The Importance of a Business Case for Change

You have a great idea for improving your teams or organisation. Yet when you share your idea, you face resistance from the decision-makers. Creating a business case is a great way to think about and share the reasons why your idea is a great one and seek the support you need to fund and implement the project.

Your Audience A good business case will demonstrate an understanding of your audience. What matters most to your decision makers? For example, if you are pitching to your CFO, a clear cost-benefit analyses will be important. What is the investment required, and what savings or additional revenue will be achieved?

Example: A leadership development program focusing on employee experience and engagement will cost $60,000. The program is expected to reduce regrettable resignations (i.e. good employees leaving) by 4 each financial year. The cost of recruiting, onboarding and training a new employee is $100,000 per employee. The expected savings are, therefore, $400,000 per annum. Components of a Business Case There are several components of a business case that will each appeal to your decision-making stakeholders.

Problem statement: Clearly define the problem or opportunity that necessitates the change. Explain the current state and the issues that are driving the need for change.

Objectives: Outline the specific goals and objectives of the change. These should be aligned with the overall strategic goals of the organisation. Solution description: Describe the proposed change in detail. Explain how it will address the problem and achieve the objectives. Include any necessary resources, such as technology, people, and budget.

Benefits: Detail the benefits of implementing the change. Include both tangible benefits (e.g., cost savings, increased efficiency) and intangible benefits (e.g., improved employee morale, better adaptability to change). Remember your audience, and highlight benefits relevant to them.

Risks and Mitigation: Identify potential risks associated with the implementation and propose strategies to mitigate these risks. This shows that you have considered the challenges and have plans to address them.

Cost-Benefit Analysis: Provide a detailed analysis of the costs involved versus the benefits. This should include a financial analysis, such as return on investment (ROI), payback period, and net present value (NPV).

Implementation Plan: Outline the steps required to implement the change. Include a timeline, key milestones, and the roles and responsibilities of those involved.

Measurement and Evaluation: Explain how the success of the change will be measured. Define key performance indicators (KPIs) and the methods for tracking progress and evaluating outcomes.

"The above sounds good, but I don't have the time, and I don't have all of that specific information yet."

If you go to your decision-makers without a business case, they might:

• Ask you for more or different information

• Not see the value

• Not see the fit of the idea to the organisational strategy

• Not see how your idea will help them

• Or, even worse, the decision-makers, don't see YOU as strategic or commercial.

Your Time: I have found putting a small amount of time into creating a business case early on, saves you time later.

Detail is Not Available: It is highly likely that you won't have all of the detail available immediately. That is ok. Document what you can. Anticipate the questions you will be asked and document your answers in the business case.

In essence a business case:

• Reduces the likelihood of rejection & time to implementation

• Reduces the number of times you need to present your idea

• Reduces the number of questions you will be asked about the idea

• Helps the decision-makers, sponsors, and other leaders communicate the idea to other stakeholders

• Builds your confidence in speaking about the project and its benefits.

About the Author 

Angela Richardson is a master’s qualified expert in people leadership and change management. Angela has dedicated over 25 years to helping organisations build resilience to thrive and grow amidst uncertainty. Her practice focuses on equipping leaders with the knowledge, skills and mindsets needed to navigate and adapt to change effectively. 

Contact Angela, at angela@angelarichardson.com.au or on 0488 097 885