OK, you’ve made it to the end of the project. Now what? Most likely, you’d like to understand what level of success has been achieved. Did you achieve the objective? Was it worth the investment? Suppose all of these things are true; is there still more value to be derived from the project? If you deployed a business case at the outset of the project, you, fortunately, have a ready-made guide to answering these questions. Here’s how (and why) to use the business case to gauge the level of success of a project:

Why Measure?

A successful business case asks, “What happens if we take this action?” It provides reasoning and evidence for choosing one action over another. Without an approach to measuring value, the organization’s various projects cannot be prioritized, and resources cannot be properly allocated.

Estimation is used to forecast the cost and effort involved in pursuing a project and the associated benefits and risks. Reasoning and evidence make a case for choosing one action over another. The business case ensures that decisions are based on evidence and are aligned with the organization’s long-term strategy. This analysis results in projects that are results-oriented and not completion-oriented – projects that bring demonstrated value to your organization.

How to Measure

We measure results not only to answer the question “What did you build?” but also, “Did what you built justify the time and resources to create it?” When deliverables are the focus, the implication is that the project has been successful if they are created – the project was done right. However, the deliverable or technical solution itself does not help the organization if it does not deliver the expected benefits. By spotlighting Key Performance Indicators (KPIs) in your business case, you help to make sure the solution delivers the anticipated benefits – the right project is done. KPIs create a basis for decision-making and help focus attention on what matters most.

Some ways to use KPIs to measure performance include:

• Looking at your business’s financial statements
• Checking customer satisfaction
• Averaging how many new customers you get
• Conducting performance reviews
• Assessing your own expectations

To maximize your KPI-based metrics, be sure to:

• Tie them to strategic objectives.
• Keep things simple. Don’t overload staff with too many KPIs to track.
• Use dashboards to maintain up-to-date data. Be sure your measures include the latest data and are reported promptly within your company.

What to Measure: Output, Outcome, Benefit

There are three measures of a project that support the delivery of project goals: output, outcome, and benefit.

Outputs

Outputs are the actions or items that contribute to achieving an outcome. They monitor “how much” was produced or provided. Momentum worked with one client on a project to digitize a library of hardcopy records. Relevant outputs included:

• Amount of time to retrieve one hardcopy record
• Total processing time
• The volume of requests that could be processed daily
• Size of the backlog

Outcomes

Outcomes are what the business wants or needs to achieve. They should describe what you want to happen after your activity is completed. Outcomes in our hardcopy digitizing project included:

• Less time to retrieve one hardcopy record
• Reduced total processing time
• A greater volume of requests processed daily
• Reduced the size of the backlog

Benefits

Benefits are the measurable improvements resulting from an outcome when one or more stakeholders perceive it as an advantage. Benefits are the advantages and gains that are delivered by the project. Benefits of our hardcopy digitizing project included:

• Increased customer satisfaction
• The ability to process records in a more timely fashion
• Increased workflow efficiency

As you can see, these three elements – outputs, outcomes, and benefits – are interdependent. Each is critical: At the end of the project, the output and the outcome can be fantastic, but no one will care if the benefit does not materialize.

But Wait, There’s More! Lessons Learned

Our hard copy digitization project has ended now. We have accomplished all of the Outputs, Outcomes, and Benefits that the business case set out to achieve. Our client’s KPIs are through the roof, their metrics are better than anticipated, and the team is ready for a well-earned vacation. How can we squeeze even more value out of this project? By conducting a post-mortem that analyzes the business case for lessons learned. Here’s what that looks like:

What worked? A lot on this project went well, so we want to list everything that went well. The digitizing vendor was excellent to work with, staff training went off without a hitch, and data storage and retrieval were seamless.

What didn’t work? While this is hard to admit, even when things go really well, we almost always find things that could have gone better: more people, better tools, better planning, more automation, and better communication… Many of the original hard copy documents had degraded over time on our digitization project. These required special handling to digitize the record while also preserving the document’s integrity.

Document the good and the not-so-good. Be specific and include as much information as possible. Put the documentation in a repository accessible by the next team or another department, company, association, agency, or jurisdiction. Why reinvent the wheel? Use the information for future business cases or projects. Learn from others who have gone before you or have done something similar that you can build on.

Defining Value

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. The business case serves as a compass before, during, and after a project. By using a business case, you ensure that the needs of all stakeholders are met, and ultimate value is realized.

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 that ensure maximum benefits.

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.