The business case (also called a cost benefit analysis or feasibility study) is a key document and the very basis of many projects and investments. It should provide clear evidence that a project is worthwhile, that the benefits as described are achievable and that the associated costs can be contained. This intensive two-day workshop, aimed at project managers, team leaders and business analysts, covers the entire process involved in justifying a project by means of a business case. It is intended to bridge the gap between the bare-bones technical justification of a project and the expectations of the business users and executives who will approve it.

Course Content

Introduction

• Objectives, contents of workbook and, templates
• What is a business case? When is it required? When should it be reviewed/revised?
• Overview of business case process, roles of business and IT
• Sponsors, stakeholders and other animals
• Case study – stakeholders: identifying the balance of power

Identifying the options

• Defining the problem or opportunity – seeking out the documentation
• Identifying the options, making a framework for structuring the investment decision.
• Screening the options and using the data in later evaluations
• Group case study exercise to review alternatives and set non-quantitative criteria for evaluation.
• Templates: Alternative solutions report; project screening matrix

Building Cost Scenarios

• Defining the various costs that will influence the investment decision
• Direct upfront costs, ongoing costs
• Indirect or hidden costs: initial losses in productivity, support, corporate overheads
• Business/client direct and indirect costs
• Group exercise to identify typical costs from case study
• Template: budget spreadsheet

Defining and Analysing the Benefits

• Defining how to identify both quantitative and qualitative benefits
• Comparative advantages – cost reduction and productivity gains.
• Level-of-service advantages
• Quantifying benefits – tangible and intangible, conditional benefits
• Examples of benefits and measures
• Group exercise to identify major benefits from case study

Risk

• Defining the risk factors affecting investments
• Minimising the risks.
• How to deal with risk in a project or investment. Product, development environment and project risks. Other obstacles.
• Overview of the risk management process: sources of risk in projects, assessing the risks (identifying, evaluating, prioritising and developing a response plan).
• Short group exercise to identify major risks from case study.

Option Analysis

• Choosing the best option
• Understanding the organisation’s goals, priorities.
• Selecting the investment criteria: cost effectiveness, avoided costs, labour cost savings, applying the non-quantifiable factors.
• Nature of cost-benefit evaluations, discounted cash flow explained, examples.
• Group activity – reviewing several cost-benefit alternatives
• Template: discounted cash flow spreadsheet.

Documenting and ‘selling’ the Business Case

• Putting the case together.
• Overview of Business case table of contents, structure.
• Identifying the audience. Finding a champion. Communicating the results.
• Template: table of contents.
• Ongoing reviews
• Making sure that the decision to invest remains valid.
• Structuring the project to include reviews.
• When to review, who to involve.

Wrap up

• Applying this in practice
• Other sources of information
• Other templates

Course Delivery

Seminar/workshop.

Course Outcomes

The course will demonstrate current practices in evaluating investments and IT projects, and the systematic processes required to develop a business case.

Participants will learn:

1. Basic needs and expectations of management for cost and benefit comparisons
2. How to structure and develop a project business case
3. How to develop alternatives for analysis
4. The roles of financial analysis and non quantitative factors in justifying a project
5. What are relevant costs and benefits in comparing alternatives.
6. Alternative methods of analysis
7. How to document and present a business case
8. How to use provided templates and flowcharts to improve existing processes