Analysis of business cases to harmonize strategies and budgets

Business kasing is an analysis ordered from a specific example and decision support and planning tools. You can build one for new products, additional building space, IT investment, etc. Any action that will require expenses of time and money can be analyzed. Usually small projects will not be the subject of a full business case, but may still submit to the same process. Each organization will set a ($) threshold that triggers the development process.

Why bother with business cases? Great businesses use it to check the acquisition of large and strategic and business decisions. They usually operate in a complex environment where several options are available and only a few can be chosen and funded. Business cases are a tool used to evaluate an event and allow several options to compare in the format “Apples-to-Apples”.

Small businesses have the same problem: more choices than capital and / or time to execute these options. Decisions and choices must be made, but often small businesses will use decision-making processes based on intuition, request sequences are accepted, individual sales pitch capabilities, etc. None of these methods ensure that business investment decisions are critical. Made in a strict and repetitive way. Without processes and frameworks, businesses can make decisions with incomplete knowledge, disappear analysis, lack of mapping on strategic goals, etc.

The budgeting and funding process that combines business case methodology will also help employees and executives understand what is needed to get budget approval to advance with the initiative. Although it takes a little time to implement the process and bring it into a normal operating procedure, the time is stored in the long run. When people get used to the process and use templates, they will arrive at funding meetings with an analysis at hand that will allow executives to make decisions that are fast and accurate.

The typical components of business cases include: executive summary, objective statements, situations and motivations, goals, time, cost and other financial metrics, assumptions, data sources, scenarios are considered, risk, and recommendations. While other parts are often included, this is the most common.

Most of the lists are rather clear and must be further defined in every organization that implements the methodology. For example, financial analysis must be arranged in a way that suits the company and at the right level. Analysis that is too simple or too complex challenges the validity of the case. Each case must include the same analysis, as much as possible. Having the same analysis allows decision makers to evaluate each initiative and compared to other cases for funding discussions. Templates are also a key component to implement a successful business case methodology. Making general templates ensures that the same type of analysis is included in each case and makes it easier for people to create appropriate business cases.

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