1. Name: Date: Author: Version:
business case
Name:
Date:
Author:
Version:

2. how to use
The Business Case helps you to capture the reasoning for starting a project, idea or initiative. It helps you to decide whether an initiative is worthwhile investing in. In a business case you describe the background, resources, benefits and costs, and risks of an initiative. How to use A business case is written to identify a future opportunity that is supported by an analysis of the benefits, risks and costs involved. The business case consists of five main parts: the reasons & goals, the needs, the options, the costs & benefits, and the risks. In addition, you should write a summary highlighting the main findings of the business case. Reasons & goals Explain about the background of the project or initiative. Clearly describe which problem or opportunity is addressed with the initiative. Especially explain why the outcome of the project or initiative is needed. - Why this initiative and why now? - Are there any problems that make this initiative needed? - Is there an opportunity that is addressed by this initiative? - What will be achieved with the initiative? - What are the expected results of the initiative?
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3. how to use
Needs Describe what is needed to make the initiative a success for your business. Describe for instance which resources, partners, delivery structure and monitoring is needed. Who are the stakeholders of this initiative? - What are the stakeholders’ level of interest and attitude towards this initiative? - What are the requirements for implementing this initiative successfully? - What is needed from the business and what is needed from the employees? Options A short description of the different options considered for the project or initiative. There are different options to implement the initiative. Some possible options are: to implement the initiative not at all, to completely implement the initiative, to implement a part of the initiative, to implement the initiative in phases or to implement a minimum of changes. - What are the options for implementing the initiative? - What would the impact of each option be on the business? - What is the planning of the preferred option?
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4. how to use
Benefits & costs The estimated costs should include one-time costs and on-going costs. The estimated benefits should include financial benefits as well as other non-financial benefits. The costs and financial benefits should be expressed in a Return on Investment (ROI) calculation, demonstrating whether the project is profitable or not. In a ROI calculation, a cost/benefit analysis is made. To get a clear idea of the impact of the initiative, create one ROI calculation for the current situation (without the initiative being implemented) and one for the future situation (when the initiative is implemented). A ROI can be made with the Return on Investment Calculator tool. Copy the results to the business case for a good overview of the benefits and costs. Risks Summarize the key risks of the project or initiative. Include risks that might affect time, cost, cash flow, quality, and levels of benefit achieved. Determine for each risk what the impact might be and the probability of the risk occurring. Give a score from 1 (low) to 5 (high) to the impact and probability of each risk. Multiply the score of impact with the score of probability to determine the effect of the risk. The risk with the highest score on effect will have the biggest implication for the initiative.
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5. summary
The summary should provide the reader with a clear understanding of the reasons for the initiative and its outcome
The summary should not contain any information that is not in the body of the business case
The summary should not exceed one page and should be readable on its own
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6. summary

7. Problem or opportunity
reasons & goals
Problem or opportunity
Clearly define the problem or opportunity, which is the cause for this initiative
Describe the impact of the problem or opportunity on your business

8. Problem or opportunity
reasons & goals
Problem or opportunity

9. reasons & goals Goals and objectives
Explain which solution is created by the initiative
Clearly define what is accomplished with the initiative
Describe how the initiative is the answer to the problem or opportunity
Make clear what will not be accomplished with the initiative
Determine what results are desired from the initiative
Create goals out of these desired results

10. reasons & goals
Goals and objectives

11. needs
Stakeholders
Describe who will be involved or influenced by the initiative
Describe which stakeholders have an interest in the initiative
Explain the attitude of the stakeholders towards the initiative

12. needs
Stakeholders

13. Assumptions and requirements
needs
Assumptions and requirements
Describe what is needed from the business to make the initiative successful
(resources such as money, time, materials, machines, housing, etc.)
Describe what is needed from the employees to make the initiative successful
(needed education, time, technical knowledge, etc.)

14. Assumptions and requirements
needs
Assumptions and requirements

15. options
The options
Describe which options there are in implementing the initiative
(in one time, iterative, partially, not at all, etc.)
Explain in short what each option will mean for the initiative and the business
Describe which option is preferred

16. options
The options

17. options
Planning
Provide a planning / timeline for the preferred option
Determine the main steps to be made
Determine who have to be involved at which step
Create a timeline mentioning the main steps and people involved

18. options
Planning

19. costs & benefits
Costs
Describe the financial costs connected to the initiative
(production, resources, machines, materials, etc.)
Describe the non-financial costs connected to the initiative
(reputation, brand, environmental, etc.)
Explain the effect on the costs 5 years into the future

20. costs & benefits
Costs

21. costs & benefits Benefits
Describe the financial benefits connected to the initiative
(revenue, governmental aid, saving of time or space, etc.)
Describe the non-financial benefits connected to the initiative
(brand, image, reputation, effectiveness, responsiveness, etc.)
Explain the effect on the benefits 5 years into the future

22. costs & benefits
Benefits

23. Cost / benefit analysis
costs & benefits
Cost / benefit analysis
Describe how the financial costs and benefits relate to each other
Use a cash flow calculator to determine the profit made after 5 years
Describe the return on investment (ROI) and the payback period
Explain whether the analysis is beneficial to the business or not

24. Cost / benefit analysis
costs & benefits
Cost / benefit analysis

25. risks Risk identification
Identify the major constraints of the initiative
(stakeholder attitude, unrealistic planning, resource limitation)
Describe the risks resulting from the constraints
Think of external risk that might influence the initiative

26. risks
Risk identification

27. risks
Risk analysis
Determine which risks can have the largest result for the initiative
Determine the likelihood that the risk will occur
Determine the impact of the risk on the initiative and business
Write each risk in the table and determine its likelihood and impact with a rate of 1-5 (low-high)
Risk
Likelihood
Impact
Effect (L*I)
Risk 1 4 3 12
Risk 2 1 2
Risk 3 5 10

28. risks
Risk analysis
Risk
Likelihood
Impact
Effect (L*I)