5 Reasons Why Every Project Should Have a Business Case

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1-1-2023

It is essential that all businesses and organizations create a business case for each project they agree to undertake.

Any project, big or small, needs a clearly defined business case. It should list the project's objectives, timeline, budget and anticipated results. Having a strong business case is key to ensuring success.

This blog post discusses five key reasons every project should have a business case. We will look at the benefits of writing the business case, aligning it with the corporate strategy, and increasing buy-in from the leadership team and stakeholders.

(When you are done, check out "The Business Case Masterclass" for our next workshops.)

1. Ensures the project is aligned with the corporate strategy

Every project should have a business case to ensure it is correctly aligned with the organization’s strategy.

A business case should be built to identify what value the project will bring to the organization, how it will be delivered, and how it will benefit the organization.

A business case should also include the expected costs, risks, and return on investment. This will help ensure that the project is well thought-out and worth the time and resources invested in it.

What's more, if the project doesn't align with the organization's goals, it may not succeed.

2. Improves organizational decision-making

A business case is essential for ensuring effective decision-making during the project lifecycle.

A business case helps in understanding the project's goals and objectives and its potential risks and benefits.

This information is critical for the decision-makers, who need to make decisions based on actual data and evidence. By providing relevant information to the decision-makers, the business case helps them to weigh the risks and benefits of implementing a particular project. It also helps unify decision-making, as all decision-makers can agree on the same facts and figures.

In addition, a business case allows stakeholders to understand the impact of their input on the project. If they don't know their input, they won't be able to provide valuable feedback.

3. Specifies the outcomes and benefits to be achieved

Reason 3 why every project should have a business case is that it specifies the outcomes and benefits to be realized.

A business case should clearly define the project's expected outcomes and what the project's benefits will be to the organization.

This helps to ensure that the project is focused on achieving the right business objectives and that the resources invested are going to yield real value. It also helps to ensure that the project is tightly aligned with the organization's overall strategic objectives.

As a result, the project team can focus on delivering the desired results rather than spending time on activities that aren't directly related to the project's success.

4. Reduces the risks in delivering the project and achieving the outcomes and benefits

A business case helps reduce the risks involved in delivering the project and achieving the outcomes and benefits.

Outlining the financials and related risks of the project allows the team to understand better the potential benefits and costs associated with the project and make more informed decisions. A business case will also help identify potential risks that need to be mitigated and can be used to evaluate and track project progress.

This provides an added level of assurance that the team is on track and that any potential risks are being managed.

Furthermore, by outlining the risks and benefits of the project, it becomes easier for the team to prioritize these risks and decide which ones require immediate attention.

5. Increases buy-in from the leadership team and stakeholders

Fifth, having a business case in place increases buy-in from the leadership team and stakeholders.

By clearly laying out objectives, risks, and expected returns, the leadership team has a much easier time committing resources to the project. It can assess it against other initiatives to decide where to invest.

In addition, knowing the strategy behind the project and its potential return on investment makes it easier for stakeholders to see the value of the project and provide support.

What's more, when the project team presents the business case, they can answer questions about the project and demonstrate their understanding of the business case. This builds trust between the team and stakeholders.

In conclusion, having a business case for every project is essential. The business case document details the costs, benefits, and risks associated with a project. It also provides evidence that the project is worth its time and resources. It will help organizations make better decisions, stay on track and increase their chances of success. With a business case, organizations can ensure that their projects are strategic, viable and cost-effective. As a result, the organization will have a greater chance of achieving its goals.

The Business Case Masterclass

Develop your ability to think strategically about business cases and how they can be used to drive business decisions.

The Business Case Masterclass is a three-workshop program designed to develop your business case skills and expertise.

Executives and investors want to know how projects, innovations and investments will make money.

The Business Case Masterclass will help you build a stronger business case by providing you with the knowledge, resources and tools you need to develop your capabilities.

The first workshop is our Business Case Foundations to give you a solid foundation for developing the business case.
The second workshop is Financial Analysis in Business Cases for determining the investment and financial value of the business case.
The third workshop is Developing Persuasive Business Cases, documents, pitch decks and presentations.