Introduction
Every organization, whether small or large, embarks on projects to achieve specific objectives. The success of these projects, however, is not guaranteed. Statistics show that over 50% of projects fail to meet their objectives, with the root cause being attributed to a lack of proper business case development. A strong business case outlines the reasons behind the project, the expected benefits, and the potential risks. In this blog article, we will explore the importance of a strong business case in attaining project success.
The Benefit of a Business Case
A business case is a document that outlines the reason(s) behind a project, what it aims to achieve, and how it will be accomplished. A well-developed business case is essential for successful project delivery because it ensures that everyone involved in the project is on the same page and understands what needs to be done.
A strong business case will help the team avoid deviations from the project objectives and helps uncover potential risks. The document also helps to set timelines and determine the cost of the project. Besides, it outlines a plan for stakeholder management and communication.
Elements of a Strong Business Case
A strong business case must contain specific elements to help decipher the project’s viability and potential for success. These elements include:
The Problem Statement
This section outlines the problem the project aims to solve. It should be clear and concise and should describe the project’s purpose.
The Expected Benefits
This section outlines the result(s) the project aims to achieve. It should paint a clear picture of benefits such as increased productivity, higher revenue, or cost savings.
The Alternatives Considered
This section outlines the alternatives that were considered before settling on the current project idea. It explains why the current project was preferred over other possible options.
The Project Plan
This section is the core of the business case, outlining how the project is to be accomplished. It should contain timelines, resources required, and cost projections.
Risks and Issues
This section outlines the potential risks associated with the project and how they can be mitigated. It also lists any issues that could arise and how they will be dealt with.
Examples of Projects with Strong Business Cases
Projects that started with a strong business case are more likely to achieve their objectives. Let’s review two examples of how a strong business case supports project success:
Coca-Cola Freestyle Drink Machine
Coca-Cola identified that customers wanted more beverage options to meet their unique tastes. They created a project idea to redevelop drink machines that would allow users to mix various flavors in exciting ways. In the business case, they outlined the project’s benefits to include customer satisfaction, increased sales, and operational efficiency. With a clear plan, the machine became a business success, increasing sales by 15%.
Delta Air Lines Operations Center
Delta Air Lines identified that their operations center, responsible for managing the airline schedule, was outdated. They created a project idea to update their technology to improve operational efficiency, which included a modern dashboard display. In the business case, they outlined the project cost and timeline and the benefits they were expecting to receive, which included enhancing customer satisfaction and increasing revenue. The project was completed on time, and there was a 90% reduction in delays and cancellations.
Conclusion
In sum, a strong business case is vital in achieving project success. By clearly outlining the reason behind the project, expected benefits, potential risks, project plan, and alternatives considered, the team can be aligned and focused on the project objectives. Furthermore, by referencing successful projects that started with a sound business case, it’s evident that taking the time to develop an outstanding business case is a worthwhile investment.
