3 Options To Consider During Business Case Analysis
Business Case Analysis is one of the vital steps that you cannot do without when you need to choose from proposals. In my previous articles, I have defined Business Case as a documented economic feasibility study used to establish the validity of the benefits of a settled component lacking sufficient definition and that is used as a basis for the authorization of further project management activities.
In analysing business cases, organizations have to decide on appropriate steps to take in order to address business problems or opportunities. At times, these options are always defined as business scenarios. There are majorly three options when it comes to business case analysis.
#1 Do nothing
At times, this option may be referred to as ” Business as usual”. When this option is been selected, that means the organization have decided not to take any action as regards the problem or opportunity.
#2 Do the minimum work possible to address the problem or opportunity
When any organisation select this option after any business case analysis, the minimum requirement may be established by identifying the set of documented criteria that are key in addressing the problem or opportunity.
#3 Do more than the minimum work to address the problem or opportunity
This option meets the minimum set of criteria and some or all of the other documented criteria. There may be more than one of these options documented in the business.
Here, the organisation is ready to go the extra mile in order to explore any problem or opportunity to a logical conclusion.
Most at times, after the whole situation has been analysed, there will always be recommendations which include:
#1 Statement of recommendations
The Project Sponsor and other parties that analysed the project will have to decide whether they are not going to do anything about the project or they will have to do the minimum actions possible or they will do more than enough to capitalize on the problem or opportunity.
#2 Analysis items
There are also some vital aspects of the recommendations that will be submitted to decision-makers in the organisation. This might include an analysis result for the potential option.
It might also include constraints, assumptions, risks and dependencies for the potential options. It will also include key performance indicators that will be used to measure the success of the project.
#3 Implementation approach
The recommendations might also include an approach that will be used in addressing the problem or opportunity. It will also include critical milestones for the project, the dependencies for the take as well as roles and responsibilities for the stakeholders on the project.
There will also be an evaluation statement that describes the.plans for measuring benefits the.project will deliver. This should also include any ongoing operational aspect of the recommended option beyond initial implementation.
The business case document provides the basis for measuring success and progress throughout the project lifecycle by comparing the result with the objectives and identified success criteria.
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