5 Key Components for a Business Case

Building a strong business case is essential for gaining approval and securing resources for any initiative, especially in the current environment.

A well-structured business case not only outlines the value of a proposed project but also provides a clear roadmap for achieving desired outcomes.  

Here are five key components that should be included in any business case: 

1 - Problem Definition 

The foundation of any business case is a clear understanding of the problem that needs to be solved. This section should define the issue, its impact on the business, and why it’s important to address it now. Without a clear problem statement, the options will not be optimised, and stakeholders may struggle to see the necessity of the proposed solution. 

2 - Stakeholders 

Identifying and appropriately engaging with all key stakeholders, both internal and external, is critical. This includes anyone who will be affected by the project, has a role in its execution, or can influence its outcome. Understanding stakeholders’ perspectives helps ensure their needs are understood and considered throughout the process, leading to better engagement and support. 

3 - Strategic Alignment 

Demonstrating how the proposed project aligns with the organisation’s strategic direction is essential to gain approval. This section should identify the key strategic priorities that the initiative will contribute to and articulate how that contribution will be achieved. 

4 - Objectives 

The case should outline the specific, measurable objectives that the project aims to achieve. These goals should overcome the defined problem and be ‘outcome’ focussed so as not to limit the exploration of potential options. Well defined objectives help focus efforts and provide a benchmark for evaluating the project’s impact. 

5 - Options 

A key benefit of a robust business case is the consideration and presentation of different options for solving the problem. This should include a ‘do-nothing’ or a ‘base case’ option.

Summary

Each alternative should be assessed in terms of its relative costs, benefits, risks, and feasibility. Through the comparison of the options the business case preparer can make an informed recommendation and decision-makers can feel confident in selecting the best course of action. 

By including these 5 Key Components, your business case becomes a powerful tool for guiding decision-making, securing buy-in, and driving the success of your initiative. 

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