#147: Building a Better Business Case

building a better business caseThis week on CIO Playbook with Jeffrey Hurley, we discuss building a better business case for your programs and projects. One of the most important components of a project decision process is understanding what it will bring to your organization. I consistently press for managing your project portfolio like you would manage an investment portfolio. To determine if a project should be part of your portfolio you will need to have some form of metric to measure the opportunities you are facing. I am making the argument that building a better business case will give you a consistent metric for determining which projects get investment and which projects do not.

What makes a better business case? I believe it is going beyond just the ROI and payback period to understand the broader business implications. A business case should consist of the following items:

  1. Cost vs, benefit
    1. Three year projection
    2. Hurdle rate analysis
  2. Staffing plans
    1. Full time
    2. Contract
    3. Vendor/Integrator
  3. Location analysis
    1. High cost vs low-cost
    2. Billing allocation
  4. Soft dollar analysis
    1. Revenue preservation
    2. Risk reduction
    3. Sales performance
    4. Business effectiveness
    5. Operational effectiveness
    6. Technology effectiveness

 

Notes:

Photo Credit: Library, MCAD. “Serious Business.” Flickr. Yahoo!, 27 Mar. 2010. Web. 31 May 2015.

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