed, the business case becomes the measure to assess how well the organization did with its planning and implementation.

Now you know what a business case is, you may find our other advice handy:

• How to develop a business case
• What I learned from pitching ideas to the C-Suite
• Business case software – a quick guide

FAQs: What is a business case?

What is included in a business case.

This depends on your organization’s in-house processes, but most business cases include:  

• A brief overview of each area of your business case, known as an ‘executive summary’  
• The project objectives and how they fulfill business needs  
• An outline of the project plan  
• The project scope – all the tasks and deliverables that will be executed as part of the project  
• The background information around the business case, including the problem it will solve and who the key stakeholders in the business are  
• The projected benefits of the project (including non-monetary benefits) and its success criteria  
• The cost and potential risks of completing the project, including how they will be mitigated  
• The implementation strategy.

What is the best definition of a business case?

A business case provides justification for initiating an idea, project, or task. Essentially, it is used to sell a project idea to key stakeholders and provides clear expected goals and benefits for project managers.

How to write a business case?

There are three key stages to writing a business case:

• Carry out research
• Get an implementation strategy together
• Compile your recommendations.

You can find a detailed guide in our blog on how to develop a business case .

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How to Write a Business Case (Template Included)

Table of Contents

What is a business case, how to write a business case, business case template, watch our business case training video, key elements of a business case, how projectmanager helps with your business case.

A business case is a project management document that explains how the benefits of a project overweigh its costs and why it should be executed. Business cases are prepared during the project initiation phase and their purpose is to include all the project’s objectives, costs and benefits to convince stakeholders of its value.

A business case is an important project document to prove to your client, customer or stakeholder that the project you’re pitching is a sound investment. Below, we illustrate the steps to writing one that will sway them.

The need for a business case is that it collects the financial appraisal, proposal, strategy and marketing plan in one document and offers a full look at how the project will benefit the organization. Once your business case is approved by the project stakeholders, you can begin the project planning phase.

Projects fail without having a solid business case to rest on, as this document is necessary to start the project and it’s the base for the project charter and project plan. But if a project business case is not anchored to reality, and doesn’t address a need that aligns with the larger business objectives of the organization, then it is irrelevant.

Get your free

Use this free Business Case Template for Word to manage your projects better.

The research you’ll need to create a strong business case is the why, what, how and who of your project. This must be clearly communicated. The elements of your business case will address the why but in greater detail. Think of the business case as a document that is created during the project initiation phase but will be used as a reference throughout the project life cycle.

Whether you’re starting a new project or mid-way through one, take time to write up a business case to justify the project expenditure by identifying the business benefits your project will deliver and that your stakeholders are most interested in reaping from the work. The following four steps will show you how to write a business case.

Step 1: Identify the Business Problem

Projects aren’t created for projects’ sake. They have a goal. Usually, they’re initiated to solve a specific business problem or create a business opportunity.

You should “Lead with the need.” Your first job is to figure out what that problem or opportunity is, describe it, find out where it comes from and then address the time frame needed to deal with it.

This can be a simple statement but is best articulated with some research into the economic climate and the competitive landscape to justify the timing of the project.

Step 2: Identify the Alternative Solutions

How do you know whether the project you’re undertaking is the best possible solution to the problem defined above? Naturally, choosing the right solution is hard, and the path to success is not paved with unfounded assumptions.

One way to narrow down the focus to make the right solution clear is to follow these six steps (after the relevant research, of course):

• Note the alternative solutions.
• For each solution, quantify its benefits.
• Also, forecast the costs involved in each solution.
• Then figure out its feasibility .
• Discern the risks and issues associated with each solution.
• Finally, document all this in your business case.

Step 3: Recommend a Preferred Solution

You’ll next need to rank the solutions, but before doing that it’s best to set up criteria, maybe have a scoring mechanism to help you prioritize the solutions to best choose the right one.

Some methodologies you can apply include:

• Depending on the solution’s cost and benefit, give it a score of 1-10.
• Base your score on what’s important to you.
• Add more complexity to your ranking to cover all bases.

Regardless of your approach, once you’ve added up your numbers, the best solution to your problem will become evident. Again, you’ll want to have this process also documented in your business case.

Step 4: Describe the Implementation Approach

So, you’ve identified your business problem or opportunity and how to reach it, now you have to convince your stakeholders that you’re right and have the best way to implement a process to achieve your goals. That’s why documentation is so important; it offers a practical path to solve the core problem you identified.

Now, it’s not just an exercise to appease senior leadership. Who knows what you might uncover in the research you put into exploring the underlying problem and determining alternative solutions? You might save the organization millions with an alternate solution than the one initially proposed. When you put in the work on a strong business case, you’re able to get your sponsors or organizational leadership on board with you and have a clear vision as to how to ensure the delivery of the business benefits they expect.

Our business case template for Word is the perfect tool to start writing a business case. It has 9 key business case areas you can customize as needed. Download the template for free and follow the steps below to create a great business case for all your projects.

One of the key steps to starting a business case is to have a business case checklist. The following is a detailed outline to follow when developing your business case. You can choose which of these elements are the most relevant to your project stakeholders and add them to our business case template. Then once your business case is approved, start managing your projects with a robust project management software such as ProjectManager.

1. Executive Summary

The executive summary is a short version of each section of your business case. It’s used to give stakeholders a quick overview of your project.

2. Project Definition

This section is meant to provide general information about your projects, such as the business objectives that will be achieved and the project plan outline.

3. Vision, Goals and Objectives

First, you have to figure out what you’re trying to do and what is the problem you want to solve. You’ll need to define your project vision, goals and objectives. This will help you shape your project scope and identify project deliverables.

4. Project Scope

The project scope determines all the tasks and deliverables that will be executed in your project to reach your business objectives.

5. Background Information

Here you can provide a context for your project, explaining the problem that it’s meant to solve, and how it aligns with your organization’s vision and strategic plan.

6. Success Criteria and Stakeholder Requirements

Depending on what kind of project you’re working on, the quality requirements will differ, but they are critical to the project’s success. Collect all of them, figure out what determines if you’ve successfully met them and report on the results.

7. Project Plan

It’s time to create the project plan. Figure out the tasks you’ll have to take to get the project done. You can use a work breakdown structure template  to make sure you are through. Once you have all the tasks collected, estimate how long it will take to complete each one.

Project management software makes creating a project plan significantly easier. ProjectManager can upload your work breakdown structure template and all your tasks are populated in our tool. You can organize them according to your production cycle with our kanban board view, or use our Gantt chart view to create a project schedule.

8. Project Budget

Your budget is an estimate of everything in your project plan and what it will cost to complete the project over the scheduled time allotted.

9. Project Schedule

Make a timeline for the project by estimating how long it will take to get each task completed. For a more impactful project schedule, use a tool to make a Gantt chart , and print it out. This will provide that extra flourish of data visualization and skill that Excel sheets lack.

10. Project Governance

Project governance refers to all the project management rules and procedures that apply to your project. For example, it defines the roles and responsibilities of the project team members and the framework for decision-making.

11. Communication Plan

Have milestones for check-ins and status updates, as well as determine how stakeholders will stay aware of the progress over the project life cycle.

12. Progress Reports

Have a plan in place to monitor and track your progress during the project to compare planned to actual progress. There are task tracking tools that can help you monitor progress and performance.

Again, using a project management tool improves your ability to see what’s happening in your project. ProjectManager has tracking tools like dashboards and status reports that give you a high-level view and more detail, respectively. Unlike light-weight apps that make you set up a dashboard, ours is embedded in the tool. Better still, our cloud-based software gives you real-time data for more insightful decision-making. Also, get reports on more than just status updates, but timesheets, workload, portfolio status and much more, all with just one click. Then filter the reports and share them with stakeholders to keep them updated.

13. Financial Appraisal

This is a very important section of your business case because this is where you explain how the financial benefits outweigh the costs. Compare the financial costs and benefits of your project. You can do this by doing a sensitivity analysis and a cost-benefit analysis.

14. Market Assessment

Research your market, competitors and industry, to find opportunities and threats

15. Competitor Analysis

Identify direct and indirect competitors and do an assessment of their products, strengths, competitive advantages and their business strategy.

16. SWOT Analysis

A SWOT analysis helps you identify your organization’s strengths, weaknesses, opportunities and threats. The strengths and weaknesses are internal, while the opportunities and threats are external.

17. Marketing Strategy

Describe your product, distribution channels, pricing, target customers among other aspects of your marketing plan or strategy.

18. Risk Assessment

There are many risk categories that can impact your project. The first step to mitigating them is to identify and assess the risks associated with your project activities.

ProjectManager , an award-winning project management software, can collect and assemble all the various data you’ll be collecting, and then easily share it both with your team and project sponsors.

Once you have a spreadsheet with all your tasks listed, you can import it into our software. Then it’s instantly populated into a Gantt chart . Simply set the duration for each of the tasks, add any dependencies, and your project is now spread across a timeline. You can set milestones, but there is so much more you can do.

You have a project plan now, and from the online Gantt chart, you can assign team members to tasks. Then they can comment directly on the tasks they’re working on, adding as many documents and images as needed, fostering a collaborative environment. You can track their progress and change task durations as needed by dragging and dropping the start and end dates.

But that’s only a taste of what ProjectManager offers. We have kanban boards that visualize your workflow and a real-time dashboard that tracks six project metrics for the most accurate view of your project possible.

Try ProjectManager and see for yourself with this 30-day free trial .

If you want more business case advice, take a moment to watch Jennifer Bridges, PMP, in this short training video. She explains the steps you have to take in order to write a good business case.

Here’s a screenshot for your reference.

Transcription:

Today we’re talking about how to write a business case. Well, over the past few years, we’ve seen the market, or maybe organizations, companies or even projects, move away from doing business cases. But, these days, companies, organizations, and those same projects are scrutinizing the investments and they’re really seeking a rate of return.

So now, think of the business case as your opportunity to package your project, your idea, your opportunity, and show what it means and what the benefits are and how other people can benefit.

We want to take a look today to see what’s in the business case and how to write one. I want to be clear that when you look for information on a business case, it’s not a briefcase.

Someone called the other day and they were confused because they were looking for something, and they kept pulling up briefcases. That’s not what we’re talking about today. What we’re talking about are business cases, and they include information about your strategies, about your goals. It is your business proposal. It has your business outline, your business strategy, and even your marketing plan.

Why Do You Need a Business Case?

And so, why is that so important today? Again, companies are seeking not only their project managers but their team members to have a better understanding of business and more of an idea business acumen. So this business case provides the justification for the proposed business change or plan. It outlines the allocation of capital that you may be seeking and the resources required to implement it. Then, it can be an action plan. It may just serve as a unified vision. And then it also provides the decision-makers with different options.

So let’s look more at the steps required to put these business cases together. There are four main steps. One, you want to research your market. Really look at what’s out there, where are the needs, where are the gaps that you can serve? Look at your competition. How are they approaching this, and how can you maybe provide some other alternatives?

You want to compare and finalize different approaches that you can use to go to market. Then you compile that data and you present strategies, your goals and other options to be considered.

And then you literally document it.

So what does the document look like? Well, there are templates out there today. The components vary, but these are the common ones. And then these are what I consider essential. So there’s the executive summary. This is just a summary of your company, what your management team may look like, a summary of your product and service and your market.

The business description gives a little bit more history about your company and the mission statement and really what your company is about and how this product or service fits in.

Then, you outline the details of the product or service that you’re looking to either expand or roll out or implement. You may even include in their patents may be that you have pending or other trademarks.

Then, you want to identify and lay out your marketing strategy. Like, how are you gonna take this to your customers? Are you going to have a brick-and-mortar store? Are you gonna do this online? And, what are your plans to take it to market?

You also want to include detailed information about your competitor analysis. How are they doing things? And, how are you planning on, I guess, beating your competition?

You also want to look at and identify your SWOT. And the SWOT is your strength. What are the strengths that you have in going to market? And where are the weaknesses? Maybe some of your gaps. And further, where are your opportunities and maybe threats that you need to plan for? Then the overview of the operation includes operational information like your production, even human resources, information about the day-to-day operations of your company.

And then, your financial plan includes your profit statement, your profit and loss, any of your financials, any collateral that you may have, and any kind of investments that you may be seeking.

So these are the components of your business case. This is why it’s so important. And if you need a tool that can help you manage and track this process, then sign up for our software now at ProjectManager .

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