Killer Business Case—Focus on Value!

Someone wanted to sell something to me. I asked him to make a business case. Why should I buy from you? His reply, "Our company is the number one in the industry." That is nonsense. I don't buy from the number one ranked company unless I trust who did the ranking. Most rankings are subjective or rigged. I need a solid business case. Where is the beef?

You need to understand what is the customer's value realization, validation, and value optimization. According to Decisionlink, consider these questions:

• What are the key milestones the client wants your offering to achieve?
• What will the client consider a successful implementation of your offering?
• How does the client’s?supervisor?define successful performance?
• What elements of your offering are most important to the client?

“Only 37% of companies measure the business value of their IT-enabled investments.” (AMR Research, Feb. 2010)

Focus on value! Today, "project delivery" is replacing "project management" with the new value delivery system that covers outcomes as well as deliverables of a project. The?new PMBOK? 7 Guide's?pivot from a process focus to a value delivery system is simply a reflection of the global shift in project management itself.?

Business case answers the question, why is this project necessary? Why should we proceed with this idea or project and why now? Why should I buy from you? What is the cost of doing nothing?

"A business case is a documented economic feasibility study used to establish the validity of the benefits of a selected component lacking sufficient definition and that is used as a basis for the authorization of further project management activities." (PMBOK? Guide 6th Edition).

Value measurement is subjective but focuses on the outcome of the deliverable. Sell based on the expected value. Focus on outcomes and value realizations throughout the life cycle of the project. A strong business case should satisfy "BUSINESS STRATEGIC ALIGNMENTS, ASSESSMENT OF RISK EXPOSURE, ECONOMIC FEASIBILITY STUDIES, RETURN ON INVESTMENT, EXPECTED KEY PERFORMANCE MEASURES, ALTERNATIVE APPROACHES, AND EVALUATIONS." (PMBOK 7th Edition)

COMPONENTS OF A STRONG BUSINESS CASE: In making a business case, take note of these interrelated points validated by the highest international project management standards, PMBOK? 7 Guide:

• BUSINESS NEED: This is the rationale for the project or idea you are selling.
• PROJECT JUSTIFICATION: This is why the idea is worth considering and why now. This is where you make your assumptions and develop a cost-benefit analysis.
• BUSINESS STRATEGY ALIGNMENT: This is the ultimate reason for the project. All needs are related to the strategy to achieve value realization.

As a project manager, managing a waterfall project, some of the inputs (necessary considerations) before developing a project charter are a Business Case, Statement of Work, Agreements, Enterprise Environmental Factors, and Organizational Process Assets.

A strong business case builds confidence, demobilizes project resisters, and nay-sayers make tangible project value realizations. I have utilized business cases in all my project delivery and selling. I'm interested in the outcome of the deliverable--the value.

In multi-phase projects, a business case is periodically reviewed to ensure that the project is still on track to deliver business benefits and align with the organizational strategy. Value could be realized at any point before, during, and after the project. If the business case for ANY Project changes during the project life cycle is it time to kill the project? Close it? We are value delivery champions!

Conclusion

Hello, PMBOK 7, I still love PMBOK 6. ?Project delivery is sexier than project management. The project team and stakeholders must understand BOTH the deliverable and the intended outcome from the deliverables. The outcome must be clearly understood, described, and updated throughout the life cycle of the project value creation in other to maximize expected value. Make a business case in all transactions, businesses, and dealings. ?Focus on value.

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