Leadership and executive teams always want to understand the benefits that a project will bring to their organization in terms of a return on investment (ROI), and improvements to business operations and products or services offered. A Project Manager can draft their project proposal in a business case document and present it to the executive sponsor along with the teams that will play a role in obtaining approval such as PMOs, finance teams, etc.
To boost the odds of getting your project approved and funded, you need to have a complete business case that, at a minimum, includes the:
- project goals and objectives
- budget and cost estimates
- ROI
- high-level risks
- alignment with corporate strategy
Business cases are normally used during the beginning of a net-new project, or when requesting for additional funding to an existing project. In the case of newer projects, some research will need to be performed so that more details can be added to the business case; for this reason, they are typically not completed in a single day because of the incremental nature of how they are drafted.
Below are some of the examples on how a Project Manager can draft a business case that will considerably help get their projects approved.
Utilize a Standardized Business Case Template
Templates are vital because they help organize information in a systematic way for each company. It becomes difficult for executive sponsors or project review committees to understand project proposals if they are all written in different formats and don’t convey the same aspects that will be used in justifying the approval of the projects. In the event a template does not exist, the Project Manager should create one and work with the PMO to standardize it across the entire department. There are also plenty of templates online that can be easily adopted and used to keep the process smooth.
Emphasize the Business Problem
Companies are always faced with competing projects which make it harder to justify the approval of one at the expense of the other. A top Project Manager must put great emphasis on the business problem or opportunity that their project will address and how its implementation will generate immense benefits to the company. This section of a business case should include input from the research performed by the Project Manager that will help solidify the justification of the project’s approval.
Illustrate the Implied Return on Investment (ROI)
Leadership teams today want to avoid investing in projects that do not have a measure of financial profit (or loss avoidance) as they relate to the cost of the project. To make your project a viable prospect for investment, your business case should always include:
- a positive ROI
- methods used in calculating the ROI
- a timeline for the realization of the ROI
Effectively Promote your Business Case
Now that you have drafted your business case and included all the relevant aspects pertaining to the proposal and business justification, your job is still not done. As a Project Manager, you must schedule sessions or attend the meeting with the project review committees so that you can convincingly argue for the merits of your project. Simply drafting and submitting a business case document may not be enough in some cases and you should take every opportunity to verbally explain the merits of your project, its alignment to the corporate strategy, and how it will benefit the company.
At PM Imperative, we cover the latest trends in Project Management and Product Management. As PM practitioners, we understand the value the Project Managers and Product Managers bring to each organization and that’s why we focus on the most practical strategies that Project and Product Managers can implement immediately. If you found this post useful, be sure to check out our latest book: The PM Imperative – Guide for Leading & Managing Projects, People & Delivering Value. https://pmimperative.com/shop/
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