For a document that has been around for many years, it is surprising how bad and how misunderstood business cases are.
The business case should tell a story, make a ‘case’ for your project or program; yet too many business cases are just a collection of topics with no apparent order that the reader has to decipher. This is one reason why so many business case evaluations are reduced to “What’s the ROI?”
The business case is a selling document; it is the means by which the Project Sponsor (not the project team) argues his or her case for their project; what THEY will deliver in return for the time, funds and resources invested in their project.
The business case is a ‘contract’ in that the Sponsor is contracting to deliver the business case’s value proposition in return for the organization contracting to deliver the funds and resources required. Failure on either side of the contract spells doom for the project and its value.
However, the business case is often thought of as a ‘financial document’; it isn’t. It is a strategy document. The first question to be answered in any business case is, “What and where is this project contributing to our strategy?” Projects are about implementing strategy, not delivering something on time and budget. If your business case is not linked to your strategy, it is of little value.
Often the business case is seen as primarily the means by which the project is justified, the funds and resources acquired and then its job is done. Wrong. The business case’s value proposition is the central focus of the project; nb the project exists to deliver the value proposition.
If we don’t understand the nature and reason for a business case then we’re unlikely to have an effective business case process that selects the right projects.
Subsequent articles in this series will take you through the necessary elements of a business case in preparation for our new book on business cases.
For more information see “The new Project Delivery Science’s Approach to Business Cases – out soon.
© Jed Simms, Project Sponsor Pty Ltd, Australia, 2009
Tags: Project Delivery Science, business case, ROI, Value Proposition
Perhaps part of the problem is the fact that IT often does not recognize what a contract is. I have seen many cases where IT “contracts” to delivery something, but there is no statement of what the client must do for success. The success of the project is dependent on the role the business plays. When the business case only describes one side of the contract, it’s no wonder that IT thinks it has delivered, yet the business is dissatisfied. The same thing is often true of the project plan.
I like the idea of seeing it as a strategy rather than a contract. This would help focus it on business value rather than financials (costs).