Identify the Need for a Business Case

Depending on the degree of knowledge available at the time of preparation, a business case may contain the following:

• The business objectives and reasons for the project or program, based on defining the present problem or improvement opportunity; and, eliciting and prioritising the requirements of key stakeholders and subject matter experts;
  

• Background information, including the 'current state' of the business and the desired 'future state', including:
  
  • Identification of the organisation's drivers and where improvement is required,
    

  • Identification of the organisation's stakeholders and how they are affected;
    

• Documenting how the project, program, or initiative will add value to the organization, including:
  
  • Identification and classification of the expected benefits of the project, including significant non-financial impacts, and how these will be measured,
    
  • Identification and classification of the expected disbenefits of the project, including significant non-financial impacts, and how these will be measured,
    

  • Planning for benefits realisation;
    

• Assessment metrics such as:
  
  • Financial ratios, IIR, ROI, NPV, BCR, etc.,
    
  • Effects on organisational cash flows over time,
    
  • Total cost of ownership (TCO) / lifecycle costing;
    
  • Opportunity costs,
    

  • Payback period;
    

• A summary of the project, including:
  
  • An assessment of the alternative solutions that were considered,
    
  • The costs -v- the benefits of the proposed initiative,
    
  • The project's budget and cash flow,
    
  • The required timescale of the project,
    
  • An analysis of the risks to completing 100% of the project's goals, and any proposed mitigation.
    
  • The quality criteria for the project's product,
    

  • The key people that are involved in the proposed project and the skills needed to implement the proposed change;
    

• Validation of the data and the assumptions that the projected improvements are based upon, including calculating the level of confidence that can be placed upon the conclusions that are reached;
  

• Formal recommendations for action, including accountabilities and commitments for:
  the delivery of benefits, and the management of costs.