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- Project Management
The Power of the Use Case
by Kathleen Carroll | Updated Aug. 5, 2022 - First published on May 18, 2022
Image source: Getty Images
Unless your business is a true trailblazer, you’re probably doing something another business is doing. We’re sure you’re doing it better, of course. This practice places you on the map in an area labeled, "Here there be dragons." Having automatic or un-thought-out practices -- like those you borrow from an industry standard -- is dangerous. You might fall prey to the Pot Roast Principle.
As the legend goes, a young bride was making an inaugural dinner for her husband. She made pot roast -- his favorite. She chopped off one end of the roast and discarded it, placed the rest in a roomy pan with vegetables and seasoning, and slid it into the oven.
The new groom hesitantly asked why she threw away the end piece (it was his favorite part). "That’s how my mother always made it," his wife explained. But her curiosity was piqued and she asked her mother about it the following week. "That’s how my mother always made it," she replied.
Now intrigued, the pair telephoned Grandma, asking for an explanation. "I had to chop off the end," she said. "I never had a pot big enough for the whole thing."
Business is hard. It’s tempting to make some of your decisions via shortcut. "That’s how the competition does it," you might think, or worse, "That’s how we’ve always done it." But fear not: Use cases can be a mighty dragon slayer, and this article will show you how to use them.
Overview: What is a use case?
Use cases have their roots in software and systems engineering. In the ancient days of telecom development, an engineer at Ericsson recognized the Wild West approach to designing systems and software was expensive and inefficient. He proposed a blueprint-based method of looking before leaping, which developed into the use case model we recognize today.
Use cases blossomed with the advent of agile software development and its incursion into broader business management. While we now talk about systems use cases, business use cases, essential use cases, and even something called Use Case 2.0, all have the same core elements. It turns out a good way of developing software is also a good way of doing business.
4 benefits of use case modeling
You may wonder why you should add another task to your already voluminous to-do list. After all, use cases don’t write themselves. Use case modeling takes time, effort, and planning. But used properly, use cases can also save you time and effort -- and lots of rework. Use cases have many benefits, including these.
1. Simplify complex projects
A use case outlines a single function. If you are planning a large project with multiple components, a use case brings an essential discipline that requires breaking down the project into discrete tasks. Not only can this make it easier to grasp the entire project, but it can also help identify aspects with no value for the user -- functions you may not need at all.
2. See things from the user’s (or customer’s) point of view
While we all know we should be doing this in every aspect of our business, it's easy to overlook what a customer needs or expects. Whether your customer is a buyer of your company’s goods or services or an internal customer -- another department, perhaps -- a use case will keep that person’s needs at the top of the priority list.
3. Streamline project tracking
Since each use case solves a customer issue, all the use cases in your bigger projects bring value to your customer. Breaking them out into discrete functions helps to define and clarify that value so you can focus on what the end user really wants and not be distracted by tasks that add more work than value.
4. Sidestep expensive errors
Part of developing a use case is to think carefully about how your end product, process, or service should work. Along the way, you’ll brainstorm about possible pitfalls. By considering what might go wrong before you begin, you’ll have a plan in place for even worst-case scenarios.
How to employ a use case
Writing a use case is simple, but it’s not easy. For an existing process, you have to be willing to break your system down into its smallest components and examine how each functions. For a new process or product, you have to be wildly creative and imagine every possible glitch, slowdown, or source of dissatisfaction. Make sure to rope in the relevant stakeholders and approach this as you would any project management process .
Your use case design will probably be unique to your business, but every use case will have at least three elements:
- A user, or actor: The individual whose viewpoint you’ll consider.
- A goal: What your user is hoping to achieve.
- A system: The process that will allow your user to achieve their goal.
The system is where you will spend most of your time, but it's essential to precisely define and consider all three of these. And while your use case will help you in project planning, it's a project in itself. You’ll want to use project management best practices as you work.
1. Define your user
You’re going to look at everything from the user’s point of view, so it’s essential you define your user. A website’s users are its visitors -- simple enough. But who is the user for your new marketing software? Are you hoping it will make things easier for your sales team?
Will it integrate with invoicing, inventory, and accounting systems? You might have many kinds of users for a single product or process, and you’ll want to drill down and make sure your new initiative works for each type of user.
2. Determine your user’s goals
With a new website, what do your visitors want from your site? Are they looking for your physical address or a phone number? Do they want to know more about your products? Or is the site itself a product, such as a video streaming site or a social network? And, if so, what do those users want to accomplish when they visit?
Your product might serve many needs; in that case, you’ll need many use cases -- one for each type of user and each goal. A Netflix user may want to watch movies, but he or she might also want to update their account settings or add a user profile. Your use case will ensure they're able to accomplish all their goals easily.
3. Map out each step of the user’s journey
If your restaurant is adding a drive-through, drive through! Consider how a customer will access the ordering point and place your menu there, rather than deciding based on the current location of your deep fryer or landscaping.
Is the signage visible from tall SUVs and tiny subcompacts? Are your menu options clear? Is payment quick? Measure ticket times for all menu items and all traffic situations. Consider what impact weather might have (is there a roof over your order point and windows?), and imagine what your customers might need beyond menu items (utensils, napkins, condiments).
A business use case diagram depicts a model of several Image source: Author
business use cases
(goals) which represents the interactions between a restaurant (the business system) and its primary stakeholders (
business actors
business workers
). Source: Wikimedia Commons.
Do all this on paper first -- this is the beauty of the use case. Sample other drive-throughs and see what works and what doesn’t. Brainstorm how your restaurant can satisfy your customers’ unmet, and even unspoken, needs. Erase the bad ideas and pencil in the good ones -- it’s a lot easier to redraw a diagram than to cut a new window in your building.
It’s important at this step to consider both how the user will probably proceed, and also how the user might proceed -- an alternate flow. In the drive-through case, what happens if your customer decides they want fries at the pay window? What will you do if someone walks into your drive-through? Each use case scenario can provide valuable insights into how your whole system should work.
4. Repeat for each user
As shown in the diagram above, a restaurant has many transactions and many users. The customer is always your primary user, but a system that doesn’t work for the kitchen or wait staff will soon fail the customers as well.
Consider what steps a server must take during the dining experience. Are resources (water, glasses, flatware) placed in the best spot, or must a server make several trips to several areas to collect what’s needed? Is your ordering system easy for servers to use -- and does it provide clear directions to your kitchen staff?
Then walk through the chef’s process. Do the same for your bartender, bussers, maitre d', valets, and managers.
5. Refine user relationships
Let’s stick with our restaurant example. You’ve considered each user’s goals and mapped out the process they’ll use to reach their goals. But you’ll see a lot of overlap, and you might also see conflict.
Examine any of these touchpoints, and try to find a solution that meets everyone’s needs. For example, the kitchen staff would probably find it easier to make just one dish all night, and your wait staff might be ready to jump on that train too, but your customers probably won’t bite. Your system refinement should allow for variety for your customers, clarity for your servers, and efficiency for the cooks.
6. Run a trial
Give your restaurant or hotel a soft launch to shake out any hitches, beta test that software, and test market your new product. Even the most creative team can misjudge how a new system fares in the real world.
Plan your trial run early in the process so you can fix any glitches at minimal cost and delay. If you use project management software , let it help you automate workflows and simplify team communication as you refine your product.
2 use case examples
Intro business classes will often illustrate the use case concept with an oversimplified example -- making a peanut butter and jelly sandwich, for example, or filling a gas tank. These are useful because they show the granularity you need when developing a use case. Making a sandwich isn’t one step -- it’s many, and you need to document each one.
Here are some real-world examples of when use cases saved the day -- or when they could have, had they been implemented.
1. Do you really need that?
If you’re lucky enough to be starting from scratch, you can devise a use case for every process in your business. Sometimes, though, a use case comes into play with a system or product you’re already using. A use case can help at any point in your project life cycle . That’s as it should be -- never stop looking critically at your systems just because they seem to be OK. If it ain’t broke, fix it anyway.
As an example, Elisha Otis’s 1850s safety elevator was a tech breakthrough, but elevators still needed some expertise to run smoothly. Uniformed elevator operators filled the bill, but they still continued in service well after automatic elevators had become the norm.
For decades, department store patrons and luxury high-rise residents had scads of awkward encounters directing attendants, often still full-time and liveried, to push a button. That’s a high price to pay for what had become a low-value service.
Does your business have no-value-added holdovers? A use case can help sniff them out and streamline your practices. If you’re familiar with lean business principles, you may already have a head start on identifying blockages in your value stream.
2. Speed up that horse!
A quote (probably inaccurately) attributed to Henry Ford states, "If I had asked people what they wanted, they would have asked for a faster horse."
While the term use case hadn’t yet been coined, Ford was employing the same instinct when he went beyond what people said they wanted. The prevalence of horses blinded most people to the underlying need. People didn’t need horses; they needed transportation.
In the agile world, identifying the user’s raw need is called a "user story." It’s not the same as a use case, but it can be an important first step in developing one. Make sure you know what your users want, and then build your use case to map out, step-by-step, how your new product or process will provide it. Your user story is the big picture; a use case is the road map that gets your user to their goal.
Make use of the use case
You wouldn’t head out on a cross-country road trip without a map, and you wouldn’t build a house without a blueprint. A use case helps you anticipate and prepare for problems so you can move your project forward with confidence.
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The beginner’s guide to writing an effective business case
Nearly every project needs to be approved—whether that means getting the simple go-ahead from your team or gaining the support of an executive stakeholder. You may be familiar with using a project plan or project charter to propose a new initiative and get the green light for a project. But if your proposed project represents a significant business investment, you may need to build a business case.
If you’ve never written a business case, we’re here to help. With a few resources and a little planning, you can write a business case that will help you get the resources and support you need to manage a successful project.
What is a business case?
A business case is a document that explains the value or benefits your company will gain if you pursue a significant business investment or initiative. This initiative can be anything from the messaging for a new product or feature launch, a proposal to increase spend on a current initiative, or a significant investment with a new agency or contractor—to name a few. A compelling business case will outline the expected benefits of this significant investment decision. Key stakeholders will use the business case you provide to determine whether or not to move forward with an initiative.
If you’ve never created a business case, it may sound similar to other early project planning documentation. Here’s how it stacks up:
The difference between a business case and business plan
A business case is a proposal for a new strategy or large initiative. It should outline the business needs and benefits your company will receive from pursuing this opportunity.
A business plan , on the other hand, is an outline for a totally new business. Typically, you’d draft a business plan to map out your business strategy, your mission and vision statements, and how you’re planning on getting there. There may be a case where you create a business plan for an already-existing business, but you’d only do so if you’re trying to take your business in a significantly new direction.
Business case vs. executive summary
Business case vs. project charter.
If you need to create an elevator pitch for your project but you don’t quite need the full business case treatment, you might need a project charter. Much like a business case, a project charter outlines key details of an initiative. Specifically, a project charter will cover three main elements of your project: project objectives, project scope, and key project stakeholders. Your management team will then use the project charter to approve further project development.
Do you need a business case?
Not every project needs a business case—or even a project charter. Plan to build a business case only for initiatives or investments that will require significant business resources. If you’re working on a smaller initiative, consider creating a project charter to pitch your project idea to relevant stakeholders.
Even if you don’t need to pitch your project to any stakeholders, you should be ready to answer basic questions about your proposed project, like:
What is this project’s purpose?
Why are we working on this project?
How does this project connect to organizational goals and objectives?
Which metrics will we use to measure the success of the project ?
Who is working on this project?
When is this project going to be completed?
5 steps for creating and pitching a business case
Your business case shouldn’t just include key facts and figures—it should also tell a story of why pursuing a particular investment or initiative is a good idea for your business. When in doubt, avoid jargon and be brief—but always focus on communicating the value of the project. If this is your first time creating a business case, don’t worry. Follow these five steps to create a solid one.
1. Gather input
You don’t have to write a business case on your own. Instead, make sure appropriate team members and stakeholders are contributing to the relevant sections. For example, the IT team should be involved in any tooling and timeline decisions, while the finance team should review any budget and risk management sections. If you’re creating a business case to propose a new initiative, product line, or customer persona, make sure you also consult subject matter experts.
2. Plan to write your business case out of order
Some of the first things that appear in your business case—like your executive summary—should actually be drafted last, when you have all of the resources and information to make an informed suggestion. Your executive summary will present all of your findings and make a recommendation for the business based on a variety of factors. By gathering all of those details first—like project purpose, financial information, and project risk—you can ensure your executive summary has all of the relevant information.
3. Build your business case incrementally
A business case describes a significant investment for your company. Similarly, simply writing a business case is a significant investment of your time. Not every initiative is right for your business—so make sure you’re checking your work with stakeholders as you go. You don’t want to sink hours and weeks into this document only for it to be rejected by executive stakeholders right off the bat.
Consider doing a “soft launch” with an outline of your business case to your project sponsor or an executive stakeholder you have a good relationship with to confirm this initiative is something you should pursue. Then, as you build the different sections of your business case, check back in with your key stakeholders to confirm there are no deal-breakers.
4. Refine the document
As you create sections of your business case, you may need to go back and refine other sections. For example, once you’ve finished doing a cost-benefit analysis with your financial team, make sure you update any budget-related project risks.
Before presenting your business case, do a final read through with key stakeholders to look for any sections that can be further refined. At this stage, you’ll also want to write the executive summary that goes at the top of the document. Depending on the length of your business case, your executive summary should be one to two pages long.
5. Present the business case
The final step is to actually present your business case. Start with a quick elevator pitch that answers the what, why, and how of your proposal. Think of this presentation as your chance to explain the current business need, how your proposal addresses the need, and what the business benefits are. Make sure to address any risks or concerns you think your audience would have.
Don’t go through your business case page by page. Instead, share the document with stakeholders before the presentation so they have a chance to read through it ahead of time. Then, after your presentation, share the document again so stakeholders can dig into details.
A business case checklist
Start with the why.
The first section of the business case is your chance to make a compelling argument about the new project. Make sure you draft an argument that appeals to your audience’s interests and needs. Despite being the first section in your business case, this should be the last section you write. In addition to including the traditional elements of an executive summary , make sure you answer:
What business problem is your project solving? This is your chance to explain why your project is important and why executive stakeholders should consider pursuing this opportunity.
What is your business objective ? What happens at the end of a successful project? How will you measure success—and what does a successful project mean for your business?
How does this business case fit into your overall company business strategy plan? Make sure your proposed business case is connected to important company goals . The initiative proposed in your business case should move the needle towards your company's vision statement .
Outline financials and the return on investment
At this point in your business case, you should outline the project finance fundamentals. Don’t expect to create this section on your own—you should draft this in partnership with your company’s finance team. In particular, this section should answer:
How much will this project cost? Even if the initiative is completely new to your company, do some research to estimate the project costs.
What does each individual component of the project cost? In addition to estimating the total overall cost, break down the different project costs. For example, you might have project costs for new tools and resources, competitive intelligence resourcing, agency costs, etc.
What is the expected return on investment (ROI)? You’ve talked about the costs—now talk about how your company will benefit from this initiative. Make sure to explain how you calculated the ROI, too.
How will this project impact cash flow? Cash flow is the amount of money being transferred into and out of your business. Significant investments are going to cost a lot of money, so they’ll negatively impact cash flow—but you should also expect a high ROI, which will positively impact cash flow.
What is the sensitivity analysis? Sensitivity analysis is a summary of how uncertain your numbers are. There will be a variety of variables that impact your business case. Make sure to explain what those variables are, and how that could impact your projections.
Preview project details
Your business case is proposing a new initiative. In addition to the financial risks, take some time to preview project details. For example, your business case should include:
Your project objectives and key project deliverables . What will happen at the end of the project? What are you expecting to create or deliver once the project is over?
Your project plan . A project plan is a blueprint of the key elements your team needs to accomplish in order to successfully achieve your project goals.
The project scope . What are the boundaries of your project? What exact goals, deliverables, and deadlines will you be working towards?
A list of relevant project stakeholders . Who are the important project stakeholders and key decision makers for this work? This can include the members of the project team that would be working on this initiative, executive stakeholders who would sponsor the project, and any external stakeholders who might be involved.
A general project roadmap in a Gantt-chart like view. At this stage in the process, you don’t need to provide a detailed project timeline, but you should outline a general sense of when each project stage will happen in relation to the others. To do this, create a project roadmap in Gantt-chart like software . Make sure to include any important project milestones in your roadmap as well.
Any important project dependencies. Is there anything that would get in the way of this project getting started? Does this work rely on any other work that’s currently in flight?
Discuss project risks
Once you’ve outlined the financial impact and important project details, make sure you include any potential project risks. If you haven’t already, create a project risk management plan for your business case. Project risk management isn’t the process of eliminating risk—instead, it’s about identifying, analyzing, and proactively responding to any potential project risks. Clearly defining each project risk and how that risk might impact your project can best equip you and the project team to manage and avoid those risks.
In the risk section of your business case, include:
A risk analysis of any potential project risks. What is the risk? How likely is it to happen? What is the priority level of this risk?
What, if any, assumptions you are making. In project risk management, assumptions are anything you think will be true about the project, without those details being guaranteed facts. Basing project decisions around an assumption can open your project up to risk. Make sure you ratify every project assumption to avoid jeopardizing project success.
Any comparable alternatives in the market. If you’re writing a business case to pitch a new product or angle in the market, evaluate anything that already exists. Could the alternative impact your financial assessment or project success?
Develop an action plan
In the final section of your business case, outline how you will turn this business case into an actionable project. This section should answer questions like:
How will decisions be made? Who is responsible for the project? Who is the project sponsor? If you haven’t already, consider creating a RACI chart to outline project responsibilities.
How will progress be measured and reported? Not every project stakeholder needs to be notified of every project change. Outline key parts of your project communication plan , as well as how you’ll communicate project status updates .
What is the next course of action? If the management team ratifies this business case, what next steps will you take to put this into action?
Bring your business case to life
You’ve built a solid business case and it’s been ratified—congratulations! The next step is to bring your business case to life. It can be intimidating to initiate large-scale change , and implementing your business case is no exception.
If you haven’t already, make sure you have a project management tool in place to manage and organize your new initiative. With a central source of truth to track who’s doing what by when, share status updates, and keep project stakeholders in the loop, you can turn a great business case into a successful project.
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How to Write a Business Case (Template Included)
Table of Contents
What is a business case, how to write a business case, business case template, watch our business case training video, key elements of a business case, how projectmanager helps with your business case.
A business case is a project management document that explains how the benefits of a project overweigh its costs and why it should be executed. Business cases are prepared during the project initiation phase and their purpose is to include all the project’s objectives, costs and benefits to convince stakeholders of its value.
A business case is an important project document to prove to your client, customer or stakeholder that the project you’re pitching is a sound investment. Below, we illustrate the steps to writing one that will sway them.
The need for a business case is that it collects the financial appraisal, proposal, strategy and marketing plan in one document and offers a full look at how the project will benefit the organization. Once your business case is approved by the project stakeholders, you can begin the project planning phase.
Projects fail without having a solid business case to rest on, as this document is necessary to start the project and it’s the base for the project charter and project plan. But if a project business case is not anchored to reality, and doesn’t address a need that aligns with the larger business objectives of the organization, then it is irrelevant.
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Use this free Business Case Template for Word to manage your projects better.
The research you’ll need to create a strong business case is the why, what, how and who of your project. This must be clearly communicated. The elements of your business case will address the why but in greater detail. Think of the business case as a document that is created during the project initiation phase but will be used as a reference throughout the project life cycle.
Whether you’re starting a new project or mid-way through one, take time to write up a business case to justify the project expenditure by identifying the business benefits your project will deliver and that your stakeholders are most interested in reaping from the work. The following four steps will show you how to write a business case.
Step 1: Identify the Business Problem
Projects aren’t created for projects’ sake. They have a goal. Usually, they’re initiated to solve a specific business problem or create a business opportunity.
You should “Lead with the need.” Your first job is to figure out what that problem or opportunity is, describe it, find out where it comes from and then address the time frame needed to deal with it.
This can be a simple statement but is best articulated with some research into the economic climate and the competitive landscape to justify the timing of the project.
Step 2: Identify the Alternative Solutions
How do you know whether the project you’re undertaking is the best possible solution to the problem defined above? Naturally, choosing the right solution is hard, and the path to success is not paved with unfounded assumptions.
One way to narrow down the focus to make the right solution clear is to follow these six steps (after the relevant research, of course):
- Note the alternative solutions.
- For each solution, quantify its benefits.
- Also, forecast the costs involved in each solution.
- Then figure out its feasibility .
- Discern the risks and issues associated with each solution.
- Finally, document all this in your business case.
Step 3: Recommend a Preferred Solution
You’ll next need to rank the solutions, but before doing that it’s best to set up criteria, maybe have a scoring mechanism to help you prioritize the solutions to best choose the right one.
Some methodologies you can apply include:
- Depending on the solution’s cost and benefit, give it a score of 1-10.
- Base your score on what’s important to you.
- Add more complexity to your ranking to cover all bases.
Regardless of your approach, once you’ve added up your numbers, the best solution to your problem will become evident. Again, you’ll want to have this process also documented in your business case.
Step 4: Describe the Implementation Approach
So, you’ve identified your business problem or opportunity and how to reach it, now you have to convince your stakeholders that you’re right and have the best way to implement a process to achieve your goals. That’s why documentation is so important; it offers a practical path to solve the core problem you identified.
Now, it’s not just an exercise to appease senior leadership. Who knows what you might uncover in the research you put into exploring the underlying problem and determining alternative solutions? You might save the organization millions with an alternate solution than the one initially proposed. When you put in the work on a strong business case, you’re able to get your sponsors or organizational leadership on board with you and have a clear vision as to how to ensure the delivery of the business benefits they expect.
Our business case template for Word is the perfect tool to start writing a business case. It has 9 key business case areas you can customize as needed. Download the template for free and follow the steps below to create a great business case for all your projects.
One of the key steps to starting a business case is to have a business case checklist. The following is a detailed outline to follow when developing your business case. You can choose which of these elements are the most relevant to your project stakeholders and add them to our business case template. Then once your business case is approved, start managing your projects with a robust project management software such as ProjectManager.
1. Executive Summary
The executive summary is a short version of each section of your business case. It’s used to give stakeholders a quick overview of your project.
2. Project Definition
This section is meant to provide general information about your projects, such as the business objectives that will be achieved and the project plan outline.
3. Vision, Goals and Objectives
First, you have to figure out what you’re trying to do and what is the problem you want to solve. You’ll need to define your project vision, goals and objectives. This will help you shape your project scope and identify project deliverables.
4. Project Scope
The project scope determines all the tasks and deliverables that will be executed in your project to reach your business objectives.
5. Background Information
Here you can provide a context for your project, explaining the problem that it’s meant to solve, and how it aligns with your organization’s vision and strategic plan.
6. Success Criteria and Stakeholder Requirements
Depending on what kind of project you’re working on, the quality requirements will differ, but they are critical to the project’s success. Collect all of them, figure out what determines if you’ve successfully met them and report on the results.
7. Project Plan
It’s time to create the project plan. Figure out the tasks you’ll have to take to get the project done. You can use a work breakdown structure template to make sure you are through. Once you have all the tasks collected, estimate how long it will take to complete each one.
Project management software makes creating a project plan significantly easier. ProjectManager can upload your work breakdown structure template and all your tasks are populated in our tool. You can organize them according to your production cycle with our kanban board view, or use our Gantt chart view to create a project schedule.
8. Project Budget
Your budget is an estimate of everything in your project plan and what it will cost to complete the project over the scheduled time allotted.
9. Project Schedule
Make a timeline for the project by estimating how long it will take to get each task completed. For a more impactful project schedule, use a tool to make a Gantt chart , and print it out. This will provide that extra flourish of data visualization and skill that Excel sheets lack.
10. Project Governance
Project governance refers to all the project management rules and procedures that apply to your project. For example, it defines the roles and responsibilities of the project team members and the framework for decision-making.
11. Communication Plan
Have milestones for check-ins and status updates, as well as determine how stakeholders will stay aware of the progress over the project life cycle.
12. Progress Reports
Have a plan in place to monitor and track your progress during the project to compare planned to actual progress. There are task tracking tools that can help you monitor progress and performance.
Again, using a project management tool improves your ability to see what’s happening in your project. ProjectManager has tracking tools like dashboards and status reports that give you a high-level view and more detail, respectively. Unlike light-weight apps that make you set up a dashboard, ours is embedded in the tool. Better still, our cloud-based software gives you real-time data for more insightful decision-making. Also, get reports on more than just status updates, but timesheets, workload, portfolio status and much more, all with just one click. Then filter the reports and share them with stakeholders to keep them updated.
13. Financial Appraisal
This is a very important section of your business case because this is where you explain how the financial benefits outweigh the costs. Compare the financial costs and benefits of your project. You can do this by doing a sensitivity analysis and a cost-benefit analysis.
14. Market Assessment
Research your market, competitors and industry, to find opportunities and threats
15. Competitor Analysis
Identify direct and indirect competitors and do an assessment of their products, strengths, competitive advantages and their business strategy.
16. SWOT Analysis
A SWOT analysis helps you identify your organization’s strengths, weaknesses, opportunities and threats. The strengths and weaknesses are internal, while the opportunities and threats are external.
17. Marketing Strategy
Describe your product, distribution channels, pricing, target customers among other aspects of your marketing plan or strategy.
18. Risk Assessment
There are many risk categories that can impact your project. The first step to mitigating them is to identify and assess the risks associated with your project activities.
ProjectManager , an award-winning project management software, can collect and assemble all the various data you’ll be collecting, and then easily share it both with your team and project sponsors.
Once you have a spreadsheet with all your tasks listed, you can import it into our software. Then it’s instantly populated into a Gantt chart . Simply set the duration for each of the tasks, add any dependencies, and your project is now spread across a timeline. You can set milestones, but there is so much more you can do.
You have a project plan now, and from the online Gantt chart, you can assign team members to tasks. Then they can comment directly on the tasks they’re working on, adding as many documents and images as needed, fostering a collaborative environment. You can track their progress and change task durations as needed by dragging and dropping the start and end dates.
But that’s only a taste of what ProjectManager offers. We have kanban boards that visualize your workflow and a real-time dashboard that tracks six project metrics for the most accurate view of your project possible.
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If you want more business case advice, take a moment to watch Jennifer Bridges, PMP, in this short training video. She explains the steps you have to take in order to write a good business case.
Here’s a screenshot for your reference.
Transcription:
Today we’re talking about how to write a business case. Well, over the past few years, we’ve seen the market, or maybe organizations, companies or even projects, move away from doing business cases. But, these days, companies, organizations, and those same projects are scrutinizing the investments and they’re really seeking a rate of return.
So now, think of the business case as your opportunity to package your project, your idea, your opportunity, and show what it means and what the benefits are and how other people can benefit.
We want to take a look today to see what’s in the business case and how to write one. I want to be clear that when you look for information on a business case, it’s not a briefcase.
Someone called the other day and they were confused because they were looking for something, and they kept pulling up briefcases. That’s not what we’re talking about today. What we’re talking about are business cases, and they include information about your strategies, about your goals. It is your business proposal. It has your business outline, your business strategy, and even your marketing plan.
Why Do You Need a Business Case?
And so, why is that so important today? Again, companies are seeking not only their project managers but their team members to have a better understanding of business and more of an idea business acumen. So this business case provides the justification for the proposed business change or plan. It outlines the allocation of capital that you may be seeking and the resources required to implement it. Then, it can be an action plan. It may just serve as a unified vision. And then it also provides the decision-makers with different options.
So let’s look more at the steps required to put these business cases together. There are four main steps. One, you want to research your market. Really look at what’s out there, where are the needs, where are the gaps that you can serve? Look at your competition. How are they approaching this, and how can you maybe provide some other alternatives?
You want to compare and finalize different approaches that you can use to go to market. Then you compile that data and you present strategies, your goals and other options to be considered.
And then you literally document it.
So what does the document look like? Well, there are templates out there today. The components vary, but these are the common ones. And then these are what I consider essential. So there’s the executive summary. This is just a summary of your company, what your management team may look like, a summary of your product and service and your market.
The business description gives a little bit more history about your company and the mission statement and really what your company is about and how this product or service fits in.
Then, you outline the details of the product or service that you’re looking to either expand or roll out or implement. You may even include in their patents may be that you have pending or other trademarks.
Then, you want to identify and lay out your marketing strategy. Like, how are you gonna take this to your customers? Are you going to have a brick-and-mortar store? Are you gonna do this online? And, what are your plans to take it to market?
You also want to include detailed information about your competitor analysis. How are they doing things? And, how are you planning on, I guess, beating your competition?
You also want to look at and identify your SWOT. And the SWOT is your strength. What are the strengths that you have in going to market? And where are the weaknesses? Maybe some of your gaps. And further, where are your opportunities and maybe threats that you need to plan for? Then the overview of the operation includes operational information like your production, even human resources, information about the day-to-day operations of your company.
And then, your financial plan includes your profit statement, your profit and loss, any of your financials, any collateral that you may have, and any kind of investments that you may be seeking.
So these are the components of your business case. This is why it’s so important. And if you need a tool that can help you manage and track this process, then sign up for our software now at ProjectManager .
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How To Write the Perfect Business Case
Why do too many projects fail to deliver their objectives even though project management best practices appear to be used? Project management is naturally complicated, but it can be disastrous if you don’t have sufficient buy-in from the right parties. Writing a strong and complete business case can make all the difference.
In this how-to guide you will discover,
- What is a business case?
Why you need a business case
- Is the project worth doing?
When to use a business case
How to write a business case, the business case template, a business case example, 1. the executive summary, 2. the finance section, 3. the project definition, 4. project organization, managing the business case, making the case, frequently asked questions, what is a business case.
A business case is developed during the early stages of a project and outlines the why, what, how, and who necessary to decide if it is worthwhile continuing a project. One of the first things you need to know when starting a new project are the benefits of the proposed business change and how to communicate those benefits to the business.
While the project proposal focuses on why you want a project, it will only contain an outline of the project:
- business vision
- business need
- expected benefits
- strategic fit
- products produced
- broad estimates of time and cost
- and impact on the organization
In contrast, the business case, which is first developed during the project initiation phase , contains much more detail. It should be reviewed by the project sponsor and key stakeholders before being accepted, rejected, canceled, deferred, or revised.
Depending on the scale of the business change, the business case may need further development as part of a detailed investigation. Therefore, it should be developed incrementally so that time and resources aren’t unnecessarily wasted on the impractical.
Preparing the business case involves an assessment of:
- Business problem or opportunity
- Costs including investment appraisal
- Technical solutions
- Impact on operations
- Organizational capability to deliver the project outcomes
These project issues are an important part of the business case. They express the problems with the current situation and demonstrate the benefits of the new business vision.
The business case brings together the benefits, disadvantages, costs , and risks of the current situation and future vision so that executive management can decide if the project should go ahead.
Many projects start life as a walk in the fog, which is fine in itself, but never see the light of day or stumble along aimlessly for too long because the clarity of scope , time-scale, cost, and benefits are not defined adequately during the first stages of the project.
Is the project worth doing
Why are you starting a project? Chances are you’re doing it because you need to solve a problem.
Usually, the problem is something that gets in the way of achieving your goals . So, it seems a project is about achieving goals and your goals won’t be realized unless you deal with the problem (or opportunity or circumstance.)
If a project is worth doing you need to answer 4 simple questions:
- What is your goal?
- What’s stopping you from reaching the goal?
- How much change is needed to overcome the problem?
- Are you certain this will solve the problem?
Can you answer these questions quickly? Do you have evidence to support or refute your assumptions?
If not, it may not be worth starting a project.
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The business case is needed when resources or expenditure on a project has to be justified. Approval is usually sought from the project sponsor and other interested parties. For instance, the finance function may authorize funds and the IT department provide resources.
The purpose of the business case is communication. Therefore, each section should be written in the parlance of the intended audience.
Moreover, it should only contain enough information to help decision making. When writing a business case keep the following in mind:
- Be brief and convey only the essentials.
- Make it interesting, clear, and concise.
- Eliminate conjecture and minimize jargon.
- Describe your vision of the future.
- Demonstrate the value and benefits the project brings to the business.
- Ensure consistent style and readability.
The project sponsor is responsible for preparing the business case. However, all appropriate team members should contribute to its development. Likewise, subject matter experts from other functions ― finance, HR, IT, service delivery, and so on ― can provide specialist information.
Those writing the business case should have a thorough understanding of the project’s aims and be able to merge the varied and potentially complex plans into one document using the following business case template.
What follows are the four steps to writing a business case template for your project. It includes the following four sections:
- Executive Summary
- Project Definition
- Project Organization
This example of a business case is a simplified version for a small company with few staff. The bigger the project, the bigger the risk, which means the more detail you will need to provide for your investors and stakeholders.
EXECUTIVE SUMMARY
In 2021, retail e-Commerce revenue reached 768 billion US dollars. People are expecting more digital experiences and want to interact and purchase what they need online.
Our current website is just a static page with no interaction available to possible customers. With a website upgrade to incorporate an e-Commerce store, we can entice users to purchase all their training online, in return increasing productivity and efficiency within the office. An estimated $25,000 could be saved a year through this upgrade.
1.1 Financial Appraisal
The expected cost of the new website is $15,000 with a $500 annual maintenance fee.
The training costs of the staff is estimated at $2,000, but the reduction of administration and manual handling of orders is estimated to save $25,000 annually.
1.2 Sensitivity Analysis
The alternatives include:
- Maintaining the current system, which costs $25,000 annually to maintain and run.
- Upgrading the website, but not including an e-Commerce store. This would cost $6,000, but the cost of processing the orders is still $25,000.
- Outsourcing the training purchases to a third-party site, which would cost between $49.99 - $100 per month. In the long run this would cost more and offer less development scope.
2. PROJECT DEFINITION
2.1 Background information
The World is digitizing and we, as a business, must keep up with consumer demand if we are to remain one of the most sought-after training providers.
Since 2020 and the outbreak of Covid-19, many more people have been working remotely and wish to access their training requirements online. We need to update our systems to provide our customers with a purely online system that can provide them with their required training courses in a virtual environment, from purchase through to attendance. This new e-Commerce website is the first step in this process.
2.2 Business Objective
The goal is to provide an online platform where customers can purchase their training requirements.
The solution is to build an e-Commerce website.
This syncs with the business strategy, as it will increase efficiency and profits.
2.3 Benefits and Limitations
The benefits of this project far out-weigh the negatives. They include:
- Improvement in the quality of customer service and user journey
- Increased conversion rate through streamlined processes
- Cost savings through efficiencies
- Reduced working capital
- Increase in revenue generated
- Remain competitive in a digital world.
The limitations of this project remain with staffing, as we do not have a web designer or developer within our company, meaning this will still have to be outsourced if anything arises at a future date.
2.4 Option Identification & Selection
Options for the e-Commerce site include the following:
- WordPress website with WooCommerce store
- All-in-one website hosted on e-Commerce platform such as Shopify
- Use of third-party payment system, such as Stripe, PayPal, or Worldpay
- Ability to take payments directly through the website and acting as controller and processor of user’s sensitive data
- Inclusion of a blog
- Integration of CRM platform.
2.5 Scope, Impact, and interdependencies
The website will be built independently from the current site, so will not affect any current processes or user experience.
2.6 Outline Plan
The website will be built by an external agency and will take around 6 months to complete and push live.
One month before going live the staff will undertake essential training.
2.7 Market Assessment
Since retail e-Commerce has risen to $768 billion US Dollars, it’s time we also made the move to online sales.
2.8 Risk Assessment
The project will be completed out of house.
2.9 Project Approach
The project will be managed out of house.
2.10 Purchasing Strategy
We will enter a contractual agreement with the creative agency. Attached is a copy of the proposed contract.
3. PROJECT ORGANIZATION
3.1 Project Governance
Project will be managed by the agency and in-house by the Centre Executive.
3.2 Progress Reporting
The agency will report to the Centre Executive.
Depending on the length of the business case you may want to include a high-level summary of the project.
The executive summary is the first section of the business case and the last written. It is a short summary of the entire business case. It succinctly conveys vital information about the project and communicates the entire story to the reader.
First impressions are important. Get this right!
The finance section of an effective business case is primarily for those who approve funding. The finance function will be interested in this plus the first half of the project definition.
Financial appraisal.
When you prepare the financial appraisal seek advice on content and presentation from the finance function. In the case of capital developments, consult subject matter experts.
The purpose of a financial appraisal is to:
- Identify the financial implications for the project
- Compare project costs against the forecast benefits
- Ensure the project is affordable
- Assess value for money
- Predict cash flow.
Sensitivity analysis.
Sensitivity analysis concerns project risk and looks at alternative futures by measuring the impact on project outcomes or assumptions of changing values in which there is uncertainty.
In effect, sensitivity analysis lets the project accountant experiment with possible scenarios.
This is the largest part of the business case and is for the project sponsor, stakeholders, and project team. It answers most of the why, what, and how questions about your project.
Background information.
The purpose of this section is to give a clear introduction to the business case and project. It should contain a brief overview of the reasons why the project or business change has come about: the problem, opportunity, or change of circumstances.
If necessary, refer to related programs, projects, studies, or business plans.
Business objective.
This part describes why you are doing the project. The business objective answers the following questions:
- What is needed to overcome the problem?
- How will the project support the business strategy?
Benefits and limitations.
The benefits and limitations section describes the financial and non-financial benefits in turn. The purpose is to explain why you need a project.
For instance, to:
- Improve quality
- Save costs through efficiencies
- Reduce working capital
- Generate revenue
- Remain competitive
- Improve customer service
- Align to corporate strategy
The business case should also include any limitations since these present potential risk to the project.
Option identification and selection.
Identify the potential solutions to the problem and describe them in enough detail for the reader to understand.
For instance, if the business case and proposed solution makes use of technology, make sure to explain how the technology is used and define the terms used in a glossary. Since most problems have multiple solutions an option appraisal is often needed. This will explore the potential solutions and recommend the best option.
When writing the initial business case, the option appraisal is likely to contain a long list of options and will cover many possibilities. As the project continues a few options will be rejected. The final business case may contain three to five options ― the short list ― that includes a do nothing or benchmark option.
Scope, impact, and interdependencies.
This section of the business case template describes the work needed to deliver the business objective and identifies those business functions affected by the project.
Moreover, the project scope, impact, and interdependencies section should state the project’s scope and boundaries. It describes what is included and what is excluded plus the key interdependencies with other projects. It is important for the business case to consider the failure of other interrelated projects and show how such dependencies make impact benefits.
Outline plan.
The outline plan provides a summary of the main activities and overall timescale ― project schedule ― for the project.
A project should be divided into stages with the decisions to make preceding each stage. Use this section to answer the following questions:
- What is required?
- How is it done?
- Who does what?
- When will things happen?
This outline plan lists the major deliverables and includes a brief project description plus accountabilities for each activity.
Market assessment.
It is important that the business case provides its readers with a thorough assessment of the business context ― the market assessment. In other words, make the underlying business interests explicit.
Therefore, the market assessment should show a complete understanding of the marketplace in which your business operates.
A good starting point is the inclusions of a PESTLE ― political, economic, sociological, technological, legal, and environmental ― analysis.
Risk assessment.
The risk assessment summarizes the significant project risks and opportunities and how they are managed. Include any risks that could arise from your project, as well as the organization’s ability to deliver change.
This section answers the following questions:
- What risks are involved?
- What are the consequences of a risk happening?
- What opportunities may emerge?
- What plans are in place to deal with the risks?
- Every project should include a risk log
When writing a business case, make sure this is included as it explains how risk and opportunity are managed.
Project approach.
The project approach describes how the project is tackled. That is, the way in which work is done to deliver the project.
For instance, a project with much of the work contracted out is likely to take a different approach to a project that develops an in-house solution.
Purchasing strategy.
This section describes how a project is to be financed and whether a decision to buy, lease, or outsource should be taken by the organization before purchasing.
Moreover, the purchasing strategy should describe the purchasing process used. A formal procurement process may save time and money and reduce project risk.
The last section of the business case template is of most interest to the project manager, project team, and managers responsible for delivering work to the project. This project organization section describes how the project is set up.
Project governance.
This section of the business case template shows the reader how the project is structured and the different levels of decision-making. Usually, a business will already have implemented a project governance framework that will support the project through each stage.
If your organization does not use a structured project management process framework use this section to include:
- Roles and responsibilities (RACI Chart)
- Project tolerances
- Project standards
- Review points
- How decisions are made.
Progress reporting.
Finally, the business case should define how project progress is recorded and the project board updated on project performance. Usually, the project manager does this by preparing a concise progress report or highlight report at regular intervals.
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The completed business case provides structure for the project and project organization throughout the project lifecycle . Therefore, it should be used routinely for reference and not consigned to the shelf.
Accordingly, the project sponsor and project board should review and update the business case at key stages to check that the project remains viable and the reasons for doing it are still valid. Ideally, the review should take place before starting a new stage to avoid unnecessary investment in time and money.
In this article we showed you how to write a business case. We covered a lot of ground and may give the impression that the resulting business case is a large and unwieldy document.
This is not the case.
A business case should be concise and to the point. For small projects it may run to a few pages. For larger projects and complex business change endeavors the document will be large.
Therefore, be sure to keep the intended audience in mind when preparing each section and include supporting information in an appendix.
For instance, the option appraisal section may summarize each option with the details contained elsewhere for reference.
To conclude, the purpose of a business case is to outline the business rationale for undertaking a project and to provide a means to continually assess and evaluate project progress.
What is the difference between a business case and a business plan?
The focus of the business case is an action, which is usually the purchase of capital equipment or a service. In comparison, the focus of the business plan is to outline the future of a business proposal, it’s margins, revenue growth over several years and what the business goals and strategies will encompass.
What should be included in a business case?
Writing a business case can seem like a daunting task, which is why we have provided you with a business case template and example to help you make a start.
The four sections include:
What is a business case template?
A business case template provides you with a structure and format to present your case to relevant stakeholders and investors. It’s essential that this document communicate the essence of your project’s goals and benefits, while aligning with the company’s strategies and objectives.
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Your use case design will probably be unique to your business, but every use case will have at least three elements: A user, or actor: The individual whose viewpoint you’ll consider. A...
A use case is a description of the ways in which a user interacts with a system or product. A use case may establish the success scenarios, the failure scenarios, and any critical variations or exceptions. A use case can be written or made visual with the help of a use case model tool. The history of the use case
Business cases are prepared during the project initiation phase and their purpose is to include all the project’s objectives, costs and benefits to convince stakeholders of its value. A business case is an important project document to prove to your client, customer or stakeholder that the project you’re pitching is a sound investment.
When to use a business case How to write a business case The business case template A business case example 1. The Executive Summary 2. The Finance Section 3. The Project Definition 4. Project Organization Managing the business case Making the case Frequently asked questions What is a business case