When you think of your business case as the means to justify the funds you want you’ll stop looking for benefits as soon as you have enough benefits to pass the ROI/NPV or alike hurdle. This approach is all wrong.
You commission projects to deliver the benefits - all of the benefits. You therefore need to identify all of the benefits - not just ‘enough’ benefits - and then plan to deliver them.
Your business case needs to focus on and define
- the desired business outcomes - the business end states to be delivered and measured as achieved - your primary measure of success
- the associated business benefits - whether financial or not, but all measurable - your secondary measure of success
- the resultant financial benefits value and their ‘value drivers’ - the elements that make up the quantification bases, some of which may legitimately change during the project and, therefore, need to be tracked - your ultimate ‘scorecard’
- the outcomes (and benefits) roadmap that shows the dependencies and timing of the value’s delivery - the why and when of benefits delivery
Only when you’ve defined your project’s business value should you define your project delivery approach and costs (that allow you to calculate the resultant ROI/NPV). This is the exact opposite of the traditional approach to business cases — but it works exceptionally well.
When you take TOP™’s value driven approach to business cases
- the identified and quantified benefits value increases - often by a minimum of 25% but can be over 100%.
- you may end up with ‘too many benefits’ - which is a nice problem to have!
- you have a clear, agreed, specific business value basis for planning, managing and governing the project - and measuring its success.