It can be tempting to dive headlong into an exciting new project or initiative without taking the time to fully evaluate its organizational utility. After all, when time and money are of the essence, who wants to add a layer to the project process? But a business case offers an easy framework under which decisions about proposals can be made to make sure those decisions target your organization’s opportunities while addressing its challenges. A business case is a critical tool that simplifies decision-making and adds value to your project process.

Let’s explore what a business case is and just why it is so important.

What Is a Business Case?

The business case describes the “why” for your proposal. It states the end goal and the planned benefits of the proposal. Finally, it justifies spending time, staffing, money, and other resources on the project. Whatever the proposal, taking the time to flesh out a business case can help focus the resulting project.

How often have you seen an organization rush to adopt a new product or process that promises the world? Do those adoptions sometimes yield disappointing results, perhaps not really doing what the organization hoped it would do? As consultants, we are often called in to do one project, only to learn that the project is not the right project for the client. The real problem might be misidentified, or the scope of its solution might not be fully understood. Without a qualifying case for the project, it’s hard to know if the solution really solves the problem. In some situations, an organization might not even know the real source of problems and risks investing in a solution to the wrong problem.

A business case substantiates the answer to the real problem. It gives decision-makers the information they need to decide – whether to risk spending resources to achieve an expected benefit or pass.

When Is a Business Case Used?

Is a business case used before, during, or after a project? Actually, a business case is used during all stages– before, during, AND after. The business case is the catalyst to get the project started and is used continuously throughout the project’s life and beyond. It is vitally important to all stakeholders in the project, acting as a guidebook to the project’s success. The business case provides benefits at every project stage and carries value far beyond the initial decision and justification.

Before

Before you initiate work on a project, the business case helps everyone agree on the problem. Writing the business case forces you to lay out your business objectives. What do you want to achieve? How will you know the problem is solved? The business case shows everyone how you expect to achieve the organization’s business objectives.

Once written, the business case provides a foundation for prioritizing projects. Most organizations have a never-ending “to-do” list and a very limited capacity for projects. The limit may be on how much project time staff can absorb or how much funding is available for new projects, but it’s there, nonetheless. Having a way to prioritize projects helps to ensure that the organization works on the projects that truly make the most sense. By offering a priority ranking, the business case helps justify the investment in this project.

The business case also helps ensure full buy-in on the project, focusing your entire team on the end goal and the problem you are trying to solve.

During

Anyone who’s worked on a project, especially something that moves very fast or takes a great deal of time to complete, knows that it’s easy to lose sight of the bigger picture. It’s important to focus on the day-to-day business. However, it is just as important to look at the big picture during routine checkpoints.

The business case helps by providing a compass for the project. The team can revisit the business case at given checkpoints and ask themselves if the project is still focused on solving the problem. Often, projects fail because the business keeps moving the goalposts. The business case helps fix the goalpost in place, serving as a useful reminder to decision-makers about the project’s original intent and approach as the work progresses.

We have all had a project into which we’ve poured resources only to learn that the problem we’re addressing is only a symptom of a much larger problem. The project may be done right but not yield the expected results because it wasn’t the right project. Building a business case at the outset of a project helps get to the root causes of business challenges. You truly understand the initial problem and can develop corrections that keep your original goal in sight.

After

OK, you’ve made it to the end of the project. Now what?

Once the project is complete, the business case again serves as a compass point for the team to measure the project’s success. Did the project achieve the business objectives? Was the cost worth the benefits? Did you use the organization’s resources wisely? And most importantly, was the problem solved?

How Can You Put A Business Case To Work For Your Organization?

By making sure to deploy one for your next major project! We’ll dive into the “how” of writing a good business case in a future post.

Are you ready to jump on a project now and need help making a case for it? A business consultant can be an invaluable asset when analyzing root causes, assessing the value of a potential solution, and recommending meaningful adjustments to keep projects on track.

This post was adapted from a Momentum white paper, The Importance of a Business Case: Define the Problem, Identify Solutions, Justify Decisions. Contact us to read the white paper or learn more about working with a consultant to build a strong business case.