A project that closes on time, on budget and within scope isn't an instant success. Strategic alignment is another key piece of the puzzle—one project teams can lose sight of as they dive into the daily details.
Clearly defining a project's intended benefits at the outset can help project teams actively advance the organization's strategy. According to PMI's recent Pulse of the Profession® report, The Strategic Impact of Projects: Identify Benefits to Drive Business Results, organizations that frequently identify benefits before the start of a project see 74 percent of initiatives meet goals and business intent. In comparison, only 48 percent of projects deliver similar results when organizations don't have this practice in place.
Incorporating a business-case template into the initiation process can help project teams gather the information they need to make the right decisions as projects move forward. At the global financial research firm MSCI, for instance, “a business case is part of the due diligence process,” says Jayant Patil, PMP, vice president, MSCI, Mumbai, India. “By measuring the benefits, costs and risks associated with the investment being made, you can best assess and evaluate the options available to solve the business issue.”
“A business case is part of the due diligence process.”
—Jayant Patil, PMP, MSCI, Mumbai, India
At MSCI, the business-case template relies on information gathered to address several issues, including explaining why the project is necessary, recommending business solutions, defining organizational benefits, determining how much money, resources and time are necessary, identifying risks and measuring the financial impact.
“A solid business case for a potential project helps secure funding and a committed sponsor for it,” Mr. Patil says. “It also helps in correct prioritization of the projects. This is a mechanism through which organizations decide and implement their business strategy.”
But project leaders by themselves can't define how business cases are developed. Formalizing and implementing a standardized template requires cooperation from sponsors and other key stakeholders, as well as strong collaboration between project managers and business analysts. Introducing a template that engages players across the organization adds time to the process, but ultimately leads to a stronger business case that produces better results, says Ken Watson, PMP, business-case team leader for the U.S. Department of Transportation's Federal Aviation Administration (FAA), Atlanta, Georgia, USA.
“Going with the opinions of a few people would certainly be quicker, but the conclusions you come to may not be the best,” Mr. Watson says. “It's amazing how differently everyone views the project when you have a strong businesscase process in place.”
“When stakeholders take the time to talk through every aspect of the project, everyone agrees on the assumptions about project outcomes before you begin.”
—Newman Serrano, PMP, Unisys Brazil, Belo Horizonte, Brazil
Collaborative conversations with key stakeholders help ensure all project needs and risks are identified and give the team a chance to address any outstanding concerns before moving forward. These might include financial constraints, timing issues, technology challenges or talent gaps, says Newman Serrano, PMP, project director, Unisys Brazil, Belo Horizonte, Brazil.
“When stakeholders take the time to talk through every aspect of the project, everyone agrees on the assumptions about project outcomes before you begin,” he says. That creates alignment on goals from the outset and ensures teams have buy-in from stakeholders before moving ahead.
Rolling out a business-case template can reduce the burden on project leaders by empowering lower-level team members to think more strategically. A standardized process gives every team the ability to create a solid project plan, regardless of its business expertise.
It Takes Two
Business analysts play an important role in refining a project's strategic goals and benefits, says Ken Watson, PMP, businesscase team leader for the U.S. Department of Transportation's Federal Aviation Administration, Atlanta, Georgia, USA.
Although the roles of the business analyst and project manager typically don't overlap when business cases are being developed, the two work hand in hand. While the project manager focuses on the big picture, the business analyst focuses on analyzing data and technical writing, he says.
“Our business analysts act as interpreters or translators,” Mr. Watson says. “They have the special ability to listen to stakeholders and convert jargon into a common language.”
“Our business analysts … have a special ability to listen to stakeholders and convert jargon into common language.”
—Ken Watson, PMP
This is especially useful when decision-makers aren't familiar with the specifics of the project in question—like when a government agency has to ask lawmakers to support a specific initiative. “The easier our business cases are to understand, the greater chance we have to get funding,” Mr. Watson says.
Collaboration between project owners and business analysts yields a clearer view of the strategic benefits for the business, says Janette Sakamoto, PMP, human resources business leader, Unisys Brazil, São Paulo, Brazil. At Unisys Brazil, it results in an exchange of information, knowledge and understanding about how business, technical and management domains can help build the right business case, she says.
“Business analysts can see the pros and cons for the proposed solution not only in terms of costs, risks and governance, but also regarding the accountancy management, competitive advantages and other business aspects.”
The FAA's business-case template has two primary sections that help teams build a strong business case. The first outlines the problem to be solved and the proposed solution. “This section includes all of our assumptions, data about current conditions, constraints, risks and any evaluation criteria we used to come up with this plan,” Mr. Watson says. The second section includes alternatives, including other potential solutions—and the potential impact of doing nothing at all.
The Texas Department of Public Safety in Austin, Texas, USA has a similar business-case template for all major projects overseen by the enterprise project management office (EPMO). The template requires project owners to outline how the project will meet specific state needs, says Jessica Ballew, deputy assistant director of policy and planning. It asks a series of questions to stakeholders, including subject matter experts and service providers, such as, “What will the project involve? Who are the key stakeholders? What resources will the project require?”
“Answering the questions is an iterative process, as each subject matter expert provides their perspective.”
—Jessica Ballew, Texas Department of Public Safety, Austin, Texas, USA
