Tag Archives: Business cases

To be persuaded, the reader must see and must care

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hearts-and-mindsWhether you are writing marketing copy, a business proposal or a new procedure you expect people to follow, you need to touch both your reader’s heart and their mind in some way. Impersonally presented facts or reasons, no matter how clearly they are presented, are not strong enough to move people away from their existing way of thinking or behaving.

How many facts that you have already seen or heard today? If you’ve browsed a news website or walked past some billboards, you will have seen multiple facts. Most of those will have washed over you – you see them but you don’t care. You only become interested in stories when they connect with your interests or something you are passionate about. Similarly, just presenting bland facts to your readers is useless if they don’t care.

Well reasoned writing is not sufficient. Our minds are stuffed with facts, and most of them we need to ignore in order to function sanely. If facts are connected in some way to our vital interests or sympathies, then we’ll pat attention. So, find out what is important to your readers, and relate your facts and your arguments to that.

On the other hand, merely stirring the emotions is very unwise if there is no solid reasoning to back up your position. Stirred emotions can arouse suspicion about a proposal or persuasive document, and tell our reason to investigate further. Emotions can create discomfort and paralyse action if they are out of step with our reason.

Emotional writing is not sufficient. It is folly to stir emotions that cannot be justified by rational facts and argument.

(built on ideas from Don Pfarrer; Guerrilla Persuasion)

Outline of an effective business case – IT example

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This example outline uses the familiar Situation, Complication, Question, Answer structure for business proposals.

The context is a large company in the finance industry implementing cloud technology for software development (referred to as virtual environments).

Note the power of ‘talking headings‘ – you’ll get the gist of the proposal just by reading these headings.

Executive summary

‘Virtual Environments’ open new opportunities

A transformational change plus tangible benefits

1 Situation: Solid technology underpins the business

1.1 Supporting a business with purposeful intent

1.2 Robust technology base

1.3 Sound controlled change methodology

2 Complication: Changing our technology is cumbersome

2.1 Shared and limited number of traditional environments

Development must be completed within a fixed window

Delays in one release impact future releases

Changes to one project impacts all other projects in the release

Production support is disrupted every release

Drives inflexible training schedules

2.2 Limited test data

Limited capability to back-up and restore test data

Old and unrealistic data compromises test confidence

2.3 Dependence on legacy platforms

Manual configuration results in delayed changes and increased variance

High costs of environments

3 Focusing question: How can we have rapid, yet robust, change?

3.1 How can we introduce change rapidly without losing control?

3.2 How can we provide data so that changes can be tested quickly and confidently?

3.3 Is there a way to allow projects to work at different rates?

3.4 How can we transform so that rapid change becomes ‘business as usual’?

4 Proposal: Modernise our IT environments and processes

4.1 Extend virtualised environments

Extend the application coverage to cover all organisational requirements

Decommission all traditional environments

Provide dedicated VEs for minor releases and production support

Provide dedicated VEs for training

4.2 Provide better test data management

Provide capability to backup and restore test data in non-production environments

Provide masked production type data

5 Cost/benefit: IRR of xx% and a payback period of yy years

5.1 Some benefits realised immediately, others gradually ramp up

5.2 If we ignore this opportunity, we’ll lose momentum

5.3 Strategically aligned to corporate objectives

6 Costs

6.1 Costs that can be estimated well

Data solution and extension of VEs across the organisation

6.2 Costs that cannot be estimated well

Extend VEs to include partner organisations

Impacts on the change delivery teams

7 Benefits

7.1 Benefits that cannot be estimated well

Improved business flexibility

Improved project quality and efficiency

Reduced reputation risk

Foundational build to support future delivery

Strategic capabilities for test data management

Reduced hardware spend

7.2 Benefits that can be estimated well

Avoiding the cost of provisioning new traditional environments

Avoiding the cost of new traditional environments to support large scale programs

Eliminating lost productivity and migration effort resulting from de-scoping

Decommission traditional environments

Eliminating minor release environment migration and lost productivity

Reduced retrofitting effort

8 What might raise costs or limit benefits?

8.1 Sensitivity analyses

Changes in cost estimates

Slow project progress

Limited project funding

Variable test data solution costs

8.2 Dependencies

Benefits are only realised if test data solution provided

Full realisation of benefits requires changing the way we work

8.3 Constraints

Satisfaction with current performance

8.4 Project risks

No change in mindset, so no organisational transformation

Partial implementation will reduce benefits and lead to ‘slip back’

Applications may require re-architecture

Additional non-functional re-architecture may be required

Hardware or software is procured unnecessarily by teams external to project

9 Appendices

9.1 Alternative solutions considered

9.2 How the project will be organised

9.3 How we gathered information

Bottom-up

Top-down

9.4 Industry trends

Writing a compelling business case – the MARCH approach

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MARCH business caseWhen writing a business case, put yourself in the shoes of your reader (as you should do with all documents). Think through the decisions they will make as they consider your business case.

Remember the acronym MARCH to make sure you’ve included important content.
(This will help you march forward with your business case – daggy but memorable.)

The way a business thinks when considering a significant investment is similar to the way we all, as individuals, do. So I’ll use the example of buying a new kitchen for your home to illustrate the ideas.

M – must have or might be nice

Make sure you explain why the business should invest in what you are proposing.

Must have

Your solution might address a genuine business need or problem; current or emerging. That is, without it, the business will experience some amount of pain.

If my kitchen is broken – appliances not working, shelving falling down, etc – a new kitchen is a need.

Might be nice

It might be possible for the business to continue functioning without your solution, but your solution will make things ‘nicer’ in some way. It may be an opportunity to save money, reduce complexity, prepare for the future.

If my kitchen is not broken – it can still be used to prepare meals – but it is looking tired and worn; more efficient appliances will save money; a better design will make working in it easier; a modern appearance will please me and impress my friends.

A – affordable

The business must be able to afford the solution.

There are some absolutes around affordability, but also some perceptions. The cost must be perceived to be commensurate with the problem being solved or the opportunity provided.

If cost is likely to be an issue, you may need to explain how the business could afford your proposal. (Car dealers often express new car prices as ‘only $12.87 per week’.)

If a new kitchen will cost $500,000, I absolutely cannot afford it no matter how good it is or what benefits it will deliver. If it will cost $50,000, I can likely afford it, but with pain. If it’s only $5,000, I’m very interested.

R – right

Is the solution you are proposing the right way to solve the problem or deliver the opportunity? Is it the best option available?

Consider different products, but also consider fundamental changes to the way things are now.

Best = value, and value is measured by comparing the cost against the benefit. Examine the cost/benefit ratio of different options. There are different ways of doing this – return on investment, payback period, discounted cash flows and the like. Your organisation will have a preferred method.

There are a number of different kitchen suppliers. We’ve considered many of them, and XYZ offers the most suitable solution at the best price. We also considered converting the kitchen into a games room and eating out at every meal, but rejected this option due to health concerns.

C – choice, is this the best direction

Is this the best thing to invest in now?

Your proposal may be competing against a number of other unrelated ideas. There are always a number of things a business could invest in – is your idea the best thing to do now?

Yes, a new kitchen would be great, and the one from XYZ is the best one available. But the roof is leaking. We need to fix that before buying a kitchen.

H – how will it work

How will the solution be implemented?

What are proposing? When will it happen? What will be the impact on the business? What are the risks and how will they be managed? Who will be involved?

Provide clear answers to give the reader confidence you can deliver what you say you can.

The plans for the new kitchen are attached. We can start next month and you won’t have a kitchen for a week. We have three suppliers of ovens to manage supply problems. We’ve engaged expert trades people that have a track record of excellence.

All the MARCH framework items must be in your business case, although you can change the order in which they are presented to best meet your readers’ needs.