{"id":436,"date":"2012-09-06T02:42:23","date_gmt":"2012-09-06T02:42:23","guid":{"rendered":"https:\/\/www.subex.com\/blog\/?p=436"},"modified":"2012-09-06T02:42:23","modified_gmt":"2012-09-06T02:42:23","slug":"chasing-the-elusive-business-case","status":"publish","type":"post","link":"https:\/\/dev.enki.studio\/test\/?p=436","title":{"rendered":"Chasing the Elusive Business Case"},"content":{"rendered":"

Let\u2019s say that you\u2019re ready to take the plunge and\u00a0 launch a business optimization project to make the world a better place.\u00a0 You\u2019re convinced that the benefits of the project will be quite compelling.\u00a0 Who could argue the value of reducing revenue leakage, mitigating fraud risk or recovering stranded network assets?\u00a0\u00a0 There\u2019s only one thing standing between you and your dream of making a significant impact to the bottom line\u2014a winning business case<\/em>!<\/p>\n

In times past, the decision to pursue a new project was generally driven by a combination of need and budget.\u00a0\u00a0 If there was a manifest need, and appropriate budget had been allocated, then it was generally a matter of stack-ranking solution alternatives and picking a winner.\u00a0\u00a0 Ah, for the good old days\u2026\u00a0 today\u2019s reality is that Opex and Capex are tightly managed and projects need to sink or swim based on rigorously scrutinized financial metrics such as NPV, ROI and Payback Period.\u00a0\u00a0\u00a0 Business optimization projects that remove costs from operations, improve the leverage of Capex dollars or manage risk more effectively tend to score quite favorably against these metrics compared to many other candidate projects competing for enterprise budget allocation.<\/p>\n

Which brings us back to the business case.\u00a0\u00a0\u00a0 Years ago, when I worked for a major North American operator, the business cases I developed to get IT projects over the line were founded on \u201cguestimates\u201d.\u00a0 Remember those?\u00a0\u00a0 They were cool because everyone knew that once the budgeting exercise was done, and the project approved, no one was going to come back and hold you accountable.\u00a0\u00a0 Remember what I said about the good old days?\u00a0\u00a0 In today\u2019s business climate, defending a business case is akin to defending a master\u2019s thesis.<\/p>\n

In our Managed Services practice, I have spent a lot of time coaching clients on their business cases.\u00a0 Before you read this as \u201chere\u2019s how to overstate the case to bump it to the head of the line,\u201d think again.\u00a0 Executives and finance departments are too savvy.\u00a0 Plus, overstating a case ultimately serves no one\u2019s interest.\u00a0 My approach is to gather the best possible information to produce a solid and realistic case.\u00a0 Look at the business case as a tool\u2014it can help ensure that you are pointing scarce resources in the right direction and may indicate that your original direction needs to be changed.<\/p>\n

Based on my experience, a well-constructed business case should:<\/p>\n