Top 5 Do's And Don'ts For Developing A Bullet-Proof Business Case

Some business units spend years trying to make the case for initiatives they believe will propel performance within their organizations. Even with ample evidence in their favor, and in most instances logic on their side, most requests for resources and projects are unsuccessful.

The next time you find yourself presenting a solution for an upcoming initiative, remember these Top 5 “Do's and Don'ts” to help build a bullet-proof business case:

1.  Making Clear Connections

Do understand how the various dimensions of your business work and how all of the components interact. Develop a performance model or strategy map that ties all of the actions to specific strategies. Then link those strategies across measurable dimensions to assemble a clearly defined grid. Providing this type of model to those who will be evaluating your business case will clearly show the consequences of failing to act, along with the benefits if implemented.

2.  Speaking Management's Language

Don't assume the management team you're presenting your business case to will automatically see the organizational pains even the simplest of problems presents. They are often not close enough to these issues to realize the burdens created. Remember, management is concerned with efficiency, which equates to less cost in the long run, so your problem should be framed accordingly.

3. Welcoming New Ideas

Don't be opposed to new perspectives. Sometimes, you may not be solving the right problem, or you may be approaching the right problem in the wrong way. For example, a business case that was originally developed to champion a new technology solution might better be approached as a case for improving an entire process within the business. Technology then becomes a part of the business process, rather than the sole focus of the solution.

4.  Using Systems Thinking

Do use a process called "Systems Thinking" to rationalize what may otherwise become an emotionally-charged discussion and decision process.  This essentially means thinking about the business problem you’re trying to solve as part of the entire business ecosystem. For your business case to be bullet-proof, you must rely on thorough data collection and sound current/future-state forecasts. In short, the best business case is one that is architected from facts. This will ultimately remove the emotional opinions and political landscapes that may cloud the judgment of decision makers within your organization.

5.  Collaborating

Don't underestimate the importance of collaboration, both within your teams and across the business system. Additionally, limitations on time, resources and expertise can require bringing in outside support to help develop your business case. It's a great opportunity to leverage a third party, which will deliver a factual business case built on unbiased information.  When a potential initiative has stalled in approval process, securing a third party vendor to collect the data and deliver the business case from a non-biased point of view may be all that is needed to finally receive the endorsement to move forward.

All initiatives have degrees of importance in one way or another. Your objective is to identify and communicate them effectively so that the management within your organization can make actionable decisions.

CGN Global  recently helped an industry-leading global insurance provider create a business case securing support for much-needed improvements to the company's claims process. The recommended initiatives posed significant economic benefits for the insurer, including a net present value of $385.7 million over the eight-year planning horizon and improved retention rates. Done right, your business case can bring about much needed change with minimal conflict and maximum gain.

-Ian Hood, Managing Principal, CGN Global