6 Situational Analysis For A Business Case

6 Situational Analysis For A Business Case 1

6 Situational Analysis For A Business Case


Situational Analysis for a business case can be seen as the process of analysing situations around a particular business document and proposals in order to determine whether a project should be executed or not. 


In this article, I want to talk about the situational analysis when Project Managers and Sponsors are considering which project to execute next. 

6 Situational Analysis For A Business Case



The first analysis that a Project Sponsor must do in collaboration with other decision-makers is to look at organisational strategies, goals and objectives. There is a need to ensure that whatever proposal that is been chosen is such that it will assist the organisation in achieving its corporate goals and objectives. Without that, it is just a waste of scarce resources.



Another factor that the Project Manager or the Project Sponsor should consider is the discovery of the problem or major contribution of the Opportunity to the organisation. The Project Sponsor should avoid a situation where the organisation do not understand the problem or opportunity before they embark on the Project. They might end up treating symptoms instead of addressing the main problem.



in carrying out situational analysis for a business case, there is a need for the Project Sponsor and the Project Manager as well as other stakeholders to understand the true situation of things. There is a need for them to do Gap Analysis for the project. This will help them to understand the difference between where the organisation is and where they wanted to be. This will allow the organisation to plan how they intend to arrive at the desired destination. 



Another element of situational analysis for a business case is the identification of known risks for the projects. These are major impediments that will not allow us to achieve the objectives of the projects. This will allow the Project Manager to come up with mitigation strategies for the identified project risks. We have to also note that lesser risks that may not likely affect the project are always placed on “watchlists”.



Another element of Situational Analysis for a business case is the identification of Critical Success Factor for the project. These are major deliverables that the project must achieve before we can conclude that a particular project is successful. You have to agree on what the CSF will be before you proceed with the project.

6 Situational Analysis For A Business Case 2



The last but not the least is the identification of decision criteria that will determine how we will assess various decisions that will be taken for a given problem. the main reason for taking a decision in order to solve a problem or explore an opportunity. You need to decide on what the result of the various decisions will be. This will help you to rate major decisions in a project so as to determine whether they are successful or not. 



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