Business Cases

Too often, major strategic investments go forward with minimal analysis and little accountability for their promised outcomes. To counter this, I recommend companies require a formal business case before greenlighting any project and assign a clear owner responsible for delivering results.

A business case is a structured, evidence-based argument that evaluates whether a proposed initiative (new product, acquisition, market entry, cost transformation, technology investment, etc.) creates sufficient value to justify the required investment and risk.

The extent and detail of a business case will naturally depend on the scope and complexity of the proposed project, but here is a list of key components to consider and document.

1. Executive Summary

1.1 One-paragraph overview of the initiative.

1.2 Key decision required (approve investment, greenlight pilot, etc.).

1.3 Snapshot of financial highlights (investment, ROI/NPV, payback).

2. Strategic Rationale

2.1 Why this initiative matters now.

2.2 How it aligns with the company’s growth strategy or investor thesis.

2.3 Market or competitive trigger (e.g., new entrant, customer demand, regulatory change).

3. Objectives & Success Metrics

3.1 two to four measurable objectives (e.g., revenue targets, cost reductions, customer acquisition).

3.2 How success will be tracked (KPIs and timeframes).

4. Scope & Approach

4.1 What’s in and out of scope.

4.2 Key activities or phases (MVP, rollout, full launch).

4.3 Any major partners/vendors involved.

5. Market & Competitive Snapshot

5.1 Target market size and growth rate.

5.2 Brief customer insight or unmet need.

5.3 Competitive differentiation.

6. Financial Summary

6.1 Total investment required (by phase, if relevant).

6.2 Forecasted revenue or cost impact over 3–5 years.

6.3 NPV, IRR, and payback period highlights.

6.4 Sensitivity cases (e.g., base / upside / downside).

7. Risk & Mitigation

7.1 Top 3–5 risks (market, execution, regulatory).

7.2 Mitigation or contingency plans.

8. Alternatives Considered

8.1 “Do nothing” case and why it’s inferior.

8.2 Other options briefly mentioned.

9. Implementation Plan & Timeline

9.1 High-level roadmap with key milestones (e.g., Q1 pilot, Q2 launch).

9.2 Resource implications (FTEs, capital, tech).x

10. Governance & Accountability

10.1 Decision owner / sponsor.

10.2 Reporting cadence to board or investors.

11. Recommendation / Ask

11.1 Clear recommendation and decision required.

11.2 Next steps (board approval, funding release, partner contract sign-off).

This may feel like a long list at first, but every element exists for a reason, making it easier to decide whether to move ahead with a project or to compare one strategic investment against another.

And by doing the work upfront, you dramatically improve your odds of making sound decisions, avoid costly surprises, and keep valuable options open rather than finding yourself locked into sunk costs later on.

If you’re looking for help implementing a business case process, don’t hesitate to reach out. You’ll be surprised at how quickly your team can develop this capability—and how, over time, it sharpens everyone’s strategic and analytical instincts, creating lasting value for the whole organization.