Business Case Analysis for a Better Company
The reason for a business case analysis is to get the most out of any proposal while making sure it is on track with the company’s strategic goals. A business case can be looked at like a blue print of the details that make up a project. By taking a close look at it, upper management can be informed from the start so their approval or denial is based on facts and not innuendos.
Not all reviewers that handle the business case analysis are fully qualified for the task. Many members of upper management come from the financial or sales departments. Their understanding of the manufacturing process is then somewhat limited. Because of this, the project manager must have prepared their business case with this in mind.
In most of the business case analysis that is preformed, the financial numbers are closely scrutinized. The bottom line reason a company is in business is to make money, so this is just fundamental and usually an area that the upper management is very familiar with. This section of the business case needs to be correct. No omissions or fudging of the numbers should be allowed.
If a business case is properly written for the reviewers and their level of understanding and knowledge, there will be very few, if any, questions asked during the business case analysis by them. This is when a project manager did his preparation with the case right. By all questions being answered and problems identified with documented solutions, the process of approval can go on smoothly.
For many reviewers, they wish to check the references of the data during the business case analysis. For this reason, a complete bibliography should be included on all data references at the end of the report. This allows the reviewer the option of checking the sources without having to ask where you got your facts from. This completeness shows, in part, how competent a project manager is in their job.
For all practical purposes, when a business case analysis is underway, the project manager can only wait and hope for its approval. Usually, receiving no news or not being asked more questions indicates a positive result of a project’s approval.