Business Case

A Business Case is a document that justifies the project's benefits and explains why an organization should invest its time and money. It is the primary supporting document for the sponsor, serving as the basis for the decision: "Fund or reject?"

Realism over optimism

The Business Case is drafted during the initiation phase and is uncompromisingly evaluated upon project closure. The most important piece of practical advice? Be critical of the benefits. While costs can be estimated quite accurately, the revenue side often suffers from "rose-tinted glasses." A senior PM knows that excessive optimism in the Business Case is the fastest route to future disappointment for management.

Key pillars of the business case

1. Economic Balance Sheet (Financial Overview)

The template automatically calculates key indicators that are of interest to every CFO:

  • Projected Revenues: Divided into direct revenues (earned during the project) and future revenues (expected after deployment).
  • Costs: These include sales costs for preparation, project-specific costs, and other overheads.
  • Profit and Profitability in %: A clear expression of profitability that establishes a clear order of priority for projects within the portfolio.
2. Description and Rationale

The Story Behind the Numbers. Describe what the case is about and why it is being created. References to external sources, market analyses, or legislative requirements add weight and professionalism to your proposal.

3. Case Risks

What can go wrong? A business case is not just about promises; it is also about a fair admission of risks. We evaluate the product of probability and impact to determine the level of threat. If a risk is too high, it must be reflected in budget reserves or directly in the decision to proceed.

4. Structure of Unit Costs and Revenues

Do not just "shoot" for a total lump sum. The template guides you through a breakdown of the number of units and their profitability/cost-efficiency. It is precisely this detailed perspective that will reveal any potential logical errors in your estimates.

5. Approval process and revisions

The business case is a living document. We record the name of the approver (sponsor) and the date of the last revision. This ensures that we return to the project's economics even during its course if market conditions change.

Projectman Practical Tip

Consider the Business Case as your insurance policy. If you are pushed into changes during the project that would ruin its profitability, you have an approved document to rely on. A well-crafted business case transforms a project manager into a business partner, rather than just a task executor.

At Projectman, we believe that the best projects are those that generate or save money as planned. With this template, you build your projects on foundations that can stand up to even the most demanding investment committee.

Business Case
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