STEP 11: BUSINESS CASE QUALITY

(Grade A to E, not score)

ARE ALL THE CRITICAL COMPONENTS OF A QUALITY BUSINESS CASE PRESENT?

Look for:

• Clarity
• Accuracy
• Logic
• A sound financial model

CLARITY

Look for a clear and concise presentation:

• Is information boiled down to encourage clear thinking and crisp communication?

• Does the case have an effective summary?
  • Is there an attention-worthy headline?
  • Is there a focus on what's new?
  • Is the "so what" question handled well?
• Is the conclusion and recommended action precise and clear?

ACCURACY

Look for:

• Evidence:
  • Will the solution solve the problem?
  • What is the evidence for this claim?
  • Have the stakeholders approved and committed to the expected benefits of the project?
  • Are data sources identified and documented? What is their quality and diversity?
  • Are distinctions between facts, vendor opinions, and judgments by the business case writer clear?
• Robust assumptions:
  • Are assumptions articulated?
  • Are load-bearing (critical) assumptions highlighted?
  • What is the source of the assumptions? Was there a business discovery to define them? Are the sources credible?
  • Are the assumptions realistic and expressed as a range?

 LOGIC

• Is the case concise and logically argued? Look for logical linkage among:
  • The statement of the problem or needs addressed
  • An explanation of the causes of the problem
  • A complication: why the current situation is unsustainable
  • The recommended solution to the problem
  • The benefits of the recommendation

A SOUND FINANCIAL MODEL

• Is the investment recommendation based on a rigorous and objective NPV assessment? Including:
  • Estimates of incremental cash flows from the project
  • A risk assessment of project cash flows and a determination of the required rate of return (cost of capital)
  • A calculation of the present value of the expected future cash flows
  • A comparison of the cost of the project to what the project is worth: If the project is worth more than it costs(positive NPV), it is worth undertaking
  • IRR calculation
• A payback calculation showing where and when the investment produces positive cash flows
• A complete financial model, including:
  • All benefits, primarily quantitative, but also qualitative
  • Full costs -- including upfront, ongoing, and indirect

BUSINESS CASE GRADE     ____________

Please note that this is a text extract only. The actual page is all-color and fully formatted with illustrations.

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