Your business case will identify the benefits you expect to gain by undertaking a project. Define business benefits in measurable terms as metrics are the cornerstone of any effort to deliver quantifiable value.
Business Case: Metrics
Use this process of defining metrics to answer the following questions:
- Identify the primary business objectives, for example, reduce costs, increase sales, develop market share
- How to accomplish this, for instance, reducing labor and/or business costs associated with certain steps of a related process
- How to measure the effectiveness of the initiative, such as reduction in cost per unit of output for the process
Business Case: Examples of Expected Benefits
Business benefits may be realized in different ways, such as:
- Increased market share
- Improve customer service
- Reduced customer complaints
- Less employee turnover and staff attrition
- Faster turnarounds for product development
- Higher sales numbers for new or existing products
Business Case: How to Capture Expected Benefits
The simplest way to capture the Expected Benefits is to create a table, either in your Microsoft Word or Excel template, and create three columns.
In the table, create columns for:
- Benefit – identify the benefit you want to track
- Benefit measurement – discuss how will measure the benefit
- Benefit tolerance +/- – identify the tolerance when measuring the benefit
Business Case Benefits: Qualitative v Quantitative
To make the Business Case more convincing to the readers, show how the project’s benefits will be delivered in measurable terms against the current situation.
Benefits should be:
Benefits should be aligned your corporate strategy. Set tolerances for each benefit and for the aggregated benefit. Then close the document by identifying where they benefits will be realized during the project execution.
About the Author: Ivan Walsh is a Business Consultant who has worked for IBM, Intel and the DOJ in the US, UK and China. Get his Business Case Templates here.